Issue 49

Factors Influencing Time and Cost Overruns in Aircraft Projects
by 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. This paper intends to overview the press coverage of the aircraft programs of Boeing’s 787 Dreamliner, and Airbus’ military transport aircraft A400M. 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.

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: amongst others, the European Union’s emissions trading scheme and the upcoming US cap-and-trade-system for greenhouse gases. This paper analyses the economic and competitive impacts of the introduction of differently designed emissions trading systems on the international aviation sector.

 

High Speed Train as a Feeder for Air Transport
ByMark G. Lijesen en Ilse Terpstra

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 examines the impact of high speed rail on airport competition. 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.

High-Speed rail versus Air Competition in Spain
By 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.

Systematizing Routing Options in a Global Air Cargo Network Model
By 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.

Let’s Be Social at 30,000 Feet!
By Kristian A. Hvass, 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.

 

 

Book Review: International business travel in the global economy by
Jonathan Beaverstock et. al
By Hans Heerkens

Business travel receives relatively little attention both in scientific literature and in the media, and when it does get attention, it is mostly negative. Often, it is seen as a costly toy for the rich and famous. This book gives travel for business purposes the attention it deserves, and it paints a balanced, multifaceted picture of it.

 

 

 

Book Review: Airline Operations and Delay Management Insights from Airline Economics, Networks and Strategic Schedule Planning by Cheng-Lung Wu
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.