THE EFFECT OF AIRPORT CAPACITYEXPANSION ON AVIATION MARKET WITH NETWORK CONSIDERATIONS

A CASE STUDY OF HANEDA AIRPORT

Abstract

Since aviation service have the characteristics of network goods, the expansion of an airport capacity affects the overall airline networks. Considering that the airport development plan is the sub-system of the Comprehensive National Development plan, the policy maker should take into account not only the summation of costs and benefits but also spatial distribution of costs and benefits. The aim of this paper is to measure spatial distribution of the effect of the Haneda airport capacity expansion on Japanese domestic air passenger markets. We find that the expansion of Haneda airport's capacity benefits not only Kanto region but also Kyushu and Hokkaido regions that the traffic density from/to Kanto region is high.