Competitive advantage of low-cost carriers: some implications for airports

Gillen, David; Lall, Ashish

doi:10.1016/j.jairtraman.2003.10.009

Cited by 177 publications

(129 citation statements)

References 3 publications

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“…17 (b)). This is because the legacy carriers, which operate hub-and-spoke networks (Franke, 2004;Dempsey, 2002), reduced their services, whereas the LCCs, which offer fewer indirect connections (Franke, 2004;Gillen, Lall, 2004), grew (Section 4.1.1). We also find that the absolute growth in codeshare-induced GCI offset 88.6 % of the decline in onestop intra-airline-transfer GCI, and that the codeshare-induced GCI share increased from 22.2 % in 2000 to 45.8 % in 2012 (Tab.…”

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confidence: 99%

How air transport connects the world – A new metric of air connectivity and its evolution between 1990 and 2012

Allroggen

Wittman

Malina

2015

Transportation Research Part E: Logistics and Transportation Re

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SUMMARY ObjectiveScheduled air transport services connect airports throughout the world and thereby enable interaction on a global scale. By doing so, they spur globalization (Hummels, 2007) as well as social and economic development (Lakshmanan, 2011). In order to facilitate integration of regions into global value chains, planners, scholars and policymakers therefore need to understand as to how scheduled air transport services link a region to other markets. For this purpose, connectivity metrics have been developed, which measure the degree of connections between airports (Burghouwt, Redondi, 2013). In particular, the 'connection quality-weighting' approach (Veldhuis, 1997;Burghouwt, de Wit, 2005) has been used to compute the aggregate quality of all available connections at an airport with regard to their properties in quickly bridging distances. However, such a metric has neither been calibrated on the basis of observed passenger behavior nor been computed for the world's airports across a multi-decade time series. This paper sets out to develop the first such metric and to discuss global airline network development between 1990 and 2012 from a connectivity perspective. How Air Transport Connects the World 4 MethodologyThe Global Connectivity Index (GCI) for each airport is computed by summing the connectionquality of each available flight connection weighted by the interaction potential, to which the connection provides access. This requires three levels of analysis. First, on the link-identification level, we identify from OAG flight schedules all scheduled nonstop and onestop connections, which are available to passengers at each airport. Second, on the link-quality level, we compute each connection's frequency and relative connectivity value as compared to (hypothetical) nonstop flights. The relative connectivity value is derived from flight duration and layover time and calibrated through observed routing data for US passengers. Third, on the destination-quality level, we model the interaction potential, to which each worldwide airport provides access. For this purpose, we use gridded wealth-adjusted population data and a distance-decay function. Transaction-specific idiosyncrasies such as tastes or fares, which vary among potential passengers and impact on each passenger's itinerary choice, are not considered since they cannot be aggregated to the route level, yet. Results By computing yearly GCITo date, no analysis exists which evaluates 'quality-weighted' connectivity and/or centrality at the world's airports with the help of an empirically calibrated model. Such a model is developed in this paper. We compute these metrics to analyze worldwide connectivity and centrality trends The remainder of this paper proceeds as follows: In Section 2, the building blocks of 'connection quality-weighted' connectivity and centrality are outlined. Section 3 develops the connectivity and the centrality metrics. Global and world-region trends in connectivity and centrality between 1990 and 2012 are analyzed in Sect...

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confidence: 99%

How air transport connects the world – A new metric of air connectivity and its evolution between 1990 and 2012

Allroggen

Wittman

Malina

2015

Transportation Research Part E: Logistics and Transportation Re

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“…) ističe kako je cilj ukloniti sve troškove koji nisu nužni za odvijanje prometa. Najčešće navođena obilježja niskotarifnog modela zračnog prijevoza su (Williams, 2001.;Barrett, 2004.;Francis i dr., 2004.;Gillen, Lall, 2004.;Klophaus, 2005.;Warnock-Smith, Potter, 2005.;Dobruszkes, 2006.;Jakovčić, 2006.;Vojvodić, 2006. ):…”

Section: Low-cost Model Of Air Transportationunclassified

“…Danesi (2007) insists that the aim is to reduce all the expenses that are not necessary for providing the transportation. The features of lowcost model of air transportation that are the most commonly cited are (Williams, 2001;Barrett, 2004;Francis et al, 2004;Gillen, Lall, 2004;Dobruszkes, 2006;Jakovčić, 2006;Klophaus, 2005;Warnock-Smith, Potter, 2005;Vojvodić, 2006): -simplification of services during the flight, -suspension of privileges (frequent-flyer program), -simplification of distribution and ticket sale, -unification of passenger classes, -direct lines (point-to-point flights), -use of secondary airports, -reduction of the cost of work at the airports, -unification of airplane fleet, -reduction of the time necessary for the preparation of the airplane, -increase of aircraft utilization (faster turnarounds of the airplane and longer air time).…”

Section: Low-cost Model Of Air Transportationmentioning

confidence: 99%

Hrvatske zračne luke u mreži europskih niskotarifnih kompanija

2012

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The aim of this paper is to present the development of the low-cost air transportation in Croatia and the position of Croatian airports in the low-cost carrier network of Europe. The data on the frequency of the lines between specific airports and the European airports were analyzed based on the data gathered from the flight schedule. Trend of development was analysed based on the data from 2006, 2008 and 2010. In the last four years there has been a significant rise in the number of connections, still seasonal changes in the frequencies of flights can be noticed.

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“…As the hypothesis centers on low-cost airlines, it is necessary to be clear about the definition of this concept, at least in this context. As Gillen and Lall (2004) highlighted, low-cost airlines come in a variety of forms. For example, Southwest, Ryanair and easyJet each have distinct approaches to their business.…”

Section: Evidencementioning

confidence: 99%

Low-Cost Airports for Low-Cost Airlines: Flexible Design to Manage the Risks

Neufville

2008

Transportation Planning and Technology

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Airport planning is shifting from the traditional pattern Á driven by long-term point forecasts, high standards, and established clients Á to that of recognizing great forecast uncertainty, many standards and changeable clients. This is a consequence of economic deregulation of aviation and the rise of lowcost airlines.Low-cost airlines are becoming significant factors in airport planning. Their requirements differ from those of 'legacy' carriers. They drive the development of secondary airports and cheaper airport terminals. They catalyze 'low-cost airports' around the 'legacy main airports' built for the 'legacy airlines'. This paper proposes a flexible design strategy to deal with the uncertainty of this dynamic. This differs significantly from traditional airport master planning. It builds flexibility into the design, to enable airports to adjust to changes in the type, needs and location of traffic. The case of Portugal illustrates the current risks, and indicates how flexible design could manage uncertainties and maximize expected value.

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Competitive advantage of low-cost carriers: some implications for airports

Cited by 177 publications

References 3 publications

How air transport connects the world – A new metric of air connectivity and its evolution between 1990 and 2012

How air transport connects the world – A new metric of air connectivity and its evolution between 1990 and 2012

Hrvatske zračne luke u mreži europskih niskotarifnih kompanija

Low-Cost Airports for Low-Cost Airlines: Flexible Design to Manage the Risks

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