AIRLINE INDUSTRY STRATEGIES, OPERATIONS AND SAFETY

AIRLINE INDUSTRY STRATEGIES, OPERATIONS AND SAFETY

CONTENTS

PREFACE

Chapter 1 A FINANCIAL HISTORY AND ANALYSIS OF THE U.S. AIRLINE INDUSTRY

ABSTRACT

I. INTRODUCTION

II. A BRIEF FINANCIAL HISTORY OF THE U.S. AIRLINE INDUSTRY

A. The Paradox of the Airline Industry

B. The Pre-Regulation Period (1914-1938)

C. The Period of Regulation (1938-1978)

Regulation of entry into a market

Regulation of exiting from a market

The regulation of services

The regulation of prices

The beginning of deregulation

D. The Post-Regulation Period (1978-2001)

E. The Post-Terrorist Period (2001 - Present)

III. EARNINGS BEHAVIOR AND DIVIDENDS IN THE AIRLINE INDUSTRY

A. Earnings Behavior in the Airline Industry

Prior literature

Descriptive statistics

Data and methodology

Results

Summary and implications

B. Dividends in the Airline Industry

Prior literature

Methodology

Results

Summary and implications

IV. THE RISKS OF AIRLINE OWNERSHIP

Prior Literature

Regulatory effects

Inflationary and airline safety effects

Data and Methodology

Difference of means regressions

Market risk

Results

Summary and Implications

V. FINANCING DECISIONS IN THE AIRLINE INDUSTRY

A. Leverage, Economic Regulation and Shareholder Wealth

Prior literature

Data and methodology

Results

Summary and implications

B. Does the Use of Operating Leases Create Value?

Data and methodology

Results

A note on the tax consequences of debt versus operating leases

VI. SUMMARY, IMPLICATIONS AND EXTENSIONS

REFERENCES

Chapter 2 AIRLINE OPERATIONS CONTROL: A NEW CONCEPT FOR OPERATIONS RECOVERY

ABSTRACT

1. INTRODUCTION

2. SUMMARY OF RELATED WORK

2.1. Operations Recovery

2.2. Other Application Domains

3. AIRLINE OPERATIONS CONTROL

3.1. Airline Scheduling Problem

3.2. AOCC Organization

3.3. Typical Problems

3.4. Current Disruption Management Process

3.5. Main Costs Involved

3.6. Current Tools and Systems

4. A NEW CONCEPT FOR OPERATIONS RECOVERY

4.1. Introduction

4.2. Why an Agent and Multi-Agent System Paradigm?

4.3. MAS Architecture

4.4. Decision Mechanisms

4.4.1. Manager agents level negotiation

4.4.2. Team level negotiation

4.5. Quality Operational Costs

4.5.1. Quantifying Quality Costs

4.5.2. Airline example

4.6. Problem Solving Algorithms

5. EXPERIMENTAL SETUP

6. RESULTS AND DISCUSSION

7. CONCLUSION

ACKNOWLEDGMENTS

REFERENCES

Chapter 3 OUTSOURCING STRATEGIES OF FULL-SERVICE AIRLINES: AN APPLICATION OF TWO THEORETICAL PERSPECTIVES

INTRODUCTION

THE INDUSTRY CONTEXT

THE THEORETICAL UNDERPINNINGS OF OUTSOURCING

THE INVESTIGATION

FINDINGS AND DISCUSSION

MAJOR ORGANISATIONAL FUNCTIONS OF INTERNATIONAL AIRLINES

1. Plane Acquisition and Ownership

2. Engineering and Aircraft Maintenance

3. Customer Sales and Ticketing

4. In-Flight Catering

5. Corporate Identity and Brand Management

DISCUSSION AND CONCLUSIONS

REFERENCES

Chapter 4 THE PRICING STRATEGY OF RYANAIR

ABSTRACT

1. RYANAIR’S BUSINESS MODEL

1.1. Deregulation and LCC Spread

1.2. Ryanair History

Historic facts

Ryanair economic performance

1.3. Success Factors

Market opportunity recognized

Strategy

1.4. Network Structure

2. THE PRICING STRATEGY OF RYANAIR

2.1. Methodological Aspects

2.2. Empirical Findings

CONCLUSIONS

REFERENCES

Chapter 5 MEASURING AND BENCHMARKING AIRPORT EFFICIENCY: AN APPLICATION OF DATA ENVELOPMENT ANALYSIS (DEA) AND STOCHASTIC FRONTIER ANALYSIS (SFA)

ABSTRACT

1. INTRODUCTION

2. BACKGROUND

3. MODEL VARIABLES

4. THE DATA ENVELOPMENT ANALYSIS MODEL

4.1. The Characteristics of the DEA Model

4.2. An Illustration of a DEA Model

5. THE STOCHASTIC FRONTIER ANALYSIS MODEL

5.1. The Characteristics of the SFA Model

5.2. An Illustration of an SFA Model

2.1. The Model

2.2. Interpretation of the Model Outputs

6. CONCLUSION

REFERENCES

8. APPENDIX

Chapter 6 EVIDENCE-BASED PROCESS (EBP) CONSIDERATIONS OF HYPOXIA DURING FLIGHT FOR FLIGHT NURSES: THE AEROHEMODYNAMICS THEORY REVISITED

ABSTRACT

AEROHEMODYNAMICS THEORY

Definition

Applicability to Broad Scope of Practice

CONCEPTS

Acceleration Forces

Nursing Challenges- Acceleration Stress

Barotrauma

Nursing Challenges

Thermostability

Nursing Challenges

Gaseous Toxicities, Diffusion and Vacuolization

Nursing Challenges

Radiation Exposure

Nursing Challenges

Psychosocial Considerations

Nursing Challenges

Aerohemodynamics Theory Effect Equation

Acceleration Force Changes

Motion Sickness Susceptibility

Barotrauma

Thermostability

Gaseous Toxicities

Radiation and Other Safety Hazards

NURSING IMPLICATIONS

NURSING RESEARCH

CONCLUSION

REFERENCES

Chapter 7 CORPORATE SOCIAL RESPONSIBILITY REPORTING OF ASIAN AIRLINES

ABSTRACT

1. INTRODUCTION

2. CORPORATE SOCIAL RESPONSIBILITY

3. METHOD

4. RESULTS

4.1. CSR Reporting Formats

4.2. CSR Organization

4.3. The Marketplace

4.4. Workplace

4.5. Community

4.6. Environment

5. CONCLUSION

REFERENCES

Chapter 8 SERVICE QUALITY AND INTERNAL DIFFERENCES AMONG MEMBERS OF THE AIRLINE ALLIANCES

ABSTRACT

INTRODUCTION

HYPOTHESES

RESULTS

CONCLUSION

REFERENCES

Chapter9DAYS ONANDDAYS OFFSCHEDULINGOFPILOTSUNDERAVARIABLEWORKLOAD

Abstract

1.Introduction

2.BasicCharacteristicsoftheAirlineCrewRosteringProblem

3.Bridgingthegapbetweenscheduleconsistencyandflexibility

3.1.PureCyclicalScheduling

Purecyclicalschedulingintheassumptionofanequaldemand

Purecyclicalschedulingunderavariableworkload

Purecyclicalschedulingcombiningmultipleworkpatterns

3.2.AdhocSchedulingCombiningMultipleFixedWorkPatterns

3.3.Subdividingtheworkforceintodifferentgroupsforcrewrostering

3.4.Extensionwithan’adhoc’RosteringComponent

4.ConclusionsandFutureResearch

Acknowledgments

References

Chapter10PRICINGANDTRAVELERS’DECISIONTOUSEFREQUENTFLYERMILES:EVIDENCEFROMTHEU.S.AIRLINEINDUSTRY

Abstract

1.Introduction

2.FrequentFlyerPrograms

3.EmpiricalApproach

3.1.SourcesofDataandSample

3.2.ModelSetup

3.3.EstimatedEquationandPanelStructure

3.4.Instruments

4.EmpiricalResults

4.1.SummaryStatistics

4.2.TrendandRouteSpecificCharacteristics

4.3.ThePriceEffect

4.4.AirportDominance

4.5.ProductQualityandCapacityConstraints

5.ASimpleModelofthePriceEffect

6.Conclusion

AVariableConstruction

BFirstStageRegressions

References

INDEX