The Research Of The China's Civil Aviation Market Structure's Impacts On Air Fare

Since the 1980 s,China's civil aviation passenger industry has developed rapidly,and in 2005,it surpassed Germany to become the second largest aviation market in the world.Since the beginning of the 21 st century,China's civil aviation industry has been continuously relaxing regulations and introducing market competition,with the increasing number of incumbent airlines and new entrants,and the increasing competitiveness of China's air passenger transport market structure.By the end of 2019,the length of China's high-speed railways had reached 35,000 kilometers,and 2.29 billion trips had been made by bullet trains.As an important transport mode in the transport market,high-speed railway also improves the transport market structure and market competition behavior,forming fierce inter-mode competition for civil aviation passenger transport and affecting the performance of civil aviation market.In this case,this paper tries to analyze the market structure of civil aviation and the impact of high-speed rail competition on civil aviation fare mechanism and empirical effect.The research on airline ticket price can be divided into three aspects: action mechanism,influencing factors and empirical analysis.From the perspective of action mechanism,industrial organization theory and transport market competition theory are the main theoretical basis.From the perspective of influencing factors,civil aviation market structure factors,high-speed rail competition factors and economic geography factors are the main research variables.From the empirical analysis,the civil aviation market competition,high-speed rail competition will have an impact on the price of civil aviation.Among them,there is still room for further research on how the market structure of civil aviation and the relative index of high-speed rail civil aviation competition affect the ticket price of civil aviation.This paper takes the competition between the market structure and the mode of transport of civil aviation as an important basis to analyze the mechanism of influencing the price of civil aviation.Based on the data of domestic airline routes from 2013 to 2017,this paper conducts an empirical study on the impact of the market concentration index of civil aviation and the relative index of competition between civil aviation and high-speed railway on the price of civil aviation.First of all,based on the descriptive analysis of the development status and market structure indicators of China's air passenger transport market,this paper analyzes the mechanism of action based on the SCP analysis framework.Within the framework ofSCP analysis,this paper analyzes the competitive market structure of civil aviation passenger transport,the oligopoly market structure of civil aviation passenger transport,and the mechanism of the impact of high-speed railway competition on the airline fares.Secondly,the relative indexes of HHI and the frequency and time of civil aviation high-speed railway were constructed,and Air China,China southern airlines and China Eastern airlines were incorporated into the model as control variables.The empirical results of the linear equation model and the logarithmic equation model are compared and analyzed from the whole airline,high-speed railway and no high-speed railway.Finally,the empirical results and policy implications are analyzed.The main conclusions of this paper include :(1)the market concentration index of civil aviation passenger transport has a significant positive impact on air fares.The higher the HHI is,the greater the pricing power of airlines on the route will be,and the higher the air fares will be.(2)under a given airline market concentration degree,the regression coefficient of the variables of the three airlines may be positive or negative,which indicates that the competition of the three airlines does not necessarily increase the competition intensity on the airline,but may also promote the further monopoly of the airline.(3)before the emergence of high-speed rail,airlines were in fierce competition for medium and long distance routes,and did not mind price wars to occupy the market.The price of unit distance on the routes was relatively low.After the opening of high-speed railway,airlines gradually give up the routes with fierce competition of high-speed railway,and optimize the route network layout,thus making the price per unit distance show an upward trend.(4)compared with the operating frequency index,the operating time has a more obvious impact on the price of civil aviation passenger transport,which indicates that passengers prefer the faster service in the faster service and more intensive flight travel.