Download or read book Service Improvement and Cost Reduction for Airlines written by Heng Chen and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Annual U.S. air travel demand has been growing steadily by 4-5% over the last decade, and it is estimated that the demand will nearly double in the next twenty years. It has also been estimated by the International Civil Aviation Organization that global demand for commercial aircraft will increase at an average annual rate of 4.1% by 2034 (IATA, 2014). However, airport expansions and aviation infrastructure upgrades have not kept pace with the increase in air traffic demand, as only 3% of all the new airport projects around the world are planned in the U.S. (CAPA, 2015). Thus, the operation rates at existing airports are likely to increase significantly, implying a greater need to increase the utilization of currently available runway capacity. With steadily increasing demand in air traffic and limited airport capacity, delay in air traffic is ubiquitous. Approximately 25% of flights experience delays of at least 15 minutes each year, resulting in significant passenger service issues and costs to airlines and society in general. Delays constitute the top service complaint for airlines, which has implications for the society as a whole - both economically and environmentally. Flight delays also increase airline costs directly, due to associated additional fuel, crew and maintenance costs. Recent studies show that the estimated cost of air transportation delay to the American economy ranges from $32.9 billion to $41 billion a year, of which, $8 billion are direct costs to airlines (Ball et al., 2010; Ferguson et al., 2013). Noting that more than 60% of delay is due to airport operations (Balakrishna et al., 2010), this thesis aims at helping reduce delay through better management of arrival and departure operations at airports, which can create relevant and significant value for the airlines and for the society. Arrival and departure operations inherently involve significant uncertainty. When an aircraft is approaching the runway, many factors affect its trajectory, such as weather, wind conditions, pilot behavior, aircraft weight, as well as the differences in types of aircraft and flight management systems. When an aircraft arrives at the gate, operating conditions, such as unplanned security checks, varied durations of deplaning and boarding, as well as the maintenance and fueling involved, could contribute to variations of actual departure time for the next flight. All of these stochastic factors involve uncertainty and they need to be taken into account while making operational decisions. On the other hand, stochastic treatment of such operational problems has not been common in the literature due to difficulties associated with the characterization of uncertainty and the computational tractability. I argue in this thesis that, with recent advances in computing power and data analysis tools, such stochastic treatments are more amenable for practical use. To this end, I study four novel operational problems related to flight arrivals and departures at airports under the uncertainty of operating conditions, and demonstrate the potential value that can be generated through stochastic models within the context of airline and airport operations. The problems I study involve both strategic and tactical decisions for airline service improvement and cost reduction. The first two problems consider managing arrival operations at airports, while the last two problems focus on departure operations. In the first and second problems, I focus on arrival operations in the context of optimized profile descent (OPD), which is a novel arrival procedure for the Next Generation Air Transportation System. In the first problem, I identify policies for managing arrival operations at the tactical level by developing a stochastic dynamic programming framework to manage the sequencing and separation of flights. I find that simple calculation based measures can be used as optimal decision rules during such operations, and that the expected annual savings can be around $29 million if such implementations are adapted by major airports in the U.S. Of these savings, $24 million are direct savings for airlines due to reduced fuel usage, corresponding to a potential savings of 10-15% in fuel consumption over current practice. I also find that optimal spacing of OPD flights is much more important than optimal sequencing of these flights. Furthermore, there is not much difference between the environmental costs of fuel-optimal and sustainably-optimal spacing policies. Hence, an airline-centric approach in improving OPD operations is likely to be not in conflict with objectives that might be prioritized by other stakeholders. In the second problem, I study the optimal design of arrival traffic management systems at airports at the strategic level. I claim that implementation of OPD operations requires effective metering configurations at airports due to the increased role of uncertainty in aircraft trajectories during descent. I develop stochastic models to further increase the value of OPD operations over conventional arrival procedures by optimizing metering point configurations, which include identification of the optimal number and locations of metering points to use. I provide numerical results based on actual traffic information at major U.S. airports, which indicate that the total potential savings in the top ten major airports could be up to $22 million per year if the proposed policies are implemented. I also find that the optimal metering configurations are mostly robust under different operating conditions. In addition, my results suggest that early spacing adjustments near the top of descent (TOD) are of more value for larger volumes of air traffic. In the third and fourth problems, I study optimal departure operations at airports under the context of departure metering, which is an airport surface management procedure that limits the number of aircraft on the runway by holding aircraft at a predesigned metering area. More specifically, in the third problem, I develop a stochastic dynamic programming framework for tactical management of pushback operations at gates and for determining the optimal number of aircraft to be directed to the runway from the metering areas. I introduce four easy-to-implement practical departure metering policies and implement a comparative analysis between these practical policies and the optimal numerical solutions. I also implement sensitivity analysis of the departure metering policies over state variable values. In the fourth problem, I study the optimal metering area capacity at the strategic level. Building on the dynamic programming framework mentioned in the third problem, I identify the optimal metering area capacity using marginal analysis to minimize expected overall costs. Numerical simulations are implemented and potential savings are identified for sample U.S. airports based on varying capacity levels. The optimal metering area capacity is then determined based on the numerical implementations to further improve overall efficiency and sustainability of departure operations. I also analyze the benefits to airlines in terms of annual savings due to such policies, and find that the annual savings could be $31 million if the optimal departure metering policies are implemented at the top ten major airports in the U.S. Overall, as one of the few studies on stochasticity in arrival and departure operations, I derive both tactical and strategic policies to improve efficiency and sustainability for airlines and the society, which can enhance service quality and strengthen market position for the airlines involved.

Download or read book Up In the Air written by Greg J. Bamber and published by Cornell University Press. This book was released on 2013-05-15 with total page 237 pages. Available in PDF, EPUB and Kindle. Book excerpt: When 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 Impact of continous improvement on costumers satisfaction written by Barrack Kennedy and published by GRIN Verlag. This book was released on 2014-03-07 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2012 in the subject Business economics - Operations Research, grade: A, University of Massachusetts Boston, language: English, abstract: Continuous improvement refers to the process in which an organization makes effort to improve its services, processes and products. For the process of continuous improvement to become successful, it is necessary for an organization to have good feedback mechanisms where customers’ preferences are evaluated according to the goals that a company has. Organizations use Kaizen principle to ensure success in their operations. These principles introduce continuous improvement in the culture of a company, quality of products and services, technology, safety, productivity and leadership. Using Kaizen system, employees from every level of management are given a chance of suggesting the techniques that an organization can adopt in order to improve its entire operations. Continuous improvements benefit an organization in several ways. One of the benefits of this strategy is that it helps in reducing all the wastes that may be in organization’s processes. It also improves the quality of organization’s products increasing the level of consumers’ satisfaction. Customers’ satisfaction focuses on the extent at which consumers are happy concerning services and products that are offered by a particular business. The level of consumer satisfaction is used to assess the efficiency of employees in an organization. All the employees should be trained so that they attend to all the needs of consumers. Being polite to customers drives the sales of a company. Due to this, companies are able to achieve the profits targeted by focusing on consumer satisfaction. Conducting customers’ surveys is one of the methods that companies use to determine whether consumers are satisfied with the services offered to them. From the surveys, a company is able to assess its chances of having return customers. Such surveys also enable firms to know whether they have met or exceeded the expectation of consumers. Firms use the calculated customers’ satisfaction levels to assess the purchase intentions of consumers. It enables firms to project the market share that they will have. All marketing efforts should be directed towards increasing the level of satisfaction of consumers. It will enable organizations to increase their brand loyalty.

Download or read book Cleared for Take Off written by Thomas C. Lawton and published by Taylor & Francis. This book was released on 2017-03-02 with total page 235 pages. Available in PDF, EPUB and Kindle. Book excerpt: Competition in air transport has been transformed by industry liberalization initiatives, resulting in the emergence of a wide array of new airline start-ups. Restrictions on low fares have been removed, uniform control requirements have been established, and legislation has facilitated the proliferation of low-fare carriers and competition. The new breed of independent low-fare airlines (LFAs) use market freedoms to shake up the industry's competitive dynamics and offer the customer the alternative of low prices and basic service. A successful low fare business model requires a ruthless and relentless focus on cost cutting and increased operational productivity, combined with an ability to generate and maintain a cash surplus and a cautious but steady fleet and route network expansion. The mastery of these techniques has made Southwest and Ryanair industry leaders, but others such as EasyJet also have a proven record of profitability and market growth, despite not always being the lowest cost or price providers. In this comprehensive and topical study the author systematically provides: · a step-by-step approach to understanding the conditions and choices shaping airline competitiveness, and an assessment of the nature of the low fare market · a comprehensive study of the low fare airline sector's evolution and growth and arguments as to why the European low fare industry is here to stay despite the inevitability of a shake out (reminiscent of the early 1980s in the USA). · unique insights into the success of low fare market leaders in Europe, North America and Australasia and an examination of the experience of US new entrants in the post-deregulations era, to discern strategic lessons for their counterparts; · critical perspectives on strategic management principles and practices in modern airline companies, discussing strategies for survival, and comparing competitive strategies for the main low fare airlines and their limitations; · key reasons for the robustness of the low fare business model during industry crises The book also determines the conditions and strategies that shape sustainable advantage for LFAs in highly competitive deregulated markets where established airlines seek to force out new entrants and considerable political interference remains. Moreover, the book considers why, during the airline industry crisis of late 2001, the market capitalizations of low fare leaders held steady in the wake of the US terrorist attacks, while the major carriers on both sides of the Atlantic were decimated. Cleared for Take-Off is essential reading for airline executives, aerospace manufacturers, regulatory and government transportation agencies, researchers or students of aviation management, transport studies, the travel industry and/or corporate strategy.

Download or read book Reference Guide on Understanding Common Use at Airports written by Rick Belliotti and published by Transportation Research Board. This book was released on 2010 with total page 243 pages. Available in PDF, EPUB and Kindle. Book excerpt: The aviation industry has seen dramatic changes in the past two decades with significant growth during the 1990s; a significant industry disruptive event on September 11, 2001; and an economic decline resulting in a sharp rise in fuel prices that has substantially changed the economics of airline operations and a decline in growth. During this period, airlines have adapted to the changes in various ways, many of which have resulted in adaptability issues for airport operators, thus raising the question of "is there a better way" to be more flexible and responsive to airline service changes in good and bad times. From an airline perspective, cost reduction since September 11 has been a prominent focus. From an airport operator perspective, adapting to and accommodating changing flight services by incumbent carriers as well as new entrant services has been a key focus. In recent years, offering more cost-effective solutions to retain or encourage new services in the face of service reductions has become a key focus. Airport operator interests in common use have been heightened by the potential for achieving a reasonable balance between airline and airport operator interests. The implications of transitioning from a traditional model (of airline facility use and leasing focused on dedicated facilities) to common use has elicited varying and, often, conflicting perceptions of benefit and cost.

Download or read book Lean Aviation Blueprint written by Anish Kumar Pandey and published by Blue Rose Publishers. This book was released on 2021-11-16 with total page 237 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book is about the lean methodology which is developed and implemented by Toyota can equally be applicable in aircraft maintenance and engineering to reduce waste and improve productivity for cost-effectiveness. Proactive approach, ownership and situational awareness played a vital role in cost reduction. “A stitch in time saves nine”. This book consists of areas and methods by which cost reduction can be achieved in order to make the industry profitable. This book will create a sense of cost-saving and ownership which helps in curtailing the operating costs. We frequently hear a lot about Airlines going into financial distress, thanks to the challenging business model. Also, primarily the reason behind every Airliner taking a keen interest in LEAN Business Model. Now, this has a massive and complex application on Airlines Management considering the Safety aspect. In this book, based on his Aircraft Maintenance experience Anish has made an honest attempt to outline proven measures which will eliminate the wastage without compromising the safety aspect. It is a mine of information, demonstrating simplicity and effectiveness in a one-stop. So, Airlines do not necessarily have to waste any further time in amassing the data. apart from lean methodology, this book will give a brief idea of Aviation leaders thinking, strategies to adopt while selecting the external repair agency, Contract strategy that airlines should follow. and many case studies that changes the fortune of aviation.

Download or read book Airline Operating Cost Reduction Through Enhanced Engine Health Analytics written by Henry H. T. Luu and published by . This book was released on 2018 with total page 111 pages. Available in PDF, EPUB and Kindle. Book excerpt: Engine Health Management (EHM) is a comprehensive maintenance service offered by engine manufacturer Pratt & Whitney (PW) to its airline customers. In its current form, engine performance is monitored through recorded physical metrics, such as gas temperature, pressure, and altitude, taken as single snapshots at various phases of flight. The advent of the Enhanced Flight Data Acquisition, Storage and Transmission (eFASTTM) system, which allows for near-continuous recording of engine metrics, provides Full-Flight Data Analytics (FFDA) that may proactively alert and recommend maintenance activity to airlines. Adopting eFASTTM may help avoid Adverse Operational Events (AOE) caused by unexpected engine failures and the associated cost burdens. With respect to operating cost, airlines standardly report Cost Per Available Seat Mile (CASM) and Cost Per Block Hour (CBH). EHM services that prevent operational disruptions can help airlines reduce these unit-cost metrics, whose scrutiny by industry analysts affect investment guidance, stock performance, and overall business outlook. In this study, the value of FFDA services to airlines is investigated on the International Aero Engines V2500, a mature engine with customers' operational histories well-documented. Using a Poisson distribution to model the occurrence of six operational disruption types-Inflight Shutdown, Aircraft-On-Ground, Aborted Takeoff, Air Turn-Back, Ground Turn-Back, and Delay/Cancellation-the cost savings potential is quantified as a function of events avoided by a hypothetical FFDA service. Airline Form 41 financial data from the Bureau of Transportation Statistics is then used to estimate the magnitude of savings on CASM and CBH retroactively for 2012-16. Results show that unit cost reductions of 0.5% to 1.5% are possible through engine event avoidance, representing savings up to $104M annually, but outcomes are highly dependent on assumptions about cost of operational disruptions for each individual carrier. Overall, a baseline model and procedure is developed for valuating FFDA and associated EHM services. Further collaboration between airlines and Pratt & Whitney on data availability and accuracy will help refine this model, which is the first to bridge publicly available airline costs with engine history data, helping stakeholders transition to an eFASTTM ecosystem that promises greater operational efficiency and safety.

Download or read book Challenging in Delivering Quality Services Balancing Customer Expectations and Perceptions in Airline Industry written by Calvin Monroe and published by GRIN Verlag. This book was released on 2014-02-28 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2012 in the subject Business economics - Operations Research, grade: A, King`s College London, language: English, abstract: Norwegian airline operator has been offering airline services for quite a long time, frequently among the Scandinavian countries. However, the condition for service quality has been deteriorating for the last couple of decade. Despite the many researches done to dig out the factors that could be adjusted to favour service quality, not much has been seen to change. This study was aimed at conducting an exploratory survey in the grounds of the Norwegian company to find out the recommendations for the company’s quality service. We issued self-governed questionnaires to the customers at the waiting room, who were rather waiting for flight take off. A focus group discussion was also conducted by the group to engage the passengers in a dialogue that involved customer service quality expectations and perceptions. During the survey period which took six days, we interacted with the customers and show them the need for their genuine response towards the questions asked. A well elaborated questionnaire was distributed to the customers who answered them as they awaited the operator services. The customers answered the questions at their own pace, giving their opinions independently. The sampled population was made-up of 120 customers taking on flights among the Scandinavian countries at Oslo Airport. The answers were analysed and deductions made from the analysis. The services expected offered by the company were rated along with the customers’ expectations and that was what could only measure customer satisfaction for services offered by Norwegian airline service. SERVQUAL system was used to calculate the relationship between customer expectations and perceptions. Some mathematical implications of mean and standard deviations also added some weight on the relationship between the company’s present status and customer perception.

Download or read book The Airline Industry written by and published by Emerald Group Publishing. This book was released on 2006 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Airline industry has been under increasing pressure recently, from the increased competition of low-cost airlines and the terrorist events of 2001 to name but a few. Various US airlines, including Delta and Northwest, have been declared bankrupt, oil prices have soared, and seat prices are still being forced down, the supply far outweighing the demand. This e-book looks at recent case studies of airlines in crisis (Continental Airlines), and also airlines which have excelled at expansion during this turbulent time such as Easyjet and Ryanair, and offers examples of successful strategies previously used. The collection also features interviews with high-profile figures from airlines such as Go!, Qatar Airways and SWISS International Airlines.

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 Attaining and Sustaining the Competitive Advantage Through Incremental Cost Reduction written by Christopher I. Rich and published by . This book was released on 2003 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The purpose of this research is to examine a major commercial airline MRO [maintenance, repair, and overhaul] facility to determine the areas needing performance improvement as measured against the criteria of cost, delivery, quality, and reliability. The significance of this research is to suggest a strategic plan, to enable this MRO to achieve and sustain the competitive advantage over other commercial airlines and MRO vendors through an incremental cost-reduction."--Leaves 9-10.

Download or read book Reducing Airlines Carbon Footprint written by Dr. Thomas F. Johnson and published by Morgan James Publishing. This book was released on 2020-10-06 with total page 87 pages. Available in PDF, EPUB and Kindle. Book excerpt: Reducing Airline’s Carbon Footprint is the answer to the airline executives’ problems, when it comes to looking for ways to reduce aircraft operations cost. Reducing Airline’s Carbon Footprint introduces the Electric Taxi System, ETS. When commercial aircrafts are equipped with this system, the cost of operation will be reduced due to taxi without the main engines running. Also, the aircraft engines will not be ingesting foreign object debris (FOD) causing damage to the internal moving parts, and the airport area air pollution will see a decrease. This is the grey cloud that hovers over most busy airports. Reducing Airline’s Carbon Footprint breaks through this cloud by providing ETS as the solution. Throughout its pages, Dr. Thomas F Johnson addresses these benefits of ETS: Improvement of Airport Area Air Quality Reduce aircraft carbon footprint Potential Costs of ETS Installation Fuel Consumption Evaluation before and after ETS installation Ground Taxi Time Evaluation Improved Airport Terminal Accessibility Landing Gear Compatibility for the ETS Installation

Download or read book Airline Performance and Costs written by Hannu Seristö and published by . This book was released on 1995 with total page 254 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Methods Raise Global Airline Industry Service Level written by Johnny Ch Lok and published by . This book was released on 2019-11-08 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: ON airport visit costs aspect, airlines also need to consider airport visit costs in their route development strategy. Visit costs may also influence passenger choice behavior whenairlines pass on higher/lower charges to the passegner through air fares. Although, airport visit costs generally represent a limited share of an airline's total operational costs, this share can be more significant for short haul flights as well as fair airlines. All of any one these airport charges and passenger fees variable may influence passengers airlines choice. They may include: Fees variable, landing charge, parking charge for their vehicles or aircraft, passenger buggage charge, security charge, borading bridge charge, noise charge, emission charge, airport developmentsevice increasing charge, check -in charge, terminal charge, cargo charge. So, if any one of these charges influence the airline ticket price rises, it will influence passengers' air ticket purchasechoice to the airline in possible.On airport service levels aspect, for keeping and attracting passengers, airlines and airports need to compete with services that improve the passengers experience. Such servicefactors concern for immigration and luggage, but also relate to the terminals, waiting transfer another air plane time, shopping facilities, toilets, atmosphere and space cleaniness, friendliness of staff and availability of delicated lounges. Together they determine the image of an airport and its perceived value by passengers and airlines.On airline routes development aspect, it can also influence passengers choices to the airline, e.g. Australia airline had developed long route to England destination. Any Australia passegners can fly to England route directly. They do not need to transfer another air plane to go to England. Although, flying time is above 12 hours long time, but it can bring available to passengers. They do not need to spend time to wait another air plane to transfer to go England in Australia any airports. THus, airline route development strategy airline planners require detailed, accurate information to make new route decisions, but airlines usually do not have the resources to fully evaluate every new route market. So, they need a sound well articulated business case, can convince airlines to introduce new air services, as well as airport / destinations can influence the airline planning process.For example, Intervistas indicates that new routes are a huge investment and risk to an airline in airline economic view point, if the airline had not gathered any data to evaluate whether the new route is worth to develop and predict passengers' new route choice behavior. It assumed 75% lead factor will influence any new route development in success. It indicates these different aircraft type and seats per flight, annual passegner requirements data for these aircrafts: Boeing 747 aircraft needs to satisfy 400 at least seats per flight and annual passenger requirement need 219, 000, aircraft airbus A340 aircraft needs 280 at least seats per flight and annual passenger requirements need 153,300, Boesing 767 to 300 aircraft needs 220 at least seats per flight and annual passenger requirements need 120, 450 . Boeing 737 to 700 aircraft needs 76,650 and ergional Jet aircraft needs 100 at least seats per flight and annual passenger requirements need 54,750.

Download or read book A Method for Determining the Economic Value of Air Traffic Control Improvements and Application to All weather Landing Systems written by and published by . This book was released on 1959 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Airline Industry Service Improvement Methods written by Johnny Ch Lok and published by . This book was released on 2020-03-19 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: ⦁Time pressure consumption or production situation explanation to similar airline service time pressure environmentWill one consumer feel difficult to make consumption choice or one employee feel pressure to work when the worker works in the company's high pressure productive environment or the consumer makes difficult purchase choice in high pressure consumption environment? Will time pressure bring motivation to the consumer purchase decision or the employee working efficiency? It depends on some factors to either cause time pressure working environment or raise the employee individual efficiency, or time pressure consumption environment can either encourage the consumer purchase decision or discourage the consumer purchase decision . I shall explain as below: What does efficiency mean? Due to economic problem is a scarcity of resource, efficiency is concerns with the optimal production, consumption environment. For time pressure consumption situation example, e.g. supermarket shopping counter check out purchase queue waiting time pressure, cinema purchase ticket queue waiting time pressure, restaurant queue waiting booking table time pressure etc. different consumption pressure time waiting situation. For time pressure woring situation example, e.g. supervisor's demand tasks finishing on time before the employee leaves the office on the day, then the supervisor's demand will cause the employee feels time pressure to do all tasks on time, otherwise, he needs to work overtime, even no extra allowance compensation to his extra time loss, or the employee needs to do another employee's tasks, due to he is absent on the day. However, this situation can be called economically efficient production or consumption if: no one can be worse off, no additional output can be obtained, without increasing the amount of inputs, production proceeds at the lowest possible per unit cost. For these economic efficient consumption situation example, the consumer has much time to wait, the shop has less different styles of products to let them to spend time to choose in the shop's shelf.

Download or read book Do Incumbents Improve Service Quality in Response to Entry Evidence from Airlines On Time Performance written by Jeffrey Prince and published by . This book was released on 2014 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine if and how incumbent firms respond to entry and entry threats using non-price modes of competition. Our analysis focuses on airline service quality. We find that incumbent on-time performance (OTP) actually worsens in response to entry, and even entry threats, by Southwest Airlines. Since Southwest is both a top-performing airline in OTP and a low-cost carrier (LCC), we conjecture that this response by incumbents may be due to a cost-cutting strategy that allows for intense post-entry price competition along with pre-entry deterrence, or it may be due to a post-entry differentiation strategy along with pre-entry accommodation. Further analysis of entry and entry threats by other airlines is inconclusive, providing evidence that is partially consistent with both hypotheses. Nonetheless, the phenomenon of worsening OTP can only be observed when the (potential) entrant is a LCC (Southwest, Jet Blue, and AirTran).