AbstractAir-rail integration has become a popular idea to relieve airport congestion and environmental impact of transport industry, especially amid the fast expansion of high-speed rail network around the world. This study examines the circumstances under which air-rail integration can be better justified, by focusing on the effects of reducing air-rail connecting time on transport operators' profits, consumer surplus, and social welfare. We show that while consumers always benefit from less air-rail connecting time (an integrated hub with seamless transfer between air and rail services is always preferred by passengers), operators of the two modes, air transport and high-speed rail, won't have an incentive to integrate unless the cost of integration is sufficiently low. Nonetheless, reducing air-rail connecting time enhances total surplus when the hub airport suffers from a certain degree of capacity constraint and the cost of air-rail integration is not too high.
HighlightsInvestigate the effects of air-rail connecting time on social welfare and operators' profits.Air-rail integration enhances welfare when the hub airport is congested and the integration is not too costly.Seamless transfer between air and rail services always benefits passengers.A fair revenue sharing agreement needs to be reached before air-rail cooperation can be formed.
Air and high-speed rail transport integration on profits and welfare: Effects of air-rail connecting time
Journal of Air Transport Management ; 65 ; 181-190
2017-01-01
10 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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