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Airline Deregulation, Market Competition, and Impact of High-speed Rail on Airlines in China

In: Airline Economics in Asia

Author

Listed:
  • Hangjun Yang
  • Qiong Zhang
  • Qiang Wang

Abstract

In this chapter, we will review the history, deregulation, policy reforms, and airline consolidations and mergers of the Chinese airline industry. The measurement of airline competition in China’s domestic market will also be discussed. Although air deregulation is still ongoing, the Chinese airline industry has become a market-driven business subject to some mild regulations. Then, we will review the impressive development of the high-speed rail (HSR) network in China and its effects on the domestic civil aviation market. In general, previous studies have found that the introduction of HSR services has a significant negative impact on airfare and air travel demand in China. The rapidly expanding network of HSR has important policy implications for Chinese airlines.

Suggested Citation

  • Hangjun Yang & Qiong Zhang & Qiang Wang, 2018. "Airline Deregulation, Market Competition, and Impact of High-speed Rail on Airlines in China," Advances in Airline Economics, in: Airline Economics in Asia, volume 7, pages 79-101, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aiaezz:s2212-160920180000007006
    DOI: 10.1108/S2212-160920180000007006
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    Citations

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    Cited by:

    1. Zhang, Anming & Wan, Yulai & Yang, Hangjun, 2019. "Impacts of high-speed rail on airlines, airports and regional economies: A survey of recent research," Transport Policy, Elsevier, vol. 81(C), pages 1-19.
    2. Li, Hongchang & Wang, Kun & Yu, Kemei & Zhang, Anming, 2020. "Are conventional train passengers underserved after entry of high-speed rail?-Evidence from Chinese intercity markets," Transport Policy, Elsevier, vol. 95(C), pages 1-9.
    3. Wu, Shuping & Han, Dan, 2022. "Accessibility of high-speed rail (HSR) stations and HSR–air competition: Evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 166(C), pages 262-284.
    4. Wen Yang & Quanliang Chen & Jing Yang, 2022. "Factors Affecting Travel Mode Choice between High-Speed Railway and Road Passenger Transport—Evidence from China," Sustainability, MDPI, vol. 14(23), pages 1-17, November.

    More about this item

    Keywords

    Airline deregulation; market competition; high-speed rail; China; airline mergers; market-driven business; L43; L92; L93;
    All these keywords.

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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