Shifting the Airline Business Model - Current Struggles of National Carriers to Become Profitable Passenger Experience Companies

National flag carriers are struggling for survival, not only due to classical reasons such as increase in fuel and tax or natural disasters, but largely due to the inability to quickly adapt to its competitive environment – the emergence of budget and Persian Gulf airlines. In this research, we investigate how airlines can transform their business models via technological and strategic capabilities to become profitable and sustainable passenger experience companies. To formulate recommendations, we analyze customer sentiments via social media to understand what people are saying about the airlines.

Importance of a resilient air services network to Australian remote, rural, and regional communities

Rural, regional, and remote settlements in Australia require resilient infrastructure to remain sustainable in a context characterized by frequent large-scale natural disasters, long distances between urban centers, and the pressures of economic change. A critical aspect of this infrastructure is the air services network, a system of airports, aircraft operators, and related industries that enables the high-speed movement of people, goods, and services to remote locations. A process of deregulation during the 1970s and 1980s resulted in many of these airports passing into local government and private ownership, and the rationalization of the industry saw the closure of a number of airlines and airports. This paper examines the impacts of deregulation on the resilience of air services and the contribution that they make to regional and rural communities. In particular, the robustness, redundancy, resourcefulness, and rapidity of the system are examined. The conclusion is that while the air services network has remained resilient in a situation of considerable change, the pressures of commercialization and the tendency to manage aspects of the system in isolation have contributed to a potential decrease in overall resilience.

The Good, the Bad and the Efficient : Productivity, efficiency and technical change in the Airline Industry, 2004:2008

This study models the joint production of desirable and undesirable output production (that is, CO2 emissions) of airlines. The Malmquist-Luenberger productivity index is employed to measure productivity growth when undesirable output production is regulated and unregulated. The results show that pollution abatement activities of airlines lowers productivity growth which suggests the traditional approach of measuring productivity growth, which ignores CO2 emissions, overstate "true" productivity growth.

Frontier Techniques for Measuring and Estimating Airport Efficiency : An Empirical Review with Practical Guidelines for Analysis and Future Research

Airport efficiency is important because it has a direct impact on customer safety and satisfaction and therefore the financial performance and sustainability of airports, airlines, and affiliated service providers. This is especially so in a world characterized by an increasing volume of both domestic and international air travel, price and other forms of competition between rival airports, airport hubs and airlines, and rapid and sometimes unexpected changes in airline routes and carriers. It also reflects expansion in the number of airports handling regional, national, and international traffic and the growth of complementary airport facilities including industrial, commercial, and retail premises. This has fostered a steadily increasing volume of research aimed at modeling and providing best-practice measures and estimates of airport efficiency using mathematical and econometric frontiers. The purpose of this chapter is to review these various methods as they apply to airports throughout the world. Apart from discussing the strengths and weaknesses of the different approaches and their key findings, the paper also examines the steps faced by researchers as they move through the modeling process in defining airport inputs and outputs and the purported efficiency drivers. Accordingly, the chapter provides guidance to those conducting empirical research on airport efficiency and serves as an aid for aviation regulators and airport operators among others interpreting airport efficiency research outcomes.

Can Business Continuity Management Create Reliability in Airports? (Issues from Theory into Practice)

The advances made within the aviation industry over the past several decades have significantly improved the availability, affordability and convenience of air travel and have been greatly beneficial in both social and economic terms. Air transport has developed into an irreplaceable service being relied on by millions of people each day and as such airports have become critical elements of national infrastructure to facilitate the movement of people and goods. As components of critical infrastructure (CI), airports are integral parts of a national economy supporting regional as well as national trade, commercial activity and employment. Therefore, any disruption or crisis which impacts the continuity of operations at airports can have significant negative consequences for the airport as a business, for the local economy and other nodes of transport infrastructure as well as for society. Due to the highly dynamic and volatile environment in which airports operate in, the aviation industry has faced many different challenges over the years ranging from terrorist attacks such as September 11, to health crises such as the SARS epidemic to system breakdowns such as the recent computer system outage at Virgin Blue Airlines in Australia. All these events have highlighted the vulnerability of airport systems to a range of disturbances as well as the gravity and widespread impact of any kind of discontinuity in airport functions. Such incidents thus emphasise the need for increasing resilience and reliability of airports and ensuring business continuity in the event of a crisis...

Examining intuitive navigation in airports

Airports accommodate passengers with a range of prior experience, from frequent flyers, to passengers who fly every couple of years, to those who have never flown before. Passengers with varying levels of prior experience may use different visual elements when navigating the airport. Ensuring all passengers can navigate to the processing activities intuitively is important for passengers, airports and airlines. This paper examines how participants with Low, Medium and High airport familiarity navigate through the departures area at an Australian international airport. Three navigation activities are investigated: (i) navigating to the check-in row, (ii) navigating through the Liquids, Aerosols and Gels (LAGs) preparation area before security screening, and; (iii) navigating to either the boarding gate first or to a discretionary activity first, after exiting customs. In the three activities, differences were observed between the familiarity groups. These differences include the use of different information to locate the check-in desk, different actions when navigating through the LAG preparation area, and evidence that Low familiarity passengers have a desire to locate the boarding gate as soon as possible once through customs. This research provides evidence based design reccomendations for airports to benefit from intuitive passenger navigation.

The good, the bad, and the efficient: Productivity, efficiency, and technical change in the airline industry, 2004–11

This study models the joint production of desirable and undesirable output production (that is, CO2 emissions) of airlines. The Malmquist–Luenberger productivity index is employed to measure productivity growth when undesirable output production is incorporated into the production model. The results show that pollution abatement activities of airlines lowers productivity growth, which suggests that the traditional approach of measuring productivity growth, which ignores CO2 emissions, overstates ‘true’ productivity growth. The reliability of the results is also tested and verified using confidence intervals based on bootstrapping.

From ‘free’ to fee: Acceptability of airline ancillary fees and the effects on customer behavior

Businesses in various consumer service industries have begun to unbundle their service offerings by introducing numerous fees for products and services that were previously provided as “free.” Anecdotal evidence in the media indicates that these fees cause widespread public displeasure, frustration, and outrage. This paper develops a framework of fee acceptability, negative emotions, and dysfunctional customer behavior, which is tested using data from the airline industry. Findings identify the strongest effects on betrayal in the case of baggage fees, followed by charges for comfort. Also, betrayal has a direct effect on complaining, whereas anger mediates the relationship between betrayal and negative word of mouth.

[B4O9H2] Cyclic Borate Units as the Building Unit in a Family of Zinc Borate Structures

A solvothermal reaction of ZnO, boric acid (B(OH)(3)), and aliphatic airlines in a water-pyridine mixture gave four zinc borate phases of different dimensionalities: [Zn(B4O8H2)(C3H10N2)], I (one-dimensional); [Zn(B4O8H2)(C3H10N2)] H2O, II (two-dimensional); [Zn(B5O10H3)(C10H24N4)]center dot H2O, III (two-dimensional): and [Zn-2(B8O15H2)(C3H10N2)(2)], IV (three-dimensional). The structures are formed by the connectivity involving polyborate chains and layers with Zn2+ species. In all the compounds, the amine molecules act its file ligand binding either the same or different zn centers. The formation of two different structures, II and IV, from the same amine by varying the reaction time is noteworthy. Transformation studies on II indicate that the formation of IV. from II, is facile and has been investigated for the first time. Two of file compounds, I and III, exhibit activity for second-order nonlinear optical behavior. The UV exposure of the sample indicates the absorption of all the UV radiation suggesting that the zinc borate compounds could be exploited for UV-blocking applications. The compounds have been characterized by powder X-ray diffraction, infrared spectroscopy, thermogravimetric analysis, UV-vis, photoluminescence, and NMR studies.

The impact of service failure on brand credibility

Recent studies have examined the consequences of brand credibility, with the majority of works embedded in physical goods. Despite the growing attention service branding receives, little is known about how service failure and recovery efforts impact on brand credibility in service organisations. The purpose of this study is to examine how brand credibility is affected by service failure and an organisations recovery efforts. An online self-completion survey of airline consumers (n=875) was employed to test the relationships between the focal constructs. The results show that a service firm’s effective complaint handling positively impacts satisfaction with complaining, overall satisfaction and service brand credibility. The study also finds that the higher the perceived magnitude of failure, the more difficult it is to satisfy a customer. These results demonstrate that it is possible to maintain service brand credibility during a service failure, provided brand managers develop and implement effective complain handling procedures.

A Concise Synthesis of Substituted Thiourea Derivatives in Aqueous Medium

An efficient method for the synthesis of symmetrical and unsymmetrical substituted thiourea derivatives by means of simple condensation between available building blocks such Lis airlines and carbon disulfide in aqueous medium is presented. This protocol works smoothly with aliphatic primary amines to afford various di- and trisubstituted thiourea derivatives. The present method is also useful ill synthesizing various substituted 2-mercapto imidazole heterocycles. This method proceeds through a xanthate (amino dithiol deivative) intermediate, unlike isothiocyanate as in all earlier known method.

Gas turbine diagnostics using a soft computing approach

A fuzzy system is developed using a linearized performance model of the gas turbine engine for performing gas turbine fault isolation from noisy measurements. By using a priori information about measurement uncertainties and through design variable linking, the design of the fuzzy system is posed as an optimization problem with low number of design variables which can be solved using the genetic algorithm in considerably low amount of computer time. The faults modeled are module faults in five modules: fan, low pressure compressor, high pressure compressor, high pressure turbine and low pressure turbine. The measurements used are deviations in exhaust gas temperature, low rotor speed, high rotor speed and fuel flow from a base line 'good engine'. The genetic fuzzy system (GFS) allows rapid development of the rule base if the fault signatures and measurement uncertainties change which happens for different engines and airlines. In addition, the genetic fuzzy system reduces the human effort needed in the trial and error process used to design the fuzzy system and makes the development of such a system easier and faster. A radial basis function neural network (RBFNN) is also used to preprocess the measurements before fault isolation. The RBFNN shows significant noise reduction and when combined with the GFS leads to a diagnostic system that is highly robust to the presence of noise in data. Showing the advantage of using a soft computing approach for gas turbine diagnostics.

Incentive mechanism to control customer buy-down behaviour

Airlines have successfully practiced revenue management over the past four decades and enhanced their revenue. Most of the traditional models that are applied assume that customers buying a high-fare class ticket will not purchase a low-fare class ticket even if it is available. This is not a very realistic assumption and has led to revenue leakage due to customers exhibiting buy-down behaviour. This paper aims at devising a suitable incentive mechanism that would incite the customer to reveal his nature. This helps in reducing revenue leakage. We show that the proposed incentive mechanism is profitable to both the buyer and seller and hence ensures the buyers participation in the mechanism. Journal of the Operational Research Society (2011) 62, 1566-1573. doi:10.1057/jors.2010.57 Published online 11 August 2010

Ergonomia e usabilidade na definição do conforto na classe econômica dos aviões comerciais

Os passageiros têm reclamado da diminuição do conforto na classe econômica dos aviões comerciais. A autoridade aeronáutica brasileira instituiu um selo de qualidade, mas as empresas aéreas brasileiras mantêm os mesmos arranjos internos em seus aviões. Estadissertaçãotrata da avaliação do espaço entre as poltronas e a sua influência no conforto dos passageiros em vôos comerciais. Realizaram-se avaliações da usabilidade utilizando-se um simulador de cabine para treinamento de tripulantes e um avião B737-300. Os resultados indicam uma forte relação entre os níveis de conforto e o passo (medida de repetição das fileiras de poltronas ao longo do avião).

The role of knowledge facilitators and inhibitors: lessons from airline reservations systems.

Strategic frameworks seeking to explain how an organisation may generate superior performance are numerous. Earlier approaches centred on the competitive position of an organisation within its industry, with subsequent attention focused on an organisation's core competences. More recently, research has concentrated on knowledge and organisational learning. By reference to a study of airline-developed computer reservation systems (CRSs), this article explores the strategic importance of information in creating knowledge to generate superior performance. By examining developments in the use, management and control of information derived from CRSs, evidence is presented to explain how CRS-owning airlines have circumvented regulatory controls and increasingly competition to sustain competitive advantage through the development of their information and knowledge systems. This research demonstrates the need for organisations to develop 'knowledge facilitators' that foster the creation of new knowledge. Equally, managers must develop 'knowledge inhibitors' that help to sustain competitive advantage by limiting the abilities of competitors to create knowledge themselves.