Airline' LCC strategy and industrial policy

2015 Fiscal Year Final Research Report

• Project/Area Number: 24530281
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Applied economics
• Research Institution: Osaka University of Economics
• Principal Investigator: LIN MINGHSIN 大阪経済大学, 経済学部, 教授 (10454547)
• Research Collaborator: Mantin Benny University of Waterloo ; Zhang Anming University of British Columbia ; Zhang Yimin China Europe International Business School ; Brueckner Jan University of California, Irvine
• Project Period (FY): 2012-04-01 – 2016-03-31
• Keywords: 国際航空市場 / 航空ネットワーク / 低費用航空会社 / 新規参入路線 / 国際ハブ空港の民営化

Outline of Final Research Achievements

This research theoretically investigates two issues in the airline industry: (i) the entry of Low-Cost Carriers (LCC) and major carriers’ network; (ii) major carriers’ network competition with LCC new brands. Regarding the first issue, this research shows the market conditions for network carriers to retain their hub-and-spoke networks when their routes are entered by LCCs. Regarding the second issue, this research examines major carriers’ network competition by establishing LCC new brand from managerial point of view, and further shows that the excess entry into the network markets may occur by major carriers’ LCC strategy. The achievement of this research includes 12 publications in the international refereed journals, and 10 presentations in the domestic and international conferences.

Free Research Field

産業組織論、応用経済学