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Empirical study on demand elasticity of passenger transport

ZHAO Xiaosong1,2, ZHU Jinfu1, LU Honglan3, ZHOU Wei3   

  1. (1. College of Civil Aviation, Nanjing University of Aeronautics and Astronautics, Nanjing 210016, China;2. Xiamen Airlines, Xiamen 361000, Fujian, China; 3. China Southern Airlines, Guangzhou 510406, China)
  • Received:2018-01-02 Revised:2018-02-05 Online:2018-04-25 Published:2018-05-02

Abstract: Possible factors of aviation market demand is analyzed from the perspective of airline operations, meanwhile,multiple regression equation is employed to establish the passenger demand function. Through analysis of actual operational data, direct factors of market demand are confirmed including ticket price, sales channel, flight year,flight date and advanced selling time. On this basis, considering the difference among various kinds of routes as well as the competition between airlines, the impact of the above factors on passengers'demand is analyzed,especially the impact of passenger ticket prices on market demand. Empirical research shows that the model fitting effect is good, and the factors'influence on market demand is consistent with facts and common sense,providing quantitative decision-making reference for airline fare formulation.

Key words: civil aviation transport, market demand, price elasticity, demand function

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