Maintaining competitiveness of aviation hub: Empirical evidence of visitors to China via Hong Kong by air transport

Prior studies have not extensively researched and explored the key determinants (aviation and tourism attributes) that could affect Hong Kong’s competitiveness as a transit hub for international visitors using Hong Kong as a stopover to Chinese cities when travelling by air. This study adds to that knowledge to empirically investigate Hong Kong’s eight major tourist source markets (Germany, India, Japan, Singapore, South Korea, Taiwan, the UK, and the US), and also provides an insight to policy-makers in Hong Kong to help them understand the factors that influence Hong Kong’s aviation hub competitiveness and tourism development. The findings of the study suggest that increased air transport capacity from foreign countries and Hong Kong to China, trade volumes between China and its trading partners, air transport costs, and the global financial crisis are the key factors affecting the number of visitors to China by air passing through Hong Kong as their preferred stopover. The policy implications of the findings are discussed.     

The opening of direct flights across the Taiwan Strait: the impact on the global role of Taiwan’s international airport

Scheduled direct flights between Taiwan and Mainland China were halted for six decades and restarted in December 2008. The Taiwan’s government has a policy of developing Taoyuan International Airport (TPE), the major international airport in Taiwan, as one of main hubs in East Asia, based on the airport’s access to Mainland China. To assess whether the airport is progressing toward meeting the set expectation, this study evaluates the changes in airline networks of the TPE after the opening of direct flights across the Taiwan Strait. The time-dependent earliest arrival time algorithm is applied to global flights in 2004, 2008, and 2012. Empirical evidence demonstrates that providing direct flights across the Taiwan Strait has significantly increased accessibility from TPE to airports in China, but did not improve the centrality of TPE. Additionally, the transfer dependency of TPE on other airports is increasing significantly. This result was based on two major reasons: the first involves the Chinese government’s refusal to allow Chinese citizens to use airports in Taiwan as transfer points to and from other countries and the second reflects the competitiveness among airports and airlines in the region. The key finding is that political exclusion of airline use by external governments via travel regulations adversely influences the development of an airport as a global hub.     

Shaping urban transport policies in China: Will copying foreign policies work?

After decades of rapid economic growth, Chinese cities now face serious urban transport challenges, such as congestion, air pollution, energy shortage, and global climate change. Efficient and equitable urban transport policies are essential to China’s sustainable development, in which urbanization plays a critical role. Can Chinese cities solve these challenges by copying or modeling the policies of other nations? This paper argues that understanding the unique contexts of Chinese cities is necessary for predicting whether policies implemented elsewhere will perform well in China. The study explores four examples of hotly contested urban transport policies. The previous experience of each policy is compared with its likely efficiency and distributional consequences in China. Specific attention is paid to how the policy context – the spatial and institutional characteristics of the Chinese cities – can affect the adoption of foreign urban transport policies in China. Suggestions regarding the four policies are proposed to policy makers, followed by conclusions and discussions.     

Inter-urban competition and air transport in the deregulated era: The Nashville case

American cities are acting in a competitive environment as a result of forces like economic restructuring, capital mobility, and state devolution. Since the late 1970s, the federal government has dismantled the spatial boundaries of investment through the deregulation of several important sectors of the economy, including the airline industry. Transportation geographers have investigated how deregulation allowed airlines to develop a hub-and-spoke system. However, post-deregulation airline development has yet to be approached from the perspective of urban entrepreneurialism. Another layer of inter-urban competition has been added through new geographical patterns of airline investment, and capturing hub status through airport development may be especially valuable for mid-size cities. Most large cities have hub status, while small cities have no realistic chance of becoming major players in the air transportation network, thus making the hub an opportunity for mid-size cities. A case study of Nashville, Tennessee illuminates the strong local emphasis on airport expansion in the deregulated environment. Local business and government have been active and innovative, although not always successful, in policies that improve Nashville’s accessibility and position in the urban hierarchy.     

Strategic policies and demonstration program of electric vehicle in China

Recent Chinese economic and energy policies recognize the transportation sector as a key element in the nation's effort to meet its energy and air quality goals. The development of alternative fuel vehicle (AFV) has been considered as a particularly promising strategy. AFV-related policies can be traced back to the eighth Five-Year Plan period (i.e., 1991-1995). All the work during the last twenty years has cumulatively prompted the transition of AFV development from policy-making to actual implementation and from research and development (R&D) to mass production. The year of 2009 is significant for the AFV industry in China in that the central government announced the “Plan on Shaping and Revitalizing the Auto Industry”. This Plan launched a demonstration program of electric vehicle (EV) deployment in 13 Chinese cities and set the national goal of manufacturing 0.5 million AFVs in three years. To better understand the current status, problems and uncertainties existed in the EV deployment in China, this paper reviewed the relevant policies and reported a survey with the pilot cities during the summer of 2009. Based on the survey findings, this paper developed a number of recommendations to help address the issues found in the demonstration program to date.     

The spatial distribution of employment around major Chinese airports

This paper examines the spatial distribution of employment around major Chinese airports. While the impacts of airports on employment have been debated within the European and North American contexts, airport-related urban development in China has been less well studied. Such an analysis is also timely given rapid urban and airport development in Chinese cities. Focusing on fifty-nine major airports in mainland China, employment centers are identified using gridded enterprise registration information. Our analysis suggests that there are few airports with nearby employment centers. However, planned airport economic zones (AEZs) with stronger policy support, longer periods of development, and located in major cities are more likely to have employment clusters. Furthermore, employment centers that do exist near airports are more likely specialize in manufacturing, transportation and logistics, and wholesale and retail trade rather than in financial and business services.     

The development of the Gulf region’s air transport networks – The first century

This paper employs the concepts of centrality, intermediacy and proximity to explain the evolution of air transport networks in Asia and applies them to the region surrounding the Arabian Gulf. In doing so the paper provides a structured, historical account of the development of air transport in a region that occupied a central place for important trade routes for thousands of years. The paper argues that there has been a “principal axis shift” so that the role of the region is no longer defined as an intermediate section of the east-west routes. Indeed, the region has come to re-occupy a central place in trade and travel flows serving a fundamentally changed global aviation network building upon the economic and social development within the region.     

南通市综合交通枢纽布局优化对策

为推进南通市交通运输转型发展,优化交通基础设施空间一体布局,在经济增长中发挥好支撑引领作用,在阐述南通市综合交通枢纽布局现状、发展定位和存在问题的基础上,从强化对外综合运输通道建设、畅通周边城市城际交通网络、提升市域集散网覆盖通达水平、大力发展多式联运系统和促进综合货运枢纽高效衔接5个方面提出南通市综合交通枢纽布局优化对策。综合交通枢纽的布局优化,有利于完善南通市的枢纽功能,进一步提升其在全国综合交通体系中的战略地位,发展枢纽经济,实现经济转型,加快打造成长三角北冀经济中心。     

Business connectivity,air transport and the urban hierarchy: A case study in East Asia

This paper explores the effect of business connectivity between cities on their air traffic connections, and in turn on their place in a region's urban hierarchy. Its focus of attention is East Asia, where economic development is underpinned by a complex set of international flows of trade and investment. Business connectivity is a key part of these flows. The research incorporates a measure of business connections in a regression model that previously relied on GDP per head, population and distance to account for international air links. Results confirm that business connectivity is a more important influence on the level of international air links within East Asia, and plays a major role in explaining the changes in city rank over time. The paper concludes with suggestions that possible incorporation of domestic air travel (itself larger than the intra-regional flows in this region) could enrich the insight of this approach.     

New potential hubs in the South-Atlantic market. A problem of location

Hub-and-spoke networks have become very popular in the airline industry. In this paper we study the potential hub candidates in the South-Atlantic market if a future process of liberalization creates a common air market area between South America and Europe. The analysis is based on the principal operating strategies that airlines consider when they choose their network configuration: central location in the market, local traffic at the hub cities and airport facilities. Traffic levels, great circle distances between the airports and other variables are used to analyze possible differences among airports. Other implications concerning the agents involved like gains in frequencies, time penalties and burden of capacity are also explored. Results of the analysis are used to extract some policy considerations and to stimulate discussion by government officials, air industry analysts and academics, about the necessity of the introduction of more liberalized measures in emergent markets.     

The effects of deregulation, changed customer requirements and new technology on the organisation and spatial patterns of the air freight sector in Europe

Customer requirements, new technologies and the deregulation and liberalisation measures of the last 15 years have had a significant influence on market structures in air freight transport in Europe. The study examines the sector using the concept of global production networks. It describes the reorganisation in various dimensions. Firstly, there is the development from single air freight forwarders to global networks of firms. Secondly, we find a reorganisation of inter-company relations. Thirdly, airlines around the world organise their air traffic as a hub system. This lends added importance to the selected hub airport, and puts pressure on them to enlarge. As spatial consequences there is greater competition among international airports.     

How influential factors affect aviation networks: A Bayesian network analysis

The aviation industry was the catalyst for the economic development of advanced cities, and there has been a close relationship between the development of cities' aviation industries and economic indexes. Researchers have long been interested in investigating which economic factors affect the passenger and cargo volumes of airports. By leveraging statistical analysis, most existing research only indicates the significant factors affecting aviation networks and quantifies the positive or negative relationship between those factors and aviation passenger volume. However, it is difficult to envisage how the degree of changes in economic factors affects aviation networks, especially passenger and cargo volume. This paper utilizes Bayesian network analysis to bridge this gap. The airport-level data collected from OAG was combined with city- or country-level economic data that are exploited to build the Bayesian network. We find that GDP and inflation directly influence passenger and cargo volume, while fuel prices directly influence only cargo volume. Both networks change with time, indicating that evolving external economic factors influence the network. This study is the pioneer in using Bayesian network analysis to analyze aviation networks. We identify how airport passenger and cargo volumes change with respect to different degrees of economic factors change. In addition, the Bayesian network exhibits the output in a probabilistic way to fully address the uncertainty worldwide. The findings could potentially facilitate policymakers’ decisions to improve global aviation network development.     

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.     

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

This 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.     

Impacts on accessibility of China’s present and future HSR network

Although the construction of China’s high-speed rail (HSR) network only started in 2003, the network is already the largest in the world. This paper analyses the impact of the evolving HSR network on the accessibility by HSR and conventional ground transport of 333 prefecture-level cities and 4 municipalities. This paper employs three indicators of accessibility, and analyses three Scenarios. It shows that the HSR network will bring about substantial improvement in accessibility, and lead to national time–space convergence, but will also increase the inequality of nodal accessibility between eastern, central, and western regions, between cities with different sizes of population (excluding the case of the daily accessibility indicator) and between cities that differ in the shortest distance to HSR stations. The HSR network enlarges internal disparities in each of the regions and the five types of cities. The internal inequality of nodal accessibility in all three Scenarios generally increases from the eastern region via the central region to the western region, as well as from very large cities to small cities, varying inversely with the level of economic development and population size. Spatially, accessibility increases generally conform to the distance decay rule but with minor fluctuations. The 50 cities with the largest increases in accessibility are mostly located 50 km or less away from HSR stations and have populations of over 3 million, with the smaller ones located along HSR lines or around large cities such as Beijing, Shanghai, and Guangzhou. As time progresses, the planned HSR network will result in more balanced development, but regional disparities in accessibility will still be greater than before the construction of the HSR.     

Supply chain integration,landside operations and port accessibility in metropolitan Chicago

Seaports have traditionally been the focus of maritime logistics supply chains. Changing production patterns demanding greater end to end visibility by customers and accessibility to key inland population centers assume greater importance in the organization and design of transport resources and cargo flows. While synchronization of all aspects of the supply chain has become an operational necessity for firms, it is often held hostage to the efficiency of hinterland networks who must respond to a large group of stakeholders with sporadic coordination. This is particularly true when looking at the central US city and region of Chicago, a critical intermodal exchange point for truck, air and river barge traffic domestic and global, as well as a major central distribution location. This paper analyzes supply chain integration (SCI) efforts in the metropolitan Chicago region and considers efforts by public and private actors to collaborate for region-wide SCI improvements. Pareto analysis suggests that concentrated freight corridors exist, influencing freight planning for regional transportation networks more directly than diffused regional freight movements. If the corridor service becomes less responsive or congested the corridor will move to different end nodes within the broad region. Regional planning must thus address national, regional, and local moves. Private/public sector infrastructure firms should address functional cooperation on SCI by focusing on corridors as well as local improvements.     

Increasing the resilience of air traffic networks using a network graph theory approach

Air traffic networks are essential to today’s global society. They are the fastest means of transporting physical goods and people and are a major contributor to the globalisation of the world’s economy. This increasing reliance requires these networks to have high resilience; however, previous events show that they can be susceptible to natural hazards. We assess two strategies to improve the resilience of air traffic networks and show an adaptive reconfiguration strategy is superior to a permanent re-routing solution. We find that, if traffic networks have fixed air routes, the geographical location of airports leaves them vulnerable to spatial hazard.     

Policy and politics behind Shanghai’s Free Trade Zone Program

China launched the Shanghai Free Trade Zone (FTZ) Program on September 29, 2013 in a bid to reduce administrative interventions, ease restrictions on investments, further open up its financial system, and internationalize its currency to booster shipping, logistics, and commerce. This article aims to present a background of the Shanghai FTZ and some reflections on it. China’s economic reconstruction has made a major impact on its port cities. Competitions between ports are gradually evolving into competitions between supply chains, with ports no longer considered as isolated links in the transport chain but rather as integral links in the supply chain. Ports are transitioning into fourth-generation ports with the establishment of logistics and value-added activities, which are developed in conjunction with local industrial and service businesses. In this trend, China’s port cities can provide a wide range of value-added services and become centers of commodity flow, capital flow, and information flow. Specifically, the combined effects of driving the development of peripheral industries and actively coordinating the activities of relevant parties help regulate the operations of the entire supply chain to obtain potential value-added benefits. The implementation of the Shanghai FTZ will not only stimulate trade but will also bring increased shipping and finance opportunities to the city. With free trade as the new direction and focus of the country’s economic initiatives, the Shanghai FTZ will hopefully lay the groundwork for a new round of reforms and restructuring of the Chinese economy.     

Regenerating urban traditions in Bahrain. Learning from Bab-Al-Bahrain: the authentic fake

Gulf cities are determined to diversify their economies in an attempt to face the new realities resulting from the post-oil paradigm. Knowing the fact that its oil resources are about to dry up, Bahrain is forced to bank on alternative activities in order to sustain its development. For Bahrain, the diversification into the financial and tourism sectors is more urgent than for its neighbours. As a major development strategy, a tangible tendency towards using the visual scenery of their culture and history can be observed in new projects intended to achieve economic diversification. The aim is to create dreams, fantasies and models to attract tourists, travellers and visitors who are ready and prepared to ‘consume’ the ‘authentic’ heritage of such traditional cities. This construction of an image of the past – a persona – is part of what Baudrillard call ‘reality by proxy’, a stimulated environment. This paper uses Bab-Al-Bahrain as a case to investigate notions of ‘hyper-reality’ and ‘hyper-traditions’ emerging from, and imported by, globalisation. This hyper-tradition emerges from the ‘birthplace’ of the tradition it is stimulating. This might also provide a case study of what Eco refers to as ‘authentic fake’. The inevitable necessity of diversifying Bahrain's economy allowed the island to see itself as the financial, commercial and recreational hub for the gulf region. Historically, the old port that was once the main gate to Manama city, the Bahraini capital, actually called Bab-Al-Bahrain (Bahrain Gate), was a commercial pole that extended to the main market (souq). This paper focuses on the area of Bab-Al-Bahrain and its urban and architectural adjacencies to illustrate Bahrain's efforts in promoting its historical and cultural heritage and using it as a vehicle for touristic development. An emphasis on the relation between event, place and the community in the selected context will provide a different vantage point from where to explore the importance of religious festivity and ethnic diversity in tourism development. The paper will also investigate the legitimacy and the complex dynamism of transforming historical heritage into a ‘hyper-tradition’ or a sort of ‘authentic fake’ in order to facilitate the tourists' consumption process of Bahraini culture. It would also argue that tourism changes the host community and influences its ‘authenticity faking’ process.     

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.