Download or read book Evolution of United States Airlines Productivity and Cost Performance from 2004 2012 written by QianNan Jiang and published by . This book was released on 2014 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the past decade, the U.S. airline industry has undergone tremendous transformation triggered by major events such as the surge in fuel prices and the economic recession. Network legacy carriers implemented drastic measures to reduce cost and increase productivity. Some filed bankruptcy protection to restructure, and others pursued mergers for consolidation and cost savings through operational synergies. Low cost carriers have been profitable but are now faced with higher costs stemming from increasing labor seniority and aging fleets. Recently, the emergence of ultra-low cost carriers has intensified the competition, as these newer airlines operate at extremely low costs and offer rock bottom low fares. The main objective of this thesis is to examine the evolution of U.S. airlines' productivity and cost performance from 2004 to 2012. This thesis provides an in-depth analysis of unit costs, aircraft and employee productivity of 10 major U.S. passenger airlines, which are classified into three groups: network legacy carriers (NLCs), low cost carriers (LCCs), and ultra-low cost carriers (ULCCs). We compare the unit costs and productivity trends at industry aggregate and domestic operations level for these three groups. We also explore the underlying forces that drove these trends and the effect of stage length on unit cost and productivity. The results indicate that the gaps between NLCs' and LCCs' unit cost excluding transport related and fuel expenses, labor unit cost, and employee and wage productivity have decreased from 2004 to 2012. Most notably, the gaps between their unit cost excluding fuel and transport related expenses and labor unit costs were reduced by 48% and 67%, respectively. NLCs performed dramatic cuts in labor in the 2000s and increased aircraft and employee productivity by shifting their focus to international markets. LCCs had the steepest increase in unit cost and maintained the highest aircraft utilization but are losing their traditional labor cost and productivity advantage to ULCCs. In 2012, ULCCs' labor unit cost was about half of NLCs' and LCCs', and their employee productivity was 34% greater than NLCs' and 20% greater than LCCs'. ULCCs have truly achieved lowest unit cost with highest labor efficiency in the industry.

Download or read book The Global Airline Industry written by Peter Belobaba and published by John Wiley & Sons. This book was released on 2015-07-06 with total page 536 pages. Available in PDF, EPUB and Kindle. Book excerpt: Extensively revised and updated edition of the bestselling textbook, provides an overview of recent global airline industry evolution and future challenges Examines the perspectives of the many stakeholders in the global airline industry, including airlines, airports, air traffic services, governments, labor unions, in addition to passengers Describes how these different players have contributed to the evolution of competition in the global airline industry, and the implications for its future evolution Includes many facets of the airline industry not covered elsewhere in any single book, for example, safety and security, labor relations and environmental impacts of aviation Highlights recent developments such as changing airline business models, growth of emerging airlines, plans for modernizing air traffic management, and opportunities offered by new information technologies for ticket distribution Provides detailed data on airline performance and economics updated through 2013

Download or read book The Evolution of the US Airline Industry written by Eldad Ben-Yosef and published by Springer Science & Business Media. This book was released on 2005-07-13 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Evolution of the US Airline Industry discusses the evolution of the hub-and-spoke network system and the associated price discrimination strategy, as the post-deregulation dominant business model of the major incumbent airlines and its breakdown in the early 2000s. It highlights the role that aircraft – as a production input – and the aircraft manufacturers' strategy have played in shaping this dominant business model in the 1990s. Fierce competition between Airbus and Boeing and plummeting new aircraft prices in the early 2000s have fueled low-cost competition of unprecedented scope, that destroyed the old business model. The impact of the manufacturers' strategy on these trends has been overlooked by industry observers, who have traditionally focused on the demand for air travel and labor costs as the most critical elements in future trends and survivability of major network airlines. The book debates the impact and merit of government regulation of the industry. It examines uncertainty, information problems, and interest group structures that have shaped environmental and safety regulations. These regulations disregard market signals and deviate from standard economic principles of social efficiency and public interest. The Evolution of the US Airline Industry also debates the applicability of traditional antitrust analysis and policies, which conflict with the complex dynamics of real-life airline competition. It questions the regulator's ability to interpret industry conduct in real time, let alone predict or change its course towards a "desirable" direction. The competitive response of the low-cost startup airlines surprised many antitrust proponents, who believed the major incumbent airlines practically blocked significant new entry. This creative market response, in fact, destroyed the major incumbents' power to discriminate pricing – a task the antitrust efforts failed to accomplish.

Download or read book Winning Airlines written by Tae Hoon Oum and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 231 pages. Available in PDF, EPUB and Kindle. Book excerpt: Major institutional, regulatory, and structural changes have occurred in international air transport during the past two decades. Many countries have deregulated their domestic airline industries and open skies continental blocs have formed in Europe and North America A movement is now underway to create a liberalized continental bloc in Australasia. International air transport has been substantially liberalized due to the diminishing role of lATA as an industry cartel, and via a series of liberalized bilateral agreements signed between many countries, including the u.s. and UK Increased liberalization and continentalization have induced major airlines to create global service networks through inter-carrier alliances. And all these changes are intensifYing competition between major carriers in both domestic and international markets. The increased competition and economic recession in the early 1990s led many airlines to massive fmancial losses, forcing them to undertake major restructuring to improve efficiency and reduce costs. Although it is important for an airline to map out proper strategies in the globalizing airline industry, the ultimate ability of a carrier to swvive and prosper in increasingly competitive markets greatly depends on its productivity and cost competitiveness.

Download or read book The Evolution of the Airline Industry written by Steven Morrison and published by Brookings Institution Press. This book was released on 2010-12-01 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the enactment of the Airline Deregulation Act in 1978, questions that had been at the heart of the ongoing debate about the industry for eighty years gained a new intensity: Is there enough competition among airlines to ensure that passengers do not pay excessive fares? Can an unregulated airline industry be profitable? Is air travel safe? While economic regulation provided a certain stability for both passengers and the industry, deregulation changed everything. A new fare structure emerged; travelers faced a variety of fares and travel restrictions; and the offerings changed frequently. In the last fifteen years, the airline industry's earnings have fluctuated wildly. New carriers entered the industry, but several declared bankruptcy, and Eastern, Pan Am, and Midway were liquidated. As financial pressures mounted, fears have arisen that air safety is being compromised by carriers who cut costs by skimping on maintenance and hiring inexperienced pilots. Deregulation itself became an issue with many critics calling for a return to some form of regulation. In this book, Steven A. Morrison and Clifford Winston assert that all too often public discussion of the issues of airline competition, profitability, and safety take place without a firm understanding of the facts. The policy recommendations that emerge frequently ignore the long-run evolution of the industry and its capacity to solve its own problems. This book provides a comprehensive profile of the industry as it has evolved, both before and since deregulation. The authors identify the problems the industry faces, assess their severity and their underlying causes, and indicate whether government policy can play an effective role in improving performance. They also develop a basis for understanding the industry's evolution and how the industry will eventually adapt to the unregulated economic environment. Morrison and Winston maintain that although the airline industry has not rea

Download or read book Economics of the U S Commercial Airline Industry Productivity Technology and Deregulation written by Ivan L. Pitt and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economics of the U.S. Commercial Airline Industry: Productivity, Technology and Deregulation illustrates the impact of upstream technological change in capital goods (aircraft and aircraft engines) on demand, productivity, and cost reduction in the U.S. airline industry for the years 1970-1992. The aim is to separate supply-side technology push from demand pull in determining investment in aircraft in the US airline industry. The focus of inquiry in this study is at the company level, so the measures are sensitive to company differences such as financial costs, payload, and existing aircraft inventory rather than industry averages. This monograph builds on the new developments in econometric modeling and has a substantial technical component. The quantitative results lead to implications for understanding technology and its impact on the airline industry, as well as for formulating regulatory policy.

Download or read book Airline Efficiency written by John D. Bitzan and published by Emerald Group Publishing. This book was released on 2016-06-10 with total page 388 pages. Available in PDF, EPUB and Kindle. Book excerpt: An efficient air transport system is critical to countries attaining and sustaining healthy economies in an increasingly interconnected world economy. This volume 5 of Advances in Airline Economics includes literature surveys and original empirical research examining airline efficiency in the twenty first century.

Download or read book Productivity and Efficiency Measurement of Airlines written by Boon L. Lee and published by Elsevier. This book was released on 2023-02-24 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: In today’s competitive environment, airlines are doing everything they can to improve efficiency and productivity. Productivity and Efficiency Measurement of Airlines: Data Envelopment Analysis using R identifies and explains sources of airline efficiency and helps achieve these goals through the use of state-of-the-art measurement techniques. Each chapter measures airline performance through the data envelopment analysis (DEA) model and other DEA variants. This book thoroughly discusses topics such as cost and revenue efficiency performance, carbon emissions performance management, and complex airline data analysis, employing appropriate models for each. Model methodologies are also discussed. The in-depth coverage is useful for all audiences, including students with a basic understanding of models, researchers and airline operators and management. Productivity and Efficiency Measurement of Airlines: Data Envelopment Analysis using R provides R codes to help readers generate results and quantify efficient practices. These results provide airline decision-makers with the essential information they need to create better policies and avoid underperforming practices. Thoroughly summarizes key DEA measurement models for productivity and efficiency ofairlines Guides users in generating airline performance results using DEA model and its variants Features R codes useful for generating empirical results, and best practices, promoting qualitypolicy and management decisions

Download or read book Efficiency and Competitiveness of International Airlines written by Almas Heshmati and published by Springer. This book was released on 2016-05-18 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the factors that support the strengths of international airlines in general and the Asian airline carriers in particular. Defining the quality of human capital as the level of education and the competence of airline employees, it analyzes the efficiency of 39 airlines in various regions, both in terms of production and cost structures. It argues that, despite Asia’s well-developed and globally competitive manufacturing sector, aided by open market practices, its overall service sector still lags far behind more advanced economies. As this does not stop Asia-based carriers from generally being more efficient than their counterparts in Europe and North America, the book investigates how competitiveness analysis of the airline industry can help Asian policymakers better prepare for the liberalization of the service sector, given how crucial this aspect is for the future growth of the Asia-Pacific region. Efficiency and Competitiveness of International Airlines offers a valuable resource for policymakers, airline employees, and researchers and students of microeconomics.

Download or read book Up in the Air written by Greg J. Bamber and published by Cornell University Press. This book was released on 2013-07-15 with total page 237 pages. Available in PDF, EPUB and Kindle. Book excerpt: "And you thought the passengers were mad. Airline employees are fed up, too-with pay cuts, increased workloads and management's miserly ways, which leave workers to explain to often-enraged passengers why flying has become such a miserable experience."—New York Times, December 22, 2007When both an industry's workers and its customers report high and rising frustration with the way they are being treated, something is fundamentally wrong. In response to these conditions, many of the world's airlines have made ever-deeper cuts in services and their workforces. Is it too much to expect airlines, or any other enterprise, to provide a fair return to investors, high-quality reliable service to their customers, and good jobs for their employees?Measured against these three expectations, the airline industry is failing. In the first five years of the twenty-first century alone, U.S. airlines lost a total of $30 billion while shedding 100,000 jobs, forcing the remaining workers to give up over $15 billion in wages and benefits. Combined with plummeting employee morale, shortages of air traffic controllers, and increased congestion and flight delays, a total collapse of the industry may be coming. Is this state of affairs inevitable? Or is it possible to design a more sustainable, less volatile industry that better balances the objectives of customers, investors, employees, and the wider society? Does deregulation imply total abrogation of government's responsibility to oversee an industry showing the clear signs of deterioration and increasing risk of a pending crisis?Greg J. Bamber, Jody Hoffer Gittell, Thomas A. Kochan, and Andrew von Nordenflycht explore such questions in a well-informed and engaging way, using a mix of quantitative evidence and qualitative studies of airlines from North America, Asia, Australia, and Europe. Up in the Air provides clear and realistic strategies for achieving a better, more equitable balance among the interests of customers, employees, and shareholders. Specifically, the authors recommend that firms learn from the innovations of companies like Southwest and Continental Airlines in order to build a positive workplace culture that fosters coordination and commitment to high-quality service, labor relations policies that avoid long drawn-out conflicts in negotiating new agreements, and business strategies that can sustain investor, employee, and customer support through the ups and downs of business cycles.

Download or read book Airline Economics in Asia written by Xiaowen Fu and published by Emerald Group Publishing. This book was released on 2018-11-30 with total page 313 pages. Available in PDF, EPUB and Kindle. Book excerpt: Covers low-cost carrier growth in Japan, competition against full service hub carriers in the Middle East, aviation market liberalization in Central Asia, high-speed-rail and airline competition in China, air transport and tourism in Asia and Australia, airline performance and outsourcing, airports development, and airport-airline cooperation.

Download or read book United States Airline Industry Trends and Performance 1999 2004 written by Strina François and published by . This book was released on 2006 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: (Cont.) As regards the costs, this work reveals that, in spite of an overall increase in productivity - in labor, aircraft and fuel - the average unit cost increased for the Majors. In addition, the gap in unit cost between the Legacies and the Lowfares actually widened between 1999 and 2004, even though a significant part of this trend is due to a transfer of capacity to the regional airlines. Concerning the revenues, an overall decline of the yield is observed in this thesis, as well as a convergence of the yield of the two subsets of Majors. This analysis finally highlights the fact that, whereas Legacies have reported tremendous losses since 2001, most lowfare airlines were able to break-even or even make money in operations.

Download or read book The New Production of Users written by Sampsa Hyysalo and published by Routledge. This book was released on 2016-04-20 with total page 389 pages. Available in PDF, EPUB and Kindle. Book excerpt: Behind the steady stream of new products, technologies, systems and services in our modern societies there is prolonged and complicated battle around the role of users. How should designers get to know the users’ interests and needs? Who should speak for the users? How may designers collaborate with users and in what ways may users take innovation into their own hands? The New Production of Users offers a rare overview of these issues. It traces the history of designer-user relations from the era of mass production to the present days. Its focus lies in elaborating the currently emerging strategies and approaches to user involvement in business and citizen contexts. It analyses the challenges in the practical collaborations between designers and users, and it investigates a number of cases, where groups of users collectively took charge of innovation. In addition to a number of new case studies, the book provides a thorough account of theories of user involvement as well as and offers further developments to these theories. As a part of this, the book relates to the wide spectrum of fields currently associated with user involvement, such as user-centered design, participatory design, user innovation, open source software, cocreation and peer production. Exploring the nexus between users and designers, between efforts to democratize innovation and to mobilize users for commercial purposes, this multi-disciplinary book will be of great interest to academics, policy makers and practitioners in fields such as Innovation Studies, Innovation Policy, Science and Technology Studies, Cultural Studies, Consumption studies, Marketing, e-commerce, Media Studies as well as Design research.

Download or read book Productivity Performance of United States Passenger Airlines Since Deregulation written by Robert Andre Powell (II) and published by . This book was released on 2012 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt: To evaluate US passenger airlines' productivity performance since the airline deregulation in 1978, this research measures and compares productivity at both the US airline industry and individual carrier levels. Productivity is measured at the aggregate airline industry level in terms of multifactor productivity (MFP), the ratio of a single output to a combination of inputs, in order to compare industry productivity over time from 1978 to 2009. In addition, productivity is measured at the disaggregate carrier level in terms of total factor productivity (TFP), the ratio of total outputs to total inputs, to compare productivity growth across airlines and over time from 1995 to 2010. Our key findings indicate US passenger airlines have experienced tremendous MFP improvements since deregulation despite periods of reduced productivity levels that coincide with exogenous factors that include economic recessions, fuel price spikes, and other unforeseen events. Cumulative MFP in terms of airline traffic (RPMs) and network capacity (ASMs) increased 191% and 117%, respectively, between 1978 and 2009. This implies, irrespective of output measure, US passenger airlines have at least doubled their productive abilities over the past three decades. If RPMs are used as the measure of output, productivity has almost tripled. Looking at individual US carriers' productivity, low-cost carriers achieved rapid TFP growth in the early 2000s before leveling off in the latter portion of the decade. The restructuring efforts of legacy carriers enabled them to improve their productivity growth in the latter part of the 2000s, although at a much lower rate than their low-cost counterparts. As of 2010, although low-cost carriers had a slight advantage in TFP levels, evidence of convergence exists, irrespective of carrier type. Regression analyses indicates, on average, low-cost carriers experienced higher TFP growth and network control variables such as average stage length, load factor, and block hours per day were important factors that help explain observed TFP differentials among carriers.

Download or read book Airline Network Planning and Scheduling written by Ahmed Abdelghany and published by John Wiley & Sons. This book was released on 2018-11-08 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt: A concise resource to the best practices and problem-solving ideas for understanding the airline network planning and scheduling process Airline Network Planning and Scheduling offers a comprehensive resource that is filled with the industry's best practices that can help to inform decision-modeling and the problem-solving process. Written by two industry experts, the book is designed to be an accessible guide that contains information for addressing complex challenges, problems, and approaches that arise on the job. The chapters begin by addressing the complex topics at a broad, conceptual level before moving on to more detailed modeling in later chapters. This approach follows the standard airline planning process and reflects the duties of the day-to-day job of network/schedule planners. To help gain a practical understanding of the information presented, each chapter includes exercises and data based on real-world case studies. In addition, throughout the book there are graphs and illustrations as well as, information on the most recent advances in airline network and planning research. This important resource: Takes a practical approach when detailing airline network planning and scheduling practices as opposed to a theoretical perspective Puts the focus on the complexity and main challenges as well as current practices and approaches to problem-solving and decision-making Presents the information in a logical sequence that begins with broad, conceptual topics and gradually delves into more advanced topics that address modeling Contains international standard airline planning processes, the day-to-day responsibilities of the job, and outlines the steps taken when building an airline network and schedule Includes numerous case studies, exercises, graphs, and illustrations throughout Written for professionals and academics, Airline Network Planning and Scheduling offers a resource for understanding best practices and models as well as the challenges involved with network planning and scheduling.

Download or read book Air Transport Management written by Lucy Budd and published by Taylor & Francis. This book was released on 2016-11-10 with total page 395 pages. Available in PDF, EPUB and Kindle. Book excerpt: Commercial air transport is a global multimillion dollar industry that underpins the world economy and facilitates the movement of over 3 billion passengers and 50 million tonnes of air freight worldwide each year. With a clearly structured topic-based approach, this textbook presents readers with the key issues in air transport management, including: aviation law and regulation, economics, finance, airport and airline management, environmental considerations, human resource management and marketing. The book comprises carefully selected contributions from leading aviation scholars and industry professionals worldwide. To help students in their studies the book includes case studies, examples, learning objectives, keyword definitions and ‘stop and think’ boxes to prompt reflection and to aid understanding. Air Transport Management provides in-depth instruction for undergraduate and postgraduate students studying aviation and business management-related degrees. It also offers support to industry practitioners seeking to expand their knowledge base.

Download or read book U S Airline Industry Operating Cost Measures from 2000 2016 written by William H. Lee (S. M.) and published by . This book was released on 2018 with total page 147 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates the evolution of U.S. airlines' unit operating costs from 2000-2016 as well as the factors that drove major changes in cost metrics. We assess the trends in operating cost by carrier type as well as for individual airlines and find evidence of a recent operating cost divergence between the legacy carriers and their lower cost counterparts. Since 2014, legacy carriers' unit costs, excluding transport-related and fuel expenses, have risen 6% while low cost carriers and ultra-low cost carriers have seen decreases of 1.6% and 10%, respectively. We see the increase in legacy carriers' unit costs has been driven almost entirely by unit labor costs, which have increased 16% since 2014. While the recent operating cost divergence is attributed in large part to changes in labor costs, we recognize the impacts network characteristics impart of unit operating costs. In order to confirm and quantify the principal drivers of operating cost differences between airlines, we conducted several econometric analyses. We found average stage length per departure, employee productivity (measured as output per employee), average seats per departure, and aircraft utilization to be significant in explaining unit cost differences. For every 1 % increase in each metric operating costs, excluding transport-related and fuel expenses, are estimated to decrease by 0.31%, 0.25%, 0.54%, and 0.50%, respectively. We then perform a more detailed analysis on unit labor costs. We find pilot total compensation has risen for all three carrier types and is almost entirely responsible for the increase in labor costs among the U.S. airlines in our sample. Since 2012, Alaska and Spirit Airlines have been the only airlines that have not seen higher unit total pilot compensation. Our investigation revealed how distortions may be introduced when normalizing pilot compensation by ASMs for purposes of comparing different airlines and conclude by proposing a new normalized metric, seat block hours.