Liberalization of China–US air transport market: Assessing the impacts of the 2004 and 2007 protocols

This paper examines China's considerations in reaching the 2004 and 2007 Air Service Agreement Protocols with the United States (US) and the impacts of such policy on the China–US market from the perspective of China. Analysis shows that the 2004 and 2007 protocols have profound impacts on the China–US market. The two protocols have been associated with phenomenal traffic growth and intensified competition. Passengers also benefit from much more choice in terms of both airlines and routing. Over time, Chinese carriers' operating performance and financial performance have gradually improved after the liberalization expressed in the protocols. However, the industry's hub-building initiatives are still seriously challenged by competing hubs in Seoul and Tokyo which have diverted substantial number of passengers moving between the China and US markets. Such issues have to be addressed in order to create a win–win outcome for both countries.     

The jobs–housing relationship and commuting in Beijing,China: the legacy of Danwei

China’s market-oriented reform has not only revitalized the economy but also changed the physical structure of Chinese cities, which used to be largely determined by the socialist Danwei (or work unit) system. In order to understand the impacts of the reform and the influence of Danwei on jobs–housing relationships and commuting behavior, this study investigates whether there are differences in commuting behavior between individuals who live in houses provided by Danwei and those who reside in houses from private market sources in urban China. We apply the structural equations model to investigate the interactions between housing source (from Danwei or not), jobs–housing relationship, transport mode and commuting time in Beijing, the capital city of China. The results show that Danwei housing commuters have shorter commuting trips and higher usage of non-motorized transport mode than those who live in houses from the market sources. This finding implies that the diminishing influence of the traditional Danwei system and the market-oriented reform in urban development may have changed the jobs–housing balance and increased travel demand in Chinese cities.     

Air deregulation in China and its impact on airline competition 1994–2012

China’s air transportation has experienced rapid growth and major reforms in the past three decades, some of which have been partially successful and are still ongoing today. The paper aims to analyze China’s air deregulation experience over the last two decades and its impact on airline competition from a geographical perspective. After the establishment of the “Big Three” in 2002, the paper reveals that there has been a trade-off between the extent of deregulation and airline competition in China because the central government has tended to strengthen the “Big Three” rather than totally open the market to private and locally owned airlines. The paper uses each airline group as the basic unit of analysis and reveals that (1) the air market has been more concentrated in the “Big Three” as a result of the process of air deregulation; (2) airline competition in over two thirds of the airports and one half of the routes has increased in the last 18 years, but the core airports and trunk routes are chiefly dominated by the “Big Three”. The peripheral airports and thin routes have been operated by private and locally owned airlines; and (3) regionally, airline competition has occurred in most airports of the eastern region, and it is more intense than in the central and western regions. But even here, competition in the eastern region has however decreased in 1994–2012. The three main contributions of the paper are: (1) the use of two measures of competition in the airline market; (2) the analysis of the historical evolution of competition; and (3) an understanding the role of the geography of competition in the Chinese airline market.     

Impacts of the Air France–KLM merger for airlines,airports and air transport users

Excess capacity and low returns have led to consolidation and mergers in the airline market. The joining of KLM and Air France within the SkyTeam alliance has been the most dramatic of these events. This paper looks at the probable effects of the merger on the various players that are immediately affected; airports, airlines and travelers. It does this using the AIR Transport Network COmpetition Model. The analysis finds, in particular, that fears that Schiphol may lose out as a result of the merger may be exaggerated, especially when high-speed rail is added to the mix of modes considered.     

Transport,urban development and the peripheral poor in Colombia — Placing splintering urbanism in the context of transport networks

In rapidly growing cities the evolution of utility and communication infrastructures has enabled the creation of ‘premium networked spaces’ exclusively for wealthier groups thus deepening already large social inequalities. By the same token, in a context of spatially concentrated income-earning opportunities and other urban functions, as well as limited purchasing power, accessibility to adequate means of connectivity with the rest of the urban fabric can be a determining factor in overcoming conditions of poverty for residents in physically marginal areas.Within the framework of the splintering urbanism thesis, and using the case study of Soacha, a municipality adjacent to Bogotá, Colombia's capital city, we examine the apparent mismatch between the growth of low-income informal settlements in peripheral locations and the development of transport networks in the period 2000–2010. Our aim is to identify the effects on social and spatial marginalisation of an uneven provision of material infrastructures and services for mobility. We identify central elements in the structure of the networks of connectivity between Bogotá and Soacha, highlighting the main gaps that lead to a fragmented set of connections. We develop a set of criteria for planners and policy makers searching for a more informed analysis of transport supply and policy development practice for poor peripheral populations in similar regions and contexts.     

Path dependence in urban transport: An institutional analysis of urban passenger transport in Melbourne,Australia, 1956–2006

In order to deepen understanding of path dependence in urban transport, this article presents a case study of urban passenger transport institutions in Melbourne, Australia over 50 years. The institutional capacity of the roads and public transport sectors are explored separately and the trends are then compared and contrasted. The main components of the analysis are: structural changes to the organisations, participation on planning committees, access to financial resources, accountability frameworks, membership of forums and relationships with other actors. The conclusion is that, whilst the historical picture is complex, the trend is a strengthening of road planning institutions, and weakening public transport planning. This situation appears to be out of alignment with current needs.     

Evaluating transport user benefits and social surplus in a transport market—The case of the Norwegian ferries

The article first infers how consumer surplus in a market is linked to revenue under different assumptions about fare elasticity and when using different types of demand functions. This information is added to producer surplus in order to derive social surplus. The method, thus, produces a simple approach for authorities to assess social surplus in a market and its benefits to the users. A modified exponential demand function is applied to calculate consumer surplus and social surplus for 97 ferry services in Norway regulated by the state. The calculations are based on empirical data concerning ferry fare, revenue data at service level and reasonable assumptions about fare point elasticity for services covering different distances.In 2007, these services generated welfare for the users (consumer surplus) and the society (social surplus) amounting to about 5.8 billion NOK and 4.3 billion NOK, respectively. Consumer surplus and social surplus varied considerably amongst the services. Only 3 of the 97 services operate with positive profits and, hence, without subsidies. About 21 of the services contribute negatively to social surplus. Many of these unprofitable services are the only transport alternatives in rural areas and could be argued to continue operation according to politically decided regional measures. Implicitly, maintaining all these 21 services means that the welfare for the people in these areas is valued as up to four times greater than the welfare of the people in the rest of society.     

How air transport connects the world – A new metric of air connectivity and its evolution between 1990 and 2012

To understand as to how scheduled air services link a region to other markets, we develop connectivity and hub centrality metrics. These metrics measure the quality of all scheduled air services in terms of frequency, detours, layover time and destination quality using a valuation scale being derived from observed passenger behavior. By computing yearly scores for 1990 to 2012, we analyze the geography of and trends in worldwide connectivity and hub centrality. While we observe significant growth of aggregate connectivity, the trends are heterogeneous with regard to the type of connectivity as well as time and location.     

Seamless,accessible travel: users’ views of the public transport journey and interchange

Emphasis on the need to reduce the deterrence effects and costs associated with interchange, so that increasingly seamless public transport journeys can be provided, is now a key policy goal. This paper reports the findings from a series of focus groups and in-depth interviews of both public transport users and car users that were undertaken for a Scottish Executive funded study on interchange and travel choice. It explores how interchange is perceived and how this perception deters public transport use amongst car users or limits public transport use amongst public transport users. The paper also provides insights into lifestyles, the decision-making processes and types of considerations that are made at key stages in the journeys of both car users and public transport passengers.     

Aviation and the environment in the context of the EU–US Open Skies agreement

We examine the impacts of the EU–US Open Skies agreement on the environment on emissions from the aviation sector. We use the Hamburg Tourism Model of domestic and international tourist numbers and flows, to estimate these impacts. The Open Aviation Area will result in increased competition between carriers and falls in the cost of transatlantic flights. This will not only have implications for the size and structure of the industry but also for climate policy. The paper assesses what effects the expected increases in passenger numbers will have on CO₂ emissions and tests whether this increase in travel will result in a corresponding rise in emissions. Simulations show that passenger numbers arriving from the US to the EU will increase by between 1% and 14% depending on the magnitude of the price reductions because of substitution between destinations, the percentage increase in global emissions is much smaller (max. 1%) than the increase in cross-Atlantic traffic.     

Small is beautiful? The impact of economic crisis,low cost carriers,and size on efficiency in Spanish airports (2009–2011)

This paper carries out a comparative technical efficiency analysis of 35 Spanish airports using panel data for 2009–2011 with a data envelopment analysis (DEA) methodology. The results suggest that airport size has a positive impact on the technical and scale efficiency and that the presence of low cost carriers has positively affected the scale efficiency of the airports where they operate. The results also show that during the present economic crisis Spanish airports have experienced a dramatic productivity regress which is due to the reduction of their technological change component.     

How thick is the border: the relative cost of Canadian domestic and cross-border truck-borne trade, 2004–2009

Despite the elimination of tariff barriers between Canada and the United States, the volume of trade between the two countries is less than would be expected in the absence of impediments. While considerable work has been done to gauge the degree of integration between the Canadian and U.S. economies through trade, relatively little analysis has parsed out the underlying costs of the border. The costs of crossing the border can be divided into formal tariff barriers, non-tariff barriers, and the cost of the transport system. This paper focuses on the latter by estimating the cost of shipping goods by truck between Canada and the U.S. during the 2004–2009 period. The incremental cost of import and export over domestic shipments is measured in both absolute and ad valorem terms. The latter provides an estimate of the border increment in transportation cost as a tariff equivalent. The incremental cost is further broken down into fixed and variable (line-haul) components. Higher fixed costs are consistent with border delays and border compliance costs being passed on to the consumers of trucking services. Higher line-haul costs may result from difficulties obtaining backhauls for a portion of the trip home, which may stem from trade imbalances and regulations that restrict the ability of Canadian-based carriers to transport goods between two points in the U.S.     

An economic–geographic assessment of the potential for a new air transport hub in post-Gaddafi Libya

Post-war Libya is faced with the challenge of adopting an air transport strategy for the future. One issue is how to address projects inaugurated under the Gaddafi government, such as the terminal extension at Tripoli International Airport. Additionally, the state-owned Afriqiyah Airlines had been establishing a niche hub in Tripoli before the 2011 war, but this development has subsequently been stalled.Against this background, we analyse the prospects of an air transport hub operation in Libya, focusing on traffic between Africa and Europe, from a bird’s-eye economic–geographic view. First, a literature review is undertaken to identify general success factors for air transport hubs. Second, a weighted average distance penalty (WADP) indicator is developed and applied to Tripoli as a potential hub location. This indicator considers all 4755 O&Ds between Europe and Africa with more than 100 passengers in 2012. For sensitivity reasons, alternative WADPs are estimated for the 3209 traffic flows not including North Africa and for (forecasted) future air traffic demand in 2020. The results for Tripoli International Airport are benchmarked against competing hub locations, such as Algiers, Cairo, and the major European airports. We conclude by discussing the implications of the current and anticipated future security and economic situation in the country.     

Citizen participation for sustainable transport: the case of “Living City” in Santiago,Chile (1997–2012)

Twentieth century citizen “revolts” against urban highway projects have influenced thinking about public transport (Toronto, Vancouver, New York), governance (Portland), and cycling (The Netherlands) to this day. Less is known, however, about how these emerge in developing countries, and what they can tell us about citizens’ role in innovation to achieve more sustainable transport systems. This case study examines a social movement that emerged in opposition to the country’s first major highway concession, in Santiago, Chile (1997), challenging and changing urban planning paradigms. In 2000, the anti-highway campaign founded a citizen institution, Living City (Ciudad Viva). Twelve years later, it has become a prize-winning, citizen-led planning institution.Although the role of citizen participation in improving transport systems has become increasingly recognized in recent years, it still tends to be rather ritualistic. This experience offers insight into how strategic approaches to participation can reinforce the role of self-organizing civil society organizations in introducing innovation into existing systems. Findings suggest that traditional large movements, which are mainly useful for one-way communication of information, require support from small groups able to deliberate in a transformative sense, with more attention paid to how new consensuses can be transmitted through the relational networks of those involved. Moreover, this experience suggests that thinking about citizens as planners in their own right, rather than as mere participants at specific points in a planning process, opens the way to more effective strategies for innovating in transport, to address the social, environmental, and other challenges humanity faces today.     

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.     

Mega-event transport legacy in a developing country: The case of Rio 2016 Olympic Games and its Transolímpica BRT corridor

The Rio de Janeiro government, in order to prepare the city for the 2016 Olympic Games, implemented four new BRT lines (Bus Rapid Transit). One of these is the “BRT Transolímpica”, which would mainly serve the mega-event by connecting two Olympic venues, but which was justified as the integration between the northern and southern regions of the city. In this paper, the Transolímpica transport legacy, regarding urban development, was analysed to verify the influence of this BRT line on the development of its surroundings. The three-step methodology comprised a study of the surroundings of BRT stations through analyses of physical dynamics, real-estate dynamics, and relational analysis (the contextualisation of the results within the local context). The analyses cover five phases of the BRT implementation associated with the 2016 Olympic Games: candidature (2008–2010); planning and design (2010−2012); implementation, subdivided into two periods (2012–2014 and 2014–2016); and operation (2016–2018). We found that this BRT line: i) was not relevant to the occupation of the surroundings; ii) ended up accentuating the segmentation of the territory along the corridor; and iii) has been consolidating an ambiguous transport legacy in terms of urban development.     

Efficiency of logistics land use: The case of Yangtze River Economic Belt in China, 2000–2017

Based on panel data for 113 municipal cities between 2000 and 2017, we examined the spatial-temporal patterns of the output efficiency of logistics land use and its possible determinant factors in the Yangtze River Economic Belt (YEB) of China. The stochastic frontier analysis revealed that the average annual value of logistics land use efficiency (LLUE) in the YEB increased from 0.547 in 2000 to 0.655 in 2017. The Tobit model revealed that all the explanatory variables had positive and significant relationship with the LLUE, with the exception of the tertiary sector and informatization. Importantly, Tobit models of three sub-samples revealed various development stages in the logistics industry across space: downstream cities may reach the plateau of LLUE through organic growth, while an increase in the land supply for logistics use could still be associated with an improvement of the LLUE of a logistics industry located upstream. Finally, we deduced that the inflection point of LLUE for organic growth in logistics land use in the YEB could be between 0.59 and 0.69 during the study period (or between 0.64 and 0.73 in 2017). It is inefficient for urban planners to increase land zoning for logistics use to pass the point of positive marginal return to the economy.     

Analyzing the spatial–temporal evolution of a gateway’s hinterland: A case study of Shanghai,China

This paper analyzes the spatial–temporal evolution of the attractiveness of a country’s gateway for its international trade, using Shanghai as an example. The attractiveness is regressed on the transportation facilities and geographical conditions. Seaport development is found to have a major positive impact, followed by inland waterway, highway, and airport development. These positive impacts decrease with the need for highway haulage and with the distance from Shanghai—showing an inverse U-shape distribution. Rail appears to have a U-shape distribution, implying a low application of multimodal transportation. A geographical pattern for the impacts of different transportation modes is delineated.     

Tourism,changing architectural styles,and the production of place in Itacaré, Bahia,Brazil

This article examines changing architecture in Itacaré, Brazil, as it transitions from a fishing village to an international tourist destination. Tourism, as an assemblage of practices and perspectives, recreates places in specific ways that structure social and environmental relationships. Through an examination of historical architectural styles, tourist architecture, and popular architecture in Itacaré, this article analyses the ways a tourist economy has physically and socially rebuilt the city. Socially, the changing architecture marks and creates differences between class, racial, and regional identities while also providing an idiom through which public conversations about these changing economic systems and demographics are articulated. At the same time, the expansion of the city has led to racial-, regional-, and class-based segregation. Environmentally, tourist architecture creates new relationships to nature through re-imagining Itacaré’s position in relation to other rural and urban places and a new emphasis on the aesthetic value of nature.     

An innovative transit system and its impact on low income users: the case of the Metrocable in Medellín

The Metrocable in Medellín, Colombia, is an innovative system to improve access to deprived areas located in hilly zones. The idea to use cable cars as feeders to the metro was integrated into an ambitious urban project that, to date, has improved accessibility dramatically for some low-income residents. Using data before and after the project’s implementation, we evaluate the impact on social equity for the population in the zone of influence, considering changes in accessibility to employment and in housing-related costs. The access provided by the project to the main high-employment centres has doubled the number of opportunities that can be reached by the “target population,” even though travel-time savings and costs have seen only small changes. In fact, prior access to the CBD was poor and expensive, but time and costs were reduced with the Metrocable, although this reduction was not equal for all locations in the metropolitan area. In general, we argue that the main benefits, in terms of accessibility that differentiates the areas analysed from those used for comparison, are related to a localised ease of access to specific centres of activity according to the centralised development of the city’s job market along the mass transit lines. In terms of housing costs, we developed a set of difference-in-difference models that considered rent, transport, and public utilities costs; however, none of them have allowed us to conclude that there was a statistically valid relationship between the Metrocable and the changes in costs between the two analysed populations.