scholarly journals Impact of COVID-19 on airline industry and strategic plan for its recovery with special reference to data analytics technology

2021 ◽  
Vol 7 (1) ◽  
pp. 033-046
Author(s):  
Rajee Olaganathan

This paper discusses the status quo of the airline industry around the world facing the COVID-19 pandemic situation. The purpose of the first part of this study was to assess the impact of COVID-19 on global air traffic, airline revenues by region of operation, number of international passengers by region, and the number of domestic passenger traffic by route group. The data for this study was collected from January 2019 to December 2020 from the International Civil Aviation Organization (ICAO) database. The research strategy of the second part of this study is based on PEST analysis which is applied to evaluate the current situation of the airline industry. Based on the findings, this paper suggests strategies and recommendations for the airline industry to adapt to the pandemic situation based on technology aspects more specifically related to data analytics with a multi-step approach for COVID-19 Airline Recovery Plan. The results and recommendations of this research study will provide valuable information to the aviation industry for its preparedness for the Post-COVID-19 era.

2021 ◽  
Vol 6 (3) ◽  
pp. 001-013
Author(s):  
Rajee Olaganathan ◽  
Roli Angelo H Amihan

Pilot proficiency is essential in the aviation industry to maintain a safety record for successfully operating airlines. The current COVID-19 scenario has made it practically difficult for pilots to achieve the federal requirements stated in Title 14 CFR 121.439 (a) and 14 CFR 61.57 (a) (1). It has placed a burden on pilots to maintain their currency and proficiency related to cost and lack of aircraft access due to furloughs and lay-offs. The purpose of the first part of this study was to assess the impact of COVID-19 on global air traffic based on the data collected from the International Civil Aviation Organization (ICAO) and the U.S. Bureau of Transportation Statistics (BTS). The second part of this research study aims to assess the pilot’s proficiency before and after COVID-19 was officially declared as pandemic to identify any threats to aviation safety based on the incident reports submitted in the Aviation Safety Reporting System. The findings show that the highest reduction in flight operations was observed during May 2020 with -70.67 % compared with May 2019 at the global level. Middle East region witnessed a -57.35 % reduction in flight operations. Based on the number of flights operated in the year 2020, the Asia-Pacific region was the most affected region with 4,913,303 fewer flights than in the year 2019. For the U.S. domestic air traffic, a severe impact occurred in May 2020 with a -70.88 % reduction and 532,834 fewer flights than in May 2019 which was similar to the global air traffic trend. The number of incident reports filed by pilots regarding proficiency-related to COVID-19 issues in the ASRS data analysis increased by 1000% during this pandemic period. The results and recommendations of this research study will provide valuable information to the aviation industry that can aid in developing mitigation measures to decrease future aviation accidents related to pilot proficiency.


2020 ◽  
Vol 17 (4) ◽  
pp. 859-873
Author(s):  
E. V. Varyukhina ◽  
◽  
V. V. Klochkov ◽  

The purpose of this study is to analyze standards as one of the main tools of protectionism in global markets of industrial goods. We use standards for modeling of market competition and adapt this approach for civil aviation markets. The role of local noise standards in civil aircraft markets is discussed. Imposition of more stringent aviation noise standards is modelled in the form of a two-person non-zero-sum game. Players are aircraft corporations that conduct research and development to reduce noise and lobby for stricter regulations in their controlled markets. The model can be used to predict that tighter aviation noise standards will be imposed and to justify the strategy of Russian aviation industry and science. The proposed approach can be adapted for other industries with strict regulations (in terms of safety, ecology). Such estimation allows us to assess whether it is in the country’s interests to participate in the standards race or not. It is shown that the equilibrium degree of standards tightening is higher if the players’ market shares are close to equal or individual players have advantages in the cost of production and/or product improvement is highly likely due to the company’s R&D progress.


2016 ◽  
Vol 11 (1) ◽  
pp. 41-53 ◽  
Author(s):  
Maxwell Sandada ◽  
Bright Matibiri

Abstract This study aims to identify the factors that make passengers loyal to an airline in Southern Africa by investigating the impact of service quality and safety perception on customer satisfaction and how satisfaction and frequent flyer programs (FFP) subsequently influence customer loyalty. The key finding was that service quality positively influenced customer satisfaction, and satisfaction was an important antecedent of customer loyalty. The analysis also suggested that safety perception and FFP positively influence customer loyalty, while their relationship with satisfaction was not significant. An analysis of switching behaviour revealed that satisfied customers may still switch to other airlines. The main contribution of this study is the development of a customer loyalty model for the aviation industry in Southern Africa. Knowledge of customer loyalty drivers will assist airline marketing managers in developing strategies for improving passenger load factors and profitability.


2021 ◽  
Vol 3 (2) ◽  
pp. 130-147
Author(s):  
Hande Sahin ◽  
Ali Osman Kusakci ◽  
Baboucarr Mbowe

Customer Loyalty Programs are one of the handiest tools to raise brand awareness, and secure long-term and strong ties between a brand and existing consumers. Airline companies have been using frequent flyer programs (FFPs) to retain customers with the expectation of increasing passengers’ loyalty levels. The purpose of this study was to examine the significance of FFPs for customer loyalty, which is of great help for customer retention in the civil aviation industry in the sample of passengers flying from the new Istanbul Airport. Furthermore, we questioned the effectiveness of various services and products offered within FFPs for loyalty, which is decomposed into two main components, behavioral, and attitudinal commitment of loyalty. We evaluated the significance of various demographic factors on passengers’ perception of FFPs services and privileges, and customer loyalty. The study confirmed the vital role of FFPs to build up brand loyalty, where profession, duration of the membership to FFPs, and gender are essential factors.


2020 ◽  
pp. 097215092092331 ◽  
Author(s):  
Meena Madhavan ◽  
Mohammed Ali Sharafuddin ◽  
Pairach Piboonrungroj ◽  
Ching-Chiao Yang

This study aims to forecast air passenger and cargo demand of the Indian aviation industry using the autoregressive integrated moving average (ARIMA) and Bayesian structural time series (BSTS) models. We utilized 10 years’ (2009–2018) air passenger and cargo data obtained from the Directorate General of Civil Aviation (DGCA-India) website. The study assessed both ARIMA and BSTS models’ ability to incorporate uncertainty under dynamic settings. Findings inferred that, along with ARIMA, BSTS is also suitable for short-term forecasting of all four (international passenger, domestic passenger, international air cargo, and domestic air cargo) commercial aviation sectors. Recommendations and directions for further research in medium-term and long-term forecasting of the Indian airline industry were also summarized.


Climate Law ◽  
2012 ◽  
Vol 3 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Doaa Abdel Motaal

Two industries have been historically exempt from climate mitigation efforts under the Kyoto Protocol: the international aviation and maritime sectors. This article focuses on the aviation industry, looking at howits “exceptionalism” under Kyoto has fashioned its response to the climate crisis. It is a story of a global industry that has sought to fend off regulation of its CO2 emissions at the global level, until faced with the unilateral imposition by the European Union of its emissions trading scheme on both domestic and international aviation. The EU aviation scheme advantages some carriers while disadvantaging others. Rushed responses by the industry to combat the EU aviation scheme at the International Civil Aviation Organization (ICAO) have not helped matters, with a solution found at ICAO that would distort intraindustry competition, without necessarily fixing the environmental problem. Legal challenges to the EU scheme in the European Court of Justice by the industry have not borne fruit either, as the industry’s arguments have largely been overturned. Today, the industry pays a high price for a muddled approach at the international level to curbing its emissions. Is the lesson that global industries must actively pursue global solutions?


2010 ◽  
Vol 1 (1) ◽  
pp. 1-19 ◽  
Author(s):  
John O’Connell ◽  
George Williams

The air transport market in the Middle East is undergoing a rapid transformation as passenger traffic is beginning to surge through the area. This paper examines the impact that deregulation is having on the region, including the growth of low cost carriers. It establishes that the region is working towards a pan-regional agreement on liberalisation under the leadership of the Arab Civil Aviation Commission.


2020 ◽  
Vol 4 (26) ◽  
pp. 96-107
Author(s):  
A. V. Adrianova ◽  

The article examines the external conditions that determine the processes of the air transport participants operation. The impact of the COVID-19 pandemic on civil aviation has been studied: statistics on the decline in the number of flights in the world and the passenger traffic reduction in European countries are given, their economic losses are estimated. The aviation market state in the Baltic region has been investigated. Existing forecasts for the industry recovery after the introduction of restrictions on the fight against the COVID-19 virus are outlined. Keywords: air transportation, passenger traffic, Baltic region airports, COVID-19 coronavirus pandemic, industry recovery forecast.


2010 ◽  
Vol 114 (1162) ◽  
pp. 747-756 ◽  
Author(s):  
D. J. Allerton

AbstractThis paper explains how flight simulation has made a major contribution to flight safety over the last thirty years to become critical to the operation of civil airlines and military organisations. It not only provides effective training, but for many flight training organisations has reduced the cost of flight training significantly. The paper outlines the increasing role of flight simulation covering flight training and research and development of aircraft and systems. The contribution of the flight simulation industry to the UK economy, in terms of both employment and revenue, is highlighted.The paper focuses on advances in the underpinning technologies of flight simulation, including mathematical modelling, real-time computation, motion actuation, visual image generation systems and projection systems.The paper also summarises the broadening roles of flight simulation; from part-task trainers to zero flight-time training in civil aviation; in military aviation, extending to combat domes and mission rehearsal; in defence procurement, where synthetic environments are used widely in evaluation studies prior to major project commitments; in aircraft development, providing powerful design tools to enable system designers to evaluate prototype systems.As a result of the acceptance of flight simulation in flight training, the use of simulators has been standardised throughout the world, with formal programmes of simulator qualification. These regulations, drawn up with the help of the RAeS Flight Simulation Group, ensure consistency for operators, regulators and manufacturers; the status of these regulations is outlined.The paper concludes by reviewing the lessons learnt by the flight simulation industry over the last thirty years and summaries the potential areas of growth, which will lead to simulation becoming widespread throughout many industries, in addition to the aerospace industry.


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