Search results

The relationship between airports and airlines is very interesting from an economics perspective, and analysis of this relationship is wide open for new research endeavors. For instance, airport and airline interactions can be viewed as a zero-sum game of deciding, say, airport landing charges, while at the same time both entities have an incentive making a joint effort to enhance their ability to generate passenger demand and to contribute to growing regional economies. Within this theoretical framework, their relationship consists of not only a binary choice of conflict or cooperation, but also suggests the possibility of complex mixtures of conflict and cooperation. While understanding the interdependence of airports and airlines is an important issue in transportation economics, research examining the complexity of airport and airline relationships is relatively new to the field. This chapter contributes to this research area, in part, by introducing one very interesting example of an airport and airline relationship that considers an element of conflict and cooperation. Specifically, this chapter examines the economic consequences of a risk sharing contract. Analysis of the risk sharing contract recognizes the relevance of microeconomic theories, such as contract theory and principal–agent theory and reveals how these concepts can be applied to traditional transport economics. Predictions of risk sharing between airlines and airports using these theories are derived using numerical examples. Findings reveal that the risk-sharing agreement based on the Noto Airport Load Factor Guarantee Mechanism (LFGM) contract enables the airport side and the airline side not only to share the monetary consequences of demand fluctuation, but also to secure air flights from a local airport to Tokyo, to jointly enhance their various demand-inducing efforts, and to increase their utilities in order to meet the common target they set in the contract. With the LFGM contract, both sides have consistently maintained the air transport network in a relatively low demand area for more than 10 years without significant outside financial assistance. The findings from this chapter also contribute to better understanding the complex relationships among aviation entities, to the recognition of importance and potential to design properly the airport and airline contract, and to the advancement of economic and public policy analysis of this sector.

The relationship between airline and airport is complex, fascinating, and wide open for new research endeavors. In Volume 6 of the series, we conducted the analyses of risk-sharing contract between airline and airport from numerical risk balance assessment and incomplete contract theory perspectives based on an interesting real example of risk-sharing contracts, the Noto Airport Load Factor Guarantee Mechanism (LFGM) contract in Japan.

In this chapter, we further advance the analyses of risk-sharing contracts, based on the real example of Noto LFGM contract, from the perspectives of game theory and principal-agent theory. The risk-sharing arrangements, such as LFGM contract, are relevant to the rapidly changing business environment in Asia’s aviation industries.

We conduct a two-stage game analysis. The first phase is the contract negotiation phase and the second phase is the effort-making phase after signing the contract. We show that the two parties can attain a Pareto optimal utility level by bargaining a simple linear risk-sharing contract in the contract negotiation phase based on the equilibrium effort levels in the effort-making phase.

With significant changes in the aviation industry, various airport–airline arrangements have been formed to achieve alternative objectives. However, no consensus has been reached on such arrangements’ economic effects and the associated optimal public policy. This chapter aims to provide an interpretive review of the common types of airport–airline arrangements, the different modeling approaches used and key conclusions reached by recent studies. Our review suggests that airport–airline arrangements can take diverse forms and have been widely used in the industry. They may allow the airport and its airlines to internalize demand externality, increase traffic volume, reduce airport investment risks and costs, promote capacity investment, enhance service quality, or simply are a response to the competition from other airport–airline chains. On the other hand, such vertical arrangements, especially for those exclusively between airports and selected airlines, could lead to collusive outcomes at the expenses of non-participating organizations. The effects of such arrangements are also significantly influenced by the contract type, market structure and bargaining power between the airport and airline sectors. While case by case investigations are often needed for important economic decisions, we recommend policy-makers to promote competition in the airline and airport segments whenever possible, and demand more transparency or regulatory reporting of such arrangements. Policy debates and economic studies should be carried out first, before intrusive regulations are introduced.

The purpose of this paper is to study the main landing gear (MLG) mechanism configuration.

Mechanism kinematics and dynamics, stress analysis and sizing of the MLG structural members, and fatigue issues related with the mechanism operation. Spreadsheet solutions were incorporated to this survey to analyze the most conceivable loading situations, and important factors of the mechanism design for an initial evaluation of safety implications.

MLG design approach along with conservative fatigue design factors lies in the area of accepted limits in commercial aircraft industry.

MLG loading associated with landing as well as those associated with ground maneuvers (steering, braking and taxiing) contribute significantly to fatigue damage, along with the stresses induced by manufacturing processes and assembly. The application of FEA methods for the design of the landing gear does not always guarantee a successful approach to the problem solution, if precise analytical solutions are not available in advance.

From the investigation of this incident of fractured struts of the MLG it is confirmed that the reduction in Pintle Housing diameter on the upper part has contributed to the avoidance of damaging the fuel tank above the MLG that would lead to a catastrophic event. On the other hand, the airframe of the SKY-Jet was proved efficient for a belly landing with minor damages to the passengers and heavier damages for the aircraft.

On-line vibration monitoring sensors hooked up to the landing gear strut and Pintle House would greatly enhance safety, without relying in optical surveys in hard to access and inspect areas of the landing gears mechanisms housings.

Analytic methods were adopted and spreadsheet solutions were developed for the MLG main loading situations, along with design issues concerning mechanism kinematics and dynamics, stress analysis and sizing of the MLG structural members, as well as fatigue issues related with the mechanism operation. Spreadsheet solutions were incorporated to this survey to analyze the most conceivable loading situations, and important factors of the mechanism design for an initial evaluation of safety implications.

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.

Virtual machines (VMs) are suggested by the providers of cloud services as the services for the users over the internet. The consolidation of VM is the tactic of the competent and smart utilization of resources from cloud data centers. Placement of a VM is one of the significant issues in cloud computing (CC). Physical machines in a cloud environment are aware of the way of the VM placement (VMP) as the mapping VMs. The basic target of placement of VM issue is to reduce the physical machines' items that are running or the hosts in cloud data centers. The VMP methods have an important role in the CC. However, there is no systematic and complete way to discuss and analyze the algorithms. The purpose of this paper is to present a systematic survey of VMP techniques. Also, the benefits and weaknesses connected with selected VMP techniques have been debated, and the significant issues of these techniques are addressed to develop the more efficient VMP technique for the future.

Because of the importance of VMP in the cloud environments, in this paper, the articles and important mechanisms in this domain have been investigated systematically. The VMP mechanisms have been categorized into two major groups, including static and dynamic mechanisms.

The results have indicated that an appropriate VMP has the capacity to decrease the resource consumption rate, energy consumption and carbon emission rate. VMP approaches in computing environment still need improvements in terms of reducing related overhead, consolidation of the cloud environment to become an extremely on-demand mechanism, balancing the load between physical machines, power consumption and refining performance.

This study aimed to be comprehensive, but there were some limitations. Some perfect work may be eliminated because of applying some filters to choose the original articles. Surveying all the papers on the topic of VMP is impossible, too. Nevertheless, the authors are trying to present a complete survey over the VMP.

The consequences of this research will be valuable for academicians, and it can provide good ideas for future research in this domain. By providing comparative information and analyzing the contemporary developments in this area, this research will directly support academics and working professionals for better knowing the growth in the VMP area.

The gathered information in this paper helps to inform the researchers with the state of the art in the VMP area. Totally, the VMP's principal intention, current challenges, open issues, strategies and mechanisms in cloud systems are summarized by explaining the answers.

The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally. This is especially relevant in the context of Indonesian Airline companies. Therefore, many airline customers in Indonesia are still in doubt about it, or even do not use it. To fill this gap, this study attempts to develop a model for e-services adoption and empirically examines the factors influencing the airlines customers in Indonesia in using e-services offered by the Indonesian airline companies. Taking six Indonesian airline companies as a case example, the study investigated the antecedents of e-services usage of Indonesian airlines. This study further examined the impacts of motivation on customers in using e-services in the Indonesian context. Another important aim of this study was to investigate how ages, experiences and geographical areas moderate effects of e-services usage.

The study adopts a positivist research paradigm with a two-phase sequential mixed method design involving qualitative and quantitative approaches. An initial research model was first developed based on an extensive literature review, by combining acceptance and use of information technology theories, expectancy theory and the inter-organizational system motivation models. A qualitative field study via semi-structured interviews was then conducted to explore the present state among 15 respondents. The results of the interviews were analysed using content analysis yielding the final model of e-services usage. Eighteen antecedent factors hypotheses and three moderating factors hypotheses and 52-item questionnaire were developed. A focus group discussion of five respondents and a pilot study of 59 respondents resulted in final version of the questionnaire.

In the second phase, the main survey was conducted nationally to collect the research data among Indonesian airline customers who had already used Indonesian airline e-services. A total of 819 valid questionnaires were obtained. The data was then analysed using a partial least square (PLS) based structural equation modelling (SEM) technique to produce the contributions of links in the e-services model (22% of all the variances in e-services usage, 37.8% in intention to use, 46.6% in motivation, 39.2% in outcome expectancy, and 37.7% in effort expectancy). Meanwhile, path coefficients and t-values demonstrated various different influences of antecedent factors towards e-services usage. Additionally, a multi-group analysis based on PLS is employed with mixed results. In the final findings, 14 hypotheses were supported and 7 hypotheses were not supported.

The major findings of this study have confirmed that motivation has the strongest contribution in e-services usage. In addition, motivation affects e-services usage both directly and indirectly through intention-to-use. This study provides contributions to the existing knowledge of e-services models, and practical applications of IT usage. Most importantly, an understanding of antecedents of e-services adoption will provide guidelines for stakeholders in developing better e-services and strategies in order to promote and encourage more customers to use e-services. Finally, the accomplishment of this study can be expanded through possible adaptations in other industries and other geographical contexts.

The purpose of this paper is to identify the factor groupings of a set of 19 critical success factors (CSFs) associated with managing public-private partnership (PPP) projects at the operational stage and examine the most significant factor grouping using fuzzy synthetic evaluation (FSE) technique.

The paper adopted a comprehensive review of the pertinent literature and an empirical questionnaire survey geared towards targeted international PPP experts. Survey responses were analysed using factor analysis and FSE modelling.

The results from factor analysis show five CSF groupings (CSFGs) for managing operational PPPs. These are proficient service delivery and adequate legal structures, simplified payment mechanism and consistent project monitoring, effective contract variations management, suitable stakeholder management mechanism and environmental health and safety control. The FSE modelling shows that “simplified payment mechanism and consistent project monitoring”, is the most critical CSFG. The operational management CSFs under this grouping are acceptable level of user fee charges, efficient and well-structured payment mechanism, consistent project performance monitoring and long-term demand for public facility.

The major limitation lies in the low sample size that was used for analysis; however the years of research and/or industrial experience of respondents and the wide coverage of different cultural backgrounds (18 countries from five regions globally) contribute to the authenticity of the survey responses. Future research should adopt interviews and case study analysis to unravel CSFs in managing operational PPPs.

The findings of this study are considerably beneficial to both public authorities and private operators. They inform practitioners of the strategic procedures and measures to employ in optimising the operational performance of PPP projects. Further, the methodology employed allows project management experts to reliably select the operational management CSFs for their projects.