Fare and Location Competitiveness Analysis of Major Hub Airports in East Asia

Abstract

Main airlines naturally dominate the Incheon International Airport. The government executes various trade policies in order to protect main airlines. This paper analyzes the distances between hub airports in Asia and the distances of spokes, as well as relationships with other variables, travel fare, and monopoly power. The purpose is to recognize the position of the Incheon International Airport through analyzing fare and location differences between Incheon International Airport and other hub airports by market. The result appears that Incheon Airport was ranked 4th in fare competitiveness and location among East Asia airports, where the most competitive cities were Singapore in terms of fare competitiveness and Tokyo in terms of location competitiveness. Strategic and political schemes from the government are needed by Incheon Airport