Airlines Corporation Research Articles

Navigating Airline Nationality: European Perspectives on Airline Shareholding and Corporate Governance

This article explores the complex and evolving landscape of airline nationality requirements in the European Union (EU). Despite liberalisation efforts since the early 1990s, nationality requirements remain essential for regulating market access, licensing, and the exercise of traffic rights by airlines. The article analyses the EU’s ownership and control criteria, specifically under Regulation 1008/2008, which mandates that EU carriers must be majority-owned and effectively controlled by EU nationals, and places these requirements in the context of shareholding and corporate governance. The paper examines landmark cases, such as KLM/ Northwest Airlines (NW) and Swissair/Sabena, to illustrate how different jurisdictions interpret and apply nationality requirements. Furthermore, it investigates how multinational network carrier groups like Air France-KLM, International Airlines Group (IAG), and Lufthansa navigate these regulations using complex shareholding and governance structures to maintain compliance with the nationality conditions. The study underscores that, despite the increasing complexity of airline corporate structures due to consolidation and cross-border investments, the fundamental criteria for ownership and control continue to adapt effectively to the shifting landscape of global aviation. The findings suggest that the interplay between ownership and control will remain critical in determining airline nationality in the foreseeable future.

Growing stakeholderism in the airline industry after the COVID-19 pandemic

This article investigates the impact of COVID-19 on the airline industry from a corporate governance perspective. Although the impact of the pandemic was literally unprecedented and the three years of hardship it caused (2020–2022) were particularly acute for the airline industry, the aviation market quickly recovered from a much gloomier forecast. This turnaround occurred at various times in different markets, but the airline industry in most regions has returned to pre-pandemic levels. However, COVID-19 has left a profound impact on the airline industry from a corporate governance perspective. Since almost no airlines could have survived the pandemic on their own, governments bailed out the airline industry, and particularly flag carriers. The rationale for the bailout was not only airlines' economic contributions but also reinforced protectionism in the airline industry. As a consequence, governments have been more concerned about airline corporate governance while emphasizing social issues. Board members and corporate leaders of airlines that received bailouts from governments are pressured to consider the interests of all stakeholders, and not just shareholders. This article argues that stakeholderism gained more influence in the airline industry after the pandemic.

The Influence of Internet Technology on the Aviation Industry: Existing Tactics and Future Advancements

This paper focuses on the customer interface effects that Internet technologies are having on airline firms; the examination centres on many airline businesses that have been utilizing Internet technology for their own profit. It is demonstrated how airline operators are utilizing the Internet to provide their consumers cutting-edge transaction structures and exchange methods. Customers' expectations of what and how these businesses supply products and services are growing as the Internet becomes more widely used. In reality, the Internet has become critical to the strategic development of the airline corporations under consideration. The use of Internet technology at the user interface has made the limits and extent of the aviation sector less obvious. The availability of a diverse variety of products and services is driving industry convergence, which has significant consequences for business strategy formation. The use of the Internet at the consumer interface has become a critical driver in the development of the airline business. Further exploitation of the Internet will result in increased levels of complexity, which will raise customer expectations about what and how these firms supply products and services.

КОРПОРАТИВНА КУЛЬТУРА АВІАКОМПАНІЙ В СУЧАСНИХ УМОВАХ

Airlines are required to not only adapt to shifting market conditions and technological improvements, but also to rethink and construct their own corporate culture in order to stay up with the current stage of growth in the aviation industry, which is facing significant upheavals. This is vital in order for airlines to be able to keep up with the current stage of development. In addition to the pandemics-specific challenges that were brought on by COVID-19, and the war in Ukraine, the concurrent socioeconomic crisis brought about an additional focus that was of utmost significance. In order to determine the influence that the pandemic of the coronavirus disease and the war have had on the management of the corporate culture of airlines, the goal of this essay is to investigate the impact. The aim of this paper is to analyze the ways in which corporate culture influences many aspects of airline operations. These aspects include the internal interaction and motivation of employees, as well as the outward image and communications with consumers. Tools for managing airline corporate culture during a crisis include communication platforms, psychological support programs, skills training, leadership development initiatives, and airline employee opinion and feedback tools. These tools help airlines adapt to change during a crisis, maintain a healthy corporate culture, and support their employees. Setting clear goals and regular monitoring of performance indicators are important for timely adaptation of corporate culture management strategies. It is appropriate to use the KPI system of airlines for the development of corporate culture in the conditions of modern challenges. The KPI system is offered as follows: KPI 1: Level of employee engagement; KPI 2: Reducing the level of stress among employees; KPI 3: Level of training and development of employees; KPI 4: Improvement of leadership skills in management; KPI 5: Improvement of corporate culture based on feedback. There is a possibility that the study will be useful to academic scholars, analysts, and businesses. Potential route for further exploration, regarding the development of corporate culture in the face of both exogenous and endogenous unpredictability, is the digitization of the key performance indicator system that is adopted by airlines.

Carbon Emission Intensity and Its Abatement Choices: A Case of China Eastern

Air transportation, which is a derived demand, is booming following the rapid development of the world economy, and carbon emissions from the air transportation industry, which takes fossil fuels as its main energy source, have been increasing. Therefore, with global warming attracting considerable attention, the issue of how to reduce carbon emissions from air transportation has become a hot issue. We take China Eastern Airlines Corporation Limited (China Eastern) as an example to analyze the main factors influencing airlines’ carbon emissions, specifically around the impact of airline internal operating indicators, such as available seat kilometers (ASK), passenger load factor (PLF), fuel consumption per unit passenger kilometer, the average age of operated aircraft, on-time performance (OTP), etc. This paper uses a correlation analysis, panel regression analysis, and other ways to explore the influence mechanism of the above factors on carbon emission intensity. The conclusions for China Eastern are the following: first, PLF has a significant negative relationship with carbon emission intensity; second, fuel consumption per passenger kilometer has a significant negative relationship with carbon emission intensity. Third, OTP has a significant positive relationship with carbon emission intensity. Fourth, fleet size has a significant positive relationship with carbon emission intensity. Finally, we propose several targeted carbon abatement measures for China Eastern, such as improving PLF and OTP, reducing fuel consumption per unit passenger kilometer, speeding up fleet renewal, etc.

The impact of debt and equity decisions on business performance: Evidence from International Airline Corporation

Capital structure decision remains always interesting puzzle for practitioner as well as for researchers. Capital structure of company fluctuates from company to company, country to country, nature of business to business and firm age to age. The current study examines the impact of capital structure (financial leverage and equity decision) on airline performance. The analysis is performed on secondary data. Data is taken from the financial statements of under consideration study of Pakistan International Airline. Sample period is taken from 2004 to 2020. The financial performance is measured by ROA and ROE, while independent variables are debt to asset (DTA), debt to equity (DTE), and size (natural log of total assets). Two econometric models are developed for the analysis. Regression and correlation are used to measure the impact of debt and equity on company performance. The study demonstrated that DTA has a statistically significant negative relationship with the dependent variable, ROA. Model 1 results indicated that only DTA was the good predictor of ROA and size had no significant relationship with ROA. Model 2 results demonstrated that the size had a significant but positive relationship with ROE. Meanwhile, DTA had an insignificant association with ROE.

Comparative Analysis of Portfolio Optimization Between Markowitz Model And Single Index Model

The key factors which investors consider when investing are the risks and returns of the assets. Moreover, they may determine efficient investment portfolios using some financial models. The goal of this paper is to compare the various optimal portfolios constructed using the Markowitz Model and the Index Model and give possible explanations for the results. The data selected for this paper are stocks from ten companies, which are Adobe Inc., International Machines Corporation, SAP SE, Bank of America Corporation, Citigroup Inc., Wells Fargo & Company, The Travelers Companies, Southwest Airline Corporation, Alaska Air Group Inc., and Hawaiian Holdings Inc. The companies are selected from the technology sector, financial services sector, and the industrial sector of the economy in order to simulate real investment decisions. In specific, twenty years of total daily return data from the companies and the S&P 500 index are collected. The statistical analysis shows that the expected return of the optimal portfolio calculated by the Single Index Model is always higher than that of the Markowitz Model. The assumption, that all stocks are independent of each other, made by the Single Index Model may provide a partial explanation for the difference in the expected returns. Nonetheless, the specific effect of the difference is yet to be examined.

A STUDY ON FLIGHT FARE PREDICTION USING ML ALGORITHM

There are several differences in today's continuously fluctuating airline ticket prices. Within a few hours, the same flight's price continues changing. The shoppers want to get the best deal possible, while the airline corporations want to make as much money as they can. Researchers have developed many models to address this issue, including ones that estimate the minimal price and the best time to buy a ticket, while airlines use strategies like demand forecasting and price discrimination to increase their profits.

A study on passenger satisfaction level of AirAsia India

French pilot Monseigneur Piguet flew the first commercial flight in India from Allahabad to Naini on February 18, 1911. However, it wasn’t until 1932 that Jahangir Ratanji Dadabhoy, the ‘Father of Indian Aviation’, established India’s first licensed commercial carrier.1 Tata Airlines was based out of Mumbai and transported both mail and passengers across India. In 1946 it changed its name to Air India. Two years later, the Indian Government acquired 49% of the company, and fully nationalized the airline in 1953 pursuant to the Air Corporations Act, 1953.2 this law not only allowed the Government to gain control over the erstwhile Tata Airlines, but also nationalized the entire sector. All existing airlines were merged into either Indian Airlines Corporation or Air India International.3 This monopoly continued for the next forty years. It wasn’t until the Indian economic liberalization of the 1990’s that the aviation sector was again open to private participation.

Effects of Psychological Benefits of Greenness on Airlines' Customer Experiential Satisfaction, Service Fairness, Alternative Attractiveness, and Switching Intention.

In the context of climate change, this study uncovers the role of green airlines’ social responsibility in conjunction with the consumers’ switching behavior while considering the effects of latent variables, including green psychology, airline corporate image, green experimental behavior, green service fairness, green alternative attractiveness and switching intention, were examined in the study. In a highly competitive service environment, an organization needs to understand how passengers perceive its corporate image, satisfaction, fairness attractiveness, and behavior of switching intention. The predicted relationship was based on partial least squares structural equation modeling of a convenience sample of 615 valid datasets collected from individuals who used green airline services in China. The findings show that the psychological benefit of greenness, only warm glow, is the main driver of airline corporate image. Furthermore, airline corporate image, green service fairness, and green alternative attractiveness support passengers’ green experiential satisfaction. The evidence demonstrates that green experiential satisfaction and green alternative attractiveness have significantly positive effects on switching intention. However, green service fairness has no significant effect on green switching intention. This study contributes to the literature by understanding airline customers’ perception of the complex relationship in the green constructs. This finding can help marketers facilitate and develop their external communication and craft their image to retain their existing or potential customers.

Procurement of facilities management services designated for office buildings of airline corporate organisations in Asia

PurposeThe purpose of this paper is to enhance decision-making process for the procurement of facilities management (FM) services within aviation corporate organisation, where the FM services functions to support the business operation. It builds on considering the fundamental elements comprising the FM procurement process from the aviation perspective.Design/methodology/approachThe paper investigates the characteristics of the different types of sourcing approaches and the underpinning factors affecting its selection for the procurement of FM services within the aviation industry. The decision-making framework for the procurement of FM services is developed based on the qualitative case study by interview and focus group discussion with the custodian department that is directly involved in the procurement of FM services.FindingsThe degree of outsourcing is increasing due to corporate organisation’s persona. Procurement of FM services is a complex process required detailed review, efforts and time in choosing the right sourcing approach. Off the shelf guidelines for the procurement of FM services suits property professional which directly involved with the procurement of FM services. However, decision-making process for the procurement of FM services specifically for aeronautical and non-aeronautical corporate organisation are rarely found. The case study findings signify that the respondents are familiar with the in-sourcing, outsourcing and right sourcing approaches. The underpinning factors affecting sourcing approaches were categorised according to the main reasons for the procurement of FM services, considerable factors during the procurement stage and value-adding criteria. The use of strategic management tools is not widely imposed, and intelligent client guideline is not available. Hence, the decision-making framework has been developed to fill the gap in this study.Research limitations/implicationsThe research is based on a study of aviation or airline corporate organisation, which limits the possibility of holistic view to the FM industry as a whole but highlights the research gap of FM procurement which is scarce within the case study of airline companies. The focus area is also bounded within the procurement of FM services designated for the office buildings.Originality/valueThe paper provides initial guideline for the airline company in sourcing the procurement of FM services that were developed based on established guidelines from accrediting bodies and scholars, as well as from the sampling feedback analysis. It is also among the firsts that examine the procurement of FM services in the context of aviation or airline industry. The outcome of this paper is a decision-making framework for the procurement of FM services that is specially designed for the airlines corporate organisations, which fills the gap that exists in the industry.

Turning the world on its head: The virus that disrupted “business as usual”

Turning the world on its head: The virus that disrupted “business as usual”

Instagram: A Gimmick or a Serious Reputation Builder in the Airline Business?

The purpose of the research was to shed light on the interrelatedness between Instagram and corporate reputation, on the one hand, and customer service expectations, on the other. A conceptual model was proposed to be tested in the context of the civil aviation economy. A national flagship airline company was chosen in which to conduct the research. An online questionnaire was made available, and 283 responses were collected. Partial least squares structural equation modelling (PLS SEM) was used to test the research hypotheses derived from the literature. The novelty of the work is in the scarce research found when scrutinising the literature on possible links between Instagram and airline corporate reputation. The study found a positive correlation between social media usage and corporate reputation in the airline sector. Future research needs to replicate this study across other airlines to ascertain the external validity of the current study and its potential for extrapolation.

Analysis of Greenhouse Gas Emission From Aircrafts and Ground Service Equipment at Tribhuvan International Airport of Nepal

This paper highlights the trend of carbon dioxide emission and its reduction measure at Tribhuvan International Airport, which is the only international airport of Nepal. The landing and take-off (LTO) cycle of three-year (2016 to 2018) data were gathered from Civil Aviation Authority of Nepal (CAAN) for all types of aircrafts and fuel consumption data of each ground service equipment (GSE) were collected from Nepal Airlines Corporation (NAC). With the help of LTO emission factors published by different institutions and collected data, the emission was calculated and overall (international, domestic, helicopters and GSE) CO₂ emission in the year 2016, 2017 and 2018 was found to be 56.55, 65.66 and 71.89 Kilotonnes respectively. Upon validation of calculated emission the discrepancy of 2.59% was found. The CO₂ emission was forecasted up-to 2030 considering two scenarios namely, time series analysis and regression analysis. Lastly, for the CO₂ reduction from GSE the scenario; Electrical GSE and Construction of Aerobridge was studied and from which it was found that the CO₂ will be reduced by 80% if implemented.

Evaluation and mitigation analysis of carbon footprint for an airline operator: Case of Nepal airlines corporation

This paper deals with evaluation and analysis of carbon footprint of an airline operator, Nepal Airlines Corporation (NAC) by using its actual flight and maintenance data from 2016 to 2019. NAC is a multi-fleet operator, of both turboprop and turbofan aircrafts. Carbon footprint in terms of Carbon Dioxide (CO2) emission has been calculated for NAC’s airline operations per individual aircraft, fleet-type and operating sector (i.e., international and domestic), and total ground handling operations. In each of the study years, contribution to NAC’s total CO2 production from its domestic fleet was found out to be very small (below 6% of yearly total), even though its fleet number outnumbered that of international fleet. This indicates better optimization opportunities for international-sector (turbofan) aircrafts than domestic-sector (turboprop) aircrafts. Reductions in fuel on-board as per prescribed levels, better airport slot management and selection of long-haul flight destinations have been identified as potential mitigation strategies for CO2 emission from international sector. Smaller aircrafts operating in domestic sectors are more prone to variations in occupancy rate and as such, NAC could focus on optimizing its commercial strategy to improve its CO2/passenger rate in domestic sector.

Information management as an element of increasing the efficiency of the airline corporate activity

Information management as an element of increasing the efficiency of the airline corporate activity

항공사의 환경적 CSR이 고객 태도 및 충성도에 미치는 효과 : 환경보호 관심의 조절효과를 중심으로

The current study aims to examine the roles of airline's corporate social responsibility(CSR). Specifically, the effect of airline's environmental CSR on passengers’ attitude towards the airline and loyalty was investigated. The relationship between passengers’ attitude and loyalty was also examined. In addition, the moderating function of environmental concern was verified. The conceptual model of the study was designed based on the previous research and the research model was empirically tested. The web-based survey was conducted and analyzed the data collected from the 426 passengers who had traveled abroad by airplane within one year because the passengers should recall their flight experience. The analysis results indicated that the airlines’ environmental CSR activities influenced passengers’ favorable attitude and enhanced their loyalty; and the effect of passengers’ attitude on loyalty was also significant. Moreover, environmental concern played a significant moderating role in the relationship between airline's environmental CSR activity and customer attitude. The results of the research provided academic and practical implications.

Visual Status among Nepalese Civilian Pilots

Introduction: Vision assessment is a part of medical examination for pilots. Visual acuity and refraction are performed routinely but binocular vision assessment is rarely performed. The aim of this study was to evaluate the visual status of Nepalese civilian pilots, including binocular vision assessment. Methods: It was a descriptive, cross sectional study conducted among Nepalese pilots. Thirty pilots operating domestic flights and twenty operating international flights, from 7 different airline companies participated in this study. A detailed ophthalmic examination of the pilots was performed by an investigator under the guidance of an Optometrist from January to August 2006. Examinations were conducted at Nepal Airlines Corporation, head office and domestic terminal at Tribhuwan international airport (TIA). The data collected were analyzed to determine presenting visual acuity, refractive error and binocular vision of pilots. Results: Among 50 pilots, 88% of pilots had presenting visual acuity within normal limits (6/6 binocularly) as normal requirement set by Civil Aviation Authority of Nepal (CAAN). Pilots having significant refractive errors were 32%. Other visual symptoms related were present in 16% of pilots. Only one case had intermittent exotropia (IXT) and exophoria was present in 15 (30%) pilots among which 3 (6%) had deviation between 4-8 prism diopters. Conclusion: About 90% of Nepalese civilian pilots had normal visual acuity as defined by civil aviation authority of Nepal (CAAN). However, few pilots had some form of binocular vision disorders which could easily be im3proved by vision therapy.

Emotional intelligence as an element of airline corporate social responsibility management

Emotional intelligence as an element of airline corporate social responsibility management

Effects of applying the new ASBE 21 Leases on the financial statements: Evidence from China

The Ministry of Finance of China has proposed a new lease accounting model to the existing lease accounting standard that requires the capitalization of all operating leases as assets and liabilities. In this case study, the key effects of the application of a new accounting standard — Accounting Standard for Business Enterprises 21 (ASBE 21), on financial statements and financial ratios of listed companies in the Chinese air transport industry have been analyzed and investigated. Significant relative differences were found within the airline industry in China. Results indicated that the total assets and liabilities would increase due to the capitalization of operating leases, whereas the profitability of firms was expected to decrease. Furthermore, the coverage of firms would decline, but the leverage of these firms would be improved. Rather than China, prior studies have analyzed the firms in other countries, where different accounting principles are applied. Hence, this study can provide useful information for the investors, as well as other stakeholders that are interested in Chinese airline corporations, and help to complete the studies about different lease accounting standards applied in different countries.