Abstract
This paper develops a model that relates regional air travel demand to certain economic variables. The model is estimated using data for seven states in the Southeastern region of the U.S. over a period from 1975 to 1987. The results suggest that demand is relatively inelastic with respect to manufacturing shipments, tourism expenditures and statewide flight departures. It is, however, more responsive to changes in the value of manufacturing shipments than to changes in tourism expenditures. Other things being equal, states with major connecting hubs are likely to experience a significant increase in passenger enplanements.
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