Index
ISBN: 978-1-78973-282-5, eISBN: 978-1-78973-281-8
ISSN: 2212-1609
Publication date: 21 October 2019
This content is currently only available as a PDF
Citation
(2019), "Index", Airline Economics in Europe (Advances in Airline Economics, Vol. 8), Emerald Publishing Limited, Leeds, pp. 247-256. https://doi.org/10.1108/S2212-160920190000008011
Publisher
:Emerald Publishing Limited
Copyright © 2019 Emerald Publishing Limited
INDEX
ACAC Arab multilateral agreement
, 91–92
Air cargo
, 183–184, 185
basic cargo operators
market strategy
, 189
network strategy
, 189–190
product strategy
, 189
stake-holder objectives
, 190
as by-product of passenger transport
, 168
cargo-only airlines
, 169
Cargo Stars
, 196–197
market strategy
, 196
network strategy
, 196–197
product strategy
, 196
stakeholders’ objectives
, 197
‘Carpet Sellers’ cluster group
, 187–189
market strategy
, 188
network strategy
, 188
product strategy
, 187–188
global air cargo industry
, 168
intangible resources in
, 173
large passenger wide-body operators
, 193–194
market strategy
, 193–194
network strategy
, 194
product strategy
, 193
stake-holder objectives
, 194
‘Low Cost Low Yielder’ clusters
, 191–193
market strategy
, 192
network strategy
, 192
product strategy
, 192
stake-holder objectives
, 192–193
market strategy
, 171–173
capacity management
, 171–172
determining geographical markets
, 172
global distribution systems (GDS)
, 172–173
spot available capacity
, 171–172
use of E-portals
, 172–173
network strategy
, 173–174
alliances
, 174
cargo schedules on passenger aircraft
, 173–174
decisions for development
, 173–174
integrators, role of
, 174
route network development
, 173–174
unit cost of operations
, 173
premium cargo operators
, 194–196
market strategy
, 195
network strategy
, 195
product strategy
, 194–195
stake-holders’ objectives
, 195–196
service of Emirates
, 191–192
stakeholders’ objectives
, 189
strategic management in
, 169
AF-KLM Cargo
, 170
cargo alliances
, 170–171
Emirates Sky Cargo
, 170
IAG3 Cargo
, 170
Lufthansa Cargo
, 170
product strategy
, 169–171
yield management
, 170
strategy content framework
cluster analysis
, 179–181
cluster centers
, 180
clustering process
, 181, 182
data set
, 176
key components
, 175, 176
k-means Cluster Analysis
, 179–181
methodology and approach
, 179–181
numeric indicators
, 176–179
strong regionals
market strategy
, 190–191
network strategy
, 191
product strategy
, 190
stake-holder objectives
, 191
tangible resources in
, 173
typology and characteristics of cluster groups
, 186
variable costs in
, 168
Air China
, 190
Aircraft emissions
, 29–30
challenges in reducing
, 30–31
trade-off between CO2 and NOx
, 30
Aircraft noise, EU regulations
, 29
See also Time-differentiated airport noise surcharges
Aircraft with geared turbofan (GTF) engines, economic evaluation of
, 6
Air France
, 193, 196–197
Air France-KLM
, 197
Airline alliances
, 11–13, 118
cargo alliances
, 170–171
cooperation agreements, types of
, 123–124
full alliances
, 124
independent firms
, 123
joint venture
, 124
joint venture with full revenue sharing
, 124
mergers
, 124
soft alliances
, 123
cross-equity partnerships
, 118, 123
impact of
, 118
on interhub markets
, 118
joint ventures
, 118
Air France/KLM
, 118, 127
Alitalia
, 118
Delta/Northwest
, 118
effects of
, 118–119, 124–125
equations
, 128
in interhub markets
, 127, 128
in interline markets
, 127–128
routings
, 127–128
in transatlantic market
, 127
literature review
, 119–120
negative effects of
, 12–13
non-stop routings (interhub markets)
, 118
one-stopover routings (interline markets)
, 118
Oneworld
, 118
SkyTeam
, 118
standard alliances
, 118
Star Alliance
, 118
theoretical model
, 120–125
data and sample
, 126–128
deeper cost-sharing agreements
, 122
effect of joint ventures
, 124–125
empirical application of effect of joint ventures
, 126–130
estimation and results
, 128–130
interhub and interline markets
, 120–121, 128–130
operating cost on a route
, 121–122
presence and intensity of cost sharing
, 122
revenues
, 121
2-airline-2-hub network
, 120–121
unified model of cooperation agreements
, 122–124
vertical and horizontal alliances
, 171
Airline service providers, categorization of
, 2–3
Airline total factor productivity, study
, 92
decompositions of TFP
, 102–103
efficiency change index
, 101
methodology
, 92–95
computation
, 92–93
efficiency change
, 92–93
production technology, defined
, 94
scale economies changes (SEC)
, 93–94
technical change (TC)
, 92–93
panel dataset
, 95–97
stochastic frontier analysis
, 97–101
TFP change index
, 101
after financial crisis, 2008
, 103–104
Asian economic crisis, effect of
, 103–104
averages of efficiency change (EC) and technical change (TC)
, 104, 105
Iraqi invasion of Kuwait, effect of
, 103–104
low cost carriers
, 103
post September 11th, 2001 attack
, 103–104
strategic alliances
, 103
yearly changes in average
, 103–104
Air Namibia
, 205
Airport Charges Directive
, 19
Airport night curfews
, 230, 232–233, 236
Airport noise charges
, 230, 232–233
Air services agreements (ASA)
, 19
Air traffic flow management (ATFM)
, 31
Air transport sustainability
, 28
American Airlines
, 194
A320neo aircraft, benefits of
, 6, 212, 214–217
Barroso Commission
, 10, 26, 31
Basic cargo operators
market strategy
, 189
network strategy
, 189–190
product strategy
, 189
stake-holder objectives
, 190
Birman Bangladesh Airlines
, 205
British Airways
, 50, 196–197, 205, 210, 212
Brussels Airlines
, 187
pricing campaign
, 3–4
battle between Vueling, Ryanair and Brussels Airlines, case study
, 81–87
Brussels Airport
, 3–4
Business Aviation (BA)
, 138–144
Booz Allen Hamilton and German Aerospace Center (DLR) study on
, 143–144
defined
, 138–140
previous studies and research on
, 140–143
regional connectivity benefits
, 160–163
in air ambulances and medical evacuations
, 162
average time savings
, 161–162
time savings between regions of different economic power
, 162–163
for WingX
, 161
structure and macroeconomic impact of
, 144–156
direct effects
, 144
direct GVA effects
, 153–154
employment
, 144, 147, 153
gross value added (GVA)
, 144
indirect, induced and total effects
, 154–156
indirect effects
, 144
induced effects
, 144, 155
total employment and GVA effects
, 156, 157
travel time and productivity benefits of
, 156–160, 164
average trip durations
, 159
data and methodology
, 158–159
productive work time, impact on
, 160
time spent on ground
, 159–160
Business aviation-related direct employment
, 153
with business aircraft operators
, 145–147
with fixed-wing aircraft operators
, 146
in ground handling and FBO segments
, 150, 151
with helicopter and fixed-wing operators
, 146, 147, 148
in maintenance, repair and overhaul of business aircraft (MRO)
, 148–150
in operations and manufacture by European country
, 152–153
CAL Cargo Airlines
, 188
Carbon neutral growth
, 30
Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)
, 39–40
Cargo airports
, 191–192
Cargo demand
, 172
Cargo Stars
, 196–197
market strategy
, 196
network strategy
, 196–197
product strategy
, 196
stakeholders’ objectives
, 197
‘Carpet Sellers’ cluster group
, 187–189
market strategy
, 188
network strategy
, 188
product strategy
, 187–188
Cathay Pacific Airways
, 194, 195
Charter of Passenger Rights
, 21
China Southern Airlines
, 190
Clean Air Act
, 50
CO2 emissions
, 212–213, 214
Competition among European airlines
, 11–15, 78
battle between Vueling, Ryanair and Brussels Airlines, case study
, 81–87
market deregulation and liberalization, impact of
, 78–79
pricing strategies
, 78–80
defining ceiling
, 79
differential pricing model
, 79, 80
economic pricing systems
, 79
influencing variables
, 78
maximum capacity utilization
, 79
pricing as tactical instrument
, 81
‘unbundling’ principle
, 80
and yields and profits
, 80–81
Computer reservation systems (CRS)
, 15
Connecting traffic
, 58, 65–66
Contemporary air travel in Europe
, 1
Cross-equity partnerships
, 118, 123
Data Envelopment Analysis (DEA)
, 4
Delta Airlines
, 196–197
Deregulation of airline industry
, 4–5
European context
, 1–2
Directive on Airport Charges
, 18–19
Easyjet
“Worldwide by EasyJet” program
, 62–63
Economies of traffic density
, 118–119, 122, 129
Efficiency measures of airlines
, 92
EFTA states
, 144
El Al Israel Airlines
, 189
Emirates
market strategy
, 192
network strategy
, 192
product strategy
, 192
stake-holder objectives
, 192–193
Emissions Trading Scheme (ETS)
, 2, 30, 34–35
phases of
, 45–46
Environmental impact
, 212–213
Ethiopian Airlines
, 187, 189
Etihad Airways
, 193–194
EU27 CO2 emissions
, 27
Eurocontrol, establishing
, 31–32
European airlines, productivity of
, 2
European Air Traffic Management Network (EATMN)
, 32
European air transport policy
Airport Charges Directive
, 19
liberalizing associated services
, 15–21
airport charges
, 18–19
Airport Package of 2011
, 21
airport slot allocation
, 17–18
ground handling
, 16–17
hub competition
, 19–20
impact of LCCs on regional airport competition
, 16
operating restrictions
, 20
Regulation (EU) No 598/2014
, 20
state aid cases and regulation
, 19
liberal market approach
, 10–22
adjust fares on intra-EU cross border routes
, 10–11
airline ticket advertising
, 14–15
alliances
, 11–13
Aviation Guidelines
, 13, 14
block exemptions
, 11
carry passengers to and from any other Member State
, 10–11
Code of Conduct for Computer Reservation Systems
, 15
competition law framework
, 11–15
computer reservation systems (CRS)
, 15
de minimis regulation
, 13
freedom to set airfares
, 10–11
increase capacity
, 10–11
market economy investor principle
, 13–14
market economy operator principle
, 13
mergers and acquisitions (M&A)
, 11–13
rescue and restructuring guidelines
, 13
resolution on state aid modernization
, 13–14
ruling on agreement between Brussels South Charleroi Airport and Ryanair
, 13
subsidies to airlines
, 13–14
passenger rights regulation (PRR)
, 21–22
amendments
, 22
delays and rights to compensation
, 21–22
Passenger Rights Proposal (PRP)
, 22
Regulation EC261/2004
, 21
Regulation EC300/2008
, 23
Regulation EC550/2004
, 33
Regulation EC1008/2008
, 38
Regulation EC2320/2002
, 23
Regulation (EU) No 598/2014
, 20
See also Greening of air transport
European Aviation Safety Agency (EASA)
, 24, 26
European Aviation Safety Management System (EASMS)
, 24–25
actions for
, 24–25
occurrence reporting
, 25
Proposal for Regulation by European Parliament and Council
, 25–26
European Aviation Safety Plan (EASP)
, 24, 26
European Organization for the Safety of Air Navigation (EUROCONTROL)
, 49
European Union (EU)
, 10, 14–15, 23
Eurowings
, 60
EU28 states
, 144
External aviation policy
, 34–40
application of ETS
, 39–40
application of ETS to extra-EU flights
, 39–40
Common Aviation Area (CAA)
, 38–39
emergence of
, 35
future challenges
, 43–44
legal certainty of air services agreements
, 35–36
liberalizing inter-regional air transport
, 36–39
Open Aviation Area (OAA) agreement
, 37–38
External policy
, 2
Fortaleza agreement
, 91–92
Freedoms of the air
, 46
Full service network carriers (FSNCs)
, 57–58, 60, 61, 62
Garuda Indonesia
, 189
Geared Turbo Fan (GTF) engines
, 202
cost-benefit analysis (CBA)
, 203
fuel savings
, 202
impact of
, 203, 217, 218
Global air cargo industry
, 168
See also Air cargo
Global Distribution Systems (GDSs)
, 15, 118
Global financial crisis, 2008
, 4
Global market based measure (GMBM)
, 39
Greenhouse gas (GHG) emissions
, 28, 29–30
commitment to reduce
, 26, 27
Directive 2003/87/EC and
, 45–46
Greening of air transport
, 2, 26–34
addressed by Barroso Commission
, 26
aircraft efficiency
, 28
air transport sustainability
, 28
challenges in reducing emissions
, 30–31
ACARE vision
, 31
EU’s Vision 2020
, 31
CO2
56 emissions per available seat kilometer (ASK)
, 29–30
commitment to reduce GHG emissions
, 26, 27
future challenges
, 41–43
regulations on noise
, 29
research programs
, 27
short- or medium-term carbon-free solutions
, 26–27
Single European Sky (SES)
, 31–34
attempt at ATM harmonization
, 32–33
cost of delays
, 33
establishing Eurocontrol
, 31–33
functional airspace blocks (FAB)
, 33–34
implementation of
, 32, 33, 34
legislative framework
, 32
schedule padding
, 33
technological progress
, 28–29
Vision 2020
, 28–29, 30, 31
Ground Handling Directive
, 16–17
Gulf Air
, 188, 189
Hub competition
, 19–20
Gulf carriers vs European airlines
, 19, 20
Input-Output Analysis
, 5, 142–143
Interhub markets
, 118, 119, 127, 128
Interline markets
, 118, 119, 120, 127–128
International Civil Aviation Organization (ICAO)
, 19, 20
carbon neutral growth
, 39
Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)
, 39–40
Jade Cargo Airlines
, 170–171
Joint ventures, in transatlantic market
, 117–119, 127
Air France/KLM
, 118, 127
Alitalia
, 118
Delta/Northwest
, 118
effects of
, 118–119, 124–125
equations
, 128
in interhub markets
, 127, 128
in interline markets
, 127–128
routings
, 127–128
KLM
, 193–194
Korean Air
, 189, 190
Large passenger wide-body operators
, 193–194
market strategy
, 193–194
network strategy
, 194
product strategy
, 193
stake-holder objectives
, 194
Legacy carriers
, 79
Liberalization
, 2
future challenges
, 40–41
liberalizing associated services
, 15–21
liberal market approach
, 10–22
equal access to resources
, 40
London Heathrow (LHR)–Frankfurt (FRA) route
, 6, 203–208
charges imposed
, 214
cost-benefit analysis (CBA) for
, 203, 208–214
aircraft appraisal model
, 209–210
aircraft selection appraisal
, 214–218
available seat kilometres (ASKs)
, 203, 205, 207–208, 210, 212–213
calculation of number of aircraft required on
, 208
direct operating costs
, 212
efficiency cash flow
, 208
exchange rates
, 206, 212
indirect operating costs
, 212
key variables and assumptions
, 210–214
long-term capacity forecast: 2017–2027
, 205–206
number of aircraft
, 206–208
private cash flow
, 208
project cash flow
, 208
referent group cash flow
, 209
traffic review (2000–2016)
, 204–205
emissions and LTO charges per airport
, 213
noise aircraft category per airport
, 213
Low-cost carriers (LCCs)
, 2–3, 57–58
codesharing
, 61–63
establishment of foreign bases
, 62
features
, 47
growth and evolution of European
, 59–60
changes in business model of European
, 59, 60
connection-building
, 60
introduction of long-haul services
, 60
hub-and-spoke network configurations
, 2–3, 57–58, 59, 63–66, 73–74
comparison of HS network and mesh network
, 65
offline connections between airlines
, 61
online connections
, 58–59, 61–63
point-to-point services
, 2–3, 57–58, 63–64
regional airport competition, impact of
, 16
self-connecting
, 61–63
short-haul
, 58, 62
See also Ryanair
‘Low Cost Low Yielder’ clusters
, 191–193
market strategy
, 192
network strategy
, 192
product strategy
, 192
stake-holder objectives
, 192–193
Lufthansa
, 196–197
hubs operated by
, 62
long-haul services
, 62
Malmquist Index
, 4
Malmquist TFP index
, 92–93
Market economy operator principle
, 13
Marketing strategies
, 5–6
cluster analysis
, 5–6
Mergers and acquisitions (M&A), in Europe
, 11–13
Aegean/Olympic Air
, 11–12
Air France/KLM
, 11–12
benefits to passengers
, 12–13
British Airways/Iberia (IAG)
, 11–12
case of acquisition of Aer Lingus by Ryanair
, 12
negative effects of
, 12–13
Swissair and Sabena
, 11–12
United Airlines/Continental
, 11–12
U.S. Airways/American Airlines
, 11–12
Mesh networks, implications of
, 63–64, 65, 66, 67
benefits
, 66
provision of online connecting services
, 65–66
Metal-neutral joint ventures
, 118
NetJets
, 146
Network topology
, 59, 63–65
9/11 terrorist attacks, 2001
, 4
Nippon Cargo Airlines
, 187
Noise Directive
, 29
Noise emission
, 213, 230
pricing
, 231
Noise operating restrictions
, 20
Non-integrated airlines
, 169
Non-stop routings (interhub markets)
, 118
NOx emissions
, 48
One-stopover routings (interline markets)
, 118
Oneworld
, 4–5, 127
Open Aviation Area (OAA) agreement
, 19, 37–38
“Open Sky” agreements
, 91–92
Open sky ruling
, 50
Passenger rights regulation (PRR)
, 21–22
amendments
, 22
right to accurate, timely and accessible information
, 21
right to assistance
, 21
right to compensation
, 21
delays and
, 21–22
right to price transparency
, 21
right to reimbursement
, 21
Passenger rights regulation (PRR)
, 21–22
amendments
, 22
delayed flights, right to compensation for
, 21
delays and rights to compensation
, 21–22
Regulation EC261/2004
, 21
Sturgeon case
, 21, 22
Passenger Rights Proposal (PRP)
, 22
Philippine Airlines
, 189
Polar Air Cargo
, 187, 188
Predatory pricing
, 172
Premium cargo operators
, 194–196
market strategy
, 195
network strategy
, 195
product strategy
, 194–195
stake-holders’ objectives
, 195–196
Price discrimination
, 79
Pricing strategy
, 3–4, 77
Brussels Airlines’ pricing campaign
, 3–4
Principles of good governance
, 24
Product Composition Differentiation index (PCD-index)
, 187, 198
Product differentiation
, 79, 80
and cargo yield management
, 170
Qantas
, 189, 190
Qatar Airways
, 194, 195
Regional connectivity benefits
, 160–163
Revenue Management Systems
, 170, 171–172, 195, 196
Royal Jordanian
, 205
Ryanair (FR)
, 2–3, 58–59, 62–63, 73
battle between Vueling, Ryanair and Brussels Airlines, case study
, 81–87
connections via Porto (OPO), case study
, 59, 66–73
bookable online connections
, 69
branded fares
, 71, 72
connecting flights via OPO
, 68–69
connections via OPO
, 70
fares for connecting flights via Porto
, 72
inbound and outbound FR flights in OPO
, 71
route network
, 71
schedule of arrival and departing flights in OPO
, 72
mesh network of
, 67
Safety and security
, 2, 22–26
aviation security under EU’s regulatory
, 23–24
beyond safety regulation
, 26
certification of air traffic management (ATM)
, 26
European Aviation Safety Management System (EASMS)
, 24–25
European Aviation Safety Plan (EASP)
, 24
future challenges
, 41
occurrence reporting
, 25
Regulation EC300/2008
, 23
security costs
, 23
security effectiveness
, 24
X-ray body scanners
, 23–24
SARS outbreak, 2004
, 4
Saudia
, 189
Self-connecting
, 61
7th Framework Programme 2007–2013
, 48
Singapore Airlines
, 193–194
Single European Sky (SES)
, 31–34
SkyTeam
, 4–5, 101, 127
Smart growth
, 46
Star Alliance
, 4–5, 101, 118, 127, 170–171
State aid regulation
, 19
Leipzig Halle Case
, 19
Sustainable growth
, 46
EU2020 approach to
, 46
Sustainability
, 28, 242
Thai Airways
, 190
Time-differentiated airport noise surcharges
, 230, 232–233
airline rationales and
, 237–239
airport noise externalities
, 235–236
framework
, 237
impact of noise emissions
, 235
network planning view
, 238
night curfews and
, 236
noise externality quantification
, 235
policy goals
, 230, 231
pricing scheme
, 234
resource allocation view
, 238–239
scheduling perspective
, 239–240, 241
single, independent flight view
, 237
steering effects of
, 239–241
sustainability
, 242
tactical effects
, 240, 242
technological incentives and
, 240–241
theory
, 230
Total factor productivity. See Airline total factor productivity, study
Turkish Airlines
, 194, 195
Umbrella merger model
, 43
United Airlines
, 196–197
US Airline Deregulation Act of 1978
, 4
Volga Dnepr
, 187, 198
Vueling
, 60
battle between Vueling, Ryanair and Brussels Airlines, case study
, 81–87
Wizz Air
, 60
WOW Cargo Alliance
, 170–171
- Prelims
- Chapter 1 Current Issues in European Aviation
- Chapter 2 European Air Transport Regulation: Achievements and Future Challenges
- Chapter 3 From Low-cost Carriers to Network Carriers without Legacy? Evolving Airline Business Models in Europe
- Chapter 4 Competition Among European Airlines: Pricing Strategies, Yields and Profits
- Chapter 5 Global Airline Productivity, 1980–2013
- Chapter 6 Joint Ventures in the Transatlantic Airline Market
- Chapter 7 The Economic Footprint of the Business Aviation Sector in Europe
- Chapter 8 The Strategy of Air Cargo Operators: About Carpet Sellers and Cargo Stars
- Chapter 9 Flying Economy – The Economic Impact of New Propulsion Technology: A Cost-Benefit Analysis of the Geared Turbo Fan Engine on the London Heathrow and Frankfurt Route
- Chapter 10 Time-differentiated Airport Noise Surcharges: From Economic Theory to Policy Practice
- Index