Air Travel Demand in the Upper Midwest: Potential for Low-cost Carriers

Given these travel patterns and motives why study LCC opportunities in the upper- The economies of flows framework is part Midwest region? In the next section we of the general theories of regional address this question using economic competitiveness and regional externalities theory. [...] These assets, the Study although external to firms, benefit individual firms in a manner that no set of alternative factor prices would induce a The salience of LCCs to the economic geographical redistribution of economic development of a region can be gleaned activity. [...] The determinant of Irrespective of motivation, research on FAREAB is number of airlines servicing the factors influencing air travel suggests that route (COMP): air fares, presence of LCC, and attractions of the origin-destination cities as major ? ? ? ? ? ? ? ? ? ? ? ? = ? ? { ? ? ? ? ? ? ? ? ? ? ? ? } (2) determinants (Ito and Lee 2003). [...] between routes A and B; LCCAB = Presence of LCCs in the route; Since the structural equation system of POPAB = Population of the origin/ three interdependent equations is a set of destination or endpoints, and simultaneous equations, we use three INCAB = Per capita income of the population stage least squares (3SLS) to obtain at endpoints. [...] The model system As shown in the Table, we expect the discussed in the previous section is Cincinnati, OH (CVG) - Fort Wayne, IN employed to implement the scenario (FWA) route to benefit the most from LCC analysis.