THE IMPACT OF TRAVEL TIME AND COST CHANGES ON THE DEMAND FOR SHORT HAUL AIR SERVICE: THE EDMONTON-CALGARY MARKET

The imposition of the air security charge, which was required to recover the costs of enhanced security and Canadian airports, and increase security vigilance have heightened interest with regard to the influence of cost increases and travel delays on the demand for passenger service for short haul routes. This paper assesses the impact of changes to passenger costs and travel time in the Edmonton-Calgary market. The road distance between the cities is only 300km and the majority of traffic travels by private automobile. The Edmonton-Calgary city-pair market is ideal for this type of analysis because of the controversy surrounding the role of the downtown Edmonton Municipal Airport and the eventual decision to consolidate passenger service at the Edmonton International Airport in 1996, which resulted in substantial changes in costs and travel time for passengers.