Study of the full-service and low-cost carriers network configuration

Purpose: The network strategies used by airline carriers have been a recurring subject in air transport research. The aim of this paper is to investigate the relationship between the different operational characteristics of the airline and its route network configuration. Design/methodology/approach: The two main airline carrier typologies - Full-Service and Low-Cost carriers – are analysed using empirical models developed on complex network research relating them to the business model of the airlines. Findings and Originality/value: Just in Europe, one can differentiate between Full-Service and Low-Cost Carriers by complex network analyses. In this process, it has been also found that new concept Low-Cost Carriers, such as Vueling, have network properties closer to Full-Service Carriers. Research limitations/implications: This paper has a limited sample, as includes 26 airline case studies from Europe, United States and Asia. Practical implications: The analysis carried out in this research can help to the assessment of the evolution of the strategies of airline carriers, and has also operational implications, since the configuration of an airline route network can determine its resilience to attacks and errors.Social implications: A better understanding of the properties of airline route networks can benefit airlines, passengers and another stakeholders of the air transport industry. Originality/value: Current research on air transport networks has only considered the global or regional level, but few studies have addressed the study of airline transport networks, and its relationship with their business model.Peer Reviewe

The Performance of European Full Service Airlines after Liberalisation: An Econometric Analysis

Deregulation in the airline industry has forced full service airlines to change their strategies in order to respond to increasing challenges. In this paper, an econometric analysis of the possible determinants of economic performance of full service airlines after liberalisation has been carried out. A fixed effects model was used and the performance of ten European full service airlines has been analysed over a period of 11 years. Variables considered in this analysis were the number and type of aircraft in the fleet, the number and type of destinations, investments, number of employees and alliances. The analysis suggests that full service airlines should adjust fleet composition and re-organise operations on their routes in order to react to the increasingly competitive environment.

Flight evaluation of two-segment approaches using area navigation guidance equipment

A two-segment noise abatement approach procedure for use on DC-8-61 aircraft in air carrier service was developed and evaluated. The approach profile and procedures were developed in a flight simulator. Full guidance is provided throughout the approach by a Collins Radio Company three-dimensional area navigation (RNAV) system which was modified to provide the two-segment approach capabilities. Modifications to the basic RNAV software included safety protection logic considered necessary for an operationally acceptable two-segment system. With an aircraft out of revenue service, the system was refined and extensively flight tested, and the profile and procedures were evaluated by representatives of the airlines, airframe manufacturers, the Air Line Pilots Association, and the Federal Aviation Adminstration. The system was determined to be safe and operationally acceptable. It was then placed into scheduled airline service for an evaluation during which 180 approaches were flown by 48 airline pilots. The approach was determined to be compatible with the airline operational environment, although operation of the RNAV system in the existing terminal area air traffic control environment was difficult

The Revenue and Cost of the Airline Company

The airline industry is characterized by a number of business models with the most prominent being the Full Service Network Carriers (FSNC) and Low Cost Carriers (LCC) models. The main difference between full service network carriers and low cost carriers is how the airline companies operation their revenue and cost.The advanced developments in telecommunications, air pollutions and the competition of high rail are three new challenges for the airline industry globally while an increasing passengers and the government policies are two big issues for Asia/Pacific regional airline companies. The fuel price and human-related costs are two big issues affecting the company’s cost. Code-sharing and advertising are two possibly ways in increasing company’s revenue, cutting down the fuel cost, advertising costs, controlling the human cost and cooperating with airports are four possibly ways in reducing company’s cost

The strategic evolution of Aer Lingus from a full-service airline to a low-cost carrier and finally positioning itself into a value hybrid airline

Aer Lingus has been an unique airline as it transitioned from a full-service airline to a low-cost carrier and is currently positioned as a value hybrid airline. It has coexisted with Ryanair for decades and it encountered three imminent periods where bankruptcy prevailed from 1993 to 2009. The research aims to uncover the various strategies that were applied to structurally re-engineer the carrier in order to adapt to its evolving competitive landscape. The key pillars underpinning Aer Lingus’ turnaround as a value hybrid were as follows: strict adherence to capacity discipline; relentless cost control and value-adding, consumer-driven product differentiation; innovative partnerships including contract flying to alleviate its problematic seasonality issues inherent in Aer Lingus markets; and by re-engineering its Dublin-based hub airport. A visionary master plan for the hub was fabricated to capitalize on Ireland’s geographical positioning which targeted the traffic flows between UK/European and North American destinations through its synchronized connection network at Dublin

Comparison of Power Influence Factors Shaping Loyalty Indonesian Domestic Airlines

Passenger perception of the quality of airline service LFA lower than the FSA for airline passengers pay the ticket realized with relatively cheaper rates. This study aimed to analyze the differences in causality between variables expected to affect the flight of customer loyalty. By using Structural Equation Modeling (SEM) this paper examines the relationship causal constructs quality of service, price, and satisfaction, to the image as well as customer loyalty and LFA, FSA flight. The results indicate that there are differences in causality between customer loyalty models of FSA with LFA. The quality of service and price together create satisfaction and encourage the creation of a good image in the minds of passengers FSA and LFA. Quality of service has a greater influence on satisfaction than the price effect and the direct effect on the image quality of service is greater than its indirect effect through satisfaction. FSA found that customer satisfaction does not encourage loyalty, customer satisfaction LFA opposite effect on passenger loyalty. Keywords: Customer Satisfaction, Customer Loyalty, Low Fair Airline, Full Service Airline

Carve-Outs Under Airline Antitrust Immunity

This paper offers the first formal economic analysis of carve-outs under airline antitrust immunity. Carve-outs are designed to limit the potential anticompetitive effects of cooperation by alliance partners in hub-to-hub markets, where they provide overlapping nonstop service. While the paper shows that carve-outs are beneficial when the alliance does not involve full integration of the partners' operations on the hub-to-hub route, its key point is that a carve-out may be harmful when imposed on a joint-venture alliance. A JV alliance involves full exploitation of economies of traffic density on the hub-to-hub route, and a carve-out prevents the realization of these benefits. While a carve-out may limit anticompetitive incentives on the hub-to-hub route, welfare may be reduced if the resulting gains are overshadowed by the efficiency loss generated by the carve-out.Carve-out; Antitrust immunity; Airline alliances

Upaya Maskapai Garuda Indonesia Bergabung dengan Aliansi Global Skyteam dalam Pemasaran Brand

This research purpose is to explains about the efforts of Garuda Indonesia airlines to join the global airline alliance SkyTeam in brand marketing. It observe the effort attempted by Garuda Indonesia airlines to join the global airline alliance SkyTeam to strengthen the reputation of Garuda Indonesia as a world class airlines. It is a qualitative method by exerting the paradigm from service liberal and full service concept from garuda Indonesia enterprise. the theory applied in this research are Contingency theory by Tannenbaum and Schmidt. This study focused on strategy used by Garuda Indonesia to join the global airline alliance SkyTeam in brand marketing by examining the economic side, which is the modernization of air transport models. The search for the revitalization unit to reach 154 units in 2015 to compete with other companies. With the new units, the increase in passengers will increase as well not only domestic but also international. It also ensures a more comfortable and provide cost than before. Garuda Indonesias program named Quantum Leap, covering the aspects of safety, systems, facilities and human resources also made an effort to join the global airline alliance SkyTeam. Introducing the program of Garuda Indonesia Experience has a purpose to distinguish the full service carrier of Garuda Indonesia with others. By giving cultural perception of Indonesia for domestic and international, introducing the culture itself to the tourist who come to Indonesia and also having good facilities in every unit, it will be reinforce the brand of enterprise.Key Word: efforts, garuda Indonesia, global airline alliance, skytea

Customer satisfaction and loyalty in the airline industry: A case study of Malaysia Airlines (MAS) and Air Asia

This case study has been conducted for the purpose of examining the differences of customer satisfaction and customer loyalty between Malaysia Airlines (full service airline) and Air Asia (low cost airline) in Malaysia.152 usable questionnaires were obtained from respondent at two major airline terminals in Kuala Lumpur. The descriptive data analysis and statistical findings revealed that three dimensions were found to be critical in relation to customer satisfaction and customer loyalty between Malaysia Airlines (full service airline) and Air Asia (low cost airline) in Malaysia.The factors are service quality, price and services capes.Generally, respondents gave different levels of satisfaction with service quality provided by Air Asia but Air Asia was perceived better than Malaysia Airlines price wise. On the other hand, Malaysia Airlines was perceived better in service quality.Meanwhile, both airline consumers accept the services capes of both airlines.The paper highlights some of its theoretical and managerial implications of the development of airline industry

Impact of information system on firm's performance: Small and Medium Enterprises (SMEs) in Bangladesh

Today the airline industry is one of the fastest and largest growing industries in the world because of its importance in facilitating national and international relation among st countries, Tangibles, Reliability, Competence, Responsiveness, and Empathy are the core characteristics of service industry.In line with the international standard parameters the study which to recommend to the airline industry to enhance the level of customer satisfaction, customer royalty and customer retention in the industry by providing safety of their life and property, restore full confidence on their quality of service delivery and delight their existing customers in order to attract potential customers