scholarly journals Determinants of financial distress in the European air transport industry: The moderating effect of being a flag-carrier

PLoS ONE ◽  
2021 ◽  
Vol 16 (11) ◽  
pp. e0259149
Author(s):  
Yin Shi ◽  
Xiaoni Li
Keyword(s):  
Financial Distress ◽  
Financial Stability ◽  
Negative Influence ◽  
Air Transport ◽  
Transport Sector ◽  
Aviation Industry ◽  
Air Transport Industry ◽  
Low Efficiency ◽  
And Performance ◽  
The Impact

Due to the COVID-induced global collapse in demand for air travel, the year 2020 was a catastrophic one for the aviation industry. A dramatic drop in operating revenues along with continuing fixed expenses drained the cash reserves of airlines, with consequent risks of financial distress and, potentially, even of bankruptcy. Flag-carriers are a special group in the airline business—they are considered to have privileges in terms of the support given by governments while, on the other hand, are often viewed as having low efficiency and performance. This study aims to estimate for European airlines the interaction effect of being a flag-carrier (flagship) with the relationship between leverage, liquidity, profitability, and the degree of financial distress. Findings obtained from analysing 99 European airlines over a period of ten years, indicate that the negative influence of leverage on financial stability is higher in the case of flag carriers (flagship). The impact of liquidity and profitability on financial health is more positive for flagship than for non-flagship carriers. These findings are not limited to contributing to the existing literature, but also have significant practical implications for executives, managers, and policy makers in the European air transport sector.

scholarly journals Uzbekistan’s Development under the Leadership of Various Political Reforms: The Case of Air Transport Industry

2021 ◽  
Vol 15 (1) ◽  
pp. 160-169
Author(s):  
Sarvar Khalikov ◽  
Wei Liu ◽  
Madina Turaeva ◽  
Liliya Achilova
Keyword(s):  
Soviet Union ◽  
Large Scale ◽  
Russian Language ◽  
Air Transport ◽  
Transport Sector ◽  
Aviation Industry ◽  
Policy Reforms ◽  
Political Reforms ◽  
Air Transport Industry ◽  
New Perspective

The First President of Uzbekistan, Islam Karimov, continued to isolate the country for many years even after the collapse of the Soviet Union in 1991, which in turn worsened all the strategic sectors in the country, especially the aviation market and tourism industries. However, in the period 2017-2018, the skyrocket in the number of tourists, from 2.69 million to 5.34 million, became possible due to the coming of Shavkat Mirziyoyev to power as the new President. But the lack of air connectivity kept reducing aspiration of traveling from non-CIS countries. To solve the issue, the new President Mirziyoyev’s large-scale policy reforms concerned the air transport sector, too. The main objective of the study is to compare the development of the country under the leadership of various political reforms using the aviation industry of Uzbekistan as an example. To achieve the purposes, the authors examine reciprocal action/influence between airlines, airports and government. In addition, a significant amount of data was collected from Russian-language sources to enrich the content. Even though the paper was written before the COVID-19 pandemic, the authors' research is still important to nudge readers into a new perspective.

scholarly journals The Impact of Deregulation and Liberalization in the Nigerian Air Transport Industry: An Overview

2011 ◽  
Vol 2 (1) ◽  
pp. 50-68
Author(s):  
Adeniyi Olufemi Oluwakoya
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Air Transport ◽  
Aviation Industry ◽  
Infrastructure Development ◽  
Air Transport Industry ◽  
Transport Industry ◽  
External Sources ◽  
And Control ◽  
The Impact

The effect of globalization is fast showing its attendant effects on the Nigerian aviation industry leading to an increase in passengers’ traffic movement in Nigeria’s airports. More importantly, there seems to be a paradigm shift which affects ownership and administration of operation in the Nigerian aviation industry. This study examines among others the impact of deregulation and liberalization in the Nigerian air transport industry; the effects of the latter on operation and control changes that affect operational efficiency in the airline business; and the impacts of liberalization on attracting foreign direct investment and foreign airline participation in the Nigerian aviation industry. The methodology used for this study is documentary research, which entails search of existing published and unpublished documents and databases of stakeholders in the Nigerian aviation industry and external sources with affinity to the sector. The results of this study reveal that an unprecedented growth has been recorded in Nigeria. It includes among others: healthy competition needed for growth and development; increased participation in the industry by foreign airlines; increased foreign direct investment in the airline business and airport infrastructure development.

scholarly journals External Economic Effects of Air Transport Development due to the Liberalization

2021 ◽  
Vol 23 (3) ◽  
pp. A158-A173
Author(s):  
Oksana Ovsak ◽  
Maryna Vysotsʹka
Keyword(s):  
Strong Dependence ◽  
Economic Effects ◽  
Air Transport ◽  
Transport Sector ◽  
Transport Services ◽  
Air Transport Industry ◽  
Transport Industry ◽  
The Impact ◽  
The Relationship ◽  
Further Development

The paper is devoted to research of the impact of gradual liberalization of aviation market on the country’s air transport industry development and on formation of external economic components of the country's GDP connected to it directly: export and import of air transport services. The study of the relationship between the operation indicators of air transport and formed external economic effects has been conducted using comparative, correlative and regression analysis based on the statistical data of Ukraine, which has its own air transport industry and is on the path of aviation liberalization. A strong dependence of the export of air transport services on the total number of international flights and its passengers was revealed. This determines the feasibility of tracking the external economic effects in the design of changes on directions and means of further development of country's air transport sector.

scholarly journals Dampak Ekonomi Dan Positioning Pada Beberapa Maskapai Penerbangan Dalam Negeri

2019 ◽  
Vol 24 (6) ◽  
pp. 580
Author(s):  
Suryadi Suryadi
Keyword(s):  
Development Planning ◽  
The Other ◽  
Air Transport ◽  
Oil Refining ◽  
Transport Sector ◽  
Aviation Industry ◽  
Load Factor ◽  
Input Output ◽  
Biplot Analysis ◽  
The Impact

The problem often encountered in the development planning is the difficulty of measuring on the economic impact that occurs in other sectors, as a result of the growth of air transport. On the other hand, the policy of deregulation in the airline business makes no more barriers for new airlines to enter the aviation industry making competition more competitive. The method of research used was the data of Input-Output Tables of Indonesia in 2008 and biplot analysis. The results showed that an increase in the growth of air transport, the impact on growth in air transport itself with multiplier (1.71), the oil refining industry with multiplier (0.11), the services sector with multiplier (0.10), the other industries sector with multiplier (0.08), the transport sector industries with multiplier (0.07) as well as trade sector with multiplier (0.06). Through biplot analysis is known that Lion Air forms a cluster. The cluster is characterized by a variable of passenger transported (pnp_diak), the plane departed (pes_brk) and load-factor of passenger (lf_pnp). A cluster that has the advantage of variable of km-plane (km_pes) is Garuda Indonesia Airline and Batavia Air in 2010. A cluster that has the advantage of variable of load/actor of goods transported (lf_brg) is Merpati Nusantara Airline and Sriwijaya Air.Keywords: Multiplier, passengers transported, miles-plane, the plane left and aircraft flight hours Masalah yang sering dihadapi dalam perencanaan pembangunan yaitu sulitnya mengukur dampak ekonomi yang terjadi pada sektor-sektor lainnya, sebagai akibat pertumbuhan angkutan udara. Pada sisi lain, kebijakan deregulasi pada bisnis penerbangan membuat tidak ada lagi hambatan bagi maskapai penerbangan baru untuk masuk ke industri penerbangan sehingga persaingan usaha semakin kompetitif. Metode penelitian menggunakan data Tabel Input-Output Indonesia tahun 2008 dan biplot analisis. Hasil penelitian menunjukkan bahwa peningkatan pertumbuhan angkutan udara, berdampak pada peningkatan pertumbuhan angkutan udara itu sendiri dengan multiplier (1,71), sektor industri pengilangan minyak dengan multiplier (0,11), sektor jasa-jasa dengan multiplier (0,10), sektor industri lainnya dengan multiplier (0,08), sektor industri angkutan dengan multiplier (0,07) serta sektor perdagangan dengan multiplier (0,06). Melalui biplot analisis diketahui bahwa maskapai penerbangan Lion Air membentuk satu klaster. Klaster tersebut dicirikan oleh variabel penumpang diangkut (pnp_diak), pesawat berangkat (pes_brk) dan load faktor penumpang (lf_pnp). Anggota kluster yang memiliki keunggulan pada variabel km-pesawat (km_pes) adalah Garuda Indonesia Airline dan Batavia Air tahun 2010. Anggota klaster yang memiliki_keunggulan pada variabel load faktor barang yang diangkut (lf_brg) adalah Merpah Nusantara Airline dan Sriwijaya Air. Kata kunci : Multiplier, penumpang diangkut, km-pesawat, pesawat berangkat dan jam terbang pesawat

Can Corporate Social Responsibility Decrease the Negative Influence of Financial Distress on Accounting Quality?

2021 ◽  
Vol 13 (19) ◽  
pp. 11124
Author(s):  
Jun Hyeok Choi ◽  
Saerona Kim ◽  
Dong-Hoon Yang ◽  
Kwanghee Cho
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Financial Distress ◽  
Negative Influence ◽  
Accounting Quality ◽  
Distressed Firms ◽  
Corporate Social ◽  
The Impact ◽  
Positive Effect

This study aimed to test how corporate social responsibility (CSR) can affect the impact of corporate financial distress on earnings management. Based on the existing literature, distressed firms tend to hide their financial crises through earnings manipulation. However, as CSR can positively affect companies in terms of performance, risk reduction, and market response, the better a firm’s CSR is the less managers will attempt earnings management even if they experience temporary distress. Consistent with the literature, test results using Korean-listed companies show that distress increased earnings management, and we confirmed that CSR weakened the positive effect of distress on earnings management. After testing each of the CSR subcategories, significant results were found mainly on environmental performance, reflecting the globally increasing interest in environmental issues. This study contributes to the literature on distress and earnings management, which rarely considers CSR as a moderating factor.

scholarly journals Competition, performance and financial stability in US agricultural banking

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhav Regmi ◽  
Allen M. Featherstone
Keyword(s):  
Market Power ◽  
Financial Stability ◽  
Relationship Lending ◽  
Net Income ◽  
Bank Competition ◽  
Content Type ◽  
Linear Effect ◽  
And Performance ◽  
The Impact ◽  
Agricultural Banking

PurposeThe number of US commercial banks has declined by about 50% over the last two decades. This change could lead to a potential decline in competition and a potential increase in market power in the agricultural banking market. The focus of this study is to examine whether the risk of failure and the performance of agricultural banks has been affected by bank consolidations.Design/methodology/approachThe impact of bank competition on performance and financial stability of agricultural banks is studied using a Lerner index as a measure of market power. A Z-score is constructed to measure bank stability. Similarly, the return on assets (net income to total assets ratio), return on equity (net income to the total equity ratio), agricultural loan ratio and agricultural loan volume are used as performance measures for agricultural banks. Two-way fixed effect regression models are estimated to measure the impact of competition on financial stability and performance.FindingsResults indicate that bank competition has a U-shaped effect on the probability of default and an inverted U-shaped effect on volume and proportion of agricultural lending. There also exists evidence of a positive but non-linear effect of bank market power on the profitability of agricultural banks.Originality/valueThere is limited literature on the impact of bank competition on financial stability and performance of US agricultural banks. Agricultural banks hold more than 40% of US farm debt. A decrease in the number of banks or the level of competition in agricultural banking may cause an adverse effect on relationship lending. The key findings imply that bank regulatory strategies should focus on enhancing (reducing) competition in more (less) concentrated banking markets to improve the financial health and performance of agricultural banks.

scholarly journals Study on Arrival Aircraft Sequencing Based on Optimization of Point Merge Procedure

2021 ◽  
Vol 2021 ◽  
pp. 1-19
Author(s):  
Yong Tian ◽  
Can Xu ◽  
Mengyuan Sun ◽  
Chao Li ◽  
Ruofei Sun
Keyword(s):  
Optimization Model ◽  
Traditional Approach ◽  
Operational Efficiency ◽  
Air Transport ◽  
Air Traffic Controllers ◽  
Air Transport Industry ◽  
Set Up ◽  
The Impact ◽  
Terminal Area ◽  
Approach Route

With the air transport industry developing dramatically, the problem of flight congestion in the terminal area (TMA) has been aggravated. Particularly for arrival aircraft, the extraholding and delay not only increase the workload of air traffic controllers and aircrew but also reduce the operational efficiency. To struggle with this issue, it is crucial to study how to improve the operational efficiency of arrival aircraft. Under the background of the rapid promotion of Point Merge (PM) procedure program in the busy TMAs in the world, this paper firstly combines the optimization of PM procedure and arrival aircraft sequencing, aiming to maximize the operational benefits of arrival aircraft in TMA. Firstly, the framework of the PM procedure is set up to replace the traditional approach route known as Standard Instrument Arrival (STAR). After that, the PM procedure optimization model is established to provide a better approach route for each arrival aircraft. Then for a flow of arrival traffic, an aircraft sequencing model is established to readjust the landing sequence of arrival aircraft, thus further improving the operational benefits of arrival aircraft. Finally, taking the TMA of Shanghai Hongqiao International Airport as the case, we compare the impact of different flight procedures and different landing sequences on the operational benefits of arrival aircraft. The experimental results show that the application of the PM procedure optimization model and sequencing model can effectively improve the operational benefits on the premise of ensuring safety, thus realizing the safe and orderly approach in TMA.

scholarly journals Impact of Financial inclusion and financial stability: Empirical and theoretical review

2021 ◽  
Vol 5 (1) ◽  
pp. 514-527
Author(s):  
Asghar Kamal ◽  
Talat Hussain ◽  
Muhammad Mahmood Shah Khan
Keyword(s):  
Financial Stability ◽  
Research Work ◽  
Negative Influence ◽  
Financial Inclusion ◽  
Efficient Management ◽  
Research Article ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship ◽  
Research Studies

The foremost objective of the recent research work is to review the connection among the financial inclusion (FI) and banks financial stability (FS). The research article survey a vest body of literature devoted to evaluating the relationship of among the FI and FS of the banks. The literature review evaluates recent empirical research studies on the impact of FS and banks FS. The research works divided into following part (i) What is financial inclusion (FI) (ii) What is stability (FS) (iii) the influence of FI and FS (iv) FI measurement and indicator (v) whether FI lead to enhance the FS. This paper present the relevant review of imperialistic research on the nexus among the influence of FI on FS since the period of 1995-2020. Abundant research studies to date suggest that FI has positive and significant impact on FS of the banks.  While few other research study also reveals that when FI have negative influence on the FS is due to the without having efficient management when the credit is expanded in this time it will increase the risk for financial stability.

Possibilities and limitations of the use of bankruptcy prediction models for insolvency prevention

2021 ◽  
pp. 73-94
Author(s):  
Olga Lvova
Keyword(s):  
Financial Reporting ◽  
Financial Distress ◽  
Financial Stability ◽  
Prediction Models ◽  
Organizational Factors ◽  
Bankruptcy Prediction ◽  
Operating Conditions ◽  
Advantages And Disadvantages ◽  
Qualitative Variables ◽  
The Impact

The paper provides the solution to the problem of an integrated classification of existing bankruptcy prediction based on the content analysis of 270 relevant foreign and Russian publications issued within a period of 1910-2020. The author identifies two main groups of models– normative and positive, with the latter categorized into expert, mixed and objective including traditional statistical models and artificial intelligent techniques; and considers the specific features of certain predicting models, their advantages and disadvantages. He then reveals the economic content of such models and the set of ratios applied for identifying company’s financial distress with the following conclusions: approaches to the variables selection are rarely justified, indicators are usually borrowed from previous models or generated automatically by the database configuration; the accounting approach to bankruptcy forecasting based on financial ratios prevails and has serious limitations for Russian companies; the most significant market, value and qualitative variables indicating a decline in the business financial stability are highlighted. Significant limitations of the general use of bankruptcy prediction models for making decisions aimed at insolvency prevention are identified: the inability to anticipate the impact of informal factors that are irregular, unable to extrapolate, and affect companies in different ways; the need to take into account the economic conditions of the national economy, financial reporting standards, and the level of availability of diverse data; the impossibility of creating a universal indicative basis to identify decline of sustainability of any business due to the high volatility of operating conditions in Russia. Bayesian methods and nowcasting, as well as the development of forecasting models for certain industries, are promising areas for the development of modern approaches to bankruptcy prediction, but the fundamental activity for preventing insolvency is not forecasting by models, but the implementation of continuous monitoring of the overall business performance in relation to influencing market, operational, investment, financial, managerial and organizational factors, taking into account significant qualitative variables.

International air transport demand: drivers and forecasts in the Indian context

2014 ◽  
Vol 9 (3) ◽  
pp. 245-260 ◽  
Author(s):  
S. Srinidhi ◽  
Ajay K. Manrai
Keyword(s):  
Route Planning ◽  
Air Transport ◽  
Aviation Industry ◽  
Content Type ◽  
Macroeconomic Conditions ◽  
Indian Context ◽  
Air Transport Industry ◽  
The Usa ◽  
Exponential Smoothing Method ◽  
Macroeconomic Environment

Purpose – This paper aims to provide a framework for the airlines to forecast demand, specifically on international routes operated from major metros of the USA and position their services by designing the service positioning matrix. Major benefits include route contemplation, effective fleet scheduling, decisions on aircraft and fuel purchases and developing optimal fare policies. Much effort has been directed to developing forecasts of air transport demand, particularly by airline companies and professional bodies in the air transport industry. However, detailed analysis of the characteristics of demand for air transport over long-haul or international routes is less researched. Design/methodology/approach – Major methodologies used were regression, time series analysis – Holts’ exponential smoothing method. Two econometric models are formulated that capture the direct and indirect drivers of airline demand in the Indian context. Forecasts of demand are made over the next seven years until 2020. Findings – It is interesting to find that demand not only is influenced by direct parameters such as population- and behavior-oriented parameters such as income, but the macroeconomic environment of the country concerned also plays a major role in demand origination. Variables like investment, gross domestic product, etc. contribute a lot in terms of international airline demand. It is also expected that in the Indian context, demand is on a spike path over the next seven years considering the macroeconomic environment and other general economic conditions. Research limitations/implications – This paper is developed and applied in the Indian context. Results may change when applied to different countries depending on their macroeconomic conditions. Practical implications – This study will be useful for any airline in route planning, and in formulating major policy decisions. Other benefits include effective fleet scheduling, decisions on aircraft and fuel purchases and developing optimal fare policies. Originality/value – This paper adds to the existing literature by developing two demand drivers’ models in the Indian context. It is first such attempt to analyse the Indian aviation industry ever since the Indian economic liberalization in 1991. Forecasts provided yield major benefits for airlines operating to and from India.

Sign in / Sign up

Export Citation Format

Share Document