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Based on our experience related to the passenger terminal re-design at Sydney airport and its impact on belly-hold freight chains at the airport, this chapter takes a more general view on managing freight chains at large international airports. We aim to review literature and documents related to this area and also to undertake a fleet/traffic analysis of the 100 largest multi-function airports (when measured in terms of scheduled cargo traffic) to get a better understanding of current practice, particularly in the light of potential conflicts or benefits of the joint production of passenger and freight services. While most literature has focused on hub-and-spoke aspects of international hubs, relatively little has been done on economies of scale and scope of passenger and freight airline operations (including timing) at such hubs. This chapter explores to what extent terminal organisation of international airports impacts on the use of dedicated freighter of combination airlines and hence airline efficiency. A key finding in terms of airline efficiency is that economies of scale of air cargo operation appear to exist at the aircraft level as dedicated freighters are used more often if a sufficient threshold of air freight demand is observed at the airport level.

Air carriers and aircraft manufacturers are investing in technologies and strategies to reduce fuel consumption and associated emissions. This chapter reviews related issues to assess airline fuel efficiency and offers various empirical evidences from our recent work that focuses on the U.S. domestic passenger air transportation system. We begin with a general presentation of four methods (ratio-based, deterministic frontier, stochastic frontier, and data envelopment analysis) and three perspectives for assessing airline fuel efficiencies, the latter covering consideration of only mainline carrier operations, mainline–subsidiary relations, and airline routing circuity. Airline fuel efficiency results in the short run, in particular the correlations of the results from using different methods and considering different perspectives, are discussed. For the long-term efficiency, we present the development of a stochastic frontier model to investigate individual airline fuel efficiency and system overall evolution between 1990 and 2012. Insight about the association of fuel efficiency with market entry, exit, and airline mergers is also obtained.

Following deregulation, the airline industry has dramatically changed. In addition to numerous mergers and bankruptcies, the industry has also seen an influx of small, “low-cost” carriers who offer differentiated competition to the traditional legacy carriers. These low-cost carriers traditionally avoided the hub-and-spoke networks of legacy carriers, offering point-to-point service often on adjacent routes. However, events of the past 10–15 years, including the terrorist attacks of 9/11, rising fuel prices, and economic recessions, have led to a shift in the operations of these airlines. The legacy carriers have unbundled many of their services, most notably through baggage fees, seeking to improve efficiency. Low-cost carriers have expanded services into major airports and have shifted to more direct route level competition with the legacy carriers as they use their cost efficiency advantages to their advantage. In this chapter, we examine airport and route choice decision to serve by legacy and low-cost carriers over time. Our descriptive and econometric models point to convergence of operations in terms of the airports and routes that low-cost and legacy carriers serve, with the implication that the current competitive atmosphere improves efficiency as the distinctions between legacy and low-cost carriers have become less obvious.

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.

The low-cost carrier's model made remarkable gains across the globe in the prior decade, although growth was uneven domestically and intraregionally. Within this region, there are significant differences in overall country size, the size of the domestic aviation market, and the number of carriers serving the market. The largest and most developed market is in Russia, but rest of the region also experienced growth in economy airlines' activity as they discovered the power of the model to expand aviation access and lower costs. The success of low-cost carriers, however, has been halting and hampered by government decisions on foreign investment, ownership, and leasing. Still, some carriers have been able to grow and achieve gains over rivals. The recent Russian-Ukrainian war has further complicated the situation.

Purpose – To examine the relationship between aviation and climate change, and the international dimensions of air transport.

Methodology/approach – A review of aviation's impacts on the global climate, mitigation strategies to reduce this impact, and the possible consequences of climate change for commercial aviation.

Findings – Although a range of mitigation measures have been developed and implemented to reduce aircraft emissions in the short term, with some environmental benefit, there is a real need for the aviation sector to identify the possible impacts of climate change on air travel operations, both to aircraft in flight and to operations at airports. A further challenge will be to devise adaptation plans that will address the vulnerabilities and thus ensure safe aviation-related operations.

Social implications – The climate change impacts of aviation will adversely affect society. In addition, some individuals may have to reduce or stop flying as a result of increased taxes and legislation implemented in response to climate change.

Originality/value of paper – There is a novel focus on the adaptation challenges for the aviation industry in response to climate change.