On the factors that affect airline flight frequency and aircraft size

This paper assesses the determinants of aircraft size and frequency of flights on US airline routes by considering market demographics, airport characteristics, airline characteristics and route characteristics. It shows that frequency and aircraft size increase with population, income, and runway length. An increase in the proportion of managerial workers in the labor force or the proportion of population below the age of 25 results in greater frequency with the use of small planes. Slot constrained airports and an increase in the number of nearby airports lead to lower flight frequency with the use of smaller planes. Hubs and low cost carriers are associated with larger plane sizes and higher frequency, while regional airline ownership leads to higher frequency and the use of smaller planes. An increase in distance between the endpoints leads to lower frequency with the use of larger planes. As airport delay rises, airlines reduce frequency and use smaller planes, though when airport cancellations rise, flight frequency increases with the use of larger planes.     

Airline merger and competition in Japan: A conduct parameter and theoretical price approach

In 2003, Japan Airlines and Japan Air System merged to become an equal rival to All Nippon Airways, which had significant market power in the domestic air transportation market in Japan. This paper examines the merger effects on the competition structure of the air transportation market using conduct parameter and theoretical price approaches. We test to see if the merger changed the market structure because there had been a leader–follower relationship among three carriers before the merger, and we had an equal competitor relationship between two carriers after the merger.     

Calculating load factors for the transatlantic airline market using supply and demand data – A note on the identification of gaps in the available airline statistics

This paper takes a critical view of the verification of load factors for the direct transatlantic airline market by combining supply and demand-data. The supply-related data originate from the Official Airline Guide, a well-known data source that contains information on scheduled flights. The demand-related data originate from the Marketing Information Data Transfer database, a data set containing information on actual airline bookings. Combining both data sets enables us to calculate the seat occupancy of direct flights between North-West Europe and the US for 2001. Based on the results, we assess the utility of the joint use of these data sources for aviation economic research, and identify various gaps in the available airline statistics.     

Modeling the effects of wage premiums on airline competition under asymmetric economies of density: A case study from Brazil

This paper investigates the effects of wage premiums on the competition between Full Service Carriers (FSC) and Low Fare Carriers (LFC) in the airline industry. We study the impact of changes in the labor market and the resulting effects on performance in the product market and examine the role of economies of density. We develop an oligopoly model of airline competition with endogenous wages and simulate increases in labor costs. We apply the model to the case of the most important domestic route of Brazil using airline/route-specific demand and costs data. Our chief contribution relies on the empirical model of asymmetric economies of density for the competing business models. We estimate that LFCs have higher economies of density than FSCs. With the empirical models of demand, costs and wages, we compute the wage-elasticities of price-cost markups. We find that, on account of the higher sensitivity of marginal costs to labor costs of the FSCs, their markups are more affected by wage premium increases than the markups of the LFCs. The results are attenuated by higher economies of density, but amplified by higher price-elasticities of demand and lower economic growth.     

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.     

Recovering costs through price and service differentiation: Accounting for exogenous information on attribute processing strategies in airline choice

The entry of low cost airlines has thrown out a challenge to all airlines to find ways of attracting passengers, through a mix of fare discounting, greater frequency, improved flight times and no-frill's levels of on-board service. These competitive strategies have an impact on cost recovery. As airlines seek business in an increasingly heterogeneous passenger market, a greater understanding of what matters to potential passengers in choosing an airline grows in importance. Traditional studies of passenger airline choice assume that all attributes matter, but some to a lesser extent. What happens to the empirical evidence on willingness to pay when specific attributes are totally ignored by particular passengers? In this paper, we examine the impact of individual-specific attribute processing strategies (APS) on the inclusion/exclusion of attributes on the parameter estimates and behavioural outputs of models of airline service and fare level choice. Modelling practice assumes that whilst respondents may exhibit preference heterogeneity, they employ a homogenous APS with regards to how they process the presence/absence of attributes of stated choice (SC) experiments. We demonstrate how information collected exogenous of the SC experiment on whether respondents either ignored or considered each attribute of the SC task may be used in the estimation process, and how such information may be used to provide outputs that are attribute processing strategies segment specific.     

The persuasiveness of framed commercial messages: A note on marketing implications for the airline industry

This study uses the concepts of customer segmentation and time pressure to examine the persuasiveness of commercial message framing. It finds positively framed (PF) messages are more persuasive than negatively framed (NF) messages when directed toward intensively involved air travelers under time pressures but that NF messages are more persuasive when directed toward interested air travelers not under any great time constraints. Further, uninterested (minimally involved) air travelers may fail to be persuaded by any message framing regardless of how pressed they are for time.     

A study on the importance of airline selection attributes by airline type: An emphasis on the difference of opinion in between Korean and overseas aviation experts

The main purpose of this research is to understand the relative importance of airline selection attributes that are considered important by passengers when selecting an airline. Specifically, we analyzed how the attribute selections differed based on airline types, a Full Service Carrier (FSC) and a Low Cost Carrier (LCC). For this purpose, a Delphi analysis was performed with 34 Korean aviation experts and 32 overseas aviation experts as the target sample groups. Statistical tests including Mann-Whitney U Test and Wilcoxon Signed Rank Test, were used to analyze the selection attributes. In the case of FSCs, safety, flight schedule, cabin interior, and fast check-in processes were considered to be important selection attributes whereas for LCCs, air fare level, flight safety, the convenience of air ticket purchasing procedures, and additional charges were considered to be the important selection attributes. Additionally, there was a difference in the importance of airline selection attributes depending on whether it was a Korean or overseas aviation market. The result of these findings may be utilized as basic data in establishing a marketing strategy for an airline company to attract more passengers.     

The impact of carbon emission fees on passenger demand and air fares: A game theoretic approach

The implementation of an environmental market-based measure on U.S. aviation industry is studied. Under this policy, each airline pays a carbon fee for the carbon dioxide emissions it generates. The impact on ticket prices and corresponding market shares is investigated via the joint estimation of an air travel demand model and an airlines' behavior model. In the demand model, aggregate air traffic data is used to determine the marginal effects of flight attributes that are specific to itinerary, airline and airport on market share. The airline's behavior model incorporates the carbon fee in the airline marginal cost. After the implementation of the carbon policy, the increased cost forces airlines to adjust ticket prices in order to maximize profits. The results obtained by the proposed model indicate a moderate price increase which strongly depends on the per tonne carbon price. Air travel demand falls from 2.4% to 21% depending on the carbon price level.     

Investigating the inter-departmental synergy in demand for rooms and auxiliary services: a spatial econometric approach

This study investigates interdependence among hotel revenue centres, using dataset on room guests and customers of auxiliary departments in Seoul, Korea. Spatial econometric methods are applied to examine the causal relationships between demand for rooms and auxiliary facilities. Results suggest that while the room demand significantly contributes to demand for auxiliary services, the reverse does not hold.     

A note on the determinants of airline choice: The case of Air Asia and Malaysia Airlines

Logit analysis is employed on primary data from departing air passengers at the Penang International Airport, Malaysia to examine the determinants of airline choice between incumbent Malaysia Airlines and low-cost Air Asia. With the exception of educational level and ethnicity, other socio-demographic characteristics do not play a statistically significant role in determining airline choice. Instead, behavioral factors such as concerns over schedules and fares, routes, booking methods and purpose of journey are found to be predictors of airline carrier choice.     

Determining the predictors for ease of sleep while on aircraft: Regression and qualitative analyses

BackgroundFactors predicting passengers’ ability to fall asleep and levels of sleep anxiety, while traveling on a commercial flight, are investigated through a two-study mixed design.MethodsData collected from approximately 400 participants contributed to the development and validation of multiple regression equations and model fit analysis; and participants responded to related open-ended questions.ResultsRegression equations yielded between two to seven predictors and predicted between 6.7% and 27.7% of the variance, ps < .001. Model fit was strong in all cases. An inductive qualitative approach provided detailed insight into passengers’ concerns and barriers over sleeping on a commercial flight.DiscussionAs the field of commercial aviation continues growing, researching and understanding passengers' experiences and perceptions is crucial to the success of the industry as consumers ultimately drive the market. Passengers’ perceptions of sleep quality on commercial aircraft is a key factor influencing their traveling decision. Therefore, a better understanding of this phenomenon can provide crucial information to future passengers, airline companies, regulatory agencies, and manufacturers, potentially influencing the future success of the aviation industry.     

Istanbul Airport (IGA) and quest of best competitive strategy for air cargo carriers in new competition environment: A fuzzy multi-criteria approach

Our paper determines the best competitive strategy that can be implemented by existing and potential air cargo carriers in the Turkish Air Cargo Industry with the operationalization of Istanbul Airport (IGA) and reveals the competitiveness level of the industry for four bases. We look at the competitiveness levels by analyzing the competitive environment of the industry nationally and internationally both before and post IGA (estimated). We use fuzzy TOPSIS (FTOPSIS) based on the Fuzzy AHP (FAHP) to handle vagueness, which is inherent in the nature of new competition conditions integrating the framework of Porter's five forces analysis. In our study, we use the five forces as our main criteria (with a total of 19 sub-criteria) and the competitive strategies as our alternatives. Our results reveal that the cost-focused strategy is the best competitive strategy that can be implemented by existing and potential carriers in the industry. Another significant result underscores the fact that IGA increases the competitiveness level of the Turkish Air Cargo Industry both nationally and internationally to a fairly high level. Also, the threat of potential competitors is first among the five forces in the industry's new conditions. Our study fills the gap in the literature on the effects of major structural changes in an air cargo industry on the competition among carriers.     

Implications of the ageing society and internationalisation for airport services: A perspective on passenger demand for personal space at airport terminals

“Per-passenger-space” has been used as one of the fundamental units of Level of Service (LOS) measurement to evaluate the capacity of airport terminals for passenger comfort and service satisfaction. This study addresses the questions of how air passengers perceive personal space as an airport service attribute, and how the territoriality of passengers is moderated by their age and cultural background. Participants were grouped depending on their age and nationality for a comparative study. The results from the Repertory Grid Technique (RGT) and open-ended questions supported the conclusion that passengers of different age and cultural backgrounds perceive personal space differently, and their service satisfaction would be partially affected by the availability of personal space within the airport terminal. These findings suggest a necessity for alternative LOS standards that are cost-effective and able to reflect changing age structure and cultural composition of air passengers.     

A heuristic approach for the green vehicle routing problem with multiple technologies and partial recharges

This paper presents several heuristics for a variation of the vehicle routing problem in which the transportation fleet is composed of electric vehicles with limited autonomy in need for recharge during their duties. In addition to the routing plan, the amount of energy recharged and the technology used must also be determined. Constructive and local search heuristics are proposed, which are exploited within a non deterministic Simulated Annealing framework. Extensive computational results on varying instances are reported, evaluating the performance of the proposed algorithms and analyzing the distinctive elements of the problem (size, geographical configuration, recharge stations, autonomy, technologies, etc.).     

The effects of perceived crowding,emotional dissonance,and emotional exhaustion on critical job outcomes: A study of ground staff in the airline industry

Using Conservation of Resources (COR) theory and Stressor–Strain–Outcome (SSO) model as the theoretical underpinnings, this study proposes and tests a research model that examines emotional exhaustion as a mediator of the impact of emotional dissonance on service recovery performance, turnover intentions, and absenteeism. The model also investigates the mediating role of emotional dissonance in the relationship between perceived crowding and emotional exhaustion. Data obtained from ground staff in the low cost airline industry in Turkey were used to gauge these relationships. The results from structural equation modeling suggest that passenger crowding as perceived by ground staff results in emotional dissonance that in turn heightens emotional exhaustion. The results further suggest that emotional exhaustion fully mediates the effect of emotional dissonance on turnover intentions and absenteeism. Interestingly, the results suggest that the impact of emotional dissonance on service recovery performance, mediated by emotional exhaustion, is positive. Theoretical and management implications based on the aforesaid findings are discussed in the paper.     

Extending the dimensions of personal exposure assessment: A methodological discussion on perceived and measured noise and air pollution in traffic

BackgroundThe exposure to air pollution and noise is severely impacting people's health and is especially high alongside urban road- and rail-traffic. In traditional exposure research, air pollution and noise are monitored with stationary measurement devices or based on models. During the last years, mobile measurement techniques with GPS-tracking have increased. Moreover, studies have investigated another dimension of personal exposure: the perceived exposure.AimMost of these studies make use of quantitative methods such as surveys, complemented by stationary or wearable sensors. Little research exist that applies qualitative methods to examine how people experience and perceive exposure on-the-move, contrasting it to actual measurements. The aim of this paper is to discuss the potential of a novel method, which extends the dimensions of personal exposure by including the situational context of exposure perception.Methods/case studyFirstly, different methods for exposure research are presented. Secondly, we introduce a novel mixed-method approach, exploring cyclists and pedestrians perceived and measured exposure on-the-move by combining mobile interviews (Go-/Ride-Alongs) and wearable sensors. We will present the methodological findings using a case study and have a quantitative method (smartphone questionnaire, wearable sensors) as a reference.Results and discussionThe differences of perceived and measured exposure, proven through the reference method, are a result of different situational contexts as shown by the mobile interviews (knowledge, embodied experience, life situation, activities). The methodological findings show, that mobile methods complemented by wearables introduce new dimensions of personal exposure: they shed light on the situational contexts that affect exposure perception during commute.ConclusionWe argue that both, perceived and measured exposure to air pollution and noise, need to be considered simultaneously. Complementing mobile interviews or surveys with wearable sensor data improves the understanding of urban dwellers requirements for healthier mobility. Potentials of these methods should be investigated further, both in research and for supporting urban transport planning decisions adapted to people's needs.     

The nexus between firm-supply-chain relationships and the potential for tourism development: A case study approach

This exploratory study examines the importance of firm-supply chain relationships for tourism development. Based upon prior observations, two firms seeking to boost their tourism offerings and operating in a popular Vietnamese tourist destination were selected. Semi-structured face-to-face and online interviews were conducted and complemented by on-site visits, and firm information. Various salient dimensions emerged from the data analysis. The ‘performance catalyst’ and ‘detectable value adding’ dimensions underscore the supply chain's benefits, while the ‘discerning relations’ dimension highlights deeper relationships through mutual support, building trust, or demonstrating care. Conceptually, the study proposes a framework with associated theoretical and practical implications.     

Accessibility gains and road transport infrastructure in Spain: A productivity approach based on the Malmquist index

Accessibility, the relative access to markets, is a strategic concept in all economic models with a spatial dimension and its prominence has been acknowledged in many economic research fields and policy debates. This paper is based on the assumption that infrastructure drives economic accessibility and, therefore, we can assimilate a production function approach where the road network constitutes a set of inputs yielding access to markets as output. Methodologically, we originally measure the infrastructure inputs accounting for the real used network and calculate a series of new final and intermediate demand gravity-based and locational indicators, which capture a wide range of economic transactions and represent different concepts of economic accessibility outputs. The value added of this paper is translating a non-parametric frontier approach (DEA) to a dynamic scope (Malmquist indices) by connecting the regional accessibility to the productivity of the road infrastructure inputs associated with each region. Results during 1995–2005 show a low relative accessibility of the Spanish NUTS-3 regions, although improvements have been greater over the last five years. Finally, we observe a U-inverted relationship between the accessibility gains during these years and the geographical localization.     

Mobility biographies: A review of achievements and challenges of the mobility biographies approach and a framework for further research

In transport research, important changes in an individual’s life, so-called key events, are of particular interest because changes in one’s environment and surrounding context weaken routines, and a ‘window of opportunity’ opens up for behavioural change. In the framework of the mobility biographies approach, several studies have been undertaken to improve understanding of travel behaviour change in the last decade. This paper critically and systematically reviews emerging results from mobility biographies research, focusing on key events which potentially induce contextual and travel behaviour changes. The first step was to identify 25 of the most important studies for this approach and their related concepts. Next, notions other than key events in the literature are discussed and a theoretical framework for the longitudinal interaction of four dimensions of key events and other factors for travel behaviour change are identified: (i) life events in private and professional careers, (ii) adaptation of long-term mobility decisions, (iii) exogenous interventions, and (iv) other long-term processes which are not key events (e.g. socialisation). Furthermore, the understanding of key events, methodological challenges and further research gaps are critically discussed in this review.