PROGRESS IN GEOGRAPHY ›› 2005, Vol. 24 ›› Issue (2): 59-68.doi: 10.11820/dlkxjz.2005.02.007

• Original Articles • Previous Articles     Next Articles

China′s Airline Reorganization and Its Effect on Network Structure

JIN Fengjun1, SUN Wei1,2, Shihlung Shaw3   

  1. 1. Institute of Geographical Sciences and Natural Resources Research, CAS, Beijing 100101, China;
    2. Graduate School of the Chinese Academy of Sciences, Beijing 100039, China;
    3. Department of Geography, University of Tennessee, TN 37996, USA
  • Received:2005-01-21 Revised:2005-03-01 Online:2005-03-25 Published:2005-03-25

Abstract:

The tide of the deregulation is sweeping across the world. China is also taking substantial, albeit still cautious, measures to deregulate its airline industry. The airline reorganization in 2002 was one of the notable events during the course. It has far-reaching impacts on China’s airline industry and aviation network structure. Based on analysis of reorganization process and policy implications, this paper examines the effect on network structure caused by the reorganization from the perspective of connectivity, hub structure and geographic coverage. The study shows that the subjects and methods of decision-making on aviation network have greatly changed after reorganization, from the official administration of Civil Aviation Authority of China to the business management of airlines. The reorganization not only extended the geographical coverage of major airlines, but also improved their aggregate network connectivity. The networks of the “Big Three” are now shifting from single hub to multi-hubs and the adoption of hub-and-spoke structure becomes more obvious. The reorganization has optimized the resources of airlines and improved their competitiveness. Further deregulation will benefit the aviation industry as a whole.

Key words: airline reorganization, deregulation, Hub, network structure