Evaluating Business Modelling and Sustainability in the Aviation Industry: A Comprehensive Review

Nzuva, Silas

doi:10.14445/23939125/ijems-v7i10p112

Cited by 2 publications

(3 citation statements)

References 24 publications

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“…In practice, however, there is sufficient evidence of the inefficiency of airlines’ business strategy. To put this in perspective, Nzuva ( 2020 ) discusses how the majority of airline firms are suffering from low levels of profit, which hampers the industry from expanding. To this effect, business model modification is vital to meet airlines’ long-term growth.…”

Section: Summary Implications and Future Research Avenuesmentioning

confidence: 99%

Firm value in the airline industry: perspectives on the impact of sustainability and Covid-19

Abdi

Càmara‐Turull

2023

Humanit Soc Sci Commun

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To date, there has been limited research undertaken into firm value determinants in the air transport industry, one of the most essential sectors for global business. In view of this, in this study, we review and synthesise the literature that focuses on the value of firms in this sector and discuss conceptually and empirically the determinants influencing airlines’ stock values. Our main objective is to widen our understanding of the current state of research on the firm value of air transport companies. Using the systematic literature review (SLR) approach, we classify 173 papers published from 1984 to 2021. We find considerable changes in academic interest in the topic over the time period analysed, especially as a consequence of crisis-induced market crashes. In addition, we classify the main research themes relating to airlines’ market value, identify gaps, and introduce potential future research avenues in this area. Among the themes identified, the adjustment in the industry-level factors such as alliances, market structure and competition were the most common source of fluctuations in airlines’ stock value. However, we find shifting to sustainability initiatives and its consequence for stakeholders’ value as one of the most discussed topics in this context. The trend has gained attention since early 2020 due to the emergence of the Covid-19 pandemic as companies are looking for green and sustainable ways to protect the value in crisis time. Our findings assist transportation researchers and executives in addressing major value drivers of airline firms.

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Section: Summary Implications and Future Research Avenuesmentioning

confidence: 99%

Firm value in the airline industry: perspectives on the impact of sustainability and Covid-19

Abdi

Càmara‐Turull

2023

Humanit Soc Sci Commun

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“…Notably, considering the structure of the airline industry, we set the study implications from both business strategy and public policy horizons. Given that the current business strategy of airlines is ineffective as most airline companies experience low revenues which prevents the industry from expanding, business model modification is vital to meet the sustainable development goals (Nzuva, 2020). Therefore, achieving an excess return, should not hide the long‐term benefit of ESG participation and the higher cost of strengthening its shareholder commitment will be paid off by permanent benefits of sustainability.…”

Section: Implications Limitations and Future Researchmentioning

confidence: 99%

“…This led to our second policy note, which is that international agencies and organizations may propose sustainable economic development strategy opportunities to airline firms to offset the cost of these shareholder initiatives. One possible solution is to work with governments to provide adequate economic support (Nzuva, 2020). Combined with mass media communicating proactive sustainable airlines to increase their visibility and reputation.…”

Section: Implications Limitations and Future Researchmentioning

confidence: 99%

How financial performance influences investment in sustainable development initiatives in the airline industry: The moderation role of state‐ownership

Abdi

Càmara‐Turull

2022

Sustainable Development

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This study aims to broaden the research on the influence of financial performance (FP) on sustainable development activities proxied by environmental, social, and governance (ESG) disclosure in the airline industry. In addition, we examine the moderating effect of state‐ownership on the FP‐ESG relationship. Based on data collected from 36 airlines worldwide for the period 2008–2019, we found that ESG is negatively and significantly influenced by FP. This result implies that the willingness of airlines to contribute to ESG initiatives is diminished when economic conditions are favorable. State‐ownership moderates the relationship between FP and ESG such that the negative relationship is weaker in presence of state shares. Our findings help to disentangle the roles of FP in its contribution to sustainability and are valuable in better understanding the topic in airline context. Also, our results have some important implications for how industry practitioners may act more effectively in the managerial social decision process and provide insights to assist investors who are considering eco‐investing in the airline industry.

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Evaluating Business Modelling and Sustainability in the Aviation Industry: A Comprehensive Review

Cited by 2 publications

References 24 publications

Firm value in the airline industry: perspectives on the impact of sustainability and Covid-19

Firm value in the airline industry: perspectives on the impact of sustainability and Covid-19

How financial performance influences investment in sustainable development initiatives in the airline industry: The moderation role of state‐ownership

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