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The purpose of this paper is to highlight the need for an entity to manage airborne relief when a nation’s civil aviation authorities are overwhelmed or incapacitated due to a major rapid-onset disaster.

The paper examines why relief airflow management was so vital during the 2010 Haiti earthquake and how this management was accomplished. The author uses a case study methodology that includes interviews with logistics and aviation experts within the humanitarian and military communities involved in the Haiti relief effort.

The research highlighted an airflow management capability gap within the humanitarian community. The author sets forth several possible alternatives for resolving this gap.

The research is a single case study of the 2010 Haiti earthquake. While performing a multiple case study may have provided more widely applicable conclusions, this case study provides in-depth information applicable to the worst of disasters, where an airflow management capability is most likely to be needed.

While host nation civil aviation authorities retain responsibility for airspace/airflow management after a disaster, these can oft be overwhelmed by the volume of airborne relief flooding the area. Without an entity to assist the affected nation with airflow management, smooth logistical flow of relief goods to those in need can be catastrophically impeded.

Little research exists on disaster relief airflow management or the legitimate need for this capability to be developed within the humanitarian community.

Airport economics literature has recently included the supply of concession services among the factors that might affect airport pricing. In particular, there is only little empirical analysis on whether: (i) the supply of airport concession services can stimulate the demand for travel (two-side complementarity) and (ii) the demand for airport concession services is independent of traveling activities (welfare neutrality). In this chapter, we survey papers that have addressed two-side complementarity and welfare neutrality in airport concessions. Our goal is to discuss the different assumptions that have shaped the models and to collect evidences, facts and empirical findings that may support analytical hypotheses. We argue that the notions of two-side complementarity and welfare neutrality might be interrelated – especially when airports invest in concessions in the area accessible to non-passengers. Welfare gains should be assessed on a case by case basis, depending on the type of airport in terms of ownership, size (and the relative mass of connecting passengers compared to origin–destination passengers), and the source of concession revenues. Our arguments might be particularly relevant to policy makers who need to understand (i) whether the supply of concessions reduces or increases the benefits of airport (aviation) price regulation and (ii) whether the effective control of market power may require the regulation of the prices of both the businesses.

It is demonstrated how an analysis of airports’ cost structures and the calculation of long-run marginal costs (MCs) of serving passengers and airplanes can be used as a basis for setting airport charges according to the principles of welfare economics. Based on Norwegian data, the MC for an extra passenger (PAX) and extra air traffic movement (ATM) are used to set airport charges under the assumption that the charges should be equal for all airports in the country. When adjusting the estimates to meet revenue restrictions and comparing the estimates to current charges, we observe that PAX should be charged more and ATM less. This finding is in line with recommendations from the International Air Transport Association (IATA). When allowing charges to vary between airports, we demonstrate how a Ramsey pricing approach can be applied to set differentiated PAX and ATM charges, considering both the supply side (the competitive conditions between the airlines operating at the airports) and the demand side (the passengers’ price elasticity of demand).

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.

In this chapter, we support that pricing carbon emissions policies in aviation might have a lower than expected impact on aviation activity, if such policies are accompanied by investments in environmental technology and an adequate communication strategy by the airlines, which eliminates information asymmetries. Furthermore, we suggest that firms' environmental strategies might be an important advantage in competition. Using orthogonal design techniques, we developed a binary choice experiment, in which carbon emissions are presented to 338 German respondents among other choice-related attributes. Estimating several binary logit models, we are in a position to compute the air travelers' willingness to pay (WTP) for carbon emissions reductions. Findings suggest that passengers consider carbon emissions in their individual airline (itinerary) choice decision, if they receive the corresponding information. We also show that the passengers' WTP for carbon emissions reductions is in line with recent estimates on marginal damage cost. Furthermore, we find that WTP increases for passengers with high environmental sensitivity, whereas it decreases for frequent flyers. Investments in environmental technology and airline commitment for environmental-related firm policy positively influence the passengers' choices. It appears that the average passenger is more sensitive to environmental issues and is willing to pay more for environmental protection than industry officials or policymakers presume.

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.

The AirAsia India 2017 (AAI) case presents the situation faced by Tony Fernandes, the CEO of the AirAsia group of companies, in 2017, when he had to respond to the changes in aviation policy made by the Ministry of Civil Aviation (MCA). As per the changes, an airline operating in India could start its international operations without having five years of domestic flying experience provided it deployed 20 of its aircraft or 20% of the total capacity, whichever was higher, for domestic operations. The objective of this case is to help discuss issues relating to sustaining late entry and exploring new growth opportunities in the context of regulatory changes.

If aeroplanes and passengers, as well as property and people on the ground are to be protected, potential perpetrators of aviation terrorism must be prevented from breaching security checkpoints and gaining access to ‘secure’ airport areas and to aircrafts. Given the interconnectedness of the air transportation system, a sufficiently high level of security must be provided throughout the entire system. In this chapter we examine terrorism issues relevant to airline and airport security internationally, a topic that has received much attention since 9/11. Understanding the key issues is crucial in evaluating the various methods of regulating and providing aviation safety and security. The purpose of this chapter is to review the key features of the Aviation and Transportation Security Act and the characteristics of the resulting security policy. Then we examine terrorism, previous terrorists' acts against aviation as well as current and future aviation threats. A summary of our major points completes the chapter.