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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Regional Airports as Two-Sided Markets – the Case for a More Economic Approach in the Application of the EU’s State Aid Rules

by Andreas Knorr and André W. Heinemann europese vlag

With its landmark ruling of December 17th, 2008, the European Union’s Court of First Instance (CFI) unexpectedly declared the European Commission’s famous Charleroi decision of early 2004 nil and void. On February 19th, 2009, the Commission decided not to appeal. The nullification of the Commission’s Charleroi decision by the CFI on purely formal grounds is just the culmination in a long-standing series of legal fights between traditional airlines and their low-cost competitors over (allegedly) unfair competition through (alleged) state aids. However, it has opened a rare window of opportunity for embarking on a much-needed, more economic approach in the EU’s state aids control procedures. In this paper, we will apply the theory of two-sided markets – so-called platforms – to this famous case as we deem it particularly fit to advance the economic analysis of the complex commercial relationships between airports and airlines.

How Sustainable is Emirates’ Business Model?

By Prof. Dr. Andreas Knorr & Alexander Eisenkopf

This contribution takes a closer look behind one of the fastest growing airlines in the world: Emirates. Despite the success of Emirates so far, there is also a fair amount of skepticism with respect to the commercial viability and long-term sustainability of Emirates’ business model. In this article, the authors provide a SWOT analysis of Emirates’ business model that needs to be discussed in the broader context of Dubai’s overall growth and development strategy into which it is firmly embedded.

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