•  
  •  
 

Abstract

In the past, commercial airlines and automobiles have shared a symbiotic relationship and rarely compete directly with each other except for very short flights. However, with driverless vehicles on the horizon, many of which will be made available to the average American consumer within a few years, the airline industry may find that they are now facing a competitor that is unlike anything they have seen in the past. In the current paper, we analyze some of the issues that the airline industry will encounter, and provide consumer survey data that shows that at least 10% of the flying public will switch to driverless vehicles once they realize the advantages that driverless cars offer over commercial flight. These numbers may snowball as the airline industry contracts, particularly for airlines that use the hub and spoke model. We discuss the implications of these potential changes.

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.