Competition and service quality in the US airline industry

Abstract. The U.S. government, media, and flying public have expressed great concern in recent years over both airline market concentration and flight delays. This study explores potential connec-tions between the two by examining whether the lack of competition on a particular route results in worse on-time performance. Analysis of data from the U.S. Bureau of Transportation Statistics in 2000 indicates that both the prevalence and duration of flight delays are significantly greater on routes where only one airline provides direct service. Additional competition is correlated with better on-time performance. Weather, congestion, and scheduling decisions also contribute significantly to explaining flight delays