Market Power and Its Determinants of the Chinese Airline Industry

This paper uses the Lerner index to analyze the market power of Chinese airlines and investigates its main determinants. Empirical results show that a certain degree of market power exists in the Chinese airline industry. Of the three largest carriers, Air China has the strongest market power whereas China Eastern Airlines has the weakest, with China Southern Airlines in the middle. Furthermore, the northeast region of China sees the least competition within the domestic market, whereas the central area is the most competitive. The authors also find that route distance, population size, income level of the origin-destination city pairs, market share of airlines, and the existence of low-cost carriers and high-speed rail are the main determinants for how competitive the Chinese airline industry is.

Language

  • English

Media Info

  • Media Type: Digital/other
  • Features: Figures; References; Tables;
  • Pagination: pp 50-60
  • Monograph Title: Proceedings of the International Forum on Shipping, Ports and Airports (IFSPA) 2013: Trade, Supply Chain Activities and Transport: Contemporary Logistics and Maritime Issues

Subject/Index Terms

Filing Info

  • Accession Number: 01495927
  • Record Type: Publication
  • ISBN: 9789623677677
  • Files: TRIS
  • Created Date: Oct 11 2013 3:24PM