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The integration of Taiwanese and Chinese air networks for direct air cargo services

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  • Lin, Cheng-Chang
  • Chen, Yin-Chieh

Abstract

The two sides of the Taiwan Strait perform mutually dependent but complementary activities in the global manufacturing supply-chain. As a result, trade between Taiwan and China grew in double digits annually in the 1990s. With growing economic ties, direct air links are inevitable. In this research, we analyzed government documents and interviewed the air cargo carriers and airlines that currently serve the Taiwan-China air cargo market. This information enabled us to tabulate the trade, estimate the airport-to-airport air cargo demand and calibrate the international and domestic freight tariffs. We used a connectivity measurement and classified Chinese airports into national, regional and local classes in a hub-and-spoke air cargo network. We developed a mathematical model and a branch-and-bound algorithm. The results showed that at least two transit airports are economically necessary for a Taiwan-China air link. Shanghai and Xiamen were always the top two transit airports. The third airport would be Changsha if the decision becomes three air-links. These links are different from the top three passenger transit airports, Fuzhou, Xiamen and Shanghai, even though the cost saving is moderate.

Suggested Citation

  • Lin, Cheng-Chang & Chen, Yin-Chieh, 2003. "The integration of Taiwanese and Chinese air networks for direct air cargo services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(7), pages 629-647, August.
    • Handle: RePEc:eee:transa:v:37:y:2003:i:7:p:629-647
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    2. Lau, Yui Yip & Lei, Zheng & Fu, Xiaowen & Ng, Adolf K.Y., 2012. "The implications of the re-establishment of direct links across the Taiwan Strait on the aviation industries in Greater China," Research in Transportation Economics, Elsevier, vol. 35(1), pages 3-12.
    3. Wang, Zujian & Qi, Mingyao & Cheng, Chun & Zhang, Canrong, 2019. "A hybrid algorithm for large-scale service network design considering a heterogeneous fleet," European Journal of Operational Research, Elsevier, vol. 276(2), pages 483-494.
    4. Deng, Yu & Zhang, Yahua & Wang, Kun, 2022. "An analysis of the Chinese scheduled freighter network during the first year of the COVID-19 pandemic," Journal of Transport Geography, Elsevier, vol. 99(C).
    5. Xiao, Fan & Guo, Siqi & Huang, Lin & Huang, Lei & Liang, Zhe, 2022. "Integrated aircraft tail assignment and cargo routing problem with through cargo consideration," Transportation Research Part B: Methodological, Elsevier, vol. 162(C), pages 328-351.
    6. Ming-Chih Tsai & Rico Merkert & Jiana-Fu Wang, 2021. "What drives freight transportation customer loyalty? Diverging marketing approaches for the air freight express industry," Transportation, Springer, vol. 48(3), pages 1503-1521, June.
    7. Chen, Zhenhua, 2017. "Impacts of high-speed rail on domestic air transportation in China," Journal of Transport Geography, Elsevier, vol. 62(C), pages 184-196.
    8. Iseki, Hiroyuki & Liu, Chao & Knaap, Gerrit, 2018. "The determinants of travel demand between rail stations: A direct transit demand model using multilevel analysis for the Washington D.C. Metrorail system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 635-649.
    9. Fu, Xiaowen & Zhang, Anming & Lei, Zheng, 2012. "Will China’s airline industry survive the entry of high-speed rail?," Research in Transportation Economics, Elsevier, vol. 35(1), pages 13-25.
    10. Hua, Jian & Wu, Yi-Hsuan & Jin, Pang-Fu, 2008. "Prospects for renewable energy for seaborne transportation—Taiwan example," Renewable Energy, Elsevier, vol. 33(5), pages 1056-1063.
    11. Delgado, Felipe & Mora, Julio, 2021. "A matheuristic approach to the air-cargo recovery problem under demand disruption," Journal of Air Transport Management, Elsevier, vol. 90(C).
    12. Lázaro Florido-Benítez, 2023. "The Role of the Top 50 US Cargo Airports and 25 Air Cargo Airlines in the Logistics of E-Commerce Companies," Logistics, MDPI, vol. 7(1), pages 1-27, February.
    13. Ming-Chih Tsai & Rico Merkert & Jiana-Fu Wang, 0. "What drives freight transportation customer loyalty? Diverging marketing approaches for the air freight express industry," Transportation, Springer, vol. 0, pages 1-19.
    14. Delgado, Felipe & Sirhan, Cristóbal & Katscher, Mathias & Larrain, Homero, 2020. "Recovering from demand disruptions on an air cargo network," Journal of Air Transport Management, Elsevier, vol. 85(C).

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