Airport dominance is considered to be conducive to the exercise of market power of airlines by improving the pricing power and obtaining more market share on routes. This paper examines airport dominance and market power in Chinese domestic market. Preliminary findings show that on the one hand;;airport dominance contributes to higher average fares of major airlines at their primary hubs. On the other hand;;the majors have failed to translate their airport dominance into higher market share on routes originating from their hub airports. Findings of this study have important policy implications.
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