Air Transport Liberalization and its Impacts on Airline Competition and Air Passenger Traffic

This study investigates the effects of liberalization policies on traffic volume, economic growth and traffic flow patterns, and examines the mechanisms leading to those variations. The authors' investigation concludes that 1) liberalization has led to substantial traffic and economic growth. Such positive impacts are mainly due to increased competition and efficiency gains in the airline industry, as well as positive externalities to the overall economy; 2) liberalization allows airlines to optimize their networks within and across continental markets. As a result, traffic flow patterns will change accordingly. Strategic alliance is a second best solution and will have reduced when ownership and citizenship restrictions are relaxed; 3) there is a two-way relationship between the expansion of Low Cost Carriers (LCCs) vs. liberalization. The fast growth of LCCs leads to increased competition and stimulated traffic, calling for the removal of restrictions on capacity, frequency and pricing. In addition, development of LCCs in domestic market can promote liberalization policy by increasing the competitiveness of a national aviation industry. On the other hand, existing regulations hindered the growth of LCCs. Further liberalization is needed for the full realization of associated benefits.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/9789623676533
• Corporate Authors:

  Hong Kong Polytechnic University

  Department of Logistics and Maritime Studies
  Tung International Centre for Maritime Studies
  Hong Kong,   China 
• Authors:
  • Oum, Tae Hoon
  • Zhang, Anming
  • Fu, Xiaowen
• Conference:
  • International Forum on Shipping, Ports and Airports (IFSPA) 2009 - Post-Financial Tsunami: The Way Forward for Shipping, Transport and International Trade
  • Location: Hong Kong , China
  • Date: 2009-5-24 to 2009-5-27
• Publication Date: 2009-8

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 371-390
• Monograph Title: Proceedings of the International Forum on Shipping, Ports and Airports (IFSPA) 2009 - Post-Financial Tsunami: The Way Forward for Shipping, Transport and International Trade, 24 - 27 May 2009, The Hong Kong Polytechnic University, Hong Kong, China

Subject/Index Terms

• TRT Terms: Air traffic; Airlines; Competition; Deregulation; Economic efficiency; Economic growth; Low cost carriers; Passenger traffic
• Subject Areas: Aviation; Economics; Operations and Traffic Management;

Filing Info

• Accession Number: 01362694
• Record Type: Publication
• ISBN: 9789623676533
• Files: TRIS
• Created Date: Feb 16 2012 10:14AM