Low cost carriers in China and its contribution to passenger traffic flow
Article
Article Title | Low cost carriers in China and its contribution to passenger traffic flow |
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ERA Journal ID | 19728 |
Article Category | Article |
Authors | Zhang, Yahua (Author) and Lu, Zhen (Author) |
Journal Title | Journal of China Tourism Research |
Journal Citation | 9 (2), pp. 207-217 |
Number of Pages | 11 |
Year | 2013 |
Place of Publication | Philadelphia, PA. United States |
ISSN | 1938-8160 |
1938-8179 | |
Digital Object Identifier (DOI) | https://doi.org/10.1080/19388160.2013.781972 |
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. |
Keywords | low cost carriers; passenger traffic; Spring Airlines |
ANZSRC Field of Research 2020 | 350901. Air transportation and freight services |
380116. Tourism economics | |
380117. Transport economics | |
Public Notes | File reproduced in accordance with the copyright policy of the publisher/author. |
Byline Affiliations | School of Accounting, Economics and Finance |
Faculty of Business and Law | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q1z4y/low-cost-carriers-in-china-and-its-contribution-to-passenger-traffic-flow
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