01151267

Component

Taiwan-Hong Kong is one of the busiest routes in the world. The main reason is that direct cross-strait flights are not permitted between Taiwan and Mainland China. Passengers who travel between the two places always transit via Hong Kong or Macau. Direct cross-strait flights, currently in a high demand market, are under consideration for approval, and will likely become a strong battleground for low cost carriers (LCCs). This paper analyzes the possible effects of allowing LCCs to make the direct cross-strait flights. The results show that Taipei- Shanghai Pudong route has the highest total cost savings; with US$188.7 million cost saving per year. The total cost saving of LCCs is obtained by multiplying the cost savings per passenger by the passenger demand of LCCs at each airport. The total cost savings produced by direct LCC flights on the selected eleven routes is US $785 million annually. As there is no comprehensive research about direct flights between Taiwan and China thus far, this study will provide a point of reference for the time when direct cross-strait flights are allowed, as projected, in the near future.

01147878

10-1674

English

22p

2010

Transportation Research Board 89th Annual Meeting

DVD

Figures; Maps; References (12) ; Tables (8)

Air transportation; Air transportation policy; Air travel; Aviation; Competition; Low cost carriers

Direct flights

China; Taiwan

Aviation; Planning and Forecasting; Policy; I72: Traffic and Transport Planning

Transportation Research Board Annual Meeting 2010 Paper #10-1674

TRIS, TRB

Jan 25 2010 10:45AM