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Aviation Logistics and Management, Organization Management.
Abstract
Subject Area
Aviation Logistics and Management, Organization Management.
Study Level
This case is suitable to be used in advanced undergraduate and MBA/MSc level.
Case Overview
This case highlights the challenges of obtaining “Green Organization” certification process of ICF Airports Antalya. The Directorate General of Civil Aviation (DGCA) has initiated a Green Airport project in 2009. The aim of the project is to promote the systematic reduction and, where possible, elimination of the environmental impacts of airport operation. Organizations are required to establish, implement, document, and maintain an environmental management system (EMS) in accordance with the current version of the TS EN ISO 14001 EMS Standards. An annual Greenhouse Gas Inventory Report is required to be prepared in accordance with the TS EN ISO 14064-1 standard, and Greenhouse Gas Inventory Report must be verified by the TSE in accordance with TS EN ISO 14064-3 standard. When an organization meets these requirements, DGCA grants the organization a “Green Company” certificate, which allowed a 20% discount on the extension fee of authorization documents and licenses. Although ICF Airports Antalya faced several challenges, it was issued “Green Organization” certificate by the DGCA in 2010 and finally became 19th greenest airports in the world.
Expected Learning Outcomes
This case illustrates the following:
the process of Green Company certification in aviation sector;
the ways to handle challenges of the green organization certification process; and
the needs for engaging stakeholders in environmental initiatives.
the process of Green Company certification in aviation sector;
the ways to handle challenges of the green organization certification process; and
the needs for engaging stakeholders in environmental initiatives.
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Bahareh Golkar, Siew Hoon Lim and Fecri Karanki
A major source of external funding for US airports comes from issuing municipal bonds. Credit rating agencies evaluate the bonds using multiple factors, but the judgments behind…
Abstract
Purpose
A major source of external funding for US airports comes from issuing municipal bonds. Credit rating agencies evaluate the bonds using multiple factors, but the judgments behind the ratings are not well understood. This paper examines if airport rate-setting methods affect the bond ratings of US airports.
Design/methodology/approach
Using a set of unbalanced panel data for 58 hub airports from 2010 to 2019, we examine the effect of the rate-setting methods and other airport characteristics on Fitch’s airport bond rating.
Findings
We find that compensatory airports consistently receive a very high bond rating from Fitch. The probability of getting a very high Fitch rating increases by ∼28 percentage points for a compensatory airport. Additionally, the probability of getting a very high rating is about 33 percentage points higher for a legacy hub.
Research limitations/implications
The study uses Fitch bond ratings. Future studies could examine if S&P’s and Moody’s ratings are also influenced by airport rate-setting methods and legacy hub status.
Practical implications
The results uncover the linkage between bond ratings and their determinants for US airports. This information is important for investors when assessing airport creditworthiness and for airport operators as they manage capital project financing.
Originality/value
This is the first study to evaluate the effects of rate-setting methods on airport bond rating and also the first to document a statistically significant relationship between airports’ legacy hub status and bond ratings.
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Yonghwa Park, Hun-Koo Ha and Oh Kyoung Kwon
This paper evaluates and assesses the competitiveness of airports by analyzing the efficiency of those in Northeast Asia. This research implemented Data Envelopment Analysis (DEA…
Abstract
This paper evaluates and assesses the competitiveness of airports by analyzing the efficiency of those in Northeast Asia. This research implemented Data Envelopment Analysis (DEA) to compare the competitiveness of airport efficiency and Decision Making Unit (DMU), which was selected by the top ranking freight operations among the airports in this region. Due to the lack of previous research with regard to the competitiveness of hub concentrated airports in air cargo volume, the variables have been screened for selection through referential documents and records related to air freight. Finally, aviation freight experts assisted in the final selection of the relevant variables for this research. The result of the analysis show that the larger airports in Northeast Asia are positively correlated with higher efficiency. In contrast, inefficient airports have suffered from over capacity or insufficient input.
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Michael Pitt, Fong Kok Wai and Phua Chai Teck
Airport design has improved significantly in the last 20 years. Design has moved from simple protection from the elements to almost full automation. Many older airport facilities…
Abstract
Airport design has improved significantly in the last 20 years. Design has moved from simple protection from the elements to almost full automation. Many older airport facilities are now outdated and require replacement. The decision to replace must be made based upon benchmarking with similar airport facilities. Summarises the current position with airport design and suggests that efficient use of facilities cannot depend upon shareholder return alone but must be based on national interest and efficiency demonstrated through external benchmarking. Suggests that facilities managers must be aware of the expectations of the airlines and passengers and the indicators used in the assessment of performance. Outlines the reasons that influence an airport’s decision to upgrade or replace its terminal facilities.
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K‐J. Tseng, Jow‐Fei Ho and Yuan‐Jing Liu
This paper aims to assess the performance evaluation of major international airports in the world.
Abstract
Purpose
This paper aims to assess the performance evaluation of major international airports in the world.
Design/methodology/approach
In this study, the authors utilized data envelopment analysis in an input‐oriented method to discuss the overall operational performance of 20 major international airports between 2001 and 2005. They used cross efficiency measure to determine the international airports that enjoy the best operational performances and used the bilateral model to compare the performance differences between international airports of different regions.
Findings
The Atlanta Airport (ATL) in the USA and the Beijing Airport (PEK) in China experienced MPSS. The overall performance of international airports in Asia is better than those in Americas, Europe, and Oceania.
Research limitations/implications
Service quality can be discuss in the field in the future.
Practical implications
In sensitivity analysis, four inputs had positive impacts on overall performances.
Originality/value
The ATL in the USA and the PEK in China were the best practices for the other international airports.
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Dawna L. Rhoades, Blaise Waguespack and Seth Young
This paper addresses efforts to design a quantitative index of characteristics and factors that comprise quality in airport facilities and operations from the perspective of all…
Abstract
This paper addresses efforts to design a quantitative index of characteristics and factors that comprise quality in airport facilities and operations from the perspective of all airport service customers including airlines, airport tenants, airport service operators, and consumers of airline and air cargo operations. The results of an initial survey of airport directors and consultants have identified 12 broad factors that, in their view, most affect the quality of airport operations. These factors include parking, capacity, ground transportation, shopping and restaurant services, and waiting area considerations.
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Using Social Network Analysis (SNA), this paper examines the inter-country airline logistics relationships in East Asia. Based on the flight schedule data, which has been gathered…
Abstract
Using Social Network Analysis (SNA), this paper examines the inter-country airline logistics relationships in East Asia. Based on the flight schedule data, which has been gathered by the authors, the overall features of airline logistics structure and the specific roles of each airport could be more clearly examined.
The main results of this paper are as follows: Beijing has the highest Degree Centrality, but excluding the domestic lines, Incheon has the highest Degree Centrality, which would imply that a relatively high Centrality of logistics for China’s airports is due to the greater number of domestic lines. The focal hub status of Incheon airport is also supported by the fact that Incheon contains the highest Betweenness Centrality.
Secondly, evaluated by the types of brokerage role, Incheon has a remarkably strong role as a liaison, which means Incheon airport functions as a transfer hub between two different regions outside of Korea. However, considering only the to/from China airline links, Hong Kong has the highest score as a liaison. These conflicting results imply that as China’s airline transportation continuously increases, Hong Kong will become a strong rival to Incheon.
Thirdly, in the analysis of Structural Hole which functions the broker and acts as a hub by linking unconnected airports, Incheon has the highest possibilities as a hub airport. However, only considering to/from China airlines, Hong Kong would dominate Incheon.
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Airport strategic direction is usually linked to the changing nature of airlines and their evolving facilities requirements. In the US airports are predominantly publicly owned…
Abstract
Airport strategic direction is usually linked to the changing nature of airlines and their evolving facilities requirements. In the US airports are predominantly publicly owned giving rise to different organizational structures to those associated with many of the other countries, such as the UK, which are currently experiencing a change in the nature of airline products. This paper examines the different responses that are possible and not possible within the organisational structures of airports, focusing on some of the limitations of the current US and UK models of ownership and how these may impede economic growth. The paper ends with a look at the structural problems that arise in the management of air travel in the best interests of the traveller in the UK and how these problems might be resolved through alliances between the airlines and the airports.
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Monica Cerdan Chiscano and Simon Darcy
The present paper answers two significant questions: (1) What are the relative consumer and firm-level effects of marketing through metaverse compared to conventional marketing…
Abstract
Purpose
The present paper answers two significant questions: (1) What are the relative consumer and firm-level effects of marketing through metaverse compared to conventional marketing endeavors? (2) What are the current trends in utilizing the metaverse as reported in the recent literature?
Design/methodology/approach
This study employs a systematic literature review methodology, utilizing a Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) flowchart to synthesize existing research. Thirty-five articles written in English were selected and analyzed from two databases, Web of Science and EBSCO Host.
Findings
The findings indicate that consumer-level effects of the metaverse include consumer loyalty and brand attachment. The firm-level benefits are decentralization and cost reductions. The paper proposes a framework indicating variables that could attenuate or enhance the association between immersive components of the metaverse and their resultant effects.
Originality/value
This study contributes to understanding the role of metaverse in marketing practices related to the marketing mix components. The study conceptualizes a novel framework for the metaverse and its resultant effects.
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