Search

Discounts during Thanksgiving and Christmas are common in a variety of retail markets. In this article, we examine whether holiday discounts extend to the airline industry. In contrast to many retail markets where purchased goods are meant for immediate consumption (e.g., groceries), goods in airline markets are often consumed in the future due to advance purchases. Exploiting a unique panel of almost 22 million fares, we find that fares purchased on a holiday for flights in the 60‐day period following the holiday are 1.9% cheaper, supporting the conjecture that airlines price discriminate when demand is lower than average or when the mix of purchasing passengers makes demand more elastic. These holiday discounts also do not vary with the level of competition, indicating that market structure has no impact on the magnitude of the holiday purchase discount. [ABSTRACT FROM AUTHOR]

The aim of this study is to examine the impact of the Covid-19 pandemic on the financial performance low-cost airlines. Within the scope of the research, quarterly data for the period 2019Q4-2021Q4 were used. In the research process, firstly, the financial indicators of low-cost airline companies were weighted with the Critic method, and then the financial performance of the related companies was compared with the Aras method. The findings obtained as a result of the research show that there are differences in the financial performance of low-cost airlines during the Kovid-19 period. Small-scale lowcost airlines such as Air Arabia, Air Asia X, Norwegian Air, Cebu Air were found to have the best financial performance in different periods, while medium-sized low-cost airlines such as Easyjet and Gol Linhas had the worst financial performance. There was no significant change in the financial performance of large-scale low-cost airlines such as Southwest Airlines, Ryanair and Jetblue Airways. [ABSTRACT FROM AUTHOR]

In the tourism sector, travel agent's managers often set meeting customers' demand as a top priority and often get discounts from airlines and the discounted fare on each flight depends on their booking, whereas, customers have their request in terms of travel time and cost. This study addresses the network reliability, the probability that the given demand can travel from an origin to a destination within the time threshold and the travel cost after discount does not exceed the budget, to indicate travel agents' ability on satisfying customers' demand under specific constraints. To calculate the network reliability, this work develops an algorithm, which determines all lower boundary points via the minimal concept. An air transportation system of the travel agent is constructed as a flow-network consisting of sets of nodes (airports) and arcs (flights). On each flight, there exists a contracted airline providing the service with stochastic capacity and corresponding probability. The flow-network in this study is typical stochastic, called a stochastic-flow air transportation network. A real case for the proposed algorithm demonstration and some management suggestions of the network reliability are provided. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to explore the role of consumers' expectation violation in brands' negative eWOM management on social media. The effects of brand feedback strategies (i.e. compensation and causal attribution) and brand type (i.e. full-service vs low-cost) in consumers' expectation violations and the impact of such violations on consumers' satisfaction and responses to a brand (i.e. brand love and brand hate) were examined. Design/methodology/approach: This study used a 2 (causal attribution: external/brand) × 2 (compensation: present/absent) × 2 (brand type: low cost vs full service) × 2 (industry: airline and hotel) between-subjects experimental design. Findings: Results indicated that the presence (vs absence) of compensation can result in positive consumer expectation violations, which can lead to consumer satisfaction and brand love. Alternately, the absence of compensation can result in negative consumer expectation violations, which can lead to consumers dissatisfaction and brand hate. Moreover, brand type (i.e. full-service vs low-cost) significantly interacted with the presence of compensation in influencing consumers' responses. The attribution of the cause did not significantly influence consumers' responses. Practical implications: This study highlights the importance of knowing consumers' expectations when responding to negative eWOM on social media. Offering compensation is an effective strategy for restoring consumer satisfaction. Specifically, for low-cost brands, offering compensation can lead to even more favorable responses. Originality/value: This study pioneers in exploring the roles of different brand feedback strategies and brand type in influencing consumers' responses to brands' handling of negative eWOM. This study revealed the underlying mechanism through the theoretical lens of expectancy violation and examined the impact of expectation violations on consumer satisfaction and brand love and brand hate. [ABSTRACT FROM AUTHOR]

Aviation in Thailand after the spread of the Covid-19 has drop of 81.7 percent in international and domestic passengers in year 2020.Airlines must develop strategies to get passengers to use their services once more when more people are flying in order to generate revenue. The purpose of this research is to compare the various preventive measures in order to stop the spread of COVID-19implemented by four low-cost airlines in Thailand and how passengers perceive them. Online questionnaires were used to collect the quantitative data of 400 sample groups. The findings revealed the perception of the passengers that all four low-cost airlines had the same protective measures in place to stop the spread of the 2019 Coronavirus Disease (COVID-19) including measures to prepare the aircraft, screen passengers, manage passenger density, and prepare for emergencies. However, these low-cost airlines employ a variety of preventative measures, such as hygiene regulations for on-board service employees, Service precautions before to boarding, Cabin service measure and passenger hygiene measure. The Civil Aviation Authority of Thailand can use the study's findings to help create regulations and standards for safeguarding the safety of passengers in critical epidemic conditions like the coronavirus pandemic (Covid-19).

The outbreak of the COVID-19 (Corona Virus Disease 2019) has been becoming the most serious public health event in the world, threatening the health of hundreds of millions of people. The anti-pandemic policies mostly aim to prevent the spread at domestic and the import from abroad. In this paper, we discuss the issue of individual protection measures and customs quarantine strategy based on game theory. First, we develop a 2*2 Bayesian model and show that individual protection decisions depend on the size of excess payoff of taking protective measures (EPP). EPP is affected by the protection cost, the protective efficiency, the risk exposure and the information disclosure in this model. Then, we describe a repeated game between customs and airlines, and discuss the ideal strategy for customs to prevent the virus input. It comes out that a punishment mechanism for an airline is meaningful to prevent the import of the virus only if the discount rate of the airline is greater than the threshold. The threshold is positively correlated with the detection cost, and it is negatively correlated with the revenue of the airline and the testing reliability. We can also benefit from establishing a credit mechanism to give airlines that deviate from cooperation an opportunity to re-cooperate, especially for those in low risk areas. This study provides theoretical support for some government policies to prevent COVID-19, and underscores the significance of considering individual and organizational decision-making in health policy making. [ABSTRACT FROM AUTHOR]

The de-bundling and re-bundling of service products offered by low cost carriers from service innovation have become 'à-la-carte' services and chargeable ancillary services to generate additional revenues in the airline industry. In this paper, we focus on the payable upgrade option in airlines to increase revenue when customers' demands are uncertain. This study is as an extension of planned upgrade, which guarantees the use of low-quality services at a low price, but requires customers to pay to use upgraded benefits. In this paper, we focus on the seat assignment problem with the payable upgrade option to maximize revenue. Also, we set the condition under which payable upgrade options can generate more revenue. Furthermore, applying Belobaba's EMSR approach, we suggest an effective seat assignment method for multiple fare classes with a payable upgrade option to increase the total revenue. With a simple numerical example, we find that introducing a payable upgrade option can increase the revenue. Our method for allocating seats for multiple fare classes with a payable upgrade option can contribute effectively to revenue increases in airlines' branded fare products, as well as in other service industries. [ABSTRACT FROM AUTHOR]

The industry level impact of Political decision makers is observable in the liberalization of the European Union (EU) commercial air transportation industry and during the BREXIT. In this study, it is aimed to understand how the BREXIT process, which was initiated in 2016 affects the resource dependencies of UK-based low-cost airlines. Consequently, an evaluation was made with the perspective of Resource Dependency Theory (RBT). Thus, Easyjet and Ryanair airlines were taken as a sample. Airlines’ strategies to reduce resource dependencies and reuncertainties on resources after BREXIT were tried to be determined from their reports. With the BREXIT process, it has been understood that low-cost businesses are faced with a serious uncertainty in accessing the EU domestic market, human resources to find flight crews, and spare parts needed for maintenance and repair. In order to manage these uncertainties, firms have rearranged their ownership conditions by changing the board of directors. In addition; direct investments, partnerships and complete acquisitions in the EU countries are adopted as growth strategies. Furthermore, it has been observed that lobbying and setting public opinion as one of the activities, were adopted by low cost airlines to influence decision-makers of BREXIT. [ABSTRACT FROM AUTHOR]

This article examines US airline mergers between 1993 and 2018 and studies their impact on the labor market. Our difference‐in‐differences estimates indicate a significant reduction in the merging airlines' long‐term wage and fringe benefits following the mergers. The effect is particularly salient among large‐scale mergers involving major airlines and low cost carriers. The results also suggest a negative short‐term employment impact of mergers that varies by occupation types. Our findings are consistent with the impact of merger‐induced monopsony power discussed in recent literature and offer important policy implications regarding how to account for employer monopsony power during mergers and acquisitions. [ABSTRACT FROM AUTHOR]

There is an increasing number of studies in relations to emotional intelligence and management. Moreover, various factors in an organization that are affected by the employees' emotional intelligence are the topic of interest. As the researcher’s experiences in airline business, this study aimed to find the relationship among emotional intelligence and organizational commitment of managers in the airline business. Data was collected from 60 ground attendants of different airlines in Suvannabhum airport in Thailand using questionnaire method. Emotional intelligence and organizational commitment scale developed by Allen and Mayer (1990), were used as tools for data collection. The result indicated that ground attendant managers in both low cost and full service airlines had no significant difference on emotional intelligence scale. Hence, the full service airline ground attendant managers had higher level of organizational commitment than ground attendant managers of low cost airlines. The results also revealed that there was a positive relationship between emotional intelligence and the organizational commitment of ground attendant managers. This study developed suggestions for additional research, provide practical advice for airlines about the management of ground attendants’ emotional intelligence. [ABSTRACT FROM AUTHOR]

The COVID-19 (Coronavirus Disease) has negative economic, social and political impacts on the avia-tion industry, as in many other industries. Airlines are suspending their flights due to the continuing effect of the pandemic. The reactions of airline operators in the face of an unforeseen crisis and the strategies that they are implementing are critical in terms of maintaining their future positions and getting out of the crisis without much damage. In the study, four airline companies from the European region were selected and their responses in the COVID-19 pandemic process were investigated. It was aimed to determine the managerial responses and measures implemented by the airline companies selected within the scope of low cost and traditional airline business models during the pandemic. The research was conducted with the method of multiple case analysis within the scope of descriptive case analysis design and document analysis method was used within the scope of qualitative research methods. Content analysis was carried out by examining the news and announcements released on the corporate websites of the airline companies. As a result of the study, it has been revealed that airline companies generally adopt similar strategies within the scope of flight status, reservation and ticket options, measures taken and special lounge services provided. For personnel; Lufthansa and Ryanair appear to be implementing similar strategies such as unpaid leave, wage cuts and layoffs. [ABSTRACT FROM AUTHOR]

The French airport lanscape includes large international airports (Roissy Charles de Gaulle), large regional airports (Toulouse Blagnac) and local airports. Furthermore, the policy of decentralization has modified the terms of ownership and management of these airports. In this heterogeneous landscape, the regional authorities seem to become an important stakeholder, particularly because they improve their skills in land use planning, as shown by the example of “law NOTRe.” The aim of this article is to establish this fact through the case of the Occitanie region. The methodology is based on statistical data and interviews with air transport professionals. This case illustrates the limits that regional authorities face due to competition between airports, competition that was created mainly by low cost airlines and the omnipresence of the state in this sector. A closer look at this regional policy reveals the need for legitimacy of this new region, created in 2016, declaring itself leader of the regional airports policy.

During the past decade, the proliferation of low-cost carriers (LCCs) and the related huge increase in traffic has been the most visible effect of the deregulation of the airline market in Europe. Little attention has been paid to how airports were affected by the changes in the new institutional environment. In this study, we model the total factor productivity (TFP) for a panel of the largest airports in the UK over the 2002–2005 period and investigate whether the presence of LCCs had some impact on airports’ TFP. Empirical results are consistent with the hypothesis that conspicuous entry of LCCs on European markets has impacted positively on the vertical chain by facilitating airports’ productivity improvements. This result is robust to reverse causality issues associated with the possibility that the most efficient airports are those that are more likely to attract LCCs. Different possible arguments may explain our results: traffic increases brought about by LCCs for a given installed capacity might have generated higher TFP; more efficient organizational models might have been adopted to meet LCCs operational requirements (short turnaround times); cost reductions might have been realized to lower charges and attract LCCs; and competition from a larger number of airports induced by LCCs’ wider catchment areas (with respect to full service airlines) might have exerted further pressure toward TFP improvements. [ABSTRACT FROM PUBLISHER]