scholarly journals Passenger choice attributes in choosing a secondary airport: A study of passenger attributes in using Lanseria International Airport

2016 ◽  
Vol 10 (1) ◽  
Author(s):  
Elmarie Kriel ◽  
Jackie Walters
Keyword(s):  
South Africa ◽  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Central Business District ◽  
Access Time ◽  
Exploratory Research ◽  
Face To Face ◽  
International Airport ◽  
Business District

Background: The economic deregulation of the airline industry in South Africa in 1991 was a landmark event and brought about various changes in the air transport market, both locally and internationally. One important after-effect of deregulation was the entry of low-cost carriers (LCCs) in 2001, which increased competition in the market and offered passengers the freedom to choose between full-cost carriers and LCCs. It is generally accepted that LCCs have been very successful across the globe, and the main reason for this lies in their simplified lower cost business models. One way of achieving lower costs is for LCCs to operate from secondary or alternative airports. This trend is observed in most regions of the world. In South Africa, and more specifically the Gauteng province, Lanseria International Airport is considered as an alternative airport to OR Tambo International Airport (the main international airport of South Africa and located about 30 km east of the Johannesburg Central Business District [CBD]). Currently, two LCCs operate from this airport with a third LCC airline indicating that it will shortly begin operations from this airport.Objectives: The research presented here reflects on the aspects passengers consider when selecting a secondary airport for their travel needs. It also compares the research findings of passenger attributes when choosing Lanseria Airport as a secondary airport in 2010 to a similar study in 2013 after another LCC commenced operations from the airport.Method: In this exploratory research a face-to-face survey was used as the quantitative data collection method in order to identify the factors that influenced passengers’ airport choice decisions at Lanseria International Airport.Results: From this research it emerged that when airports in a metropolitan area are close to one another, one of the main considerations for passengers is access time when selecting an airport. Even after a second LCC started operating from Lanseria International Airport, the attributes passengers regard as important in their decision to fly from the airport remained unchanged.Conclusion: The aim of the research is to gain a deeper understanding of the factors involved in secondary airport selection and, building on this knowledge, to assist airport owners and managers in positioning their airports in a multi-airport competitive environment. Similarly, the findings of the research could assist airlines in their decision-making process to operate from secondary airports

Ryanair: success before love

2015 ◽  
Vol 31 (8) ◽  
pp. 1-3 ◽  
Author(s):  
Mark Thomas
Keyword(s):  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Public Image ◽  
Necessary Condition ◽  
Sustainable Competitive Advantage ◽  
Value Proposition ◽  
Content Type ◽  
The Public ◽  
True Value

Purpose – This paper aims to show why public acclaim is not always a guarantee for healthy profits. A low-cost forerunner, Laker Airlines, also discovered this same fact to its fatal cost. A company needs to understand its true value proposition and ensure that customers are willing to pay for it. Ryanair was adored by the public when it began its low-cost flights from Dublin to London in 1986. That love nearly drove it to bankruptcy. Today, despite its poor image, it is one of the most successful and profitable companies in the industry. Design/methodology/approach – The article analysis of the changing fortunes of Ryanair from its launch to its near bankruptcy in 1991 and then its revival of fortunes. It draws a parallel with Laker Airlines and the low-cost transatlantic Skytrain. Adulated by the public, the company folded in 1982. It is supplemented with research the airline industry and low-cost business models. Findings – The article shows why companies should not fall into the trap of believing that a good public image will be the necessary condition for maintaining a sustainable competitive advantage. They need to fully understand the value proposition and what a customer is willing to buy.

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 The Effectiveness of the Expanded Public Works Program in Promoting Local Economic Development: A case study of Zibambele Project, eThekwini Municipality

2017 ◽  
Vol 9 (3(J)) ◽  
pp. 60-72
Author(s):  
Nonkululeko Zulu ◽  
Jabulani Nyawo ◽  
Pfano Mashau
Keyword(s):  
South Africa ◽  
Economic Development ◽  
Local Economic Development ◽  
Local Level ◽  
Public Works ◽  
Exploratory Research ◽  
Employment Opportunities ◽  
Face To Face ◽  
Marginalised Groups ◽  
The Government

In South Africa, with the advent of democracy, the Expanded Public Works Programme was conceived as an employment strategy by government in order to alleviate poverty and promote a better standard of living for marginalised groups, particularly youth and women in South Africa. This is a qualitative exploratory research in which the data was collected through face-to-face interviews with beneficiaries. The researcher utilised the exploratory research in order to explore the effectiveness of the Zibambele Project at the local level, and to see how it creates employment opportunities for marginalised groups. The key focus of the literature review is on local economic development, with special reference to the poverty alleviation strategies as a guideline for economic growth at local levels. The findings show that the government-led programmes that eliminate poverty at the grassroots level as well as creating employment opportunities for marginalised are crucial. Furthermore, the study shows that the government programmes are more needed in order to tackle poverty and also increase local economic development in South Africa.

scholarly journals The Effectiveness of the Expanded Public Works Program in Promoting Local Economic Development: A case study of Zibambele Project, eThekwini Municipality

2017 ◽  
Vol 9 (3) ◽  
pp. 60
Author(s):  
Nonkululeko Zulu ◽  
Jabulani Nyawo ◽  
Pfano Mashau
Keyword(s):  
South Africa ◽  
Economic Development ◽  
Local Economic Development ◽  
Local Level ◽  
Public Works ◽  
Exploratory Research ◽  
Employment Opportunities ◽  
Face To Face ◽  
Marginalised Groups ◽  
The Government

In South Africa, with the advent of democracy, the Expanded Public Works Programme was conceived as an employment strategy by government in order to alleviate poverty and promote a better standard of living for marginalised groups, particularly youth and women in South Africa. This is a qualitative exploratory research in which the data was collected through face-to-face interviews with beneficiaries. The researcher utilised the exploratory research in order to explore the effectiveness of the Zibambele Project at the local level, and to see how it creates employment opportunities for marginalised groups. The key focus of the literature review is on local economic development, with special reference to the poverty alleviation strategies as a guideline for economic growth at local levels. The findings show that the government-led programmes that eliminate poverty at the grassroots level as well as creating employment opportunities for marginalised are crucial. Furthermore, the study shows that the government programmes are more needed in order to tackle poverty and also increase local economic development in South Africa.

CORPORATE FINAL NODAL DESTINATION CHOICES IN THE EXODUS FROM JOHANNESBURG CENTRAL BUSINESS DISTRICT

2017 ◽  
Vol 4 (1) ◽  
Author(s):  
Nthatisi Khatleli
Keyword(s):  
South Africa ◽  
Central Business District ◽  
Independent Observation ◽  
City Center ◽  
Destination Choices ◽  
Internal Migrations ◽  
Business District ◽  
The City ◽  
Opening Up ◽  
Blue Chip

The opening up of the invisible barriers after the fall of apartheid in South Africa led to massive internal migrations and relocations to bigger cities. Johannesburg as the biggest economic hub not only in South Africa but in Africa, pulled the majority of the new opportunity seekers from across the Africa continent. This uncontrolled influx led to overcrowding, increased crime and grime in the city center of Johannesburg. The loss of value of property in this part of the city led to a lot of corporate organizations relocating to budding economic nodes in and around Johannesburg. The study seeks to understand the processes that were applied in deciding the suitable new Headquarters for these blue chip companies. The new nodes that accommodated the new relocators have over time assumed identities of their own in terms of the type of companies that are mostly found in these areas. Although these identity nuances are not pronounced at first glance, they are accentuated with greater scrutiny. The study sought to see if there is a fit between the independent observation of the characteristics of these locations and the perceived attractors to the blue chip firms. This was achieved by interviewing the executives of these companies and sending emails to some in order to understand the processes and triggers affecting their decisions. It was generally observed that prestige and locational characteristics that complemented the company’s ethos were the overriding triggers in deciding on the final nodal destination.

scholarly journals Hybrid” airlines – Generating value between low-cost and traditional

2017 ◽  
Vol 11 (1) ◽  
pp. 577-587 ◽  
Author(s):  
Cristina Stoenescu ◽  
Camelia Monica Gheorghe
Keyword(s):  
Business Model ◽  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Theoretical Perspective ◽  
Loyalty Programs ◽  
Market Segments ◽  
New Business ◽  
Basic Services ◽  
Cost Efficient

Abstract Over the last years, the rise of low-cost airlines has determined significant changes in the airline industry and has shaped the evolution of the existing business models. Low-cost airlines started by offering basic services at very low prices; traditional airlines responded by equally cutting costs and reinventing the services offered, with an orientation towards braking down the fare and implementing add-ons, in order to become cost-efficient. As traditional airlines developed strategies to become competitive in this new environment, low-cost airlines started focusing on new ways of enhancing passenger experience and attracting new market segments. As a result, the fragmentation of the market segments addressed by low cost carriers and traditional airlines became less obvious and the characteristics of both business models started to blend at all levels (airline operation, distribution channels, loyalty programs, fleet selection). Thus, this new competition became the foundation of the development of a new „hybrid” carrier, between the low-cost and the traditional models. This article investigates the characteristics of the newly created business model, both from a theoretical perspective and by analysing several case studies. A particular attention will be granted to the evolution of the Romanian carrier Blue Air towards the “hybrid” model. The article focuses on determining the position of the “hybrid” airline in a market with carriers situated along both sides of this business model: lower cost vs. “better” experience and raises the question on how value can be generated in this context. Another aspect tackled is the understanding of the new segmentation of the market, as a consequence of the development of the new business model. In order to achieve this purpose, a survey has been conducted, aiming to mark out the travel preferences of the passengers travelling through the Henri Coandă International Airport.

scholarly journals A Network-Design Analysis of Airline Business Model Adaptation in the Face of Competition and Consolidation

2021 ◽  
Author(s):  
Renan P. de Oliveira ◽  
Alessandro V. M. Oliveira ◽  
Gui Lohmann
Keyword(s):  
Mergers And Acquisitions ◽  
Network Design ◽  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Model Adaptation ◽  
Stepping Stones ◽  
Network Building ◽  
The Face ◽  
Hybrid Configuration

By focusing on the intrinsic relationship between business models and network configurations in the airline industry, this paper develops a two-stage methodology to estimate the strategic drivers of network design of the major carriers in Brazil. The empirical approach decomposes their domestic network-building rationales into the ones adopted by virtual archetypical carriers. We consider the previously conceived low-cost, full-service, and regional carrier archetypes. Our main contribution is the development of a model that allows airlines’ networks to be strategically designed in a time-evolving pattern, reflecting a dynamically chosen blend of these archetypes. Moreover, we also consider the effects that mergers and acquisitions may have had in inducing changes in these blends. Our results suggest that all analyzed airlines have repositioned themselves through their trajectories to adopt a hybrid configuration, aiming at the intersection of at least two archetypical network-design rationales. Besides, the effects of consolidations point to certain diversions of the acquiring airlines’ domestic network-building rationales toward the ones of the acquired carriers, providing evidence that the consolidations may have served as stepping stones for market-repositioning moves.

Sign in / Sign up

Export Citation Format

Share Document