Stepping Up and Stepping Out of COVID-19: New Challenges for Environmental Sustainability Policies in the Global Airline Industry

The allure for businesses to jettison short-term costly processes, regulatory demands and green business practices (GBPs) in the turbulent times of COVID-19 remains sky high. Although GBPs and eco-friendly policies deliver results in the long term in terms of market competitiveness (MC), in many industries firms have sought to jettison well-rooted practices in the face of the existential threats stemming from COVID-19. In this paper, we examine the new contemporary challenges of adopting and implementing environmental sustainability policies in the global airline industry in the wake of COVID-19. The analysis sheds light on firms’ level sustainability initiatives such as upgrading to environmentally friendly aircraft and offsetting emission footprint, and institutional initiatives such as the European Union Emissions Trading System and the Carbon Offsetting and Reduction Scheme for Aviation. Our analysis demonstrates that some airlines and industrial bodies sought to sidestep environmentally friendly commitments and practices to overcome new challenges such as cost pressures, survival threat and deprioritising environmental sustainability initiatives. We establish and examine the implications of the analysis

The Role of Secondary Airports for Today's Low-Cost Carrier Business Models: The European Case

One of the core characteristics of Low-Cost Carriers (LCCs) is their use of secondary and regional airports. However, nothing is fixed as the market constantly evolves and carriers modify their strategies in order to achieve growth. This paper uses the examples of Ryanair, easyJet and Norwegian to show how changes to LCC business models are affecting secondary airports across Europe. Using a content analysis, this paper first describes how airport choice factors for LCCs have evolved over the last 10 years. This is followed by a data analysis of historical and current airline network capacity to identify how LCC traffic at secondary airports is developing. The paper finds that cost, demand and efficiency are still the most important criteria for LCCs when choosing an airport to operate from. However, it also identifies that LCCs have become more interested in serving business passengers, which is why they are increasingly using primary airports (accounting for 58% of their recent capacity growth). Through the use of a selection of case airports it is finally concluded that the evolution of LCCs increases competition between primary and secondary gateways. In most cases, secondary airports are losing a significant amount of LCC traffic and only sustain flights to less important destinations. This research puts into question the future importance of secondary airports for LCCs. As not all airports have been impacted by the hybridisation of LCCs to the same extent, the results are not equally applicable to the whole European airport industry

The Acceptable Limits of State Interference in Private Property Rights During Periods of Economic Crisis

The power of the state to compulsorily acquire the privately held real property of citizens is recognised in numerous developed democracies. However, the exercise of this power remains extremely controversial. In most jurisdictions the state’s power to compulsorily acquire private property is limited to instances of necessary public good. In many instances, such as hospitals or railways, a necessary public good is clearly identifiable. However, successive United States Supreme Court judgments have expanded the definition of public good to include redevelopment which is primarily to the benefit of another private party. The Supreme Court judgment in Kelo v. City of New London sparked a political outcry which led to severe limitations being placed on the power of state authorities to compulsorily acquire property for private redevelopment. Given the jurisprudence of the Irish Supreme Court in cases such as Clinton v An Bord Pleanála and others it is likely that the attitude of the Irish courts would be similar to that of their American counterparts in Kelo. Proponents of the Coase Theorem argue that the state should take a secondary role in such property disputes, leaving resolution to be achieved through private bargaining between the parties. However, this approach is predicated on an illusion of minimal transaction cost. The effectiveness of such an approach also declines as the distance between the parties to the transaction increases. Furthermore, property rights cannot be understood in purely economic terms. The role of law must be to delineate property rights in a manner which takes account of, and balances, private economic and other arguments such as community cohesion, economic development and social justice concerns

Stimulation or saturation? Perspectives on European low-cost airline market and prospects for growth

The growth of European low-cost carriers is analysed and it is shown that they have been more successful in some markets than others. New routes are now tending to dilute existing demand

Do dedicated low-cost passenger terminals create competitive advantages for airports?

Traditionally designed for network carrier operations, airports are increasingly diversifying their services with new facilities being developed, specifically, to attract and accommodate low-cost carriers. In order to reflect the changing environment, some airports have built low-cost terminal facilities (or refurbished existing ones) for low-cost carriers. Applying a resource-based view, namely the VRIO framework (VRIO is an acronym for Value, Rarity, Imitability and Organisation), this paper analyses the potential of dedicated low-cost terminals in affecting the competitive positioning of airports. The research investigates for selected airports the potential benefits associated with the development of low cost passenger terminals and the factors which may help turning these benefits into a (sustainable) comparative advantage. It is argued that low-cost terminals offer a temporary competitive advantage which has so far not often been exploited