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Air transport development: a comparative analysis of China and India

In: Air Transport Liberalization

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  • Yahua Zhang
  • Anming Zhang

Abstract

China and India have attracted the attention of the world in the last two decades as powerhouses of economic growth. However, scholarly studies comparing the development of two aviation markets and the market outcomes for the two countries are lacking. This chapter offers the first such comparative study, with a focus on the efficiency of airlines of the two countries. The study reviews the evolution of the air transport industry in China and India, and then assesses the efficiency performances of the state-owned and privately-owned airlines in the two markets. It is found that Indian carriers tend to be more efficient than their Chinese counterparts, and that Air India and Spring Airlines are the leaders in terms of achieving technical efficiency. The dominant status of the private airlines in the Indian market does not come by chance. The analysis shows that China’s aviation policy has long been hostile to the private carriers, and various obstacles to their expansion and growth still remain. In contrast, Indian private airlines, especially the low-cost carriers, have enjoyed more freedom and received support from a comprehensive air liberalization programme.

Suggested Citation

  • Yahua Zhang & Anming Zhang, 2017. "Air transport development: a comparative analysis of China and India," Chapters, in: Matthias Finger & Kenneth Button (ed.), Air Transport Liberalization, chapter 7, pages 112-137, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:17375_7
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    Citations

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    Cited by:

    1. Ma, Wenliang & Wang, Qiang & Yang, Hangjun & Zhang, Guoquan & Zhang, Yahua, 2020. "Understanding airline price dispersion in the presence of high-speed rail," Transport Policy, Elsevier, vol. 95(C), pages 93-102.
    2. Zhang, Qiong & Yang, Hangjun & Wang, Qiang & Zhang, Anming & Zhang, Yahua, 2020. "Impact of high-speed rail on market concentration and Lerner index in China's airline market," Journal of Air Transport Management, Elsevier, vol. 83(C).
    3. Ma, Wenliang & Wang, Qiang & Yang, Hangjun & Zhang, Yahua, 2020. "Is multimarket contact an antitrust concern? A case of China’s airline market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 515-526.
    4. Wang, Kun & Zhang, Anming & Zhang, Yahua, 2018. "Key determinants of airline pricing and air travel demand in China and India: Policy, ownership, and LCC competition," Transport Policy, Elsevier, vol. 63(C), pages 80-89.
    5. Wu, Chuntao & Liao, Maozhu & Zhang, Yahua & Luo, Mingzhi & Zhang, Guoquan, 2020. "Network development of low-cost carriers in China's domestic market," Journal of Transport Geography, Elsevier, vol. 84(C).
    6. Ma, Wenliang & Wang, Qiang & Yang, Hangjun & Zhang, Yahua, 2020. "Evaluating the price effects of two airline mergers in China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    7. 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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