This paper examines the impact of resource availability, namely labor and flight equipment availability, on entry into the US airline industry. The general thesis is that when labor and/or flight equipment is in scarce supply, the cost of starting and operating a new airline, or the cost of...

An investigation is conducted of the contribution of low-cost carriers (LCCs) to traffic diversion from Canadian airports to nearby US airports. An estimated five million Canadian passengers divert to US airports each year. We find that LCCs contribute significantly to the diversion of traffic...

As low-cost air carriers increase their market share, the percentage of leisure to total passengers will increase. Data from an airport passenger survey are analyzed to document differences and similarities between leisure and business passengers. Surprisingly, the two groups of passengers are...

This paper investigates the effect of the Security Fee, imposed following September 11, 2001 in the US, and of increased travel delay time, another product of 9/11, on traveler diversion and highway fatalities. Our results are that although both the security fee and the increased travel delay...