International Journal of Aviation Management (6 papers in press)
Network Carriers Strategic Decisions: Does Low Cost Carrier Entry Matter?
by Tamilla Curtis, Dawna Rhoades
Abstract: Good decisions require that each decision-maker accurately predict the strategic moves of the other parties. Dealing with prospective Low Cost Carrier entrants is critical for global network airlines. This research focused on two main issues. First, it investigates competitive reaction by established US airlines when they face an LCC entrant in the less congested, small-sized US regional airports. Second, it examines which of the market indicators are most likely to influence airline fares out of small regional airports with the LCC entry. While the first stage of research demonstrated mix results and did not discovered any patterns in airline behavior with LCC entry due to a large number of other variables influencing airline revenue management, the second stage confirmed that the stage length, number of passengers, number of competitors, number of stops and the oil price do have an impact on airfares.
Keywords: low cost airlines; strategies; regional airports; competition; market.
Consumers from India and The United States Have Differing Views of Flight Attendants
by Rian Mehta, Natasha Rao, Ethan Labonte, Stephen Rice, Deborah Carstens, Sierra Gaenicke
Abstract: Airlines are continuously working to enhance inflight services to create a superior customer user experience. Flight attendants play an important role in the customers travel experiences. Flight attendants have the most interaction with the passengers, which directly impacts the passengers flight experience. The purpose of the present study is to assess the cultural differences of trust, if any, between Indians and Americans with respect to the age and gender of flight attendants. Analyzing this aspect of trust is performed through manipulating the age and gender of the flight attendant. A cross cultural analysis comparing data from both Indian and American participants was conducted specifically asking participants to rate their levels of trust in flight attendants described as male or female, and either 25 or 55 years of age. The results and the practical application of the study are discussed that resulted in useful findings for the aviation industry.
Keywords: trust; flight attendants; age; gender.
Special Issue on: ATRS World Conference 2015 Selected Topics on Air Transport Innovation and Efficiencies
Stated In-Flight Service Preferences for Short to Medium-Haul Air Trips
by Florian Heinitz, Marcus Hirschberger
Abstract: This contribution adds recent empirical findings on airline passengers preference structures, putting emphasis on the European short and medium-range leisure flight market. The conducted choice experiments specifically tackled the trade-off between catering service levels and possible variations of air fares. Choice-based conjoint measurement and discrete choice analysis were deployed as evaluation techniques. The underlying data was generated by two waves of stated preference surveys of slightly varying questionnaire design. Based on a segmentation of the continental leisure air market into three classes of block hours, ternary and binary choice situations - with/without consideration of the status quo offering - were created. The appropriate alternative characteristics for each segment were drawn from four levels of in-flight catering vs. four levels of fare differentials. The results obtained for each of the three flight time segments include part-worths of catering and willingness-to-pay, which were then compared with existing studies. Attributes of passengers susceptible for up-selling or an un-bundling of catering could be ascertained. The models were operationalized for a decision-support tool for maximizing ancillary contribution margin by pre-ordered meals and in-flight sales of food and beverages.
Keywords: Stated preference; airline catering; choice-based conjoint measurement; discrete choice analysis.
Necessity for Financial Transparency of Airports Toward Efficient Airport Management
Examination of Aviation Fuel Tax Allocation
by Munekatsu Usami, NOBUO AKAI
Abstract: Airport management in Japan must pursue efficiency and transparency. This research focuses on the allocation scheme of aviation fuel tax to local governments as an original revenue source for airports. In view of governance, after reviewing the current practice and issues, we discuss a favorable model for promoting transparency, followed by tracing up the current officially-available figures to find out the allocation amounts for each airport of aviation fuel tax, we conduct trial calculations under several assumptions to reveal how changes to the allocation scheme affect the revenue source proportion for each airport. Based on the results, we conduct another trial calculation of the financial balance for state-owned airports and introduce an airport facility charge to clarify the tax scheme to show options for better airport management in Japan.
Keywords: Aviation fuel tax; transparency; financial balance; individual operation; facility charge.
Future Passenger Air Traffic Modelling: A theoretical Concept to integrate Quality of Travel, Cost of Travel and Capacity Constraints
by Robin Ghosh, Katrin Kolker, Ivan Terekhov, Volker Gollnick
Abstract: Systems Analysis requires the modelling of possible future evolutions of the global air transportation system (ATS) as alternative quantitative scenarios. To do this, a generic approach is needed that encompasses the different aspects of the ATS, including global passenger flows, aircraft movements as well as current fleet aircraft types and potential new aircraft designs. The starting point are varying external socio-economic scenarios from which at first the future realized air passenger demand at city pair level is estimated as a global network between city pairs. From the demand networks successively passenger routes networks and eventually aircraft movements networks with information on aircraft generations are derived for future time steps. This paper shows in sample analyses the results of the global modelling approach at city pair level applied to the socio-economic scenario of Jorgen Randers 2052 . Global frequency distributions are shown as a function of great circle distance for sample aircraft sizes at future time steps. We conclude, an adequate capability that considers the feedbacks of changes of (1) quality of travel, (2) cost of travel, and (3) constraints at the supply side on realized demand requires consistent and generic modelling of an aircraft movements networks with information on aircraft generations. The continuous modelling at city pair level from the very beginning and the thinking in successive aircraft generations are especially valuable for global climate impact assessments of spatially dependent non-CO2 emissions. This is much needed for holistic strategy developments in policy making to tackle the essence of the climate issue of civil aviation in the long run.
Keywords: Aviation Network Modelling; Systems Analysis; Scenario Analysis; Market Outlook; Future Development of Air Transport; Policy Analysis.
Timetable management to enhance airline schedule reliability and airfield operation performance at Taiwan Taoyuan International Airport
by Suiling Li
Abstract: To enable the efficient operation of an airfield and the efficiency of timetable management it is necessary to develop a model that can measure and check the current timetable whether they meet the airfield operation performance. This study develops an optimization mathematic planning model to formulate objective function of the taxi fuel cost and arrangement of arrival/departure time points for flights timetable within one peak hour. Results show the average taxiing cost and taxiing time for per flight will be 351.25 US dollars and 8.7-19.15 minutes. If pilots control the speed at15-35 kilometer/hour, the total minimum taxiing time of 20 flights can be decreased to 161-186 minutes. If the pilots use runway 5L to take off/land, it can save 1299 US dollars in one hour. The interval length of time points at timetable is suggested to be five minutes for easy management and control.
Keywords: timetable management; airline schedule reliability; mathematics programming.