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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.

Airport privatization has led to the emergence of new industry players enabling them, it is claimed, to raise additional capital, improve efficiency, reduce costs, generate new revenue streams and engage in new commercial airport investments in the market economy. A question remains about the impact and benefit of airport privatization reforms on stakeholder groups. It is also debatable how overall privatized airport performance can be formally assessed. This chapter reports the perceptions of key stakeholder groups on the privatization of Sydney Airport. Preliminary attributes and indicators of the airport performance stakeholder model, with an emphasis on assessing privatized airport performance from stakeholders’ perspectives are considered. A qualitative paradigm was applied to this field research. Leximancer data mining software was used for the thematic analysis of the interviews conducted with key Sydney Airport stakeholders.

The global COVID-19 pandemic highlighted the interconnectivity and interdependence of the modern world economy and international society’s epidemiological vulnerability to the global transmission of human infectious diseases by air travel. The rapid formulation of new pandemic policy responses for the air transport industry at both a national and international level revealed complex tensions between mandatory ‘stay-at-home’ public health interventions and international travel restrictions, which were designed to limit the virus’s spread but which dramatically disrupted everyday social activities, and political and economic imperatives to reopen global air travel as quickly as possible. The aim of this chapter is to examine the development of global policies for the air transport industry from the perspective of aviation public health policy, airline passengers, air freight and financial support for airline and airport operators.

This paper aims to investigate business network activity patterns and how they change when actors experience tensions.

Four tensions, developed from previous literature, are considered in relation to how they influence activity patterns. A longitudinal case study focusing on the modernization of an international airport illustrates how tensions experienced by actors influence changes in activity patterns.

Results highlight that when tensions in relation to network position are experienced activity patterns are more likely to break and form new patterns. When multiple tensions are experienced within the same period, an old activity pattern is more likely to be broken and the new activity pattern develop.

Contributions in relation to interdependencies between activities heighten the impact of changes leading to the breaking of existing patterns, particularly the importance of coordination activities. These findings are context specific because activity patterns vary according to the industry.

Practical implications indicate that understanding network interdependences within the change process is important, particularly for co-ordination activities. The study informs practitioners about possible outcomes while tensions are experienced. This study found that when actors are experiencing multiple tensions, breaking of activity patterns is more likely to occur while experience less tensions extending existing activity patterns becoming more likely.

Contributions are made in relation to gaps in investigating the business network activity layer and their changes in relation to tensions.

This paper aims to provide an assessment of tourism promotion in tourist destinations and airports (TPTDs) and to organize and classify the literature on tourism promotion, with the aim of staging the importance of this topic and encouraging future research in the projection of tourism and marketing sectors.

The paper uses the Social Sciences Citation Index (SSCI) database to analyze the bibliometric in TPTDs topic from 2000 to 2021. Additionally, the paper also uses the visualization of similarities (VOS) viewer software to map graphically the bibliographic material. The graphical analysis uses bibliographic coupling, co-citation, citation and co-occurrence of keywords.

This study provides an amended new definition of tourism promotion, which is the efficient management of a destination’s resources and strategic plans by destination marketing organizations (DMOs) to adapt the tourism supply to market trends and will empower tourists to visit such destinations. Furthermore, results also show a new paradigm applied to TPTDs topic and classified in five first-order research streams. Digital and mobile marketing, infrastructure, branding, quality, accessibility and information factors about a specific destination which are mostly demanded by tourists are considered as an important means of promotion for the tourism industry.

The contribution of this study is important to identify new challenges and opportunities for researchers, DMOs, airport and airlines operators and stakeholders, as disentangling existing contradictions and applying new theoretical framework to make better future decisions by researchers and organizations to provide higher quality to new research in the context of the TPTDs.

This chapter reviews the key results obtained in previous studies of airline mergers. It is found that the effect of mergers on airfares is dependent on the network configurations of merging airlines. Fare increases are frequently observed on overlapped routes. However, if the networks of two merging airlines are complementary, the expanded network after the merger leads to cost savings, increase in travel options, and improvement in service quality. Therefore, in a deregulated market, with few entry barriers, relaxing merger regulations is likely to improve welfare. However, most welfare evaluations do not incorporate quality changes or dynamic competition effects. Empirical investigations are primarily ex post analysis of mergers that have already passed antitrust reviews. The relationship between market concentration and welfare might be nonlinear and market specific. Therefore, airline mergers and alliances should be reviewed case by case. Methodological improvements are needed in future studies to control for the effects of complicating factors inherent in ex post evaluations.

In his article ‘Regional strategies of service sector multinationals’, Rugman (2003) came to the conclusion that most MNEs in service industries are home region-based, i.e., they have more than 50% of their sales in the home region. In a more recent article, Rugman and Verbeke (2004) found that the vast majority of MNEs included in the Fortune 500, are home-region based. That was a surprising result, as the increasing economic interdependence among nations, the presence of substantial demand for high knowledge intensive goods and services throughout the triad of North America, the European Union and Asia, and the presence of large MNEs in each of the triad regions, all suggest that fierce rivalry for market share would take place throughout the triad. A transaction-cost economics explanation offered by Rugman and Verbeke (2005a) was that the required, location-specific linking investments are far more substantial when firms establish activities outside their home region than inside the home region. Linking investments are critical to permit the profitable deployment of the MNE's non-location bound FSAs across borders. Linking investments are necessary to develop or access location-bound FSAs in host countries (thus permitting national responsiveness), and sometimes to create new, recombined bundles of non-location bound FSAs (permitting increased economies of scale, scope or exploitation of national differences).

It is important for stakeholders to understand the driving forces of the aviation industry and economic wellbeing and how these sectors are interconnected. This chapter studies the relationships between the African aviation industry and the economy. It is framed as a causal linkage considering the priority investment sector that enhances the sustainable wellbeing of the society. Analyses were conducted for 38 African countries using time series data from 1981 to 2019. The results show that causal relationships are heterogeneous and context-specific. Four patterns of causal relationships between air travel demand and the economy are identified: unidirectional causality in either directions; bidirectional causality; and indeterminate causal direction. However, the causal direction in any economic or policy-related matter may change with political reforms and changes to economic policy.