Analyses on continuance of unpopular international airline by local government

The bargaining between Asiana Airlines and Tottori Prefecture in Japan on continuation of international flight between Seoul in Korea and Yonago of Tottori in Japan in 2007 is analyzed. Nash bargaining model is employed to validate the bargaining power of both parties. Moreover, Regression Analyses are executed to find significant factors that have effects on flight users. Among others, the study finds that Tottori Prefecture had reasonable bargaining power at the bargaining process, and the two Tottori policies of User Promotion for Korean Travelers and Attraction Projects for Foreigners have been positively affected the number of users of the flights.