An empirical research of Chinese Airline Industry determinants of passenger load factor

The Load Factor´s Determinants is an important issue for the Chinese Airline Industry. This paper discusses the influence element of Chinese Airline Industry load factor based on the historical high frequency data. First, we set a SVAR model and discuss its significance; then we discuss its ARCH effect, third, we set a TARCH-M model and discuss its volatility; at last, we get related conclusions and correlative policy implications. 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. These conclusions have important meanings and applicability to the whole Chinese Airline Industry.