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Modelling Heterogeneous Capacity Response Strategies of Airlines in the Initial Stage of the COVID-19 Pandemic in the EU-US Market

L. F. Wang et al.

European Journal of Transport and Infrastructure Research2025https://doi.org/10.59490/ejtir.2025.25.4.7753article
ABDC B
Weight
0.50

Abstract

This paper investigates the causal impact of the initial stage of the COVID-19 pandemic (i.e., 2020) on airlines’ crisis response strategies from the supply perspective in the EU-US market. An analytical framework examining three strategies, namely market exit, capacity retrenchment, and route hierarchy persevering, is established by utilizing the difference-in-differences (DID) method, which jointly considers dynamics in pandemic severity, border control policies, and route structure. The results demonstrate that the COVID-19 pandemic led to the disappearance of diversity in the business models of the EU-US market in the short term. Analysis of individual airlines’ capacity retrenchment strategies reveals heterogeneity in the impact of COVID-19. The route hierarchy persevering analysis exhibits three distinct strategies of airlines, i.e., connectivity-oriented, antitrust immunity joint venture-oriented, and market presence-oriented.

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https://doi.org/https://doi.org/10.59490/ejtir.2025.25.4.7753

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@article{l.2025,
  title        = {{Modelling Heterogeneous Capacity Response Strategies of Airlines in the Initial Stage of the COVID-19 Pandemic in the EU-US Market}},
  author       = {L. F. Wang et al.},
  journal      = {European Journal of Transport and Infrastructure Research},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.59490/ejtir.2025.25.4.7753},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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