Investigating aviation subsidy scheme's impact on domestic aviation during the post-lockdown period: a case study of New Zealand

Article

Wu, Hanjun, Tsui, Kan Wai Hong, Ngo, Thanh and Lin, Yi-Hsin. 2025. "Investigating aviation subsidy scheme's impact on domestic aviation during the post-lockdown period: a case study of New Zealand." Case Studies on Transport Policy. 20. https://doi.org/10.1016/j.cstp.2025.101405
Article Title

Investigating aviation subsidy scheme's impact on domestic aviation during the post-lockdown period: a case study of New Zealand

ERA Journal ID200266
Article CategoryArticle
AuthorsWu, Hanjun, Tsui, Kan Wai Hong, Ngo, Thanh and Lin, Yi-Hsin
EditorsHong, S. J
Journal TitleCase Studies on Transport Policy
Journal Citation20
Article Number101405
Number of Pages10
Year2025
PublisherElsevier
Place of PublicationNetherlands
ISSN2213-624X
2213-6258
Digital Object Identifier (DOI)https://doi.org/10.1016/j.cstp.2025.101405
Web Address (URL)https://www.sciencedirect.com/science/article/pii/S2213624X25000422
Abstract

This study investigates the impact of aviation subsidies on domestic aviation markets during the COVID-19 pandemic, focusing on New Zealand's small-scale regional aviation sector. It examines the effects of the Essential Transport Connectivity (ETC) scheme, the country’s first-ever aviation subsidy initiative, using panel data regression models. The findings provide clear evidence that airline subsidies significantly boosted regional air passenger flows, while airport subsidies had limited influence. This research is novel and valuable as it empirically evaluates the effectiveness of the ETC scheme in supporting domestic aviation during the post-lockdown period, an area that has received little attention in prior studies. It contributes to the growing body of literature on COVID-19-related aviation policies, specifically their role in sustaining regional aviation markets. While the study focuses on New Zealand's unique context, its implications extend to policymakers globally, offering insights for designing effective aviation subsidy policies that promote regional aviation recovery and growth in the post-pandemic era.

KeywordsRegional aviation subsidies; Post-lockdown period; Regional air passenger flows; Aviation market growth; Post-lockdown period
Contains Sensitive ContentDoes not contain sensitive content
ANZSRC Field of Research 2020350999. Transportation, logistics and supply chains not elsewhere classified
Public Notes

Files associated with this item cannot be displayed due to copyright restrictions.

Byline AffiliationsMassey University, New Zealand
School of Business
National Taichung University of Science and Technology, Taiwan
Permalink -

https://research.usq.edu.au/item/zwqx3/investigating-aviation-subsidy-scheme-s-impact-on-domestic-aviation-during-the-post-lockdown-period-a-case-study-of-new-zealand

Log in to edit
  • 11
    total views
  • 1
    total downloads
  • 11
    views this month
  • 1
    downloads this month

Export as

Related outputs

Behind Market Size: Understanding the Absence of Giant Low-Cost Carriers in Asia Pacific
Wang, Huan, Tsui, Kan Wai Hong, Wang, Xuecheng, Zhan, Fen and Liu, Yan. 2025. "Behind Market Size: Understanding the Absence of Giant Low-Cost Carriers in Asia Pacific." Journal of the Air Transport Research Society. 4. https://doi.org//10.1016/j.jatrs.2025.100061
External environments and the growth of low-cost carriers in the Asia-Pacific region: A systematic review and future research agendas
Wang, Huan, Tsui, Kan Wai Hong, Wu, Hanjun, Fu, Xiaowen and Wang, Xuecheng. 2025. "External environments and the growth of low-cost carriers in the Asia-Pacific region: A systematic review and future research agendas." Research in Transportation Economics. 109. https://doi.org/10.1016/j.retrec.2024.101515
Gravity model of airfreight exports during the pre-COVID era: Evidence from New Zealand
Tsui, Kan Wai Hong, Wang, Huan and Liu, Yan. 2025. "Gravity model of airfreight exports during the pre-COVID era: Evidence from New Zealand." Case Studies of Transport Policy. 19. https://doi.org/10.1016/j.cstp.2024.101336
Analyzing Air Passenger Flows between New Zealand's Small Regions and Australia - A Gravity Model
Flatley, Tobias, Tsui, Kan Wai Hong and Ngo, Thanh. 2024. "Analyzing Air Passenger Flows between New Zealand's Small Regions and Australia - A Gravity Model." Journal of International Commerce, Economics and Policy. 16 (1). https://doi.org/10.1142/S1793993325500024
Aviation pollution, tourism, and economic development: A study of the EKC hypothesis at regional level
Ngo, Thanh, Tsui, Wai Hong Kan and Nguyen, Hannah. 2024. "Aviation pollution, tourism, and economic development: A study of the EKC hypothesis at regional level." Economy of Regions. 20 (3), pp. 718-731. https://doi.org/10.17059/ekon.reg.2024-3-8
Impacts of low-cost carriers' development in the Asia-Pacific region on tourism, economic and social wellbeing: A systemic review
Wang, Huan, Tsui, Kan Wai Hong, Wu, Hanjun, Fu, Xiaowen and Kille, Tarryn. 2024. "Impacts of low-cost carriers' development in the Asia-Pacific region on tourism, economic and social wellbeing: A systemic review." Current Issues in Tourism. https://doi.org/10.1080/13683500.2024.2413669
Exploring the red tourism–aviation nexus through the PVAR model: The case of China during the COVID-19 pandemic
He, Hang, Tsui, Kan Wai Hong, Wu, Hanjun and Lin, Long. 2024. "Exploring the red tourism–aviation nexus through the PVAR model: The case of China during the COVID-19 pandemic ." Case Studies on Transport Policy. 18. https://doi.org/10.1016/j.cstp.2024.101288
The Nature of Airport Brand Associations
Henderson, Isaac Levi, Tsui, Kan Wai Hong, Ngo, Thanh, Gilbey, Andrew and Avis, Mark. 2024. "The Nature of Airport Brand Associations ." Tourism and Hospitality. 5 (3), pp. 592-624. https://doi.org/10.3390/tourhosp5030036
Spatiotemporal evolution of air cargo networks and its impact on economic development - An analysis of China's domestic market before and during the COVID-19 pandemic
He, Hang, Wu, Hanjun, Tsui, Kan Wai Hong, Wang, Biao and Fu, Xiaowen. 2024. "Spatiotemporal evolution of air cargo networks and its impact on economic development - An analysis of China's domestic market before and during the COVID-19 pandemic." Journal of Transport Geography. 117. https://doi.org/10.1016/j.jtrangeo.2024.103872
Aviation subsidy policy and regional wellbeing: Important indicators from relevant stakeholders’ perspectives
Wu, Hanjun, Lin, Yi-Hsin, Ngo, Thanh Ngo and Tsui, Kan Wai Hong. 2024. "Aviation subsidy policy and regional wellbeing: Important indicators from relevant stakeholders’ perspectives." Case Studies on Transport Policy. 16. https://doi.org/10.1016/j.cstp.2024.101181
Aviation resilience during the COVID-19 pandemic: a case study of the European aviation market
Su, Junbiao, Wu, Hanjun, Tsui, Kan Wai Hong, Fu, Xiaowen and Lei, Zheng. 2023. "Aviation resilience during the COVID-19 pandemic: a case study of the European aviation market." Transportation Research Part A: Policy and Practice. 77, p. 103838. https://doi.org/10.1016/j.tra.2023.103835
Compound brands and multi-creation of brand associations: Evidence from airports and shopping malls
Henderson, Isaac Levi, Avis, Mark, Tsui, Wai Hong Kan, Ngo, Thanh and Gilbey, Andrew. 2023. "Compound brands and multi-creation of brand associations: Evidence from airports and shopping malls." Sustainability. 15 (2). https://doi.org/10.3390/su15021450
Analyzing factors affecting charter flight service demand: A case of Taiwan
Wu, Chuntao, Xue, Wenjing and Tsui, Kan Wai Hong. 2023. "Analyzing factors affecting charter flight service demand: A case of Taiwan." Journal of Air Transport Management. 110, p. 102424. https://doi.org/10.1016/j.jairtraman.2023.102424
Changes in perceptions of airport services’ attributes: An assessment of the impacts of COVID-19
Lin, Yi-Hsin, Wu, Hanjun, He, Hang and Tsui, Kan Wai Hong. 2023. "Changes in perceptions of airport services’ attributes: An assessment of the impacts of COVID-19." Transport Policy. 114, pp. 116-128. https://doi.org/10.1016/j.tranpol.2023.07.013