Domestic Aviation Market Research Articles

Greenhouse gas emissions trends and drivers insights from the domestic aviation in Thailand

Domestic aviation is a swiftly expanding contributor to global greenhouse gas (GHG) emissions. Presently, economic volatility and the Coronavirus disease (COVID-19) crisis have resulted in the decline of domestic aviation, but domestic aviation is rapidly recovering in many countries. However, from a GHG emissions viewpoint, the domestic aviation sector is largely unenforced even though the International Civil Aviation Organization's (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) provision for international aviation is currently in place. Accordingly, the knowledge base on emissions and their drivers from domestic aviation is weak, especially in developing countries, thus hindering an evidence-based policy debate. In this context, we have estimated and analyzed the pre-COVID-19 GHG emissions and their trends from commercial domestic aviation in Thailand; and provided insights on the role of key drivers that influence GHG emissions that are expected to be useful not only for Thailand but also for other developing countries. Emissions are estimated following Intergovernmental Panel on Climate Change (IPCC) Tier-II. Specifically, activity-based landing/take-off (LTO) cycle and cruise. This is compared to the Tier-I method, and key drivers were analyzed using an index decomposition method. The total annual average GHG emissions for all LTO cycles and cruises of commercial domestic aviation for 2015–2020 was 2254 Th. tonnes of CO2-eq. During the LTO cycle of the aircraft, GHG emissions were at an average of 983 Th. tonnes of CO2-eq. Additionally, during the cruise stage, emissions averaged 1270 Th. tonnes of CO2-eq. The choice of accounting methods (i.e., IPCC Tier II vs. Tier I) seems to have had only nominal implications. Our analysis showed that, in the 2008–2020 period, the aviation activity effect and economic growth were the key decisive factors in this sector's GHG emissions growth. It was followed by the fuel energy intensity levels and the population effect in descending order of impact. These findings have significant ramifications for present and future policies aimed at decreasing GHG emissions, aiding Thailand in achieving its climate targets by 2050, and enhancing energy efficiency as the domestic aviation market adapts.

Lion Air's Strategy in Increasing Domestic Aviation Market Share at Makassar's Sultan Hasanuddin International Airport

The world of aviation is currently experiencing quite rapid development with many requests for passengers to travel for leisure and business purposes. With this demand, Lion Air will increase its aviation market share strategy. This researcher aims. 1) To find out how to implement Lion Air's marketing strategy in increasing the aviation market share at Sultan Hasanuddin Makassar International Airport. 2) To find out what obstacles Lion Air is facing in increasing its market share at Sultan Hasanuddin International Airport. 3) To find out how the solution will be carried out by Lion Air in increasing the market share of domestic flights at Sultan Hasanuddin Makassar International Airport. This researcher uses a mixed method (mix method) with descriptive techniques. The instruments used to collect research data were the researchers themselves, observations, interviews, documentation to answer the research questions. Researchers conducted data analysis using qualitative and quantitative data analysis techniques. The results of this study indicate that the method of implementing Lion Air's marketing strategy in increasing the share of the aviation market provides information that there is Lion Air as a private airline that provides low-cost flight services while still prioritizing the best service and prioritizing safety. The obstacles faced in implementing this MPR strategy are HR who must be able to understand developments in IT technology, as well as HR who must be able to process research data that has been carried out in the field to observe the market. The solution that will be carried out is to choose human resources who are very competent in that field. Providing training, especially in the field of IT which is a means of communicating and providing information to the public.

Price reaction in New Zealand’s duopolistic airline market

This study investigates the price reaction in a duopolistic market where two airlines (a full-service and a low-cost carrier) dominate the domestic aviation market. Utilising a rich dataset of 53,463 matched airfares for Air New Zealand and Jetstar in New Zealand from September to December 2019, we found a U-shaped relationship (from Jetstar to Air New Zealand) and an inverted U-shaped relationship (from Air New Zealand to Jetstar) between the two airfares. While distinguishing their different business models, such behaviour has not been empirically discussed in the literature. This study can be extended to larger and more complex markets.

Evaluation of air traffic in the context of the Covid-19 pandemic

The Covid-19 pandemic unexpectedly shook the entire global economy, causing it to destabilize over a long period of time. One of the sectors that was particularly hit hard was air traffic, and the changes that have taken place in it have been unmatched by any other crisis in history. The purpose of this article was to identify the time series describing the number of airline flights in Poland in the context of the Covid-19 pandemic. The article first presents selected statistics and indicators showing the situation of the global and domestic aviation market during the pandemic. Then, based on the data on the number of flights in Poland, the identification of the time series describing the number of flights by airlines was made. The discrete wavelet transformation (DWT) was used to determine the trend, while for periodicity verification, first statistical tests (Kruskal-Wallis test and Friedman test) and then spectral analysis were used. The confirmation of the existence of weekly seasonality allowed for the identification of the studied series as the sum of the previously determined trend and the seasonal component, as the mean value from the observations on a given day of the week. The proposed model was compared with the 7-order moving average model, as one of the most popular in the literature. As the obtained results showed, the model developed by the authors was better at identifying the studied series than the moving average. The errors were significantly lower, which made the presented solution more effective. This confirmed the validity of using wavelet analysis in the case of irregular behaviour of time series, and also showed that both spectral analysis and statistical tests (Kruskal-Walis and Fridman) proved successful in identifying the sea-sonal factor in the time series. The method used allowed for a satisfactory identification of the model for empirical data, however, it should be emphasized that the aviation services market is influenced by many variables and the fore-casts and scenarios created should be updated and modified on an ongoing basis.

Airfares Data in New Zealand Domestic Aviation Market

Price competition has been a growing concern of worldwide researchers and managers. In the aviation market, especially with the help from e-commerce platforms such as Expedia, TripAdvisor, and SkyScanner, airfares are now available to customers in the easiest and quickest way. It thus allows airlines to match their fares immediately and simultaneously upon any changes of their rivals, given that customer’ choices are made with regard to their incomes. This study provides a dataset on domestic airfares in New Zealand that could be useful for future studies in the fields of marketing, business and economics, transportation and aviation, or management. The dataset covers 12 trunk routes and 40 secondary routes in New Zealand from 19 September 2019 to 18 December 2019, a total of 90 days. It provides a rich dataset of more than 162,000 observations regarding the airfare, departure time, arrival time, flight duration, airline, departure airport, arrival airport, transiting airport, and so on. There are possibilities to extend the dataset (e.g., in terms of flying distance, airport characteristics, and airline characteristics) to make it be valuable for future study.

Enforcing China’s Anti-Monopoly law in regulated industries: a study of the airline industry

Abstract Since China enacted its Anti-Monopoly Law (AML) in 2007, foreign observers and business operators have constantly raised concerns as to whether the AML can inject a modern competition spirit into the world’s largest transitional economy or whether the AML will be overridden by policy objectives. These concerns become more obvious in industries that have been heavily regulated by the government. In this article, we choose the airline industry as a research target to explore possible ways to restrain industrial regulators from unduly interfering in competition and to reinforce the role of the AML. We focus on three kinds of administrative regulations in China’s domestic aviation market: limiting the threshold of market entry, price regulations, and subsidies. Then we analyse the policy objectives these regulations intend to achieve and their anti-competitive effects. Finally, we conclude with two suggestions from long-term and short-term perspectives: first, the newly established Fair Competition Review System (FCRS) should be effectively used to normalize and limit regulators’ policy-making authority. Moreover, the reviewing criteria should be made clearer and more meticulous to offer both FCRS reviewers and anti-monopoly agencies guidelines for assessing the effects of administrative behaviours on competition. Second, in the long term, industrial regulators are encouraged to set up competition-friendly industrial policies, embrace modern competition concepts in their traditional regulatory paradigm, and foster a competitive culture.

An Overview of the Aviation Industry in India with Special Emphasis on Privatization

Aviation industry in India is presently an expeditious growing industry in India visually perceived according to the report in the last three years. So, India is well-known as the third largest domestic aviation market in the world and is foreseen to be the third largest air passenger market by the end of 2024. To work toward the requirements of the flyers, Government of India is working toward incrementing the number of airports. In 2019, India is reported to have 103 operational airports, with a considerable increase in the airplanes too. The Indian government has plans to invest more to develop the aviation industry with various strategies. Although tremendous achievements are seen recently, still more gaps in development have to be filled. With the increased demand in air travel, India’s aviation industry by 2038 might need 2,380 new commercial airliners. In this paper, the aviation industry in India with special emphasis on privatization process is discussed and analyzed.

Post pandemic aviation market recovery: Experience and lessons from China

China was the first aviation market in the world hit hard by COVID-19 and has been recovering gradually as the pandemic became largely under control within mainland China. This study reviews the recovery pattern influenced by the Chinese government's aviation policy choices, in the hope that our discussions and findings will help improve aviation policy responses elsewhere. While the domestic market in mainland China has enjoyed a quick recovery to about 80% of the pre-crisis level by July 2020, the recovery of international services has been much slower, due to the bilateral route and flight frequency/capacity control and strict requirements for health check and quarantine. China's domestic aviation market was recovered by about 80% in two months after the pandemic became under good control. Most other countries with a “curve flattening” strategy, instead of full pandemic control, may not expect the fast recovery path China has achieved. A British “travel corridor” approach may be more practical for Western countries to follow, albeit more likely to be subject to serious setbacks and disruptions. The aviation fee reductions and cost support China and many other countries have been using are helpful by reducing airlines' marginal costs, but not sufficient for carriers to return to profitability or sustainable operations. Capital injection and/or credit guarantee may be needed for many airlines to survive. With various, often uncoordinated, regulations imposed in international markets, airlines based in open economies that have small domestic markets will face particularly serious challenges during the recovery process.

Entry pattern of low-cost carriers in New Zealand - The impact of domestic and trans-Tasman market factors

This study empirically examines the route entry decision of Jetstar NZ, a low-cost carrier (LCC), in New Zealand's duopolistic domestic aviation market between 2010 and 2016. The estimation controls for route characteristics, airline spatial network, and airline competition variables in both New Zealand's domestic market and the adjacent trans-Tasman markets linking Australia and New Zealand. The empirical results suggest that the favorable regional socioeconomic and tourism factors helped Jetstar NZ launch its service into a route. The LCC's entry decisions on domestic routes are not sensitive to airline competition within the same market but are influenced by the carrier's own operation and airline competition in the international Tasman market. Our study suggests that there are different sources of network effects for LCCs operating point-to-point travel demands. The "airline-in-airline" (AinA) strategy allows airlines (Jetstar and Qantas) within the same group to achieve certain synergy and competition benefits, but certain network effects can only be obtained between the same types of carriers. We also find preliminary evidence of spill-over effects, through which international liberalization influences competition in the domestic market.

Case on Leading Commercial Aircraft in the Brazilian Domestic Aviation Market

The Brazilian aviation market is the largest in Latin America, approximately $10 billion in revenues in 2018. Thus, the global leading commercial aircraft manufacturers compete vigorously for a larger share of the market. This article compared the performance of the leading airplanes in the domestic aviation market in Brazil, operated by the three major Brazilian airlines, through descriptive case study and market analysis on extensive archival research. Key findings pointed out the leaders within three categories: (i) more jumbo jets Airbus A320, and Boeing 737-800; (ii) c-series jets Embraer ERJ 195, and (iii) turbofan ATR-72 600, among the N=499 airplanes investigated within the three major airlines in Brazil, once the fourth competitor, Avianca Brasil, was suspended of all flights and operations by ANAC in April 2019, as a precautionary measure concerned with the safety of the operations, due to the company's filing bankruptcy. This work is useful to civil aviation managers, agents, decision-makers, students, academics, and overall practitioners. Discussion and future research compile the present article.

An Overview of the Aviation Industry in India with Special Emphasis on Privatization

The aviation industry in India is presently an expeditious growing industry in India visually perceived according to the report in the last three years. So, India is well-known as the third-largest domestic aviation market in the world and is foreseen to be the third-largest air passenger market by the end of 2024. To work toward the requirements of the flyers, Government of India is working toward incrementing the number of airports. In 2019, India is reported to have 103 operational airports, with a considerable increase in the aeroplanes too. The Indian government has plans to invest more to develop the aviation industry with various strategies. Although tremendous achievements are seen recently, still more gaps in development have to be filled. With the increased demand in air travel, India’s aviation industry by 2038 might need 2,380 new commercial airliners. In this paper, the aviation industry in India with special emphasis on the privatization process is discussed and analyzed.

The Evolution of China’s International Aviation Markets from a Policy Perspective on Air Passenger Flows

China’s international air transportation has experienced tremendous growth and major reforms over the past two decades. While there has been a considerable discussion on the evolution of China’s domestic aviation market, studies on China’s international aviation markets have been limited. This paper first describes the historical development of China’s international aviation market and then, based on actual origin/destination (O/D) passenger flow data, explores the relevant evolution of China’s international air networks from the perspectives of the spatial distribution of international air networks and clustering characteristics of international air passengers. The development of China’s international aviation market can be attributable to the deregulation process in China’s aviation market and a broad “opening up” strategy in the global forum after 1990. Due to China’s proximity to East Asia and Southeast Asia, China’s international air networks show an obvious clustering pattern for short and medium-haul travel in Asia. In addition, average international air travel distance, institutional and policy changes, and increasing foreign trade and foreign tourism are crucial for the expansion of China’s international air networks.

Antecedents of flight delays in the Australian domestic aviation market

Flight delays are widespread and growing around the world. Using public domain data of the airlines in Australia's domestic aviation market, this study investigates the antecedents of flight delays, and how airline operations contribute to such an important issue in the aviation industry. Applying the Hausman-Taylor regression method, the estimations suggest that the variables of the airline capacity decision are meaningful determinants of flight delays. Our findings inform that more frequent flights and larger aircraft are associated with more flight delays. A higher level of route congestion leads to more flight delays, especially for the low-cost carriers. Jet fuel price is identified as a driver, leading to more flight delays for the legacy airlines compared to the low-cost carriers. Keen competition between the airlines actually helps to improve the flight service quality, through fewer flight delays.

Simulating Airline Behavior: Application for the Australian Domestic Market

This paper demonstrates the ability of a model, which simulates competition between airlines in a domestic aviation market, to accurately reproduce real-world behavior. The Australian market was chosen as a test case as it is a geographically isolated region with significant demand and complexity, including one of the busiest routes in the world, where connecting international passengers do not significantly skew the market. The model is based on an n-player noncooperative game, in which each airline represents a player within the game. The primary assumption is that each airline attempts to maximize profits by adjusting the decision variables of airfares, flight frequency, and choice of aircraft on routes within its network. The approach works iteratively, allowing each airline to respond to the decisions made by other airlines during each successive optimization. The model is said to reach convergence when there is no significant change in any airline’s profit from one iteration to the next. Once this occurs, the predictions of each airline’s decision variables can be compared with real data. The model gives highly detailed predictions of airline specific airfares, flight frequencies on segments, passenger flows, and airline market share, which strongly correlate with observed values.

Airline capacity decisions under supply-demand equilibrium of Australia’s domestic aviation market

Australia is especially reliant on air transportation because of the geographical distribution of the urban centers across the country. This paper seeks to identify the antecedents of the capacity decisions of the airlines operating in Australian domestic aviation market. We examine the factors on both sides of the supply-demand equilibrium using monthly data of twenty-one major domestic routes linking eight major cities between January 2004 and December 2015. To investigate the relationship between flight demand and the variables of capacity decisions (flight frequency, aircraft size, load factor, and available seats), the pooled series cross-sectional data are analyzed using a two-stage least-squares method to model the supply-demand interaction. The results statistically differentiate the airlines’ strategies regarding capacity decisions for the short-haul, medium-haul, and long-haul routes. The results suggest that competition would lead to more flights, smaller aircraft size, lower load factors, and more available seats in all markets. Low-cost carriers play a key role in the short-haul market. Higher jet fuel prices scales up aircraft size on all flight routes. Notably, the socio-economic parameters of population and employment rates affect flight demand more strongly on the long-haul routes than other routes.

Economic Impact of FDI on Indian Aviation Sector

Success of any economy depends on the performance of service sector. Aviation is one of the fast growing service sectors which may pave way for economic growth and development for the developing countries. India is one among the world's fast growing domestic aviation market. It gains the 9th rank in the global aviation market and it is projected to be the 3rd largest by 2020 and largest by 2030. The current study focuses on the economic impact of FDI on Indian Aviation Sector. Chapter one provides basic idea about the Indian Aviation Sector. Chapter two enlists the review of literature. Chapter three envisages the need for the foreign investment in Indian Aviation. Chapter four narrates the role of FDI in aviation. Chapter five elucidates the SWOT analysis of FDI on Indian Aviation. The final chapter concludes the current status of Aviation sector along with the discussion for future studies.

Determinants of Air Passenger Flows in China and Gravity Model: Deregulation, LCC and High Speed Rail

This paper reviews the development of China’s air transport policy and examines the determinants of Chinese city-pair air passenger flows using a gravity model approach accounting for the effects of multilateral resistance. We find enormous positive impacts of both the continuing liberalisation of this industry and the low cost carriers (LCCs) in promoting bilateral traffic flows in China’s domestic aviation market. Local industry structures and high-speed rail (HSR) services also influence the volume of passenger movement. The challenge from HSR will be greater in the near future after the fast-expanding HSR network has connected most of the major cities.

Factors Influencing the Choice of Domestic Airlines in Chandigarh-An Empirical Study

The Indian aviation industry is one of the fastest growing aviation industries in the world with private airlines accounting for more than 75 per cent of the domestic aviation market (as of 2006). The industry is growing at a compound annual growth rate (CAGR) of 18 per cent. The country has 454 airports and airstrips, of which 16 are designated as international airports. All this has resulted into increasing the intensity of competition amongst air carriers in India. Delivering high quality service to passengers is important so that airlines can survive and strengthen their competitiveness. Service quality conditions influence an airline's competitive advantage and with this comes market share and ultimately profitability (Morash and Ozment, 1994). Airlines have responded to the competitive pressures in many ways, one of which has been service quality. It extends to in-fight service, reservation, ticketing, airport service, reliability, employee service, fight availability, passenger satisfaction, pricing (value), and airline image. This paper empirically examines the factors which influence the choice of airline in Chandigarh tri city.

The evolving landscape of Chinese aviation policies and impact of a deregulating environment on Chinese carriers

This paper examines the recent developments of China’s aviation polices focusing on airline consolidation, the opening up of the domestic aviation market, and the adoption of more liberal international aviation policy. It then goes onto assess the impacts of the above policies on the industry structure, the performance of major airlines, and the competitiveness of Chinese airlines in international markets. The study shows that the industry became more competitive following the opening up of the domestic aviation market. Although major airlines saw an increase in passenger volume and an improvement in load factors, the falling yield and rising costs make them difficult to grow profitably. Moreover, Chinese airlines largely failed to capitalise on building an international network and the majors were weak in international competition. Strategic use of aviation policy to build a strong and profitable airline industry is still a formidable task lying ahead for policymakers.

Economies of Traffic Density in Japanese Domestic Aviation Market

Economies of Traffic Density in Japanese Domestic Aviation Market