• Korea Trade Review
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• v.44 no.1
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• pp.159-175
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• 2019

In China, the government has aggressively led the construction and expansion of airports across China. Upon this opportunity, "Korea-China" network is expected to expand. Therefore this study tried to deduce implications for Incheon International Airport by expansion of "Korea-China" traffic rights. As a result of analyzing the exchange values of traffic rights on the "Incheon~Beijing/Chengdu" routes, it was found that there is a concern that Chinese airlines could make inroads into Korean airline's market. In both routes, Korean airline's market share and passenger demand increased while the sales decreased after expanding traffic rights. On the other hand, Chinese airlines showed an increase in sales and a larger passenger growth than Korean airlines. Therefore it is necessary for the government to expand the traffic rights through detailed route value analysis.