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Liberalization of China–US air transport market: Assessing the impacts of the 2004 and 2007 protocols

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  • Lei, Zheng
  • Yu, Man
  • Chen, Ruowei
  • O'Connell, John F.

Abstract

This paper examines China's considerations in reaching the 2004 and 2007 Air Service Agreement Protocols with the United States (US) and the impacts of such policy on the China–US market from the perspective of China. Analysis shows that the 2004 and 2007 protocols have profound impacts on the China–US market. The two protocols have been associated with phenomenal traffic growth and intensified competition. Passengers also benefit from much more choice in terms of both airlines and routing. Over time, Chinese carriers' operating performance and financial performance have gradually improved after the liberalization expressed in the protocols. However, the industry's hub-building initiatives are still seriously challenged by competing hubs in Seoul and Tokyo which have diverted substantial number of passengers moving between the China and US markets. Such issues have to be addressed in order to create a win–win outcome for both countries.

Suggested Citation

  • Lei, Zheng & Yu, Man & Chen, Ruowei & O'Connell, John F., 2016. "Liberalization of China–US air transport market: Assessing the impacts of the 2004 and 2007 protocols," Journal of Transport Geography, Elsevier, vol. 50(C), pages 24-32.
    • Handle: RePEc:eee:jotrge:v:50:y:2016:i:c:p:24-32
    DOI: 10.1016/j.jtrangeo.2015.09.003
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    References listed on IDEAS

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    Cited by:

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    3. Zhang, Yi & Zheng, Xingwu & Lu, Wei, 2018. "Measuring the openness of Chinese international air transport policy," Transport Policy, Elsevier, vol. 72(C), pages 208-217.
    4. Zhang, Linfeng & Hou, Meng & Liu, Yichen & Wang, Kun & Yang, Hangjun, 2022. "Measuring Beijing's international air connectivity and suggestions for improvement post COVID-19," Transport Policy, Elsevier, vol. 116(C), pages 132-143.
    5. Ho, Chun-Yu & McCarthy, Patrick & Wang, Yanhao, 2021. "Competition and countervailing power: Evidence from the China Eastern and Shanghai Airlines merger," Journal of Air Transport Management, Elsevier, vol. 91(C).
    6. Wang, Yanzai & Hao, Chengzhi & Liu, Dawei, 2019. "The spatial and temporal dimensions of the interdependence between the airline industry and the Chinese economy," Journal of Transport Geography, Elsevier, vol. 74(C), pages 201-210.
    7. Jiaoe Wang & Haoran Yang & Han Wang, 2019. "The Evolution of China’s International Aviation Markets from a Policy Perspective on Air Passenger Flows," Sustainability, MDPI, vol. 11(13), pages 1-15, June.
    8. Ma, Wenliang & Zhang, Anming & Zhang, Yahua & Xu, Shiteng, 2021. "The growing influence of low-cost carriers in Northeast Asia and its implications for a regional single aviation market," Journal of Air Transport Management, Elsevier, vol. 91(C).

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