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Air Transport and High-speed Rail Interactions in China: Review on Impacts of Low-cost Carriers, Rail Speed, and Modal Integration

In: Airline Economics in Asia

Author

Listed:
  • Wenyi Xia
  • Kun Wang
  • Anming Zhang

Abstract

This chapter reviews three main issues in the interactions between air transport and high-speed rail (HSR) in China, namely the interaction between low-cost carriers (LCCs) and HSR, HSR speed effect on airlines, and airline–HSR integration. Studies on these three aspects of airline–HSR interactions have yet been well reviewed, and our chapter aims to fill in this gap. In this chapter, we comprehensively survey literature on the topics, especially studies on Chinese markets that have recently witnessed major HSR developments (and have planned further large-scale HSR expansion in the coming years). Our review shows that, first, compared to full-service carriers, LCCs face fiercer competition from HSR. However, the expansion of HSR network in China can be better coordinated with LCC development. Second, HSR speed exerts two countervailing effects on airline demand and price (the “travel-time” effect and “safety” effect, respectively). Specifically, an HSR speed reduction can have a positive effect on airlines due to longer HSR travel time, but a negative effect on airlines due to improved perception on HSR safety. Third, airline–HSR integration can be implemented through cooperation between airlines and HSR operators and through co-location of airports and HSR stations and can have important implications for intermodal transport and social welfare.

Suggested Citation

  • Wenyi Xia & Kun Wang & Anming Zhang, 2018. "Air Transport and High-speed Rail Interactions in China: Review on Impacts of Low-cost Carriers, Rail Speed, and Modal Integration," Advances in Airline Economics, in: Airline Economics in Asia, volume 7, pages 103-122, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aiaezz:s2212-160920180000007007
    DOI: 10.1108/S2212-160920180000007007
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    Citations

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

    1. Chen, Yilin & Yang, Hangjun & Wang, Kun & Guo, Lin, 2022. "Intercity network expansion by low-cost carrier or high-speed rail, from the environmental perspective," Journal of Air Transport Management, Elsevier, vol. 104(C).
    2. Zhang, Anming & Wan, Yulai & Yang, Hangjun, 2019. "Impacts of high-speed rail on airlines, airports and regional economies: A survey of recent research," Transport Policy, Elsevier, vol. 81(C), pages 1-19.
    3. Li, Hongchang & Wang, Kun & Yu, Kemei & Zhang, Anming, 2020. "Are conventional train passengers underserved after entry of high-speed rail?-Evidence from Chinese intercity markets," Transport Policy, Elsevier, vol. 95(C), pages 1-9.
    4. Wang, Yixiao & Sun, Luoyi & Teunter, Ruud H. & Wu, Jianhong & Hua, Guowei, 2020. "Effects of introducing low-cost high-speed rail on air-rail competition: Modelling and numerical analysis for Paris-Marseille," Transport Policy, Elsevier, vol. 99(C), pages 145-162.
    5. Jiang, Changmin & Wang, Kun & Wang, Qiang & Yang, Hangjun, 2022. "The Impact of High-Speed Rail Competition on Airline On-Time Performance," Transportation Research Part B: Methodological, Elsevier, vol. 161(C), pages 109-127.
    6. Strauss, Jack & Li, Hongchang & Cui, Jinli, 2021. "High-speed Rail's impact on airline demand and air carbon emissions in China," Transport Policy, Elsevier, vol. 109(C), pages 85-97.
    7. Wang, Kun & Jiang, Changmin & Ng, Adolf K.Y. & Zhu, Zhenran, 2020. "Air and rail connectivity patterns of major city clusters in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 139(C), pages 35-53.

    More about this item

    Keywords

    High-speed rail (HSR); air transport; low-cost carriers (LCCs); modal integration; train speed; China; D43; L93; R41;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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