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

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 The methodology used for this study is documentary research, which entails search of existing published and unpublished documents and databases of stakeholders in the Nigerian aviation industry and external sources with affinity to the sector.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.

PLoS ONE ◽  
2021 ◽  
Vol 16 (11) ◽  
pp. e0259149
Author(s):  
Yin Shi ◽  
Xiaoni Li

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.


1995 ◽  
Vol 48 (3) ◽  
pp. 319-334
Author(s):  
Andrew Shand

This paper is intended to provide an operator's view of the impact of GPS on the air transport industry. The discussion centres on use of GPS for the en-route, oceanic, terminal area and precision approach phases of flight. In summary the author suggests the following:(i) Inefficient use of airspace is costing the airlines a huge amount of money. However, GPS is not a pre-requisite of a move towards more efficient use of that airspace, although it will be required as part of the eventual CNS/ATM package. In the near term, better usage of current equipment such as IRS and DME, together with the introduction of ADS can provide the required level of accuracy for reduced separation in en-route and oceanic airspace.(ii) There is a real need to provide navigation for non-precision approach worldwide, independent of ground-based infrastructure. This is the area in which GPS can provide the most immediate improvement to safety.(iii) There are still a large number of questions hanging over GPS for precision approach. This leads the author to believe that it will not be capable of replacing ILS for the more critical Cat 2 and 3 applications quickly enough to avoid the loss of these capabilities in some critical locations. For this reason, it is postulated that MLS will be required in Europe, at least. Even if MLS is not required, there will still need to be a means of dealing with the transition away from ILS and for this reason the concept of a multi-mode receiver has been developed.


Author(s):  
Hüseyin Önder Aldemir ◽  
Ferhan Kuyucak Şengür ◽  
İbrahim Cemil Ulukan

Inter-firm competition in the field of aviation, which accelerates through liberalisation and globalisation trends, has been investigated by numerous studies in the post-deregulation era; however, it has not been adequately addressed in Turkish aviation market. The aim of this study is to unveil the business strategies and strategic typologies of Turkish passenger carriers, as well as the degree of involvement of firms in the strategic planning process, the current outlook, and the competitive structure of the Turkish passenger air transport industry. The research is designed in a way to collect data through interviews with senior executives of the airlines. In terms of findings, the study concludes that five scheduled airlines and three charter airlines have attempted to implement more than one generic strategy at the same time as an “integrated cost and differentiation strategy,” with the primary strategy being cost leadership. Moreover, the passenger carriers in question displayed the features of “analysers-defenders” mainly linked to the competitive typology viewpoint. This study is believed to lead to a deeper understanding of potential explanations why companies have made specific strategic choices regarding generic strategies and strategic approaches. Regulators, individual companies operating in the aviation industry and prospective companies, investors, etc. can use the results of the study to regulate the market, better understand their competitors, set their priorities and plans, evaluate, and assess the market.


The Winners ◽  
2013 ◽  
Vol 14 (1) ◽  
pp. 42
Author(s):  
Lindyastuti Maniek

Internet causes changes in the behavior of individuals and groups within the business done. With the increasing pressures of globalization, companies struggle to find a way to sustain long-term excellence competitiveness. Competitive advantage is the ability to rapidly innovate and absorb innovations from different sources. The development of e-commerce has increased exponentially. E-commerce has been developed as a new market orientation, creating profit opportunities for growth for many industries. One of the industry's growing use of e-commerce systems is air transport industry. Transport industry is one industry that starts using e-ticketing system, replacing the traditional ticketing system. Replacing the traditional paper ticket electronic ticket has now been proven to be an effective commercial practice for organizations operating in the field of transport. E-ticketing can be described as an alternative method of tickets offered by many flight companies which electronic booking records created contain all the information usually printed on a paper ticket. A new revolution in the aviation industry was created by advances in technology. It changes the way airlines in distributing tickets and requires the flight to the next level. Technology given that the electronic ticket is a technology that utilities actually require universal compatibility across airlines.


Author(s):  
Oksana Ovsak ◽  
Maryna Vysotsʹka

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.


2021 ◽  
Vol 2 (4) ◽  
Author(s):  
Vu Thi Kim Hanh

The Foreign Direct investment (FDI) plays crucial role on an economy, especially the developing countries like Vietnam. FDI impacts strongly and deeply on the economic sector in a nation. This paper has an objective to measure the impact of FDI on logistics transport development in Ho Chi Minh (HCM), Vietnam by using multivariate regression. The important results are: while registered FDI capital and number of FDI projects have impact, operating FDI capital does not impact productivity of freight calculated on labour of logistics transport industry (LTI); while number of FDI projects and operating FDI capital have impact, registered FDI capital does not have impact on productivity of passenger based on labour in LTI calculations; while registered FDI capital and number of FDI projects have impact, operating FDI capital does not impact productivity of freight calculated on capital in LTI; while registered FDI and operating FDI had impact, number of FDI projects does not impact gross domestic products.


ILR Review ◽  
1983 ◽  
Vol 36 (2) ◽  
pp. 167-181 ◽  
Author(s):  
Herbert R. Northrup

This study examines recent developments in the air transport industry and assesses the extent to which deregulation has been a compelling factor of change. Among the problems examined are the entry of nonunion carriers into the market, the flight controllers' strike, the decline of traffic during the recent recession, and particularly the differing union approaches to the industry's problems, as exemplified by those of the Air Line Pilots Association and the International Association of Machinists and Aerospace Workers. The author concludes that the impact of deregulation has been significant and is likely to reduce union power permanently in this industry, but he is not certain that the recent ventures in union-management cooperation will survive the end of the recession and the lifting of competitive restrictions imposed as a result of the flight controllers' strike.


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