Recovery of Chinese low-cost carriers after the outbreak of COVID-19 pandemic

Maozhu Liao, Chuntao Wu and Hongmeng Yan

Journal of Air Transport Management, 2022, vol. 105, issue C

Abstract: This study conducts a detailed analysis of the response of China's low-cost carriers (LCCs) to the threats posed by the pandemic from a route network perspective, aiming to explore the resilience of LCCs and Chinese airlines. Using geographic visualization and network analysis, we evaluate and compare the network connectivity of each Chinese LCC to see the change patterns, then elaborate on the network connection of Spring Airlines. The major results are: the LCC sector has not recovered, but some of them exceed the pre-pandemic levels in a less deregulated environment; different LCCs show different recovery patterns; Spring Airlines outperforms the other four LCCs in terms of network connectivity. The recovery process is supported by various external factors, such as the reduction of new confirmed COVID-19 local cases and international flights, the re-open of inter-provincial tour groups and tourism demand, the nationwide rebound activities promoted by the central government, and the supporting policies, especially new slot allocation processes issued by CAAC. The case study further indicates the effects of high-speed rail (HSR) and regional subsidy measures on the tactical actions of Springs in route planning. This paper serves as a referential case for the LCCs worldwide and has good application for the recovery of other LCCs in other countries. Moreover, the study conducted in this time window offers a chance to assess the development of Chinese airlines in a not fully deregulated aviation environment. It contributes to the debate on the theory of air network resilience.

Keywords: Low-cost carriers (LCCs); COVID-19; Connectivity; Resilience; Route network (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:105:y:2022:i:c:s0969699722001016

DOI: 10.1016/j.jairtraman.2022.102282

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