Airlines’ reaction to high-speed rail entries: Empirical study of the Northeast Asian market

Yulai Wan, Hun Koo Ha, Yuichiro Yoshida, Anming Zhang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

68 Citations (Scopus)

Abstract

The study is based on a dataset covering the 1994–2012 period. We use the propensity score matching method to pair HSR affected routes with routes without HSR services. The difference-in-difference approach is used to estimate the impact of HSR entry. We find that HSR entries may, on average, lead to a more significant drop in airlines’ seat capacity in China than in Japan and Korea given similar HSR service speed. In China, HSR services with a maximum speed about 200 km/h can produce strong negative impacts on medium-haul air routes but induce more air seat capacity on long-haul routes. HSR services with a maximum speed of 300 km/h have little extra impact on medium-haul routes but a strong negative impact on long-haul routes. Finally, although HSR has a strong negative impact in Japan's short-haul and medium-haul air markets, little impact is observed in its long-haul markets.
Original languageEnglish
Pages (from-to)532-557
Number of pages26
JournalTransportation Research Part A: Policy and Practice
Volume94
DOIs
Publication statusPublished - 1 Dec 2016

Keywords

  • Airline available seats
  • Difference-in-difference estimator
  • High-speed rail
  • Northeast Asia
  • Propensity score matching

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Transportation
  • Management Science and Operations Research

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