Demand for Global Commercial Aviation: A Qualitative Study

Date

7-2023

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Paul Joseph B. Ramirez

Committee Member

Jaimie Kim B. Arias, Gideon P. Carnaje, Agham C. Cuevas

Abstract

This study determined the various factors that influence demand for global commercial aviation. To do so, various literature on the regular factors that influence demand and the effects of negative demand shocks were gathered, organized, and synthesized. In addition, methodological analysis was conducted to determine the strengths and weaknesses of each statistical method. The study found that there was a drastic decrease in flight demand shortly after recessions, airline accidents, and public health emergencies. Factors such as high incomes and consumer confidence, low inflation and unemployment, and looser government regulations led to higher demand for air travel. Finally, the study found that ordinary least squares (OLS) regression based on the gravity model is a reliable method to analyze aggregate air travel demand. Heckman and logit regressions are alternatives for analyzing individual air travel demand. The researcher recommends further research into local or foreign airlines and specific routes to find trends, and research into the COVID-19 pandemic influencing flying demand.

Language

English

LC Subject

Aeronautics, Commercial -- Economic aspects, Demand (Economic theory)

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 E2 C78

Notes

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Document Type

Thesis

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