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2009 International Conference on Business Intelligence and Financial Engineering
The Determinants of Passenger Load Factor for Chinese Airline Industry
Beijing, China
July 24-July 26
ISBN: 978-0-7695-3705-4
Identification of Load Factor’s Determinants is an important issue for airline industry management. This paper discusses the influence element of Chinese Airline Industry load factor based on the historical high frequency data. We set a SVAR model for the analysis and apply a TARCH-M model to discuss its ARCH effect. Our research finds that one competitor’s current and lagged PLF may affect others, and branch and associated operation also affects PLF’s fluctuation. For the branch companies competing in the same city, the effects of the positive impact and the negative impact are just opposite. The conclusions have important implications to the whole industry.
Index Terms:
Passenger Load Factor(PLF), Revenue Management, SVAR, TARCH-M
Citation:
Yun Wang, Hongbing Ouyang, Zongcheng Zhang, "The Determinants of Passenger Load Factor for Chinese Airline Industry," bife, pp.529-533, 2009 International Conference on Business Intelligence and Financial Engineering, 2009
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