scholarly journals BUSINESS RELATIONS BETWEEN THE LOW COST CARRIERS AND AIRPORTS AS A CONSEQUENCE OF THE AIR TRANSPORT DEREGULATION

2012 ◽  
Vol 3 (1) ◽  
pp. 57-77
Author(s):  
Eleftherios Katarelos ◽  
Iason Koufodontis
Keyword(s):  
Strategic Alliances ◽  
Low Cost ◽  
Air Transport ◽  
Additional Increase ◽  
Evolution And Development ◽  
Low Cost Carriers ◽  
Increased Sensitivity ◽  
Regional Airports ◽  
The Relationship ◽  
Air Carriers

The deregulation of air transport has increased competition between air carriers, resulting in lower fares and increased volumes of passengers. Subsequently, the fare reduction has altered the market structure with the establishment of new carriers, strategic alliances and mergers, and the bankruptcy of several traditional airlines which were unable to adapt to the new environment. The emergence of low cost carriers (LCCs) is one important outcome of the deregulation. LCCs entered the market by offering a differentiated product based on bare services offered at significantly lower prices. The main target was travelers with increased sensitivity in pricing and less demand for all-around services. The rise in terms of passengers and flights dictated a better utilization of the fleet, requiring reduced turnaround times at airports. Many central airports had very little flexibility and capacity necessary to facilitate additional timeslots. As an answer to inadequate capacity combined with higher taxes and fees, most LCCs have chosen to use secondary or regional airports. This choice has altered the balance and strategic importance between airports and increased their importance for air carriers. This paper examines the evolution and development of LCCs globally, along with the consequences of their expansion to the traditional carriers, the market and the passengers. Emphasis is given to the relationship between LCCs and airports which has resulted in an additional increase in air travel. The prospects of Greece as a market for LCCs are also being discussed.

scholarly journals Effectiveness of National Airlines in Europe – the DEA Approach

2016 ◽  
Vol 16 (2) ◽  
pp. 103-118 ◽  
Author(s):  
Agata Żółtaszek ◽  
Renata Pisarek
Keyword(s):  
Low Cost ◽  
Air Transport ◽  
Competitive Environment ◽  
Load Factor ◽  
Data Envelopment ◽  
Eu Member States ◽  
Analysis Methodology ◽  
Low Cost Carriers ◽  
Dea Approach ◽  
Regional Airports

Abstract National airlines operate in a highly competitive environment. EU airlines face a challenge to compete with low cost carriers, as a result of the liberalization process in the sector. European flag airlines of non-EU member states, not benefiting from liberalization, are forced to compete internationally. This research is focused on national carriers, as they provide the majority of service to and from central and regional airports. Therefore, to establish the most efficient entities on the passenger air transport market, DEA (Data Envelopment Analysis) methodology, has been utilized. The purpose of this paper is to evaluate the effectiveness of 29 chosen national airlines in Europe in the year 2013, using the DEA approach, to pinpoint the subset of fully-efficient market leaders, as well as potential sources of inefficiency, among less effective carriers. The analysis incorporates information on inputs (e.g. fleet, number of employees, number of countries and airports served) and outputs (revenue, annual passengers carried, load factor). The results show that more than 40% (12 of 29) researched airlines are effective and the other 34% are near-efficient. Moreover, outcomes suggest that “going big” may not increase effectiveness. It is harder to achieve full efficiency for big carriers than small ones.

Preference and expectation analysis of passengers in the International Airport Kraków–Balice

2019 ◽  
Vol 125 ◽  
pp. 127-135
Author(s):  
Anton Pashkevich ◽  
Jakub Dyrcz
Keyword(s):  
European Union ◽  
Low Cost ◽  
Air Transport ◽  
The European Union ◽  
Final Destination ◽  
International Airport ◽  
Low Cost Carriers ◽  
Regional Airports ◽  
Passenger Terminals ◽  
Destination Point

The number of passengers using airport services increases constantly. One of the most important factors driving the Polish air transport market is the development of low-cost carriers, which have currently a large market share, especially it concerns regional airports. Also it should be remembered that, as Poland started to be a member of the European Union, the air traffic has grown rapidly. It resulted in numerous investments in infrastructure, such as the creation of modem passenger terminals, access roads, parking lots, runways, aprons and modern systems navigation. At present, the system of civil airports in Poland consists of 15 units, which are competing with each other to get more passengers. Therefore, the purpose of the presented study was to analyze the preferences and expectations of passengers of the International Airport Kraków in relation to the airport itself as a main origin/ final destination point of travel by air transport and in relation to airlines operating at this airport. This analysis was based on factors, which determine passengers’ choice.

scholarly journals THE EVOLUTION OF LOW COST CARRIERS IN AUSTRALIA

Aviation ◽  
2014 ◽  
Vol 18 (4) ◽  
pp. 203-216 ◽  
Author(s):  
Panarat Srisaeng ◽  
Glenn S. Baxter ◽  
Graham Wild
Keyword(s):  
Low Cost ◽  
Air Travel ◽  
Air Transport ◽  
Market Segment ◽  
Service Network ◽  
Air Transport Industry ◽  
Low Cost Carriers ◽  
Low Cost Carrier ◽  
Network Carrier ◽  
Second Wave

Due to the vast distances across the country as well as between urban centres, Australia is heavily reliant upon its air transport industry. Following deregulation of Australia's domestic air travel market on the 30th October, 1990, low cost carriers have entered the market. Australia's LCC market has had three discrete phases. The first wave occurred between 1990 and 1993 and was subsequently followed by a duopoly period in 1994–1999. The second wave occurred between 2000 and 2006 and the final wave has been in the post-2006 period. This paper examines the evolution of Australia's domestic low cost carrier airline market and finds that by 2010, low cost carriers had captured around 64 per cent of the market. Following the evolution of the “Virgin Australia” business model from a low cost carrier to a full service network carrier, commencing in 2011, the low cost carrier's market share has declined significantly and is now around 31 per cent. “Jetstar” and “Tiger Airways” are the two major carriers presently operating in this market segment.

The mediating role of passenger satisfaction on the relationship between service quality and behavioral intentions of low-cost carriers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hsiu-Fen Lin
Keyword(s):  
Service Quality ◽  
Behavioral Intentions ◽  
Low Cost ◽  
Group Analysis ◽  
Equation Modeling ◽  
Research Model ◽  
Content Type ◽  
Passenger Satisfaction ◽  
Low Cost Carriers ◽  
The Relationship

PurposeBy extending the existing service quality dimensions and reflecting the low-cost carriers (LCCs) context, the purpose ot this study aims to develop the research model to examine whether passenger satisfaction mediates the relationship between service quality and behavioral intentions of LCCs across low- and high-experience passengers.Design/methodology/approachData collected from 320 passengers (180 for low-experience passengers and 140 for high-experience passengers) to test the research model. The partial least square structural equation modeling approach was used to perform the path modeling and multi-group analysis.FindingsThe results confirm that passenger satisfaction mediates the relationship between four service quality constructs (tangible features, service reliability, quality of personnel and online ticketing service) and behavioral intentions (repurchase and recommendation intentions) for both low- and high-experience passengers. However, convenient flight schedule has a significant influence on passenger satisfaction only for low-experience passengers.Practical implicationsThe results of multi-group analysis indicated that passenger satisfaction exerts stronger effect on recommendation intentions for low-experience passengers. LCCs managers' priority should be placed on providing satisfying service experiences to less experienced passengers. Improved passenger satisfaction through superior service quality motivates low-experience passengers to recommend LCCs, thus increasing the positive word-of-mouth promotion.Originality/valueTheoretically, this study is first considering both low- and high-experience LCCs passenger perceptions to examine how passenger satisfaction mediates the relationship between service quality and post-purchase intentions. From the managerial perspective, the findings can provide useful management insights into developing multi-faceted strategies that allow LCCs firms to restore passenger confidence and retain their repurchase intentions.

scholarly journals Have Low-Cost Carriers Crowded Out Full Services and Charter Carriers in Tourism Destinations? A Trivariate Structural Time Series Analysis

2020 ◽  
pp. 004728752091080
Author(s):  
Juan L. Eugenio-Martin ◽  
Ubay Perez-Granja
Keyword(s):  
Time Series ◽  
Low Cost ◽  
German Market ◽  
Structural Time Series ◽  
Common Shocks ◽  
The United Kingdom ◽  
Low Cost Carriers ◽  
Tourism Destinations ◽  
Structural Time ◽  
The Relationship

Long-haul tourist arrivals depend on the airline market, its size, and the degree of competition. This article studies the entry and exit of full service carriers (FSCs), charter carriers (CCs) and low-cost carriers (LCCs) from two origins: the United Kingdom and Germany, and five sun-and-beach destinations in Spain. The relationship among all types of airlines is captured with a trivariate structural time series model to disentangle the airlines’ responses under common shocks of airlines’ entry and/or exit and provides estimates of immediate responses and indicators of responses over time. The results show that in the British market, the entry of LCCs has crowded out FSCs and CCs. However, in the German market, the results are heterogeneous and overall do not support the existence of such crowding out effect.

Ailing Kenyan carrier will face more competition

2016 ◽  
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Air Travel ◽  
Recovery Strategy ◽  
East African ◽  
Content Type ◽  
Profit Margins ◽  
Low Cost Carriers ◽  
Fuel Costs ◽  
Air Carriers

Significance Despite low fuel costs and the global airline industry running profitable operations, Kenya Airways has recorded multiple years of losses, leading the company to consider a recovery strategy that includes selling aircraft and shedding jobs. Impacts East African air carriers could benefit from industry rationalisation, but domestic political concerns could obstruct regional reforms. Low-cost carriers have emerged in Africa but struggle to make headway against publicly owned airlines. Once Kenya Airways exits fuel-hedging commitments, lower prices should improve profit margins. Without airline liberalisation and local carrier rationalisation, foreign airlines will benefit most from growing African air travel. Government protectionism, high taxes and regulation will restrict competition, especially from low-cost carriers.

scholarly journals Overview of the developments in the domestic airline industry in South Africa since market deregulation

2013 ◽  
Vol 7 (1) ◽  
Author(s):  
Rose Luke ◽  
Jackie Walters
Keyword(s):  
South Africa ◽  
Airline Industry ◽  
Structural Changes ◽  
Low Cost ◽  
Air Traffic ◽  
Air Transport ◽  
Load Factors ◽  
Low Cost Carriers ◽  
Global Impacts ◽  
Domestic Airline

Deregulation or liberalisation of air transport has had major global impacts on the domestic air transport markets, with effects ranging from stimulation to changes in the structure and functioning of these markets. In South Africa, deregulation has had wide-reaching effects on the domestic market. The purpose of this article was to investigate the current domestic air transport market. A literature review was performed to examine the effects of deregulation in other domestic air transport markets around the world. This was followed by a review of the South African domestic air transport market prior to deregulation in order to determine the changes that were made following deregulation. The ten-year period immediately following deregulation was also examined; this period was characterised by relatively large numbers of market entries and exits. A database was obtained from the Airports Company South Africa; air traffic movements, passenger numbers and load factors were evaluated. The study showed that the market is still characterised by regular market entries and exits. Also that the entry of the low-cost carriers has stimulated the market, resulting in increased air traffic movements, higher passenger numbers, higher load factors in general and the opening of a secondary airport in Gauteng, Lanseria International. Deregulation and, more specifically, the entry of the low-cost carriers has resulted in structural changes in the market and more choice for passengers.

scholarly journals Modeling the Relationships between the Height and Spectrum of Submerged Tufa Barrage Using UAV-Derived Geometric Bathymetry and Digital Orthoimages

Sensors ◽  
2021 ◽  
Vol 21 (21) ◽  
pp. 6987
Author(s):  
Jinchen He ◽  
Jiayuan Lin ◽  
Yanhao Xu
Keyword(s):  
Nature Reserve ◽  
Low Cost ◽  
Spectral Characteristics ◽  
Future Research ◽  
Contact Method ◽  
Ratio Analysis ◽  
Band Ratio ◽  
Sedimentary Records ◽  
Evolution And Development ◽  
The Relationship

Tufa barrages play an important role in fluviatile tufa ecosystems and sedimentary records. Quantifying the height of tufa barrage is significant for understanding the evolution and development of the Holocene tufa barrage systems. However, for submerged tufa barrages, there is no low-cost non-contact method to retrieve barrage height. Generally, it is difficult to recognize small tufa barrages by means of remotely sensed satellite data, but the combination of unmanned aerial vehicles (UAV) and Structure-from-Motion (SfM) photogrammetry makes it possible. In this study, we used a fixed-wing UAV and a consumer-grade camera to acquire images of the submerged tufa barrage in Lying Dragon Lake, Jiuzhaigou National Nature Reserve, China, and estimated the height of the tufa barrage through UAV-based photogrammetric bathymetry. On this foundation, the relationship between barrage height and its spectrum was established through band ratio analysis using UAV-derived geometric bathymetry and digital orthoimages, which provided an alternative strategy to characterize the height of submerged tufa barrages. However, the spectral characteristics of submerged tufa barrages will oscillate with changes in the environmental conditions. In future research, we will consider using a dedicated aquatic multispectral camera to improve the experimentation.

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