Air Passenger Research Articles

Tax Incidence in Heterogeneous Markets: The Pass-Through of Air Passenger Taxes on Airfares

Tax Incidence in Heterogeneous Markets: The Pass-Through of Air Passenger Taxes on Airfares

Где принимают решения? География корпоративных штаб-квартир США

The locations of Fortune 500 corporate headquarters in U.S. cities spectacularly changed between 1970 and 2020. Previous researchers pointed on the diversity of business and financial services, agglomeration effects of the headquarters themselves and the role of airports as the leading factors in the localization of headquarters in the largest cities. However, factors that allow smaller agglomerations to also localize headquarters were also emphasized: proximity to the companies’ production facilities, the growth of passenger air connectivity, the opportunity to obtain more favorable local tax and regulatory conditions, more flexible cost of living for employees. Based on the Fortune 500 rating data, we analyzed the changing detailed geography of the headquarters locations of the largest American companies by MSAs by calculating the dynamics of the Shannon diversity index by economic sectors over the past 40 years. The share of headquarters of the largest corporations located in the top 50 MSAs has remained almost unchanged, but since 2000 the top 5 MSAs have been declining, while the share of MSAs in the second population quartile has increased. This trend towards deconcentration and the rise of second-order agglomerations contradicts S. Sassen’s hypothesis on the concentration of headquarters in several largest cities. The reasons for the deconcentration seem to be associated with the rise of new economic centers in the cities of the US South and West and the relocation of the headquarters of existing F?500 companies to this new centers, as well as the concentration of new industries in new places, not in the key centers of old industries. The economic diversity of headquarters has also undergone significant changes. If in 1980 the MSA New York was significantly ahead of all the others in terms of the number of headquarters and their diversity index, then by 2019 MSA Chicago was significantly closer to it in terms diversity index. At the same time, other agglomerations of Megalopolis (MSAs of Bridgeport, Richmond, Washington, etc.) of the Northeast of the United States, since 2000, have increased the diversity of headquarters, demonstrating independent growth dynamics despite the location in close proximity to the dominant MSA New York. They, as well as the fast-growing MSAs of Miami, Phoenix, San Jose, Denver, Raleigh and Winston-Salem, by 2019 showed the greatest industry diversification. Mono-specialization is not generally typical of large concentrations of headquarters, exceptions are the center of oil production, oil refining and chemical industry Houston, car manufacturing capital of Detroit and the center of Silicon Valley San Jose, the rapid growth of industrial diversity of which, however, did not allow reaching average diversity indicators.

АНАЛІЗ ТА ПЕРСПЕКТИВИ РОЗВИТКУ АВІАТРАНСПОРТНОЇ ГАЛУЗІ УКРАЇНИ

The development of the air transportation industry of Ukraine is studied. The main trends of international and domestic air transportation, differences in the dynamics of cargo and passenger air transportation and changes that occurred under the influence of economic and political factors, as well as those caused by the pandemic and military events are identified. The competitive position of Ukrainian and foreign airlines in the international air transportation market is analyzed. The main reasons for the weak development of domestic air transportation are identified. The structure and main models of Ukrainian airports are analyzed. The regression models of passenger and cargo traffic of air transport are built, determined by the influence of the main macroeconomic indicators, which can be used for strategic forecasting of the development of the air transport industry in the post-war period. The article describes the perspective models of development of airlines and airports in Ukraine. Tough competition will lead to the fact that Ukrainian airlines, if they continue to exist, are likely to move to the model of small “hybrid airlines” or become ACMI operators. Due to the lack of access to cheap financial resources, Ukrainian airlines will gradually be pushed out of the market by foreign competitors. By lowering barriers to entry, new small Ukrainian regional airlines will emerge in the regions, operating on secondary routes that are not of interest to foreign carriers. The air transportation industry will move from the Hub-and-Spoke network model to the Point-to-Point model. Airports will have low profitability due to significant price pressure from low-cost airlines, and significantly lower revenues from aviation and non-aviation activities. Such airports will need government support to ensure their operation. After the opening of the airspace, considerable efforts will have to be made to stimulate and stabilize the development of air transportation, in particular in the areas of regulatory and legal regulation, organizational and managerial support, fiscal and monetary incentives, investment and innovation, and workforce.

Adaptation Capacity Management of the Passenger Air Carrier as a Participant in the Tourism Product Creation Process

The paper provides a critical analysis of researches related to the definition of different types of business opportunities, general approaches to adaptation management, adaptation potential management of transport and tourism enterprises. The choice of air carriers as the object of study was due to the greatest difficulty in managing their adaptation potential, and their key impact on the tourism product. The prerequisites for the adaptation of air carriers to the global tourism market were determined. It was noted that the adaptation capacity of enterprises has its own characteristics depending on the scope of activity of business entities. The scientific novelty is formed by the defined sequence of the procedure and the stages of air carrier adaptation to the conditions of the world tourism market. For the first time, a set of measures to adapt air carriers to the global tourism market was proposed. Intensification of tourism market participants’ interaction will provide an opportunity for global expansion of the tourism product.

‘Getting in and going’: Access to onboard toilets for fat and disabled people on commercial aircraft

In this paper we explore the accessibility of toilets onboard commercial aircraft for passengers who identify as fat or fat and disabled. Drawing on qualitative survey and interview data, we discuss people’s experiences of inaccessible onboard toilet spaces including getting to and into the toilet, managing bodily matter, anticipating a lack of accessible toilets, and the (il)legitimacy of fat and disabled air passengers within commercial aircraft regulations. Our data illustrate that current provision of onboard toilets is wholly inadequate for fat and disabled passengers, requiring strategies to manage bodily matter which are detrimental to health. We further ‘fat geographies’ research and relational understandings of embodiment that attend to spatial and temporal contingency by drawing together insights from disability, crip, gender, queer and trans theory, in particular conceptualisations of ‘misfit(ting)’, crip time, and (il)legitimate lives.

An artificial neural network for predicting air traffic demand based on socio-economic parameters

Over the past five years, emerging economies have consistently progressed toward achieving greater economic independence. The aviation industry has played a significant role in driving this progress. Accurately forecasting the future demand for air travel is crucial for making long-term commitments to these economies. The findings of this study provide valuable insights into the provision of low-cost passenger carrier demand. They can assist low-cost carriers, airports, airport consultants, and government agencies in their strategic planning and development processes. The primary objective of this study is to identify and evaluate artificial intelligence-based solutions, specifically, Artificial Neural Networks (ANN), to determine the most effective model for projecting domestic demand for low-cost carriers. The study analyzes nine variables that impact the accuracy of predicting domestic air passenger demand in emerging countries using a Multilayer Feed-Forward Backpropagation Neural (MFFBPN) network. The performance of the developed ANN model for predicting air passenger demand is assessed through training, validation, and testing using 240 data sets. The evaluation metrics employed, including mean square error (MSE), root mean square error (RMSE), accuracy, precision, sensitivity, and specificity, indicate the effectiveness of the developed ANN model, with results of 0.0019 for MSE, 0.0440 for RMSE, 0.92 for accuracy, 0.92 for precision, 0.93 for sensitivity, and 0.95 for specificity. We show that modeling based on artificial intelligence approaches and ANN is more effective than conventional linear regression models.

International law for public health in aviation: the challenges of harmonisation

International laws for commercial aviation have achieved an exceptional degree of harmonisation and greatly improved passenger safety. Yet, despite much international guidance, enforceable laws for public health protection in aviation are mainly the responsibility of national authorities. As a result, public health laws may be incoherent, in conflict with other countries and/or based on disputed scientific evidence. The COVID-19 pandemic has highlighted the responsibility of airlines and regulatory authorities to protect not only air passengers but also populations in destination countries. While the greatest risk to global public health is the potential spread of disease by infected passengers or vectors, lesser-known risks include food contamination, inadequate sanitary facilities and poor air quality within the cabin. In preparedness for inevitable future disease outbreaks and pandemics, an urgent review of international law as it applies to public health in commercial aviation is needed, with greater investment in scientific research to enable more accurate and effective risk assessment and management, supported by enforceable laws and clear responsibility.

Demographic and travel characteristics and self-reported predeparture SARS-CoV-2 testing behavior in air passengers entering the United States from foreign destinations from July to September 2021.

From January 2021 to June 2022, the United States Centers for Disease Control and Prevention required predeparture SARS-CoV-2 testing for all air passengers arriving into the United States from a foreign country. Using data collected during a surveillance project, we described predeparture testing behavior among a convenience sample of international air passengers entering the United States from July to September 2021 at six US ports of entry. We analyzed pairwise relationships between self-reported test type, test timing, demographic and travel characteristics, and COVID-19 vaccination status using chi-square and Fisher's exact tests. Participants were more likely to get a NAAT versus antigen test if they identified as non-Hispanic Asian or Pacific Islander (68.2%, n = 173), non-Hispanic Black (62.6%, n = 147), or if they preferred not to report race and ethnicity (60.8%, n = 209) when compared to those who identified as non-Hispanic White (47.1%, n = 1086, all p < 0.05). Those who identified as Hispanic or Latino (n = 671) were less likely to get a NAAT than the non-Hispanic White group (39.5% vs. 47.1%, p < 0.05). Participants arriving in the US from the Americas were less likely to get a NAAT (38.5%, n = 871) compared to those arriving from Europe (45.5%, n = 1165, p < 0.05). Participants who reported receiving their predeparture test 2 days or 3 or more days before departure were more likely to report receiving a NAAT (52.2%, n = 879, and 60.2%, n = 410, respectively) than those who reported testing within 1 day (41.4%, n = 1040, all p < 0.001) of departure. Test type was significantly associated with race and ethnicity, departure region, and test timing. Differences likely reflected regional disparities in the availability of tests at the time of the activity. Discrepancies in predeparture test timing and type worldwide may have consequences for the effectiveness and equity of travel requirements in future pandemics.

Prospects of development of Ukrainian air transport regulation

The world transport system is unthinkable without aviation. Currently, there is a positive trend in the field of air transportation, and the role of aviation on a global scale cannot be overestimated. Today our state is in a state of war, but we can claim that Ukraine has significant potential for the development of the aviation market. Before the war, the passenger air transportation market had the highest growth rates among all modes of transport in Ukraine. Such prospects are due, first of all, to significant unmet demand for air transportation, as well as a favorable geographical location for the development of transit transportation. At the same time, the development of instruments for regulating the industry at the national level is of particular importance. This article is devoted to finding ways to improve the legislative and regulatory framework of air transport.

Forecasting air passenger travel: A case study of Norwegian aviation industry

AbstractAccurate forecasting of airline passenger traffic is important for facilitating the effective management and planning of aviation resources. In this study, we explore the air passenger traffic in the Norwegian aviation industry by collecting the passenger flow data and the corresponding measurements of the weather conditions affecting the flow from the different airports in Norway. We then proposed nonlinear autoregressive with exogenous input (NARX) forecasting models to predict air passenger traffic in advance. The NARX models account for the nonlinearity and nonstationarity in the passenger flow and allow the accurate forecasting of air passenger traffic. We perform experiments to demonstrate the effectiveness of two variants of the NARX model and compare their performances against long short‐term memory (LSTM), a deep learning method. We show that the proposed NARX model achieves the best prediction accuracy compared to LSTM, which is considered as a state‐of‐the‐art approach for fitting sequential data.

Characteristics of community responses to airport noise around Bangkok International Airport

A social noise survey is a study of the community's response to noise. Data from a 2014-2015 noise survey of communities living around Bangkok International Airport is considered a spatial study that is important for the long-term planning of the airport development plan to prevent noise problems from aircraft operations. This paper presents the nature of survey data on airport noise from people living around Suvarnabhumi Airport over a decade after the airport's opening in 2006. It is now planned to expand the airport's capacity to handle more air traffic volume through runway expansion and passenger terminal expansion. The cross-sectional study is thought to be useful in future airport noise planning to avoid severe aircraft noise problems. In addition, it was an appropriate time to collect data from the field as a baseline for future airport noise management before expanding the capacity to handle more air traffic by adding more runways and passenger terminals.

항공기 이용객의 친환경 경영인식이 친환경 행동의도에 미치는 영향 : 규범활성화 모델(NAM)과 가치-태도-행동(VAB)모델 적용

항공기 이용객의 친환경 경영인식이 친환경 행동의도에 미치는 영향 : 규범활성화 모델(NAM)과 가치-태도-행동(VAB)모델 적용

Airport choices and resulting catchments in the U.S. Midwest

Air travelers originating from the catchment areas of airports – typically defined by administrative or geographic boundaries – will sometimes “leak” across these boundaries to farther, often larger airports that offer more attractive services and options. To investigate the attractiveness of different airports based on their proximity and geographic position relative to one another, we assess the airport choices of air passengers across a large region of the US Midwest that spans multiple administrative boundaries and airports. We combine a dataset of air tickets purchased by these passengers with other publicly available datasets, and apply mixed logit airport choice models based on air service attributes and airport access distance. We take multiple subsets of the total air tickets dataset using Halton sampling in order to achieve model estimation convergence. Model estimates are compared between data subsets, and consistently lead to the following key results. First, changes in air service attributes on short- and medium-length routes will have a more uniform influence on air passengers' airport choices, compared with long routes. Second, comparable proportional changes in air service attributes lead to greater changes in the catchment areas and market shares of small and medium airports, compared with large hubs. Within these service characteristics, airfare is found to impact passengers' airport preferences more than flight frequency. Finally, the catchment areas and market shares of small- and medium-size airports are influenced by the proximity and geographic location of neighboring airports; this differs from the catchments of large airports, which strongly extend into multiple jurisdictional boundaries in all directions despite the presence of surrounding airports. The study results provide further insight into the influence of air service attributes on long-distance airport choices over large geographic regions served by a diverse set of airports, and the resulting implications on multimodal transportation planning within and across such regions.

The impacts of IFRS 16 on airlines

This study addresses the effects of the adoption of IFRS 16 on the passenger air transport sector. With practical effects for financial years beginning on or after 1 January 2019, IFRS 16 established the standardisation of a single accounting modelfor all leases, whether operating or financial. With this new adoption, IFRS 16 aims to increase the transparency and quality of the information that is presented in the financial statements for the most diverse stakeholders.&#x0D; This study aimed to assess the effects of adopting this new international standard in a specific sector and to identify whether the changes in some of the financial indicators are felt in the same way by all companies, this being the main focus of this study. Based on a sample of 12 airlines from various countries in Europe and South America, the financial indicators were interpreted by analysing the reports and accounts before and after the application of IFRS 16.&#x0D; The main conclusions obtained are: i) the adoption of IFRS 16 led to an increase in assets, liabilities and EBITDA, however in different proportions for each of these items; ii) companies with negative equity and, therefore, with greater risks of bankruptcy or greater information asymmetry, tend to resort more to leasing as a way of financing their assets; iii) the financial autonomy and solvency ratios showed significant variations for companies that resort more to operating leasing.

Overbooking in Air Transportation: Problems and Solutions

Overbooking is widely used by airlines worldwide as one of the mechanisms that reduces the loss-making during transportation in case some passengers cancel the contract of carriage after purchasing a ticket. Russian legislation does not contain provisions allowing airlines to use this mechanism. In modern conditions, legitimization of overbooking in Russia will ensure minimization of airlines’ losses and protect the rights of passengers through compensatory measures established by law. The purpose of the paper is to analyze the possibility of legitimizing overbooking in the Russian Federation and propose legal measures to protect passengers. Methodologically the author relies on dialectical, comparative legal, systemic methods, as well as methods of legal modeling, analysis and analysis of legal reality. The author examined certain legal norms of the Civil and Air Codes of the Russian Federation regarding the possibility of termination or modification of the passenger air transportation agreement unilaterally (on the initiative of the carrier). The paper provides for a legal justification for this possibility of termination or modification of the passenger air transportation agreement unilaterally (on the initiative of the carrier). The foreign legislation in the field of overbooking has been studied in order to use some of its provisions. Proposals have been developed to determine the «excess» passenger during overbooking and the application of compensation payments. The possibility of legitimizing the use of overbooking in air transportation of passengers in the Russian Federation and ensuring the legal protection of passengers through compensation payments is substantiated.

Comparison of Artificial Intelligence Techniques for The UK Air Passenger Short-Term Demand Forecasting: A Destination Insight Study

Web search queries become essential drivers to forecast air passenger demand for operational benefits. Scholars and marketing experts. Forecasting passenger demand is one of the most important marketing problems that experts frequently encounter, but there are very few studies in the literature using search queries. The main novelty of this study is to show that Destination Insight (DI) can be useful as an air passenger demand proxy in the UK. To prove this primary objective, this work uses several machine and deep learning multi-layer perceptron (MLP) methods based on a big-data framework. The findings indicate that DI is a crucial predictor of the UK air passenger demand. Besides, popular error metrics (RMSE, MAPE, MAD and AIC) were compared to find the best model in this study. Specifically, results indicate that MLP following feed forward neural networks works better for the UK air passenger market.

Defining Standard of Access to Domestic Air Travel

Transport systems, in particular civil aviation, occupy an important place in development of any modern state. The effective design of such systems has a positive impact on the socio­economic component of any country. The quality of the transport system can be assessed through the population’s access to it. At present, one of the important problems of long-term development of the air transport system of the Russian Federation is definition of a universal indicator that allows assessing access to transport and its possible target standard.The article proposes an approach for assessing access to air travel using mathematical modelling. Two indicators are used as a criterion: a potential number of passengers in the gravitation zones of each airport and a passenger’s time being in the system. A methodology for determining the proposed indicators has been developed. The application of the approach of assessment of access to air travel is demonstrated on the 2019 network.An example of a target (simulated) network of domestic passenger air transportation is also given, which allows to significantly increase access to air travel. Based on the results obtained, the paper proposes target standards for the values of access to air travel for the Russian Federation.

Evaluating Sustainable Aviation Fuel Production Technologies A Strategic Analysis Using the WASPAS Method

Over the past 25 years, international passenger air traffic has tripled, and this rapid growth is expected to continue for the next 25 years. While the expansion of the aviation sector brings significant economic benefits, it also poses substantial social and environmental challenges. To address these, a "sustainable aviation policy" has been proposed as a "balanced plan" that seeks to mitigate the environmental impacts of the sector's growth while acknowledging its economic advantages. However, this definition of "sustainable aviation" is contested by various organizations, and there is little agreement between non-governmental organizations and the aviation industry. Consequently, the concept of a "standard aviation policy" remains in dispute, with different parties attempting to modify it to align with their respective goals. To develop policies for sustainable aviation, competing environmental discourses have been identified and analyzed using a classification exercise supported by rhetorical, stylistic, and thematic analysis. The Analytic Hierarchy Process (AHP) is one approach used for multi-attribute decision-making that satisfies the consistency requirements of each reciprocal matrix. Recently, the "Weighted Aggregates Sum Product Assessment System" (WASPAS) has been introduced in the literature, combining the weighted product sum and basic aggregate weighting methods.

Factors influencing the willingness to pay for aviation voluntary carbon offsets: А literature review

One measure to mitigate the carbon emissions created from air travel is voluntary carbon offsets (VCO). As a voluntary measure, the question of whether there is willingness to pay (WTP) for VCOs and due to what factors is as old as the concept itself. A vast amount of literature has studied the factors influencing WTP for VCOs, producing diverse but also contradictory results. In order to shed new light on the question of which factors influence air passengers’ WTP, a systematic quantitative literature review assessing the existing literature on this topic was conducted. Out of 332 studies, 47 articles published between 2004 and 2020 were selected and analysed. The results showed that the highest WTP can be found among young, high-income and highly educated air travellers that are aware of aviation’s contribution to climate change and feel personally responsible for their own contribution to it. Gender played no role in WPT. In terms of the offsetting programs themselves, they should be built to create trust in their effectiveness, establish a clear link between customers’ paying and the positive outcome for the environment, be transparent, not be priced too high and, most importantly, air passengers should be made aware of their existence.

Lotnicze przewozy pasażerskie w okresie pandemii covid-19 w Polsce

Air transport development trends were disrupted as a result of the spread of the SARS-CoV-2 virus and the emergence of a global pandemic. During this difficult period, the largest drop in the number of air passengers in history occurred. For example, in 2020, compared to 2019, there was a global decrease in the number of passengers in air transport by 60% and in Poland by 70%. Temporary restrictions were introduced, related to, inter alia, the cancellation of flights from countries with a high incidence rate, a mandatory SARS-CoV-2 virus test or a quarantine order upon arrival. The main aim of the study was to present the impact of the COVID-19 pandemic on passenger traffic at Polish airports. Attempts were made to obtain answers to the following questions: (1) what were the changes in the number of passengers served in Poland before and during the COVID-19 pandemic; (2) what actions/restrictions were taken in the field of air transport in the face of an increased number of COVID-19 cases; and (3) how has the SARS-CoV-2 virus affected airports and air carriers in Poland. The research was based on the statistical data of: the Civil Aviation Authority (CAA), Eurostat, Eurocontrol, and the Polish Central Statistical Office. The study presents the situation as of the end of 2021.