Airport dominance is considered to be conducive to the exercise of market power of airlinesby improving the pricing power and obtaining more market share on routes. This paperexamines airport dominance and market power in Chinese domestic market. Preliminaryfindings show that on the one hand;;airport dominance contributes to higher average fares ofmajor airlines at their primary hubs. On the other hand;;the majors have failed to translatetheir 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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