Effects of Beijing-Shanghai high-speed rail on air travel: Passenger types, airline groups and tacit collusion
Article
Article Title | Effects of Beijing-Shanghai high-speed rail on air travel: Passenger types, airline groups and tacit collusion |
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ERA Journal ID | 36049 |
Article Category | Article |
Authors | Ma, Wenliang (Author), Wang, Qiang (Author), Yang, Hangjun (Author), Zhang, Anming (Author) and Zhang, Yahua (Author) |
Journal Title | Research in Transportation Economics |
Journal Citation | 74, pp. 64-76 |
Number of Pages | 13 |
Year | 2019 |
Place of Publication | Netherlands |
ISSN | 0739-8859 |
1875-7979 | |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.retrec.2018.12.002 |
Web Address (URL) | https://www.sciencedirect.com/science/article/pii/S0739885918301975 |
Abstract | This paper analyzes the effects of the busiest and most profitable high-speed rail (HSR) line in China — the Beijing-Shanghai HSR — on the aviation markets paralleling this HSR line. In general, we find that both airfare and air travel demand decreased significantly after the entry of the Beijing-Shanghai HSR. In particular, economy-class airfares dropped more than business-class fares did, while the decline in the demand for business-class travel was larger than it was for economy-class travel. The frequency of and the number of seats on the HSR line were significantly and negatively associated with air travel demand, especially with demand for business-class travel. Our results show that the entry of the HSR line led to airfare convergence on the Beijing-Shanghai airline route, which might indicate the existence of tacit collusion among the operating carriers. Governments, airlines and airport authorities need to work together to improve the on-time performance of this profitable route which is currently plagued with frequent flight delays. |
Keywords | High-speed rai, lAir transport, Business class, Economy class, Beijing-Shanghai, Tacit collusion |
ANZSRC Field of Research 2020 | 350901. Air transportation and freight services |
380109. Industry economics and industrial organisation | |
380117. Transport economics | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | University of International Business and Economics, China |
University of British Columbia, Canada | |
School of Commerce | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q577q/effects-of-beijing-shanghai-high-speed-rail-on-air-travel-passenger-types-airline-groups-and-tacit-collusion
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