Modeling the price elasticity of demand on passenger air transportation in Russia with limited statistical data

The paper is aimed to suggest a model describing the influence of air fares on air transportation demand in the Russian air transportation system. The authors suggest an approach and a mathematical model for the price elasticity of air travel demand estimation in the Russian Federation both at the national level and for a single route. In the context of limited statistical information, the problem of incomplete data on tariffs was solved by an additional regression model of the dependence of tariffs on the distance of transportation. The results of the study contribute to airline practitioners and stakeholders by providing a Russian-context-specific allied instrument for estimating the influence of the air fare change on air transportation demand to solve a range of tasks related to aircraft design and operation. The article demonstrates the use of the obtained model to assess the potential for changes in demand for transportation when replacing existing types of aircraft with advanced models on a specific route and in the whole Russian air transportation system.