Marketing innovation: Sources,capabilities and consequences at airports in Europe's peripheral areas

This paper investigates sources, capabilities and consequences of marketing innovation at airports in Europe's peripheral areas. A questionnaire-based survey was administered to airport managers. Ten sources of airport marketing innovation are identified. Innovation is significantly higher at airports that are administered as an independent entity compared to airports that are administered as part of a regional or national airport system. Large airports have a significantly higher level of innovation compared to small airports. Innovation has a significant positive effect on airport marketing performance, irrespective of the strategic focus of the airport.     

Modelling the effects of capacity constraints on air travellers’ airport choice

This paper analyses the effects of limited capacity on air travellers’ airport choice. The analysis is based on a market-segment specific airport choice model that accounts for limited capacities. The region of Stuttgart in Germany serves as a case study to examine the impact of limited airport capacity on air travellers’ airport choice. Air travellers’ choice depends on the supply of flights and accessibility of the airports in their choice set as well as on their preferences and willingness-to-pay. To elaborate the effects of limited airport capacity, scenarios relating to the capacity situation at airports serving the air travel demand of the Stuttgart region are analysed. This paper reveals the mutual dependence among airports. Capacity constraints at one airport cause spill-over effects and thus influence air travel demand served at other airports. In some cases this may even lead to new capacity constraints elsewhere.     

Factors influencing cargo agents choice of operations in Abuja airport,Nigeria

The ability of an airport to attract traffic can vary within a multi-airport model of operation and highly competitive environment. This study is an effort to examine the factors that cargo agents rank as most important in their choice of Abuja airport cargo transhipment operations. A questionnaire survey was conducted on a random sample of members of the Association of Nigeria Customs Licensed Agents (ANCLA) at Abuja airport for primary data collection. The study employed a combination of Factor Analysis (FA) and Multiple Linear Regression (MLR) to analyse the data collected. The results of the factor loadings indicate airport capacity, airport charges and customs efficiency as the most significant factors that agents consider in their choice of handling cargo through Abuja airport. The three variables were found to have a high correlation relationship (R = 0.802) with the dependent variable of airport choice after subjecting it to regression analysis. This serves as information to airport managers for the airport planning of capacity in cargo operations within multi-airport country such as Nigeria.     

Mutual influence across routes using a common airport: The case of the domestic market in Japan

This paper empirically investigates the mutual influence of traffic volumes across routes serving the same airport. Regression analysis using the data on Japan's domestic air transport market reveals that an increase in passengers on a given route has a positive effect on the number of passengers on other routes that share an endpoint airport with the given route. This result implies that a change in policy for an airport is likely to influence routes that do not serve that airport as well as the routes that do.     

Airport location in multiple airport regions (MARs): The role of land and airside accessibility

This paper approaches the airport location problem as a function of accessibility considerations. First, a structural equation model is established to find the relationship between the size of an airport catchment area and its flight network scale. Landside and airside accessibilities are measured by the qualities and costs of surface transportation and flight networks. The two accessibilities are combined to form a regional air transportation accessibility profile, which can be used as a criterion to evaluate airport locations at a macro-planning level. Finally, the scenarios of airport locations in terms of small and large areas are analyzed using two regional case studies in China.     

A systematic approach to assess the effectiveness of airport noise mitigation strategies

Regional airports are often located very close to the urban area they serve and the increasing traffic rate that many of them have experienced in the last years has produced several impacts on the communities living close to the airport area, mainly aviation noise. If not properly managed, noise impacts produced by airport operations can cut down significantly the development of airport air traffic with direct effects on the economic and territorial systems. Aeronautical noise has greatly reduced in the last decade, due to aircraft design technological improvements and more severe regulations. However, the noise reduction during a single event does not make the issue of the airport location – and then the whole noise impact – less significant. This paper proposes an assessment process to evaluate the effects of actions adopted to reduce airport noise impacts on populated areas. Both airport-related factors – such as number of take-off; day-evening-night distributions of movements; aircraft type; flying paths – and land-use characteristics have been considered and combined in a density index that synthesizes the impacts of airport noise on the territory. The assessment process has been tested on a real case, the airport of Bologna in Northern Italy. The predicted results, compared with available real data for the test case, are significant and encourage the use of the proposed assessment process as decision support system for the airport management.     

Strategic development trend and key factors analysis of Airport City in Taiwan

In the past decade, many airports have shifted from being simple transfer ports to logistical transportation hubs and, more recently, into multi-functional airport cities. The emergence of the airport city provides evidence of advanced transportation development of a country or a region, as it serves as the impetus for national industry and a gateway to economic globalization. This paper explores the development trend of airport cities in Hong Kong, South Korea, Singapore as a basis for analysis of outcomes in Taiwan. Using grounded theory-based qualitative research, this study analyses and conceptualizes thirty key factors and seven trends for airport-city development via interviews with focus groups and experts. These development trends are verified by a contingency analysis with airport cities development intelligence. In addition, this study conducts an industrial matrix analysis and verb-term coding to propose action items for industrial categories in the case of Taiwan Taoyuan international airport.     

Strategies for collaborative funding of intermodal airport ground access projects

Projects to improve airport ground access not only provide important intermodal connections but can also present difficult funding challenges. This paper reviews the recent literature on funding airport ground access projects as well as some of the wider literature on funding transportation projects in general in the United States (U.S.) that is indirectly relevant to airport ground access projects. This is followed by a review of current U.S. federal transportation funding programs relevant to airport ground access projects, as well as a discussion of state and local funding programs and potential opportunities for private sector funding. The paper then describes several case studies of airport ground access project funding that were undertaken as part of this research. Based on this discussion, the paper discusses potential funding strategies for intermodal airport ground access projects in the U.S., requirements for effective implementation of these strategies, and a recommended approach to facilitate successful project development and implementation. It also presents recommended changes to the transportation funding program rules and regulations in the U.S. that could facilitate and simplify the development of intermodal solutions to meet future airport ground access needs.     

Airport partial and full privatization in a multi-airport region: Focus on pricing and capacity

This paper studies the capacity and pricing choice of two congestible airports in a multi-airport metropolitan region, under transition from a pure public, centralized airport system to partial or full privatization. We develop analytical models to investigate three privatization scenarios: public–private duopoly, private–private duopoly, and private monopoly. We find that, airports follow the same capacity investment rule as prior to privatization when capacity and pricing decisions are made simultaneously. Pricing rule after privatization becomes more complicated, with additional factors having an upward effect on the privatized airport(s) and a downward effect on the remaining public airport.     

Does a reward program affect customers’ behavioural intention of visiting the airport? A case study of Singapore Changi Airport

An understanding of the behavioural intentions of customers in visiting airports may help airport management to boost airport retail revenue (i.e. non-aeronautical revenue) by increasing customer spending at the airports. This study aims to examine the connection between airport reward programs and customers' behavioural intentions of visiting the airport, attempting to bring some benefits and credits for implementing reward programs in the airport sector by using Singapore Changi Airport as a case study. Two types of customer behavioural intentions (i.e. time spent at the airport and various purposes of visiting the airport) were investigated in the study to examine the effects of Changi Airport's reward program (i.e. Changi Rewards). An on-line survey was conducted, and the participants' responses were analysed via a structural equation modelling approach. The results showed that the attractive benefits of Changi Rewards could have a positive influence on arousing customers' intentions to engage with the programme. In addition, customers' intentions to engage with the programme can have a positive effect on increasing passengers' time spent at the airport and inducing customers to visit the airport for leisure purposes. Managerial implications to the airport sector are discussed.     

Is economics good for aviation policy? Some problems in bridging the gap between theory and policy

This paper argues that airport economics is based on the concept of economics as the positive value free science of efficient allocation of scarce resources with given wants, ignoring the approach of economics as a moral science. It assesses critically the results on major policy issues. Although there is strong empirical evidence of natural monopoly of airports, no consensus has emerged. The effects of privatisation have been assessed in terms of cost efficiency, but not in terms of economic welfare and distribution. While airport economics has made theoretical progress, the policy recommendations on single versus dual till are less relevant than those from the older models. Airport expansion is assessed in many cases by economic impact studies instead of cost benefit analysis. Economists applying impact analysis, have contributed to an irrational policy discussion. The role for morals in the management of airports has been neglected, although there is evidence that incentives might backfire. The paper argues that airport economics based on economics as a moral science could improve airport economics, and make its policy recommendations more relevant.     

Strategic alliances between airlines and airports—theoretical assessment and practical evidence

Strategic alliances are now widespread. This paper shifts the focus from alliances among airlines toward strategic alliances involving passenger airlines and airports. Following a conceptual path analyzing motives, potential benefits and problems, potential fields of cooperation are identified along with three basic classes of airline–airport alliances. Capacity-based, marketing-based, and security based cooperation models are assessed with regard to benefits for the participating airline and airport partners. This expands the existing literature that has largely neglected the airline–airport relationship and its potential for developing their respective competitive strategies. The case of the alliance between Lufthansa and Munich airport serves as an illustration.     

Hedonic and utilitarian shopping values in airport shopping behavior

This study aims to examine airport travelers' shopping decision mechanisms based on a value–attitude–behavior framework. In particular, the proposed model investigates the complex relationships between pairs of shopping values (hedonic versus utilitarian), attitudes (cognitive versus affective), and behavior (repatronage intention versus retailer interest) to compare the relative importance between hedonic- and utilitarian-oriented decision paths. A survey was administered at Taiwan Taoyuan International Airport, where 300 valid questionnaires were collected. Using structural equation modeling, this study finds that the direct effects of shopping values on shopping behavior are stronger than their indirect effects through attitudes. Compared with utilitarian shopping values, hedonic shopping values exert a stronger effect on airport shopping behavior, implying that airport shopping involves more multisensory decisions than cognitive decisions. In addition, avoiding negative feelings (e.g. regret) appears to be a stronger antecedent of airport shopping behavior than pursuing positive feelings (e.g. excitement). Marketing strategies of airport retailing are discussed.     

Factors influencing cargo airlines’ choice of airport: An international survey

This paper identifies and evaluates the myriad of factors that influence the choice of airport by freighter-operating airlines. The findings are presented from an international postal survey of airlines operating freighter aircraft on a scheduled non-integrated basis. A number of factors such as night curfews, freight forwarders and airport charges are found to be influential and these are examined against a number of dependent variables such as the airline's home region and operational patterns in order to identify key variations.     

Governance structures and the market orientation of airports in Europe's peripheral areas

This paper investigates the relationship between governance structures and the market orientation of airports. The focus is on Europe's peripheral areas, where airports tend to be publicly owned and operated as an independent entity or as part of a regional or national airport system. This paper finds that market orientation is significantly higher at independently operated airports compared to system-operated airports and that independent governance structures, market opportunities and competitive intensity have a significant positive effect on airport market orientation.     

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.     

Substitution and complementarity in aviation: airports vs airlines

In this paper a model concerning substitution and complementarity on the linkage between airport facilities and airlines from the viewpoint of pricing policy is formulated. This model is used to analyze whether airport pricing policies, e.g. to ensure cost recovery, are compatible with competition for transfer passengers. It is found that airports with a high volume of demand can pursue cost recovery and still be the most preferred hub. Airports with a low level of demand will not be the preferred hub, even if the larger airport charges higher taxes to recover costs.     

Assessment of passenger benefits brought about by international airport projects

This study sets forth a method to calculate the passenger benefits of an international airport project and assesses the passenger benefits brought about by two international airport projects.An international airport project mainly increases the number of flights and the possibility of determining convenient timetables. It does not significantly decrease the flight time of international travel. Thus, the user benefits brought about by an international airport project cannot be expressed by the conventional concept of ‘traveling time’, which is the term generally used.In this study, the ‘Expected Value of Traveling Time’ and ‘Expected Value of Generalized Cost’ are presented as indexes to evaluate improvements in convenience brought about by international airport projects. The passenger benefits of two airport projects in Japan are measured by consumer surplus calculated from the demand function using these indexes.These indexes are accurately calculated taking into consideration factors such as scheduling connections between domestic and international transport, and so enable a grasp not only of reductions in flight time, but also of passenger benefits resulting from international airport projects, such as increases in the number of flights and reductions in the time required to make transfers during domestic travel.     

US airport financial reform and its implications for airport efficiency: An exploratory investigation

This study investigates the effect on airport productive efficiency of two major funding sources used by US airports, namely the Airport Improvement Program (AIP) grants and the Passenger Facility Charges (PFC). A two-stage Data Envelopment Analysis (DEA) modeling approach is employed for this purpose. In the first stage, we estimate airport productive efficiency using a variable returns-to-scale DEA model with both desirable and undesirable outputs. In the second stage, random effects regression models are estimated with airport efficiency scores from the first stage as the dependent variable and PFC and a proxy for AIP grants as two of the explanatory variables. By applying the two-stage DEA model to 42 primary US airports, it is found that PFC use has a positive impact on airport productive efficiency, whereas the impact of AIP grants is negative. Multiple counterfactual scenarios are examined by altering the mix of the two types of funding sources. The results show that simultaneously raising the PFC ceiling and decreasing AIP grants could lead to greater airport productive efficiency. The US federal aviation authority would also benefit from realizing these scenarios, especially given the budgetary constraints it faces.     

Airport–airline vertical relationships,their effects and regulatory policy implications

This paper examines the forms and effects of vertical relationships between airports and airlines with a focus on the North American and European aviation markets. We find that such vertical relationships enables those participating to achieve various benefits and may be formed as a competitive response to other competing airport–airline alliances. In some cases, vertical airport–airline relationships strengthen the hub status of major airports, leading to increased employment and service quality in local markets. On the other hand, preferential treatment of a particular airline by an airport may enhance that airline’s market power, allowing it to dominate the airport and charge hub premiums. The competition and welfare implications of airport–airline vertical alliances can be complicated and two-sided, subject to the influences of other factors such as the market structures of the airline and airport markets.