Competing with CRS-generated information in the airline industry.

For over 20 years, computer reservation systems (CRSs) have been cited as a source of competitive advantage for the airlines that developed them. This paper reviews the developments that have given rise to such advantage, emphasising the use of CRS-generated information as a competitive tool within the airline industry. New evidence is presented suggesting that the control, dissemination and manipulation of CRS data by owning airlines continued to allow them to capitalise on their investment at the expense of competitors during the 1990s.

An econometric analysis of international air travel demand in Saudi Arabia

Abed, S. Y., Ba-Fail, A. O., & Jasimuddin, S. (2001). An econometric analysis of international air travel demand in Saudi Arabia. Journal of Air Transport Management, 7(3), 143-148 RAE2008

An investigation of passenger exit selection decisions in aircraft evacuation situations

This paper presents results from a questionnaire study of participant exit awareness and suggested exit selection in the event of emergency evacuations involving narrow body aircraft. The study involved 459 participants with varying flight experience. The results of this study supports the hypothesis that poor understanding by passengers of aircraft exit location and configuration may be a contributory factor in the resulting poor exit selection decisions made by passengers in emergency situations. These results have important safety implications for airlines and also provide important insight to evacuation model developers regarding the decision making process in agent exit selection.

Food-poisoning and commercial air travel

With the introduction of budget airlines and greater competitiveness amongst all airlines, air travel has now become an extremely popular form of travel, presenting its own unique set of risks from food poisoning. Foodborne illness associated with air travel is quite uncommon in the modern era. However, when it occurs, it may have serious implications for passengers and when crew are affected, has the potential to threaten safety. Quality, safe, in-flight catering relies on high standards of food preparation and storage; this applies at the airport kitchens (or at subcontractors' facilities), on the aircraft and in the transportation vehicles which carry the food from the ground source to the aircraft. This is especially challenging in certain countries. Several foodborne outbreaks have been recorded by the airline industry as a result of a number of different failures of these systems. These have provided an opportunity to learn from past mistakes and current practice has, therefore, reached such a standard so as to minimise risk of failures of this kind. This review examines: (i) the origin of food safety in modern commercial aviation; (ii) outbreaks which have occurred previously relating to aviation travel; (iii) the microbiological quality of food and water on board commercial aircraft; and (iv) how Hazard Analysis Critical Control Points may be employed to maintain food safety in aviation travel.

Aeroportos e turismo residencial : do conhecimento às estratégias

O problema da nossa pesquisa resultou de uma ampla revisão de literatura que visava cruzar quatro áreas distintas, a gestão do conhecimento, as parcerias estratégicas, os aeroportos e o turismo residencial. Estas áreas permitiram-nos avaliar o quão diversificados podem ser os estudos turísticos e estabelecer relações de proximidade entre as diferentes temáticas. O objectivo do problema definido visava estabelecer uma relação entre a gestão integrada do conhecimento e o trabalho conjunto dos aeroportos com outras entidades do sector público e privado e a forma como esta podia contribuir de forma favorável para a delineação adequada de estratégias de negociação de rotas com as companhias aéreas, potenciando o desenvolvimento de novos segmentos de mercado turístico, como é o caso do turismo residencial, e originar alterações na procura turística de uma região. A metodologia adoptada para dar resposta à nossa investigação insere-se numa matriz desenvolvida no processo de elaboração do estudo. A matriz EGIC (espiral da gestão integrada do conhecimento) abrange diferentes métodos e técnicas de investigação, que passam pela aplicação de questionários (procura e oferta), entrevistas com especialistas e painel de debate, permitindo reunir dados para caracterizar o segmento de mercado do turismo residencial no Algarve. Esta matriz tem como objectivo reunir informação que permita sustentar o conhecimento de um segmento de mercado turístico e criar uma plataforma de apoio ao seu desenvolvimento futuro na região em estudo. Os resultados obtidos nas várias técnicas utilizadas permitiram-nos caracterizar este segmento de mercado e identificar quais as principais lacunas de informação existentes e sobre as quais é necessário incidir no futuro. Numa fase final do estudo apresentamos uma hipótese de estrutura de uma plataforma de apoio ao desenvolvimento integrado do turismo residencial, assim como as principais actividades que esta deveria integrar de modo a fazer face às necessidades da região algarvia.

Can the European low-cost airline boom continue? Implications for regional airports

At a time when the traditional major airlines have struggled to remain viable, the low-cost carriers have become the major success story of the European airline industry. This paper looks behind the headlines to show that although low-cost airlines have achieved much, they too have potential weaknesses and face a number of challenges in the years ahead. The secondary and regional airports that have benefited from low-cost carrier expansion are shown to be vulnerable to future changes in airline economics, government policy and patterns of air service. An analysis of routes from London demonstrates that the low-cost airlines have been more successful in some markets than others. To attractive and historically under-served leisure destinations in Southern Europe they have stimulated dramatic growth and achieved a dominant position. To major hub cities however they typically remain marginal players and to secondary points in Northern Europe their traffic has been largely diverted from existing operators. There is also evidence that the UK market is becoming saturated and new low-cost services are poaching traffic from other low-cost routes. Passenger compensation legislation and possible environmental taxes will hit the low-cost airline industry disproportionately hard. The high elasticities of demand to price in certain markets that these airlines have exploited will operate in reverse. One of the major elements of the low-cost business model involves the use of smaller uncongested airports. These offer faster turn-arounds and lower airport charges. In many cases, local and regional government has been willing to subsidise expansion of air services to assist with economic development or tourism objectives. However, recent court cases against Ryanair now threaten these financial arrangements. The paper also examines the catchment areas for airports with low-cost service. It is shown that as well as stimulating local demand, much traffic is captured from larger markets nearby through the differential in fare levels. This has implications for surface transport, as access to these regional airports often involves long journeys by private car. Consideration is then given to the feasibility of low-cost airlines expanding into the long-haul market or to regional operations with small aircraft. Many of the cost advantages are more muted on intercontinental services.

Dynamic cost indexing

This paper describes the development of a generic tool for dynamic cost indexing (DCI), which encompasses the ability to manage flight delay costs on a dynamic basis, trading accelerated fuel burn against ‘cost of time’. Many airlines have significant barriers to identifying which costs should be included in ‘cost of time’ calculations and how to quantify them. The need is highlighted to integrate historical passenger delay and policy data with real-time passenger connections data. The absence of industry standards for defining and interfacing necessary tools is recognised. Delay recovery decision windows and ATC cooperation are key constraints. DCI tools could also be used in the pre-departure phase, and may offer environmental decision support functionality: which could be used as a differentiating technology required for access to designated, future ‘green’ airspace. Short-term opportunities for saving fuel and/or reducing emissions are also identified.

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!

Modelling the airline costs of delay propagation

Reactionary delays constitute nearly half of all delay minutes in Europe. A capped, multi-component model is presented for estimating reactionary delay costs, as a non-linear function of primary delay duration. Maximum Take-Off Weights, historically established as a charging mechanism, may be used to model delay costs. Current industry reporting on delay is flight-centric. Passenger-centric metrics are needed to better understand delay propagation. In ATM, it is important to take account of contrasting flight- and passenger-centric effects, caused by cancellations, for example. Costs to airlines and passenger disutility will both continue to be driven by delay relative to the original schedule.

A framework for evaluating the European airline costs of disabled persons and persons with reduced mobility

In recent years, airlines have been servicing a greater variety, and increasing numbers, of disabled persons and persons with reduced mobility (PRMs), particularly associated with ageing, obesity and medical needs. With the quantity of PRMs likely to increase in the future, there will be a growing impact on the airlines' associated actual and opportunity costs, about which there is minimal literature and data. Therefore the aim of this paper is to identify standard functional key factors (FKFs) with which airlines could audit their PRMs costs, and which could be used by other interested bodies, such as governments, when considering relevant aviation policy. These FKFs are related to nine areas, namely PRMs’ transfers; mobility aids; aircraft delays/diversions costs; staff training costs; staff health, safety and welfare; aircraft fixtures and equipment costs; airport costs; transaction costs; and opportunity costs. Further research is needed to obtain the data for these FKFs.

Comércio eletrónico em Angola: impacto e desafio face à internacionalização de uma empresa de transporte aéreo - caso TAAG

Dissertação apresentada ao Instituto Superior de Contabilidade e Administração do Porto para a obtenção do Grau de Mestre em Empreendedorismo e Internacionalização Orientação pela Professora Doutora: Ana Azevedo Manuela Patrício

Utilização de Cabos de alta Temperatura em linhas Aéreas em Média Tensão

A presente dissertação teve como objetivo fazer uma análise da viabilidade técnica da utilização dos condutores de alta temperatura nas linhas aéreas de MT, identificar vantagens, analisar inconvenientes, e estabelecer um comparativo a custos médios com as soluções convencionais. Foi efetuado o estudo de um caso real da EDP Distribuição que consistia na necessidade do aumento da capacidade de transporte de energia da linha aérea a 15 kV Espinho-Sanguedo. Neste foi ponderada a solução onde se poderia efetuar passagem de linha simples para linha dupla em alumínio-aço (AA) 160 mm2 ou a solução alternativa e inovadora de substituição dos condutores existentes por condutores de alta temperatura ACCC 182 mm2. Para isso foram efetuados cálculos e também criada uma ferramenta de apoio à decisão, para validação dos mesmos, com o intuito de mais tarde poder ser aplicada nas linhas aéreas em Média Tensão em todo o país e, sempre que necessário, se possa fazer um estudo de ponderação técnica de forma sistemática e estruturada. Neste trabalho estão identificadas as vantagens, foram relatados os inconvenientes, e estabeleceu-se um comparativo a custos médios da utilização de condutores de alta temperatura com as soluções convencionais. Antes de poder ser realizado um estudo do caso concreto da Linha aérea Espinho-Sanguedo foi necessário um aprofundamento do estado da arte no que diz respeito à comparação entre o cabo de alta temperatura ACCC e o cabo convencional ACSR, sendo este o mais utilizado nas linhas aéreas em MT. Os cabos de alta temperatura trouxeram inovações neste tema de transporte de energia, e como tal surgiu a necessidade de um estudo mais aprofundado da sua constituição, destacando o seu núcleo formado pelo compósito de fibra de carbono e fibra de vidro. Foi também analisado vantagens e desvantagens do cabo de alta temperatura e até mesmo situações onde a sua aplicação poderá ser vantajosa, de modo a tirar proveito das suas caraterísticas em que se destacam altas temperaturas de funcionamento e flechas reduzidas. Para elaborar um projeto de uma linha aérea em média tensão é necessário considerar a legislação em vigor, os aspetos ambientais e económicos, respeitando e garantindo as premissas do cálculo elétrico e mecânico. Economicamente este tipo de cabo (ACCC) é mais dispendioso do que os convencionais, no entanto o estudo realizado permitiu perceber que a sua implementação técnica é vantajosa em linhas aéreas de elevada capacidade de transporte de energia, sobretudo nos casos onde serão necessárias instalar linhas duplas ou linhas simples de seções elevadas. Devido às suas caraterísticas mecânicas, estes cabos permitem melhorar as linhas na sua dimensão, podendo diminuir o número de apoios a instalar, podendo diminuir a robustez dos apoios e permitir maior facilidade na montagem. Estas vantagens traduzem-se em menores impactos ambientais e permitem sobretudo reduzir os constrangimentos com os proprietários dos terrenos onde os apoios são implantados.

Internationalization strategy of Skypro Shoes to Japan

Skypro is a footwear brand targeted at the aviation professionals’ niche market, explored by the Portuguese microenterprise Abotoa Lda..The saturation of the Portuguese market led Skypro to expand to different worldwide countries and to be a footwear supplier of Airlines from the USA, Qatar or Australia, among others. Abotoa aims for its 2014’s exports to represent around 80% of total sales and this Internationalization Plan for Japan represents the possibility of further exploring the Asian market. Japan appears as the 2nd worldwide footwear importer and the 5th footwear consumer, with a high purchasing power – GDP per capita (PPP). This country possesses two enormous Airlines (ANA and JAL) that employ more than 15000 on-board personnel, the world’s 4th busiest Airport in 2013 (Tokyo’s Haneda International Airport) and a geographic structure with more than 6500 islands, implying high frequency of aerial transportation in the medium-run. These aspects make Japan an adequate country to invest in. At the course of this Work Project, trustworthy recommendations are provided for the current state of Abotoa and for the introduction and implementation of this Internationalization Plan. These findings strongly suggest that Skypro should indeed penetrate Japan’s market.

The effect of social and environmental sustainability on firm resilience

Double degree

The future of airline business models:

This research is titled “The Future of Airline Business Models: Which Will Win?” and it is part of the requirements for the award of a Masters in Management from NOVA BSE and another from Luiss Guido Carlo University. The purpose is to elaborate a complete market analysis of the European Air Transportation Industry in order to predict which Airlines, strategies and business models may be successful in the next years. First, an extensive literature review of the business model concept has been done. Then, a detailed overview of the main European Airlines and the strategies that they have been implementing so far has been developed. Finally, the research is illustrated with three case studies