Airline hubs in Southeast Asia: national economic development and nodal accessibility

For developing countries, integration into the international airline industry is an important prerequisite to access global flows of money, goods, people, and information. This research examines how patterns of international air transport accessibility changed in Southeast Asia over the period 1979–1997. Particular attention is given to the competition between the major hubs of the region. The paper argues that national governments have used a variety of tools, including airline industry liberalization and airport development, to shape the development of air transport networks. The results of these strategies are assessed using network analysis.     

Study of the topology and robustness of airline route networks from the complex network approach: a survey and research agenda

Communication via air routes is an important issue in a world organized around a web city network. In this context, the robustness of network infrastructures, e.g. air transport networks, are a central issue in transport geography. Disruption of communication links by intentional causes (e.g., terrorist attack on an airport) or unintentional (e.g., weather inclemency) could be crucial for countries, regions and even the airlines affected themselves. Policymakers and the management of airlines and alliances should be able to reduce the effects of such interruptions in order to ensure good communication through air transport (i.e., maximize the robustness of their network at a reasonable cost). The literature review of the study of air transport route networks through an analysis of complex networks has highlighted a lack of contributions to the study of the topology and the robustness of such networks which contrasts, with advances undertaken for other transport networks or communication systems. This survey suggests areas in which research should be undertaken, based on the existing literature in other areas and from three different perspectives: global route networks, airline alliances, airlines and airports so as to help towards a better understanding of air traffic and, therefore, to be able to assess the potential damage of any airport being inoperative for a continent, country or airline.     

The impact of progressive liberalization on the spatiality of airline networks: a measurement framework based on the assessment of hierarchical differentiation

There seems to be a renewed trade-off between processes of concentration and dispersal in airline networks. This development calls for a framework that allows for a systematic assessment of the overall evolution of the spatiality of airline networks. To this end, we develop an analytical framework based on a set of spatial interaction indices, which allows measuring the degree of hierarchical differentiation (i.e. dominance and connectivity) in a network. Moreover, a normalization of these indices through a systematic comparison with the corresponding values for a rank size distribution makes it possible to engage in meaningful longitudinal analyses and/or to compare the spatiality of networks with different numbers of nodes and/or links. Our framework is tested by applying it to data on air passenger flows within Europe, and its usefulness is discussed in the context of research on air traffic liberalization.     

The spatial and temporal dimensions of the interdependence between the airline industry and the Chinese economy

The airline industry contributes largely to the economic development of a region. At the same time, the fortunes of the industry can also be affected by regional economic change. This paper uses geographically weighted correlation analysis to investigate the spatial heterogeneity and temporal change of this interdependence as seen in China over the years from 2005 to 2016. The results show that the interdependence between the airline industry and provincial economies is non-stationary, generally with a spatial variation along the east-west axis across China's provinces. Further, the temporal change in the interdependence was affected by specific economic changes, such as the global crisis of 2008, when it weakened. Specifically, air passenger activities in the eastern provinces were more sensitive to some economic changes of 2012, while air freight activities in the western and central provinces were more sensitive to the global economic crisis of 2008. The size of urban agglomeration and regional GDP also influence the spatial heterogeneity of this interdependence with weaker links as GDP increases. It is possible that liberalization of the airline industry could enhance the interdependence in advanced regions. Thus, our results provide significant policy implications for a joint focus on the development of the regional economy and the airline industry.     

Air transport demand and economic development in sub-Saharan Africa: Direction of causality

Air transport may be a key tool to advance economic development. However, it is uncertain whether air transport boosts economic development, or vice versa. Both views have theoretical and empirical support. In some countries and regions, air transport is important for initiating development, for example by attracting foreign direct investment or granting access to lifelines. Elsewhere, economic development drives air transport demand. Establishing the direction of causality for regions/countries segmented by income level may inform pragmatic policy. This study analyzes the causal relationship between air transport demand and economic development for six sub-Saharan African countries for the period 1981–2018. Vector error correction and vector autoregression models are employed to identify long- and short-run causalities. The results reveal heterogeneous, context-specific causal relationships. In the long-run, for South Africa, Nigeria and Kenya, the direction of causality runs from economic development to air transport demand; for Ethiopia, causality runs in the opposite direction, with increased demand for air transport promoting economic development; and for Senegal and Angola, the relationship is too weak to infer causal directions. Possible explanations for this heterogeneity include differences in per capita income, low-cost carriers' share of national aviation markets, the presence of large home-based airlines, and comparative geographical advantage as a natural hub.     

An analysis of European low-cost airlines and their networks

The growth of low-cost carriers (LCCs) is currently focused on the Western European market, where they represent the most determining factor in the evolution of airline networks. In this area, they stand for 18% of the total air transport supply according to seats. Limited to short and medium haul flights, networks are not too concentrated (no hubs). They are North–South, and compete with—when they have not replaced—some charter routes. The use of air freedoms beyond the fourth is still limited, but exclusive routes are a frequent phenomenon linked to the option for secondary (urban or regional) airports and/or niches.Finally, low-cost carriers give fresh impetus to point-to-point routes by drawing new networks complementing those of full service network carriers (FSNCs). If no hubs as such can be found in these new networks, significant concentrations characterize the major bases.The geography of low-cost networks is to a large extent the geography of EU air transport liberalization.     

The role of air transport in employment creation and inclusive growth in the Global South: The case of South Africa

This paper investigates the claim that air transport development may be an engine for inclusive economic growth and poverty reduction in developing and emerging countries, using the example of South Africa, a country with high income inequality and rising air traffic volume. A social accounting matrix (SAM) model is adopted to assess the strengths of backward and forward linkages between the air transport sector and the local economy, and a computable general equilibrium (CGE) model is used to estimate the economy-wide impact of air transport expansion in South Africa. The results show that air transport has a significant effect on output, incomes and employment, and that its importance lies in its considerable backward linkage effects. Income and employment effects are found to be unevenly distributed in the economy, the biggest winners being households in the highest expenditure decile, as well as highly skilled labour. It is concluded that unless accompanied by improvements in education and training for low-skilled workers, air transport expansion may lead to a widening of income inequality in South Africa.     

Air transport globalization, liberalization and sustainability: post-2001 policy dynamics in the United States and Europe

Against a context of international crisis in the air transport industry, this paper examines the implications of the ways in which strategies developed by key air transport stakeholders, as well as the contemporary dynamics of the globalized, liberalized market place, impact directly on sustainability issues. More specifically, the paper has two objectives. First, it discusses the policy ramifications of the interrelationships between the concepts of globalization, liberalization, and sustainability within the air transport industry. Second, the paper explores the import of these interrelationships as they interconnect with stakeholder strategies in the differing geopolitical contexts of the US and EU. Particular attention is given to airline network and frequency strategies. The paper concludes that while the financial sustainability of the airline industry is the overwhelming concern today, if this is essentially the short-term crisis that the airline industry claims it to be, the longer-term predictions of air transport growth will again bring environmental sustainability issues to the fore.     

Testing the transport-induced environmental Kuznets curve hypothesis: The role of air and railway transport

The airline and railway industry contribute immensely to economic development, however, its role in environmental pollution requires attention. Here, this study builds on the theoretical pedigree of the environmental Kuznets curve (EKC) hypothesis to explore the contribution of the air and railway transportation sector and urbanization to the emission-growth argument. We utilized annual time-frequency data from 1995 to 2014 for a panel of top 10 air passenger carrier countries using robust panel estimators that control for cross-section dependence. The empirical analysis shows a positive significant relationship between emissions and economic growth, thus, economic growth is emission-embedded with limited green growth. The existence of the EKC phenomenon is affirmed for the investigated blocs — where economic growth is prioritized over environmental quality. Additional, while air transportation drives pollution, railway transportation and urbanization decline emission over the sampled period. The results underscore the need for clean and environmentally friendly energy sources for air sector operations.     

The causal relationship between air transport and economic growth: Empirical evidence from South Asia

This paper examines the causal relationship between air transport and economic growth in the South Asian context. Using panel data over a period of 42 years (1973–2014), we apply Pedroni/Johansen cointegration test methods, followed by Granger long-run and Wald short-run causality tests. To allow for spatial heterogeneity we then apply Time Series Cross Section (TSCS) Granger causality tests for each of the eight analysed countries separately. Our results confirm a long-run uni-directional Granger causality which runs from GDP to air passenger traffic and also to air freight volumes. Contrary to the existing literature we do not find a long-run bi-directional causality which confirms that spatial dimensions and context matter (i.e. low income and large populations). The absence of short-run causality and the identified time lags of 3–4 years should guide aviation firms and policy makers in the preparation of necessary infrastructure required to support the strong air transport growth potential.     

Mapping causalities of airline dynamics in long-haul air transport markets

The introduction of low-cost air transport services to short-haul routes has significantly shaped the structure of this market segment. Recent research investigates and discusses the transferability of the low-cost carrier business model to long-haul routes and identifies respective challenges such as lower cost advantages over the competing full-service network business model. Our paper complements the existing research with a review of airline dynamics in long-haul air transport markets and the subsequent development of a causal loop diagram of the transatlantic air transport market using systems thinking. The objective of this paper is to provide an overview of specific characteristics regarding airline operations in the transatlantic air transport market to investigate the market potential of long-haul low-cost carriers competing with full-service network carriers in this market. We implement these characteristics in a causal loop diagram which comprises the most important elements of and causalities within the long-haul air transport market that affect the development of these elements. These include the generation of transatlantic air transport demand, passenger choice, and airline ticket price and fleet development. The causal loop diagram serves as a framework for qualitative investigation of the market potential of long-haul low-cost services. The paper proves systems thinking to be a feasible approach to map causalities based on knowledge from scientific literature.     

Comparison of major air freight network hubs in the U.S. and China

The increase in global economic connectivity spurred by ties between Chinese manufacturing and a global market, particularly in high value low weight goods, pushed establishment of air cargo networks. These remain under-examined but impactful particularly for second and third tier metropolitan hub cities. This research looks at the air freight connections within China, a major rapidly developing trade center, and use of the aerotropolis concept to accelerate growth in the lagging inland region. References are made to FedEx and UPS networks within their U.S. headquarter region and in China to note differences in political economic contexts and China’s adaptation of developed world models. The theoretical framework includes global production networks strategically coupled by transport logistics linked to aerotropolis type development. Data comes from government aviation and transportation sources, research analyses, corporate and industry reports, and interviews with Chinese officials. Focus falls particularly on Zhengzhou, capital of Henan Province in central China and the country’s first airport-centered economic zone. The conclusion finds that Chinese hub cities more closely correspond to major manufacturing and population centers and central policy directives for development dispersion.     

Where next for low cost airlines? A spatial and temporal comparative study

The purpose of this paper is to analyze the international development of the low cost airline model. The paper examines and seeks to characterize the factors which have encouraged and inhibited the spatial and temporal spread of low cost carriers. A typology of low cost carriers is developed to illustrate the diversity of practices identifiable under the generic low cost banner. The authors of this paper identify stages of development with respect to time and compare the development of low cost operations in different countries of the world. The economic and political impacts of the spread of the low cost model are examined and the sustainability and future patterns of growth considered.     

Clustered airline flight scheduling: Evidence from airline deregulation in Korea

This paper explores the impacts of competition level on airline scheduling in the Korean domestic short-haul routes where a hub-and-spoke system is not the optimal air transport network strategy. The empirical findings using the Korean airline panel data for the period 2006–2010 suggest that competition leads to less differentiated departure flight times as expected from spatial competition theory. Unlike the previous study on the U.S airline industry, the degree of this tendency for less differentiation differs across the type of routes: the Jeju island routes (leisure type) and the inland routes (business type), in the deregulated period. Following the May 2008 Deregulation Act we find an increasingly clustered pattern of airline scheduling in the Jeju island routes where there have been competitive pressures associated with new low cost entrants. This recent evidence would imply that airline carriers strategically schedule departure flight times and allocate flights between routes as competition increases in the deregulated period.     

Assessing equity in transport accessibility to work and study: The Bogotá region

This research was aimed at exploring levels of equity in accessibility to employment and education in the city-region of Bogotá, Colombia's capital city. Building on consolidated methodologies for the assessment of potential accessibility, we estimate accessibility indicators at the zone level, evaluate how potential accessibility varies among income groups, and present evidence related to transport mode, in order to analyze social and spatial inequalities produced by the distribution of accessibility to employment and education activities. The research incorporates a method to evaluate how accessibility varies among zones according to average income and mode of transport in order to produce evidence-based arguments that can inform transport policy in the city-region of Bogotá, and other similar contexts in the Global South. Our results show strong distributional effects of the socio-spatial and economic structure of the city-region, its transport infrastructure and services, and the effect of current transport and land-use policies for citizens of different income groups. The tools and empirical evidence in this research seek to contribute to informed policy development in Latin America and other developing contexts, and feeding current debates on the role of accessibility in addressing social and spatial inequalities stemming from urban mobility.     

Policy issues and planning of UK regional airports

The principal motivation for this paper is to examine the policy issues for UK regional airports within the air transport system with particular reference to airport airline relationships. The geography of airline route networks is considered a key factor that determines location of the pressure for infrastructure development. Regional airports policy is considered in this context. The problems of the resultant concentration of air traffic has largely been ignored up until now and so this paper seeks highlight the issues this presents to policy makers. The paper reviews the changing regional airport ownership patterns and examines a range of implications. It then explores the policy implications for the future regulation and development of the air transport system. The authors contend that regulation and the planning system are the only two remaining policy levers for government to guide privately owned airlines, privately owned airports and commercialised airports towards national policy goals.     

Exploring causality in trade and air passenger travel relationships: the case of Asia-Pacific, 1980–2010

This paper explores the potential of heterogeneous Granger analysis in transport geography research by applying this method to a specific case of the often complex and potentially reciprocal linkages between the deployment of transport infrastructures and spatial economic development: the linkages between rising intra-regional volumes of trade and air passenger traffic in Asia-Pacific. Although conceptual and empirical linkages between both indicators can be assumed based on previous research, relatively little is known about the actual causality. Using heterogeneous Time Series Cross Section Granger causality analysis for the period 1980–2010, we explore the presence of four ‘causality scenarios’ amongst different country-pairs: (1) there is no co-evolution, implying that both patterns develop independently (e.g. Japan–Australia); (2) there is ‘real’ co-evolution in that both patterns influence each other through feedback loops (e.g. South Korea–Philippines); (3) air passenger traffic is facilitated by trade (e.g., South Korea–Philippines); or (4) trade is facilitated by air passenger traffic (e.g. Australia–Malaysia). Some tentative interpretations of this heterogeneity are offered.     

A comparative analysis of the application and use of public service obligations in air transport within the EU

The paper seeks to compare and contrast how different European Economic Area member states have adopted and made use of the public service obligation (PSO) mechanism in air transport. Analysis shows that there is considerable variation in the extent and way in which various countries have adopted the PSO mechanism. Some countries, such as France, the Irish Republic and Norway, have made extensive use of PSOs on their domestic scheduled air services networks. This is in contrast to the approach adopted in the United Kingdom, where a number of lifeline air services are vulnerable to potentially adverse airline pricing and output decisions. This suggests that there are major inconsistencies in the approach and commitment to social air services provision across the European Union which may undermine broader policy initiatives designed to enhance mobility and accessibility.     

Analysing transport corridor policies: An integrative approach to spatial and social disparities in India

Although strategies to create transport corridor are prevalent in the global South, there is a lack of empirical research to evaluate these initiatives, in particular whether they have realised their general goal of reducing regional disparities. The current paper describes a multi-method approach involving spatial and non-spatial analysis to investigate spatial disparity along a proposed corridor and examine its integration within the existing settlement structure. The analytical framework is tested on India’s Delhi-Mumbai Industrial Corridor. A rationale is developed to enable a critical view of corridor policies as strategies for development in the global South.One important finding regarding policies on transport corridors is the risk that future growth will remain concentrated in districts directly linked to a proposed corridor, leaving peripheral areas marginalised. An integrative analysis of current spatial and social disparities in India shows growth to be high in areas with good accessibility between urban and rural areas. Specifically, growth in rural areas is fostered by the availability of good road network, and polytechnic and vocational institutions, whereas in urban areas, growth is positively associated with the provision of secondary schools. In order to prevent or even reduce disparities, this research recommends that spatial strategies be developed with mechanisms to enable their implementation by lower tiers of governments, that spatial plans and infrastructure outlays be reformed to improve accessibility between proposed corridors and peripheral areas, and that accessibility indicators be included in the design and implementation of transport development policies.     

China’s airline consolidation and its effects on domestic airline networks and competition

Air transportation in China has experienced tremendous growth and major reforms in the past three decades. While there is a large literature on airline liberalization, publications about China are limited. As China transforms from a centrally planned economy to a market economy, how closely has China followed the practice of liberalizing the airline industry seen in other countries around the world? This paper offers a review of air transportation development in China and compares China’s approach with other countries. In particular, this study examines the impact of the government-led airline consolidation of 2002 upon domestic network structure and competition.