The impact of item substitutions on production–distribution networks for supply chains

This study investigates the effects of various factors relevant to item substitution strategy on two-echelon production–distribution networks in decentralized supply chains. The item substitution strategy replaces preset items with alternatives to fulfill customer demands. The independent factors for the substitution strategy include substitution scope and available options. The moderators for the strategy include the dual sourcing strategy, substitution amount, and the echelons of the production–distribution network. The results of the experiment show that the item substitution strategy modulated by three moderators improved supply chain profit compared to cases where the strategy was not used.     

The effects of travel time and cost savings on commuters’ decision to travel on public transport routes involving transfers

Urban cities are struggling with congested networks, noise and air pollution. Government agencies respond by investing in infrastructures to create integrated public transport systems. Transfers are a key element for the success of network integration. This study explores commuters’ perception of transfers by adopting Weber’s Law “Just Noticeable Difference”. Two trip attributes, travel time and cost, are investigated. Two stated-preference surveys are conducted at the University of Auckland, New Zealand. Results show that, on average, users’ desire at least a 33% reduction in their current travel time and at least a 16% reduction in their current travel cost given basic comfort amenities at the interchange. For an interchange with more comfort, on average, users’ desire at least a 25% reduction in their current travel time and at least a 10% reduction in their current travel cost. The findings are expected to be used as a guideline by planners when developing integrated public transport networks. Recommendations have been made to the Auckland Regional Public Transport Plan.     

Can public slow charging accelerate plug-in electric vehicle sales? A simulation of charging infrastructure usage and its impact on plug-in electric vehicle sales for Germany

Alternative fuel vehicles face the lack of refueling infrastructure as one obstacle to market diffusion and potential operators of refueling stations await significant market shares before constructing a dense refueling network. The resulting lock-in effect or chicken-egg-problem has scarcely been analyzed for plug-in electric vehicles (PEVs) up to now. The research question of this article is How much public charging infrastructure for PEVs is needed and is there mutual interaction in the diffusion of public charging infrastructure and electric vehicles?

Here, we present an agent-based market diffusion model for PEVs and their charging infrastructure that is based on a large number of individual driving profiles for private and commercial car holders in Germany. Our results demonstrate the possibility of a market diffusion in Germany without any slow public charging infrastructure until 2030. Although a charging point at home is obligatory for early adopters, the second-best option for an infrastructure set-up is at work where the majority of vehicles is parked for a long time during the day, the installation is not costly and users profit more than from public facilities. Public slow charging facilities do not increase PEV market shares and they need to be subsidized for a long time.     

The impact of security on travelers across the Canada–US border

Since September 11, 2001 numerous security measures have been implemented along the Canada–US border, including the Western Hemisphere Travel Initiative (WHTI). Concerns have been raised about the impact of these security measures on the movement of people across the border. This paper examines the impact of security on the number of travelers crossing the border by employing a multivariate regression analysis utilizing monthly data from January 1991 to December 2007. In addition, the impact of the WHTI is specifically examined by employing a similar multivariate regression analysis with monthly data from October 2001 to December 2011. Controlling for the effects of a number of factors, such as exchange rates and gas prices, results showed that security measures, including the WHTI, have negatively impacted the number of Canadian visitors to the US and American visitors to Canada traveling by automobile. The findings of this study will be of interest to researchers, policy makers, and a variety of stakeholders in the tourism industry in both countries.     

Evaluating transport user benefits and social surplus in a transport market—The case of the Norwegian ferries

The article first infers how consumer surplus in a market is linked to revenue under different assumptions about fare elasticity and when using different types of demand functions. This information is added to producer surplus in order to derive social surplus. The method, thus, produces a simple approach for authorities to assess social surplus in a market and its benefits to the users. A modified exponential demand function is applied to calculate consumer surplus and social surplus for 97 ferry services in Norway regulated by the state. The calculations are based on empirical data concerning ferry fare, revenue data at service level and reasonable assumptions about fare point elasticity for services covering different distances.In 2007, these services generated welfare for the users (consumer surplus) and the society (social surplus) amounting to about 5.8 billion NOK and 4.3 billion NOK, respectively. Consumer surplus and social surplus varied considerably amongst the services. Only 3 of the 97 services operate with positive profits and, hence, without subsidies. About 21 of the services contribute negatively to social surplus. Many of these unprofitable services are the only transport alternatives in rural areas and could be argued to continue operation according to politically decided regional measures. Implicitly, maintaining all these 21 services means that the welfare for the people in these areas is valued as up to four times greater than the welfare of the people in the rest of society.     

An economic–geographic assessment of the potential for a new air transport hub in post-Gaddafi Libya

Post-war Libya is faced with the challenge of adopting an air transport strategy for the future. One issue is how to address projects inaugurated under the Gaddafi government, such as the terminal extension at Tripoli International Airport. Additionally, the state-owned Afriqiyah Airlines had been establishing a niche hub in Tripoli before the 2011 war, but this development has subsequently been stalled.Against this background, we analyse the prospects of an air transport hub operation in Libya, focusing on traffic between Africa and Europe, from a bird’s-eye economic–geographic view. First, a literature review is undertaken to identify general success factors for air transport hubs. Second, a weighted average distance penalty (WADP) indicator is developed and applied to Tripoli as a potential hub location. This indicator considers all 4755 O&Ds between Europe and Africa with more than 100 passengers in 2012. For sensitivity reasons, alternative WADPs are estimated for the 3209 traffic flows not including North Africa and for (forecasted) future air traffic demand in 2020. The results for Tripoli International Airport are benchmarked against competing hub locations, such as Algiers, Cairo, and the major European airports. We conclude by discussing the implications of the current and anticipated future security and economic situation in the country.     

Analytic Hierarchy Process assessment for potential multi-airport systems – The case of Cape Town

This paper discusses the application of an Analytic Hierarchy Process (AHP) analysis for the assessment of a potential multi-airport development. The case study presented evaluates the potential introduction of a second airport in the City of Cape Town, which is currently served solely by Cape Town International Airport. With socioeconomic development, spatial planning, transportation improvement, environmental preservation and financial viability proposed as the main objectives of airport development, a survey of key stakeholders addressed the relative weighting of these criteria in the AHP. The multi-criteria decision-making assessment, as well as analyst judgement, concluded that the City of Cape Town should continue to utilise a single-airport system until passenger volumes per annum increase beyond the 27 Million Air Passengers per annum level.     

Success factors for the privatisation of airports—an airline perspective

This article examines different approaches to airport privatisation. It shows that privatisation can only be a success when government provides a suitable regulatory framework prior to privatisation. This framework must protect the interests of the consumer and ensure the participation of airlines as primary users in the privatisation project, thus establishing a solid basis for a strong partnership between the airlines and the airport. To accomplish this, the monopoly income of an airport should be subject of a price cap mechanism following the single till principle, best being set up in cooperation with the airlines and controlled by an independent regulator.     

The new UK model for air traffic services—a public private partnership under economic regulation

This paper outlines the institutional arrangements for the new public private partnership for air traffic services in the United Kingdom and describes the price regulation regime that has been put in place.     

April 2010 UK Airspace closure: Experience and impact on the UK’s air-travelling public and implications for future travel

Ash emitted from the Eyjafjallajökull Icelandic volcano resulted in the closure UK’s airspace in 2010. This research highlights passengers experience throughout the crisis and it is impacted on their wellbeing. Analysis of a survey shows that just 90% of respondents highlighted the failure of airline, travel agencies and/or government to provide timely and appropriate information. The airspace closure also caused adverse health impacts, with 79% of respondents highlighting this as a concern. Although passengers were greatly inconvenienced and had a negative experience, seventy-nine percent of respondents indicated that the crisis had little or no impact on their decision to fly in the future.     

Where does flygskam come from? The role of citizens’ lack of knowledge of the environmental impact of air transport in explaining the development of flight shame

A growing number of citizens are concerned about the environmental impact of air transport, and aviation has become synonymous with high carbon emissions and global warming, which has led to the development of flygskam (or flight shame) in Europe. While its impact on air traffic remains unclear, flight shame has forced the airline industry to react and better understand its origin. In this research, building on the growing literature on industry and organizational stigma, we assume that flight shame can be partly explained by a distorted public perception of the environmental impact of air transport. Accordingly, we investigate the level of knowledge of the environmental footprint of air transport. Based on a sample of 1018 French respondents, we reveal that more than 90% of respondents overestimate the share of air transport in global carbon emissions. We also show that 98% of the respondents underestimate the reduction in carbon emissions per passenger. Finally, we investigate the awareness of the measures taken by the industry to curb its carbon emissions and highlight, for instance, that 70% of respondents overestimate the fuel consumption of the newest generations of aircraft. Based on these results, we draw lessons for airlines and for the air transport industry to help cope with flight shame in Europe.     

Behavioral intentions of public transit passengers—The roles of service quality,perceived value,satisfaction and involvement

Understanding the behavioral intentions of public transit passengers is important, because customer loyalty is seen as a prime determinant of long-term financial performance. This study highlights such behavioral intentions and explores the relationships between passenger behavioral intentions and the various factors that affect them. Apart from the factors recognized by past studies, such as service quality, perceived value, and satisfaction, this study addresses the importance of the involvement of public transit services in passenger behavioral intentions. By using passenger survey data from the Kaohsiung Mass Rapid Transit (KMRT), a newly operating public transit system in Taiwan, we apply the structural equation modeling technique to analyze the conceptualized relationship model. The findings reveal that all causal relationships are statistically significant. Managerial implications are discussed.     

The impact of airline service quality on passengers’ behavioral intentions using passenger satisfaction as a mediator

This research study measures the perception of airline service quality based on data collected from Pakistan International Airline (PIA) passengers using SERVQUAL. It investigates the impact of service quality dimensions on passenger's behavioral intentions in presence of mediator (passenger satisfaction). The data is collected through an adopted SERVQUAL instrument from the respondents in the domestic and International waiting lounges of PIA. The data is analysed using reliability statistics, correlation analysis and through hierarchal regression analysis. A systematic random sampling technique is used to analyze the study sample and PROCESS macros was used to run mediation analysis. The results reveals that passenger's satisfaction mediates the relationship between airline service quality and behavioral intentions. Practically, PIA should not only improve on Service Quality but should build up quality consciousness among on ground and inflight employees; pay attention to reliable factors and establish customer goodwill through enhanced services; regard reliability factors and enhance employee accomplishment. Implications of these results for management policy and practice are highlighted as guidelines. PIA managers can now better understand the importance of service quality and its long-term benefits in the form of customer loyalty.     

The impact of carrier service attributes on shipper–carrier partnering relationships: a shipper’s perspective

Carrier service attributes are important for developing shipper–carrier partnering relationships. This study used structural equation modeling to investigate the impact of carriers’ service factors––timing-related, pricing, warehousing and sales services––on shippers’ satisfaction from shipper–carrier partnering relationships. Results indicate that timing-related services influence shippers’ satisfaction from such relationships, and shippers’ satisfaction positively influences partnering. However, the four service factors do not directly influence shipper–carrier partnering relationships.     

The impact of emigrants’ homeland relations on air travel demand in a security volatile market: a case study on Lebanon

The impacts of international migration have been heavily studied. Much of this analysis has been carried out within the framework of the economic and social effects of migrants, to both host and home countries. This paper looks at the impact of Lebanese emigrants’ homeland relations on air travel demand in a security volatile market. The emphasis is on two particular features: first, the principal impact of liberal air transport policies in facilitating emigrants’ home visits; and second, the sensitivity of passenger-GDP relation. The paper pulls together data and other cases on the Lebanese emigration evolution and explains its impacts on the economy as well as on the air transport market in Lebanon. The study findings suggest that in Lebanon and due to the presence of interrelated factors, the variation and the strength of the relationship between traffic levels and GDP are neither consistent nor static. The considerably huge expatriate communities, which are three times greater than the Lebanese residents, are said to defy the negative impact of security instability on the air passenger growth through frequently visiting expats. Moreover, the emigrants’ economic support to Lebanon through remittance inflows is observed to dampen the sensitivity of the relationship between passenger and GDP in times of war and peace. The results should be looked at as indicative of trends to encourage policy makers to consider how best to make use of these human and financial flows.     

The impact of low-cost carriers on airport choice in the US: A case study of the Washington–Baltimore region

Previous research has shown that low-cost carriers (LCCs) may stimulate traffic at an airport by offering low fares. Using passenger survey data from the Washington–Baltimore region’s three airports, we find that the benefits of LCCs to airports extend beyond the traffic generated directly by the LCCs through their low fares. In addition, we find that the mere presence of an LCC at an airport can attract passengers, even to competing carriers. These “halo effects” from LCC presence increase the significance to airport managers of attracting LCCs in order to generate passenger demand.     

Generic functions of railway stations—A conceptual basis for the development of common system understanding and assessment criteria

The redevelopment of railway stations calls for the integration of many different objectives. Two crucial challenges thereby are the development of a common system understanding among the multiple stakeholders with potentially conflicting interests and the structured definition of comprehensive assessment criteria. Defining the functions of the system railway station, i.e. discussing what the system should do, can support solving these challenges. Based on a review of Swiss railway stations in a transdisciplinary research project applying four focus groups (n=38), 28 expert interviews and two expert workshops, we present a structured framework of five generic functions of railway stations and their interdependencies. The five generic functions are: linking catchment area and transport network, supporting transfer between modes of transport, facilitating commercial use of real estate, providing public space, and contributing to the identity of the surrounding area. Potential conflicts between functions are identified. They concern the competition of multiple functions for space, for customer attention or for revenues as well as increasing system complexities with station size. We illustrate how the framework of functions can be used to foster a common system understanding and to develop assessment criteria. Although elaborated from a Swiss perspective the framework is perceived adaptable to railway stations of other countries.