ARE PASSENGERS WILLING TO PAY MORE FOR ADDITIONAL LEGROOM

Abstract This paper investigates whether or not the efforts by two of the largest US airlines to increase seat pitch (i.e. legroom) across their aircraft fleet during 2000 resulted in fare premia relative to the other ‘full service carriers’. Using panel data from 1998 to 2002, we estimate fixed-effects regressions in markets with overlapping service between large hub and spoke carriers and find that United's ‘Premium Economy’ program was more successful than American's ‘More Room Throughout Coach’ program at generating fare premia.

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