Determinants of Airport Choice in a Multi-Airport Region

The Civil Aeronautics Board was dismantled on the premise that competition and the threat of entry would restrain airline prices. If consumers do not search for low fares, then the threat of entry will have little impact. The entry of a low fare carrier will reallocate fliers within but not between airports. Telephone survey data were used to estimate probit models for the use of Baltimore-Washington International, Newark International, JFK International, and Philadelphia International Airports to evaluate the effect of low fares on consumer behavior. In airport usage, age and gender do not matter. Although survey participants reported that airfare is an important consideration, actual searching for a low fare was unimportant. The availability of non-stop flights, wait at check-in, income, and distance from home were important.