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This chapter considers time-differentiated airport noise surcharges that occur in addition to general noise fees at an airport. In practice, an essential problem of such surcharges may consist of setting the price for a social policy goal, such as airport noise reduction, by shifting a number of critical flights away from sensitive times-of-day in the presence of an additional, competing economic policy goal in terms of fostering the network hub function and connectivity of that airport. In such a case, additional noise surcharges aim at balancing the socioeconomic noise costs against economic prosperity, to achieve a net benefit for society by inducing a particular airline scheduling behavior, such as shifting non-hub-relevant flights only. As a result, they differ from the well-known economic concepts for the internalization of externalities. We address this problem by offering a shift from an economic welfare view to a business administration perspective with the airlines as stakeholders, in order to describe the different rationales that need to be accounted for when searching for a pricing scheme that achieves one of the distinct steering effects in terms of airline scheduling behavior. In addition, we offer a tentative, generic guideline to determine the appropriate dimension of time-differentiated noise surcharges depending on the steering effect.

The purpose of this paper is to shed light on the biofuels debate in air transport.

The controversies about biofuels sustainability in general and research findings on biofuels are complemented by the specific circumstances the aviation industry encounters in its attempt to become more sustainable. The author's corporate affiliation allows for insights from an airline's perspective and experience with biojet fuel.

The paper highlights accountability and accounting advances required by the aviation industry as well as further stakeholders to safeguard sustainability of biofuels.

The paper provides a viewpoint taking account of research findings but written from a corporate perspective. The intention is not to provide a complete review of the growing academic literature in the biofuels field, nor to elaborate on the entire array of challenges in practice.

The paper integrates macro‐level societal limitations for sustainable biofuel feedstock production with micro and meso‐level corporate and industry perspectives on sustainable biofuels.

Examines the adoption of radio frequency identification (RFID) technology in the commercial aviation industry, focusing on its role in baggage handling and security.

Draws upon academic and trade literature to provide a current overview of developments in the implementation of RFID technology in commercial aviation, particularly focusing on Delta Airlines, an industry leader in the USA in the testing and development of RFID systems for improved operations in baggage handling.

Though RFID technology is experiencing widespread adoption across many industries, commercial aviation seems poised to be a leader in its full‐scale adoption in practice. RFID technology demonstrates distinct advantages over the currently used barcode system for baggage handling.

This paper shows how RFID technology can improve customer service though better operational efficiency in baggage handling, which has been demonstrated to be an integral component of an airline's customer service equation. Academicians and marketing professionals should both be aware of developments with RFID technology. It is of particular importance in the airline sector, as improved accuracy of baggage handling can enable air carriers to close an important service‐delivery gap in an increasingly turbulent operating environment.

Little is published in the academic literature about this timely topic. Most of the published information available is from corporate or commercial sources, and is presented in such formats as white papers. This paper is a companion piece to the review of RFID in UK retailing by Jones et al. in this issue.

The purpose of this article is to offer a response to the general proposed questions “Did the context of economic crisis affect the image of Portugal as a tourist destination? What were the answers and lessons learned?” from TAP Portugal perspective and what were, for the airline, the answers and lessons learned for the future.

Major economic indicators in Portugal and Europe were compared with TAP numbers and Portuguese Travel and Tourism balance of payments.

The image of Portugal as a tourist destination was not affected. Portugal managed to use the increase in international exposure to publicise itself for the right reasons. The key to future success lies on markets intelligence.

This article constitutes an original viewpoint based on TAP market experience and may be useful for tourism and travel industry professionals, students and research community.

This paper aims to explain how airlines in India and customers can both benefit by the unbundling of services.

The paper explores how a recent regulatory change allowing unbundled services will affect the airline industry in India. Using illustrations, it highlights the benefits to the airlines and to the customers. It recommends the strategies that airlines can follow.

Airlines in India can now offer unbundled services. However, regulatory authorities need to allow greater flexibility to airlines. Given more flexibility, airlines can design offerings that will improve their profitability while simultaneously benefiting customers.

The government needs to go beyond the current regulatory changes. Providing increased flexibility will benefit both airlines and customers. Airlines would need to understand customers more intimately, experiment in the market, lobby for flexibility and develop strategic agility to benefit from the changed regulations on unbundled services.

It concedes that airlines can now design unbundled services such that only those customers who value a service get charged for the service. Those customers who do not need a service can get away by paying a lower fare. The government has taken the first steps in the right direction. Once it provides greater flexibility, the airlines in India can benefit significantly.

The paper considers the unique context of the airline industry in India where recent regulatory changes are likely to make the industry more dynamic and improve profitability of airlines. It provides insights in to the challenges faced under the current system and recommends strategies for the government and companies to follow.

This chapter explores the evolution of Virgin Blue, a low-cost carrier that commenced operations in Australia in 2000, through a process that saw it emerge as a full-service airline by 2012. The path of evolution is analyzed with the aid of several strategic marketing concepts including strategic windows and repositioning. Given the contemporary nature of the area of study, the research employs historical narrative and case study methodology. From a tourism industry perspective, the discussion highlights the usefulness of the strategic management approach including the use of strategic windows and demonstrates that firms are able to successfully reinvent themselves to respond to new market opportunities. The results also highlight the need for destination marketing organizations to be alert to changes in airline operations that may fundamentally alter their value proposition in some of the target markets that they are operating in. In the case of Virgin, the airline evolved from a low-cost airline to a full-service airline and in the process lost some customers who were pursing low-cost holiday options but gained customers who were less price sensitive.

This chapter focuses on the IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases in the airline industry considering the case of Air France – KLM (AF-KLM). This airline timely adopted IFRS 15 and early adopted IFRS 16 for the year 2018 and restated its 2017 financial statements using the full retrospective method so that the 2018 financial statements of the airline provide comparative financial information during the transition phase from IAS 18 to IFRS 15 as well as from IAS 17 to IFRS 16. In the first part of the chapter, liquidity, solvency, and profitability ratios along with cash flow ratios were used to analyze the cumulative effect of IFRS 15 and IFRS 16 using 2017 and restated 2017 financial statements. In this context, results indicate that the liquidity ratios decreased, and the solvency ratios increased in general. In addition, the cumulative effect of IFRS 15 and IFRS 16 created an upward change in general on profitability ratios based on the several performance parameters that should be considered during the transition from IAS 18 to IFRS 15 and from IAS 17 to IFRS 16. Overall, IFRS 15 has minor effect and IFRS 16 has major effect on the financial statements of AF-KLM. In the second part of the chapter, the compliance level of the mandatory disclosures requirements of the airline was examined from the lessee standpoint and the research pointed out that the airline fully complied with these disclosures at its first adoption of IFRS 16 and provided some voluntary disclosures as well.

In practice and in literature, logistics service quality is one of the key concepts in any service industry, including airlines. However, the breadth of content and the inconsistent accounts make comprehensive understanding of service quality elusive, thereby necessitating the conduct of a systematic review of the literature on service quality in the context of airlines. In doing so, this study aims to provide a clear, consistent and current overview of the literature, enabling the advancement of theory and research in service quality.

In particular, this study presents several aspects of logistics service quality based on the 52 articles reviewed published between 1993 and 2019. Content analysis was used to analyze the data in terms of key attributes of service quality from the selected articles.

Following an analysis, this study summarizes the antecedents and consequences, along with mediators and moderators, and develops a review framework of service quality.

This study provides a starting point for understanding logistics service quality in a context of airline where choice of perspective (at three different perspectives) and framing of context (where logistics interfaces with marketing function, thereby ensuring a well-functiong synthesis of marketing and service activities in the value chain) are of decisive importance. It also expands an understanding of service quality in marketing field with an integration of logistics function as well as challenging some of the conventional knowledge of the applying logistics in service-based business like the airlines. However, this paper is restricted by several limitations that must be taken into account when applying its findings such as context-specific results,cross-sectional data and recall variables.

This paper provides a clear and consistent concept, as well as a current overview of the literature, which enables advancement in theory and research. It also reveals theoretical underpinnings of the research stream and outlines future research directions. Additionally, it challenges some of the conventional knowledge of the applying logistics on service-based business such as airline which broadens the scope of our thinking and provides a foundation for future study.

This chapter examines the impact of recent airline consolidations in the United States on the technical efficiencies of the airlines involved. Data envelopment analysis (DEA) is used to assess the efficiencies, and the consolidations examined are those that occurred among major network carriers between 2005 and 2013. The airline production process is conceptualized as the transformation of labor, fuel, and fleet-wide seating capacity into available seat-miles, or, under an alternative model specification, into user value, as measured by the airline’s operating revenue. Efficiency is conceptualized in terms of minimizing the airline’s usage of the three inputs, given its output level. The analysis seeks to determine whether the airlines that consolidated were more efficient, post-consolidation, than they were prior to consolidation, compared to airlines that did not enter into consolidations. Although there are limitations owing to the small number of airlines in the dataset, the chapter finds no evidence that the consolidations enhanced the efficiencies of the airlines involved, relative to the efficiencies of the airlines that did not enter into consolidations.