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Social and Behavioral Sciences Commons

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Economics

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Honors Theses

2018

Airline

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Full-Text Articles in Social and Behavioral Sciences

What Effects Did United Airlines' De-Hubbing Of Cleveland Hopkins International Airport Have On Cleveland Passengers?, Joshua A. Young Jan 2018

What Effects Did United Airlines' De-Hubbing Of Cleveland Hopkins International Airport Have On Cleveland Passengers?, Joshua A. Young

Honors Theses

This paper uncovers the effects on passengers from United Airlines’ 2014 de-hubbing of Cleveland Hopkins International Airport (CLE). Airline networks are often reorganized for efficiency; during the process, an airport may gain or lose hub operations, affecting passengers in different ways depending on the market environment. I take an empirical approach using difference-in-differences models to analyze 28 quarters of Bureau of Transportation Statistics data. I find that de-hubbing contributed to significant reductions in airfare per mile out of CLE. This is consistent with past cases of de-hubbing where low-cost carriers were present. However, quality measures, including the number of nonstop …