IDEAS home Printed from https://ideas.repec.org/a/eee/jotrge/v41y2014icp37-44.html
   My bibliography  Save this article

The effect of LCCs operations and scheduled services deregulation on air charter business in Japan

Author

Listed:
  • Wu, Chuntao
  • Hayashi, Yoshitsugu

Abstract

Recent aviation deregulation is producing structural changes within leisure industries in many parts of the world. This paper reviews the development of low cost carriers (LCCs) and assesses its effects on both of domestic and international charter markets in Japan since 2007. Furthermore, this paper analyzes the effect of scheduled services deregulation on international tourism to Japanese regional areas in relation to charter services. The results suggest that in the domestic market, LCC operations have seldom impacted charter traffic due to the differences in target markets and routes. In the international market, LCCs launched scheduled services to Japan but mainly on high demand routes. The deregulation of scheduled services led to a passenger shift from charters to newly scheduled flights and a concentration of tourist arrivals in regional centres. It also led to a decline in international tourist arrivals in some remote destinations. This paper indicates a current trend in which charter business is still an important sector in aviation and leisure markets.

Suggested Citation

  • Wu, Chuntao & Hayashi, Yoshitsugu, 2014. "The effect of LCCs operations and scheduled services deregulation on air charter business in Japan," Journal of Transport Geography, Elsevier, vol. 41(C), pages 37-44.
    • Handle: RePEc:eee:jotrge:v:41:y:2014:i:c:p:37-44
    DOI: 10.1016/j.jtrangeo.2014.08.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0966692314001690
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jtrangeo.2014.08.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Frédéric Dobruszkes & Véronique Mondou, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," ULB Institutional Repository 2013/142613, ULB -- Universite Libre de Bruxelles.
    2. Papatheodorou, Andreas & Lei, Zheng, 2006. "Leisure travel in Europe and airline business models: A study of regional airports in Great Britain," Journal of Air Transport Management, Elsevier, vol. 12(1), pages 47-52.
    3. Chung, Jin Young & Whang, Taehee, 2011. "The impact of low cost carriers on Korean Island tourism," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1335-1340.
    4. Graham, Anne & Dennis, Nigel, 2010. "The impact of low cost airline operations to Malta," Journal of Air Transport Management, Elsevier, vol. 16(3), pages 127-136.
    5. Dobruszkes, Frédéric & Mondou, Véronique, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 23-34.
    6. Williams, George, 2001. "Will Europe's charter carriers be replaced by “no-frills†scheduled airlines?," Journal of Air Transport Management, Elsevier, vol. 7(5), pages 277-286.
    7. Warnock-Smith, David & Morrell, Peter, 2008. "Air transport liberalisation and traffic growth in tourism-dependent economies: A case-history of some US-Caribbean markets," Journal of Air Transport Management, Elsevier, vol. 14(2), pages 82-91.
    8. Wu, Chuntao & Hayashi, Yoshitsugu, 2013. "Evolution of outbound charter operations in Japan post-deregulation," Transport Policy, Elsevier, vol. 30(C), pages 92-100.
    9. Frédéric Dobruszkes, 2006. "An analysis of European low-cost airlines and their networks," ULB Institutional Repository 2013/95835, ULB -- Universite Libre de Bruxelles.
    10. Oum, Tae Hoon & Lee, Yeong Heok, 2002. "The Northeast Asian air transport network: is there a possibility of creating Open Skies in the region?," Journal of Air Transport Management, Elsevier, vol. 8(5), pages 325-337.
    11. Donzelli, Matteo, 2010. "The effect of low-cost air transportation on the local economy: Evidence from Southern Italy," Journal of Air Transport Management, Elsevier, vol. 16(3), pages 121-126.
    12. Frédéric Dobruszkes & Véronique Mondou, 2013. "Aviation liberalization as a means to promote international tourism: the EU–Morocco case," ULB Institutional Repository 2013/145790, ULB -- Universite Libre de Bruxelles.
    13. Bieger, Thomas & Wittmer, Andreas, 2006. "Air transport and tourism—Perspectives and challenges for destinations, airlines and governments," Journal of Air Transport Management, Elsevier, vol. 12(1), pages 40-46.
    14. Wu, Chuntao & Hayashi, Yoshitsugu & Funck, Carolin, 2012. "The role of charter flights in Sino-Japanese tourism," Journal of Air Transport Management, Elsevier, vol. 22(C), pages 21-27.
    15. Button, Kenneth, 2009. "The impact of US–EU “Open Skies†agreement on airline market structures and airline networks," Journal of Air Transport Management, Elsevier, vol. 15(2), pages 59-71.
    16. Graham, Anne, 2013. "Understanding the low cost carrier and airport relationship: A critical analysis of the salient issues," Tourism Management, Elsevier, vol. 36(C), pages 66-76.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wu, Chuntao & Jiang, Qiuyue & Yang, Hangjun, 2018. "Changes in cross-strait aviation policies and their impact on tourism flows since 2009," Transport Policy, Elsevier, vol. 63(C), pages 61-72.
    2. Dobruszkes, Frédéric & Mondou, Véronique & Ghedira, Aymen, 2016. "Assessing the impacts of aviation liberalisation on tourism: Some methodological considerations derived from the Moroccan and Tunisian cases," Journal of Transport Geography, Elsevier, vol. 50(C), pages 115-127.
    3. Wu, Chuntao, 2016. "How aviation deregulation promotes international tourism in Northeast Asia: A case of the charter market in Japan," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 260-271.
    4. Wu, Chuntao & Liao, Maozhu & Zhang, Yahua & Luo, Mingzhi & Zhang, Guoquan, 2020. "Network development of low-cost carriers in China's domestic market," Journal of Transport Geography, Elsevier, vol. 84(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wu, Chuntao & Jiang, Qiuyue & Yang, Hangjun, 2018. "Changes in cross-strait aviation policies and their impact on tourism flows since 2009," Transport Policy, Elsevier, vol. 63(C), pages 61-72.
    2. Wu, Chuntao, 2016. "How aviation deregulation promotes international tourism in Northeast Asia: A case of the charter market in Japan," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 260-271.
    3. Dobruszkes, Frédéric & Mondou, Véronique & Ghedira, Aymen, 2016. "Assessing the impacts of aviation liberalisation on tourism: Some methodological considerations derived from the Moroccan and Tunisian cases," Journal of Transport Geography, Elsevier, vol. 50(C), pages 115-127.
    4. Vieira, José & Câmara, Gualter & Silva, Francisco & Santos, Carlos, 2019. "Airline choice and tourism growth in the Azores," Journal of Air Transport Management, Elsevier, vol. 77(C), pages 1-6.
    5. Stephen Pratt & Markus Schuckert, 2019. "Economic impact of low-cost carrier in a saturated transport market: Net benefits or zero-sum game?," Tourism Economics, , vol. 25(2), pages 149-170, March.
    6. à lvarez-Díaz, Marcos & González-Gómez, Manuel & Otero-Giráldez, María Soledad, 2019. "Low cost airlines and international tourism demand. The case of Porto's airport in the northwest of the Iberian Peninsula," Journal of Air Transport Management, Elsevier, vol. 79(C), pages 1-1.
    7. Button, Kenneth & Kramberger, Tomaž & Grobin, Klemen & Rosi, Bojan, 2018. "A note on the effects of the number of low-cost airlines on small tourist airports' efficiencies," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 92-97.
    8. Bernardo, Valeria & Fageda, Xavier, 2017. "The effects of the Morocco-European Union open skies agreement: A difference-in-differences analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 98(C), pages 24-41.
    9. Hong Tsui, Kan Wai, 2017. "Does a low-cost carrier lead the domestic tourism demand and growth of New Zealand?," Tourism Management, Elsevier, vol. 60(C), pages 390-403.
    10. Albalate, Daniel & Fageda, Xavier, 2016. "High speed rail and tourism: Empirical evidence from Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 174-185.
    11. Wu, Chuntao & Liao, Maozhu & Zhang, Yahua & Luo, Mingzhi & Zhang, Guoquan, 2020. "Network development of low-cost carriers in China's domestic market," Journal of Transport Geography, Elsevier, vol. 84(C).
    12. Dobruszkes, Frédéric & Mondou, Véronique, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 23-34.
    13. Fageda, Xavier & Jiménez, Juan Luis & Perdiguero, Jordi & Marrero, Kevin, 2017. "Does market exit of a network airline affect airline prices and frequencies on tourist routes?," Tourism Management, Elsevier, vol. 61(C), pages 465-471.
    14. Papatheodorou, Andreas, 2021. "A review of research into air transport and tourism," Annals of Tourism Research, Elsevier, vol. 87(C).
    15. Koo, Tay T.R. & Lim, Christine & Dobruszkes, Frédéric, 2017. "Causality in direct air services and tourism demand," Annals of Tourism Research, Elsevier, vol. 67(C), pages 67-77.
    16. Pagliara, Francesca & La Pietra, Andrea & Gomez, Juan & Manuel Vassallo, José, 2015. "High Speed Rail and the tourism market: Evidence from the Madrid case study," Transport Policy, Elsevier, vol. 37(C), pages 187-194.
    17. Wu, Chuntao & Hayashi, Yoshitsugu, 2013. "Evolution of outbound charter operations in Japan post-deregulation," Transport Policy, Elsevier, vol. 30(C), pages 92-100.
    18. Daniel Albalate del sol, 2015. "Evaluating HSR availability on Tourism: Evidence from Spanish Provinces and Cities," ERSA conference papers ersa15p288, European Regional Science Association.
    19. Hsu, Chia-Jui & Yen, Jin-Ru & Chang, Yu-Chun & Woon, Hui Kee, 2016. "How do the services of low cost carriers affect passengers' behavioral intentions to revisit a destination?," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 111-116.
    20. Khan, Nokhaiz Tariq & Jung, Gisun & Kim, Jaebum & Kim, Yun Bae, 2019. "Evolving competition between low-cost carriers and full-service carriers: The case of South Korea," Journal of Transport Geography, Elsevier, vol. 74(C), pages 1-9.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jotrge:v:41:y:2014:i:c:p:37-44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-transport-geography .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.