Browse > Article
http://dx.doi.org/10.14400/JDC.2020.18.6.065

A Longitudinal Analysis of Deconcentration Process for the Top 20 Airlines in China  

Chen, Jiarong (Graduate School of Logistics, Incheon National University)
Yeo, Gi-Tae (Graduate School of Logistics, Incheon National University)
Publication Information
Journal of Digital Convergence / v.18, no.6, 2020 , pp. 65-79 More about this Journal
Abstract
With the rapid development of China's economy, the aviation industry, as an important part of transportation services, has undoubtedly achieved rapid development. However, there is hardly any academic work that was based on the development of the top airlines in the Chinese airline industry. Hence, this study provides empirical research that takes into account the longitudinal development of the top 20 airlines in China from 2009 to 2018. The throughput volumes (cargo and passenger) of the airlines were analyzed by concentration indicators, namely the concentration ratio (CR), the Herfindahl- Hirschman index (HHI), the Gini coefficient, and the shift-share analysis (SSA). In this paper, the top 20 airlines have been analyzed in terms of the passenger and cargo throughput from 2009 to 2018. The calculation results of CR6, HHI and the Gini coefficient show that the airlines were extremely deconcentrated. In addition, by comparing the ABSGR of passenger and cargo throughput, it is shown that China's aviation industry is dominated by four airlines- Air China, China Eastern Airlines, China Southern Airlines and Hainan Airlines. In the future study, it is necessary to explore growth strategies to find niche markets for passenger and cargo transportation.
Keywords
Longitudinal Analysis; Deconcentration; Airlines; China; HHI; CR; SSA;
Citations & Related Records
연도 인용수 순위
  • Reference
1 C. Casanueva, A. Gallego, I. Castro & M. Sancho. (2014). Airline alliances: Mobilizing network resources. Tourism Management, 44, 88-98. DOI : 10.1016/j.tourman.2014.02.011   DOI
2 Y. Li & Q. Cui. (1991). Carbon neutral growth from 2020 strategy and airline environmental inefficiency: A Network Range Adjusted Environmental Data Envelopment Analysis. Applied Energy, 1991, 13-24. DOI : 10.1016/j.apenergy.2017.04.072
3 R. Bogdane, O. Gorbacovs, V. Sestakovs & I. Arandas. (2019). Development of a model for assessing the level of flight safety in an airline using concept of risk. Procedia Computer Science, 1492019, 365-374. DOI : 10.1016/j.procs.2019.01.150
4 M. Su, W. Luan & T. Su. (2019). Effect of high-speed rail competition on airlines' intertemporal price strategies. Journal of Air Transport Management, 80, 101694. DOI : 10.1016/j.jairtraman.2019.101694   DOI
5 P. Suau-Sanchez, G. Burghouwt. (2011). The geography of the Spanish airport system: spatial concentration and deconcentration patterns in seat capacity distribution, 2001-2008. Journal of Transport Geography, 19(2), 244-254. DOI : 10.1016/j.jtrangeo.2010.03.019   DOI
6 D. E. Rose. (1991). Appropriate Uses of Hybrid Systems. Connectionist Models, 1991, 277-286. DOI : 10.1016/B978-1-4832-1448-1.50034-2   DOI
7 K. Richards. (1996). The effect of Southwest airlines on U.S. Airline markets. Research in Transportation Economics, 41996, 33-47. DOI : 10.1016/S0739-8859(96)80004-7   DOI
8 Y. Li, Y. Z. Wang & Q. Cui. (2015). Evaluating airline efficiency: An application of Virtual Frontier Network SBM. Transportation Research Part E : Logistics and Transportation Review, 81, 1-17. DOI : 10.1016/j.tre.2015.06.006   DOI
9 W. Homsombat, Z. Lei & X. Fu. (2014). Competitive effects of the airlines-within-airlines strategy -Pricing and route entry patterns. Transportation Research Part E: Logistics and Transportation Review, 63, 1-16. DOI : 10.1016/j.tre.2013.12.008   DOI
10 S. H. Tsaur, T. Y. Chang & C. H. Yen. (2002). The evaluation of airline service quality by fuzzy MCDM. Tourism Management, 23(2), 107-115. DOI : 10.1016/S0261-5177(01)00050-4   DOI
11 R. E. Dodson, E. A. Houseman, B. M. Jonathan & I. Levy. (2009). An analysis of continuous black carbon concentrations in proximity to an airport and major roadways. Atmospheric Environment, 43(24), 3764-3773. DOI : 10.1016/j.atmosenv.2009.04.014   DOI
12 D. A. Jean & G. Lohmann. (2016). Revisiting the airline business model spectrum: The influence of post global financial crisis and airline mergers in the US (2011-2013). Research in Transportation Business & Management, 21, 76-83.DOI : 10.1016/j.rtbm.2016.06.002   DOI
13 Q. Cui, Y. Li & Y. M. Wei. (2017). Exploring the impacts of EU ETS on the pollution abatement costs of European airlines: An application of Network Environmental Production Function. Transport Policy, 60, 131-142. DOI : 10.1016/j.tranpol.2017.09.013   DOI
14 H. Orth & U. Weidmann. (2015). Quantifying the Effects of Activity Concentration at Airports on Public Transport Using an Iterative Reduction Procedure. Transportation Research Procedia, 102015, 503-513. DOI : 10.1016/j.trpro.2015.09.004
15 A. Graham. (2006). Have the major forces driving leisure airline traffic changed?. Journal of Air Transport Management, 12(1), 14-20. DOI : 10.1016/j.jairtraman.2005.09.002   DOI
16 V. Valdes & D. Gillen. (2018). The consumer welfare effects of slot concentration and reallocation: A study of Mexico City International Airport. Transportation Research Part A: Policy and Practice, 114, 56-269. DOI : 10.1016/j.tra.2018.05.013
17 C. H. Lee & C. W. Hooy. (2012). Determinants of systematic financial risk exposures of airlines in North America, Europe and Asia. Journal of Air Transport Management, 24, 31-35. DOI : 10.1016/j.jairtraman.2012.06.003   DOI
18 G. Lohmann & T. Koo. (2013). The airline business model spectrum. Journal of Air Transport Management, 31, 7-9. DOI : 10.1016/j.jairtraman.2012.10.005   DOI
19 P. Stamolampros & N. Korfiatis. (2019). Airline service quality and economic factors: An ARDL approach on US airlines. Journal of Air Transport Management, 77, 24-31. DOI : 10.1016/j.jairtraman.2019.03.002   DOI
20 Y. Suzuki, J. E. Tyworth & R. A. Novack. (2001). Airline market share and customer service quality: a reference-dependent model. Transportation Research Part A: Policy and Practice, 35(9), 773-788. DOI : 10.1016/S0965-8564(00)00016-1   DOI
21 T. E Notteboom. (1997). Concentration and load centre development in the European container port system. Journal of Transport Geography, 5(2), 99-115. DOI : 10.1016/S0966-6923(96)00072-5   DOI
22 M. V. R. Oliveira & A. V. M. Oliveira. (2018). What drives effective competition in the airline industry? An empirical model of city-pair market concentration. Transport Policy, 63, 165-175. DOI : 10.1016/j.tranpol.2017.12.021   DOI
23 X. Gao, Y. Xianzang, X. You, Y. Dang, G. Chen & X. Wang. (2018). Reachability for airline networks: fast algorithm for shortest path problem with time windows. Theoretical Computer Science, 749(21), 66-79. DOI :10.1016/j.tcs.2018.01.016   DOI
24 M. G. Tsionas, Z. Chen & P. Wanke. (2017). A structural vector autoregressive model of technical efficiency and delays with an application to Chinese airlines. Transportation Research Part A: Policy and Practice, 101, 1-10. DOI : 10.1016/j.tra.2017.05.003   DOI
25 Z. Wang, C. Hofer & M. E. Dresner. (2013). Financial condition, safety investment and accident propensity in the US airline industry: A structural analysis. Transportation Research Part E: Logistics and Transportation Review, 49(1), 24-32. DOI : 10.1016/j.tre.2012.07.001   DOI
26 International Air Transport Association. (2019). Chinese airlines, https://www.iata.org/
27 S. Nenem, A. Graham & N. Dennis. (2020). Airline schedule and network competitiveness: A consumer-centric approach for business travel. Annals of Tourism Research.
28 S. Maertens. (2018). A metric to assess the competitive position of airlines and airline groups in the intra-European air transport market. Research in Transportation Economics, 72, 65-73. DOI : 10.1016/j.retrec.2018.07.018   DOI
29 X. Liu, D. Zhou, P. Zhou & Q. Wang. (2017). Dynamic carbon emission performance of Chinese airlines: A global Malmquist index analysis. Journal of Air Transport Management, 65, 99-109. DOI : 10.1016/j.jairtraman.2017.09.009   DOI
30 Z. Chen, P. Tzeremes & N. G. Tzeremes. (2018). Convergence in the Chinese airline industry : A Malmquist productivity analysis. Journal of Air Transport Management. 73, 77-86. DOI : 10.1016/j.jairtraman.2018.08.010   DOI
31 K. Wang, W. Xia, A. Zhang & Q. Zhang. (2018). Effects of train speed on airline demand and price: Theory and empirical evidence from a natural experiment, Transportation Research Part B : Methodological, 114, 99-130. DOI : 10.1016/j.trb.2018.05.017   DOI
32 Y. H. Chang, C. H. Yeh & P. S. Wu. (2018). Evaluating airline crisis management performance: The cases of flights GE222 and GE235 crash accidents. Journal of Air Transport Management, 70, 62-72. DOI : 10.1016/j.jairtraman.2018.04.017   DOI
33 Z. Chen, P. Tzeremes & N. G. Tzeremes. (2018). Convergence in the Chinese airline industry: A Malmquist productivity analysis. Journal of Air Transport Management, 73, 77-86. DOI : 10.1016/j.jairtraman.2018.08.010   DOI
34 F. Dobruszkes. (2012). The geography of European low-cost airline networks: a contemporary analysis. Journal of Transport Geography, 28, 75-88. DOI: 10.1016/j.jtrangeo.2012.10.012   DOI
35 Y. Wang, Y. Zhou, Mark Hansen & Christopher Chin. (2019). Scheduled block time setting and on-time performance of U.S. and Chinese airlines-A comparative analysis. Transportation Research Part A: Policy and Practice, 130, 825-843. DOI : 10.1016/j.tra.2019.09.043   DOI
36 M. M. Yu, L. H. Chen & H. Chiang. (2017). The effects of alliances and size on airlines' dynamic operational performance. Transportation Research Part A: Policy and Practice, 106, 197-214. DOI : 10.1016/j.tra.2017.09.015   DOI
37 W. Ma, Q. Wang, H. Yang & Y. Zhang. (2019). An analysis of price competition and price wars in Australia's domestic airline market. Transport Policy, 81, 163-172. DOI : 10.1016/j.tranpol.2019.06.008   DOI
38 J. Bowen. (2019). Giants Flying in Different Directions: Budget Airlines in India and China. Low-Cost Carriers in Emerging Countries, 197-230. DOI : 10.1016/B978-0-12-811393-6.00009-5
39 C. K. Chow. (2015). On-time performance, passenger expectations and satisfaction in the Chinese airline industry. Journal of Air Transport Management, 47, 39-47. DOI : 10.1016/j.jairtraman.2015.04.003   DOI
40 H. Yang, F. Dobruszkes, J. Wang, M. Dijst & P. Witte. (2018). Comparing China's urban systems in high-speed railway and airline networks. Journal of Transport Geography, 68, 233-244. DOI : 10.1016/j.jtrangeo.2018.03.015   DOI
41 P. J. Pineda, J. H. Liou, C. Hsu & Y. C. Chuang, (2018). An integrated MCDM model for improving airline operational and financial performance. Journal of Air Transport Management, 68, 103-117. DOI : 10.1016/j.jairtraman.2017.06.003   DOI
42 D. Lee. (2003). Concentration and price trends in the US domestic airline industry: 1990-2000. Journal of Air Transport Management, 9(2), 91-101. DOI : 10.1016/S0969-6997(02)00046-7   DOI
43 M. Ji, C. Yang, Y. Li, Q. Xu & R. He. (2018). The influence of trait mindfulness on incident involvement among Chinese airline pilots: The role of risk perception and flight experience. Journal of Safety Research, 66, 161-168. DOI : 10.1016/j.jsr.2018.07.005   DOI
44 W. T. Chen, K. Huang & M. N. Ardiansyah. (2018). A mathematical programming model for aircraft leasing decisions. Journal of Air Transport Management, 69, 15-25. DOI : 10.1016/j.jairtraman.2018.01.005   DOI
45 H. Yu, Y. Zhang, A. Zhang, K. Wang & Q. Cui.(2019). A comparative study of airline efficiency in China and India: A dynamic network DEA approach. Research in Transportation Economics, 76, 100746. DOI : 10.1016/j.retrec.2019.100746   DOI
46 J. Burton & P. Hanlon. (1994). Airline alliances: cooperating to compete. Journal of Air Transport Management, 1(4), 209-227. DOI : 10.1016/0969-6997(94)90013-2   DOI
47 J. K. Brueckner & P. T. Spiller. (1991). Competition and mergers in airline networks. International. Journal of Industrial Organization, 9(3), 323-342. DOI : 10.1016/0167-7187(91)90015-D   DOI
48 D. E. Pitfield. (2007). The impact on traffic, market shares and concentration of airline alliances on selected European-US routes. Journal of Air Transport Management, 13(4), 192-202. DOI : 10.1016/j.jairtraman.2007.03.002   DOI
49 S. Oliveira, N. Gregory, F. Costa, T. Gibson & M. Costa. (2017). Efficiency of low versus high airline pressure in stunning cattle with a pneumatically powered penetrating captive bolt gun. Meat Science, 130, 64-68. DOI : 10.1016/j.meatsci.2017.04.007   DOI
50 Civil Aviation Administration of China. (2019). Cargo and passenger volumes of airlines, http://www.caac.gov.cn/XXGK/XXGK/