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

Article

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. https://doi.org/10.1080/19388160.2013.781972
Article Title

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

ERA Journal ID19728
Article CategoryArticle
AuthorsZhang, Yahua (Author) and Lu, Zhen (Author)
Journal TitleJournal of China Tourism Research
Journal Citation9 (2), pp. 207-217
Number of Pages11
Year2013
Place of PublicationPhiladelphia, PA. United States
ISSN1938-8160
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.

Keywordslow cost carriers; passenger traffic; Spring Airlines
ANZSRC Field of Research 2020350901. Air transportation and freight services
380116. Tourism economics
380117. Transport economics
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File reproduced in accordance with the copyright policy of the publisher/author.

Byline AffiliationsSchool of Accounting, Economics and Finance
Faculty of Business and Law
Institution of OriginUniversity of Southern Queensland
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