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Estimating Determinants of Passenger Air Service to Small Markets

Department of Economics, Ford College of Business, Western Kentucky University, Bowling Green, KY 42101, USA. brian.goff{at}wku.edu

The determinants of passenger air service to smaller US metropolitan areas and cities are examined with a data-set across almost 250 markets without federal Essential Air Service. Using a variety of regression techniques applicable to limited dependent variables, both the existence and the likelihood of air service as well as the intensity of service are investigated. The results indicate that market size, the proximity of a hub airport (of any size), the proximity of any airport offering passenger service and the close proximity of a resort or major military installation are influential in determining the existence and intensity of service. Estimates of marginal effects are derived and anomalous cases are examined.

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