Airline network choice and market coverage under high-speed rail competition

Jiang, Changmin; Zhang, Anming

doi:10.1016/j.tra.2016.06.008

Cited by 66 publications

(32 citation statements)

References 19 publications

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“…For secondary hubs and regional airports, the major benefit of air-HSR cooperation is to capture the spillover effects of primary hubs and to expand catchment areas. This echoes with the theoretical prediction of Jiang and Zhang (2016) that the development of HSR networks would reform airlines' network from the fully-connected to the hub-and-spoke structure. With air-HSR integration at hubs, HSR can provide feeding services for hubs while might compete with air mode for non-hubs.…”

Section: Summary and Results Interpretationsupporting

confidence: 67%

Quantifying the substitutability and complementarity between high-speed rail and air transport

Zhang

Graham

Wong

2018

Transportation Research Part A: Policy and Practice

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This paper quantifies the substitution and complementary effects of high-speed rail (HSR) on air travel demand in terms of both route traffic and airport enplanement. Employing the difference-in-differences (DID) method, the first part of the analysis measures the effect of new HSR routes on parallel air route traffic with a focus on East Asian regions (Mainland China, Japan, South Korea, and Taiwan). The second part examines the effect of air-HSR integration on passenger enplanement at East Asian airports and compares with that in the Central European market. We find that in general the airport's access cost (reflected by the distance from central city) has a negative impact on the air traffic. The substitution effects of HSR are the most significant on short-and medium-haul (below 1000km) air routes while introducing HSR services has encouraged long distance (over 1000km) air travels in Mainland China. The complementary effect is investigated in the context of air-HSR integration, which has significantly positive impacts on airport enplanement at primary hub airports when fitted with on-site HSR links. The benefit is limited at secondary hubs and regional airports possibly by locations and HSR service frequencies.

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Section: Summary and Results Interpretationsupporting

confidence: 67%

Quantifying the substitutability and complementarity between high-speed rail and air transport

Zhang

Graham

Wong

2018

Transportation Research Part A: Policy and Practice

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“…For example, Fu et al (2012), studied from an aggregate perspective of HSR and air, whereas Yang and Zhang (2012). Jiang and Zhang (2016) and Xia and Zhang (2016) used methodological perspectives that focused upon the socioeconomic outcomes of HSR and air competition as seen in traffic volumes, price, profits and welfare changes. In addition, some investigations were also conducted from a modal integration perspective using stated preference survey data with an objective to identify the market potential of the air and HSR integration in China (Li and Sheng, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Impacts of high-speed rail on domestic air transportation in China

Chen¹

2017

Journal of Transport Geography

123

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A B S T R A C TThis study investigates the impacts of high-speed rail (HSR) on domestic air transportation in China using a new comprehensive modeling framework utilizing both demand and supply perspectives. For the first time the assessment was conducted using an improved panel regression model by taking into account of the detailed opening schedules of various HSR services during the period 2001-2014. The research findings reveal that the deployed HSR services have a significant substitutional effect on domestic air transportation in China, but the effect varies across different HSR routes, travel distance and city type. Specifically, the research found a decrease in domestic passengers of 28.2%, in flights of 24.6% and in seat capacity of 27.9% after the introduction of HSR services. The impacts are found much stronger among those air routes that connect major hub within a distance range of 500 to 800 km. The uneven nature of the impact can be seen in the different experiences of selected cities. For example, air travel declined approximately 45% after commencement of the Wuhan-Guangzhou HSR, whereas it fell by 34% after the opening of the Beijing-Shanghai HSR.http://dx.

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“…When there is a direct flight service in the AB market, the network structure is called a ''fully connected'' (point-to-point) network. Recently, Jiang and Zhang[19] showed theoretically that HSR entry would affect airlines' network structure such that they move from a point-to-point to a hub-spoke network. Their results provide a rationale for our model set-up using a hub-spoke structure.…”

mentioning

confidence: 99%

Analysis of high-speed rail and airline transport cooperation in presence of non-purchase option

Sato

Chen

2018

J. Mod. Transport.

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We study cooperation between the airline and high-speed rail (HSR) sectors by formulating their joint profit as a maximization problem using a multinomial logit choice model in a three-node setting. We allow the nonpurchase option as an outside option available to consumers. The demand for each choice is not only a function of the price but also the service quality, such as the total trip time, frequency of service, and ease of connecting from the hub to a nearby HSR station. As a result, the following findings are presented. First, regardless of the service quality of either sector and the non-purchase option, cooperation decreases the total volume of the domestic market of a country. Second, when the attractiveness of the outside option is high, the HSR and air sectors can prevent a large reduction in the total volume by cooperation in the connecting market. However, this is not the case in the domestic market. Third, if the non-purchase quality in the domestic market is high, then cooperation increases the social welfare of the whole market. If the non-purchase quality is low, then cooperation increases the welfare of the whole market only in cases where the number of potential customers in the connecting market is relatively large. We also show the effect of improving air-rail service quality on each market share and on the total profit.

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Airline network choice and market coverage under high-speed rail competition

Cited by 66 publications

References 19 publications

Quantifying the substitutability and complementarity between high-speed rail and air transport

Quantifying the substitutability and complementarity between high-speed rail and air transport

Impacts of high-speed rail on domestic air transportation in China

Analysis of high-speed rail and airline transport cooperation in presence of non-purchase option

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