Determination of Structural Changes of Domestic Air Travel Demand in Nigeria

Ejem Ejem Agwu; Aikor Shirgba Timothy

doi:doi:10.11648/j.ijtet.20220803.11

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Determination of Structural Changes of Domestic Air Travel Demand in Nigeria

Ejem Ejem Agwu, Aikor Shirgba Timothy

Published in International Journal of Transportation Engineering and Technology (Volume 8, Issue 3)

Received: 28 September 2022 Accepted: 16 November 2022 Published: 13 January 2023

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Abstract

This article investigates structural changes throughout time. Air demand is heavily influenced by fare and frequency. The focus of this research is primarily on structural alterations connected to these two elements. The idea that fare sensitivity has grown and frequency sensitivity has (roughly) reduced is explored in particular. It is critical to investigate the stability of the structure of air travel demand. Demand elasticities with these variables, as well as coefficient ratios, can be utilized to depict structural changes over time. While no particular temporal trends for scheduled flight time and fare impacts have been discovered, no structural changes relating to other factors have been discovered. From 2009 and 2013, we conducted paired sample t-tests for the important operational and economic factors of air travel demand, and there was no statistically significant variation in the parameter estimates. The ratios of frequency of flight and airline fares change over time, and all ratios of airlines have identical patterns- they rise or drop concurrently because frequency coefficients are more stable than pricing coefficients. Furthermore, changes in fare elasticities follow patterns comparable to changes in fare-to-frequency coefficient ratios. These adjustments are thus mostly driven by increases in fare sensitivity. This research provides a framework for airlines to evaluate demand on domestic routes and place their services by constructing a service positioning matrix to guarantee commercial sustainability.

Published in	International Journal of Transportation Engineering and Technology (Volume 8, Issue 3)
DOI	10.11648/j.ijtet.20220803.11
Page(s)	44-49
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Air Travel, Demand, Structural Changes, Elasticities, Fare and Frequency

References

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APA Style

Ejem Ejem Agwu, Aikor Shirgba Timothy. (2023). Determination of Structural Changes of Domestic Air Travel Demand in Nigeria. International Journal of Transportation Engineering and Technology, 8(3), 44-49. https://doi.org/10.11648/j.ijtet.20220803.11

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ACS Style

Ejem Ejem Agwu; Aikor Shirgba Timothy. Determination of Structural Changes of Domestic Air Travel Demand in Nigeria. Int. J. Transp. Eng. Technol. 2023, 8(3), 44-49. doi: 10.11648/j.ijtet.20220803.11

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AMA Style

Ejem Ejem Agwu, Aikor Shirgba Timothy. Determination of Structural Changes of Domestic Air Travel Demand in Nigeria. Int J Transp Eng Technol. 2023;8(3):44-49. doi: 10.11648/j.ijtet.20220803.11

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@article{10.11648/j.ijtet.20220803.11,
  author = {Ejem Ejem Agwu and Aikor Shirgba Timothy},
  title = {Determination of Structural Changes of Domestic Air Travel Demand in Nigeria},
  journal = {International Journal of Transportation Engineering and Technology},
  volume = {8},
  number = {3},
  pages = {44-49},
  doi = {10.11648/j.ijtet.20220803.11},
  url = {https://doi.org/10.11648/j.ijtet.20220803.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijtet.20220803.11},
  abstract = {This article investigates structural changes throughout time. Air demand is heavily influenced by fare and frequency. The focus of this research is primarily on structural alterations connected to these two elements. The idea that fare sensitivity has grown and frequency sensitivity has (roughly) reduced is explored in particular. It is critical to investigate the stability of the structure of air travel demand. Demand elasticities with these variables, as well as coefficient ratios, can be utilized to depict structural changes over time. While no particular temporal trends for scheduled flight time and fare impacts have been discovered, no structural changes relating to other factors have been discovered. From 2009 and 2013, we conducted paired sample t-tests for the important operational and economic factors of air travel demand, and there was no statistically significant variation in the parameter estimates. The ratios of frequency of flight and airline fares change over time, and all ratios of airlines have identical patterns- they rise or drop concurrently because frequency coefficients are more stable than pricing coefficients. Furthermore, changes in fare elasticities follow patterns comparable to changes in fare-to-frequency coefficient ratios. These adjustments are thus mostly driven by increases in fare sensitivity. This research provides a framework for airlines to evaluate demand on domestic routes and place their services by constructing a service positioning matrix to guarantee commercial sustainability.},
 year = {2023}
}

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TY - JOUR
T1 - Determination of Structural Changes of Domestic Air Travel Demand in Nigeria
AU - Ejem Ejem Agwu
AU - Aikor Shirgba Timothy
Y1 - 2023/01/13
PY - 2023
N1 - https://doi.org/10.11648/j.ijtet.20220803.11
DO - 10.11648/j.ijtet.20220803.11
T2 - International Journal of Transportation Engineering and Technology
JF - International Journal of Transportation Engineering and Technology
JO - International Journal of Transportation Engineering and Technology
SP - 44
EP - 49
PB - Science Publishing Group
SN - 2575-1751
UR - https://doi.org/10.11648/j.ijtet.20220803.11
AB - This article investigates structural changes throughout time. Air demand is heavily influenced by fare and frequency. The focus of this research is primarily on structural alterations connected to these two elements. The idea that fare sensitivity has grown and frequency sensitivity has (roughly) reduced is explored in particular. It is critical to investigate the stability of the structure of air travel demand. Demand elasticities with these variables, as well as coefficient ratios, can be utilized to depict structural changes over time. While no particular temporal trends for scheduled flight time and fare impacts have been discovered, no structural changes relating to other factors have been discovered. From 2009 and 2013, we conducted paired sample t-tests for the important operational and economic factors of air travel demand, and there was no statistically significant variation in the parameter estimates. The ratios of frequency of flight and airline fares change over time, and all ratios of airlines have identical patterns- they rise or drop concurrently because frequency coefficients are more stable than pricing coefficients. Furthermore, changes in fare elasticities follow patterns comparable to changes in fare-to-frequency coefficient ratios. These adjustments are thus mostly driven by increases in fare sensitivity. This research provides a framework for airlines to evaluate demand on domestic routes and place their services by constructing a service positioning matrix to guarantee commercial sustainability.
VL - 8
IS - 3
ER -

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Author Information

Ejem Ejem Agwu

Department of Supply Chain Management, School of Logistics and Innovation Technology, Federal University of Technology, Owerri, Nigeria
Aikor Shirgba Timothy

Department of Supply Chain Management, School of Logistics and Innovation Technology, Federal University of Technology, Owerri, Nigeria

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Plain Text BibTeX RIS

APA Style

Ejem Ejem Agwu, Aikor Shirgba Timothy. (2023). Determination of Structural Changes of Domestic Air Travel Demand in Nigeria. International Journal of Transportation Engineering and Technology, 8(3), 44-49. https://doi.org/10.11648/j.ijtet.20220803.11

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ACS Style

Ejem Ejem Agwu; Aikor Shirgba Timothy. Determination of Structural Changes of Domestic Air Travel Demand in Nigeria. Int. J. Transp. Eng. Technol. 2023, 8(3), 44-49. doi: 10.11648/j.ijtet.20220803.11

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AMA Style

Ejem Ejem Agwu, Aikor Shirgba Timothy. Determination of Structural Changes of Domestic Air Travel Demand in Nigeria. Int J Transp Eng Technol. 2023;8(3):44-49. doi: 10.11648/j.ijtet.20220803.11

Copy | Download

@article{10.11648/j.ijtet.20220803.11,
  author = {Ejem Ejem Agwu and Aikor Shirgba Timothy},
  title = {Determination of Structural Changes of Domestic Air Travel Demand in Nigeria},
  journal = {International Journal of Transportation Engineering and Technology},
  volume = {8},
  number = {3},
  pages = {44-49},
  doi = {10.11648/j.ijtet.20220803.11},
  url = {https://doi.org/10.11648/j.ijtet.20220803.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijtet.20220803.11},
  abstract = {This article investigates structural changes throughout time. Air demand is heavily influenced by fare and frequency. The focus of this research is primarily on structural alterations connected to these two elements. The idea that fare sensitivity has grown and frequency sensitivity has (roughly) reduced is explored in particular. It is critical to investigate the stability of the structure of air travel demand. Demand elasticities with these variables, as well as coefficient ratios, can be utilized to depict structural changes over time. While no particular temporal trends for scheduled flight time and fare impacts have been discovered, no structural changes relating to other factors have been discovered. From 2009 and 2013, we conducted paired sample t-tests for the important operational and economic factors of air travel demand, and there was no statistically significant variation in the parameter estimates. The ratios of frequency of flight and airline fares change over time, and all ratios of airlines have identical patterns- they rise or drop concurrently because frequency coefficients are more stable than pricing coefficients. Furthermore, changes in fare elasticities follow patterns comparable to changes in fare-to-frequency coefficient ratios. These adjustments are thus mostly driven by increases in fare sensitivity. This research provides a framework for airlines to evaluate demand on domestic routes and place their services by constructing a service positioning matrix to guarantee commercial sustainability.},
 year = {2023}
}

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