Airline Model Research Articles

Intangible resources of competitive advantage: Analysis of 49 Asian airlines across three business models

Without sustainable competitive advantage firms have limited economic reasons to exist and will decline. Competitive advantage concerns the factors which provide competitive strength. This paper is based upon the resource-based view which considers firm resources to be heterogeneous and which believes that firms only have a small bundle of core resources irrespective of their overall performance. This research establishes the role of 36 intangible resources for 49 Asian airlines across three business models: network airlines; low-cost subsidiaries from network airlines; and low-cost carriers. It uses the VRIN framework which examines whether resources are valuable, rare, inimitable, and non-substitutable. Research participants distribute points between their chosen seven resources according to their perceived role in firm performance. Resources which meet all four requirements of VRIN are considered core competences and sources of sustained advantage. Across all 49 Asian airlines, the top-three most important resources of advantage are slots, brand, and product/service reputation. While these core resources are predictable, they have not previously been proven within the context of airlines, let alone geographically and by airline model. Results show that the core bundle of resources vary for each model, which helps to explain the difference in performance across models, and that some resources which were expected to be high-ranking, such as organisational culture and customer focus, were not.

How far will the airline model stretch?

As revenue management matures, the growth in the number of industries it is employed in is slowing and questions are being asked about its effectiveness in situations that are very different from the traditional airline model. The revenue management industry and academics must move away from solving problems for the airlines and concentrate on building better, more specific models, for other key industries.

Airlines in Poland

In this article is described the concept of the airline. This article describes the different types of airline concepts which can occur in the airline market. The main topic of this research is description of all Polish airlines in detail. You can find in this topic description of each Polish airline also with a fleet and departures what were main attributes for this research and for determining of airline model of each Polish company

The Price Roller Coaster: Can Air Carriers Ride it?

Last minutes tickets, group tariffs, agency prices, low cost promotions are buzzwords in the intensively competitive airline industry. These are all connect to prices strategies which constrains and simultaneously impels air carriers to analyze and redefine commercial strategic decisions. The low-cost airline model versus legacy carrier model has spurred ongoing debate. With the current world economic crisis (especially in Europe), airlines need to redefine their marketing strategies so as to: (i) survive/compete and (ii) meet consumers’ demands, which are ever-more price-sensitive and questioning the value proposition of the airline carriers. Thus, it seems relevant to revive research on this subject and to unveil some of the elements associated with price discrimination strategies. This study analyzes price dispersion in the intra-European airline market, using a significant sample of the prices posted on the city pairs Lisbon – Paris and Madrid – London. The aims is to test some key factors that may influence price dispersion, which airlines can take into account when developing and evaluating their pricing strategies. Specifically, this work attempts to test the relation between price dispersion among airlines and their capability of price discriminating as a result of their market power and differentiating full service carriers from low cost carriers. The results revealed that neither the full service nor the low cost carriers show differences on price dispersion, when testing the interaction of these type of airlines with each of the market segmentation factors.

Investigation of lateral-directional aerodynamic parameters identification method for fly-by-wire passenger airliners

A new identification method is proposed to solve the problem of the influence on the loaded excitation signals brought by high feedback gain augmentation in lateral-directional aerodynamic parameters identification of fly-by-wire (FBW) passenger airliners. Taking for example an FBW passenger airliner model with directional relaxed-static-stability, through analysis of its signal energy distribution and airframe frequency response, a new method is proposed for signal type selection, signal parameters design, and the appropriate frequency relationship between the aileron and rudder excitation signals. A simulation validation is presented of the FBW passenger airliner’s lateral-directional aerodynamic parameters identification. The validation result demonstrates that the designed signal can excite the lateral-directional motion mode of the FBW passenger airliner adequately and persistently. Meanwhile, the relative errors of aerodynamic parameters are less than 5%.

Investigation of longitudinal aerodynamic parameters identification method for fly-by-wire passenger airliners

The flight control system of a fly-by-wire (FBW) passenger airliner with a complex framework and high feedback gain augmentation would change the original characteristic of a loaded signal and suppress the excitation of an airplane’s pertinent motion modes. Taking a research example of an FBW passenger airliner model with longitudinal relaxed-static-stability, a new method of signal type selection and signal parameter design is proposed, through analysis of signal energy distribution and plane body’s frequency response. According to CCAR60—the Appraisal and Use Regulation of Flight Simulator Device, the simulation validation of the FBW passenger airliner’s longitudinal aerodynamic parameters identification is put forward. The validation result indicates that the designed signal could excite the longitudinal motion mode of the FBW passenger airliner adequately and the multiparameter comparison in simulation meets the objective test request of CCAR60. Meanwhile, the relative errors of aerodynamic parameters are less than 10%.

Flying high and low? Strategic choice and employment relations in Qantas and Jetstar

This paper examines the strategic choices made by Qantas Airways, a full-cost legacy airline, and its low-cost carrier, Jetstar, regarding employment relations in the context of increasingly competitive market pressures. Initially these airlines pursued divergent employment relations strategies. As the external environment became more turbulent, these employment strategies began to converge. Both airlines have adopted a hybrid approach to employment relations which is crucial in determining whether the Qantas group can survive the current turbulence in the aviation industry which threatens to the long-term viability of the airline. This research identifies the strategic role that employment relation strategies play in establishing a sustainable business model for airlines that are comprised of both a legacy and low-cost airline.

Modelling trigonometric seasonal components for monthly economic time series

The basic structural time series model has been designed for the modelling and forecasting of seasonal economic time series. In this article, we explore a generalization of the basic structural time series model in which the time-varying trigonometric terms associated with different seasonal frequencies have different variances for their disturbances. The contribution of the article is two-fold. The first aim is to investigate the dynamic properties of this frequency-specific Basic Structural Model (BSM). The second aim is to relate the model to a comparable generalized version of the Airline model developed at the US Census Bureau. By adopting a quadratic distance metric based on the restricted reduced form moving-average representation of the models, we conclude that the generalized models have properties that are close to each other compared to their default counterparts. In some settings, the distance between the models is almost zero so that the models can be regarded as observationally equivalent. An extensive empirical study on disaggregated monthly shipment and foreign trade series illustrates the improvements of the frequency-specific extension and investigates the relations between the two classes of models.

Masking of volatility by seasonal adjustment methods

We report that the X-12 ARIMA and TRAMO–SEATS seasonal adjustment methods consistently underestimate the variability of the differenced seasonally adjusted series. We show that underestimation is due to a non-zero estimation error in estimating the seasonal component at each time period, which is the result of the use of low order seasonal filter in X12-ARIMA for estimating the seasonal component. Hence, we propose the use of high order seasonal filter for estimating the seasonal component, which helps reducing the estimation error noticeably, helps amending the underestimation problem, and helps improving the forecasting accuracy of the series. In TRAMO–SEATS, Airline model is found to deliver the best seasonal filter among other ARIMA models.

Multi-Objective Fleet Assignment Problem Based on Self-Adaptive Genetic Algorithm

Since the beginning of the twenty-first century, energy conservation has become the theme of the development of the world. China government set the emissions-reduction targets in various industries on the 12th Five-Year Plan. And the airlines were committed to reduce their carbon emissions. From an operational perspective, the airline model assignment problem is a key factor of the total carbon emissions on the entire route network. But the traditional aircraft assignment models approach did not account for this purpose to reduce carbon emissions. By constructing the multi-objective optimization models consider carbon emissions assignment model using a genetic algorithm, numerical example shows that the model is able to meet all aspects demand which include meeting route network capacity demand, minimizing operating costs and reducing total aircraft fleet carbon emissions.

THEORETICAL FUNDAMENTALS OF THE AIRPORT NETWORK ANALYSIS

The methodological approaches to the analysis of airports network on the theory of complex networks based are described. Results of experimental calculations on a fragment of airports network of Ukraine are presented. Indicators of complex networks (node degree, the strength of the node, the clustering coefficient) are estimated for Ukrainian airports net fragment. Results of research explain the vision that air-transport network of all Ukrainian airports formed on basis of the feeder carrier business model for European airlines. On the selected fragment of airports network of Ukraine the most node strength have the airports in Kyiv (3861) and Odessa (1141), the degree of the node at these airports is 14 and 9, respectively. The highest clustering coefficient has Donetsk airport – 0.6. It is also made a conclusion about the low integration of Kyiv in the European network of hubs.

Mathematic Model of Airliner Forced Landing onto Water in Contacting Stage

A mathematic model of the optimal posture of airliner landing onto water is built in contacting water stage. By using solid-fluid coupling, momentum conservation, motion equation and pressure drags, the difference equation is constructed to find the influences of the contact water surface angle. The numeric results shows that the peak pressure keeps long time if impact angle small..

Low-Cost Airlines: A Failed Business Model?

Abstract The article examines the sustainability of the low-cost, or no-frills, airline business model. It looks at the background to the development of this managerial approach within the context of some prevailing business theories and considers variations on the basic low-cost airline model. It assesses, drawing from the experiences of a number of markets, whether the model in itself is likely to be enduring, or whether it is simply a transient way for some airlines to recover their full costs.

The Development of the Low-Cost Carriers’ Business Models. Southwest Airlines Case Study

The aim of this paper is to analyze the development of the low-cost airline model, underlying the factors that have encouraged and/or inhibited the spatial and temporal spread of these operators. The study shows that there are significant differences in the business practices of the ‘low cost carriers’, depending on the particularities of the strategies that they have adopted, on how, when and where they were implemented, reason for which we refer to ‘business models’. In the end of the paper, we have conducted a detailed research, based on a questionnaire, on the company that has implemented for the first time the low-cost carrier model: Southwest Airlines.

A DISTRIBUIÇÃO DE SLOTS E A CONCORRÊNCIA NO SETOR DE AVIAÇÃO CIVIL BRASILEIRO

A indústria de aviação civil brasileira passou por profundas mudanças, a partir dos anos de 1990, com liberalização dos mercados de transporte aéreo de passageiros, o que ocasionou importantes alterações no modelo de operação da malha aérea; sendo a mais evidente a substituição do sistema point-to-point pelas redes hub-and-spoke. A combinação do atual modelo de negócios das companhias com a configuração da infraestrutura aeroportuária e de tráfego aéreo tem se revelado altamente ineficiente. Com vistas nestes aspectos, o objetivo deste trabalho é fazer uma apreciação da concorrência no setor de aviação civil brasileiro, utilizando como unidade de análise as indústrias em rede na presença de instalações essenciais; aqui representado pelo acesso aos slots - horários de pouso e decolagem - dos aeroportos congestionados. A principal conclusão é que a distribuição de slots é de fundamental importância para estabelecer o nível de concorrência na indústria de transporte aéreo de passageiros.

Working the skies: Changing representations of gendered work in the airline industry, 1930–2011

The influence of the media, whether print, celluloid or contemporary electronic, on life and career choices, particularly from a gender perspective is well documented. Indeed, the power of today’s e-media imagery has, arguably, a more ubiquitous influence on such decisions than was in the case for previous generations. However, both traditional print and more contemporary media influencers remain important and, therefore, gaining an understanding of their role in the representation of gendered work, both historically and in a modern context, is of considerable value. Working in the sky, whether as a pilot or member of the cabin crew, continues to hold a fascination and attraction for potential entrants that far exceeds the technical demands or financial rewards of the reality of such work. Perceived as ‘glamorous’ work since the early days of commercial flight in the 1930s, this tag has largely remained, despite major changes to the business and workplace environment in the intervening years. Commercial aviation is an area of work that has inspired a genre of influential romantic literature and numerous ‘real-life’ recollections alongside serious academic analysis. This paper charts the representation of, in particular, female flight attendant work from its ‘golden era’ through to the present context where the influence of the low-cost airline model has radically impacted upon the working environment within the sector. The discussion focuses on the broad ‘genre’ of airline-related employment literature, drawing on romantic, comic and biographical accounts alongside sources that address this theme from academic/research perspectives, in order to ask whether contemporary representation is any more a true reflection of this work than that during previous generations. In undertaking this analysis, this paper draws upon the role and career representation literature, particularly with respect to embodied and gendered work.

Modeling Trigonometric Seasonal Components for Monthly Economic Time Series

The basic structural time series model has been designed for the modelling and forecasting of seasonal economic time series. In this paper we explore a generalisation of the basic structural time series model in which the time-varying trigonometric terms associated with different seasonal frequencies have different variances for their disturbances. The contribution of the paper is two-fold. The first aim is to investigate the dynamic properties of this frequency specific basic structural model. The second aim is to relate the model to a comparable generalised version of the Airline model developed at the U.S. Census Bureau. By adopting a quadratic distance metric based on the restricted reduced form moving-average representation of the models, we conclude that the generalised models have properties that are close to each other compared to their default counterparts. In some settings, the distance between the models is almost zero so that the models can be regarded as observationally equivalent. An extensive empirical study on disaggregated monthly shipment and foreign trade series illustrates the improvements of the frequency-specific extension and investigates the relations between the two classes of models.

When legacy carriers converge with low-cost carriers: Exploring the fusion of European airline business models through a case-based analysis

The paper makes uses of cognitive mappings developed from personal interviews with a number of European airline executives to examine the differences in managerial attitudes of low-cost and transitional carriers. In particular it explores the extent to which there is a convergence of views regarding the ways various airline models will develop in the future.

An outsourcing decision model for airlines' MRO activities

PurposeThis paper aims to evaluate the main business models used for airlines' maintenance, repair and overhaul (MRO) activities and determine the activities to which these relate.Design/methodology/approachA critical literature review is used to develop a conceptual model of MRO activities. This is evaluated through a SWOT analysis before an exploratory study of eight airlines is used to confirm the applicability of the conceptual model.FindingsFour levels of MRO outsourcing are identified; from fully outsourced to fully in‐sourced. From the exploratory study it is shown that critical MRO activities such as line maintenance are frequently in‐sourced, while activities with low demand at an airline level such as engine maintenance are often outsourced.Practical implicationsMRO represent around 10‐15 per cent of an airline's operational costs. By identifying the strength and weaknesses of different MRO models, it is possible to evaluate alternative MRO strategies.Originality/valueUnlike other research in maintenance which was aimed mainly at the manufacturing sectors, this research provides insights into the maintenance practises in a service sector. In particular this research studies the different outsourcing levels existing in airlines' MRO. The knowledge gained by understanding the mechanism of outsourcing in airlines' MRO can be further extended to other industries and help in best configuring their maintenance units.

A non-Gaussian generalization of the Airline model for robust seasonal adjustment

In their seminal book Time Series Analysis: Forecasting and Control, Box and Jenkins (1976) introduce the Airline model, which is still routinely used for the modelling of economic seasonal time series. The Airline model is for a differenced time series (in levels and seasons) and constitutes a linear moving average of lagged Gaussian disturbances which depends on two coefficients and a fixed variance. In this paper a novel approach to seasonal adjustment is developed that is based on the Airline model and that accounts for outliers and breaks in time series. For this purpose we consider the canonical representation of the Airline model. It takes the model as a sum of trend, seasonal and irregular (unobserved) components which are uniquely identified as a result of the canonical decomposition. The resulting unobserved components time series model is extended by components that allow for outliers and breaks. When all components depend on Gaussian disturbances, the model can be cast in state space form and the Kalman filter can compute the exact log-likelihood function. Related filtering and smoothing algorithms can be used to compute minimum mean squared error estimates of the unobserved components. However, the outlier and break components typically rely on heavy-tailed densities such as the t or the mixture of normals. For this class of non-Gaussian models, Monte Carlo simulation techniques will be used for estimation, signal extraction and seasonal adjustment. This robust approach to seasonal adjustment allows outliers to be accounted for, while keeping the underlying structures that are currently used to aid reporting of economic time series data. Copyright © 2006 John Wiley & Sons, Ltd.