China´s Domestic Airline Competition Analysis Based on System Dynamics and Simulation

This paper offers a system dynamics method to analyze competition of China´s domestic airline courses between main cities which are operated by only two main airlines. The model highlights four factors that affect purchase behavior: price, safety impression, service quality, punctuality rate and define the concept of airline´s total impression based on the latter three factors. Real data is collected through survey and simulation via Vensim software is conducted to give analysis to the system. We use the model and simulation to study how different airline price strategies and different airline impressions can affect purchase behavior separately.