Old conflicts, new rivals? Airline competition in the European market

Christoph Franz of Lufthansa recently identified Ryanair, easyJet, Air Berlin and Emirates as the company’s main competitors – gone are the days when it could benchmark itself against BA or Air France-KLM! This paper probes behind the headlines to assess the extent to which different airlines are in competition, using evidence from the UK and mainland European markets. The issue of route versus network competition is addressed. Many regulators have put an emphasis on the former whereas the latter, although less obvious, can be more relevant. For example, BA and American will cease to compete between London and Dallas Fort Worth if their alliance obtains anti-trust immunity but 80% of the passengers on this route are connecting at one or both ends and hence arguably belong to different markets (e.g. London-San Francisco, Zurich-Dallas, Edinburgh-New Orleans) which may be highly contested. The remaining 20% of local traffic is actually insufficient to support a single point to point service in its own right. Estimates are made of the seat capacity major airlines are offering to the local market as distinct from feeding other routes. On a sector such as Manchester–Amsterdam, 60% of KLM’s passengers are transferring at Schiphol as against only 1% of bmibaby’s. Thus although KLM operates 5 flights and 630 seats per day against bmibaby’s 2 flights and 298 seats, in the point to point market bmibaby offers more seats than KLM. The growth of the Low Cost Carriers (LCCs) means that competition increasingly needs to be viewed on city pair markets (e.g. London-Rome) rather than airport pair markets (e.g. Heathrow-Fiumicino). As the stronger LCCs drive out weaker rivals and mainline carriers retrench to their major hubs, some markets now have fewer direct options than existed prior to the low cost boom. Timings and frequencies are considered, in particular the extent to which services are a true alternative especially for business travellers. LCCs typically offer lower frequencies and more unsociable timings (e.g. late evening arrivals at remote airports) as they are more focused on providing the cheapest service rather than the most convenient schedule. Interesting findings on ‘monopoly’ services are presented (including alliances) - certain airlines have many more of these than others. Lufthansa has a significant number of sectors to itself whereas at the other extreme British Airways has direct competition on almost every route in its network. Ryanair and flybe have a higher proportion of monopoly routes than easyJet or Air Berlin. In the domestic US market it has become apparent since deregulation that better financial returns can come from dominating a large number of smaller markets rather than being heavily exposed in the major markets - which are hotly fought over. Regional niches that appear too thin for Ryanair to serve (with its all 189 seat 737-800 fleet) are identified. Fare comparisons in contrasting markets provide some insights to marketing and pricing strategies. Data sources used include OAG (schedules and capacity), AEA (traditional European airlines traffic by region), the UK CAA (airport, airline and route traffic plus survey information of passenger types) and ICAO (international route traffic and capacity by carrier). It is concluded that airlines often have different competitors depending on the context but in surprisingly many cases there are actually few or no direct substitutes. The competitive process set in train by deregulation of European air services in the 1990s is leading back to one of natural monopolies and oblique alternatives. It is the names of the main participants that have changed however!

Georg Lukács as a Communications Scholar: Cultural and Digital Labour in the Context of Lukács’ Ontology of Social Being

The task of this work is to apply thoughts from Georg Lukács’ final book, the Ontology of Social Being, for the theoretical analysis of cultural and digital labour. It discusses Lukács’ concepts of work and communication and relates them to the analysis of cultural and digital work. It also analyses his conception of the relation of labour and ideology and points out how we can make use of it for critically understanding social media ideologies. Lukács opposes the dualist separation of the realms of work and ideas. He introduces in this context the notion of teleological positing that allows us to better understand cultural and digital labour as well as associated ideologies, such as the engaging/connecting/sharing-ideology, today. The analysis shows that Lukács’ Ontology is in the age of Facebook, YouTube, and Twitter still a very relevant book, although it has thus far not received the attention that it deserves. This article also introduces the Ontology’s main ideas on work and culture, which is important because large parts of the book have not been translated from the German original into English. Lukács’ notion of teleological positing is crucial for understanding the common features of the economy and culture.

The river solofrana bicycle network: a project of green mobility

The article presents the “LungoSolofrana” project, carried out during the course “Urban and Mobility” in the academic year 2009/2010, held during the bachelor in Environmental Engineering at the University of Naples “Federico II”. The work has also been chosen as a finalist at the “UrbanPromo 2010” contest, the urban and territorial marketing event sponsored by the National Institute of Urban Planning and Urbit which was held in Venice in 2010. The project consists in a green mobility proposal, developed with an approach based on the integration of the environmental redevelopment of a portion of river Solofrana, located in the Salerno Province, and of the renewal of seven local stations of the railway line Mercato San Severino – Nocera Inferiore, including the realization of a cycle-path network for the natural environment fruition. Furthermore the work drew attention to the local and regional administration. The main intent of the project is to integrate sustainable mobility themes with the environment recovery in a territory affected by high environmental troubles. The area includes the municipalities of Nocera Inferiore, Nocera Superiore, Mercato San Severino, Castel San Giorgio and Roccapiemonte, situated in Salerno’s province, with a total population about 114.000 (font Demo ISTAT 2010). The area extension is about 84,30 sqkm and it is crossed by river Solofrana that is the central point of the project idea. The intervention strategy is defined in two kinds of actions: internal and external rail station interventions. The external rail station interventions regard the construction of pedestrian-cycle paths with the scope of increasing the spaces dedicated to cyclists and to pedestrians along the river Solofrana sides and to connect the urban areas with the railway station. In this way, it’s also possible to achieve an urban requalification of the interested area. On the other side, the interventions inside the station , according to Transit Oriented Development principles, aim at redeveloping common spaces with the insertion of new activities and at realizing new automatic cycle parks covered by photovoltaic panels. The project proposal consists of the urban regeneration of small railway stations along the route-Nocera-Codola Mercato San Severino in the province of Salerno, through interventions aimed at improving pedestrian accessibility. The project involves in particular the construction of pedestrian paths protected access to the station and connecting with neighboring towns and installation of innovative bike parking stations in elevation, covering surfaces coated with solar panels and spaces information. The project is aimed to propose a new model of sustainable transport for small and medium shifts as an alternative to private transportation