The Impacts of High Speed Rail on the Domestic Aviation Market: an Asian Perspective

The Impacts of High Speed Rail on the Domestic Aviation Market: an Asian Perspective


Joel Zhengyi Shon, Tainan Woman¡¦s College of Arts and Technology, TW; Pei-Chih Ho, Yan-Heng Cheng, Yu Da College of Business, TW


High speed rail in Japan has launched services in for decades, it is now exporting to Korea, Taiwan, and China. This study is mainly focusing on the impacts of high speed rail on air transport, especially in the market of Taiwan.


Since the Taiwan government carried out the ¡§open sky¡¨ policy in 1987, the aviation market in Taiwan had considerably prospered. The peak of passenger transport was reached in 1997 when both the busiest domestic and international route in Taiwan was top ranked in the world¡¦s aviation statistics. But soon after this big success, an awkward situation resulted from the negative growth has prevailed the domestic market eight years in a row up to right now. In the past few years, bus companies had competed intensively for the domination over the bus market in west Taiwan. It is also predicted after the Taiwan High Speed Rail (THSR) star operation in the end of 2006, the aviation market in Taiwan is bound to undergo a more enormous impact. For this sake, find out the niches to survive the keen competition is going to become one of the key issues every single airline company must confront in the future. Through reviewing existent reference and study, this study aims to find out all kinds of essential factors that work upon the operational strategies adopted by airline companies, and focuses on both internal and external environment to construct operational strategies adopted after the completion of THSR. The experiences from Japan and Korea, the neighboring countries with high speed rail services, will be integrated. Issues of fair competition, subsidies, and government supports among all inter-city transportation modes will be analyzed. The processes of policy formation will also be examined to see if conflicts do exist. Finally, new ideas of transportation system development and lessons learned in Asia will be discussed.


Association for European Transport