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!

WS-PGRADE/gUSE in European Projects

Besides core project partners, the SCI-BUS project also supported several external user communities in developing and setting up customized science gateways. The focus was on large communities typically represented by other European research projects. However, smaller local efforts with the potential of generalizing the solution to wider communities were also supported. This chapter gives an overview of support activities related to user communities external to the SCI-BUS project. A generic overview of such activities is provided followed by the detailed description of three gateways developed in collaboration with European projects: the agINFRA Science Gateway for Workflows for agricultural research, the VERCE Science Gateway for seismology, and the DRIHM Science Gateway for weather research and forecasting.

Accessibility instruments for planning practice: A review of European experiences

Although a large body of literature has been produced on the theoretical definitions and measurements of accessibility, the extent to which such indicators are used in planning practice is less clear. This research explores the gap between theory and application by seeking to understand what the new wave of accessibility instruments (AIs) prepared for spatial and transport planning practice purports to offer the users of AIs. Starting from the question of how urban and transport planners are designing AIs, the article analyzes and describes the AIs developed over the last decade (mainly in Europe), offering a structured overview and a clear categorization of how accessibility measures can be applied. The paper identifies AI characteristics, and considers their usability, based on AI developer perceptions.

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.

ADR in aviation: European and national perspectives

The air transport sector generates the largest share of cross-border consumer complaints, as a proportion of complaints received by the ECC-Net. Since the foundation of the ECC-Net in 2005, air passenger claims have made up around one fifth of the total caseload most years. A pan-European framework of bodies that handle consumer to business disputes will be implemented through the consumer ADR directive.4 Taking these developments into consideration, the aviation industry is an interesting sector to study. This paper looks at dispute resolution for air passengers in the United Kingdom (UK) and Germany, as well as at European level.

Women in the driving seat Eastern European immigrant women s citizenship participation and educational inclusion in Portugal

This paper is a case study of Eastern European immigrant women’s social inclusion in Portugal through civic participation. An analysis of interviews conducted with women leaders and members of two ethnic associations provides a unique insight into their migrant pathways as highly educated women and the ways in which these women are constructing their citizenship in new contexts in Northern Portugal. These women’s accounts of their immigrant experience embrace both the public realm, in using their own education and their children’s as a means of integration but also spill over into ‘non-public’ familial relationships at home in contradictory ways. These include the sometimes traditional, gender-defined division of labour within the associations and at home and the new ways that they negotiate their relative autonomies to escape forms of violence and subordination that they face as women and immigrants.