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Will China’s airline industry survive the entry of high-speed rail?

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  • Fu, Xiaowen
  • Zhang, Anming
  • Lei, Zheng

Abstract

This study investigates the effects of high-speed rail (HSR) services on Chinese airlines. Our analysis suggests that the HSR service will be competitive in terms of network connectivity, total travel time and cost efficiency. On the other hand, growth of the Chinese airline industry has been unbalanced in terms of traffic distribution, airline network development, airport capacity and share of international traffic. While the long term prospects of Chinese airlines are bright, the carriers must develop effective hub-and-spoke networks and increase their competitiveness in international markets in order to achieve sustainable growth in the coming years. For the Chinese government, continued investment at hub airports and support to low-cost carriers are also necessary.

Suggested Citation

  • Fu, Xiaowen & Zhang, Anming & Lei, Zheng, 2012. "Will China’s airline industry survive the entry of high-speed rail?," Research in Transportation Economics, Elsevier, vol. 35(1), pages 13-25.
    • Handle: RePEc:eee:retrec:v:35:y:2012:i:1:p:13-25
    DOI: 10.1016/j.retrec.2011.11.006
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    References listed on IDEAS

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