Airline Research Articles

The impact of dimensions of strategic flexibility on organizational performance in Libyan Airlines Company

This study aimed to identify the impact of dimensions of strategic flexibility on organizational performance in Libyan Airlines Company. In order to achieve the objectives of the study، the study followed the descriptive analytical method، where the study used a questionnaire to collect data، the questionnaire have been distributed to (133) employees at Libyan Airlines Company، and the collected questionnaire were (124)، representing (93%). A valid statistical analysis form and analysis of the study data was used e-Computer and use a statistical program from the software package contained in SPSS and according to percentages and averages arithmetic and multi regression analysis and other statistical analyzes، the study have reached many results، the most important of these results are the level of availability of dimensions of strategic flexibility including resource flexibility، capacity flexibility، market flexibility، and competitive flexibility in Libyan Airlines Company were average، and there is a statistically a significant effect between dimensions of strategic flexibility including (resource flexibility، capacity flexibility، market flexibility، and competitive flexibility) and organizational performance in Libyan Airlines Company، in the light of these results which the study reached, the study presented a number of recommendations. Keywords: Dimensions of Strategic Flexibility، Organizational Performance، Libyan Airlines Company

Leasing Loses Altitude While Ownership Takes Off: Real Effects of the New Lease Standard

ABSTRACT This paper evaluates the real effects of the new lease standard, ASC 842, on firms’ investment and operational outcomes. Using a sample of airline companies, we find that, subsequent to the promulgation of ASC 842 (2016–2018), public airlines reduce operating lease usage by about seven to ten percentage points relative to private airlines. The reduced lease usage is replaced by increased ownership, suggesting an equilibrium shift in firms’ investment due to changes in the cost-benefit tradeoffs associated with the operating lease classification. We also find evidence that the decline in lease usage hinders public airlines’ operational flexibility, as we observe more idle capacity in flights post-ASC 842. Facing excess capacity, public airlines seem to deploy their aircraft to shorter flying routes, raising the possibility of more wear and tear on the fleet. Overall, our evidence suggests that the new lease standard has intended and unintended real effects. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M41; M48; D22; D24; D25; E22; G38.

The mediating effect of a safety management system on the relationship between safety culture and safety performance in the airline industry – an experimental study in Vietnam

This study investigates the mediating effects of a safety management system (SMS) on the relationship between safety culture and safety performance of Vietnamese airlines. Data was collected from 446 employees and analyzed using AMOS 24.0. Structural equation modelling (SEM) was used to determine the comprehensive relationship between safety culture, SMS, and airline safety performance. Results show a significant positive relationship between safety culture and SMS, with SMS mediating the relationship. The study contributes to management practice by examining safety performance from an organizational culture perspective and focusing on factors driving organizational safety performance. The study concludes that safety culture's effect on performance will be greater if organizations develop and continuously implement a strong SMS.

Enhancing customer loyalty in the airline industry: Critical personal values and switching barriers

The current study aims to explore how customers’ personal values influence customer-perceived switching barriers and drive customer loyalty in the airline industry. Notably, it investigates switching barriers as a moderator between three dimensions of personal values and customer loyalty. Data were collected from passengers at Tan Son Nhat International Airport, Ho Chi Minh City, the busiest airport in Vietnam, using the convenience sampling method. Data analysis was conducted through structural equation modelling. The moderating effects were tested by PROCESS 3.4 macro in SPSS. The analysis shows that different facets of personal values explicate different impacts on switching barriers and customer loyalty. Further, the heterogeneous moderating role of the switching barriers in the relationship between dimensions of personal values and consumer loyalty is highlighted. These results suggest effective strategies for airlines to successfully retain their customer base.

Designing Predictive Models for Customer Recommendations During COVID-19 in the Airline Industry

Although travel restrictions imposed by countries are gradually lifted, the airline industry rebounds only when customers’ confidence in air travel is restored. Airlines that generate positive customer recommendations during the pandemic can have a competitive advantage in the post-pandemic environment. This article focuses on the prediction of customer recommendations of airlines during the pandemic. The results show that airline ratings established before the pandemic have weak performance, implying that customer recommendations could be based on other factors that are unique to the pandemic. In addition, COVID-19 travel safety of airlines and sentiments hidden in customer reviews are valuable for predicting customer recommendations. The results also confirm that flight duration affects the predictive powers of airline rating established before the pandemic and COVID-19 travel safety rating of airlines. There are important implications for the airline industry. First, airline ratings established before pandemic is not valuable to predict customer recommendations during COVID-19, underpinning the importance of including COVID-19 travel safety measures as part of the airline evaluation criteria in the future. Besides, COVID-19 travel safety is more relevant to customer recommendations in the long-haul markets. When selecting airlines for evaluation, airline rating organizations can give priorities to airlines that offer long-haul flights.

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.

Cultural Intelligence and Sustainable Career Success in Intercultural Service Encounters

Scholars have explored individual, organisation and external factors impacting career sustainability and framed these as part of a career ecosystem. While productivity is considered pivotal for career sustainability according to conceptual frameworks, there remains a gap in understanding its practical implications for occupations involving Intercultural Service Encounters (ICSEs). Culture significantly influences the attitudes and behaviours of service employees and shapes customers’ perceptions of service quality, thereby making cultural intelligence (CQ) a key competency for employees working in ICSEs settings such as in cultural tourism and the airline industry. This paper adopts De Vos, Van der Heijden, and Akkermans (2020) conceptual framework to underscore the significance of CQ in ICSEs and its connection to performance, thus fostering career sustainability in such contexts. Data from an ethnographic case study in Thai Airways, comprising semi-structured interviews with cabin crew employees, observations, and company records, were collected. Our study highlights the significance of CQ competencies in expanding the understanding of sustainable careers in ICSEs settings and aligns with the Career Ecosystem theory by emphasising the interplay between individuals, organisations, and national culture in shaping sustainable careers in such settings.

Is the Ultra-Low-Cost Carrier a New Threat? Evidence From the U.S. Airline Industry

Is the Ultra-Low-Cost Carrier a New Threat? Evidence From the U.S. Airline Industry

Managing Uncertainty in the Airline Industry: The Interaction of Strategic Flexibility, Organizational Learning, and Dynamic Capabilities

Managing Uncertainty in the Airline Industry: The Interaction of Strategic Flexibility, Organizational Learning, and Dynamic Capabilities

Research on aviation carbon reduction using aviation biofuels

In order to achieve sustainable aviation, countries are actively implementing actions to achieve plans to reduce the emissions of greenhouse gas and develop renewable energy. With the rapid development of the aviation industry, the impact of traditional aviation fuel combustion on climate change is significant, and the airline industry is facing severe challenges in reducing greenhouse gas emissions. Aviation biofuel is one of the promising alternative aviation fuels in the future. It has attracted increasing interest as it can effectively reduce greenhouse gas emissions as a clean and sustainable energy source. Various studies have been conducted to develop and evaluate biofuels. This report introduces the history and development of biofuels, discusses the preparation process, analyzes the greenhouse gas emission reduction effects, and discusses the prospects of aviation biofuels.

Pricing Optimization for Perishable Primary and Ancillary Items with Time-Dependent Inventory Drawdown

There are many industrial applications where attempts are made to sell ancillary products or services with a primary item. For instance, a warranty is often offered as an ancillary product to those who buy television sets (the primary item). This has become even more important in the airline industry where ancillary products such as baggage fees have become crucial to the financial health of the industry. Rapid depletion of available seat inventory, akin to perishable assets, necessitates careful consideration of pricing strategies to maximize revenue. It can make a big difference to revenue if certain fare classes are likely to sell out quickly. For instance, if most of the fares without seat assignment sell out earlier than those with seat assignment, the airline would forego a lot of the revenue from the ancillary item. We formulate the problem allowing for time dependence. In this paper, the question of what price to charge for the primary and ancillary products will be investigated.

A Review of Some Current Sustainability Management Practices in the Airline Industry: Proposed SMART Strategies and Methodologies for Improvement

A Review of Some Current Sustainability Management Practices in the Airline Industry: Proposed SMART Strategies and Methodologies for Improvement

How Do Information and Merger Affect Price Dispersion? Evidence from the U.S. Airline Industry

How Do Information and Merger Affect Price Dispersion? Evidence from the U.S. Airline Industry

A review of recent advances in Internet of Things-based customer relationship management to improve customer satisfaction and loyalty in the airline industry

Airlines use strategies to build and keep profitable, loyal customers through customer relationship management (CRM). However, as customer needs change, CRM systems must also change. With the Internet of Things (IoT) offering new ways to improve how customers experience services, airlines are combining IoT with their CRM systems. The connections airlines have with partners, airports, hotels, and banks can help meet these changing customer needs. However, past studies have not fully looked into how IoT-enhanced CRM helps make customers more satisfied and loyal or how airlines' connections with others play a part. Therefore, this study looks into how IoT-enhanced CRM is improving customer satisfaction and loyalty in airlines. It also examines how airlines' connections with others can support the relationship between IoT-enhanced CRM and customer satisfaction and loyalty. The study suggests a model and makes suggestions about the importance of IoT-enhanced CRM in making customers more satisfied and loyal. It also outlines how to test these suggestions and suggests directions for future research.

Brand awareness and its influence on repeat customers in the airline industry

India’s aviation industry is seeing growth, and the country is host to several domestic airline firms.In India, the domestic aviation industry is predominantly composed of private airlines, accounting for over 75% of the market, making it one of the aviation markets with the highest growth rates globally. Currently, there are 454 functioning airports in the country, out of which 16 are international airports. The aviation sector is projected to have a resurgence with an anticipated compound annual growth rate (CAGR) of 18% in 2011. The Civil Aviation Ministry’s current predictions indicate that increasing traffic movement and revenues—which climbed by about US$ 21.4 million in 2009—will enable India’s Airports Authority to create higher margins in 2009–2010. Acknowledging and. Recognizing and delivering high-quality service begins with knowing exactly what clients want. Service quality is one of the finest measures for assessing the opinions and expectations of clients. Customer performance within an organization determines customers satisfaction with services. Passenger happiness affects customer sovereignty. It is possible for customers to be really satisfied and still not be loyal, or vice versa. Companies need to have a deeper understanding of the relation between online behaviour and contentment in order to divide internet marketing tactics between programs that promote behavioural intention and happiness. The findings will benefit airline managers by enabling them to monitor and improve the quality of their workforce, improve customer service, and increase passenger satisfaction. In India, buying airline tickets again and again is rather usual, particularly for business or frequent visitors. Numerous domestic airlines in India have frequent flyer and loyalty programmes as a means of encouraging consumers to keep using them when making travel reservations. Furthermore, a lot of Indian travellers buy their flights using online travel agents (OTAs), which make it simple for consumers to compare options and costs across several airlines. To entice users to make additional reservations, these OTAs frequently provide cashback or discount incentives for recurring bookings. Furthermore, a lot of Indian airlines entice customers to buy tickets with them again and again by providing a range of promotional deals, discounts, and cashback incentives at different periods of the year. In general, Indians frequently buy plane tickets again and are influenced by loyalty programs, frequent flyer programs, discounts, cashback offers, and the ease of booking through online travel agencies.

The Impact of Flight Attendants' Attractiveness on Perceived Service Quality: An EEG Perspective

Competition in the airline transportation sector has significantly intensified following the deregulation act in the United States. To remain competitive, airline companies have begun implementing a range of strategies. One of the strategies commonly used by airlines is to improve service quality. Service quality has been very beneficial for airline companies to maintain profitability and increase market share. To achieve this goal, airlines must investigate the factors influencing service quality and enact improvements and regulations based on these determinants. There are significant studies in the literature on the influence of service employees on service quality. However, there are only a limited number of studies on the influence of the service quality of flight attendants, who are the public face of airline operations, on service quality. This study focuses on the influence of the level of attractiveness (a nonverbal characteristic) of flight attendants on perceived service quality. This research employs a neuromarketing method, specifically the frontal asymmetry approach, using electroencephalography (EEG) techniques. In the experiment, 37 participants were recruited, including 19 males and 18 females, and frontal alpha asymmetry metric results were derived from electrode pairs. In the experiment conducted at the Faculty of Aeronautics and Astronautics, Eskisehir Technical University, participants also evaluated the influence of flight attendant attractiveness on service quality using a survey technique. The findings indicate a significant difference in frontal alpha asymmetry (FAA) metrics between attractive and unattractive flight attendants. FFA metrics of attractive flight attendants were greater than those of unattractive flight attendants. Additionally, FAA metrics were found to be greater under favourable service delivery than under unfavourable service delivery. Furthermore, among the service dimensions, the reliability and responsiveness dimensions had higher FAA metrics than did the other dimensions. A study comparing EEG results with survey responses revealed a statistically significant difference. The findings indicate that flight attendants with higher levels of attractiveness enhance their motivation to approach, thereby contributing to an improvement in perceived service quality. Moreover, these findings underscore the potential of neuromarketing methods for validating outcomes from conventional research approaches. Based on these findings, airlines should develop policies that prioritize attractive attributes in the recruitment of flight attendants. In addition, implementing various programs and incentive systems to maintain the attractiveness of flight attendants is essential. Moreover, providing services with diversified flight attendant profiles tailored to different customer segments is considered crucial for customer satisfaction and experience. Future studies could achieve more comprehensive results by using diverse sample sizes and age groups along with different neuromarketing techniques. Furthermore, the findings suggest a high potential for applying the frontal alpha asymmetry approach in other marketing fields.

Navigating Passenger Compensation: Implications for Airlines and Consumers

Amid winter’s icy grip, as frigid December storms swept across the nation, a distressing scenario unfolded for countless airline passengers. In the realm of air travel, a ticket represents more than just a mere document. It embodies a contract, a covenant between passengers and airline companies. It symbolizes an agreement made by airlines—a commitment to delivering timely and uninterrupted travel experiences. Following the pandemic, which brought about technological failures, system outages, and staffing shortages, many travelers found themselves stranded due to prolonged flight delays or cancellations. Currently, the absence of viable options for passengers to seek recompense in the form of refunds, compensation, or expense reimbursements only compounds the challenges faced during such inconveniences. In light of the widespread disruptions gripping the commercial aviation industry, the U.S. Department of Transportation has introduced a proposed rule to provide restitution to affected passengers. This proposed rule mandates that airlines take on the responsibility of covering specific expenditures incurred by passengers and extend compensation as redress for the difficulties resulting from flight delays and cancellations. This comment seeks to examine the contours of the proposed rule and delineate the arguments both in support of and against its potential implementation.

The moderating role of workplace spirituality on the effect of organizational justice on job satisfaction.

The study's goal is to investigate the moderating effect of the workplace spirituality of employee on the relationship between their organization's justice perception and job satisfaction. The study included a sample of 360 employees from two Turkish airline companies. The findings show a relationship between organizational justice and job satisfaction. The study also finds that workplace spirituality moderates the effect of organizational justice on job satisfaction. Employees with high workplace spirituality are more satisfied than those with low workplace spirituality. The study is important, especially in examining the moderator role of workplace spirituality between these two variables, and fills a gap in the literature. Empirical data of Turkiye's two largest airline companies, which aim to become and remain competitive in the aviation industry, were shared. This research-based approach provides guidelines for this industry on the effects of workplace spirituality on job satisfaction and organizational justice.

Designing a Human Resource Responsibility Model in Airline Companies Using Content Analysis Approach

Objective: The objective of this study was to design a comprehensive model for human resource responsibility in the Islamic Republic of Iran Airline Company "Homa," addressing the increasing demands from consumers, investors, suppliers, and workers for organizational responsibility and the need for effective management of these activities and resource allocation. Methodology: The research employed a descriptive-analytical and inductive-deductive approach. Qualitative data were collected through interviews with 15 experts based on their specialization and experience in human resource management and organizational responsibility. Content analysis was used to extract and count relevant components from the literature, leading to the identification of 95 components. These were further categorized into six main components. The analysis was supported by the use of MAXQDA software for coding and categorization. Findings: The study identified 26 indicators within six main components of human resource responsibility: improving organizational welfare and health, responsible human resource behavior, engaging participation and developing a supportive reward system, developing the work environment, fostering constructive interaction, and enhancing human resource management functions. Conclusion: The results indicate that human resource responsibility in the Islamic Republic of Iran Airline Company "Homa" can be effectively modeled through the identified components and indicators. This model provides a structured framework for improving organizational practices, enhancing employee commitment and responsibility, and ultimately contributing to the organization's success. Managers can utilize these findings for strategic planning and decision-making to foster a culture of responsibility and ethical behavior within the organization.

Comparisons of the dynamic responses of diffusion flames subjected to acoustic disturbances in the fuel and air lines

In this paper, the dynamic responses of a laminar diffusion flame subjected to acoustic disturbances in the fuel line (ADF) and surrounded air flow (ADA) were experimentally studied. Experiments were conducted at different frequencies by keeping the velocity perturbation amplitudes for both ADF and ADA the same. Chemiluminescence data (CH* and OH*) measured by an intensified high-speed camera and density perturbations measured by a Mach–Zehnder interferometer (MZI) were used to identify the flame dynamic responses in detail. Results show that both ADF and ADA can induce flame oscillations by stimulating disturbances in the fuel flow but in different manners. The perturbations led by the ADF propagate along the flame front with a hydrodynamic wavelength, while those driven by the ADA are more likely to periodically squeeze and extend the flame region from the lateral interfaces, leading to a global periodic motion along the longitudinal direction. Both types of perturbation are difficult to propagate downstream due to the damping of flow perturbation. In addition, the flame oscillation patterns driven by the ADA remain the same under different disturbance frequencies. When the diffusion flame is simultaneously subjected to both ADF and ADA, the perturbations of them are mutually coupled at this time, but the oscillation patterns of the flame are dominated by the ADF. Due to the different mechanisms of two disturbances, the oscillation patterns after coupling are related to the disturbance frequency. Based on the above results, a model of the diffusion flame oscillation subjected to ADF and ADA was proposed.