Examining the Effects of Market Concentration on Departure and Arrival On-Time Performance at Large Airports

Abstract

This study explores the relationship between market concentration and on-time performance at major airports. It investigates whether higher market concentration levels are associated with improved or worsened flight punctuality. The research is based on extensive data from various airlines operating at these airports and provides valuable insights for airport operators, airlines, and policymakers. The findings indicate that variation in market concentration significantly impacts on-time performance. On-time performance decreases to approximately 0.6 to 0.7 in markets with heightened concentration and reduced competition. However, moderately concentrated markets demonstrate higher competition and relatively high on-time performance. These results provide policymakers with opportunities to enhance overall system performance through strategic interventions.