Advertisement

Review of Industrial Organization

, Volume 54, Issue 1, pp 61–82 | Cite as

Do Airlines Pad Their Schedules?

  • Silke J. Forbes
  • Mara LedermanEmail author
  • Zhe Yuan
Article
  • 123 Downloads

Abstract

We analyze how schedule times, actual flight times and on-time performance have changed in the U.S. airline industry between 1990 and 2016. We find schedule times have increased in most years, with the largest increases after 2008. Actual flight times and total travel times have also increased but by less than schedule times and the gap has grown over time. This has resulted in reduced arrival delays even though flights are, in fact, taking longer to complete. We discuss the implications of these findings for quality provision and information disclosure within the airline industry.

Keywords

Airlines Information disclosure On-time performance 

References

  1. Ater, I., & Orlov, E. (2015). The effect of the internet on performance and quality: Evidence from the airline industry. Review of Economics and Statistics, 97(1), 180–94.Google Scholar
  2. Cao, K. H., Krier, B., Liu, C.-M., McNamara, B., & Sharpe, J. (2017). The nonlinear effects of market structure on service quality: Evidence from the U.S. airline industry. Review of Industrial Organization, 51(1), 43–73.Google Scholar
  3. Dranove, D., & Jin, G. Z. (2010). Quality disclosure and certification: Theory and practice. Journal of Economic Literature, 48(4), 935–963.Google Scholar
  4. Forbes, S. J. (2008). The effect of air traffic delays on airline prices. International Journal of Industrial Organization, 26(5), 1218–1232.Google Scholar
  5. Forbes, S. J., Lederman, M., & Tombe, T. (2015). Quality disclosure programs and internal organizational practices: Evidence from airline flight delays. American Economic Journal: Microeconomics, 7(2), 1–26.Google Scholar
  6. Forbes, S. J., Lederman, M., & Wither, M. J. (2018). Quality disclosure when firms set their own quality targets. International Journal of Industrial Organization.  https://doi.org/10.1016/j.ijindorg.2018.04.001
  7. Foreman, S. E., & Shea, D. G. (1999). Publication of information and market response: The case of airline on time performance reports. Review of Industrial Organization, 14(2), 147–162.Google Scholar
  8. Frank, T. (2013). Airlines pad flight schedules to boost on-time records. USA Today. Retrieved from http://www.usatoday.com.
  9. Mayer, C., & Sinai, T. (2003). Why do airlines systematically schedule their flights to arrive late?. The Wharton School:,University of Pennsylvania.Google Scholar
  10. Mazzeo, M. J. (2003). Competition and service quality in the U.S. airline industry. Review of Industrial Organization, 22(4), 275–296.Google Scholar
  11. Mccartney, S. (2010). Why a six-hour flight now takes seven. The Wall Street Journal. Retrieved from http://www.wsj.com.
  12. Neal, D., & Schanzenbach, D. W. (2010). Left behind by design: Proficiency counts and test-based accountability. The Review of Economics and Statistics, 92(2), 263–283.Google Scholar
  13. Prince, J. T., & Simon, D. H. (2014). Do incumbents improve service quality in response to entry? Evidence from airlines’ on-time performance. Management Science, 61(2), 372–390.Google Scholar
  14. Prince, J. T., & Simon, D. H. (2017). The impact of mergers on quality provision: Evidence from the airline industry. The Journal of Industrial Economics, 65(2), 336–362.Google Scholar
  15. Shumsky, R. (1993). Response of U.S. air carriers to on-time disclosure rule. Transportation Research Record, 1379, 9.Google Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Tufts UniversityMedfordUSA
  2. 2.University of TorontoTorontoCanada
  3. 3.Shanghai University of Finance and EconomicsShanghaiChina

Personalised recommendations