IDEAS home Printed from https://ideas.repec.org/h/eme/aiaezz/s2212-160920140000004000.html
   My bibliography  Save this book chapter

Air Transport Liberalization and its Effects on Airline Competition and Traffic Growth – An Overview

In: The Economics of International Airline Transport

Author

Listed:
  • Xiaowen Fu
  • Tae Hoon Oum

Abstract

This chapter reviews the effects of air transport liberalization, and investigates the roles played by airport-airline vertical arrangements in liberalizing markets. Our investigation concludes that liberalization has led to substantial economic and traffic growth. Such positive outcomes are mainly due to increased competition and efficiency gains in the airline industry, and positive externalities to the overall economy. Liberalization allows airlines to optimize their networks, and thus may introduce substantial demand and financial uncertainty to airports. Vertical arrangements between airlines and airports may offer a wide range of benefits to the parties involved, yet such arrangements could also lead to airline entry barriers which reduce the effects of liberalization. Three approaches have been developed to model the effects of liberalization in complex market conditions, which include the analytical, econometric and computational network methods. These approaches should be selectively utilized in policy studies on liberalization.

Suggested Citation

  • Xiaowen Fu & Tae Hoon Oum, 2014. "Air Transport Liberalization and its Effects on Airline Competition and Traffic Growth – An Overview," Advances in Airline Economics, in: The Economics of International Airline Transport, volume 4, pages 11-44, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aiaezz:s2212-160920140000004000
    DOI: 10.1108/S2212-160920140000004000
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/S2212-160920140000004000/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://www.emerald.com/insight/content/doi/10.1108/S2212-160920140000004000/full/epub?utm_source=repec&utm_medium=feed&utm_campaign=repec&title=10.1108/S2212-160920140000004000
    Download Restriction: no
    File URL: https://www.emerald.com/insight/content/doi/10.1108/S2212-160920140000004000/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://libkey.io/10.1108/S2212-160920140000004000?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yakath Ali, Nurul Syuhadah & Yu, Chunyan & See, Kok Fong, 2021. "Four decades of airline productivity and efficiency studies: A review and bibliometric analysis," Journal of Air Transport Management, Elsevier, vol. 96(C).
    2. Warnock-Smith, David & Christidis, Panayotis, 2021. "European Union-Latin America/Caribbean air transport connectivity and competitiveness in different air policy contexts," Journal of Transport Geography, Elsevier, vol. 92(C).
    3. Pearson, James & Pitfield, David & Ryley, Tim, 2015. "Intangible resources of competitive advantage: Analysis of 49 Asian airlines across three business models," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 179-189.
    4. Wai Hong Kan Tsui & Faruk Balli, 2017. "International arrivals forecasting for Australian airports and the impact of tourism marketing expenditure," Tourism Economics, , vol. 23(2), pages 403-428, March.
    5. D’Alfonso, Tiziana & Daraio, Cinzia & Nastasi, Alberto, 2015. "Competition and efficiency in the Italian airport system: new insights from a conditional nonparametric frontier analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 20-38.
    6. Koo, Tay T.R. & Hossein Rashidi, Taha & Park, Jin-Woo & Wu, Cheng-Lung & Tseng, Wen-Chun, 2017. "The effect of enhanced international air access on the demand for peripheral tourism destinations: Evidence from air itinerary choice behaviour of Korean visitors to Australia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 116-129.
    7. Pearson, James & O'Connell, John F. & Pitfield, David & Ryley, Tim, 2015. "The strategic capability of Asian network airlines to compete with low-cost carriers," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 1-10.
    8. Fu, Xiaowen & Oum, Tae Hoon & Chen, Ruowei & Lei, Zheng, 2015. "Dominant carrier performance and international liberalization – The case of Northeast Asia," Transport Policy, Elsevier, vol. 43(C), pages 61-75.
    9. Wang, Kun & Fu, Xiaowen & Czerny, Achim I. & Hua, Guowei & Lei, Zheng, 2020. "Modeling the potential for aviation liberalization in Central Asia – Market analysis and implications for the Belt and Road Initiative," Transportation Research Part A: Policy and Practice, Elsevier, vol. 134(C), pages 184-210.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:aiaezz:s2212-160920140000004000. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.