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Market Conduct of the Three Busiest Airline Routes in China


  • Qiong Zhang
  • Hangjun Yang
  • Qiang Wang


This paper studies the market conduct of the three busiest routes dominated by the three largest airlines in China. The competition strategies of the three largest Chinese carriers are found to be different from each other. In general, the market behaviour of Air China is consistent with that described in the Cournot solution. Both China Southern Airlines and China Eastern Airlines demonstrate competitive behaviours somewhere between Bertrand and Cournot. However, the former is closer to Cournot, whereas the latter is closer to Bertrand. We also find that the competition among the three carriers becomes more intense over time. © 2013 LSE and the University of Bath

Suggested Citation

  • Qiong Zhang & Hangjun Yang & Qiang Wang, 2013. "Market Conduct of the Three Busiest Airline Routes in China," Journal of Transport Economics and Policy, University of Bath, vol. 47(3), pages 335-347, September.
  • Handle: RePEc:tpe:jtecpo:v:47:y:2013:i:3:p:335-347

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    1. repec:eee:trapol:v:63:y:2018:i:c:p:61-72 is not listed on IDEAS
    2. Fu, Qiang & Wang, Nuo & Shen, MingQi & Song, NanQi & Yan, HuaKun, 2016. "A study of the site selection of a civil airport based on the risk of bird strikes: The case of Dalian, China," Journal of Air Transport Management, Elsevier, vol. 54(C), pages 17-30.
    3. Wang, Kun & Fan, Xingli & Fu, Xiaowen & Zhou, Yiran, 2014. "Benchmarking the performance of Chinese airlines: An investigation of productivity, yield and cost competitiveness," Journal of Air Transport Management, Elsevier, vol. 38(C), pages 3-14.
    4. repec:eee:transa:v:112:y:2018:i:c:p:46-59 is not listed on IDEAS
    5. Zhang, Qiong & Yang, Hangjun & Wang, Qiang & Zhang, Anming, 2014. "Market power and its determinants in the Chinese airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 64(C), pages 1-13.
    6. repec:eee:transa:v:120:y:2019:i:c:p:261-276 is not listed on IDEAS
    7. Ha, Hun-Koo & Wan, Yulai & Yoshida, Yuichiro & Zhang, Anming, 2013. "Airline market structure and airport efficiency: Evidence from major Northeast Asian airports," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 32-42.
    8. repec:eee:trapol:v:76:y:2019:i:c:p:90-99 is not listed on IDEAS
    9. Wang, Kun & Gong, Qiang & Fu, Xiaowen & Fan, Xingli, 2014. "Frequency and aircraft size dynamics in a concentrated growth market: The case of the Chinese domestic market," Journal of Air Transport Management, Elsevier, vol. 36(C), pages 50-58.
    10. repec:gam:jsusta:v:11:y:2019:i:13:p:3566-:d:243809 is not listed on IDEAS
    11. Vlachos, Ilias & Lin, Zhibin, 2014. "Drivers of airline loyalty: Evidence from the business travelers in China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 1-17.
    12. 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.
    13. repec:eee:jotrge:v:50:y:2016:i:c:p:12-23 is not listed on IDEAS
    14. Zhang, Qiong & Yang, Hangjun & Wang, Qiang, 2017. "Impact of high-speed rail on China’s Big Three airlines," Transportation Research Part A: Policy and Practice, Elsevier, vol. 98(C), pages 77-85.

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