Airline Performance in China and India: What Drive Airline Efficiency and Pricing

35 Pages Posted: 5 Mar 2017 Last revised: 24 Mar 2017

Kun Wang

University of British Columbia, Sauder School of Business, Students

Anming Zhang

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

Yahua Zhang

University of Southern Queensland

Date Written: February 27, 2017

Abstract

China and India’s air transport sector exhibits substantial differences 30 years after deregulation. The strong presence of private and low-cost carriers and the intense route-level competition are the key drivers for an overall better performance for Indian carriers measured by technical efficiency. The low-cost carrier has the effect of reducing the air fare and promoting the demand in India. However, in China, the entry of a low-cost carrier has not had such effects. We also found that airport concentration in India could lead to cost savings and thus lower air fare, but this did not occur in China.

Keywords: China, India, technical efficiency, airline pricing, private airlines, low-cost carriers

Suggested Citation

Wang, Kun and Zhang, Anming and Zhang, Yahua, Airline Performance in China and India: What Drive Airline Efficiency and Pricing (February 27, 2017). Available at SSRN: https://ssrn.com/abstract=2927344 or http://dx.doi.org/10.2139/ssrn.2927344

Kun Wang

University of British Columbia, Sauder School of Business, Students ( email )

Vancouver
Canada

Anming Zhang

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

2053 Main Mall
Vancouver, BC V6T 1Z2
Canada

Yahua Zhang (Contact Author)

University of Southern Queensland ( email )

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

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