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Air transport accounts for nearly 40% worth of the global trade cargo volume, where more than 50% of the air cargo is carried on passenger flights. Therefore, this paper aims to focus on identifying the influencing factors for both passenger and cargo demand-driven networks to smoothen the global supply chain.

The data for the study was collected through literature reviews and interviews with industry experts. The analytical hierarchy process was used to analyze the expert's opinions on the critical factors affecting air cargo demand growth. Regression analysis was conducted using the selected variables to develop a model to calculate air cargo demand growth.

According to the expert opinion, it was identified that facilities under airport capacities and facilities are mainly affected by the air cargo carried by combi carriers. The model was developed considering the air connectivity index and air cargo demand at destination variables.

The factors identified here are mainly related to the current situation in Sri Lanka. Applying this methodology to other economic zones will add new factors related to their economic contexts and could be generalized as the influencing factors for the growth of air cargo demand by finding more results.

Previous studies have been conducted using different factors and models to forecast air cargo demand, and those did not consider demand from combi and all-cargo carriers together. More than 98% of air cargo trades in Sri Lanka are happening through combi carriers. Hence, Sri Lanka will be a best case study to analyze the behavior of combi carriers.

This case study allows students to appreciate the value of standard operating procedures in customer management. This case study emphasises the role of employees in delivering superior customer experience. This case study explores many facets of customer experience, reputation, social class membership and standard operating procedures (SOPs). Students will be able to apply theories of customer experience, behavioural psychology and service dimensions relevant to the airline industry. After completing this case study, students will be able to do the following:1. Evaluate the value of SOPs in Customer ManagementThis case study refers to the need for adhering to SOPs to deal with complex situations. Students will be able to evaluate whether compliance to SOPs could have helped Air India avoid the crisis or was it possible that a culture of absolute commitment to customer wellbeing could have prevented the crisis.2. Apply the theory of defensive attribution in customer grievance handling. Discuss if reducing customer effort in getting their problem solved can result in superior customer service.The victim had attributed the blame for not insisting on filing a complaint to the crew. Air India crew had defended their actions or lack of it by stating that they had followed the rule book. Students will be able to appreciate the need for a swift redressal mechanism to protect the self-image and self-esteem of the person/group involved. They will also understand that customer service interactions designed to solve customer problems swiftly and easily can be a very simple dictum to guide all employees in their decision-making while handling a customer complaint.

3. Evaluate the relationship between customer satisfaction and customer experience and examine the value of net promoter score (NPS) to study customer satisfaction.

Air India Airlines was catering to varied customer groups such as the Indian diaspora, large student population pursuing education abroad, first-time flyers and the rising middle class with travel aspirations. Customer expectations vary across segments and change over their lifetime. Airline staff must trace customer corridors and deliver on customer expectation across the touch points that matter to them to ensure meaningful and relevant service delivery. Students will have an opportunity to evaluate the NPS in measuring customer satisfaction and debate whether it is a sufficient metric to guide the organisation on delivering and monitoring customer experience.

4. Examine why reputation risk management and not crisis management should be the focus of Air India in delivering superior customer service because nearly 70%–80% of market value for a company comes from its intangible assets such as brand equity and reputation.

Students will discuss crisis management i.e. handling the threat to reputation after it has occurred and reputation risk management i.e. proactively managing potential threats to its reputation by taking timely actions to avoid or mitigate it. There are three factors (reputation reality gap, changing beliefs and expectation and weak internal coordination) that determine reputational risks. Students can evaluate this model to determine if Air India should address these three factors to manage its reputation proactively.

This case study is set around an incident that happened on 26 November 2022, on Air India flight bound for Delhi from New York when an inebriated 34-year-old man had peed on a 72-year-old woman. The perpetrator of the crime had walked free, and the victim was left dissatisfied with how the cabin crew had handled her ordeal. Air India Airlines was launched in 1932 by industrialist JRD Tata and nationalised in 1953. In 2021, Tata Group acquired the 90-year-old Air India from the Government of India for $2.4bn (INR 18,000 crore) and appointed Campbell Wilson as chief executive officer and managing director. The incident brought to the fore the customer management issues that Wilson had to address. First on the list of Air India’s turnaround plan was delivering “exceptional customer experience”. How was it going to achieve it because the Indian aviation ecosystem lacked infrastructure such as airports, airspace, competition and customer preference-based services? There was also shortage of pilots, engineers, technicians, air-traffic controllers and technocrats to occupy positions within security agencies and regulatory bodies. With Air India’s acquisition, the Tata Group had to find innovative solutions to deal with decades of internal neglect, non-performance and labour union problems. This case study is relevant to address real issues of customer experience, consumer psychology, reputation risk management and standard operating procedures in service management.

This case is suitable for both undergraduate and postgraduate level students of business management. It can also be used for training service personnel of aviation industry.

Teaching notes are available for educators only.

CSS 8: Marketing

This paper aims to examine the low-cost carriers (LCC) impact on the high-quality carriers (HQC) in the aviation industry. The impact of LCCs on high-quality producers in the aviation industry has been a significant and multifaceted phenomenon.

The study employs a captivating case study approach, investigating into the intricate fabric of the subject matter. Interviews serve as the cornerstone of primary evidence, offering first-hand insights, while secondary data sourced from documents adds depth to the exploration of the challenges encountered by the HQC.

The study concludes that LCCs have disrupted the traditional aviation landscape by offering low fares, simplified service models and aggressive cost-cutting strategies. This disruption has affected both the high-quality producers, such as full-service airlines. Full-service airlines have adopted a strategy of segmenting their market by offering multiple fare classes, with varying levels of service and flexibility. This allows them to target both price-sensitive travelers and those seeking premium services, catering to a broader customer base. The competition from LCCs has spurred innovation within the aviation industry, leading to advancements in technology, digital services and operational efficiency. Airlines, both LCCs and traditional carriers, have had to adapt to evolving consumer preferences and embrace digital solutions for booking, check-in and in-flight services.

While this study provides a valuable cost-benefit analysis of the impact of LCC on high-quality producers in the aviation industry, it is essential to acknowledge its limitations and recognize the avenues for future research to further enhance our understanding of this complex and evolving industry landscape. While this study contributes valuable insights into the impact of LCCs on high-quality producers in the aviation industry, it is essential to recognize its limitations and identify opportunities for future research to expand our understanding of this complex and dynamic landscape. By addressing these limitations and exploring new avenues of inquiry, we can continue to advance our knowledge and inform evidence-based decision-making within the industry.

This study pioneers an exploration into the intricate tapestry of factors molding the future of the aviation sector. Through its groundbreaking analysis, it furnishes indispensable insights for industry stakeholders, policymakers and the discerning traveling public, setting a new benchmark for understanding and navigating the aviation landscape.

The purpose of this paper is to illustrate the growing role of robots in the logistics industry.

Following an introduction, which identifies key challenges facing the industry, this paper discusses robotic applications in warehouses, followed by sections covering transportation and delivery and conclusions.

The logistics industry faces a number of challenges that drive technological and operational changes. Robots are already playing a role within the warehouse sector and more complex applications have recently arisen from developments in artificial intelligence-enabled vision technology. In the transportation sector, autonomous trucks are being developed and trialled by leading manufacturers. Many major logistics companies are involved and limited services are underway. Last-mile delivery applications are growing rapidly, and trials, pilot schemes and commercial services are underway in Europe, the USA and the Far East. The Chinese market is particularly buoyant, and in 2019, a delivery robot was launched that operates on public roads, based on Level-4 autonomous driving technology. The drone delivery sector has been slower to develop, in part due to regulatory constraints, but services are now being operated by drone manufacturers, retailers and logistics providers.

This paper provides details of existing and future applications of robots in the logistics industry.

Early studies projected potential societal, economic and environmental benefits by the widespread deployment of Autonomous and Connected Transport (ACT) promising a significant reduction of transport costs and improvement in road safety. An effective way of assessing ACT impact is via simulations, where results are largely affected by the scenarios defining the ACT development. However, modelled scenarios are very diverse due to the huge uncertainty in ACT development and deployment. This chapter aims to shed light on the different ACT simulation scenarios and sustainability aspects that should be considered while developing or reporting the simulation results. To this end, this chapter discusses the various simulation approaches, what the required (or the typically utilised) pipelines are, and how some components are more important or less important than in ‘classic’ modelling and simulation approaches. Special focus is dedicated to the uncertainty related to ACT operational parameters and how these will impact transport modelling. To address said uncertainty, an analysis of current approaches to scenario building is provided, as the chapter guides the reader through different methodologies and clusters them in relation to the desired indicators. Finally, the chapter identifies and proposes Key Performance Indicators (KPIs) that are useful when applying simulation tools to assess ACT scenarios. These KPIs can be used for simulation scenario development to test particular sustainability aspects of ACT deployment and relevant policies.

This study is focused to support an ongoing development project of the case company's current state and the challenges of the order-to-cash (O2C) process. The O2C process is the most visible process to the customer, and therefore, its punctual and fluent order management is vital. It is observed that the high degree of manual work in the O2C process causes mistakes, delays and rework in the process. The purpose of this article is therefore to analyze the case company's current state of the O2C process as well as to identify the areas of development in this process by deploying the means of Lean Six Sigma tools such as value stream mapping (VSM).

The study was conducted as a mix of quantitative and qualitative analysis. Based on both the quantitative and qualitative data, a workshop on VSM was organized to analyze the current state of the O2C process of a case company, engaged in the energy and environment sector in Finland.

The results found that excessive manual work was highly connected to inadequate or incorrect data in pricing and invoicing activities, which resulted in canceled invoices. Canceled invoices are visible to the customer and have a negative impact on the customer experience. This study found that by improving the performance of the O2C process activities and improving communication among the internal and external stakeholders, the whole O2C process can perform more effectively and provide better customer value.

The O2C process is the most visible process to the customer and therefore its punctual and fluent order management is vital. To ensure that the O2C process is operating as desired, suitable process performance metrics need to be aligned and followed. The results gathered from the case company's data, questionnaire interviews, and the VSM workshop are all highlighted in this study. The main practical and managerial implications were to understand the real-time O2C process performance, which is necessary to ensure strong performance and enhance continuous improvement of the O2C process that leads to operational excellence and commercial competitiveness of the studied case company.

The automotive industry appears to overcome much of its obstacles, despite the constant struggle facing COVID-19. The pandemic has resulted in significant improvements in the habits and conduct of consumers. There is an increased preference for personal mobility. In this dynamic environment with unexpected changes and high market rivalry, automotive supply chains focus more on executing responsive strategies with minimum costs. This paper aims to identify and model the drivers to the responsiveness of automotive supply chain.

Seventeen drivers for supply chain responsiveness have been identified from the extensive literature, expert interview. An integrated methodology of fuzzy decision-making trial and evaluation laboratory–interpretive structural modelling (DEMATEL–ISM) is developed to establish the interrelationship between the drivers. The cause–effect relationship between the drivers was obtained through fuzzy DEMATEL technique, and a hierarchical structure of the drivers was developed using the ISM technique.

The result of the integrated methodology revealed that strategic decision-making of management, accurate forecasting of demand, advanced manufacturing system in the organisation and data integration tools are the critical drivers.

This study has conceptual and analytical limitations. In this study, a limited number of drivers are examined for supply chain responsiveness. Further research may examine the role of other key performance indicators in the broad field of responsiveness in the automotive supply chain or other industry sectors. Future study can uncover the interrelationships and relative relevance of indicators using advanced multi-criteria decision-making methodologies.

The authors proposed an integrated methodology that will be benefitted to the supply chain practitioners and automotive manufacturers to develop management strategies to improve responsiveness. This study further helps to compare the responsiveness of the supply chain between various automotive manufacturers.