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Network development of low-cost carriers in China's domestic market

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  • Wu, Chuntao
  • Liao, Maozhu
  • Zhang, Yahua
  • Luo, Mingzhi
  • Zhang, Guoquan

Abstract

This paper examines China's LCC market and assesses the network development patterns from a geographical perspective. Overall, a nationwide LCC network has been formed with each individual LCC focusing on their own markets with limited overlap to avoid cut-throat competition. Spring Airlines has developed an advanced network supported by its core bases including Shanghai in East China, Shijiazhuang in North China, Shenyang in Northeast China and Shenzhen in South China. China United has developed a network radiating from Beijing. West Air and Lucky Air seem to be developing a hub-and-spoke network that contributes to the tourism industry in West China. The LCC network is affected by seasonal variations, especially for the routes to tourism destinations such as Haikou, Sanya and Xiamen. Hub cities, however, experience less seasonal impact. This research also finds that routes between 600 and 1800 km account for a large proportion of the LCC markets. Aviation policy, local government's subsidization and the expansion of the high-speed rail network have helped shape the landscape of China's LCC sector.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:jotrge:v:84:y:2020:i:c:s0966692319306374
    DOI: 10.1016/j.jtrangeo.2020.102670
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    4. Yang, Hangjun & Ma, Wenliang & Wang, Qiang & Wang, Kun & Zhang, Yahua, 2020. "Welfare implications for air passengers in China in the era of high-speed rail," Transport Policy, Elsevier, vol. 95(C), pages 1-13.
    5. Ma, Wenliang & Wang, Qiang & Yang, Hangjun & Zhang, Guoquan & Zhang, Yahua, 2020. "Understanding airline price dispersion in the presence of high-speed rail," Transport Policy, Elsevier, vol. 95(C), pages 93-102.
    6. Law, Colin C.H. & Zhang, Yahua & Gow, Jeff & Vu, Xuan-Binh, 2022. "Dynamic relationship between air transport, economic growth and inbound tourism in Cambodia, Laos, Myanmar and Vietnam," Journal of Air Transport Management, Elsevier, vol. 98(C).
    7. 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).
    8. Chow, Clement Kong Wing & Tsui, Wai Hong Kan & Wu, Hanjun, 2021. "Airport subsidies and domestic inbound tourism in China," Annals of Tourism Research, Elsevier, vol. 90(C).
    9. Czerny, Achim I. & Fu, Xiaowen & Lei, Zheng & Oum, Tae H., 2021. "Post pandemic aviation market recovery: Experience and lessons from China," Journal of Air Transport Management, Elsevier, vol. 90(C).
    10. Hu, Yue & Dai, Liang & Fuellhart, Kurt & Witlox, Frank, 2024. "Examining competition among airline regarding route portfolios at domestic hubs under government regulation: The case of China's aviation market," Journal of Air Transport Management, Elsevier, vol. 116(C).
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