Construction of Model on Measuring Effects of Airline Deregulation Using a Real-Option-Method

点击翻译按钮获取中文摘要

Japan's civil aviation deregulation began with the termination of the 1970 & 1972 scheme, which determined the business fields of the nation's airline companies, in June 1986. After the introduction of the air fare system in which the standard cost was set as the maximum amount in 1996, the revised Civil Aviation Law was enforced in February 2000, abolishing supply-demand adjustment regulations on the premise of security and providing airline companies with the freedom of divesting from routes as well as the freedom of setting fares.This research aims to establish an evaluation model based on the real option method in order to introduce civil aviation services into areas that are highly likely to become unprofitable routes for existing major airline companies by focusing on regional airline routes amid civil aviation deregulation.This research has led to the following conclusion :1)After deregulation, airline companies have had a tendency to change the number of seats available according to the load factor. In fact, even for routes whose load factor was below the break-even point, decisions as to whether routes would be maintained or reduced were made on the basis of demand fluctuations.2)Model on Measuring Effects of Airline Deregulation was established, based on the real option method in order to introduce civil aviation services into areas that are highly 1ikely to become unprofitable routes for existing major airline companies by focusing on regional airline routes amid civil aviation deregulation.