information:classification, quality:corruption
Economic benefits of low-cost airlines in saturated markets - net benefits or a zero-sum game

Studies show that the entry of low-cost airlines into the Hong Kong market brought in $671 million in revenue and resulted in an outflow of $294 million.

Therefore, the replacement effect should be considered when introducing a new model, which will lead to economic leakage and injection. Thus introducing new models requires caution. For example, if the number of new airlines departing from and arriving at the airport is the same, the economic contribution to the host city may be a zero-sum game. Because for Hong Kong, the consumption of overseas tourists in Hong Kong is income, while the consumption of Hong Kong residents in opposite cities is outflow. In addition, the introduction of new airlines can also have a negative impact on existing airlines.

Consequently, when a new aviation model is introduced, feasibility tests need to be carried out in all aspects, taking into account the economic inflow and outflow and displacement effects caused by the model.