The growing influence of low-cost carriers in Northeast Asia and its implications for a regional single aviation market |
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| Institution: | 1. Department of Economics, Newcastle University, NE1 7RU, United Kingdom;2. Institute of Social Science, the University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan;3. Graduate School of Logistics, Inha University, 100 Inha-ro Nam-gu, Incheon 22212, South Korea;4. International Affairs Staff, Yogyakarta City Mayor’s Office, Yogyakarta City Government, Yogyakarta 55165, Indonesia, and Lecturer, Department of Economic Development, Ahmad Dahlan University;5. Graduate School for International Development and Cooperation, Hiroshima University, 1-5-1 Kagamiyama, Higashi-Hiroshima Hiroshima-ken 739–8529, Japan |
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| Abstract: | This paper provides an overview of the development of the low-cost carrier (LCC) sector in China, Japan, and South Korea. It is the first paper that documents LCC contributions to the passenger traffic and cheaper fares in Northeast Asia (NEA)'s intra-markets. We argue that a single aviation market can facilitate the growth of the LCC sector, which in turn will make a significant contribution to the NEA connectivity, mobility, and integration. In addition, with a single aviation market, NEA countries can adopt a proactive, unified approach in negotiating air transport agreements with the major aviation partners to maximize the interests of this region as a whole, which will further provide valuable growth opportunities for the LCCs. |
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| Keywords: | Northeast Asia Single aviation market Low-cost carriers Passenger traffic Open skies |
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