Determinants of air passenger flows in China and gravity model: deregulation, LCC, and high-speed rail

Article

Zhang, Yahua and Zhang, Anming. 2016. "Determinants of air passenger flows in China and gravity model: deregulation, LCC, and high-speed rail." Journal of Transport Economics and Policy. 50 (3), pp. 287-303.
Article Title

Determinants of air passenger flows in China and gravity model: deregulation, LCC, and high-speed rail

ERA Journal ID36039
Article CategoryArticle
AuthorsZhang, Yahua (Author) and Zhang, Anming (Author)
Journal TitleJournal of Transport Economics and Policy
Journal Citation50 (3), pp. 287-303
Number of Pages17
Year2016
Place of PublicationUnited Kingdom
ISSN0022-5258
1754-5951
Web Address (URL)http://www.ingentaconnect.com/contentone/lse/jtep/2016/00000050/00000003/art00005
Abstract

This paper reviews the development of China’s air transport policy and examines the determinants of Chinese city-pair air passenger flows using a gravity model approach accounting for the effects of multilateral resistance. We find significant positive impacts of both the continuing liberalisation of this industry and the low cost carriers (LCCs) in promoting bilateral traffic flows in China’s domestic aviation market. Local industry structures and high-speed rail (HSR) services also influence the volume of passenger movement. The challenge from HSR will be greater in the near future after the fast-expanding HSR network has connected most of the major cities.

KeywordsChina airline industry; gravity model; multilateral resistance; low cost carriers; air traffic; high-speed rail
ANZSRC Field of Research 2020380117. Transport economics
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Byline AffiliationsSchool of Commerce
University of British Columbia, Canada
Institution of OriginUniversity of Southern Queensland
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