Low cost carriers in China and its contribution to passenger traffic flow

Zhang, Yahua and Lu, Zhen (2013) Low cost carriers in China and its contribution to passenger traffic flow. Journal of China Tourism Research, 9 (2). pp. 207-217. ISSN 1938-8160

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Abstract

The gradual liberalisation of China's air transport sector led to the launch of some new private airlines and low cost carriers (LCCs) in the mid-2000s. However, the large population and geographic market do not necessarily mean that a conducive environment is ensured for the growth of these new airlines. The domestic market is still dominated by the three state-owned carriers that have access to government aid whenever they are in trouble. Despite the less favourable environment, China's only low cost carrier Spring Airlines has managed to grow and achieved limited success. The presence of Spring Airlines on a domestic route has contributed to an increase in passenger volume by 23%, holding other factors constant. This study also finds that when the jet fuel price increases by one dollar per gallon, the number of passengers carried will drop by 6%. The tourism and economic benefits brought about by LCCs should be the driving forces for the change in air transport policies in China.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Accepted version deposited in accordance with the copyright policy of the publisher.
Faculty / Department / School: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
Date Deposited: 09 Jul 2013 00:21
Last Modified: 28 Nov 2014 00:11
Uncontrolled Keywords: low cost carriers; passenger traffic; Spring Airlines
Fields of Research : 15 Commerce, Management, Tourism and Services > 1507 Transportation and Freight Services > 150701 Air Transportation and Freight Services
14 Economics > 1402 Applied Economics > 140216 Tourism Economics
14 Economics > 1402 Applied Economics > 140217 Transport Economics
Socio-Economic Objective: B Economic Development > 88 Transport > 8803 Aerospace Transport > 880302 Air Passenger Transport
Identification Number or DOI: 10.1080/19388160.2013.781972
URI: http://eprints.usq.edu.au/id/eprint/23586

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