6. Discussions
6.1. Is the introduction of a hinterland airport beneficial to the society and other stakeholders? In this section, we compare two scenarios: i) the cargo market when served by the gateway airport only, and ii) the cargo market when served by both the gateway and the hinterland airports. In particular, we examine the changes in market outputs (i.e., qG and qX), social welfare in the two regions, airlines' profits, and shippers' and passengers' benefits. Table 3 shows the comparison between scenarios (i) and (ii) in our benchmark case (column showing 0%). First, we find that the cargo and passenger volumes at the gateway airport decrease when we introduce the hinterland airport. Additionally, the social welfare at the gateway airport, its respective airport profit, and the airlines' profits and passengers' benefits will all decrease, while the social welfare at the hinterland airport and the shippers' benefits willincrease. Overall, the social welfare of the economy will increase by 0.61%, when the hinterland airport is introduced.