From hub to tourist destination – An explorative study of Singapore and Dubai's aviation-based transformation

The growth of air transport networks and deregulation have allowed small, low-populated places like Singapore and Dubai to become major international tourism destinations. Both have used tightly combined airline, airport and tourism strategies to help achieve this. Here we analyse developments in Singapore and Dubai by examining interactions between their airlines, airports, governments and tourism authorities, and how integrated management strategies leveraged their aviation traffic hubs to develop tourism destinations.     

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.     

The relationship between accessibility and price – The case of Swedish food stores

Food accessibility has been an important issue for as long as there has been human civilisation. Today, food, at least in the wealthier parts of the world, is accessible to most people. However, there are concerns regarding the market power of major retailers and the availability of affordable food among certain population groups. In this paper, I investigate how well accessibility, the ease with which individuals can reach various destinations, explains food prices in Swedish food stores. I have done this by combining price information on a large number of Swedish food stores from 2010 to 2014 with a state-of-the-art accessibility measure from the Swedish national transport model. I have found a quadratic relationship between accessibility and price, in which prices in the least and most accessible parts of Sweden are 2–3 per cent higher than in the least expensive parts, which are towns and villages around larger cities. The relationship remains significant when adding controls and accessibility is better at explaining price than measures of market structure previously used in the literature.     

Together or separately? The efficiency and market structure of Portuguese airports

This paper analyses the market structure of Portuguese airports and the way that they have performed. It is found that the profits exceeded normal returns between 2001 and 2008, with productivity growing only slowly despite expansions in passenger numbers and aircraft movements. A particular problem that emerges is a loss of efficiency at airports dominated by the major airport operator.     

Air accessibility and growth – The economic effects of a capacity expansion at Vienna International Airport

We use an econometric endogenous growth model to estimate the impact of air accessibility on GDP and investment growth. This is done in a dynamic panel system estimation framework for the EU-15 between 1993 and 2006. The results are then used to predict the economic effects of an increase in capacity at the Vienna International Airport using actual forecasts of the required information set. We find a GDP elasticity of air accessibility of 0.014 and an investment elasticity of 0.05 for our sample. Given the official passenger forecast this would lead to additional GDP growth in Austria of accumulated 0.81% based on the values of the restricted scenario (no third runway). In a more conservative forecast scenario of 3% annual passenger growth, a third runway is projected to increase GDP by 0.2% by 2040.     

Runway capacity management – An empirical study with application to Doha International Airport

This paper examines a three-faceted approach for runway capacity management, based on the runway configuration, a chosen scheduling approach, and an aircraft separation standard. These factors prompt alternative runway settings that are encapsulated using a classical mixed-integer formulation. The optimal solution for each runway setting is compared against our proposed optimization-based heuristic. This integrated approach is applied to investigating the transition from the (Old) Doha International Airport to the New Doha International Airport. Our empirical study based on historical data reveals that the proposed heuristic consistently yields optimal or near-optimal schedules, with considerable savings in fuel cost and reductions in delays, while preserving the spirit of an FCFS sequencing policy.     

The sky is the limit? The determinants and constraints of European airports commercial revenues

This study investigates the determinants of commercial and retail airport revenues from real estate operations. Aviation revenues per passenger are mainly determined by the national income per capita in the area where the airport is located, the percentage of leisure travelers and the size of the airport. Main drivers of commercial revenues per passenger include the number of passengers passing through the airport, the ratio of commercial to total revenues, national income, the share of domestic and leisure travelers and the number of flights. These results are in line with previous findings of a negative influence of business travelers on commercial revenues per passenger. We also find that a large amount of retail space per passenger is generally associated with lower commercial revenues per square meter confirming decreasing marginal revenue effects. Real estate revenues per passenger are positively associated with national income per capita at airport location, share of intra-EU passengers and percent delayed flights.     

The role of schedule delays on passengers’ choice of access modes: A case study of Japan’s international hub airports

We empirically study passenger modal-choice behavior to access an international hub airport, by using stated preference (SP) data and by constructing a binomial logit model. We found that passenger modal choice is affected by the service level of the access modes: travel time, travel cost, waiting time, and delay cost. The results also indicate that if passengers choose access mode in advance they consider service frequency: departure timing from home, and the arrival timing at the airport. Moreover, our results indicate that travelers’ willingness to pay for saving time differs by time of a day. They are apt to pay more in the morning than in the afternoon. These outcomes must contribute to improve the access flight service from local to hub airports to handle the needs of passengers.     

The multi-period service territory design problem – An introduction,a model and a heuristic approach

In service territory design applications, a field service workforce is responsible for providing recurring services at their customers’ sites. We introduce the associated planning problem, which consists of two subproblems: In the partitioning subproblem, customers must be grouped into service territories. In the scheduling subproblem, customer visits must be scheduled throughout the multi-period planning horizon. The emphasis of this paper is put on the scheduling subproblem. We propose a mixed integer programming model for this subproblem and present a location-allocation heuristic. The results of extensive experiments on real-world instances show that the proposed heuristic produces high-quality solutions.     

Minimum delay or maximum efficiency? Rising productivity of available capacity at airports: Review of current practice and future needs

Around the world airports are facing capacity constraints more and more everyday, generally the runway capacities are restricted by governments and airports are unable to accept additional aircrafts. Technological improvements can decrease the necessity of policy limitations in terms of noise and air pollution. Rapidly increasing numbers of traffic developed severe scarce capacity, congestion and delay problems and the capacity that is available, needs to be allocated as efficiently as possible. Airport capacity can be allocated in different ways; administrative capacity management with slot allocation and traffic distribution rules; market-based capacity management with slot auctioning, secondary trading and peak pricing; a combination of both mechanisms; and no regulation mechanism as applied in the USA with the exceptions of busiest airports. The review contains the analysis of current state of practice and the review of relevant research on capacity and slot allocation modelling with policy and demand management perspectives. It targets identification of existing problems, inefficiencies, gaps and requirements in current practice of slot allocation mechanisms, defining options for change in policies to allocate slots more efficiently, transparent and fair by investigating market-based mechanisms. The objective of this paper is to contribute to the ongoing research for improvements to the slot allocation process that can be rationally implemented in practice in order to improve efficiency, fairness and transparency. For that purpose, based on these slot allocation approaches, we provide a critical review of status-quo, literature and current research with demand and congestion management perspectives by considering overall social welfare, airline and airport surplus, passenger welfare and explore hypothetical, computational and practical challenges that have arisen from cross-disciplinary methodologies.     

The influence of fleet mix,ownership and LCCs on airports’ technical/environmental efficiency

This paper analyses the efficiency of 33 Italian airports for the period 2005–2008. In addition to conventional outputs, differently from previous contributions, two environmental externalities are considered: noise and local air pollution. We perform a two-stage analysis. First, we implement a directional distance function (DDF) model and get airports’ efficiency scores. Then, we study the factors affecting efficiency using a bootstrapping procedure. We find that the fleet mix significantly affects technical/environmental efficiency. Moreover, we provide evidence that public airports have higher efficiency scores. Last, LCCs have no effect on technical/environmental efficiency.     

Preparing for ‘COVID-27’: Lessons in management focus – An Australian general aviation perspective

This paper considers the observed impacts of COVID-19 on the behaviour of a cross-section of the general aviation (GA) community in Australia. It specifically observes the nature of management decision making observed in the sector, and the financial impacts of such choices. This paper highlights a lack of financial acumen in the Australian GA community which is likely to inhibit resilience in the sector and limit its ability to learn from the economic shock COVID-19 represents. Finally, the paper proposes several initiatives to improve the quality of management decision making in the sector's leadership, with a view to improving its financial outlook and visibility to policy makers.     

Communication and mobility behaviour – a trend and panel analysis of the correlation between mobile phone use and mobility

The paper examines the assumption about the complementarity between telecommunications and transport on the level of individual persons. Taking into account that previous studies have shown the particularly strong correlation between mobile phone use and travel behaviour, telecommunications use is considered by focussing on the mobile phone. Using panel data from Germany for the years 2004 and 2007 the first step consisted in an investigation of changes in mobile phone use taking into consideration also the level from which potential changes started. About one half of the respondents had changed their mobile phone use, in most cases by an increase of use. In a second step a comparison was made to potential changes in travel behaviour of the observed persons. The results show that in those groups of persons where the mobile phone use was on a high level or even increased from a high level in 2003, travel behaviour in terms of travel frequency decreased less than for all other persons or even increased. The assumption that changes in “life circumstances” such as new place of residence or change of household size trigger the change in mobile phone use or travel behaviour could be generally confirmed.     

An emerging tourism planning paradigm? A comparative analysis between town and tourism planning

This article examines the roots and the evolution of tourism and town planning theory and practice. It discusses how both fields have interacted with each other, and provides some clues about the way in which tourism and town planning theory and practice are likely to evolve in the future. It is argued that tourism planning theory is still looking for its own identity and ways of evolving in the future. Copyright © 2001 John Wiley & Sons, Ltd.     

Tourism and the ‘dry law’ in Kerala – exploring the nexus between tourism and alcohol

ABSTRACT

On the 24th of August 2014 the state of Kerala announced that alcohol will be progressively banned through different phases, with a plan of implementing a complete ban by 2025. The ban was eased in July 2017; yet, it sparked heated debates about its impacts on the tourism industry, which highlighted the strong nexus between alcohol and tourism. Despite animated discussions continued online for months after the announcement of the ban, there have not been studies assessing the impact of the ban on tourism/tourists. Through a thematic analysis of online texts published on TripAdvisor, this paper explores tourists’ perceptions and opinions of the implementation of the ‘Dry Law’ in Kerala. Moreover, this work also investigates whether the ban discouraged potential tourists to visit Kerala. Overall, our analysis reveals that the ban did not discourage potential tourists to visit Kerala, although many regarded the possibility of having moderate amounts of alcohol on holiday as pleasant. Importantly, our study also contends that the narratives about the ‘Dry Law’ produced and propagated online were often representative of political structures of power, which linked tourism to alcohol irrespective of the real impact of the ban on tourism.     

Ready for digital transformation? The effect of organisational readiness,innovation, airport size and ownership on digital change at airports

This study investigates the effect of organisational readiness, innovation and airport size and ownership on digital change at airports. Data is collected from a survey of managers at 94 airports worldwide and analysed using partial least squares structural equation modelling. Organisational readiness is found to have a direct effect on digital change. Organisational readiness also has a direct effect on innovation, which subsequently affects digital change. Airport size has a direct effect on digital change while the effect of ownership is not significant. The findings show that successful development of organisational readiness can be used to speed up the rate of innovation needed for digital change at airports.