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1
Chen, Junjie. "The Impact of Covid-19 on the Profitability and Liquidity of Air New Zealand: Compare with the Whole Airline Industry." Highlights in Business, Economics and Management 10 (May 9, 2023): 88–98. http://dx.doi.org/10.54097/hbem.v10i.7939.
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As an industry sensitive to changes in external factors, the airline industry has been affected negatively by the Covid-19 outbreak. Global travel restrictions sent shock waves throughout the industry, and Air New Zealand is no exception. This study investigates the impact of Covid-19 on the profitability and liquidity of Air New Zealand and the whole airline industry based on financial ratio and regression analysis. The profitability and liquidity are represented by Operating Return on Assets (OROA) and Quick Ratio. Twenty commercial airlines from around the world were chosen as samples to examine how Covid-19 affected the overall airline industry's profitability and liquidity. This study compares the effects of Covid-19 on their profitability and liquidity in an effort to identify commonalities and variances. The study results show that both liquidity of Air New Zealand and the whole airline industry received a significant and positive impact from the Covid-19 pandemic due to the airline's private remediation measures and government interventions. In addition, the study found that the profitability of Air New Zealand was not received significant and negative impact by the Covid-19 pandemic like the whole airline industry due to the cargo schemes supported by New Zealand and Australia. This study is helpful for airlines and the government to formulate remediation measures and policies to facilitate the recovery of the airline industry. Finally, this study recommended that governments can place orders to airlines to support the recovery of the airline industry. And each airline can diversify its sources of profitability to mitigate the negative impact of Covid-19.
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Mhlanga, Oswald, Jacobus Steyn, and John Spencer. "The airline industry in South Africa: drivers of operational efficiency and impacts." Tourism Review 73, no. 3 (August 20, 2018): 389–400. http://dx.doi.org/10.1108/tr-07-2017-0111.
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Purpose The airline industry is structurally challenged by its very nature, because of high overhead and capital costs. This is further exacerbated by macro-predictability and micro-uncertainty, thereby making it difficult for airlines in South Africa to attain operational efficiency. The purpose of this study is to identify drivers of operational efficiency and their impacts on airline performances in South Africa. Design/methodology/approach An extensive data collection using primary and secondary sources enabled the researchers to gather data on all the airlines operating in South Africa, for the period of 2012-2016, on a variety of parameters. A two-stage empirical analysis was carried out, which involved estimation of operational efficiencies during the first stage by using data envelopment analysis (DEA) and determination of performance drivers during the second stage by using a two-way random-effects generalised least squares regression and also a Tobit model. Findings From the study, it is clear that two structural drivers, namely, “aircraft size” and “seat load factor”, and two executional drivers, namely, “low cost business model” and “revenue hours per aircraft”, significantly impacted (p < 0.05) positively on airline efficiencies in South Africa. To improve efficiency, management should first concentrate on the drivers that can be changed in the short-term (executional drivers) and later focus on the drivers that require long-term planning (structural drivers). However, among the structural drivers, only “aircraft families” had a negative impact on airline efficiencies, whilst among executional drivers, only “block hours” negatively impacted on airline efficiencies. Research limitations/implications Despite the importance of this study, it is not free of limitations. Firstly, because of the small size of the industry, fewer airlines and lack of detailed data, the study could not consider other important factors such as optimal routing and network structure. Secondly, although non-aeronautical revenues have become increasingly important in airline management, they were not included in this study. Further studies may investigate the impact of these factors on airline efficiency. Practical implications The results have potential policy implications. Firstly, as the domestic airline market in South Africa is too small to operate with a smaller aircraft efficiently, airlines that intend to make use of smaller aircraft should first identify niche markets where they can have a route monopoly, such as SA Airlink. Secondly, as block time negatively affected airline efficiency, airlines can undertake schedule adjustments to reduce block time and thus improve technical efficiency. Originality/value This paper is a first attempt to identify drivers of operational efficiency in the airline industry in South Africa. The results indicate that DEA is a useful tool to identify factors impacting airline efficiency and could improve airline performances in South Africa.
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Bilal, Sheikh. "Airline Management and Customer Experience an Empirical Study from Indian Aviation Sector." Dec 2023 - Jan 2024, no. 41 (December 2, 2023): 1–14. http://dx.doi.org/10.55529/jsrth.41.1.14.
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In a consumer-driven industry, airlines fight for customers. This study investigates Airline Management and customer experience to attract and retain consumers. Aviation client satisfaction and trip are also assessed. Airlines must stand out with inventive management in a crowded market. Digital management, loyalty programs, pricing, and branding are airline strategies. Understanding how airlines employ these tactics to stand out in a crowded business is crucial to customer acquisition. Any airline's success hinges on customer pleasure. This research explores how airlines affect bookingto- disembarking, focusing on customer service, in-flight experiences, and ground services. It examines how smartphone apps, self-service kiosks, and in-flight entertainment improve passenger experiences. Aviation customer experience assessment is difficult. On-time performance, cabin comfort, and service quality impact consumer happiness and loyalty, according to this study. It stresses data-driven decision-making and tailored service to customize user experiences. Airlines can enhance management and passenger experience using this study. In a competitive industry with fast technological change, airlines must understand management and customer experience. Airline management and customer experience are the focus of this study report. This study studies customer retention and the passenger journey to understand the airline industry's dynamic and customer-centric nature.
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Enomoto, Carl E., Karl R. Geisler, and Sajid A. Noor. "Non-price competition in the US airline industry: a VAR model." Journal of Economic Studies 44, no. 6 (November 13, 2017): 882–94. http://dx.doi.org/10.1108/jes-09-2016-0173.
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Purpose The purpose of this paper is to analyze the extent to which major US airlines respond to one another in quality of service improvements. Design/methodology/approach Utilizing monthly data, the authors estimate a five-equation vector autoregressive model to determine which airline leads or follows others in quality of service improvements. Findings This study found that the five major airlines make interrelated decisions when responding to customer complaints concerning flight problems, over-sales, reservations, ticketing, boarding, and customer service. Every airline either responds to or influences the changes in customer complaints faced by at least one other airline, while some airlines do both. However, only one such relationship was found when examining if airlines change the percent of flight delays they have control over in response to changes in flight delays faced by another airline. Practical implications The number of passenger complaints against an airline can be influenced by the airline, as can the number of carrier-caused flight delays. The industry leaders in responsiveness to consumer complaints are US Airways and United. However, airlines do not, as a group, respond to the carrier-caused delays of their competitors. The prescription to improve airline service vis-à-vis flight delays is simple: tell passengers why flights are delayed. To protect or gain market share, airlines would compete for customers by minimizing flight delays in a similar manor to how they respond to customer complaints. Originality/value No other paper that the authors are aware of has addressed the issue of identifying leaders and followers in the US airline industry regarding changes in service quality as reflected by changes in passenger complaints and flight delays.
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Low, Joyce, and Kum Khiong Yang. "Understanding the operating landscape of the global airline industry: A DEA integrated alternating conditional expectation approach." Journal of Airline and Airport Management 9, no. 2 (October 7, 2019): 27. http://dx.doi.org/10.3926/jairm.126.
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Purpose: This study investigates the relationships between service efficiency in 5 major cost centres (namely, business orientation, network coverage, physical resources, maintenance, repair and overhaul (MRO), and human resources) and profitability in the global airline industry.Design/methodology/approach: The study integrates the Slack-based Model (SBM) of Data Envelopment Analysis (DEA) with the Alternating Conditional Expectation (ACE) regression to understand the relationships between an airline’s profitability and its efficiencies in 5 identified operations areas.Findings: Based on the observational data obtained from 75 international airlines, the relationships between operational performances and profitability are found to be curvilinear and contingent on an airline’s operating model.Research limitations/implications: The omission of non-IATA airlines and many low cost carriers may hinder a holistic view of the airline industry.Practical implications: Management can influence the profitability of an airline through its strategic operations decisions that affect an airline’s cost, service quality, and financial structure after the influences of location and size have set the stage. Airlines pursuing cost leadership should seek to increase productivity especially in MRO, human resources and physical resources; whereas airlines pursuing service differentiation may choose to provide quality service at lower efficiencies or pursue an approach to improve quality and efficiencies simultaneously.Originality/value: Identifying operations practices that are consistent with a firm’s competitive priorities is important in the multifaceted service environment today. An integrated SBM-ACE regression model, which permits different input-output mix, variable return to scale and non-linear relationship, is proposed and applied to analyze the profit impact of service efficiencies in the five key operations areas.
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Iqbal, Asif, Muhammad Sufyan, Abdul Salalm, Muhammad Ali Shaikh, and Muhammad Faizan Khan. "When Satisfaction Takes Flight: Unraveling the Impact of Passenger Satisfaction on Passenger Loyalty with the moderating role of Price Sensitivity in Airline Industry." Research Journal for Societal Issues 5, no. 3 (September 30, 2023): 73–95. http://dx.doi.org/10.56976/rjsi.v5i3.138.
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The airline industry is highly competitive, and airlines need to provide high-quality services to attract and retain customers. This study examines how airline service quality, safety regulations, airline safety and empathy affect consumer satisfaction and how price sensitivity moderates this effect. Airlines must deliver high-quality services to attract and keep customers in a competitive industry. Moreover, how price sensitivity moderates the relationship between service quality and passenger satisfaction. The results indicate that airline service quality, safety requirements, safety, and empathy affect customer satisfaction. Airline service quality, safety regulations, empathy are the most essential factors affecting passenger satisfaction. Price sensitivity moderates the relationship between passenger satisfaction and passenger loyalty, price-sensitive passengers more likely to switch airlines if they are dissatisfied. The study emphasizes the necessity of high-quality services to improve passenger satisfaction for airlines. To satisfy customers, airlines must prioritize safety, Empathy, ticket pricing, and service quality. Airlines must also recognize price sensitivity's moderating influence and develop strategies to serve price-sensitive passengers. This study adds to the literature by examining how airline service quality, safety regulations, empathy, and price sensitivity affect passenger satisfaction. In a competitive industry, airlines must focus on different service aspects to improve passenger satisfaction and passenger loyalty.
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Chung, Sukhoon, Jin-Woo Park, and Sangryeong Lee. "The Influence of CSR on Airline Loyalty through the Mediations of Passenger Satisfaction, Airline Brand, and Airline Trust: Korean Market Focused." Sustainability 14, no. 8 (April 11, 2022): 4548. http://dx.doi.org/10.3390/su14084548.
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Corporate social responsibility (CSR) has become a significant factor in determining business sustainability. This trend is particularly evident in the airline industry, as airlines endeavor to navigate highly competitive market circumstances. CSR activities constitute a significant duty as one of the survival strategies and to sustain their business based on the customer loyalty in the airline industry in Korea. The purpose of this research was to explore the influence of CSR on airline loyalty through meaningful mediators within the airline industry in order to elicit important insights and provide relevant conclusions for airline experts to apply toward business sustainability. This study employed three factors—passenger satisfaction, airline brand, and airline trust—as key mediators between CSR and airline loyalty. An online survey was carried out through private SNS channels targeting airline service users, and 312 completed surveys were collected. A confirmatory factor analysis (CFA) and structural equation modeling (SEM) enabled the study to determine that CSR activities among airlines significantly impact passenger satisfaction, airline brand, and airline trust. Moreover, passenger satisfaction and airline trust have a notable influence on airline loyalty. Limitations and implications for both academia and management are also presented based on the results of this research.
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Riantama, Dalianus. "What are the Crucial Factors in Gaining Customer Recommendations in the Airline Industry?" Value : Jurnal Manajemen dan Akuntansi 18, no. 2 (July 10, 2023): 226–36. http://dx.doi.org/10.32534/jv.v18i2.3861.
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The airline business is continually growing. This study tries to find out important factors for customers to give their recommendations for an airline. Text mining approach and feature selection methods are applied to clean the data set and to select the most crucial factors of customer recommendations. This study collected 846 online customer reviews for full-service airlines and 179 low-cost carrier airlines. Cleanliness and crew care are the most critical factors for full-service airline customers. Low-cost carrier airline customers were more concerned about the value of money and flight information. The results provide airlines’ managers with new insights to make their customers willing to give recommendations and gain a positive brand image.
Keywords: Online customers review, text mining, customer recommendations, feature selection, airline
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Edelman, Jonathan. "Reviving Antitrust Enforcement in the Airline Industry." Michigan Law Review, no. 120.1 (2021): 125. http://dx.doi.org/10.36644/mlr.120.2.reviving.
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The Department of Transportation (DOT) has broad but oft overlooked power to address antitrust issues among airlines through section 411 of the Federal Aviation Act. However, the DOT’s unwillingness to enforce antitrust more aggressively may be translating into higher fares and fees for airline travelers. More aggressive antitrust enforcement is urgently needed. Recent research has revealed a widespread practice of common ownership in the airline industry, whereby investment firms own large portions of rival airline companies. Although this practice leads to higher prices and reduced competition, antitrust regulators, from the DOT to the Department of Justice and the Federal Trade Commission, have declined to take action. This Note argues that the DOT has the clear legal authority—and the responsibility—under section 411 to address common ownership among airlines by promulgating a rule that limits investors’ ability to own large shares of multiple airlines. DOT regulation in this area could pave the way for more muscular antitrust regulation among industry-specific agencies.
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Manalu, Haposan Vincentius, Demas Haryo Bismantoko, Oktaviana Putri, and Kresna Adi Mahendra. "Revenue Management Strategies in Airline Industry: A Literature Review." Jurnal Sistem Teknik Industri 26, no. 1 (January 29, 2024): 93–102. http://dx.doi.org/10.32734/jsti.v26i1.14363.
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The airline industry has rapidly evolved, fostering intense competition among companies. This competition drives airlines to formulate strategies for revenue maximization, giving rise to Revenue Management. This literature review spans the past 13 years, examining the development of Airline Revenue Management methods. By analyzing 22 journals with at least Q2 and SINTA 2 indexing, three primary scopes emerge: Quantity Decision, Pricing Decision, and Structural Decision. Airlines predominantly employ dynamic pricing and programming to optimize revenue by adapting to ongoing changes. The development trend in Airline Revenue Management indicates a shift towards faster and more accurate processing through increased integration with simulation and algorithm programming. This paper identifies the three main scopes involved in revenue management strategies and explores the diverse approaches airlines take to optimize income. Notably, dynamic pricing and programming remain prevalent methods, adapting to changing decision variables. The evolving landscape emphasizes integration with advanced technology for efficient processing. The study utilizes numerical and case studies to exemplify the ongoing development of Airline Revenue Management methods within this dynamic industry.
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Kasim, Kiraci, and Bakir Mahmut. "Evaluation of Airlines Performance Using an Integrated Critic and Codas Methodology: The Case of Star Alliance Member Airlines." Studies in Business and Economics 15, no. 1 (April 1, 2020): 83–99. http://dx.doi.org/10.2478/sbe-2020-0008.
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AbstractIn the airline industry where intense competition has taken place, performance evaluation is vital for airlines to achieve their goals and to gain a competitive advantage. This study aims to evaluate the performance of airlines based on the role of performance evaluation in the airline industry. For this purpose, twelve FSCs (Full-Service Carriers) were evaluated based on financial and airline-specific performance indicators for the 2015-2017 period. While the sample consisted of Star Alliance member airlines, an integrated CRITIC and CODAS methodology was proposed in the study. In addition, a sensitivity analysis was performed after the application to examine the accuracy and the stability of the results. The results of the study reveal that financial indicators have a higher impact on performance compared to operational indicators. Moreover, Singapore Airline (SIA) is the best airline regardless of T change.
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KALEMBA, Nicole, Fernando CAMPA-PLANAS, Ana Beatriz HERNÁNDEZ-LARA, and Maria Victòria SÁNCHEZ-REBULL. "Service quality and economic performance in the US airline business." Aviation 21, no. 3 (March 8, 2018): 102–10. http://dx.doi.org/10.3846/16487788.2017.1378266.
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In order to cover this goal, four quality indexes related to the airline industry, and two economic performance. In order to cover this goal, four quality indexes related to the airline industry, and two economic performance indicators, revenues and return on investment (ROI), have been considered. Data from American airline companies from 2006 to 2013 have been used to determine if airlines’ profitability increases when service quality improves. Considering the effects on airlines’ profitability, the results confirm the positive and significant influence of service quality on the ROI of the US airline companies. A non-significant effect was found for airline revenues in relation to quality No previous research in this area has been done so these findings could encourage airline companies to invest in quality, since this policy can have a positive return on their profitability.
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ROTHKOPF, MAXIMILIAN, and ANDREAS WALD. "INNOVATION IN COMMODITIZED SERVICES: A STUDY IN THE PASSENGER AIRLINE INDUSTRY." International Journal of Innovation Management 15, no. 04 (August 2011): 731–53. http://dx.doi.org/10.1142/s1363919611003301.
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The purpose of this study is to analyze how innovation is leveraged in a commoditized service industry. Focusing on the passenger airline industry, we describe the characteristics of commoditized industries and show how the airline industry fulfills these criteria. Based on a sample of 30 airlines, we detect patterns of innovations and explore how airlines utilize innovation in the various categories. We present two case studies to demonstrate different approaches to innovation. Based on these findings, we develop a framework that suggests innovation priorities for different business models. Finally, we propose four levers to expand the core service offering and to successfully position an airline in a commoditized market environment.
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Farida, Yuniar, Husna Nur Laili, Achmad Teguh Wibowo, Latifatun Nadya Desinaini, and Silvia Kartika Sari. "Selecting the Best-Performing Low-Cost Carrier (LCC) Airlines Using Analytical Hierarchy Process (AHP) and Elimination et Choix Traduisant la Realite (ELECTRE)." Journal of Information Systems Engineering and Business Intelligence 8, no. 2 (October 29, 2022): 196–206. http://dx.doi.org/10.20473/jisebi.8.2.196-206.
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Background: Low-cost carrier (LCC) is a popular air transportation service as it offers affordable fares. Many airlines have adopted the LCC system because they need to adapt to the changes in the airline industry. The competition is tight. Despite the low cost, consumers demand quality services. Therefore, LCC airlines need to find their competitive edge. Objective: This study aims to determine the best-performing LCC airlines, the criteria, and the sub-criteria to improve the performance. Methods: This study uses two methods from multi-criteria decision-making (MCDM), namely the analytical hierarchy process (AHP) and elimination et choix traduisant la realite (ELECTRE) II. The MCDM is selected for this study because there are four criteria and 21 sub-criteria to evaluate airline performance. The AHP method selects subcriteria that affect airline customer satisfaction. It solves complex problems by establishing a hierarchy. After being assessed by relevant parties, weights or priorities are developed. The results are used to determine the best-performing airline. Meanwhile, the ELECTRE II method ranks the airline’s alternatives. This method is straightforward and widely used in the MCDM. Results: The results indicate that four criteria and 18 sub-criteria affect the performance of LCC airlines in Indonesia. The LCC airline with the best performance is AirAsia, followed by Citilink, Wings Air, and Lion Air. Conclusion: This research integrates the AHP and ELECTRE II methods in evaluating the performance of LCC airlines. This research also provides information about the criteria and sub-criteria to improve airline performance, hence, the customer experience.
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Rose, Nancy L. "Fear of Flying? Economic Analyses of Airline Safety." Journal of Economic Perspectives 6, no. 2 (May 1, 1992): 75–94. http://dx.doi.org/10.1257/jep.6.2.75.
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The safety of the commercial airline industry has attracted considerable attention in the wake of airline deregulation, amid growing concerns that the historical superiority of U.S. jet carriers' safety records may have been linked to economic regulation of the industry by the Civil Aeronautics Board. These worries have energized economic research on a broad range of questions relating to airline safety. I describe our progress in answering four questions: First, has airline safety declined since deregulation? Second, how has airline deregulation affected the safety of travelers overall, (taking into account indirect channels through which airline deregulation may have changed travel risks, including the substitution of commuter airlines for jet service and the replacement of highway driving by air travel)? Third, what accounts for differences in safety performance across carriers? Fourth, what are the market penalties for airline accidents? (If consumers and insurance companies penalize airlines with worse safety records, carriers may be disinclined to reduce safety investment, even if regulatory changes would permit them to do so.)
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Shaheed Khan, Freeda Maria Swarna M, and R. Kannan. "Airlines in India, the era of Sustainable Leadership through new ‘Business Combinations’ in reshaping the tourism and hospitality Industry." international journal of engineering technology and management sciences 7, no. 4 (2023): 214–34. http://dx.doi.org/10.46647/ijetms.2023.v07i04.031.
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India was one of the earliest to have an Airline of its own when the Tata Group started an Airline in 1932. Post-Independence, Tata Airline which was rechristened as Air India was taken over by the Government in 1953. Then it was the tumultuous growth, development, and unfortunate fall of Air India/Indian Airlines. By 1991 the 1953 Law of Airlines (Air Corporation Act) was repealed and Private Airlines came into the picture. After which Indian skies underwent a phenomenal change. The research paper will focus on the way private sector has provided for Leadership on the Airline Segment through ‘business combinations’ that have helped ensure a versatile business segment. With coming back of the Tata group into the Airline business with Vistara and Air Asia India and the final take-over of Air India on 27th January 2022, Airlines was seeing a new Leadership emerge. Coming on page of Akasa Airline too has brought about a phenomenal business opportunity and a fillip for tourism and hospitality.
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Havlovic, Stephen. "TRANSNATIONAL REPRESENTATION BY EUROPEAN WORKS COUNCILS IN THE PASSENGER AIRLINE INDUSTRY." Journal of Air Transport Studies 11, no. 1 (January 1, 2020): 1–10. http://dx.doi.org/10.38008/jats.v11i1.151.
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Mergers and acquisitions have reduced the number of European Works Councils (EWCs) in the airline industry over the past two decades. In addition, start-up low-cost airlines have been reluctant to form EWCs. Only 5 of the 11 eligible transnational passenger airlines have established EWCs. This limited number of airline EWCs reduces airline employees' opportunity to be involved in strategic decision making in areas such as tourism. All of the available EWC agreements provide the opportunity for management and employee member consultation, the offering of opinions, and providing information related to European transnational operations. The Lufthansa Group and the International Airlines Group EWC agreements contain more subject areas for discussion than the Air France-KLM agreement. Only the Lufthansa Group EWC agreement includes the topic of environmental protection.
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Yoon, Jihee, Seohyun Lee, Minji Hong, and Sungmin Choi. "Examining the Efficient Risk Management Strategy of Korean Air during the Pandemic: Comparison with AAL, AF-KLM, DAL, and SIA." Journal of International Business and Economy 21, no. 2 (July 1, 2020): 97–115. http://dx.doi.org/10.51240/jibe.2020.2.4.
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The airline industry is one of the industries that were the most severely affected by the spread of COVID-19. As the travel demand was plunged, some airlines declared bankruptcies while others took strategies to cut the expenditures and revise the revenue stream (from the passenger flights to air freight). In this study, we assess the performance of Korean Air by examining the economic cost of COVID-19 on the overall airline industry and discussing how airlines coped with the plunged demands. Additionally, we examine the effect of external factors including government policies on each airline’s performance. In the end, the study highlights the significance of flexibility and agility in business decisions, especially when it comes to the decisions for risk management. In doing so, this study addresses the question, what is the most critical factor for business strategies that contribute to successful risk management?
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Yao, Yubing. "The Environmental Impact on the Airline Industry and Financial Analysis of Air China, China Southern Airlines, and China Eastern Airlines." Highlights in Business, Economics and Management 19 (November 2, 2023): 95–100. http://dx.doi.org/10.54097/hbem.v19i.11792.
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This paper presents a comprehensive overview of the environmental impact on the airline industry, focusing on three of China's largest airlines - Air China, China Southern Airlines, and China Eastern Airlines. It provides a financial analysis of these airlines using the Capital Asset Pricing Model (CAPM). It includes a literature review to underline the importance of environmental factors on the industry and its financial performance. Scrutinizes the reciprocal relationship between the environment and the airline industry, focusing on how environmental factors influence the industry. The study involves reviewing the literature on physical environmental factors, policy-related factors, and the industry's response to these influences. The objective is to comprehensively understand the ecological impacts on the industry and the consequent strategic adjustments and technological innovations being undertaken.
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Min, Hokey, and Hyesung Min. "Benchmarking the service quality of airlines in the United States: an exploratory analysis." Benchmarking: An International Journal 22, no. 5 (July 6, 2015): 734–51. http://dx.doi.org/10.1108/bij-03-2013-0029.
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Purpose – The purpose of this paper is to help airlines gain a better understanding of passengers’ service concerns, identify opportunities for continuous service improvement, and then develop service benchmarking standards that can be a yardstick for the airline’s competitiveness. Design/methodology/approach – This paper develops a set of target performance standards that helps airlines monitor their service delivery process, identify relative weaknesses, and take corrective actions for continuous service improvements using exploratory data analysis and competitive gap analysis. Findings – This study reveals that a service attribute considered most important to the airline customers’ impressions of service quality are air safety. This result reflects a growing concern over potential terrorism against airlines in the wake of the September 11 incident. The authors also found that proper baggage handling, competitive airfare, and on-time arrival/departure were next most important service attributes, whereas frequent flier and code-sharing programs were least important. Furthermore, the authors discovered that airline passengers’ perceived service quality influenced their choice of airlines. That is to say, airline service quality can be an important gauge of airline market share and revenue. Research limitations/implications – The current study is limited to the evaluation of comparative service quality of airlines in the USA. Thus, this study cannot be generalized to the airline passengers’ perceived service quality in other countries or different cultural settings. Also, this paper focuses on the performance aspect of benchmarking rather than the strategic aspect of benchmarking. Practical implications – With rising costs of fuel, labor, maintenance, and security, many airlines are at a crossroads where they have to decide between succumbing to restructuring pressures in a form of mergers/acquisitions and reinventing their service offerings. One viable means of reinventing airline service offerings is to learn more about what airline passengers truly value and appreciate in terms of service offerings and then figure out what it takes to win the hearts of customers and then how the airline can differentiate its service offering from those of its competitors. With this in mind, this paper develops viable service improvement strategies for the airline that can enhance its competitiveness in the struggling airline industry. Originality/value – This paper is one of a few attempts to identify a list of service attributes most important to airline service quality based on the actual survey of airline passengers, and then develop a benchmark standard of airlines in the USA from a customer (passenger) perspective.
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Iyengar, M. Srividya, and Dr Venkatesh R. "CONSEQUENCES OF COVID-19 ON AVIATION INDUSTRY: A MENACE TO GLOBAL AIRLINES." Salud, Ciencia y Tecnología - Serie de Conferencias 3 (May 6, 2024): 687. http://dx.doi.org/10.56294/sctconf2024687.
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The aviation industry has been considered one of the major contributors to the economy of nations for several decades. As a sub-sector of the aviation industry, airlines are considered the fastest mode of transportation for passengers and cargo across the globe. Since its invention, airlines have served millions of people to move from one country to another as well as within the country. Despite natural calamities and global war affairs, the airline industry has achieved immense growth in recent decades. In addition to the progress of airlines, coronavirus disease 2019 (COVID-19) has become a major hindrance to providing services to people around the world. Due to the rapid spread of deadly diseases, several airline firms have halted their air travel services in many parts of the world. As lockdowns and travel restrictions were enforced, this article examines the crisis of the airline industry after the onset of the COVID-19 pandemic.
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Dempere, Juan, and Kennedy Modugu. "Tourist destination competitiveness and ESG performance in the airline industry." Problems and Perspectives in Management 20, no. 4 (November 8, 2022): 153–65. http://dx.doi.org/10.21511/ppm.20(4).2022.12.
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The relevance of corporate environmental, social, and governance performance (ESG) has increased significantly during the last few years. The airline industry is susceptible to such environmental, social, and governance practices, which explains its selection for the analysis purposes in this study. This paper analyzes the influence of the Travel &amp; Tourism Competitiveness Index and its constituent factors on environmental, social, and governance performance variables in a sample of leading airline companies worldwide with historical data available from 2013 to 2019. The study required analyzing panel data using a panel-corrected standard error model. The results suggest that airlines headquartered in countries with ideal conditions for operating businesses and outstanding information and communication technology readiness show excellent environmental, social, and governance performance. However, the findings also imply that airline companies headquartered in countries with heavy government influence on the airline industry sector measured by the government prioritization of the domestic travel and tourism sector have poor environmental, social, and governance performance. Similarly, the analysis provided evidence that countries well positioned to join national air service arrangements and subscribe to regional trade agreements have airline companies with excellent environmental, social, and governance performance metrics. The reported results can be priceless for policymakers designing national travel and tourism policies to enhance domestic airline firms’ environmental, social, and governance performance.
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Singh, Alok Kumar. "Competitive service quality benchmarking in airline industry using AHP." Benchmarking: An International Journal 23, no. 4 (May 3, 2016): 768–91. http://dx.doi.org/10.1108/bij-05-2013-0061.
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Purpose – The purpose of this paper is to measure competitive service quality (SQ) performances of domestic full service airlines in India by providing a framework based on analytic hierarchy process (AHP), in order to benchmark their SQ thus, enhancing competitiveness and gaining competitive advantage. Design/methodology/approach – The present study has used the AHP methodology to benchmark the SQ of airlines in India. Subsequently, competitive SQ gap analysis is performed to evaluate and compare strength and weakness of focal firm (Airline “B”) against its competitors. Findings – In this research work, total of 23 SQ attributes and five dimensions have been identified based on extensive literature review, focus group brainstorming and experts opinion from the Indian airline industry. The study reveals that air travelers rate assurance as the most important criteria and safety as the most important sub criteria followed by on time performance, performing the services right, the first time and remedial process for delayed or missing baggage. Furthermore, based on AHP methodology, the result shows that Airline “A” has emerged as a market leader and is considered as a benchmark airline. Practical implications – This framework will help airline management and policy makers to identify area of service improvements and identify SQ gaps with respect to the benchmark airline. This will help in formulating suitable competitive strategies for SQ improvements, thus gaining competitive advantage. Originality/value – In this research work, AHP-based SQ framework have been applied in Indian domestic aviation industry for competitive SQ benchmarking which is a novel contribution, thus widening the existing knowledge base in aviation SQ literature.
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Lee, Kyoungmi. "Analysis for Structural Relationship of Consumer Responses ESG on Airline industry." Global Knowledge and Convergence Association 6, no. 2 (December 31, 2023): 207–31. http://dx.doi.org/10.47636/gkca.2023.6.2.207.
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Airlines companise have continued to contribute to society by taking advantage of each airline’s strengths, such as eco-friendly, co-existence, talent development. In addition, the airline industry’s interest in ESG management and investment is increasing than ever as the European Union (EU) stipulates that all aviation oil used will be mixed with Sustainable Aviation Fuel (SAF) from 2025. In particular, ESG(environmental, social, and governance) elements are increasing interest not only in individual companies but also at the national level. As such, ESG management is generally an important concern for various companies at a strategic level for corporate sustainability. Accordingly, This study attempted to investigate the impact of airlines’ ESG management activities on consumer attitudes, service evaluation, and corporate support and trust. ESG management activities were classified by each activity field, and the effects and relative effects of these efforts on customer attitudes were considered among various stakeholders. Through this study, we presented a measurement scale that can measure an airline’s ESG activities in a balanced manner across all environmental, social, and governance activities from the consumer’s perspective. In addition, the ESG management scale has practical significance in that airlines can comprehensively measure consumers’ perceptions and reactions to ESG activities and re-strategize them.
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Adamolugbe, Labake Temitope, Chijioke Udechukwu Akpudo, Mobolaji Stephen Stephens, and Chukwuemeka Albert Enyinda. "Factors Influencing the Airline Decision-Making Process in Planning Pricing Mechanisms in the Nigerian Aviation Industry." International Journal of Research and Innovation in Social Science VII, no. XI (December 7, 2023): 752–62. http://dx.doi.org/10.47772/ijriss.2023.7011058.
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The airline industry is faced with a lot of challenges based on their various operations in terms of the carriage of goods and passengers. Part of this challenge is the issue of the best pricing strategies to be adopted. Prior to setting fare, the airline industry considered a number factors before the decision is implemented looking at customer satisfaction and profit making. Therefore, based on that, this study set out to assess the factors that influence airline pricing decisions in the Nigerian airline industry. The scope of the study covers all the domestic airlines operating in Nigeria. A questionnaire was administered to three hundred forty-nine staff consist of three categories of staffers (directorate, managerial, and supervisory) of all the domestic airlines in Nigeria. The collected data were analyzed using multiple regression analysis. Eleven variables (factors) were selected as attributes and tested. These include: demand, cost of inputs and supply, prevailing market airfare price, prices (fares) of alternative modes, route status, period (time) of supply and demand, distance between origin and destination, landing fees, availability of slots in peak periods, security on the origin-destination (O-D) market, and availability of aircraft maintenance. The results revealed that distance between the origin and destination, time of supply, and demand are the most significant factors influencing airline pricing decisions in the Nigerian airline industry. Therefore, based on the findings of the study, the study recommends that the airline industry must ensure that passengers are fully informed if prices are changed and also ensure the security of passengers from origin to destination.
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Wilczek, Ronald. "Theory of product policy and practices in airlines." AUTOBUSY – Technika, Eksploatacja, Systemy Transportowe 24, no. 6 (June 30, 2019): 425–27. http://dx.doi.org/10.24136/atest.2019.186.
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Pricing and product policy in the airline industry is very complex and different from other industries, thus a successful airline has to manage its products and pricing perfectly, otherwise it will not succeed on the extremely competitive airlines market. This paper has two main goals, firstly to generally define product policy and secondly to show the product policy of airlines. Currently, airlines operate in a very competitive industry with little to no option to differentiate their product which leads to low profitability. New Distribution Capability and another new technology have the potential to increase airlines’ revenue by better price discrimination and more personalization.
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Wang, Chia-Nan, Tsang-Ta Tsai, Hsien-Pin Hsu, and Le-Hoang Nguyen. "Performance Evaluation of Major Asian Airline Companies Using DEA Window Model and Grey Theory." Sustainability 11, no. 9 (May 13, 2019): 2701. http://dx.doi.org/10.3390/su11092701.
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Being an essential part of the global transport system, airline transportation is capable of delivering fast service for passengers and commodities. In the past decade, the Asia aviation industry has experienced a high growth rate of transport due to higher economic development in this area, and this trend is expected to continue in the next two decades. However, competition in the Asia aviation industry will increase dramatically. To survive in the Asia aviation industry, the Asia airline companies should understand their current and future performance. A methodology for this purpose is required. This paper proposes a hybrid approach, combining Grey model GM(1,1) and Data Envelopment Analysis (DEA) Window model, to satisfy this need. The hybrid approach proposed in this research has been used to evaluate the current and future performance of 16 major Asia airline companies. The DEA Window analysis showed that airline companies Emirates, Cebu Pacific, and Sri Lankan were leading companies in the time period of 2012 to 2016, while Singapore Airlines, Japan Airlines, and All Nippon Airways followed behind. We found that Chinese airline corporations are rising in the Asia aviation industry. All 16 Asia airline companies studied in the research were found to improve their productivity in the time period of 2017 to 2021 as their Malmquist productivity indexes (MPIs) are greater than 1.
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Kalemba, Nicole, and Fernando Campa-Planas. "SSAFETY AND THE ECONOMIC AND FINANCIAL PERFORMANCE IN THE AIRLINE INDUSTRY: IS THERE ANY RELATIONSHIP?" Aviation 23, no. 1 (April 30, 2019): 7–14. http://dx.doi.org/10.3846/aviation.2019.9744.
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Safety has always been and is a key management aspect in the airline industry. Airline companies, airport management, aviation staff and air traffic control perform the impossible to ensure the lowest possible number of accidents and incidents for minimizing the number of fatalities. The main objective of this paper is first, to determine and analyze literature published concerning safety in the airline business and, second, to see the relationship between safety and other related economic and financial indicators. The sample used is a collection of international airlines included in the JACDEC safety index, considering longitudinal data for the years 2011−2015. The results revealed a non-significant effect for safety on the profitability of the airline companies, whereas a significant effect of safety on airlines’ revenues was shown.
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Fernando, Yudi, Norizan Mat Saad, Mahmod Sabri Haron, and Suhaiza Zailani. "The Development of Synergy Model on Internal and External Suppliers for Asian Airlines Industry." International Journal of Applied Logistics 2, no. 1 (January 2011): 17–34. http://dx.doi.org/10.4018/ijal.2011010102.
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This paper examines the airline industry to develop a synergy model in internal and external suppliers for Asian airlines industry. An extensive literature review is conducted to present a synergy model to develop Asian airline competitiveness, safety and service quality. The literature review is highlighted to seek the relationships between internal marketing and internal service quality and identify whether the relation of supplier can moderate them. The review reveals that a synergy model based on internal marketing, internal service quality and supplier relations can overcome the Asian industrial phenomenon, especially in maintaining the service consistency and competitiveness. This model is needed for developing airline service and safety. Research in airline business is critical, as the quality of the airline service is declining in contrast with this industry’s growth. This paper provides insight into two important suppliers needed for the success of the airline industry.
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Law, Colin. "The study of customer relationship management in Thai airline industry: A case of Thai travelers in Thailand." Journal of Airline and Airport Management 7, no. 1 (February 17, 2017): 13. http://dx.doi.org/10.3926/jairm.86.
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Purpose: This paper offer marketing strategy suggestion to the airlines operating within the Thai aviation market. It identifies the recommended motivational factors that influence the airline customers’ decision to their airline choices. Airlines use different customer relationship management programs to attract returning customers. This paper suggested the most attractive motivation factors for Thailand's air travel market.Design/methodology/approach: This research paper is an attempt to study and identify the factors, including loyalty program, distribution channel, customer services, promotions and other influence causes that affected the customer preference in the airline ticket purchasing behavior in Thailand.A questionnaire survey was conducted with the sample identified through unrestricted non probability sampling technique at four major airports in Thailand. The data collected are analyzed to identify the favorable drivers that lead to customer decision on airline choice.Findings: The result from the study has demonstrated that price, and promotion has a significant impact on customer preference and positively leads to repurchase intention for their future travel. Moreover, flight schedules are also a main factor influencing the travelers’ final decision on airline choice. However, when the promotional strategies and schedule are comparable between airlines, customers are attracted by the airline amenities and services. Loyalty program (frequent-flier program flier program) is showing a less attractive motivator while distribution channel demonstrates the least important affecting the travelers’ choice of airline.Originality/value: The paper begins with an overview of previous research in the area of airlines customer relationship management and then moves on to what is currently being implemented by the airlines. The authors then propose several customer relationship strategies and identify the most attractive one that motivates the Thai consumers.
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Scrimgeour, Frank, Rikkie Stevenson, and Geeta Duppati. "Corporate governance in the airline industry - evidence from the Asia-Pacific region." Corporate Ownership and Control 13, no. 2 (2016): 329–35. http://dx.doi.org/10.22495/cocv13i2clp2.
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Globally airline performance has been variable with poor performance undermining the confidence of travelers, investors, Governments and other stakeholders. Airline corporate governance is a key determinant of airline performance. However, the relationships between governance and performance is complicated by the diversity of governance arrangements surrounding airlines. This study utilizes the four level model of Scrimgeour and Duppati (2014) to analyze the strengths and weaknesses of airline governance in the Asia Pacific region. Data from firm performance and firm behavior are analyzed for a 14-year period given governance and business choices occur at all stages of the business cycle and governance decisions have impact over multiple periods. Improving trust in the airline industry requires attention to all four levels of governance in a manner consistent with national and international business contexts
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Kutscher, Erika. "A spinoffs study applied to the airline industry." Journal of Transport Literature 8, no. 2 (April 2014): 134–77. http://dx.doi.org/10.1590/s2238-10312014000200007.
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Airlines have been recently debated the management of some of their non-core divisions, such as the Frequent Flyer Program (FFP). A spinoff is a form of corporate contraction that many companies have recently chosen. Through a spinoff, both the parent company and the divested subsidiary can each focus on their own activity, which translates into a better performance of both entities. This paper studies the circumstances in which a spinoff is a good strategy to pursue, along with some important issues that must be considered when reaching agreements. Spinoffs are basically a "downsizing" of the parent firm; therefore, the smaller firm must be economically more viable by itself than as a part of its parent company. The motivation for analyzing this particular topic comes from a question of current interest: Under what circumstances is it advantageous for an airline to spin off its Frequent Flyer Program, or other divisions that are not related with the airline's operation? In this paper, an extensive literature review introduces the reader to the different forms of corporate contraction and their performance under different circumstances. Three cases related to the airline industry follow: the spinoffs of TripAdvisor from the web agency Expedia, of Air Canada's FFP Aeroplan, and of American Airline's distribution system Sabre. These three cases illustrate some of the key issues that must be carefully considered when spinning off a subsidiary. The paper concludes that spinoffs are a smart strategy when the focus of the spun off division is different from that of the parent company. However, to safeguard future business relationships, the two entities must negotiate detailed agreements that are robust enough to perform successfully in all foreseeable circumstances.
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Leon, Steven, and Abigail Leon. "Exploring personality moderation effects on satisfaction and loyalty in the airline industry." Journal of Airline and Airport Management 13, no. 1 (March 28, 2023): 31. http://dx.doi.org/10.3926/jairm.357.
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Purpose: The United States airline industry is a highly competitive industry. Airlines could benefit from satisfied and loyal customers. This study investigates the effect of personality traits of airline consumers on satisfaction and loyalty in the U.S. airline market.Design/methodology/approach: An online survey was constructed to measure the “big five” personality traits, service quality, satisfaction, and loyalty. Data were collected using Amazon Mechanical Turk, resulting in 624 respondents. Factor analysis was conducted using principal component extraction and varimax rotation.Findings: The results show that service quality, openness, agreeableness, and conscientiousness influence airline satisfaction, while satisfaction, neuroticism and openness influence behavioral intention loyalty. When moderation effects were examined, openness was the only moderating personality trait.Originality/value: This research examined the big-five personality traits, often not investigated in airline satisfaction and loyalty studies. This study offers several managerial insights and theoretical implications that practitioners and researchers who are interested in airline satisfaction and loyalty might use. Further, this study may provide a foundation for future research in airline and airport satisfaction, loyalty and service quality.
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Suk, Minho, and Wonjoon Kim. "COVID-19 and the airline industry: crisis management and resilience." Tourism Review 76, no. 4 (July 5, 2021): 984–98. http://dx.doi.org/10.1108/tr-07-2020-0348.
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Purpose The COVID-19 pandemic has triggered a time of crisis and uncertainty for the air transportation industry. The gloomy prospects for the industry have stretched business resilience to a critical point. The crisis has caused damage and shock that the aviation industry has never endured before. This paper aims to provide a comprehensive understanding of both internally and externally generated airline response strategies by examining business practices for crisis management. Design/methodology/approach This study screened research papers and economic reports from authoritative organizations including the International Air Transport Association, International Civil Aviation Organization, World Health Organization and United Nations World Tourism Organization from December 2019 (the month in which the COVID-19 outbreak occurred) to March 2021 (the most recent month at present). The authors also integrated publicly recognized news articles to cover a wide range of business practices in the airline industry. The authors conducted thematic analysis by filtering news articles and economic reports that mentioned the keywords “COVID-19,” “pandemic,” “CoV-2,” “coronavirus” and “corona.” The authors coded the airlines’ response actions along the two-axis matrix (time and magnitude) and generated insights in a timely manner. Findings Major airlines have modified decision-making in relation to the exponential spread of the virus, which is in direct proportion to the deterioration level in the airline industry. When the impact was low in the early stage, major airlines maintained their status quo. Before long, the magnitude of the destruction became high, which made airlines implement capacity adjustments and request government relief measures. As industrial deterioration deepens, airlines keep calling for state aid packages and have changed their focus to the cargo transportation of high-demand commodities and pharmaceutical supplies. Lastly, industrial adversity and uncertainty have made them defer aggressive takeover opportunities. Originality/value Several researchers have investigated the impacts of the COVID-19 on the airline industry. However, there remains a dearth of scholarship on the hampered business activities and crisis management of the airline industry. In the absence of sufficient response strategies against the COVID-19 panic, this paper is to provide a comprehensive understanding of the major airlines’ response strategies to the COVID-19 pandemic. In addition, this paper yields an opportunity for on-site management to review how major global airlines have responded to the crisis and find managerial insights to restore their business sustainability.
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Foote, Hannah. "Delayed Flights and Delayed Rights: It is Time for the United States to Follow the European Union’s Lead and Enact More Regulations to Protect Airline Passengers." Journal of Air Law and Commerce 88, no. 4 (2023): 919. http://dx.doi.org/10.25172/jalc.88.4.7.
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Since Congress passed the Airline Deregulation Act of 1978, travelers have benefitted from airline deregulation through discounted prices and greater access to air travel, but these benefits have largely been offset by the reality that many airline passengers are unsatisfied with the airline industry’s customer service, or lack thereof. This Comment argues that the United States should follow the European Union’s lead and, in accordance with Regulation EC 261, require airlines to compensate passengers when their flights are delayed or canceled. The concentrated aviation industry has created a market that does not adequately protect airline passengers, and the courts have not provided passengers with an adequate venue for relief. Enacting legislation similar to Regulation EC 261 would make airlines accountable, improve service at a marginally low cost, and generate a more uniform standard of airline passenger rights, creating more transparency and certainty for both airlines and passengers.
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Dana, James D., and Eugene Orlov. "Internet Penetration and Capacity Utilization in the US Airline Industry." American Economic Journal: Microeconomics 6, no. 4 (November 1, 2014): 106–37. http://dx.doi.org/10.1257/mic.6.4.106.
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Airline capacity utilization increased dramatically between 1993 and 2007, after staying fairly level following deregulation in 1978. We argue that consumers' use of the Internet to investigate and purchase airline tickets reduces market frictions and allows airlines to meet demand with less capacity and higher load factors. We find that differences in the rate of change of metropolitan-area Internet penetration are positively correlated with differences in the rate of change of airlines' airport-pair load factors. Consistent with our explanation, this correlation is greater on flights in more competitive markets and on flights with fewer total passengers. (JEL L11, L86, L93, M15)
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Qi, Zhouyang. "Analysis of South West Airlines Management and Logistic Plan." Highlights in Business, Economics and Management 24 (January 22, 2024): 240–47. http://dx.doi.org/10.54097/dgdbwd58.
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Southwest Airlines has turned into a precursor in the competitive airline market, this is because of its novel management and operations procedure. Therefore, investigating its extraordinary strategies, benefits, difficulties, and impacts on the airline's operations gives substantial recommendations for its future development. Southwest Airlines is a spearheading low-cost airliner known for its obligation to client-centricity and functional proficiency, which is plentifully shown by its extraordinary administration and coordinated operations plan. The "Southwest Way" culture, which advances employee empowerment and outstanding client support, is at its core. The point-to-point route structure of the airline augments productivity by diminishing intricacy and working with fast airplane turnarounds. This procedure works on functional adaptability and cost viability and is upheld by a normalized Boeing 737 fleet. Furthermore, Southwest increases airplane usage and income creation by focusing on short-haul trips. Nonetheless, because of the restrictions of the point-to-point idea, significant distance and global extension face difficulties. However, the essay proposes strategic ideas, like worldwide market extension, state-of-the-art administrative procedures, environmentally friendly logistics, and computerized change. These actions ensure progressing thriving, ecologically dependable activities, and unrivaled client encounters. To introduce Southwest Airlines as an aeronautics pioneer, this paper explores its mind-blowing way, which was set apart by remarkable procedures, difficulties, and steadfast purpose. In spite of difficulties, Southwest's beliefs, and employee-focused culture fueled the development and increased industry expectations. The paper examines how these components impact advancement and development.
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Kiziltas, Elif B., Zeynep Sener, and Mehtap Dursun. "Evaluating Freight Forwarders in the Air Cargo Industry." International Journal of Economics and Statistics 9 (December 29, 2021): 97–101. http://dx.doi.org/10.46300/9103.2021.9.15.
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Freight forwarders are of great importance in the air cargo industry. As the cargo revenue constitutes an important source for airline companies, the evaluation of freight forwarders is vital for airlines’ success. This study employs DEMATEL method in order to prioritize the determined criteria for evaluating freight forwarders from the point of view of an airline. The calculated importance weights are used in an illustrative problem where the ranking of freight forwarders are obtained by employing the simple additive weighting method.
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Huettinger, Maik. "What determines the business activities in the airline industry? A theoretical framework." Baltic Journal of Management 9, no. 1 (December 20, 2013): 71–90. http://dx.doi.org/10.1108/bjm-04-2013-0053.
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Purpose – The main purpose of this paper is to create a model, which specifies the determinants of the airline business. This sector is chosen, as the airline industry is not only influenced by national characteristics, but also characterized by international standards and internationalization processes. Design/methodology/approach – In this paper, a systematic analysis of the research published over the past decades is carried out. This analysis incorporates the most acknowledged concepts and works in the field of airline management. Findings – The main determinants of the airline business are identified as: national culture, airline alliances, the implementation of the low-fare business model, the influence of the state on business, and the impact of market liberalization. The modern airline industry can be partially seen as an embodiment of the neoliberal ideas of the 1990s. Practical implications – The model may be used by academics and practitioners who work in the area of airline business management. Specifically in the case of a merger between two airlines, the model might serve as a useful tool to analyze potential synergies. Originality/value – Although various research has been conducted on describing the way that airline business is done, little focus has been paid on the factors that actually determine and change it. This paper analyzes the unique industry variables by which the airline industry is driven and determined.
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Kuz, Anastasiia, and Algirdas Miskinis. "The Impact of Globalization on European Airline Market." Ekonomika 100, no. 1 (April 22, 2021): 117–38. http://dx.doi.org/10.15388/ekon.2021.1.7.
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Airline industry is very important for modern society as the biggest player in the globalization process by connecting regions, promoting global trade and tourism, facilitating economic and social development. However, here is a lack of research on relationship between globalization and airline industry in Europe. It remains unclear how to measure the impact of globalization on performance of airline companies and industry. The article aims at investigation of the impact of globalization on operational and financial performance of European airlines before pandemics.The authors applied a nonexperimental quantitative research design to analyze the relationship between independent globalization variables (level of globalization in Europe, globalization opportunity, globalization threat) and dependent airlines’ operational and financial performance indicators. Research is done using secondary data from annual reports of 19 European airlines members of European Common Aviation Area (ECAA). The panel data analysis was applied for 2007–2017 with multiple regression analysis using STATA. The results show that globalization exerts a significant positive effect on operational performance. On financial performance only revenue per passenger kilometers is positively influenced by globalization. Globalization affects low-cost airlines and full-service airlines performance differently.
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Hinton, Alicia L., and Diana HyunJin Malcolm. "Deregulating Consumers from the Airline Industry—DOT’s Proposed Rule in Response to U.S. Airlines’ Refusal to Refund Unused Tickets During COVID-19." Journal of Air Law and Commerce 88, no. 2 (2023): 433. http://dx.doi.org/10.25172/jalc.88.2.3.
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The COVID-19 pandemic has resulted in significant delays and cancellation of airline tickets without proper refunds to consumers by U.S. airlines. In response to an unprecedented number of consumer complaints, in August 2022, the Department of Transportation (Department or DOT) proposed new rules regarding airline ticket refunds and consumer protections.Does this rule go far enough? This article provides a summary of the events and policy changes leading up to the Airline Deregulation Act (ADA) of 1978 and challenges the scope of federal preemption over the field of airline regulation that has created a boon to air carriers while essentially eliminating consumers as a market influencer. A review of court opinions since the enactment of the ADA shows an ongoing struggle with the scope of preemption and tenuous carve-outs for private rights of action. The role and effectiveness of DOT is evaluated in light of airlines refusal to comply with DOT requirements to provide ticket refunds for cancelled flights during COVID. This article also suggests ways to increase airline accountability for compliance with airline refund policies and increase protection of consumer rights by empowering consumers to bring private actions against airlines.
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Almuqati, Mohammed. "Critical analyzed information of International Air Transport Association (Divulgation paper)." Nexo Revista Científica 34, no. 02 (June 9, 2021): 1065–74. http://dx.doi.org/10.5377/nexo.v34i02.11630.
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The International Air Transport Association aims at representing the airline industry by enhancing awareness about the benefits of airlines to the national economies, and in this way, improving decision making regarding airline activities. Integrity is an important value if at all member airlines are expected to have trust in the organization’s duty to protect their interest. The main benefit that airlines can gain in joining IATA is the ability to be adequately represented by an organization whose voice in the industry is powerful. Member airlines are also assured of financial success as IATA recommends best practices that should be implemented in order to uphold safety, environmental sustainability, and efficient processes. Ultimately, IATA’s role in championing for the rights of airlines has been influential, and the improved performance in the industry is evidence that the association’s efforts have been fruitful.
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MRÁZOVÁ, Mária, and Antonín KAZDA. "The direction of airlines business models – up or down? (Post Covid-19 crisis – case study)." INCAS BULLETIN 13, no. 1 (March 5, 2021): 263–74. http://dx.doi.org/10.13111/2066-8201.2021.13.1.27.
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This paper deals with airlines business models, mostly full service network carriers (FSNC) and low-cost carriers (LCC) and their position on the airline market. Covid-19 crisis causes many negative impacts on all airline industry. Hybridisation process in aviation industry is described many times in the past; now it has a stronger impact on airline business model development and it is oriented on different aspects than before. The paper emphasises the fact that low-cost carrier’s business model is much closer to the features of the FSNC carriers from the price point of view and vice versa. Furthermore, the authors introduce some other diversifications of airlines business models and the paper offers the new stimulus to move forward in this tough time for airlines business, paradoxically, thanks to Covid-19. Finally, yet importantly, the authors emphasise the important role of the state in the further direction of the airlines during and after the Covid-19 crisis
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Nataraja, Sundaram, and Beau Grantham. "RIVALRY AMONGST TOP-FIVE MAJOR AIRLINES IN THE U.S. MARKET." International Journal of Research -GRANTHAALAYAH 8, no. 7 (July 29, 2020): 160–73. http://dx.doi.org/10.29121/granthaalayah.v8.i7.2020.596.
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Understanding the economic characteristics of the U.S. airline industry, assessing the degree of competition/rivalry among the competing airline businesses in the U.S. airline industry, and (3) making recommendations to the airlines and to the consumers of air transportation are the primary objectives of this research study. The authors analyze the rivalry among major U.S. airlines operating in the domestic market using datasets extracted from Bureau of Transportation Statistics for operations during a 12-month period ending in May 2019. Amongst the 17 major U.S. airlines, whose annual operational revenue is over $1 billion, a set of top-five airlines has been identified using the percentage of their marketshare. The research findings indicate that these five major airlines have an intense rivalry in the U.S. domestic market in terms of number of markets served, number of departures made, number of passengers transported, amount of cargo carried, load factor, revenue and cost of operations, profit and loss, and net income earned. Hence, these airlines put pressure on one another and limit each other’s profit potential.
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Lestari, Yuliani Dwi, and Eko Agus Murjito. "Factor Determinants of Customer Satisfaction with Airline Services Using Big Data Approaches." Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB) 8, no. 1 (March 5, 2020): 34–42. http://dx.doi.org/10.21009/jpeb.008.1.4.
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In the commercial airline’s industry, customer satisfaction is critical. Due to increasingly fierce competition, customer satisfaction can affect airlines’ customer decisions in providing recommendations for prospective customers. For this reason, this study aims to explore the determinant factors that influence customer satisfaction and recommendations for the top 10 airlines listed on the Skytrax list. Using the big data approach, this study collected data from 10.189 customer reviews from 2012 to 2019. Based on the results of statistical analysis using binary logistic regression techniques, it was found that out of 7 factors, only 5 significantly influenced customer recommendations, namely airline rate, seat comfort, cabin staff service, food and beverages, and value for money. In-flight entertainment and ground services were not significant. The findings of this study contribute to strengthening the literature related to customer satisfaction in the airline sector, as well as managerial contributions to be used as a reference for airlines in improving service quality, particularly for long international flights.
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Herekoglu, Ahmet, and Özgür Kabak. "Spectral Clustering Approximation For Large Scale Crew Disruption Data Of An Airline Company For Intelligent Crew Recovery." Journal of Soft Computing and Decision Analytics 1, no. 1 (September 6, 2023): 139–60. http://dx.doi.org/10.31181/jscda11202315.
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In the airline industry, after fuel costs, the crew costs con- stitute airlines’ second-highest cost items. For this reason, an airline needs to manage the valuable crew resource effi- ciently. Deviations from plans are fact in airline business and fixing deviations from crew schedules that occurred during operations by minimizing the crew-related delays and associated costs is one of the most important opera- tional burdens of airlines. In this context, the analysis of crew disruption data is vital in order to find disruption characteristics. Clustering analysis is one of the key meth- ods for analyzing the disruption characteristics. In this context, although there have been satisfactory studies in the literature and applications in the industry for small and medium-sized airlines, there is no good solution or industry practice for airlines with extensive networks and fleets. This study aims to analyze and categorize large- scale crew disruption data of a European airline. The relationship between categories of crew disruption and variables such as flight and crew types etc., are determined, and the disruption characteristics are revealed. For this purpose, clusters hidden in the large data set are extracted by spectral clustering. Due to the large size of the input data, a new approximation approach for spectral clustering is introduced. With the help of this new approximation approach, spectral clustering techniques are applied within a limited computational power and time frame as most real world scenario require. Even if the data set is gathered from one airline, the characteristics that are derived from the data is representing most of the cases an airline may face today. and will serve as a basis for further estimation and analysis of crew disruption.
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Tiwari, Shalini Rahul, and Jyoti Kainth. "Malaysia Airlines: in search of a sustainable business model." Emerald Emerging Markets Case Studies 4, no. 7 (November 26, 2014): 1–10. http://dx.doi.org/10.1108/eemcs-03-2014-0069.
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Subject area Strategic Management/General Management. Study level/applicability MBA/Executive MBA. Case overview Malaysia Airlines (MAS) was incorporated in 1937 to operate in Singapore, Kuala Lumpur and Penang. The first period of crisis was witnessed in 1997/1998 due to the Asian Financial Crisis, MAS reported RM 260 million in losses. The airline recovered from the loss and reported profit of RM 461 million in 2004. However, it experienced another loss of RM 1.25 billion in 2005. This lead to implementation of the Business Turnaround Plan 1 in 2006. The Business Transformation Plan 2 was announced in 2008, but the period of losses hit the airline again in 2011. Overall, MAS has witnessed continuous cycle of losses and profits. Despite the turnaround efforts, the airline does not seem to be recovering; is there a safe landing for the troubled airlines? Expected learning outcomes The case can be used to illustrate economics and complexities of aviation industry, different business models existing in airline industry, quantitative and qualitative aspects of a turnaround strategy, failure to sustain turnaround efforts, and predicting the future scope for a player in airline industry. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
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Shivani, Lilender. "AIRLINE PRICING: HOW AIRLINES USE PRICING STRATGEIES." INTERANTIONAL JOURNAL OF SCIENTIFIC RESEARCH IN ENGINEERING AND MANAGEMENT 08, no. 04 (April 26, 2024): 1–5. http://dx.doi.org/10.55041/ijsrem31778.
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Airline pricing strategies play a pivotal role in the aviation industry's revenue management. This abstract explores the intricate mechanisms behind airline pricing, delving into the fundamental principles, factors, and techniques utilized by airlines to set fares. Drawing from a combination of academic research, industry reports, and real-world examples, this abstract provides a concise overview of the dynamic landscape of airline pricing. The abstract begins by elucidating the core objectives of airline pricing strategies, emphasizing the dual goals of maximizing revenue and optimizing capacity utilization. It then delineates the key determinants that shape pricing decisions, including demand forecasting, market segmentation, competition analysis, cost considerations, and consumer behavior. Furthermore, the abstract elucidates various pricing tactics employed by airlines, such as dynamic pricing, yield management, fare differentiation, and ancillary revenue generation. It examines how advanced analytics and revenue management systems enable airlines to dynamically adjust fares in response to fluctuating demand patterns, market conditions, and competitor actions. Moreover, the abstract explores the role of distribution channels in airline pricing, highlighting the importance of direct bookings, online travel agencies (OTAs), global distribution systems (GDS), and partnerships with intermediaries. It also discusses the emergence of personalized pricing strategies, leveraging big data analytics and machine learning algorithms to tailor fares based on individual preferences and purchasing behavior. Additionally, the abstract touches upon the regulatory frameworks and ethical considerations surrounding airline pricing practices, including transparency, fairness, and consumer protection. It underscores the need for airlines to strike a balance between revenue optimization and customer satisfaction, fostering trust and loyalty among passengers. In conclusion, this abstract offer valuable insights into the complex ecosystem of airline pricing strategies, shedding light on the multifaceted interplay between market dynamics, technological advancements, and business objectives. By understanding the underlying principles and tactics of airline pricing, stakeholders can navigate the competitive landscape more effectively, driving sustainable growth and profitability in the aviation industry.
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Shaikh, Sumaiyya Wahid, Genanew B. Worku, and Ananth Rao. "Japanese Airline Management Strategy ?Case study of All Nippon Airway’s Global Business Strategy?" International Conference on Advances in Business, Management and Law (ICABML) 2017 1, no. 1 (December 24, 2017): 143–55. http://dx.doi.org/10.30585/icabml-cp.v1i1.17.
Full textAbstract:
This paper analyses the strategy of All Nippon Airways, the second largest airline in Japan. The airline industry has been considered a symbol of government regulation. Competitive strategies increased through gradual deregulation in the 1980s, new entrants in the 1990s, and the expansion of Tokyo International Airport. Competition in the industry intensified when Japan Airlines (JAL), the largest airline in Japan, which rebuilt its operations using government support, re-listed. In this environment, ANA, which has been a private company since its inception and the second largest airline for many years, was the ninth largest in the world based on profits and number of passengers.
We first use a cross-sectional financial analysis to confirm the positioning in Japan’s aviation industry by comparing ANA with JAL. Next, regarding ANA’s management strategy, we use Ansoff’s Product-Market Growth Matrix. Finally, regarding global strategy, we analyze ANA.
Keywords: Airline; Management Strategy; Ansoff’s Matrix
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Aldahmashi, Falah A., Thowayeb H. Hassan, Ahmed H. Abdou, Mahmoud I. Saleh, Mohamed Y. Helal, Daniel Alemshet Gebreslassie, Amany E. Salem, and Salaheldeen H. Radwan. "Managing Airline Emissions, Noise, and Bird Strikes: Passengers’ Perspectives on Airlines’ Extrinsic and Intrinsic Environmental Practices." Sustainability 15, no. 17 (August 23, 2023): 12734. http://dx.doi.org/10.3390/su151712734.
Full textAbstract:
The aviation industry significantly contributes to environmental degradation, particularly in airline emissions, noise pollution, and bird strikes. Despite the growing concern for sustainability in aviation industries, there is a lack of research on how passengers perceive airlines’ efforts to manage airlines’ environmental degradation. This study addresses this gap by investigating how passengers perceive airlines’ intrinsic and extrinsic environmental practices toward these issues. Using a scenario-based experiment, this study found that passengers are more likely to use an airline and spread positive word of mouth when environmental practices form part of intrinsic management efforts rather than extrinsic environmental practices, suggesting that airlines should focus on implementing sustainable practices that align with their core values rather than simply adopting superficial measures for public relations. The findings of this research have important theoretical and managerial implications for airline managers in terms of enhancing their sustainability practices. By prioritizing intrinsic management efforts, airlines can improve their environmental performance and enhance their reputation among environmentally conscious passengers, ultimately leading to increased profitability and long-term sustainability for the industry.