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Recovery of Chinese low-cost carriers after the outbreak of COVID-19 pandemic

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  • Liao, Maozhu
  • Wu, Chuntao
  • Yan, Hongmeng

Abstract

This study conducts a detailed analysis of the response of China's low-cost carriers (LCCs) to the threats posed by the pandemic from a route network perspective, aiming to explore the resilience of LCCs and Chinese airlines. Using geographic visualization and network analysis, we evaluate and compare the network connectivity of each Chinese LCC to see the change patterns, then elaborate on the network connection of Spring Airlines. The major results are: the LCC sector has not recovered, but some of them exceed the pre-pandemic levels in a less deregulated environment; different LCCs show different recovery patterns; Spring Airlines outperforms the other four LCCs in terms of network connectivity. The recovery process is supported by various external factors, such as the reduction of new confirmed COVID-19 local cases and international flights, the re-open of inter-provincial tour groups and tourism demand, the nationwide rebound activities promoted by the central government, and the supporting policies, especially new slot allocation processes issued by CAAC. The case study further indicates the effects of high-speed rail (HSR) and regional subsidy measures on the tactical actions of Springs in route planning. This paper serves as a referential case for the LCCs worldwide and has good application for the recovery of other LCCs in other countries. Moreover, the study conducted in this time window offers a chance to assess the development of Chinese airlines in a not fully deregulated aviation environment. It contributes to the debate on the theory of air network resilience.

Suggested Citation

  • Liao, Maozhu & Wu, Chuntao & Yan, Hongmeng, 2022. "Recovery of Chinese low-cost carriers after the outbreak of COVID-19 pandemic," Journal of Air Transport Management, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:jaitra:v:105:y:2022:i:c:s0969699722001016
    DOI: 10.1016/j.jairtraman.2022.102282
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    3. Colin C. H. Law, 2024. "The Impact of Vaccination, Infection and Fatality Rate on ASEAN Air Transport Industry in the Pandemic Period," Journal of Asian Economic Integration, , vol. 6(1), pages 31-62, April.
    4. Viviana Costa & Maria Alberta Oliveira & Carlos Santos, 2024. "Assessing the Pandemic Aviation Crisis: Speculative Behavior, Government Bail Outs, and Accommodative Monetary Policy," Economies, MDPI, vol. 12(10), pages 1-24, September.
    5. Wang, Weicheng & Wu, Xiangru & Fu, Xiaowen & Wang, Kun, 2024. "Airline competition in Indonesian domestic market: Airline-within-airline strategies and impact of the COVID-19 pandemic," Transport Policy, Elsevier, vol. 156(C), pages 1-12.

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