Methodology for Comparative Analysis to Evaluate Air Travel Service in Alaska

This paper presents a methodology to evaluate air travel service in Alaska and study its possible impact on the state’s economic development. The methodology represents a comparative descriptive analysis that relates the airlines service measures in Alaska to those provided for similar destinations. These service measures include the average travel fares to major destinations, the number of airlines that provide service, the number of daily arrivals and departures, and the number of destinations to which direct service is offered. The study indicated that airfares to and from Alaska are generally higher than those for similar destinations. The study also highlighted the possible impact of these relatively high airfares based on the own-price elasticity of air travel demand. The analysis suggested that, in addition to other forgone business opportunities, Alaska could be losing a significant number of potential tourists because of relatively high airfares for travel to and from the state.

http://pubsindex.trb.org