Air Transport Development: A Comparative Analysis of China and India

Posted: 16 Dec 2016

See all articles by Yahua Zhang

Yahua Zhang

University of Southern Queensland

Anming Zhang

University of British Columbia (UBC) - Sauder School of Business

Date Written: July 15, 2016

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 paper offers the first such comparative study, with a focus on the efficiency and productivity 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 contract, Indian private airlines, especially the low-cost carriers, have enjoyed more freedom and received support from a comprehensive air liberalization program.

Suggested Citation

Zhang, Yahua and Zhang, Anming, Air Transport Development: A Comparative Analysis of China and India (July 15, 2016). Available at SSRN: https://ssrn.com/abstract=2886163 or http://dx.doi.org/10.2139/ssrn.2886163

Yahua Zhang (Contact Author)

University of Southern Queensland ( email )

P.O.Box 238 Darling Heights
Toowoomba, Queensland 4350
Australia

Anming Zhang

University of British Columbia (UBC) - Sauder School of Business ( email )

2053 Main Mall
Vancouver, BC V6T 1Z2
Canada

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