The determinants of air transport passenger demand of the Chinese and Taiwan aviation markets from Lisbon International Airport: an empirical modelling analysis

Abstract

The aim of this article is to investigate the factors that enhance the development of new air routes, in order to expand the airport network, namely, to the Chinese and Taiwanese markets, from the Lisbon International Airport, from 2002 to 2009. An essay was designed to illustrate some potentialities of the use of concepts and methodologies related to statistical models in aeronautical management applications. We used two gravitational models comparatively, using panel data, pooled OLS estimation methods, fixed effects, and random effects, and the application of the circuit level analysis method on air routes from Brazil to Hong Kong via Lisbon. Statistical results have shown that the most important determinants of passenger demand for the Chinese and Taiwanese markets from Lisbon International Airport are gross domestic product, population, business factor and y2008 (calendar year 2008).