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Airport charge, traffic volume and car rental price : empirical evidence at US airports

University of British Columbia

This paper examines the interaction among airport aeronautical charge, traffic volume, and car rental service charge by employing a cross-section dataset covering 337 airports in the United States. Other determinants of the aeronautical charge are also examined. Using the method of three stage least squares, the main empirical findings are: (1) Car rental price has no significant impact on passenger volume, indicating that rental cost, which is an important cost category of airport concessional goods, does not affect passenger volume of airport. (2) Car rental price has no significant effect on aeronautical charge. (3) Only rental price at airports with a very low transfer rate responds positively to passenger volume. Overall, rental price does not respond to passenger volume or aeronautical charge. (4) Aeronautical charge has a significant negative effect on passenger volume, but it has no significant effect on car rental price.

Text

2014-08-01

Attribution-NonCommercial-NoDerivs 2.5 Canada

http://hdl.handle.net/2429/48604

Business Administration

University of British Columbia

UBCV

http://creativecommons.org/licenses/by-nc-nd/2.5/ca/