Abstract:This paper seeks to document and describe events in the last decade in China's airline markets, and to clarify some misunderstandings in regard to the 2002 airline consolidations that brought sweeping changes to China's aviation markets. Some possible reasons for the 2002 consolidations are inferred through analysing the numbers and facts of the late 1990s and early 2000s. We conclude that the consolidations may be a natural response to the changes that accompanied airline deregulation in China.

Two hundred sixty‐three of the largest Australian fortunes are classified by date and industry of origination. More began in property development, sheep ranching and clothing manufacturing than in other industries. First generation immigrants own more than twice the number of fortunes as would be expected on the basis of their proportion of the population. A panel of experts judged that three‐quarters of the fortunes originated in competitive industries. One explanation for large fortunes accumulating in competitive industries is extraordinary returns to disequilibrium (innovation and product differentiation). Other explanations include the assumption of risk and the return to scarce entrepreneurial and managerial skills. Progress in communication and transport technology have made it possible to leverage modest Ricardian rents into large profits via chain operations.

In the absence of an effective antitrust law, both fare wars and price collusion have been pervasive in China's airline markets, causing concern for both airlines and consumers. A study of monthly airfare data from 2002 to 2004 confirms that fare wars occur periodically, as well as price collusion. Both tend to be short-lived. The fact that collusion is more likely to occur in January and April when demand is high, as revealed by China Eastern's and China Southern's price-war and collusion models, has been confirmed by interview information obtained from the airlines' sales managers. However, there is also evidence in these models suggesting that collusion can be more easily formed when demand is low. High airport concentration measured by the HHI may facilitate collusion in certain circumstances, but it may also lead to more price wars under other conditions. Concentration in both airports and routes does not appear to systematically affect the occurrence of fare wars and collusion in all the models estimated. We also reject the possibility that mutual forbearance due to multimarket contact plays any important anti-competitive role in China's airline markets.

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Abstract:After the 2002 airline mergers in China, no significant airfare increases were found to have occurred in a sample of markets served by China Eastern and China Southern. In most of the markets that were directly affected by the mergers, airfares in fact declined. This is somewhat surprising, especially given the absence of antitrust laws and enforcement over the period subsequent to the mergers. Our results, however, do show that market power was possibly exercised after the mergers in China Eastern's hub-to-hub markets.

Your presentation rooms are located at level 1. These rooms are fitted with Data Projector or LCD projector and Laptop Computer, screen and there is designated person to help you to load your paper in the laptop. Please do not attempt to use these equipment before we show you as there is chance that these equipments may not work if you cannot handle them properly and as such please do not handle those before we show them to you and ask us for assistance. We will upload your paper in the system before your presentation or during break. All authors are requested to make their pen/USB drive virus-free before we upload your paper.ey use our computer. For emergency, overhead projector will provided by the hotel.• What should you bring along for your presentation ?Pease bring your virus-free pen drive/USB stick/flush drive to make power point presentation. Please also bring overhead transparencies as stand-by if data projector does not work for any reason. Please bring in 15-2-copies of your (printed) paper for distribution at your session. Each paper will have about 15 minutes for presentation and 5 minutes for discussion.Please do not ask us for blank transparency or for photocopying or email or computer facilities as we do not have access to these facilities.• What about Tea/Coffee Break and Lunch ?This International conference is featured by day-long feedings. Arrival, mid-Morning and afternoon tea/coffee and lunch will be served as per following schedule

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