International Cooperation in Mitigating Global Air Transport Crises

2022 ◽  
pp. 200-211
Author(s):  
Jan Zýka ◽  
Michal Červinka ◽  
Lucie Vosečková
Keyword(s):  
International Cooperation ◽  
Low Cost ◽  
Air Transport ◽  
Transport Sector ◽  
International Level ◽  
Market Segments ◽  
Global Industry ◽  
The Cost ◽  
Air Carriers ◽  
The Eu

The authors deal with the unprecedented effects of COVID-19 on the air transport sector and the reactions of selected segments to this situation. Air transport is a global industry, and this situation needs to be addressed through cooperation at an international level. The authors focus on the airport and airline sector, which, due to the nature of their business, chooses a different strategy. Despite the need for international cooperation, there are also efforts to use the crisis situation for its own expansion into vacant market segments, especially by selected low-cost air carriers. The strategic starting points of international organizations for individual sectors are given as well as examples of selected airport entities and airlines. The chapter is complemented by a common approach of airports and air carriers, which could significantly affect the cost of air transport, especially in the EU.

INVESTIGATION OF EUROPEAN AIR TRANSPORT TRAFFIC BY UTILITY‐BASED DECISION MODEL

Aviation ◽  
2010 ◽  
Vol 14 (3) ◽  
pp. 90-94 ◽  
Author(s):  
Eniko Legeza ◽  
Peter Selymes ◽  
Adam Torok
Keyword(s):  
Price Competition ◽  
Choice Model ◽  
Low Cost ◽  
Mathematical Formulation ◽  
Air Transport ◽  
Transport Sector ◽  
Load Factor ◽  
The European Union ◽  
National Flag ◽  
The Eu

Air transport was traditionally a strictly regulated industry, dominated by national flag carriers and state‐owned airports. The global deregulation and liberalisation of air transport resulted in numerous changes, including the evolution of price competition, emergence of low‐cost airlines, growth in load factor, airport and airspace capacity problems, etc. Later, the internal market eliminated all commercial restrictions for airlines flying within the European Union (EU). Constraints on routes, number of flights, regulated tariff policies, etc. were removed. Since the issue of the third liberalisation package, EU airlines are permitted to provide air services on any route within the EU. As a result, prices have fallen dramatically, especially on the most popular routes. The air transport sector has had the highest rate of development recently. These issues are discussed in the introduction of this paper. The main scope is to investigate air passenger transport within Europe and to present the mathematical formulation of a disaggregate airport choice model created by the authors. A complex utility function‐based model has been developed and verified by the authors. The results of the model are in scope with experience in the real world. Santrauka Pastaraisiais metais pastebimas itin intensyvus transporto sektoriaus vystymasis, pasireiškiantis mažinamomis kainomis, nauju pigiu avialiniju atsiradimu bei ivairiu komerciniu apribojimu panaikinimu. Pagrindinis šio darbo tikslas yra ištirti keleiviu pervežima oro transportu Europos Sajungos ribose ir pristatyti pasirinkto atskiro oro uosto modelio matematine formuluote. Modelis, paremtas kompleksinemis panaudojimo funkcijomis, buvo patobulintas ir patikrintas pačiu autoriu, o gauti rezultatai atitinka realia patirti.

Concentrations in the Aviation Sector: How to maintain the level playing field for airlines and airports?

2021 ◽  
Vol 24 (3) ◽  
pp. 485-511
Author(s):  
Valentine Lemonnier
Keyword(s):  
Competition Law ◽  
Air Transport ◽  
Transport Sector ◽  
Level Playing Field ◽  
Playing Field ◽  
Market Participants ◽  
Free Competition ◽  
Eu Competition Law ◽  
Different Types ◽  
The Eu

Before the Covid-19 pandemic hit, the scheduled passenger air transport sector was already subject to several horizontal concentrations. The mix of free competition and strict regularization in the air transport sector in the EU raises the question whether the current framework will still be able to provide a level playing field to the market participants, notably airlines and airports. The study focusses on how EU competition law has influenced horizontal concentrations (i.e. mergers and horizontal co-operations) in the scheduled passenger air transport sector. The results of the discussion are the basis for a reflection of the effects of different types of horizontal concentrations on the negotiation power of airlines vis-à-vis airports. A third focus of the study is the identification of regulatory weaknesses with regard to airport financing under the Airport Charges Directive (Directive 2009/12/EC), how those weaknesses benefit airlines and how they might interfere with efforts made under the application of competition law.

scholarly journals Low-cost air traffic as a determinant of tourism development

2021 ◽  
Vol 10 (19) ◽  
pp. 43-57
Author(s):  
Filip Bugarčić ◽  
Marijana Bugarčić
Keyword(s):  
Information Technologies ◽  
Low Cost ◽  
Air Traffic ◽  
Air Transport ◽  
Passenger Transport ◽  
Economic Activities ◽  
Doing Business ◽  
Global Trend ◽  
The Cost ◽  
Further Development

Air transport as an organized form of service provision, especially in passenger transport, can be important for increasing the number of foreign tourists. Globalization and the development of information technologies have contributed to the development of the business model of airlines, which has enabled a significant reduction in the cost of air travel and the accelerated development of this industry. Therefore, the emphasis is placed on the global trend of development of low-cost airlines, their way of doing business and the effects they have on the development of tourism. The increase in the number of low-budget airlines has multiple effects on the development of international tourism and passenger transport due to cheaper transport, which is made possible by improving the competitiveness of air transport after its deregulation. In addition, lower prices and a better logistical position can contribute to an increase in the number of foreign tourists and a higher income for this industry, as well as other related economic activities. The aim of this paper is to examine through theoretical and empirical insight whether there is an impact of low-cost airlines on the volume of air traffic and the intensity of passenger transport, with an emphasis on existing literature, as well as empirical confirmation on the example of Serbia. The conducted research has important implications, since in pandemic conditions, further development of low-budget airlines is expected to contribute to the recovery of air traffic and tourism.

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.

Global airlines will need long-term productivity gains

2016 ◽  
Keyword(s):  
Mergers And Acquisitions ◽  
Airline Industry ◽  
Cost Of Capital ◽  
Low Cost ◽  
Air Transport ◽  
Economic Sustainability ◽  
Content Type ◽  
The Cost ◽  
Productivity Gains

Subject Airline industry outlook. Significance The International Air Transport Association (IATA) predicts that the global airline industry will record a fifth year of profitable operations in 2016. The average profit margin is foreseen at 5.6%, with the industry meeting the cost of capital for the second consecutive year. This is the first period of economic sustainability in the airline industry's history. Impacts Further consolidation is likely among North American airlines, but smaller carriers are reluctant to embark on major restructuring. In Asia, the appetite for looser alliances and joint ventures will prevail over mergers and acquisitions. Low-cost carriers offering cheap business class services, in addition to less expensive economy-class tickets, will pressure IATA members.

scholarly journals Competitiveness of the air transport sector as a determinant of the development of time and road accessibility to airports

2017 ◽  
Vol 2017 (2) ◽  
pp. 46-55
Author(s):  
Dariusz Tłoczyński
Keyword(s):  
Economic Development ◽  
Communication System ◽  
Public Institutions ◽  
Financial Data ◽  
Air Transport ◽  
Transport Sector ◽  
Public Authorities ◽  
The Public ◽  
Transport Services ◽  
Air Carriers

Air transport is an important element in the development of every country. Aviation impact on economic development, and the economy has an impact on air transport. This relationship has an impact on entities operating on the market for air transport services. Air carriers, airports want to achieve maximize their operational and financial data. In Poland, most airports shareholders are the public authorities, which support the development of airports. Public institutions involved directly and indirectly. Indirect, because the building communication system to airports, modernizing rail and road infrastructure. The dynamic development of this infrastructure has resulted to an increase in catchement area. Air transport companies realize specific development strategies, they are forced to take measures to increase competitiveness. Most often this is done by intangible factors.

scholarly journals ROAD TRANSPORT IN TOURISM: IMPLEMENTING SUCCESSFULLY AIR TRANSPORT PRACTICES

1970 ◽  
Vol 11 (2) ◽  
pp. 59-70
Author(s):  
Emmanouil Christofakis ◽  
Theodoros Stavrinoudis ◽  
Spyridon Kapitsinas ◽  
Andreas Papatheodorou ◽  
Dimitrios Pappas ◽  
...  
Keyword(s):  
Best Practices ◽  
Low Cost ◽  
Road Transport ◽  
Legal Framework ◽  
Air Transport ◽  
Transport Sector ◽  
The Road ◽  
The World ◽  
Low Cost Carrier ◽  
Additional Demand

Transportation has always been closely connected to the development of a region. Technological advancements as well as the increase of the available income has set the fundamentals for more effective ways of transportation. At the same time, tourism flourishes and more people travel around the world. To accommodate this additional demand, airlines introduced several strategies; among others, the Low Cost Carrier (LCC) business model has played a disruptive role. At the same time, road transport operators started to implement several strategies, some of which are inspired from the airline sector. Road transport operations, mainly undertaken by coaches, introduced several strategies to address the evolving demand. This paper presents a wide overview of the Greek road transport sector and its related legal framework. The review aims to identify and discuss the best practices, introduced by the airlines, and fruitfully apply them in the context of the road transport sector.

scholarly journals The competitive position of the low cost carrier Wizz Air on the Polish market of air transport services

2018 ◽  
Vol 76 ◽  
pp. 65-76
Author(s):  
Dariusz Tłoczyński
Keyword(s):  
Comparative Analysis ◽  
Low Cost ◽  
Air Transport ◽  
Competitive Position ◽  
Secondary Sources ◽  
Transport Services ◽  
Factors Influencing ◽  
Low Cost Carrier ◽  
Operational Activities ◽  
Air Carriers

In the air transport market, competitive processes are seen more and more in terms of intra-industry, hence air carriers strive to achieve a high competitive position. Thus, the main goal of the research undertaken in the article is to assess the competitive position of the Hungarian air carrier Wizz Air. On the basis of the presented objective, the factors influencing the achievement of competitive position by enterprises were analyzed. The article uses available secondary sources in relation to the Polish air transport market. When analyzing the functioning of Wizz Air, the airports in which the aircarrier conducts operational activities were selected. The comparative analysis was carried out on selected routes where competition between Wizz Air and other carriers takes place.

scholarly journals The role of the airline as a logistics provider in the passenger travel chains involving air transport

2021 ◽  
pp. 62-79
Author(s):  
Myroslava Semeriahina ◽  
Mariia Hryhorak
Keyword(s):  
Business Models ◽  
Business Processes ◽  
Low Cost ◽  
Air Transport ◽  
Air Carrier ◽  
Air Supply ◽  
Passenger Travel ◽  
A Chain ◽  
Air Carriers

The article is devoted to the classification of air carrier as a logistics provider. Therefore, in the outsourcing pyramid of logistics providing, the place of the air carrier was determined taking into account its business model: legacy, low-cost, hybrid. Based on this, insourcing pyramid of airline logistics services involving air transport was developed and varieties of 3PL providers were identified: 3–PL, 3PL, 3+PL air carriers. 3–PL air carrier is a logistics provider that provides a range of services within the air supply / travel chain. 3PL air carrier is a logistics provider that provides a range of services in the full supply / travel chain, when booking individual components of such a chain is carried out through the websites of the air carrier and its partners. 3+PL air carrier is a logistics provider that provides a range of services in the full supply / travel chain, when booking such services is carried out integrated through the air carrier's website, and business processes are performed by the air carrier and its partners. It was studied the websites of airlines in order to find out the providing level of modern global passenger airlines operating on legacy, low-cost and hybrid business models and to identify the main trends among air carrier to ensure a complete passenger travel chain. The main feature of the world's air carriers is that most of them provide services at the level of 3PL-provider, and only the world's leading air carriers provide the organization of the passenger travel chain at the level of 3+PL-provider. The generalized scheme of providing for a passenger travel chain involving air transport for the purpose of definition of a role of each type of logistics provider and their collaboration in such chains was constructed. For example, 3–PL, 3PL, 3+PL air carriers can involve 2 PL-companies in the performance of business processes in the passenger chain. At the same time, the air carrier of 4PL-level will involve performers from 2 PL 3-PL, 3PL levels in the processes of the travel chain. On the virtual 5 PL platform, the passenger will independently choose performers from different levels of providing according to their own needs.

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