An analysis of the impact of larger aircraft (A-380) on flight frequency

Innovations in the airline industry can have a significant impact on the behavior of air transport stakeholders: airline companies, airports, and passengers. In this paper, we consider the introduction of a double-deck plane, the A-380, which is currently the largest aircraft available. Due to its size, it is able to carry at once approximately twice as many passengers as any other medium-sized aircraft. When associated with a reduction in flight frequencies, the operation of such aircraft is expected to lower the environmental impact. However, flight frequency depends on factors other than the aircraft size, such as airport fees, demand, and strategic decisions of companies to maximize their profits under competition. Using a monthly panel data set on airlines’ supply over 10 years, on 118 routes, we test if the use of the A-380 impacts airlines’ flight frequency at a route-level. Results suggest that heavy use of the A-380 leads airlines to reduce their own flight frequency. We also find that when facing the introduction of the A-380 on a route, airlines will tend to react by increasing their own flight frequency.