High Speed Train as a Feeder for Air Transport

ICE_TrainIlse Terpstra and Mark G. Lijesen

Air transport and high speed trains (HST) are seen as competitors in short to medium range markets. Recently, the view of HST and air transport being complementary modes has emerged. This paper extends the literature by looking at the impact of high speed rail on airport competition, focusing on the new HST-link between Amsterdam and Brussels. We conduct a detailed analysis regarding the airport choice of passengers living in the catchment areas of these airports and compared the results with airport choice in Spain, where a HST is already running.

Air transport and high speed trains (HST) are seen as competitors in short to medium range markets.Recently, the view of HST and air transport being complementary modes has emerged. This paperextends the literature by looking at the impact of high speed rail on airport competition, focusing onthe new HST-link between Amsterdam and Brussels. We conduct a detailed analysis regarding the airport choice of passengers living in the catchment areas of these airports and compared the resultswith airport choice in Spain, where a HST is already running.

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High-Speed rail versus Air Competition in Spain

AVE Train SpainBy Juan Luis Jiménez and Ofelia Betancor

High-speed railway lines (HSR) in Spain have gradually increased during the last twenty years. At the beginning of 2010, four HSR lines were operating on routes where air transport used to be the dominant mode of transportation, connecting Madrid with other mainland cities in short-haul routes. In this article, we examine the air carriers’ reaction to these HSR entries into the market by using data at the route level from two perspectives: firstly, we test whether the high-speed rail links have changed the frequency that airlines offer; and secondly, we analyze how the market share of airlines in the total market (air plus rail) have changed. Results shows that intermodal competition in Spain ends up with trains as relative winners, leading to a reduction in the level of air frequencies to consumers and stimulating demand.
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