A study on the Economies of Launching Regular Air Service Between South Korea and North Korea;Based on the Analysis of Air Passenger's Preference of air services from Seoul to Beijing via Pyung Yang

남북한간 정기항공편 운항의 경제성 연구;서울-북경 항공편의 부분적 평양경유 운항을 가정한 항공여행자 선호도 분석을 중심으로

This study focuses on the economies of launching regular air services between capital cities of South Korea and North Korea. The demand for traveling between these two cities is too small to justify scheduled air service. However, it may be possible to provide regular air service by utilizing via flight of incumbent Seoul-Beijing flights. There are numerous flight services between Seoul and Beijing and we may allow some of the Seoul-Beijing flights to stop by Pyung Yang for commercial traffic handling. This study tries to find the optimal discount rate which passengers traveling between Seoul and Beijing via Pyung Yang, the idea is reasonable considering the inconvenience of stopping at Pyung Yang. The Stated Preference Techniques are applied for the study. The required data were collected through interviews of passengers traveling from Seoul to Beijing. The major variables that are considered in flight choice are air fare, flying time, and flight frequency. The relative importance of these major variables is estimated by the logit models calibrated with stated preference data.