A new hybrid simulation-based assignment approach for evaluating airlines with multiple service quality criteria

Evaluation of airlines based on service quality criteria can help to improve the processes of airlines, and also can give guidance to travel agencies to provide better choices for passengers and tourists. In this study, a hybrid simulation-based assignment approach is proposed to deal with multi-criteria decision-making problems with a group of decision-makers. A probability distribution is used to model decision-makers’ opinions and constructing a stochastic decision matrix. Then some efficient multi-criteria decision-making methods are utilized for evaluating alternatives in a simulation process. The proposed approach is applied to a problem of evaluation of five airlines with respect to opinions of 58 experts on 28 criteria. The results show the efficiency of the proposed to handle decision-making problems with a large number of experts. Moreover, the evaluation results are more reliable than the other decision-making approaches because of simulating decision-makers’ opinions, using multiple methods and evaluating based on aggregative results.     

Dynamic DEA models with network structure: An application for Iranian airlines

Efficiency estimation of interdependent divisions within a company or assessing the interrelated processes in a production system provides insights for improving the operational performance. Recent developments in network data envelopment analysis (NDEA) models enable decision making units (DMUs) to be informed of inefficient processes within the system. The NDEA model assesses the processes of the system in a specific moment and ignores the dynamic effects within the production processes. Thus, without considering the temporal dimension of production processes, biased efficiency measurement will be obtained that provides misleading information to DMUs. For evaluating the performance of a DMU with interrelated processes during specified multiple periods, this paper proposes a relational dynamic NDEA (DNDEA) model which measures the efficiencies of the system and its internal processes over the time, simultaneously. To illustrate the capability of the proposed model, this study for the first time measures the efficiency of eight Iranian airlines in several periods connected to each other by carry over flows. The actual data is gathered in three periods from 2010 to 2012 and the results are compared with the dynamic DEA and network DEA models in the same time span.     

CNG2020 strategy and airline efficiency: A Network Epsilon-Based Measure with managerial disposability

In this paper, we analyze the impacts of CNG2020 strategy on the efficiency of 29 international airlines during 2021–2023. Predictions are made through neural networks based on the empirical data from 2008 to 2015. Following the principle of CNG2020 strategy, we calculate the emission limit for each airline. Then we propose a new model, Network Epsilon-Based Measure with managerial disposability, to discuss the difference in efficiency of the airlines when the CNG2020 strategy is considered. The main findings are: (1) For most of these 29 airlines, the CNG2020 strategy has little influence on their efficiency. (2) The efficiency has little variation under the following conditions: when the carbon price is 8 $/ton CO₂-eq, when the price is 14 $/ton CO₂-eq, and when the price is 20 $/ton CO₂-eq. (3) Scandinavian is identified as the benchmarking airline.     

A novel interval-valued fuzzy MCDM method for improving airlines’ service quality in Chinese cross-strait airlines

This paper presents an effective approach based on combining VIKOR, GRA, and interval-valued fuzzy sets to evaluate service quality of Chinese cross-strait passenger airlines via customer surveys. The proposed approach can enable decision-makers to understand the gaps between alternatives and aspired levels. An empirical study is used to establish a complete service quality evaluation framework for reducing the gaps to achieve the aspired level. Based on the gaps in priorities, it can help an airline to identify its own strengths and weaknesses in specific areas of passenger service to further improve service quality.     

A dynamic network efficiency measurement of airports performance considering sustainable development concept: A fuzzy dynamic network-DEA approach

In this paper, sustainability of airports is considered through a multi-perspective, multi-system, and multi-process operation. It is explored how an extension of fuzzy dynamic network performance measurement approach helps to determine the efficiency performance of an airport system. In this way, a three-pronged approach is intended which considers the internal functions of an airport, functions affecting the community and functions related to the passengers simultaneously. This novel combination makes it possible to have a comprehensive evaluation of airports' performance. Besides, fuzzy extension of SBM dynamic network approach makes it possible to deal better with the vagueness of variables during analysis. So, this extension is valuable from both technical and conceptual aspects which in turn provide useful information and insights for the future design of holistic strategies connected with sustainable development of airports where ever they are.     

A global model for estimating the block time of commercial passenger aircraft

This paper uses a two-stage statistical model to estimate the block time of commercial passenger aircraft. The model considers many of the factors contributing to airport congestion and provides a basis for future development of multivariate statistical models of the flight operation process. The model is tested using 2 million US domestic flights by six airlines in 2004. Model analysis provided insight regarding the relative impact of weather conditions and airport utilization on block time. In particular, population, arrival time, airport utilization, ice, and the interaction of poor weather conditions and traffic were found to be significant predictors of block time.     

Four decades of airline productivity and efficiency studies: A review and bibliometric analysis

Airline productivity and efficiency have remained an area of tremendous interest among both academics and industry analysts since the Airline Deregulation Act of 1978 was enacted in the United States. This paper provides a bibliometric analysis of airline productivity and efficiency studies during the period from 1979 to 2020. The results show that the Journal of Air Transport Management, Transportation Research Part A, and Transportation Research Part E were the top three outlets preferred for publications in this area during the study period, and productive authors were likely to produce influential works. Research interest in airline productivity and efficiency has spread to encompass more diversified geographical regions over time, and new researchers from a broad range of fields continue to become interested in this field of research. Data envelopment analysis and stochastic frontier analysis are shown to be the most popular methods used by researchers, and studies are increasingly attempting to incorporate undesirable outputs, such as carbon emissions, flight delays and accidents, into the measurement and analysis of airline performance. The results from this study can provide guidance for future research issues and directions.     

An analysis of traveler need for and willingness to purchase airline dynamic packaging: A Korean case study

This study analyzes (1) the need among air travelers for commission-based ancillary products and services from airline websites via dynamic packaging and (2) the willingness to purchase them. For this purpose, a survey is conducted with 2030 airline customers in Korea. This study aims to provide insights into Korean traveler preference to enable airlines serving Korean customers to formulate and implement successful business strategies that incorporate dynamic packaging into airline websites to expand ancillary revenues. The results confirm that Korean travelers demonstrate the need for and willingness to purchase commission-based ancillaries when purchasing tickets from airlines. On average, commission-based ancillary products are positively received by respondents. Airport transfers (e.g. rail and shuttle services), foreign currency exchange offers, and travel insurance are the most popular. Female travelers, travelers in their 20s, and frequent travelers (10 + times a year) report a significantly higher need for and willingness to purchase a set of commission-based ancillaries with flights from airline websites. Willingness to purchase third-party products from airlines is higher than in previous studies, and the preference rankings also differ. This study supports the viability of commission-based ancillary offerings from airline websites targeting Korean travelers. It shows the potential for airlines to successfully upsell and cross-sell via dynamic packaging strategies, one of the first steps toward becoming competitive travel retailers.     

Evaluating energy efficiency for airlines: An application of VFB-DEA

In this paper, the energy efficiency of airlines has been studied with number of employees, capital stock and tons of aviation kerosene as the inputs and Revenue Ton Kilometers, Revenue Passenger Kilometers, total business income and CO₂ emissions decrease index as the outputs. A new model, Virtual Frontier Benevolent DEA Cross Efficiency model (VFB-DEA), is proposed to calculate the energy efficiencies of 11 airlines from 2008 to 2012. Spearman correlation coefficient is applied to validate the applicability of the new model. The results indicate that capital efficiency is an important factor in driving energy efficiency, and the American financial crisis had a significant influence on the change in energy efficiency during this period.     

A comprehensive relationship marketing model between airlines and travel agencies: The case of Taiwan

This study aims to examine how airlines' relationship selling, relational benefits, and relationship quality affect voluntary performance of travel agencies. Hypotheses on the relationship among these constructs were created based on relevant literature and validation using structural equation modeling was carried out. A questionnaire survey was conducted using stratified sampling on comprehensive travel agencies and Class A travel agencies in Taiwan. Among the 1000 copies of the questionnaire, 169 valid copies were collected and used to perform data analysis. Empirical results show that relational benefits and relationship selling can influence voluntary performance of travel agencies through the mediation of relationship quality, although neither has a direct effect on the latter, whereas, relationship quality has a significant and positive impact on voluntary performance of travel agencies towards airlines. It is evident that relationship quality plays an indispensable role in the connection between relationship marketing constructs (relationship selling and relational benefits) and voluntary performance. Results of this study may provide some insights for airlines in developing relationship management strategies towards travel agencies.     

Efficiency of US airlines: A strategic operating model

This paper applies the unoriented DEA network methodology to measure US airlines' performance relative to that of peer airlines and identifies the sources of its inefficiency. The analysis of the results suggests that major US airlines are more efficient than national US airlines in spending operating expenses and gaining operating revenue, but there is no significant difference in their service supply and demand efficiencies.     

Evaluating drivers of profitability for airlines in Latin America: A case study of Copa Airlines

Air Traffic demand in Latin America is expected to double over the next twenty years, yet airline profitability in the region remains highly problematic. The impediments challenging financial prosperity in the continent are numerous and have resulted in prolonged loss-making periods across most Latin American carriers. Breaking with this trend, Copa Airlines has been able to report double-digit net results for several years and recorded 56% of total profits earned by all Latin American carriers in 2016. This research has identified a number of Key Performance Indicators that have underpinned Copa Airlines' financial prosperity through a Product and Organisational Architecture (POA) framework analysis whose results were validated and elaborated upon by the CEO of Copa Airlines. Copa's sustained financial success was attributable to a number of factors. First, its geographical positioning has allowed it to engineer strong connectivity by coupling North and South America through its hub, which is reachable with narrowbodies to nearly all points in the Americas. Second, its low unit cost structure is akin to that of LCCs, operating a single aircraft type with high utilisation. Third, it has a uniquely low market concentration of competitors on its routes and capitalises on this by having a strong schedule with high frequencies together with outstanding punctuality. Fourth, it has a synergistic and fruitful cooperation with its hub airport at Tocumen. Finally it benefits from positive external factors such as a dollarized home economy with high GDP growth, exceptionally low unemployment and inflation rates ring-fenced with security. These pillars can be used as a reference for other Latin based airlines seeking to improve profitability.     

A fuzzy assessment method to airport waste management: A case study of Congonhas Airport,Brazil

This study presents a fuzzy mathematical model to support and evaluate airport waste management. The model generates a waste management index, composed of three dimensions, and it was applied in a case study of Congonhas Airport, located in Brazil. In addition to the mathematical model, the nonparametric Mann-Kendall test was applied to verify the existence of bias in the obtained results. The results showed that there is a concern on the part of the airport regarding waste management, reflected in the Fuzzy Waste Management Index (FWMI) results. They also indicated that there was an improvement in waste management in 2015 compared to 2014, resulting from increased accounting for recyclables and awareness of the airport community. The developed model proved to be an important tool to support the decision making of airport managers, including aspects related to waste management steps, and there may be adjustments that may be made to include new indicators.     

2-Stage stochastic programming approach for hub location problem under uncertainty: A case study of air network of Iran

In this paper 2-stage stochastic programming has been developed for formulating stochastic uncapacitated multiple allocation hub location problem. This problem is studied under three cases. The first, stochastic demand, the second, stochastic transportation cost and the third, integrated stochastic, which is compounded of first and second cases. A case of air network in Iran is used to evaluate proposed formulations and computational results obtained by GAMS are presented. The results show that considering uncertainty into formulation could cause in different solutions.     

Establishment and application of fuzzy decision rules: an empirical case of the air passenger market in Taiwan

This paper develops a framework for creating fuzzy decision rules by socio‐economic variables, transactional record variables and customer benefit variables. Fuzzy decision rules may be applied on marketing systems of businesses. This research uses fuzzy k‐means algorithm and C4.5 decision tree algorithm to generate fuzzy decision rules. The framework is applied on the air passenger market of Taiwan for an empirical case study. Results of this research found two non‐fuzzy (crisp) decision rules and two fuzzy decision rules, which can be applied on the customer relationship management systems of airlines. Copyright © 2010 John Wiley & Sons, Ltd.     

A robust hybrid decision model for evaluation and selection of the strategic alliance partner in the airline industry

Owing to the cut throat competition and economic uncertainty in the market, airlines are focusing on strategic alliances for satisfying customer needs, especially in the current time which is dominated by global integration, demanding customer and fast changing technologies. This strategy is widely adopted by airlines. However, the selection of strategic alliance partner is a very decisive decision, and this selection process engrosses a number of complex processes which is result of compound reflection of associated various factors. In addition, the decision makers may be inconsistent in their views and preferences, arising due to imperfect information or intrinsic conflict between various departments. This paper presents a model based approach of an analytic hierarchy process (AHP) for evaluation of criteria and fuzzy technique for order performance by similarity to ideal solution (FTOPSIS) for the selection of strategic alliance partner. A case of Indian airline industry demonstrates the application of the proposed approach. Eventually, robustness of the model is demonstrated by sensitivity analysis.     

Exploring characteristics of passengers using traditional and low-cost airlines: A case study of Belgrade Airport

Low cost carriers entered the Serbian air travel market after Serbia joined the European Common Aviation Area (ECAA) in 2006, prompting the development of healthy competition among airlines and resulting in significant traffic increase at Belgrade Airport. The aim of this paper is to examine the characteristics of passengers traveling on low-cost carriers (LCC) in comparison with those traveling on traditional airlines by using cluster analysis, and to provide practical implications to airport management in tailoring their strategies to meet growing demand. A comprehensive passenger survey was recently conducted at Belgrade Airport on the routes where competition between traditional and LCC carrier exists. The results reveal that emigrants, primarily encouraged by favorable fares, constitute a substantial portion of LCC passengers. Affordable service offered by LCC has also been a positive stimulus for emigrants, who purchase tickets for their friends and relatives to visit them in their host countries. On the other hand, passengers using traditional airlines could be generally classified into two segments, those who fly on business and those who fly for leisure purposes, and each had specific needs when choosing their airline.     

A new hub and spoke system proposal: A case study for Turkey's aviation industry

In this paper, we are proposing a multi-objective mathematical model for the selection of a newly constructed hub and spoke system. The objectives of this model are maximizing aircraft utilization and revenue whilst reducing the commercially infeasible network detour factor. The sensitivity analysis of the model is tackled using weights related to the objectives as well as the network detour factor. The number of available aircraft and the range that an aircraft can reach are also considered in this model. Since Istanbul has already got a hub and spoke system with busy airports on both sides of the city, the model is applied to three other major cities of Turkey, Ankara, Antalya, and Izmir. The test data consists of over 90 cities in Europe and in the Middle East. The data includes unit passenger revenues and operating costs for the segments, distances between cities and hubs, expected load factors and flying times of segments. The scenarios are tested under specific expectations of airline network experts and the results are visualized by using Pareto front graphs. Compared to other candidates, Antalya stands out as a good choice for a new hub and spoke system in Turkey. The results of this model could be helpful for airlines and other airports in Turkey in order to identify their potential and competitive position in relation to their counterparts.     

A combined MCDM model based on DEMATEL and ANP for the selection of airline service quality improvement criteria: A study based on the Taiwanese airline industry

The aim of this study is to select airline service quality improvement criteria for the Taiwanese airline industry. Numerous factors such as low railway prices, the development of high-speed rail, increases in petroleum prices, increases in foreign airline competition, and the recent economic depression have led many airlines in Taiwan to encounter financial difficulties and even closure. Researchers have begun to identify critical service quality improvement criteria with the goal of increasing the competitive advantages of airlines. Most of the selected criteria, however, suffer from a major technical problem: all of the measurement dimensions are independent, leading to inadequate criteria for measuring service quality. Our calculations consider the interrelationships and effects among the evaluation dimensions and criteria to precisely rank and select criteria. The value of this study is that it provides airlines with a direction for measuring and improving their service quality with the goal of developing sustained competitive advantage over the long term.     

A hybrid fuzzy MCDM approach for mitigating airport congestion: A case in Ninoy Aquino International Airport

In this paper, we introduce the application of an integrated fuzzy multi-criteria decision-making (MCDM) model to mitigate airport congestion which affects the on-time performance of airlines, operational reputation of airports, and air travel experience of passengers. In a classical approach, when congestion occurs at the destination airport while the aircraft is en-route, an air traffic flow management action is prompted for implementation. In selecting the most suitable action in the event of airport congestion, the decision must reflect the multiple criteria nature of the problem as well as the uncertainty and vagueness associated with the decision-making process; thus, an integrated fuzzy MCDM is adopted. The applicability of the proposed approach is demonstrated in a case study at Ninoy Aquino International Airport. It is found that stakeholders of the commercial aviation industry favored to apply rerouting, among other actions, as this satisfies aviation safety as the most prioritized criterion.