Low Carriers Research Articles

Leisure Travel: Implications for Airline Alliances

The rationale behind the formation of airline alliances includes the reaping of scale and scope economies and the acquisition of marketing and branding advantages. To really add value to the airline customer, however, alliances should consider the purpose of travel, i.e. they should appreciate and understand the derived nature of the airline product. The relevant literature seems to understate this issue or at best focus on business passengers. Given the rising importance of leisure travel and tourism in the world economy, its implications should be explicitly assessed. The emergence of low cost carriers and the subsequent simplifications in the holiday packages offered by charter airlines have played a major role in boosting leisure travel in Europe at least. Still, the intelligent management of frequent flyer programmes and the creation of a seamless network in long haul (or even intercontinental) air travel may induce leisure passengers to opt for an allied airline instead. This paper addresses the topic by undertaking primary research in the form of semi-structured interviews with airline executives and structured questionnaires addressed to passengers. The interviewees are supportive of the view that alliances of network carriers may offer benefits to leisure passengers although they do recognise the competitive threat posed by low cost carriers. Similarly, the statistical analysis of the questionnaire results reveals that frequent flyers and more affluent respondents are more knowledgeable about strategic alliances and have a tendency to prefer allied carriers for long-haul but not for short-haul flights. This outcome may add to the understanding of airline alliances and consumer behaviour and have important implications for airline strategy at a global level.

Inter-Satisfaction between Website and Automated Call Distribution (ACD) Systems

ABSTRACTWebsites and an Automated Call Distribution (ACD) system in a call center are both considered important customer relationship technologies. Integrating concepts from information systems quality and trust transference theory, this paper introduces the concept of inter-satisfaction: the extent to which customer satisfaction with a website leads to satisfaction with an ACD and vice versa. It is hypothesized that dissatisfaction with either the website or the ACD influences potential brand-switching behaviors. A model, largely drawing upon concepts of user satisfaction as developed in information system research, is presented. The model is then tested using data from passengers using Low Cost Carriers (LCCs) in South Korea, specifically 366 passengers at the Jeju International Airport, who experienced both their airlines’ website and call center. A structural equation modeling analysis demonstrates that satisfaction with the website transfers to satisfaction with the ACD system, but not vice versa, and that only dissatisfaction with the website creates a brand-switching intention.

The Competitive Effects of Low Cost Carriers in Korea: Focusing on Jeju Route

The Competitive Effects of Low Cost Carriers in Korea: Focusing on Jeju Route

An Empirical Analysis on How Low Cost Carrier Terminals Affect Low Cost Carrier’s Airfares with Data Based on Low Cost Carriers in Kuala Lumpur International Airport (KLIA)

An Empirical Analysis on How Low Cost Carrier Terminals Affect Low Cost Carrier’s Airfares with Data Based on Low Cost Carriers in Kuala Lumpur International Airport (KLIA)

Airline Service Quality Development

As the recent emergence of the Low Cost Carriers(LLCs) in Air-line industry, service differentiation and customer satisfaction takes critical role in order to sharpen competitive edges to both Full Service Carriers(FSCs) and LLCs. The current research aims to explore the nature of service quality in airline and its relationship to customer satisfaction. Air service quality dimensions using factor analysis are classified as Ticketing and Boarding Processes, Customer Encounter Services, and Tangibles. Further, the regression analysis reveals the strength of relationships between each of service quality dimensions and customer satisfaction scales that the Ticketing and Boarding Process dimension has the strongest co-relations with customer satisfaction scales.

저탄소 운항절차에 따른 연료절감 효과분석

The amount of greenhouse gas (GHG) emissions has been increasing steadily over the last 4 years, averaging 6.8 percent a year, due to the growth of low cost carriers and the increased demand for air transportations. For the aviation GHG reduction, various fuel saving activities are implemented in many areas such as high-efficiency aircraft and bio-fuel development in the technical part and low carbon flight procedures, short cut route development in the operational approach. Among the various reduction technologies, we focused on low carbon flight procedures that are crucial to GHG reduciton and suggested a reduction effect according to target implementation rate using by fuel saving estimation data in each aircraft type.

Changing Business Models: How Traditional Airlines Address the Challenge of Low Cost Carriers

In recent years, the notion of business models has gained momentum in management research. Scholars have discussed several barriers to business model change in established firms. However, national institutions of market economies have not yet been discussed as barriers although they can constrain the leeway of firms. To investigate this topic, we compare how established airlines in different types of market economies, Lufthansa in Germany and British Airways in the UK, address the challenge of low-cost carriers. We show that industrial relations institutions have a significant effect on how and to what extent established airlines change their business model.

An Importance–Performance Analysis of Low Cost Carriers in Asia

This article investigates the degree of importance and performance of 11 attributes of short- and long-haul low-cost carriers (LCCs) in Asia. Results find that airfare and perception of safety are considered as the most valued attribute for short-haul LCCs and long-haul LCCs, respectively. The importance-performance analysis also reveals that LCCs should “keep up the good work” in areas such as timetable schedules, perception of safety, airfare, and punctuality. It is also found that more efforts should be devoted in rectifying the misconception of low-cost, low quality and reinforcing an image of low-cost, high quality.

Perceived service quality for South Korean domestic airlines

Perceived service quality (PSQ) has been shown to influence satisfaction, loyalty, and other important outcomes, specifically in a competitive environment and is also one of the foremost reasons for choosing an airline. The purpose of this study is to evaluate the difference in PSQ between full service carriers (FSCs) and low cost carriers (LCCs) in the South Korean domestic airline market, which has become more competitive due to the emergence of multiple LCCs. The results showed that PSQ of LCCs is lower than FSCs in terms of the rank of dimension although the trend was surprisingly similar. Moreover, the relationships between service quality dimensions and demographic factors were significantly different between the two types of carriers. These results suggest that new entrants in South Korea should have their own distinguishable service strategy from the FSC.

Airline Alliances with Low Cost Carriers

A major carrier operates one hub linking multiple non-hub cities. It forms an alliance with a low cost carrier whose nonstop service competes with its one-stop service. The alliance’s joint profit is maximized by withdrawing the competing one-stop (nonstop) service when the major carrier’s operating cost and connecting passengers’ hub-through additional time costs are large (small). The realized alliance is welfare-improving (welfare-decreasing) when these costs are large or small (intermediate). These findings suggest the necessity of alliance regulation. In some regions, the necessity of regulation does not monotonically change as the network size increases.

Complexes of aminoglycoside antibiotics with copolymers of acrylamide with acrylic and methacrylic acids

Aminoglycoside antibiotics are structurally related substances with high levels of antimicrobial activity with wide spectra [1]. However, they are characterized by marked toxicity, particularly oto- and nephrotoxicity, when used therapeutically, and can produce neuromuscular blockade. The use of aminoglycoside antibiotics in clinical medicine therefore requires constant monitoring of blood peak and trough concentrations, which is a major hindrance. This raises the question of decreasing the toxicity of aminoglycoside antibiotics. One effective means of reducing the toxicity of ionogenic biologically active substances (BAS) without loss of biospecific activity is to complex them with nontoxic polyelectrolytes. The literature contains descriptions of water-soluble polymer complexes of kanamycin and gentamicin based on carboxymethyl and sulfopropyl esters of dextran which have high activity, though their toxicological characteristics were not reported [4]. The aim of the present work was to prepare and study the physicochemical, toxicological, and antimicrobial properties of complexes of aminoglycoside antibiotics with synthetic low molecular weight anionic copolymer carriers. Water-soluble copolymers of acrylamide (ACR) with acrylic (AA) and

A comparative analysis of restructuring employment relationships in Qantas and Aer Lingus: different routes, similar destinations

This paper examines the experiences of Qantas and Aer Lingus. The two companies have a shared history as national, ‘legacy’ (full-service) carriers and strategically important, ‘benevolent’ employers. More recently, both airlines have been forced to change in the face of competition from low cost carriers (LCCs) and external threats to their existence. In this paper, we examine how the two airlines have reacted to these pressures. We look at the role played by institutional frameworks and competitive circumstances in determining industrial relations strategies. The entry of LCCs and changes (or potential changes) to ownership structures through privatization and takeover bids have led to downward pressure on pay and conditions at both airlines. Accordingly, a key issue considered is whether a collectivist model of employment relations can survive in the face of low cost competition.

Effects of Low Cost Airlines on Efforts to Develop Cultural Heritage Tourism

ABSTRACT Like many Mediterranean destinations, Malta is aiming to realign its tourism product from packaged ‘sun and sea’ holidays towards cultural/heritage tourism. In 2006 it offered incentives for low cost carriers (LCCs) to commence operations from its only international airport. The aim of this paper is to establish whether these new services will help Malta to generate ‘city break’ tourism in historic urban waterfronts. Analysis is conducted using a series of secondary data sets, including surveys of LCCs' passengers conducted during the first nine months of operations. Findings indicate that LCCs helped to generate more arrivals to Malta in 2007. But, rather than being more motivated by history and culture, LCC passengers are still primarily motivated by climate. This reaffirms findings from research into comparable destinations that suggests LCCs may merely displace existing charter custom, rather than generating new demand from city break tourists.

Policy Implication for Korean Low Cost Carriers’ Development through the Performance Analysis

Policy Implication for Korean Low Cost Carriers’ Development through the Performance Analysis

Performance improvement possibilities within the US airline industry

PurposeThe purpose of this paper is to analyze some of the issues US airlines are facing to control costs and improve operations.Design/methodology/approachA detailed comparison of two major airlines (American Airlines and Southwest Airlines) is performed to identify key differences and to confirm the areas on which airlines need to focus improvement efforts. Cause and effect diagrams are used to identify the factors triggering the issues. Process analysis is also used to offer improvements to reduce costs and improve customer service. Analysis is based on publicly available airline and industry information.FindingsRevenue, costs, growing economic concerns and an extremely competitive environment are the major areas on which airlines need to focus to be successful. Recommendations are offered in these areas. Owing to the impact of the internet and travel consolidators such as Expedia, revenue increases are challenging, but suggestions are tendered to improve this area.Originality/valueThe study may cause airline management to consider the operational improvement possibilities that are still available within their industry. Be they major network carriers or growing low cost carriers, potential opportunities are identified for improved operational profitability, while maintaining and enhancing customer service. The use of process analysis can provide insights into the inefficiencies which exist within current processes and place more emphasis on demand pull type processes which require forecasting operational schedules.

Mortality in Patients Coinfected with Hepatitis B Virus and HIV: Could Antiretroviral Therapy Make a Difference?

risk of mortality attributable to HIV-HBV coinfection and the impact of coinfection on HIV disease progression. In the combined analysis of 12,382 patients, they found an excess risk of all-cause mortality attributable to the effect of HIV-HBV coinfection (pooled effect estimate, 1.36; 95% CI, 1.12‐1.64). They did not, however, find an increased risk of AIDS progression or decreased efficacy of highly active antiretroviral therapy (HAART) among patients who had hepatitis B surface antigen detected. The limitations of their analysis include the addition of publications from Asia, in which the mode of transmission (vertical or childhood) and type of HBV genotypes (genotype B and C) are very different from those in Western countries [9]. Differences in the duration of infection and HBV genotype may present a risk of death that varies from that in Western countries [10]. However, the authors did perform a sensitivity analysis to examine the impact of specific publications on overall risk. Another limitation of the meta-analysis is the lack of HBV load data, which makes it difficult to determine if individuals with high HBV loads were at increased risk of liver disease progression, compared with those with low HBV loads or inactive carriers who may not have been at risk at all. Additionally, it is unknown what proportion of the HIV-HBV‐coinfected population also was infected with hepatitis C virus (HCV) or had diabetes or other comorbidities that might have affected risk of death. Regardless of the study’s limitations, these findings are important because they establish that HBV, which is a vaccinepreventable disease, is associated with an excess risk of all-cause mortality. In light of these findings, there needs to be a renewed focus on the prevention of HBV infection in adults. The incidence of acute

Competing in an LCC world

The way in which low cost carriers price their product and revenue manage their flights has posed a commercial challenge to their traditional competitors, and also questions the validity of the conventional airline revenue management theory and practice. This paper examines how they differ in their approach, how airlines are responding and what constitutes an effective response in the changed airline business world. This includes consideration of all the marketing levers (product, price, promotion and distribution) in an integrated way, as well as developments needed in the core revenue management systems themselves.

Assessing the Performance of Airline Web Sites

This case takes place in the increasingly competitive environment of the airline sector.Airline websites and Internet-based booking systems enable transformation of airline operations and become strategic weapons for the majority of airlines worldwide. Established airlines are attempting to stimulate customers to use the Internet, in response to entry of low cost carriers that capture shares of their market and in order to reduce their sales costs. Nonetheless, the development and maintenance of websites and e-commerce platforms requires substantial investments in capital and labor. Therefore, airlines need to assess the performance of their e-commerce channels in terms of profitability, customer appreciation and volume of sales on a continuous basis. However, the design of an assessment model that can serve the managers of ARTFLY, one of the established airlines in the industry that deals with the recent challenges of the intensifying competition, is open for a wide variety of interpretations and should be determined due to the firm’s nature of operations and due to its aim to increase the volume of its online sales.

Competition and Competition Policy in the Trans-Tasman Air Travel Market

New data on air fares offered on 29 trans-Tasman and domestic New Zealand routes are analysed to test whether competition between traditional or ‘legacy’ airlines still matters for pricing in the new air travel regime characterised by internet booking systems and competition from low cost carriers. It is found that market structure does indeed still matter. Air fares are significantly lower on those domestic New Zealand routes where Air New Zealand faces competition from Qantas. In addition, on the trans-Tasman routes, the new entrants Virgin (Pacific) Blue and Emirates have put competitive pressure on Air New Zealand and Qantas, but such pressure would not be sufficient to compensate for loss of independent competition between the larger incumbents.

High-Speed Rail & Air Transport Competition: Game Engineering as Tool for Cost-Benefit Analysis

This paper develops a methodology to assess transport infrastructure investments and their effects on a Nash equilibria taking into account competition between multiple privatized transport operator types. The operators, including high-speed rail, hub and spoke legacy airlines and low cost carriers, maximize profit functions via prices, frequency and train/plane sizes, given infrastructure provision and costs and environmental charges. The methodology is subsequently applied to all 27 European Union countries, specifically analyzing four of the prioritized Trans-European Networks.