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Author:Lee, D.
Luengo-Prado, M. J.
Title:Are passengers willing to pay more for additional legroom?
Journal:Journal of Air Transport Management
2004 : NOV, VOL. 10:6, p. 377-383
Index terms:Airlines
Pricing
Product differentiation
Language:eng
Abstract:This paper investigates whether or not the efforts by two of the largest US airlines to increase seat pitch across their aircraft fleet during 2000 resulted in fare premia relative to the other 'full service carriers'. Using panel data from 1998 to 2002, the authors estimate fixed-effects regressionsin markets with overlapping service between large hub and spoke carriers and find that United's 'Premium Economy' program was more successful that American's 'More Room Throughout Coach' program at generating fare premia.
SCIMA record nr: 255756
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