Issue 37

Policy Annoyance – How Policies Shape the Experience of Aircraft Sound

By Dr. Christian Bröer

How do people get annoyed about aircraft noise? Often, the sound itself is assumed to be the main cause. In a recently finished PhD research, Christian Bröer shows that there are other sources of annoyance. Noise policy itself clearly influence the way we perceive aircraft sound. The same aircraft sound is experienced differently in The Netherlands and Switzerland. This is not caused by general cultural differences. The differences in perception can be explained by differences in the noise annoyance policy. Noise complaints, for example, are strongly shaped by the political opportunities en the workings of the complaint agencies. The article concludes with some suggestions for future noise policies.

Bankruptcy Protection and Stock Market Behavior in the U.S. Airline Industry

By Dr. Stephen X.H. Gong

The predominantly positive stock price performance of the bankrupt airlines following the filing of bankruptcy (the selection and survivorship bias notwithstanding) indicates substantial improvement in the perceived financial condition of the airlines operating under bankruptcy protection. Interestingly, the rivals of the bankrupt airlines are found to benefit, rather than suffer, from the bankruptcy filings. Industry consolidation can result from the bankrupt airlines being acquired (or anticipated to be acquired) by healthy rivals, a situation that is consistent with the positive stock price performance for both the bankrupt firms and their competitors after the bankruptcy filings.

Great Britain: Regulation and Break-up of the BAA “London Monopoly”

By Nadège Chapier-Granier

The British airport company, BAA, experienced a fundamental evolution last year when it was taken over by the Spanish group Ferrovial (building and public works sector). BAA, which runs seven UK airports, which combined handle nearly 65 percent of all air passengers entering or leaving the UK. Consequently, this Spanish takeover can have a big influence on the British way of doing business. This article looks from a regulatory point of view at the Break-up of the BAA.

Current Issues in Civil Aviation in New Zealand

By David Lyon and Graham Francis

The aim of this paper is to explore some of the current issues in civil aviation in New Zealand. Civil aviation plays a very important economic and social role. New Zealand is geographically isolated and highly dependent on both international and domestic aviation services. Its airports were amongst the first to be commercialized. Air New Zealand remains a dominant player both in the domestic market and international routes into New Zealand. Markets which and have witnessed the failure of other airlines. Low cost carriers have operated in New Zealand markets since 1995.

Online Marketing in the Airline Industry: Expectations about Future Developments

By Frank van Soldt, Menno Bobbink and Shi Ying

The traditional relationship between an airline and its customers through intermediaries has changed significantly over the last decade. The development of the internet as a distribution channel has presented the legacy airlines with the opportunity to take out these intermediaries resulting in multiple benefits. The question is to what extend airlines can actually move all distribution to direct online sales channels, and whether this strategy would be advantageous in the first place. So our main question is: ‘What can we expect about the developments of online marketing in the airline industry?’ To answer this question, we will discuss customer relationships in the airline industry, next the drivers of e-commerce, internet strategies, critical success factors of online marketing, and finally the expectations about the development of online marketing in the airline industry.

Degree of Importance of Airport Passenger Terminal Components and their Attributes

By Anderson Correia, Michelle P. Bandeira, S. C. Wirasinghe

This paper applies the AHP – Analytical Hierarchy Process to determine the importance that users assign to the various components of an airport passenger terminal (APT) and their attributes. A survey of departing passengers was employed to obtain the user perceptions at São Paulo/Guarulhos International Airport, the biggest airport in South America. The results indicate that the most important components of a TPS for departing passengers are the check-in counter and the departure lounge. The paper further provides a degree of importance for components and their characteristics (processing time, courtesy, etc). The results are useful for airport planners and managers in order to assist them during the resource allocation planning, since they could provide more resources (funds, employees, etc) to components that are more important for passengers.

Delivering Excellent Service Quality: a Practical Guide for Internal and External Service Providers by Mario Kossmann

A book review by Prof. Paul Gemmel

Many business organizations understand that excellent service quality is the key to success in today’s competitive world. The book of Kossmann gives a practical guide for creating the right match between expectations and performances at every step in the value chain of the aviation industry. The practical step-by-step guide to manage service quality can help many service managers to define service standards and to measure service performance in their business.

Global Airlines: Competition in a Transnational Industry by Pat Hanlon

A book Review by Moshe Givoni

There are numerous indicators and there is ample evidence that underline the dynamic nature of the air transport industry and specifically the airline industry. Pat Hanlon is very successful in discussing the main elements of this industry, especially the traditional issues of competition, regulations and formation of Hub & Spoke networks, from an up-to-date perspective, orientation and data. This makes the book relevant, interesting, and timely.

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