Internalization of Congestion at U.S. Hub Airports

Abstract

I study delays and congestion patterns in U.S. hub airports during periods of high flight volume. I find that these periods are longer when the share of flights operated by the hub airline is greater, and these longer periods exhibit shorter delays. These results lend support to recent theoretical work on congestion, implying that hub-airlines take into account the impact of their scheduling decisions on the congestion that they bear. The results may suggest that congestion management solutions implemented at hub airports dominated by one airline could have only a limited impact on congestion in general.

Keywords: Congestion, Air Transportation, Air Delays, Market Concentration

JEL Classification: H23, L50, L93, R41