Systematizing Routing Options in a Global Air Cargo Network Model

airline_networkBy Florian M. Heinitz* and Peter A. Meincke

This article reports on advances in building an air cargo network routing software. This software module is an integral component of a multi-level air cargo supply-demand interaction model. The model is aimed at analyzing and forecasting airborne commodity flows on a global scale. Having an exhaustive overlook of the routing options is essential for assigning airfreight in networks as close to reality as possible. Our modeling deals with cargo “alliances” and sub-networks defined by interlining agreements. In the absence of publicly available data, we develop a route typology, as well as a methodology for subsequent choice set formation. Itinerary level observations and preference data act as yardsticks for this exercise. We demonstrate how to address the relevant spatial-temporal routing options for cargo within a maximum range of adjustment strategies, while keeping computational complexity manageable.

* Corresponding Author

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Let’s Be Social at 30,000 Feet!

social_mediaco-author: Ana Maria Munar

This exploratory article maps airline use of social- media platforms. Four categories are suggested to describe firms’ overall behavior on social- media platforms. The authors categorize the content that 12 airlines post on two well-known social- media platforms using the Promotional Marketing Mix framework. Airlines are categorized as full-service or low-cost carriers and by their number of posts. The results show that there is a wide variety of use among all types of carriers, and that airlines should formulate clear, inclusive marketing strategies for their social- media presence to improve cohesion.

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High Speed Train as a Feeder for Air Transport

ICE_TrainIlse Terpstra and Mark G. Lijesen

Air transport and high speed trains (HST) are seen as competitors in short to medium range markets. Recently, the view of HST and air transport being complementary modes has emerged. This paper extends the literature by looking at the impact of high speed rail on airport competition, focusing on the new HST-link between Amsterdam and Brussels. We conduct a detailed analysis regarding the airport choice of passengers living in the catchment areas of these airports and compared the results with airport choice in Spain, where a HST is already running.

Air transport and high speed trains (HST) are seen as competitors in short to medium range markets.Recently, the view of HST and air transport being complementary modes has emerged. This paperextends the literature by looking at the impact of high speed rail on airport competition, focusing onthe new HST-link between Amsterdam and Brussels. We conduct a detailed analysis regarding the airport choice of passengers living in the catchment areas of these airports and compared the resultswith airport choice in Spain, where a HST is already running.

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Airline Operations and Delay Management

Airline_Operations_Delay_ManagementInsights from Airline Economics, Networks and Strategic Schedule Planning by Cheng-Lung Wu
Book Review by Gaurav Agarwal

Think about the February 2007 snowstorm that hit New York and about its catastrophic effects on JetBlue’s network that left 130,000 passengers stranded. Similarly, the severe January 1999 snowstorm that hit Detroit leaving more than 8,000 Northwest Airlines passengers stranded in planes on the runway. These incidents brought about changes in airline regulation in the US and many lawsuits for the airlines. While these were weatherrelated incidents, it did lead to airline and network planners pondering whether there was something inherently wrong in the way the networks were designed, and whether the design itself could have contributed to a situation that led to the severity of disruptions.

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Factors Influencing Time and Cost Overruns in Aircraft Projects

A400Mby Jörg Bellmann, Andreas Knorr and Rahel Schomaker

All recent major civil as well as military aircraft projects – A380, B787, A400M – have suffered from massive cost overruns and substantial entry-in-service delays of at least two years. In our paper, we intend to overview the press coverage of the aircraft programs of Boeing’s new long-haul wide-body model, the 787 Dreamliner, and the military transport aircraft A400M, designed by European manufacturer Airbus. Using causal mapping, based on a content analysis, we summarize the project events reported in the press that triggered off the chains of causality, which inevitably led to cost overruns and time delays.
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High-Speed rail versus Air Competition in Spain

AVE Train SpainBy Juan Luis Jiménez and Ofelia Betancor

High-speed railway lines (HSR) in Spain have gradually increased during the last twenty years. At the beginning of 2010, four HSR lines were operating on routes where air transport used to be the dominant mode of transportation, connecting Madrid with other mainland cities in short-haul routes. In this article, we examine the air carriers’ reaction to these HSR entries into the market by using data at the route level from two perspectives: firstly, we test whether the high-speed rail links have changed the frequency that airlines offer; and secondly, we analyze how the market share of airlines in the total market (air plus rail) have changed. Results shows that intermodal competition in Spain ends up with trains as relative winners, leading to a reduction in the level of air frequencies to consumers and stimulating demand.
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Competitive Distortions in the Air Transport Markets as a Result of the Upcoming Worldwide Emissions Trading Systems?

by Janina Scheelhaase

Within the next 5 to 10 years, different national and supranational emissions trading schemes will be introduced globally to reduce aviation’s CO2 emissions: The European Union’s emissions trading scheme will directly limit the CO2 emissions of virtually all flights starting from or landing at any European airport from 2012 onwards. The upcoming US cap-and-trade-system for greenhouse gases as well as the New Zealand system will very likely choose the fuel sup-pliers as accountable entities of their systems (upstream approach): Aviation will be covered indirectly by the price impact on the fuel purchased. Detailed plans for mandatory national emissions trading systems have also been worked out by Australia, Canada, Norway, Iceland, Liechtenstein and Switzerland. This foreseeable heterogeneous global framework will have impacts on competition within the aviation sector. This paper analyses the economic and competitive impacts of the introduction of differently designed emissions trading systems on the international aviation sector.

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