Networks in Aviation – Strategies and Structures

networks-in-aviationWith this book one can discover the main aspects of an airline’s network structure. It iswritten clearly, which allows also people without profound knowledge about network managementto understand the topics adequately. The book is, however, also interesting formanagers in the industry: the preface written by Dr.Christoph Franz (CEO of Lufthansa) welcomes readers. Since Lufthansa Group serves more than 270 destinations under variousbrand names such as Lufthansa, Swiss, Austrian, bmi, Brussels Airlines, and Germanwings, Dr.Franz’s foreword is symbolically important.

Download PDF

Variances in Airline Ticket Prices

variances airline ticket pricesLiberalization and deregulation has led to profound changes the airline industry. Diminished governmental influence stimulated airlines to increase their revenues gained by the sales of tickets. Nowadays, airlines issue tickets that are characterized by a great diversity of restrictions to achieve demand segmentation. Most of the current airlines apply complex revenue management systems to determine their ticket prices. These widely applied systems enable airlines to maximize their seat inventory as well as optimizing the charged price for each customer segment. Basically, airlines are charging a wide range of fares to a great diversity of customers for – what is in essence – an identical product.

This paper aims to illustrate the effect of market concentration and competitive forces on the airline ticket price variance. In addition it provides insight in the main drivers causing ticket prices to disperse. Potential groups of interest for this paper include aviation professionals,students and airline passengers, will gain a thorough understanding of the fundamentals in ticket price variances.

Download PDF

The European Commission Appraisal of Airline Mergers

airline mergersAirliners intending to implement mergers witheconomic effects in the EU aviation transportmarkets have to seek the previous authorizationof the European Commission under the EuropeanMerger Control Regulation (EMCR). Since 1989the Commission blocked two airliners mergers (Ryanair/Aer Lingus, Case M.4439 and Olympic/Aegean Airlines, Case M.5830) and conditionally cleared many more by agreeing with the parties on remedies to fix the expected competition problems. The commonest remedy is the divestiture of landing and taking off airport slots, although the effectiveness of these remedies was questioned because in some cases no competitors used the freed slots. The purpose of this article is to discuss the Commission policy on slot remedies. In particular, it focuses on the questions whether slot remedies are effective tools to resolve the competition problems arising out of airline mergers and which elements should be included in slot remedy packages in order to enhance their effectiveness. These are questions of practical relevance given the cautious approach of the Commission in clearing mergers on the basis of efficiency defence. Thus, offering a set of suitable remedies to restore competition may be the only way for the merging parties to obtain the go-ahead from the Commission for a problematic merger.
Download PDF

 

An Empirical Study of Catering Costs in an Emerging Airline Market

inflight-300x213By João Luiz de Castro Fortes and Alessandro V. M. Oliveira

This study investigates how Brazilian airlines’ quality of catering has changed across a ten-year period through an analysis of catering costs. This article shows a strong tendency of cost decreasing along with cost convergence of the values spent by airlines, especially the ones which were known by their differentiated in-flight service.

Download PDF

Stormy Skies – Airlines in Crises by Paul Clark

Without any doubt we can state that the latest financial crises has had a tremendous impact on the aviation industry, and certainly not in a good way. The main question is what airlines have learned from this and previous set-backs, and how they use this information to make their businesses more sustainable in times of economic meltdown.

Download PDF

Book Review: Foundations of Airline Finance by Bijan Vasigh

From frequent flyer programs to fuel hedging, this new book on airline finance provides you with a foundation in finance and in the application of these methodologies to various topics in airline industry practice.

Download PDF

 

Airport Punctuality, Congestion and Delay: The Scope for Benchmarking

Airport performance benchmarking increasingly requires level-of-service (LoS) indicators for afair comparison among members of the same peer group. For a true performance analysis such inclusion of quality measures is necessary to differentiate airports with similar pure output quantities, i.e. number of aircraft movements. Since variation of scheduled times versus actual times could substantially cause accumulating operating costs for carriers and could furthermore pose the risk and inconvenience of missed connections for the passengers, this article examines determinants of flight delays at airports, and thereby developing performance indicators such as slot capacity utilization, queueing time and punctuality. The essence of underlying phenomena in queueing theory such as Little’s Law, arrival and departure distributions, and cumulative throughput and demand diagrams are briefly explained. This work’s aim is the exploration of ways of measuring and observing performance quality from actual flight schedules with a focus on usability for subsequent airport benchmarking and traffic modeling.


%d bloggers like this: