Political risk assessment on air logistics hub developments in Taiwan

Political risk assessment has long been practiced by multinational corporations, but has been rarely used for air performance reviews. This study is a political risk assessment of the development of an air logistics hub in Taiwan, and thus examines the factors leading to physical property losses of air carriers based at the hub. It utilizes a checklist and a brainstorming session to identify risk factors, a 5 x 5 risk matrix to undertake a qualitative risk survey, and an analytical hierarchy process to assess the risk. The study concludes that micro- and macro-factors are approximately of equal importance to the development of an air hub in Taiwan. Issues relating to inland vehicle parking, air logistics infrastructure developments and the cross-strait relationship appear to be particularly crucial. (C) 2002 Elsevier Science Ltd. All rights reserved.