Prospects of Post-Crisis Development of the Passenger Air Transportation Market of the Republic of Azerbaijan

The purpose of the study is to present a model of the prospective development of the passenger air transportation market of the Republic of Azerbaijan in the conditions of overcoming the crisis caused by the negative impact of the COVID-19 pandemic. Based on the analysis of the activities of the national airlines «AZAL» and «Buta Airways», taking into account the statistical data of the passenger traffic growth of the Heydar Aliyev International Airport (Baku), as well as data on the development of the national tourism industry, a model of promising development of directions in the structure of the route network of the Heydar Aliyev International Airport is presented. The result of the research is the construction of a model for the prospective development of new directions in the structure of the route network of the Heydar Aliyev International Airport. The main principles of the post-crisis model of the development of the national market, according to the author, is the need to develop the segment of low-cost air transportation. The presented model of the route network development includes the development of the directions of the national budget airline «Buta Airways», as well as the expansion of cooperation with foreign budget airlines «Fly Arystan» (Republic of Kazakhstan), «Wizz Air» (Hungary), and in addition, the development of cooperation with Russian regional airlines, and first of all with the airline «Azimut» as one of the dynamically developing regional airlines of the Russian Federation.

Subsidized Regional Airlines as a Sustainable Development Mechanism for Remote Locations Heavily Dependent on Air Transportation

The understanding that air transport induces the economic development of a region has motivated studies on regional air transport and the necessary subsidies for its implementation. Several countries have implemented specific subsidy plans with a focus on integrating their territories through a network of air routes, depending on the funding methods and the results of the investments that were made. However, few studies summarize the geographical conditions of the locations served that justify their dependence on air transport as the only viable means of accessibility. This article seeks to identify the geographical characteristics of these locations to illustrate the conditions that justify the need for subsidies for the operationalization of air transport as a mechanism to promote the minimum sustainability conditions for such locations. We collected socioeconomic data of a set of 1365 subsidized routes of 28 countries from the Americas, Asia, Europe, and Oceania and tracing a profile of localities, classified in nine different clusters. The results indicated that isolated locations in islands, in the polar regions and areas of impenetrable forests have an almost exclusive dependence on air transport as a means of access and that justify the maintenance of subsidies to air routes as a fundamental requirement for the accessibility of the population to services of a social and humanitarian nature.

Modeling regional routes with Greek airlines for flight operations to AOE airport

Purpose Research carried out within the scope of the present new emerging optimum market to Greek regional airlines. This study (based on interconnected flight network) aims to provide an optimal alternative for flights to be carried out by small Greek airlines to Eskisehir Airport in Turkey. The airlines seek to sustainable demand base to improve themselves in a profitable way. Design/methodology/approach In this study, the analytical network process method was used. In the construction of network models, specific criteria have been considered, and the analysis has been accomplished as multi-criteria decision-making problem because of the relationship and interaction between them. A number of professionals with high knowledge of the Greek and Turkish aviation market were participated in the study. Findings Both Greek and Turkish experts think that the scenarios should include more airports (multi leg flights) to benefit from the increased traffic from all these destinations. Although, the model showed that more sustainable and effective routes are the simplest ones (single leg flights). Thus, the experts suggested the following five routes: Athens (ATH)-Antalya (AYT)-Eskisehir (AOE)-ATH; Heraklion (HER)-AOE-ATH; ATH-Istanbul (IST)-AOE-Thessaloniki (SKG); ATH-AOE-Cologne (CGN)-ATH and ATH-AOE-Izmir (ADB)-CGN-ATH. In addition, the experts pointed out the routes Eskisehir (AOE)-Brussel (BRU) and AOE-Cologne (CGN), as the passenger demand for them is high. These are considerable suggestions and should be examined by airlines’ managers, while aviation authorities should take these under consideration. Research limitations/implications There are some factors that limit the potential extension of the small Greek regional airlines to Eskisehir airport. Istanbul’s Atatürk International Airport is the most used airport for international connected flight in Turkey, and the most airlines prefer this as a destination airport, although it has slots limitations and intense traffic. According to a previous project, sustainable flight network may include Istanbul and Izmir. Also, the bilateral agreement between Greece and Turkey according to Memorandum of Understanding between the Aeronautical Authorities of the Republic of Turkey and Hellenic Republic consists the main limitation of the traffic increase. Practical implications Connected flight network model suggestions developed in this research may provide contribution to airlines’ research and development activities. Also this kind of studies may contribute to the increase of the passengers’ traffic between the two countries with mutual benefits. Social implications Based on the current study, with determined the grid network flights, new flights can be scheduled that are offering significant benefits. Also passengers will have the ability to travel to an attractive destination. In particular, the study may positively contribute to the further development of AOE and to the region around the city. On the other side, the Greek regional airlines can find an important market. Anadolu University’s entrepreneurship ability will be improved and also AOE’s business will be increased. This study will enforce the stronger links between both Greek [Hellenic (Greek) Civil Aviation Authority] and Turkish (General Directorate of Civil Aviation) aviation authorities. In addition, this study may contribute to the improvement of the economic relations between Greece and Turkey with mutual benefits. Originality/value It is thought that this research shows Greek and Turkish airports feasibility to cooperate providing benefits to passengers, airlines and the countries’ economies. The study includes current social, economic and cultural dynamics of the countries making significant contribution to academic literature. The capacity and demand analysis is useful for the management of the specific Greek carriers. Expert opinions are consulted over the course of taking strategic decisions. The analysis has been conducted, based on expert opinions and referred to for these pairwise comparisons. Airlines and airport managers based on the suggested methodology may examine potential flights, although more numerical data are necessary.