scholarly journals Trends and Prospects of the Development of the Global and National Air Transport Markets

2020 ◽  
pp. 99-109
Author(s):  
Sergiy Lytvynenko ◽  
Iryna Panasiuk
Keyword(s):  
Business Model ◽  
World Economy ◽  
Business Models ◽  
Low Cost ◽  
Air Transportation ◽  
Global Market ◽  
Air Transport ◽  
Aviation Industry ◽  
Market Expansion ◽  
The World

The article identified the preconditions for the development of the world economy which included the processes of globalization and internationalization. The role of air transport in the world economy is emphasized because its weight grows every year, because it provides the development of tourism, international programs and cooperation between individual regions of the world. There has been an increase in the number of multinational corporations, increasing the mobility of business passengers what is very important for the airlines. The critical analysis of scientific publications made it possible to state that in Ukraine and abroad the development of the air transportation market was studied by many scientists and their contribution to solving a number of scientific problems related to identifying prospects and opportunities for international and national air transportation markets as well as with the optimization of air carriers is important. However, it was found that insufficient research on recent trends and prospects for the development of global and national air transport markets is in the face of new challenges including the outbreak of coronavirus infection COVID-19. It was found that air passenger traffic in the global market has grown steadily in recent years by 7-8% every year and a quarter of sales depend on the regularity of air transportation of which 70% of this type of business determine the vectors of market expansion. The analysis of aviation accidents revealed that they have a very significant impact on the performance of the carrier whose aircraft suffered them. This applies to both reputational and purely financial losses. The problems with the Boeing 737 Max type also became a serious challenge for the aviation industry due to a number of incorrect design decisions of the world’s leading aviation concern and attempts to save on the training of pilots of this type of aircraft. It is noted that modern passengers are trying to minimize the time spent on travel, the trend of fragmentation of the holiday period is growing rapidly. As a result of the analysis of the domestic air transportation market, it was revealed that during 2019 there was an expansion of the market in general, as well as the activities of foreign airlines, travel from Ukraine to Europe and other parts of the world increased rapidly. A radical change in market trends was observed in mid-March 2020, when due to the spread of the COVID-19 coronavirus in the world, quarantine was introduced and regular flights were stopped. The national air carrier Ukraine International Airlines has declared a two-stage period of resumption of work after the end of quarantine. The authors found signs of hybridization of the airline’s business models at the first stage of the restart and the transition to the airline’s business model which has features of both point-to-point models and obvious features of the model of low-cost carriers. Whereas in the second stage the transition to a partial network model with low-cost models is most likely followed by the emergence of a new already stable hybrid business model based on network principles but with stable features of a low-cost airline.

scholarly journals The Viability of Long-Haul, Low Cost Business Models

2011 ◽  
Vol 2 (1) ◽  
pp. 69-91 ◽  
Author(s):  
Mauricio Emboaba Moreira ◽  
John O’Connell ◽  
George Williams
Keyword(s):  
Business Model ◽  
Business Models ◽  
Low Cost ◽  
Operating Cost ◽  
Aviation Industry ◽  
Cost Advantage ◽  
Low Cost Carriers ◽  
The World ◽  
Cost Simulation ◽  
Cost Differences

Recent events have confirmed the concerns that many within the aviation industry have held about the viability of the low cost business model for long-haul operations. This paper begins by reviewing the operating cost differences between low cost carriers (LCC) and legacy airlines in different regions of the world. This is followed by a summary of the various cost advantages of low cost carriers operating in short-haul markets. The main focus of the work, however, is a cost simulation involving the use of a Boeing 767-300 by both a LCC and a legacy carrier under varying operating assumptions. The research demonstrates that in none of the cases cited is the LCC cost advantage greater than 10%.

scholarly journals СТАТИСТИЧНИЙ АНАЛІЗ АВІАЦІЙНОЇ ГАЛУЗІ УКРАЇНИ В УМОВАХ НЕСТАБІЛЬНОГО ПОПИТУ НА АВІАПЕРЕВЕЗЕННЯ

2021 ◽  
pp. 40-45
Author(s):  
Валерія Леонідівна Петрик
Keyword(s):  
System Analysis ◽  
Air Transportation ◽  
Air Transport ◽  
Civil Aviation ◽  
Aviation Industry ◽  
Positive Trend ◽  
Economic Activities ◽  
The World ◽  
Basic Hypothesis

Constant monitoring of the state and development trends of the aviation industry in Ukraine, especially in the context of unstable demand for air transportation caused by the coronavirus infection COVID-19 pandemic, allows aviation enterprises of Ukraine to respond in a timely manner to changes and, if necessary, model their business model of behavior in the market. Over time, the importance and role of aviation in the development of the Ukrainian economy will only increase, therefore, timely research and forecasting of the air transportation market is necessary in order to increase their economic efficiency. The aim of the article is to analyze the patterns and trends inherent in the modern air transportation market in Ukraine, and forecast its development in the context of unstable demand for air transportation. Methodological basis of research was logical methods of information processing, statistical analysis, methods of system analysis, comparison. The basic hypothesis of research was the assumption that the development of the aviation industry in Ukraine is influenced by unstable demand in the domestic and international air transportation markets. Presentation of the main material. The main indicators of the activities of enterprises of the aviation industry of Ukraine, the dynamics of transportation by Ukrainian airlines in the domestic and international air transportation market are analyzed. It was revealed that the development of civil aviation is associated with general trends in international air transport and is due to both global and domestic socio-economic, political and other factors. Originality and practical meaningfulness of research. . It is advisable to use the conducted research in determining the principles of management of aviation enterprises to change the priorities of their economic activities. Conclusions. The analysis of domestic air transportation showed that, despite the instability of the economic situation in the country and the world, the growth rate of air transportation in the Ukrainian segment of the market has a positive trend. For domestic air transport, there are prospects for further development and strengthening of positions in the world air transportation system

scholarly journals The direction of airlines business models – up or down? (Post Covid-19 crisis – case study)

2021 ◽  
Vol 13 (1) ◽  
pp. 263-274
Author(s):  
Mária MRÁZOVÁ ◽  
Antonín KAZDA
Keyword(s):  
Business Model ◽  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Model Development ◽  
Point Of View ◽  
Aviation Industry ◽  
Role Of The State ◽  
Negative Impacts

This paper deals with airlines business models, mostly full service network carriers (FSNC) and low-cost carriers (LCC) and their position on the airline market. Covid-19 crisis causes many negative impacts on all airline industry. Hybridisation process in aviation industry is described many times in the past; now it has a stronger impact on airline business model development and it is oriented on different aspects than before. The paper emphasises the fact that low-cost carrier’s business model is much closer to the features of the FSNC carriers from the price point of view and vice versa. Furthermore, the authors introduce some other diversifications of airlines business models and the paper offers the new stimulus to move forward in this tough time for airlines business, paradoxically, thanks to Covid-19. Finally, yet importantly, the authors emphasise the important role of the state in the further direction of the airlines during and after the Covid-19 crisis

scholarly journals Competitiveness of International Airports Production Infrastructure in Global Air Transportation Market: Comprehensive Situational Model

2021 ◽  
Author(s):  
Kateryna Sydorenko ◽  
Oleksandr Sydorenko ◽  
Olena Lozhachevska ◽  
Olha Pashchenko
Keyword(s):  
Evaluation System ◽  
World Economy ◽  
Methodological Approach ◽  
Air Transportation ◽  
Air Transport ◽  
Successful Implementation ◽  
Wide Range ◽  
The World ◽  
Airport Infrastructure ◽  
Management Functions

The article summarises the essence of airport infrastructure and explores the roles of production airport infrastructure in the world air transport system. It is noted that airport infrastructure is a complex dynamic subsystem of global production infrastructure of the world economy and is aimed at providing competitive air transportation services. It is substantiated that the competitive production infrastructure of international airports is a key element of the economic development of countries in the world economy. In particular, reliable airport infrastructure is one of the key factors in increasing the countries capacity for real economic growth, both in the short and long term. Generalised and systematic views of scientists have led to the conclusion that today there is no single universally accepted methodology that would comprehensively explore and evaluate the competitiveness of the airport's infrasystem, and identify its strengths and weaknesses. Therefore, this study aims to develop and substantiate the methodology for assessing the level of competitiveness of the production infrastructure of international airports in the global aviation market. The proposed methodological approach makes it possible to provide a practical assessment of the competitiveness of the airport's infrasystem, taking into account the wide range of indicators, converted through a fuzzy linguistic approach. It should be noted that the main purpose of creating and implementing an evaluation system is to facilitate the successful implementation of the competitiveness management functions of the production infrastructure of international airports in the global aviation market. The developed model may be used by international aviation organisations and governments in the process of strategic planning of the air transport development.

scholarly journals Low-Cost Carriers – Business Model Development

2015 ◽  
Vol 3 (1) ◽  
pp. 1-5
Author(s):  
Antonín Kazda ◽  
◽  
Mária Mrázová
Keyword(s):  
Business Model ◽  
Business Models ◽  
Low Cost ◽  
Model Development ◽  
Aviation Industry ◽  
Historical Evolution ◽  
Financial Benefits ◽  
Low Cost Carriers ◽  
Business Model Development

This paper deals with low-cost airline business model that has overwhelmingly been the favoured mode of the airline. Fast-changing aviation industry forces low-cost carriers to transform their initial business model and therefore, author stresses further opportunities for the expansion of these models to another direction with more concentration on customer ´s needs as well as company´s operational and financial benefits. One of the most important partial results is analysis of existing low-cost carrier’s business models, describe their historical evolution and propose future modifications to stay competitive and profitable.

scholarly journals THE CONCEPT OF A BUSINESS MODEL FOR AN AIR CARRIER IN SLOVAKIA

2021 ◽  
Vol 9 (2) ◽  
pp. 96-108
Author(s):  
Radovan Baláž
Keyword(s):  
Business Model ◽  
Process Management ◽  
Business Models ◽  
Strategic Decision ◽  
Air Transport ◽  
Aviation Industry ◽  
Model Framework ◽  
Current Trends ◽  
Air Carrier ◽  
List Method

Determining the operating airline's business model is among the strategic decision, particularly for emerging airlines. A suitable and correct business model is an essential prerequisite for the company to establish itself in the market and be competitive successfully. This paper aims to design a specific business model for an air carrier, considered a national air carrier in Slovakia. Slovakia currently has no national air carrier, which would contribute to the development of passenger air transport and would reflect the domestic population's current needs and help increase inbound tourism. The main goal of the designed air carrier is to contribute to the development of air transport in Slovakia and transport a higher number of air passengers, reaching at least an average increments as in other European Union countries. This study proposes a business model framework applied to the conditions of Slovakia, which analyzes the main trends identified in the literature for designing business models for airlines abroad. In examining various studies, we have identified aspects of business models and the main models used by airlines abroad. We used general methods to process information and assess current trends in air transport. In the study, we apply the list method and the inventory method, focusing on new trends and process management methods in the aviation industry. Finally, we developed a business model for a potential air carrier operating in Slovakia from the acquired knowledge.

scholarly journals The impact of the COVID-19 pandemic on the business models of regular air carriers

2021 ◽  
Author(s):  
Marko Chovanculiak ◽  
◽  
Matúš Materna
Keyword(s):  
Business Model ◽  
Business Models ◽  
Air Transportation ◽  
Air Transport ◽  
Natural Activity ◽  
Individual Type ◽  
Transport Carrier ◽  
The Impact ◽  
Air Carriers ◽  
Model Characteristic

This paper analyzes the changing characteristics of air transportation business models due to the COVID-19 pandemic. These characterics differ with each kind of the air transport carrier. It was possible to observe the changes of the business models characteristics even sooner, during the hybridization. As regards the business models hybridization, it's given that with individual type of carriers it's rather natural activity, resulting from the need of increasing profits, reducting costs or simply the effort to successfully enter the different market. With the business model characteristic changes due to the pandemics it's rather about the forced changes triggered by the need to adapt to the current situation. Each air transport carrier bussiness model characteristics are introduced, followed up by the analysis of their changes. These changes were or are induced by the need to adapt or to completely change their behavior in the pandemic affected time. The analytical part of the paper provides easily understandable results of the air transport carrier’s behavior. It is possible to observe what the carriers are capable and willing to undertake in order to keep the customer. This paper ultimately introduces the forced changes, the air transport carriers had to accede in order to save the business from bankruptcy as well as how it would be possible to adapt their provided services in future.

scholarly journals Approaches to changes in business-model by applying digital technologies

2021 ◽  
pp. 161-169
Author(s):  
T. Baigarin
Keyword(s):  
Theoretical Analysis ◽  
Business Model ◽  
World Economy ◽  
Business Models ◽  
Digital Technologies ◽  
Scientific Work ◽  
Digital Transformation ◽  
The World ◽  
Trading Activities

The purpose of the study is to disclosure of the essential incentives for digital transformation of traditional business models in the modern conditions of the world economy development and to form a model of digital transformation of the company's trading activities.Methodology. The scientific work is based on the method of theoretical analysis of research by modern authors regarding the features in the field of digital transformation of business models of companies.Originality / value of the research. Values and prerequisites for digital transformation of business models of trade organizations have been determined. The advantages of this transformation in the system of long-term planning and management of the organization are highlighted.Findings. The basic business model of digital transformation has been identified and refined. The specification of the organization's business model key components in the context of digital transformation of operating activities has been determined.

Competitiveness in the era of global digitalization

2020 ◽  
pp. 30-40
Author(s):  
E. Smirnov
Keyword(s):  
International Economic ◽  
International Business ◽  
World Economy ◽  
Development Strategies ◽  
Global Market ◽  
Antitrust Policy ◽  
Economic Dynamics ◽  
Digital Platforms ◽  
The World

In the context of digitalization in the world, competition is intensifying, lead-ing to a significant transformation of international business and a change in the development strategies of global digital platforms in the global market. The article analyzes and summarizes the prevailing approaches to competition and antitrust policy in the context of the “platformization” of the world economy and its impact on international economic dynamics.

Artificial Intelligence as a Growth Engine for Health Care Startups: Emerging Business Models

2018 ◽  
Vol 61 (2) ◽  
pp. 59-83 ◽  
Author(s):  
Massimo Garbuio ◽  
Nidthida Lin
Keyword(s):  
Artificial Intelligence ◽  
Health Care ◽  
Business Model ◽  
Value Creation ◽  
Critical Analysis ◽  
Business Models ◽  
Health Conditions ◽  
The World ◽  
The Future

The future of health care may change dramatically as entrepreneurs offer solutions that change how we prevent, diagnose, and cure health conditions, using artificial intelligence (AI). This article provides a timely and critical analysis of AI-driven health care startups and identifies emerging business model archetypes that entrepreneurs from around the world are using to bring AI solutions to the marketplace. It identifies areas of value creation for the application of AI in health care and proposes an approach to designing business models for AI health care startups.

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