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Airspace closures following the war of aggression in Ukraine: The impact on Europe-Asia airfares

Wozny, Florian and Ennen, David (2024) Airspace closures following the war of aggression in Ukraine: The impact on Europe-Asia airfares. Transportation Research Procedia (78), pp. 103-110. Elsevier. doi: 10.1016/j.trpro.2024.02.014. ISSN 2352-1465.

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The Russian war of aggression in Ukraine and subsequent sanctions imposed by Western countries has resulted in the withdrawal of overflight rights over Russian territory for most Western airlines. On Europe-Asia routes, this causes substantial detours for European airlines and, in turn, increases travel times and operational costs. This paper investigates the impact of the Russian and Ukrainian airspace closures on airfares between Western Europe and Asia. To identify a causal impact, fares on affected routes from Northern Europe are compared with fares on similar unaffected routes from Southern Europe using a difference-in-differences approach. The results show that the airspace closures increase fares for Europe-Asia flights from European airports above the 50th degree of latitude. On average, the fare effect for these flights is USD 43. Furthermore, the findings indicate that, in general, for each additional minute of flight time due to the airspace closures, fares increase by USD 1.56.

Item URL in elib:https://elib.dlr.de/203031/
Document Type:Article
Title:Airspace closures following the war of aggression in Ukraine: The impact on Europe-Asia airfares
AuthorsInstitution or Email of AuthorsAuthor's ORCID iDORCID Put Code
Date:February 2024
Journal or Publication Title:Transportation Research Procedia
Refereed publication:Yes
Open Access:Yes
Gold Open Access:No
In ISI Web of Science:No
Page Range:pp. 103-110
Series Name:25th Euro Working Group on Transportation Meeting (EWGT 2023)
Keywords:air transport; airspace closure; airfare; cost pass-through
HGF - Research field:Aeronautics, Space and Transport
HGF - Program:Transport
HGF - Program Themes:Transport System
DLR - Research area:Transport
DLR - Program:V VS - Verkehrssystem
DLR - Research theme (Project):V - Ökonver II
Location: Köln-Porz
Institutes and Institutions:Institute of Air Transport > Air Transport Economics
Deposited By: Wozny, Florian
Deposited On:06 Mar 2024 11:02
Last Modified:15 Apr 2024 10:38

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