PHILOSOPHICAL BLUNDERS WITHIN THE CARICOM AVIATION INDUSTRY

The worsening state of affairs in the Caribbean Community (Caricom) aviation industry is undeserved. Philosophical blunders perpetuate the foremost regional state air carriers. The Regulatory Authorities lack the leadership zest to drive change. There is urgent need to revisit the 1996 Multilateral Air Service Agreement (MASA) and re-engage Caricom Governments, State Air Carriers, and Regulatory Aviation Authorities to relight the region’s aviation industry vision. Leaders must focus their collective effort towards a viable and dependable air transport industry infrastructure. The leadership miscalculations are causing weighty financial losses while adding to the air network deterioration.

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

The Open Transportation Journal ◽

10.2174/1874447802115010160 ◽

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.

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

PLoS ONE ◽

10.1371/journal.pone.0259149 ◽

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.

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

Journal of Modelling in Management ◽

10.1108/jm2-08-2013-0036 ◽

2014 ◽

Vol 9 (3) ◽

pp. 245-260 ◽

Cited By ~ 3

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.

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DRIVING FORCES AND CONSTRAINTS ANALYSIS IN FORECASTS OF AIR TRANSPORT DEVELOPMENT // ANALIZA POKRETAČKIH SNAGA I OGRANIČENJA U PROGNOZAMA RAZVOJA AVIOPRIJEVOZA

EMC Review - Časopis za ekonomiju - APEIRON ◽

10.7251/emc1602287m ◽

2017 ◽

Vol 12 (2) ◽

Author(s):

Ivan Mišetić ◽

Mirko Tatalović ◽

Andrej Bajić

Keyword(s):

Airline Industry ◽

Seasonal Changes ◽

Driving Forces ◽

Air Transport ◽

Aviation Industry ◽

Demand And Supply ◽

Economy Growth ◽

Forecasting Methods ◽

Forecasting Method ◽

Air Carriers

Objective forecasting of the aviation development dynamics is one of the most sensitive, unpredictable and critical points in the airline management activities. Forecasts and projections of the airline industry are very complex since they include a lot of market micro-macro elements influencing future demand and supply. High depending correlation of the aviation industry with economy growth is followed by the cyclical and seasonal changes on the air transport market. It emphasize the importance of the choice of adequate forecasting method in the projections quantification. Air carriers dominantly use three groups of forecasting methods-qualitative, causal and time series projections. ICAO and IATA forecasts are the most recognized worldwide, followed by the forecasts of aircraft manufacturers. European aviation forecasts use very often Eurocontrol predictions. Croatian air transport market is not covered by the adequate passenger and cargo forecasts. The contribution to the relevant forecasting factors will be supplemented by the selective mathematics modelling. Conclusions of the paper give directions to the activities for better understanding of cohesive and synchronized image of driving forces and constraints on global and regional air transport markets.

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

Journal of Air Transport Studies ◽

10.38008/jats.v2i1.105 ◽

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.

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Anti-crisis program of airline companies in the conditions of an unstable financial and information environment

INNOVATIVE ECONOMY ◽

10.37332/2309-1533.2020.1-2.14 ◽

2020 ◽

pp. 93-98

Author(s):

Nadiia Solovei ◽

Olena Rybak ◽

Liudmyla Petrusenko

Keyword(s):

Crisis Management ◽

Information Environment ◽

Air Transport ◽

Aviation Industry ◽

Dynamic Phenomenon ◽

Speed Of Response ◽

Logical Method ◽

Theoretical Generalization ◽

Air Carriers ◽

Airline Company

Purpose. The aim of the article is systematization and analysis of the causes and consequences of bankruptcy of airline companies in the Ukrainian air transport market, and on this basis – creation of a unified anti-crisis program for Ukrainian airlines, which will take into account the peculiarities of the unstable financial and information environment. Methodology of research. Methods of analysis, synthesis, sampling, graphic, etc. are used in the study of the genesis of the aviation sector of Ukraine. The abstract and logical method, methods of theoretical generalization, dialectics and logic are used in order to substantiate the basic provisions of the concept of crisis management. The airline's structural, process, balance and situational approaches as well as the method of expert judgment are used to develop an adapted anti-crisis program for the airline company. Findings. It has been determined that in today's world financial and economic system, crises that aggravate problems in different sectors of the economy are difficult to predict and dynamic phenomenon. The problems of the Ukrainian air carriers have been analysed and the results of the activity of the latter are found to be low, the situation is complicated by the signs of future and consequences of past crises. An adapted anti-crisis program for Ukrainian airline companies is proposed, based on identifying the nature of the destructive factors and choosing the measures that will be appropriate for them. Originality. An adapted anti-crisis program for Ukrainian airline companies has been developed, which, unlike the existing ones, takes into account the peculiarities of the aviation industry and determines measures depending on the level and nature of the destructive factor influencing the activity of the air carrier. Practical value. The proposed adapted anti-crisis program, taking into account these recommendations for application, will allow Ukrainian airline companies to quickly mobilize resources and become accustomed to new conditions of activity, stabilize the main financial and economic indicators, accelerate the speed of response to crisis phenomena. Key words: financial crisis; bankruptcy; anti-crisis management; anti-crisis program; airline company; information environment; extraordinary events.

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Exploring Strategic Choices of Airlines: A Study in Turkish Air Transport Industry

Asian Academy of Management Journal ◽

10.21315/aamj2021.26.2.1 ◽

2021 ◽

Author(s):

Hüseyin Önder Aldemir ◽

Ferhan Kuyucak Şengür ◽

İbrahim Cemil Ulukan

Keyword(s):

Planning Process ◽

Air Transport ◽

Business Strategies ◽

Aviation Industry ◽

Strategic Choices ◽

Firm Competition ◽

Differentiation Strategy ◽

Air Transport Industry ◽

Transport Industry ◽

Integrated Cost

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.

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Promosi E-Ticketing terhadap Kepuasan Konsumen yang Berdampak pada Loyalitas Pelanggan

The Winners ◽

10.21512/tw.v14i1.643 ◽

2013 ◽

Vol 14 (1) ◽

pp. 42

Author(s):

Lindyastuti Maniek

Keyword(s):

Competitive Advantage ◽

Market Orientation ◽

Air Transport ◽

Aviation Industry ◽

Commercial Practice ◽

Alternative Method ◽

Air Transport Industry ◽

Transport Industry ◽

Different Sources

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.

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