Will China's airline industry survive the entry of high-speed rail?

Xiaowen Fu, Anming Zhang, Zheng Lei

Research output: Journal article publicationJournal articleAcademic researchpeer-review

171 Citations (Scopus)

Abstract

This study investigates the effects of high-speed rail (HSR) services on Chinese airlines. Our analysis suggests that the HSR service will be competitive in terms of network connectivity, total travel time and cost efficiency. On the other hand, growth of the Chinese airline industry has been unbalanced in terms of traffic distribution, airline network development, airport capacity and share of international traffic. While the long term prospects of Chinese airlines are bright, the carriers must develop effective hub-and-spoke networks and increase their competitiveness in international markets in order to achieve sustainable growth in the coming years. For the Chinese government, continued investment at hub airports and support to low-cost carriers are also necessary.

Original languageEnglish
Pages (from-to)13-25
Number of pages13
JournalResearch in Transportation Economics
Volume35
Issue number1
DOIs
Publication statusPublished - 1 May 2012

Keywords

  • Aviation policy
  • Chinese airline industry
  • High-speed rail

ASJC Scopus subject areas

  • Transportation
  • Economics, Econometrics and Finance (miscellaneous)

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