The paradox of competition for airline passengers with reduced mobility (PRM)

Airline competition with customer service as product differentiator has forced down costs, air fares and investor returns. Two passenger markets operate in aviation: (a) able-bodied passengers for whom airlines compete and (b) passengers with reduced mobility (PRMs) – disabled by age, obesity or medical problems – for whom airlines do not compete. Government interference in the market intended to protect a minority of narrowly-defined PRMs has had unintended consequences of enabling increasing numbers of more widely-defined PRMs to access complimentary airline provisions. With growing ageing and overweight populations and long-haul travelling medical tourists such regulation could lead to even lower investors’ returns. The International Air Transport Association (IATA) (2013) examined the air transport value chain for competitiveness using Porter’s (2008) five forces but did not distinguish between able-bodied passengers and PRMs. Findings during an investigation of these two markets concurred with IATA-Porter that the markets for the bargaining powers of PRM buyers and PRM suppliers were highly competitive. However, in contrast to the IATA conclusions, intensity of competition, and threats from new entrants and substitute products for PRM travel were low. The conclusion is that airlines are strategically PRM defensive by omission. Paradoxically, the airline which delivers the best PRM customer service could become the least profitable.

The paradox of competition for airline passengers with reduced mobility (PRM)

Airline competition with customer service as product differentiator has forced down costs, air fares and investor returns. Two passenger markets operate in aviation: (1) able-bodied passengers for whom airlines openly compete and (2) passengers with reduced mobility (PRMs) – disabled by age, obesity or medical problems – for whom airlines do not compete. Government interference in the market intended to protect a minority of narrowly-defined PRMs has had unintended consequences of enabling increasing numbers of more widely-defined PRMs to access complimentary airline provisions. With growing ageing and overweight populations and long-haul travelling medical tourists such regulation could lead to even lower investors’ returns. The International Air Transport Association (IATA) (2013) examined the air transport value chain for competitiveness using Porter’s (2008) five forces but did not distinguish between able-bodied passengers and PRMs. Findings during an investigation of these two markets concurred with IATA-Porter that the markets for the bargaining powers of PRM customers and PRM suppliers were ‘highly competitive’. However, in contrast to the IATA conclusions the threats posed by new entrants, substitute products and intensity of competition for PRM passengers were all ‘low’. The conclusion is that airlines are strategically PRM defensive by omission. Paradoxically, the airline which delivers the best PRM customer service could become the least profitable.

Low emission zones: the likely effects on the freight transport sector

London's air quality has improved over recent decades, but is still the worst in the UK. Road transport emissions play an important part in this pollution. A low emission zone (LEZ) would help to accelerate the introduction of cleaner vehicles, and reduce the number of older, more polluting vehicles operating in London. Survey results indicate that there is some support among goods vehicle operators for a LEZ in London, depending on the precise scheme definition. Operators would generally try to comply with LEZ regulations, with most companies either using technical approaches to ensure that their London vehicle fleet complied with the required emission standard, or redeploying vehicles with the appropriate emission standard from other locations.

Comparing freight transport strategies and measures in London and Paris

The paper compares the approach being taken to freight transport strategy and the specific policy measures being implemented in London and Paris. It highlights the serious consideration that has been given to freight transport by the Mayors of London and Paris in the last five years. These freight policy considerations are taking place against a background of growing levels of road freight activity, energy use and pollutant emissions in both cities. The key freight transport objectives being followed in London and Paris are similar and focus on improving the efficiency and reliability of freight transport while reducing the negative environmental impacts that it causes. The specific freight transport policy measures being followed show some differences in each city. However, attempts to address problems related to loading and unloading are taking place in both, albeit through different specific initiatives. These policy initiatives have important implications for companies concerned with urban logistics operations.

The role of urban consolidation centres in sustainable freight transport

The paper reviews the study and use of urban consolidation centres (UCCs) which are a freight transport initiative intended to reduce goods vehicle traffic, vehicle-related greenhouse gas emissions and local air pollution. An international literature review has identified 114 UCC schemes in 17 countries (12 in the European Union (EU) and 5 outside the EU) that have been the subject of either a feasibility study, trial or a fully operational scheme in the last 40 years. The period from 2006 to 2010 has been the most active 5-year period in terms of UCC study, trial and scheme generation since the first UCC study was carried out in the early 1970s. Five countries account for the majority of all the 114 UCC schemes identified: France, Germany, Italy, the Netherlands and the UK. The vast majority of UCCs serve either all or part of an urban area. Examples of UCCs serving a single property (such as an airport or shopping centre) and construction sites have also been identified. Key organizational, operational, and financial issues that are critical to the success of UCCs are discussed. The traffic and environmental impacts of UCC trials and fully operational schemes are also reviewed.

Reducing social and environmental impacts of urban freight transport: a review of some major cities

This paper reviews the options available to policy makers in their efforts to reduce the negative impacts of urban freight transport. After providing a summary of the categories of negative impacts that can be targeted together with the specific policy initiatives available, it reviews the actions taken by policy makers across in cities within four countries (UK, Japan, the Netherlands and France). In the case of the UK and Japan attention is focused on a single city as an exemplar of some of the developments. In the case of the Netherlands and France the discussion is wider.

Best practice factory for freight transport in Europe: demonstrating how ‘good’ urban freight cases are improving business profit and public sectors benefits

The objective of this study is to better understand why selected urban freight solutions represent innovations that are technically feasible, economically profitable in different contexts, sustainable, transferable, and with tangible beneficial impacts. A total of 15 solutions are evaluated in the fields of Urban Consolidation Centre, clean and electric vehicles, IT solutions, use of urban waterways, and others. Three solutions are analysed more thoroughly, the Cityporto Padova, the Basel Exhibition Centre logistics support system, and the Berlin laboratory area test of the Bentobox. This paper ends with a transversal analysis of the solutions observed, and with methodological conclusions.