AN ECONOMETRIC ANALYSIS OF INTERNATIONAL AIR TRAVEL DEMAND IN SAUDI ARABIA

Air traffic analysis is an important task both for airlines and the concerned civil aviation authority. This paper addresses analyzing and forecasting international air travel market in Saudi Arabia using econometric models. In this study an attempt is made to develop several models for the air travel demand with different combinations of explanatory variables utilizing stepwise regression technique. The model with the two variables (i.e., total expenditures and population size) is the most appropriate model to represent the demand for international air travel in Saudi Arabia.