•Insights into the impact of COVID-19 outbreak on automobile and airline supply chain is provided.•Integrated time-to-recovery and financial impact analysis, empirical survey and semi-structured ...interviews were used.•Localized supply sources and industry 4.0 technologies identified as significant strategies by automobile industry.•Business continuity by defining operations at the airport and flights perceived significant strategy by airline industry.•Real-time information sharing and cooperation among supply chain stakeholders is critical.
There has been an increased interest among scholars to investigate supply chain resilience (SCRes) in manufacturing and service operations during emerging situations. Grounded in the SCRes theory, this study provides insights into the impact of the COVID-19 outbreak on the automobile and airline supply chain. Both the short and long-term response strategies adopted by the two supply chains are assessed, using a combination of qualitative and quantitative techniques in three distinct phases. In phase one, we use a sequential mixed-method for resilience evaluation, integrating Time-to-Recovery (TTR) and Financial Impact (FI) analysis. In phase two, we conduct an empirical survey involving 145 firms to evaluate the short-term SCRes response strategies. In the third phase, we conduct semi-structured interviews with supply chain executives both from the automobile and airline industries to understand the long-term SCRes response strategies. Our findings indicate that: (i) the automobile industry perceived that the best strategies to mitigate risks related to COVID-19, were to develop localized supply sources and use advanced industry 4.0 (I4.0) technologies. (ii) The airline industry on the other hand, perceived that the immediate need was to get ready for business continuity challenges posed by COVID-19, by defining their operations both at the airports and within the flights. (iii) Importantly, both the sectors perceived Big Data Analytics (BDA) to play a significant role by providing real-time information on various supply chain activities to overcome the challenges posed by COVID-19. (iv) Cooperation among supply chain stakeholders is perceived, as needed to overcome the challenges of the pandemic, and to accelerate the use of digital technologies.
Flexible capacity planning is crucial for the airline industry due to the high fixed cost of assets, notably aircraft ownership, and the fluctuating demand, particularly in response to external ...shocks like pandemics and political crises. Following the negative consequences of such events on the financial positions of almost all airline companies, there is growing interest in developing more responsive capacity planning structures for cost efficiency in the airline industry. In this study, we present a sequential two-phase methodology for flexible capacity planning and airline fleet assignment considering the factors related to fleeting strategies, passenger demand behavior, and contribution of flights in the network. The first phase of the methodology generates potential scenarios to estimate the number of flights to the destinations, based on the data and the reports provided by two prominent associations in the aviation industry, which incorporate various country-related and airline-related factors, including population, income, routes, airports, and connectivity. The second phase identifies the required number of aircraft for each type within the fleet inventory, taking into account the aircraft utilization rates associated with each scenario. The fleet assignment problem is also reformulated to employ the objective of maximizing total profit of the entire flight network by introducing network contribution and nation/region-specific limitations in this phase. A real case study from Turkey is conducted to illustrate efficiency of the proposed methodology. We also present a comparative study to highlight the impact of network contribution and how fleet size affects the outcomes. We have observed that the inclusion of the network contribution aspect and country constraints has led to a significant improvement in financial indicators and connectivity. The results show that the methodology can effectively tackle challenges in airline transportation problems.
•The Chinese Airline Network is modelled as multi-layer networks via the k-core decomposition.•The network is divided into three layers: Core layer, Bridge layer and Periphery layer.•Chinese Airline ...Network is less redundant than the Worldwide Airline Network.
This paper encapsulates the Chinese Airline Network (CAN) into multi-layer infrastructures via the “k-core decomposition” method. The network is divided into three layers: Core layer, containing airports of provincial capital cities, is densely connected and sustains most flight flow; Bridge layer, consisting of airports in Tier 2 and Tier 3 cities, mainly connects two other layers; and Periphery layer, comprising airports of remote areas, sustains little flight flow. Moreover, it is unveiled that CAN stays the most robust when low-degree nodes or high flight flow links are removed, which is similar to the Worldwide Airline Network (WAN), albeit less redundant.
This paper uses data envelopment analysis (DEA) to evaluate the operational performance of a sample of AEA—Association of European Airlines from 2000 to 2005, combining operational and financial ...variables. In this paper an innovative DEA two-stage procedure proposed by Simar and Wilson 2007. Estimation and inference in two stage, semi-parametric models of productive efficiency. Journal of Econometrics 136, 31–64 is used. In the first stage a DEA model is used to rank the airlines by their overall efficiency. In the second stage a bootstrapped truncated regression is used to evaluate the drivers of efficiency. The regressions test the roles played, respectively, by population and network alliance in the efficiency of the airlines. The implications of this research for managerial purposes are then drawn.
This study examines the short-term impact of the 2019 novel coronavirus (COVID-19) outbreak on 52 listed airline companies around the world by using event study methodology. The results demonstrate ...that airline stock returns decline more significantly than the market returns after three major COVID-19 announcements were made. Overall, investors react differently during the three selected events. The strongest overreaction is noted in the post-event period of the World Health Organization's and President Trump's official announcements. Moreover, the findings confirm that traders in Western countries are more responsive to recent information than the rest of the world. The findings call for immediate policy designs in order to alleviate the impact of the pandemic in the airline industry around the globe.
-We examine the impacts of COVID-19 on the global airline stock performance.-Investors react differently during the three selected events.-The strongest overreaction is noted in the post-event period of the World Health Organization's and President Trump's official announcements.-The findings confirm that traders in Western countries are more responsive to recent information than the rest of the world.
This paper reports the findings of a survey on European airlines often categorized as low-cost carriers to see to which extent they have changed their business model towards a hybrid strategy, ...adopting features of full service network airlines. Data is provided on relative frequencies of attributes of the low-cost business model retained and modified respectively. The survey concludes that short-haul airline business models in Europe converge. A large percentage of low-cost carriers has evolved into hybrid carriers which blend low-cost traits with those of full service network carriers.
► The paper presents a methodology for comparing airline business models. ► This methodology is applied to what are considered Europe’s largest low-cost airlines. ► A number of different business models are found to exist among these carriers. ► A large percentage of airlines have evolved into hybrid carriers.
•This paper investigates the effects of the airlines-within-airlines strategy.•This strategy allows a low-cost subsidiary airline to be used as a fighting brand.•This strategy increases group ...airlines’ prices at the expenses of rival airlines.
This paper investigates the effects of the airlines-within-airlines strategy adopted by Qantas airline group, which simultaneously runs a full-service airline (Qantas Airways) and a low-cost carrier (Jetstar Airways). Our empirical investigation of airline pricing and route entry patterns in the Australian domestic market suggests that Jetstar has been used as a fighting brand against rival low cost carriers. Such a strategy increases group airlines’ prices at the expenses of rival airlines. There is preliminary evidence that pricing benefits to Qantas Group come from increased market power as well as service quality improvements.
Fierce competition and shrinking profits have impelled the airlines to stress upon improving the quality of the services being provided to the customers. Customers have become very specific about ...their service needs and often tend to shift to others that provide better services. Indian aviation industry is growing exponentially with customer base growing to 223.6 million in 2016 from 73.4 million in 2006. Service quality is an important research topic but the studies conducted so far have used basic SERVQUAL model and also there is limited studies in Indian airline context. So there is need to identify and then prioritize the service quality attributes for airline industry. Best worst method is used to rank and prioritize attributes of service quality that were identified through extensive literature review and VIKOR (VlseKriterijuska Optimizacija I Komoromisno Resenje) methodology is used to rank the best airline with respect to these attributes. Tangibility, Reliability, security and safety and Ticket pricing are found to be most important attributes of service quality and further analysis using VIKOR methodology suggests that airline 2 is performing well on these attributes among the five airlines taken for study. The service quality attributes identified through extensive literature review and results obtained through MCDM analysis are fruitful for airline managers to address service quality issues. Further, scope of future research work and implications for airline industry managers have been discussed at the end to conclude the paper.
•This paper presents a model for airline selection.•This paper used hybrid best worst and VIKOR methodology.•Seven main attributes and twenty nine sub attributes of airline service quality have been identified.•Tangibility and reliability, safety and security are important attributes of airline service quality.
Summary
The recent pandemic caused by COVID‐19 has globally affected air transport mobility as well as the airline industry in general. Numerous restrictions have been implemented in airline ...transport, which is potentially leading toward severe long‐term impacts on the global airline industry. In this paper, air transport mobility was analyzed regarding Europe (EU) based on the available data from the relevant sources associated with the airline industry. Data were analyzed in specific periods from January to April of 2020, which corresponded with the initialization of the pandemic in the EU and later in its full development. Specifically, two airports were selected in Croatia as case studies to analyze the impact of COVID‐19 more thoroughly on mobility together with the estimation of carbon footprint during the pandemic and the year before the pandemic state. The results revealed that COVID‐19 gradually affected air transport mobility in the EU where a peak was reached in April with a reduction in the number of flights in the EU region reaching more than 89%. Cargo traffic was not significantly affected by the pandemic, and was even increased in some cases due to the supply of medical equipment in the fight against the disease. The analyzed case study revealed the reduction in air transport mobility for selected airports to be more than 96%, which directly affected the reduction of CO2 emissions to factor 1.81 for the commercial airport of Zagreb and 3.49 for the seasonal airport of Split. A normalization of air transport mobility is expected to be reached through a 1‐year period with a continued reduction in the number of flights ranging from 15% to 25%, based on the projections and expectations from relevant EU associations.
Impact of COVID‐19 on airline mobility investigated. Two EU based airports analyzed from mobility, energy and environmental aspect.
•We propose a novel analytical-econometric approach to model flight delay propagation and mitigation.•The analytical model quantifies propagated and newly formed delays to each flight.•Three ...perspectives on how delays are absorbed by buffer are provided.•A joint discrete-continuous econometric model captures simultaneously initiation and progression of propagated delay.•The approach can be used by aviation system planners and airlines.
Flight delay presents a widespread phenomenon in the air transportation system, costing billions of dollars every year. Some delay originating from an upstream flight spreads to downstream flights. This phenomenon is defined as delay propagation. To understand the delay propagation patterns and associated mitigation measures, this study proposes a novel analytical-econometric approach. Considering that airlines deliberately insert buffer into flight schedules and ground turnaround operations, an analytical model is developed to quantify propagated and newly formed delays that occur to each sequence of flights that an aircraft flies in a day, from three perspectives on the ways that delays are absorbed by the buffer. With delays computed from the analytical model, we further develop a joint discrete-continuous econometric model and use the Heckman's two-step procedure to reveal the effects of various influencing factors on the initiation and progression of propagated delays. Results from the econometric analysis provide estimates on how much propagated delay will be generated out of each minute of newly formed delay, for the US domestic aviation system as well as for individual major airports and airlines. The impacts of various factors on the initiation and progression of propagated delay are quantified. These results may help aviation system planners gain additional insights into flight delay propagation patterns and consequently prioritize resource allocation while improving system overall performance. Airlines can also be better informed to assign buffer to their flight schedules to mitigate delay propagation.
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