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Open Access
Article
Publication date: 31 December 2009

Jin-Kook Lee and Tae Seung Kim

As the wave of liberalization and deregulation have accelerated to relieve rigid controls over airline routes, capacity, and fare setting regimes, Low Cost Carriers (LCCs) have…

Abstract

As the wave of liberalization and deregulation have accelerated to relieve rigid controls over airline routes, capacity, and fare setting regimes, Low Cost Carriers (LCCs) have emerged especially in local aviation markets since the 1970s.

This paper has studied the effects of LCC's entry into the domestic aviation market which was pre-occupied by two major carriers, Korean Air (KAL) and Asiana Airlines. Through a simple model describing two situations, prior and post to LCC's entry, we analyzed changes and trends of each airline's output and profit based on the Cournot and two-stage Stackelberg game equilibrium.

In summary, our conclusion consists of five points: (1) Even though JIN Air's entry reduced KAL's respective output and profit, the more JIN Air produces, the higher the joint-profit of KAL and JIN Air is, (2) From the joint-profit aspect, increasing KAL's output to a level than JIN Air's is more profitable on the Gimpo-Jeju route, on the other hand, increasing JIN Air's output higher than KAL's is more profitable on the Jeju-Busan route, (3) Even though JIN Air's entry increase Asiana Airline's output, the more JIN Air produces, the less Asiana Airlines's profit is, (4) Total output in markets as well as total profits of firms will increase under certain conditions, (5) KAL and JIN Air tend to get caught in an unresolved conflict on level of LCC cost.

Details

Journal of International Logistics and Trade, vol. 7 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 30 April 2018

Seock-Jin Hong and François Domergue

The Korean airline industry continues to change in 20-year cycles structurally. The major changes are in their market through deregulation and liberalization resulting in adding…

149

Abstract

The Korean airline industry continues to change in 20-year cycles structurally. The major changes are in their market through deregulation and liberalization resulting in adding more carriers, especially low-cost carriers (LCCs) from 2006. The authors categorize three types of LCCs in Korea: (1) independent LCCs, (2) LCCs subsidized by existing airlines as airlines-within-airlines (AwAs), and (3) LCCs supported by conglomerates and local governments. Independent LCCs have suffered financially during the research period from 2009 to 2013, especially from the impaired capital, even though these LCCs are growing rapidly and expanding their markets in domestic and international routes. AwAs’ efficiency is higher than that of independent LCCs, the roles in the market are limited because of cannibalization by their mother company.

Details

Journal of International Logistics and Trade, vol. 16 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 13 October 2021

Riccardo Giannetti, Lino Cinquini, Paola Miolo Vitali and Falconer Mitchell

The purpose of this paper is to investigate how a substantial organization gradually builds a management accounting system from scratch, changing its accounting routines by…

3459

Abstract

Purpose

The purpose of this paper is to investigate how a substantial organization gradually builds a management accounting system from scratch, changing its accounting routines by learning processes. The paper uses the experiential learning theory and the concept of learning style to investigate the learning process during management accounting change. The study aims to expand the domain of management accounting change theory to emphasize the learning-related aspects that can constitute it.

Design/methodology/approach

The paper provides an interpretation of management accounting change based on the model of problem management proposed by Kolb (1983) and the theory of experiential learning (Kolb, 1976, 1984). The study is based on a 14-year longitudinal case study (1994‐2007). The case examined can be considered a theory illustration case. Data were obtained from a broad variety of sources including interviews, document analysis and adopting an interventionist approach during the redesign of the costing system.

Findings

The paper contributes to two important aspects of management accounting change. First, it becomes apparent that the costing information change was not a discrete event but a process of experience and learning conducted through several iterations of trial-and-error loops that extended over the years. Second, the findings reveal that the learning process can alter management accounting system design in a radical or incremental way according to the learning style of the people involved in the process of change.

Research limitations/implications

Because of the adopted research approach, results could be extended only to other organizations presenting similar characteristics. Several further areas of research are suggested by the findings of this paper. In particular, it would be of interest to investigate the links between learning styles and communication and its effect on management accounting change.

Practical implications

The paper includes implications for the management of learning during management accounting change, to improve the efficiency and effectiveness of this process.

Originality/value

This paper is one response to the call for an interdisciplinary research approach to the management accounting change phenomena using a “method theory” taken from the discipline of management to provide an explanation of the change in management accounting. In respect of the previous literature, it provides two main contributions, namely, the proposal of a model useful both to interpret and manage learning processes; the effect of learning style on management accounting routines change.

Details

Qualitative Research in Accounting & Management, vol. 18 no. 4/5
Type: Research Article
ISSN: 1176-6093

Keywords

Open Access
Article
Publication date: 6 December 2019

Roberto Marx, Pedro Siqueira de Magalhães and Felipe Ferreira de Lara

The purpose of this paper is to identify low-costbus business models from different parts of the world and check their applicability in the Brazilian market. It also identifies…

2749

Abstract

Purpose

The purpose of this paper is to identify low-costbus business models from different parts of the world and check their applicability in the Brazilian market. It also identifies crucial factors for the development of that kind of business and investigates the relationship between low-cost buses and other modes of transport. This research analyzes every relevant aspect to the applicability of low-cost business models in Brazil, driving to discussions and conclusions. The gains on the development of low-cost bus systems in Brazil may have a wide reach, from personal to general public benefits.

Design/methodology/approach

Business models for low-cost bus systems are used to analyze in a qualitative approach. The data are collected through semi-structured interviews, direct observations and documental basis. In addition, innovations over the previous five years are evaluated in order to establish a comparative pattern between companies.

Findings

There is a great potential in the Brazilian passenger market for the entrance of low-cost bus companies. The only question is just when it is the right time to enter that market. Most of the negative points presented for the implementation of a low-cost company are related to the current economical and political crisis in Brazil. It was identified as a potential cause for the overall decrease of the passengers market in recent years, and specifically of the bus passengers market.

Originality/value

The recent regulation changes, the high demand for passengers and even the similarity of possible routes in Brazil to the ones in Europe and in the USA make Brazil a fertile soil for the development of that kind of business. A similar price mechanism to the ones applied worldwide was also identified as doable in Brazil.

Details

Revista de Gestão, vol. 27 no. 1
Type: Research Article
ISSN: 2177-8736

Keywords

Open Access
Article
Publication date: 6 September 2022

Ulla Forseth

The aim of this paper is to explore the evolving nature of the work of cabin crew in a Scandinavian carrier in three eras, drawing on theories of gender and emotional labour.

1155

Abstract

Purpose

The aim of this paper is to explore the evolving nature of the work of cabin crew in a Scandinavian carrier in three eras, drawing on theories of gender and emotional labour.

Design/methodology/approach

The paper draws on ethnographic data from fieldwork, interviews and documents.

Findings

From being a feminized and temporary occupation for young, upper- and middle-class women in the 1970s, the occupation became a full-time job and with greater diversity of cabin crew. Today there are signs of the job becoming a precarious and temporary one of demanding and devalorized work in a polarized and class-divided labour market. Changing circumstances impact on the emotional labour requirement and terms and conditions at work.

Research limitations/implications

A limitation is that the research design was not initially longitudinal in the sense that the author does not have exactly the same kind of data from each era. The author has, however, been involved in this field for two decades, used multiple methods and interacted with different stakeholders and drew on a unique data material.

Practical implications

The development in aviation is contributing to new discriminatory practices, driving employee conditions downwards and changing the job demands. This development will have practical consequences for the lives and families of cabin crew.

Social implications

The analysis illustrates how work ‘constructs' workers and contributes in creating jobs that are not sustainable for the employees. Intensification of work, insecurity and tougher working conditions also challenge key features in the Nordic model such as proper pay, decent work and a life-long employment. Much indicates that the profession is again becoming a temporary one of demanding work with poor working conditions in a polarized and class-divided labour market.

Originality/value

The research contributes to the literature on emotional labour, gender and the evolving nature of the work of cabin crew. The unique data material, the longitudinal aspect of the research and the focus on a single network carrier are good in charting changes over time.

Details

Equality, Diversity and Inclusion: An International Journal, vol. 42 no. 4
Type: Research Article
ISSN: 2040-7149

Keywords

Open Access
Article
Publication date: 10 October 2018

Stephan Bingemer

The International Air Transport Association (IATA) New Distribution Capability (NDC) standard aims at modernising the airline distribution landscape. It has supported the spread…

5576

Abstract

Purpose

The International Air Transport Association (IATA) New Distribution Capability (NDC) standard aims at modernising the airline distribution landscape. It has supported the spread of Direct Connects by providing a common standard for linking airlines to travel agencies. The purpose of this paper is to analyse the historical development of airline distribution and to derive implications for the future.

Design/methodology/approach

This paper follows the approach of Yeoman and McMahon-Beattie (2017) in providing a chronological account based on published research.

Findings

Direct Connects are discussed to be a step back in the evolution of the distribution landscape because they foster disaggregation. An analysis of the history of distribution finds that a comparison of Direct Connects to the early stages of computer reservation system technology falls short to recognise the tremendous technological and market changes connected to the internet, cloud computing and the rise of low-cost carriers. Moreover, drawing on the seminal article by Anderson and Tushman (1990) on technical discontinuities and dominant designs, the current state of the distribution landscape is characterised to be an era of ferment that is driven by design competition and that might end up in a new dominant design.

Originality/value

The originality of this paper lies in a critical review of the turning points of distribution. By reviewing the past developments, the paper sheds light on the contribution that IATA NDC and Direct Connect technology might deliver to the field of airline distribution.

Details

Journal of Tourism Futures, vol. 4 no. 3
Type: Research Article
ISSN: 2055-5911

Keywords

Open Access
Article
Publication date: 25 March 2020

Suhaib Aamir and Nuray Atsan

The purpose of this paper is to shed light on the remarkable trend of multisided platforms (MSPs) in the travel industry with the help of which travel agencies (TAs) and global…

5164

Abstract

Purpose

The purpose of this paper is to shed light on the remarkable trend of multisided platforms (MSPs) in the travel industry with the help of which travel agencies (TAs) and global distribution systems (GDSs) can reinforce their intermediary roles. Orthodox TAs face the threats of disintermediation because of the ever faster-changing developments in information and communication technologies, such as the emergence of metasearch engines, online travel agencies, direct bookings on airline websites and the widespread of mobile applications for travel related bookings. GDSs face similar threats of disintermediation from low-cost carriers and legacy carriers, as these carriers promote and encourage direct bookings via their official websites or via the new distribution capability.

Design/methodology/approach

This is a casestudy-oriented research, and the case selected is a MSP based in Turkey. The data are gathered using semi-structured interviews conducted from 15 international representatives of this MSP in different countries. Interviews were conducted either physically at the MSP’s headquarters in Antalya, Turkey, or virtually using Zoom application from January to October 2019.

Findings

The paper portrays the significance of MSPs in terms of their contributions toward the reintermediation of the two important intermediaries, namely, TAs and GDSs in the travel industry supply chain. Both of them are prone to the dangers of disintermediation because of the developments in technology, networking and communication channels; the worldwide accessibility of the stakeholders to the internet; and the direct reach of suppliers to consumers. The deteriorating role of TAs and GDSs is reignited by the successful launch, deployment and adoption of MSPs in the ecosystem of the travel industry.

Originality/value

This paper offers an insight into the prevailing trend of MSPs in business to business (B2B) trading from the perspective of two main intermediaries, TAs and GDSs, in the supply chain of the travel industry. The paper in a novel way compiles the data from the interviews to shed light on the adoption of MSPs by intermediaries in their business models to reintermediate themselves because the sole reliance of intermediaries on orthodox business models is pushing them on to the verge of disintermediation.

Details

Journal of Tourism Futures, vol. 6 no. 3
Type: Research Article
ISSN: 2055-5911

Keywords

Open Access
Article
Publication date: 3 April 2017

Ian Seymour Yeoman and Una McMahon-Beattie

The primary aim of revenue management (RM) is to sell the right product to the right customer at the right time for the right price. Ever since the deregulation of US airline…

10703

Abstract

Purpose

The primary aim of revenue management (RM) is to sell the right product to the right customer at the right time for the right price. Ever since the deregulation of US airline industry, and the emergence of the internet as a distribution channel, RM has come of age. The purpose of this paper is to map out ten turning points in the evolution of Revenue Management taking an historical perspective.

Design/methodology/approach

The paper is a chronological account based upon published research and literature fundamentally drawn from the Journal of Revenue and Pricing Management.

Findings

The significance and success to RM is attributed to the following turning points: Littlewood’s rule, Expected Marginal Seat Revenue, deregulation of the US air industry, single leg to origin and destination RM, the use of family fares, technological advancement, low-cost carriers, dynamic pricing, consumer and price transparency and pricing capabilities in organizations.

Originality/value

The originality of the paper lies in identifying the core trends or turning points that have shaped the development of RM thus assisting futurists or forecasters to shape the future.

Details

Journal of Tourism Futures, vol. 3 no. 1
Type: Research Article
ISSN: 2055-5911

Keywords

Open Access
Article
Publication date: 13 April 2023

James Peoples, Muhammad Asraf Abdullah and NurulHuda Mohd Satar

Health risks associated with coronavirus disease 2019 (COVID-19) have severely affected the financial stability of airline companies globally. Recapturing financial stability…

33272

Abstract

Health risks associated with coronavirus disease 2019 (COVID-19) have severely affected the financial stability of airline companies globally. Recapturing financial stability following this crisis depends heavily on these companies’ ability to attain efficient and productive operations. This study uses several empirical approaches to examine key factors contributing to carriers sustaining high productivity prior to, during and after a major recession. Findings suggest, regardless of economic conditions, that social distancing which requires airline companies in the Asia Pacific region to fly with a significant percentage of unfilled seats weakens the performance of those companies. Furthermore, efficient operations do not guarantee the avoidance of productivity declines, especially during a recession.

Details

Emerald Open Research, vol. 1 no. 4
Type: Research Article
ISSN: 2631-3952

Keywords

Open Access
Article
Publication date: 30 April 2015

Zhen Gong and Tae Seung Kim

This paper uses various Data Envelopment Analysis (SBM-DEA) approaches to study the efficiency of major airlines in Asia-Pacific region. To evaluate the operation efficiency of…

Abstract

This paper uses various Data Envelopment Analysis (SBM-DEA) approaches to study the efficiency of major airlines in Asia-Pacific region. To evaluate the operation efficiency of fourteen major airlines in Asia-Pacific region from 2003-2011, Available Seat Kilometers(ASK), Available Ton Kilometers(ATK), the number of employees are used as input factors, Revenue Passenger Kilometers(RPK), Revenue Ton Kilometers(RTK), the amount of Sales are used as output factors.

The non-radial SBM-DEA (Slacks-based Measure of Efficiency) model was able to provide a more comprehensive efficiency of combining economic performance and regional difference. And it was also able to capture slack values in input excess and output shortage.

The results demonstrate that Korea and Japan airlines are operated efficiently and could be regarded as the benchmarking airlines. On the other hand, most of the China and ASEAN airlines are deemed to be inefficient. Also analyzing slacks may be more suitable way for the evaluation or suggestion of an improvement scheme for the inefficient airlines. The excess of labor is the major cause of the airlines’ inefficiency.

Details

Journal of International Logistics and Trade, vol. 13 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

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