Low cost carriers' destination selection using a Delphi method

Over the past two decades, demand for air transport between Taiwan and China has grown rapidly, partly in response to the economic development of the two countries, but also as a result of political factors. Low cost carriers (LCC) that have operated for several decades in the United States and Europe will provide a good operational benchmark for direct cross-strait flights once these services become possible. This research involves the construction of a sequential destination selection model for direct cross-strait flights by LCC based on a multi-attribute value function. The selection framework comprises three elements: destination competitiveness, airport infrastructure and potential demand. Previous research focused only on a few alternative airports, but the 41 airports available for foreign flights in Mainland China have all been included in the empirical analysis undertaken in this paper. The results therefore fit better with the operational features of LCC who are normally seeking suitable secondary airports rather than traffic hubs. The analysis reveals that six airports would be suitable for LCC, namely, Shanghai Pudong, Shenzhen, Xiamen, Hangzhou, Wuhan and Nanjing. (c) 2007 Elsevier Ltd. All rights reserved.