Customer satisfaction and service quality in the Chinese airline industry

This paper focuses on studying the relationship between customer satisfaction, measured by customer complaints, and the service quality of Chinese carriers. By using a quarterly unbalanced panel data set covering twelve large and small carriers, our fixed effect Tobit analysis shows that customer complaints rise with increases in the number of damaged bags, but at a declining rate. By contrast, the on-time performance of scheduled flights has no significant effect on customer complaints. Furthermore, non-state or privately owned carriers receive significantly more customer complaints compared with state-owned carriers, and the largest number of complaints are made in the third quarter, which covers the high season of the summer holidays.     

Complaints caused by aircraft operations: an assessment of annoyance by noise level and time of day

The impact of aircraft movements on the local community surrounding an international airport was investigated using airport data on complaints, noise monitoring, aircraft flight paths and movements to assess annoyance due to noise level and time-of-day. As predicted, the louder the noise the more complaints were generated, with twice the complaints per movement at 110–114 PNdB compared with 74–79 PNdB.The hourly patterns in flight frequency and complaints were clearly distinct. Calculations of the complaints per aircraft movement for each hour of the day showed a striking 24 h pattern with night flights (23.00–06.00) causing on average nearly five times more complaints than the rest of the day (06.00–23.00). The time of the greatest propensity to complain about aircraft noise was between 01.00 and 02.00 and the lowest between 08.00 and 09.00.The circadian pattern in sensitivity to aircraft noise could be used to inform the development of airport operations and flight movements to minimize community disturbance.     

A community evaluation of Essential Air Services

Because the Essential Air Service (EAS) is a controversial federal program, a debate regarding its rehabilitation options and even its complete termination has been on the political agenda for more than a decade. For the beneficiaries of the program, most notably communities receiving subsidized air services and regional airlines supplying these services, EAS flights increase the accessibility of small and remote communities. For those people defending low government expenditures and free markets, EAS flights are a typical example of public intervention and wasteful government spending. In addition, increasing federal appropriations, rising per passenger subsidies, and the growing number of communities asking for subsidized air services have generated public attention, resulting in calls for improvements to enhance the efficiency of the program. Using Web-based survey data gathered from a pool of 95 city officials representing 56 EAS communities, this study aimed at contributing to the debate by attempting to provide evidence regarding how EAS communities perceived the importance of EAS flights to their communities, how they evaluated the then-current state of EAS flights, how they locally supported EAS flights, and how they assessed the possible rehabilitation options. The results of the survey revealed that EAS communities (1) assigned a high importance to EAS flights but not as high an importance to creating more jobs, improving the quality of education, and improving the quality of health services; (2) believed that the frequency of the flights was at the right level and that the airfares were expensive; (3) undertook marketing efforts to increase awareness of the flights, to attract air carriers to their communities, and to implement market studies for determining the potential of the flights; and (4) did not believe that rehabilitation options, such as employing alternative transportation modes, using smaller aircrafts, and consolidating EAS flights, would work, but they supported awarding longer-term EAS contracts.     

Modeling the flight departure delay using survival analysis in South Korea

The air transportation industry in South Korea has been growing since the 2000s. Although the number of air passengers has continuously increased, the flight delay rate has fluctuated from year to year. In this study, a survival analysis was conducted to compare each flight delay in terms of airport/time slot and to evaluate the actual impacts of major variables on flight delays. We performed multiple analyses using survival analysis methodologies, including the Kaplan–Meier estimator, log-rank test, and Cox proportional hazards model. In particular, we applied a turnaround buffer as a key variable in Cox proportional hazards model analysis. The survival curve showed that more international flights departed earlier than scheduled or with minimal delay than domestic flights. However, international flights tended to have more long-term delays. The log-rank test indicated that international flights had a wider distribution of delay times than domestic flights. In the Cox proportional hazards analysis, under the condition in which the actual flight turnaround time was less than 120 min, the results indicated that the longer the actual turnaround buffer was, the less frequently the delays occurred. By using these analyses, we could numerically verify the actual delay trends in South Korea. The results can be used as fundamental resources for political and economic decision-making processes in the aviation industry.     

Micro-level analysis of airport delay externalities using deterministic queuing models: a case study

We analyze runway delay externalities at Los Angeles International Airport (LAX) using a deterministic queuing model. The model allows us to estimate the delay impact of each specific arriving flight on each other specific arriving flight. We find that, despite being only moderately congested (average queuing delay only 4 min per arriving flight), individual flights can generate as much as 3 aircraft-hours of external delay impact on other flights, with an average impact of 26 aircraft-minutes and 3400 seat-minutes. About 90 percent of this impact is external to the airline as well as the flight, a consequence of the lack of a dominant airline at LAX. We then compare the delay impact of each individual flight to its contribution to schedule convenience by determining the amount of “schedule delay” that would result if the flight were eliminated and its passengers forced to use the previous flight flown by the same airline from the same origin. We find that a number of commuter flights serving high density, short-haul segments generate much more queuing delay than they save in schedule delay, with the ratio exceeding 10 in several cases. We argue that social welfare would increase if such flights were eliminated, upsizing others as necessary to accommodate the displaced loads.     

‘Africanisation’ of South Africa’s international air links, 1994–2003

In the first decade of democratic rule in South Africa scheduled commercial passenger flights across the country’s borders more than doubled. Additional flights served new African air passenger markets and secondary airports in established markets. Overseas flights increased more slowly, serving a diminishing number of overseas countries and cities. In 1994 the Republic was linked directly by air with more overseas than African countries and cities; within a decade the pattern reversed. The changing geography of South Africa’s international air links reflects developments in the international airline industry, and South Africa’s increasingly prominent political and commercial role in Africa.     

Airline choice and tourism growth in the Azores

This study examines the effect of airline choice on tourism growth in the Azores. The results reveal that tourism numbers increased sharply as more alternative choices emerged to visitors after the entrance of low-cost carriers due to airline liberalization. Moreover, different airline types attract different kinds of visitors, contributing to tourism diversification. In particular, low-cost airline tourists are younger than those who travel in full-service airlines or charter flights. They are also more likely to buy a last-minute ticket and to come from Iberian and French markets. Charter flights, however, are important choices for those traveling to the Azores from more distant markets such as Sweden and Denmark.     

Understanding air travellers' trade-offs between connecting flights and surface access characteristics

This paper reports on a study which seeks to improve our understanding of how people choose between different kinds of flight at competing airports, and how their choices are affected by access conditions. In particular, using stated choice data collected in Scotland, it investigates whether improving surface access to regional airports that are in relatively close proximity to one another (Glasgow and Edinburgh) leads people to avoid taking indirect flights from their nearest airport in favour of direct flights from an alternative airport. In line with expectations, our estimation results from Cross-Nested Logit models show strong aversion to connecting flights, resulting in a willingness to either pay higher fares for direct flights or accept non-trivial increases in access time. For the latter, even without the potential new direct rail link between the two airports, current access times are such that a scenario where direct flights were only available at the non-home airport, a substantial share of passengers would choose to travel from the alternative airport.     

How do carriers price connecting flights? Evidence from intercontinental flights from Europe

In civil aviation, hub-and-spoke (HS) networks are used by all large carriers. The importance of this system implies that many travelers use connecting flights. Nevertheless, only scarce knowledge is available on price formation of these trips. In this paper, we focus on the fares of connecting intercontinental flights, with one stop and at least one competing direct flight. We develop a simple model of a HS network, with imperfect substitutability between direct and indirect flights and Cournot competition on every route in the network. We test the model empirically, using reported fares for flights from seven European origins, including the five major airports in Europe, to five non-European destinations. We find that the fare of a connecting flight can be expressed as the weighted average of the fare of its direct competitor, the travel times of both flights its costs and the monetary value of the utility attached to the trip. The weight of the direct fare decreases as product diversity increases.     

Hub premiums in European civil aviation

We investigate the practice of carriers that charge higher fares for flights leaving from their hub. We analyze this phenomenon by relating fares to distance, using the main leg of intercontinental flights for scaling purposes. Our results indicate that the practice of a mark up on flights originating from or going to hubs is not typical for the US situation. At least some European carriers charge significant premiums for direct flights from their hubs. We find that at least part of these premiums can be attributed to market power. Policy measures should be aimed at reduction of market power and consumer protection. Furthermore, the existence of hub premiums should be taken into account in regional hub policies.     

Responses of air cargo carriers to industrial changes

This study examines how product characteristics, values, inventory cost, shipping charges, shipping distance, and time affect an international firm's choice of air carrier. An individual choice model is constructed by assuming that the shipper in a specific industry chooses the optimal air cargo carrier with the minimal logistics cost. The study further aggregates air cargo demands on different routes for the carriers by considering the spatial distribution of the origin-destination pattern and any temporal changes in the industrial structure. A case study is used to illustrate the application of the proposed model using data from Taiwan Taoyuan International Airport and the industrial economics database in Taiwan. The results show that shippers with high product value and short delivery distance focus on the shipping charge and prefer choosing the air cargo carrier that offers more flights. Further a carrier may achieve a larger market share if its supply attributes match the industrial structure and the product characteristics of the market on the route. Finally, because dynamic changes in the industrial structure and product value have been captured, the results are more accurate than that from the Grey model.     

First-class airline travellers' perception of luxury goods and its effect on loyalty formation

This study examines how first-class airline travellers' perception of luxury goods influences the formation of their loyalty to first-class flights. Based on the proposed hypotheses, a conceptual model was developed and tested using empirical data collected from a sample of 202 first-class airline travellers in the USA. The results indicate that the five types of perceptions of luxury goods (e.g. quality, hedonism, conspicuousness, exclusivity, and the extended self) were generally associated with consumer attitudes towards first-class flights and thus led to well-being perceptions and perceived price fairness. In addition, well-being perceptions enhanced perceived price fairness, customer identification, and loyalty. Finally, alternative attractiveness moderated the relationship between consumer attitudes towards first-class flights and perceived price fairness. The results have important theoretical and managerial implications.     

Airport and route classification by modelling flight delay propagation

Flight delay can be divided into the root and propagated delays for identification and analysis of airports/routes that have a great influence on actual flight delay using flight operations raw data (tower logs) for South Korean domestic flights. In addition, the presented concept of “generated delay” classifies airports as affecting other airport delays or affected by other airport delays. The generated delay refers to the delay time at a particular airport/route, and this delay thereafter actually propagates to other airports/routes. In this study, the generated and propagated delays were displayed on a two-dimensional graph, and the airports/routes were grouped according to delay characteristics. Group A represented airports with high generated and propagated delays, and group B represented airports that are highly affected by delays of preceding airports/routes. Group C represents airports where newly formed delays affect other airport delays, but these airports mitigate delays from other airports. Airports in group D have relatively low delays and propagation. Thus, we targeted airports belonging to groups A and C because of their delay propagation impact on other routes/airports, which must be reduced by decreasing the root delay from targeted routes/airports. Among the airports, Jeju international airport (CJU) had the highest average delay time and propagated flight delay time with similar averaged generated delay times. Among the routes, departure flights from various airports to CJU had significant propagation effects on the subsequent flights. CJU and related routes have a very large impact on domestic flight delays because South Korean domestic airline routes are concentrated on CJU. However, there has been no quantitative analysis, and it is meaningful that the quantitative analysis results were presented in this study. In addition, we suggest that other airports such as GMP (Gimpo), CJJ (Cheongju), WJU (Wonju), and KUV (Gunsan) have a significant impact on domestic flight delays.     

Airport choice and flight connectivity among domestic and international passengers – Empirical analysis using passenger movement survey data in Japan

This paper presents an empirical analysis of airport choice and passenger movement on international flights from local cities in Japan to Narita and Haneda Airports in the Tokyo metropolitan area. This is the first study to evaluate airport choice behavior in Japan empirically by using the micro data collected by Japan’s Ministry of Land, Infrastructure, Transport and Tourism in 2010 (i.e., when time slots for international long-haul flights were first assigned at Haneda). The analysis confirms that flight connectivity is a crucial element in airport choice.Further, Japanese airlines and their associated alliances are able to attract passengers arriving from local cities by using Haneda airport. Above all, we find that the introduction of long-haul international flights from Haneda has met the needs of a number of passengers arriving from local cities in Japan owing to the convenience of the domestic flight network, especially for business purpose passengers.     

Simulation method for dispatching national border security manpower to mitigate manpower shortage

Recently, a record number of passengers have entered and exited Taiwan from Taiwan Taoyuan International Airport (TTIA). The number of passengers from Taiwan to mainland China has increased largely because of the improvement of cross-strait cultural interaction and other policies, as well as the opening of direct flights. Not only located in the transport hub of the East Asia Taoyuan International Airport is becoming more important and can provide 24 h Airport service, but also airport immigration officers must take 24 h shift to carry out the passenger document inspection requirement, Immigration officers can be fatigued by long shifts, thus negatively affecting border security clearance efficiency and work performance. Consequently, innovative management practices regarding immigration officers are necessary to strengthen international cooperation against terrorism. This study used system simulation Delphi interviews and a heuristic algorithm to determine the required number of airport immigration officers during a fixed passenger waiting time, for improving the efficiency and stability of airport immigration officers who work to consolidate the border security of the country. The results showed that the utilization of airport immigration officers at Taiwan Taoyuan International Airport is higher than 97.99%, and their work hours have been reduced by more than 54.68%. These results proved that using a system simulation can reduce long work shifts and negligence, which can lead improved border security and airport service quality. Additionally, the simulation results that when the National Immigration Agency and Taiwan Taoyuan International Airport implement the biometrics verification system for noncitizens, significant manpower shortages are expected. These shortages can cause complaints from customers and result in a negative image of the quality of airport service. Assigning priority to setting the E-GATE system to compensate for the lack of immigration officers would result in more efficient and effective border security.     

Living “up in the air”: Meeting the frequent flyer passenger

This paper uses a large database of approximately 37,000 passengers and three different estimates to analyse the characteristics of the frequent flyer and the differences between frequent flyers and occasional flyers. The results show that frequent flyers are middle-aged men with a high level of education who take domestic flights for business reasons at both hub and regional airports, where they make a purchase and/or consume F&B. Frequent flyers fly on both low-cost and traditional airlines, are more likely to stay overnight at a relative's or friend's home and travel to the airport by private or rented car.     

High-speed rail and air transport competition in Western Europe: A supply-oriented perspective

Increasingly air transport growth raises the question of its impact on the environment. Public authorities and researchers are relying more and more on high-speed trains (HSTs), whose efficiency is supposed to lead to a modal shift from airplanes. However, most transport studies focus on the evolution of demand rather than supply, although it is basically the latter that determines environmental damage. In light of this fact, this paper aims to compare the overall dynamics in the supply of air transport in Europe compared to the HST supply and to examine empirically five city-pairs. The development of high-speed rail remains limited compared to the increase of air services. For a given city-pair, the decline in the number of flights depends on various conditions, including length of the HST journey and the strategies adopted by the airlines. Some carriers reduce their supply in terms of the number of seats but increase the number of flights in order to compete more effectively with the HSTs. Moreover, the competition between low-cost airlines and HSTs should be kept in mind and re-examined in a few years.     

Departure delays,the pricing of congestion,and expansion proposals at Chicago O’Hare Airport

Chicago's O’Hare airport is extremely congested, especially in the late afternoon and early evening. The paper uses a publicly available database to estimate the relationship between the number of flights wishing to depart and the delays they experience. This relationship is used to calculate congestion fees that provide airlines with incentives to move some flights out of the peak period and to slightly alter the scheduled departure time of other flights to avoid the rush of departures that occur on the hour. The very high fees at certain times of day point to the benefits that can be obtained from current plans to expand and reconfigure the airport to reduce delays in both good and bad weather.     

Introducing connecting flights in LCCs' business model: Ryanair's network strategy

In light of the ‘hybridization’ process characterizing airlines' business models, this work contributes to the literature by analyzing the rationale underpinning the decision to introduce connecting flights into the typical point-to-point networks of low-cost carriers (LCCs). By referring to the network of the largest European LCC, Ryanair, we provide evidence on how its new inter-connecting strategy is influenced by market, supply, and leg characteristics. Applying a probit model, results suggest that Ryanair is offering connecting flights on both non-directly offered markets and on markets that it already serves directly. The likelihood to observe a connecting flight increases at higher level of legs' frequency and at lower levels of Ryanair's legs' market share. Eventually, this new connecting strategy is negatively correlated with market distance, routing factor, direct frequency, and Ryanair's current O&D market share.