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!

Consumers' perceptions of speciality foods and therural mail-order business

Many rural-based farm and food businesses are relatively small but successful companies. They face severe constraints in terms of finance, marketing and distribution. However, marketing food by mail order presents the opportunity for these firms to gain access to national or even international markets. The achievement of commercial success requires that these companies become marketing oriented. Thus, the critical issue for these firms is to identify the needs of existing or potential customers. The objectives of the paper are to establish a profile of the characteristics, behaviour and attitudes of mail order customers.

Reflections of professional practice: using electronic discourse analysis networks (EDANs) to examine embedded business emails

Emails have become a central genre in business communication, reflecting both how people communicate and how they go about their professional practices. This chapter examines embedded business emails as reflections of the professional practices of the regulatory and policy department of a multinational based in London, UK. It argues that the nature of online communication in international organisations, with its high levels of intertextuality and interdiscursivity, requires multidimensional analytical approaches that are capable of capturing its complexity and dynamics. To this end, the chapter introduces electronic discourse analysis networks (EDANs) as one example of such approaches. It begins with a brief review of the literature that has informed the study reported on here before it discusses EDANs as its analytical framework. Using a group of embedded emails and a number of networked data sets, the chapter shows how EDANs can be used to further our understanding of professional online communication.

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.

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.

Success, satisfaction and scrutiny: the business benefits of involving residents

This document summarises work to develop a compelling business case for landlord investment in resident involvement. Its key argument is involvement not only assists in improving satisfaction and service delivery, but also provides value for money.

Business Models for Cloud Computing: Experiences from Developing Modeling & Simulation as a Service Applications in Industry

The potential of cloud computing is gaining significant interest in Modeling & Simulation (M&S). The underlying concept of using computing power as a utility is very attractive to users that can access state-of-the-art hardware and software without capital investment. Moreover, the cloud computing characteristics of rapid elasticity and the ability to scale up or down according to workload make it very attractive to numerous applications including M&S. Research and development work typically focuses on the implementation of cloud-based systems supporting M&S as a Service (MSaaS). Such systems are typically composed of a supply chain of technology services. How is the payment collected from the end-user and distributed to the stakeholders in the supply chain? We discuss the business aspects of developing a cloud platform for various M&S applications. Business models from the perspectives of the stakeholders involved in providing and using MSaaS and cloud computing are investigated and presented.

Urban design, central London and the ‘crisis’ 2007-2013: business as usual?

London is changing, to a breath-taking extent. Beneath this fast paced activity, new patterns are forming and divisions that had been relatively unremarked before are now becoming increasingly visible. The ‘square mile’ of the City of London, which is now identified by some dramatically tall buildings, forms a contrast to the traditional urbanism of the City of Westminster, the majority of which is covered by conservation area legislation. This paper will consider this contrast from the perspective of urban design, examining both the wider development context for these changes and the separate design policies of these two historic organisations of local government. One of the key questions to be investigated is how these changes have impacted on the character of central London as a place. Moving on from the well-rehearsed debates about London’s skyline, the paper considers the significance of urban design in the context of a global urban spatial economy. It suggests that central London faces severe dilemmas about its future if the growth scenario continues.