Evolution of global airline strategic alliance and consolidation in the twenty-first century

Fan, Terence Ping Ching; Vigeant-Langlois, Laurence; Geissler, Christine; Bosler, Björn; Wilmking, Jan

doi:10.1016/s0969-6997(01)00027-8

Cited by 83 publications

(53 citation statements)

References 9 publications

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“…The increase in network effects coincided with expanding cooperation among carriers. In particular, carriers started offering their customers "seamless" global network coverage by selling tickets of onward flights, which are operated by partnering airlines, but carry the ticketing carrier's code ("codeshares") (Chan, 2000;Gudmundsson, Rhoades, 2001;Fan et al, 2001). Such collaborations first emerged during the late 1980s and their number grew significantly during the 1990s (Oum, Park, 1997;Chan, 2000;Gudmundsson, Rhoades, 2001) …”

Section: The Connectivity Perspectivementioning

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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Section: The Connectivity Perspectivementioning

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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“…Fan et al (2001) dealt with the raise of the airline alliances from the later 20 th century into strong global powers of the early 21 st century. The authors taking into account the economies of the traffic density, ponders that, a stronger alliance could well mean a hike in the fares of the flights, due to mitigated competition.…”

Section: Airlines Marketing and Promotionmentioning

confidence: 99%

Airlines Operation to Puducherry: Poor Patronage or Inefficiency of the Carrier?

Mishra¹

2014

Atna

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Puducherry is a known tourist destination and if merged with the neighboring Tamil Nadu becomes largest tourist receiving region in the country. An airlines carrier SpiceJet operated till recently in February last year, when it withdrew operations from Puducherry. Study revealed however that this flying sector has been making steady growth and making profits though not comparable with prime sectors of the airlines company. Despite the conducive environment, the airlines" choice of scrapping the route deserves research. The present study thus is a sincere attempt to study the viability of the Puducherry sector for airlines operation. For the purpose it examined the perception of travellers about the select quality aspects of air transportation prevailed in Puducherry viz. choice of air travel over other modes, time factor and cost or value for money. The study was conducted across occupational groups for future segmentation of the market. The data for the research was collected through primary survey at Bengaluru amongst passengers who travelled to Puducherry by air. Secondary data related to the study were collected from Puducherry airport and other internet sources.The findings of survey revealed as respondents expressed their satisfaction about timing aspects of air travel; however the time to reach the airports in both Bengaluru and Puducherry is a concern that needs to be looked into by the local governments of respective states. Test of * Assistant Professor, Dept. of Tourism Studies, Pondicherry University, Pondicheery, Tamilnadu, India; jitenban@gmail.com Atna-Journal Tourism StudiesISSN 0975-3281 46 hypotheses revealed respondents are not divided across occupational backgrounds on grounds of preference of air travel, time factor, cost and value for money. Thus by and large respondents were satisfied with various aspects of airlines operation. On the contrary secondary data related the airlines operations vis-à-vis other carriers in the country explained deep financial losses and increased cost of operations over the period could be the reasons for streamlining of operations and withdrawal from less popular routes. The company has been losing market share over last year. Thus reason for suspension of the sector was found to be not the lack of demand of the sector, but chiefly internal reasons of the airlines company. However, in future joint marketing strategies by various stakeholders especially the airlines and Puducherry Tourism would help reviving airlines operation in the region.

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“…He showed that the beneficial effects of code-sharing outweigh its harmful effects for most parameter values in his theoretical model. Fan et al [21] examined the forces influencing the consolidation and structure of the airline alliance. They highlighted the following five forces: (i) increased globalization in trade and air transportation; (ii) increased intra-regional interaction, (iii) economic incentives for airline consolidation; (iv) pace of liberalization of international air transport industry, and (v) anti-trust concerns.…”

Section: The Strategic Alliancementioning

confidence: 99%

A hybrid ANP model in fuzzy environments for strategic alliance partner selection in the airline industry

Liou

Tzeng

Tsai

et al. 2011

Applied Soft Computing

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Evolution of global airline strategic alliance and consolidation in the twenty-first century

Cited by 83 publications

References 9 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

Airlines Operation to Puducherry: Poor Patronage or Inefficiency of the Carrier?

A hybrid ANP model in fuzzy environments for strategic alliance partner selection in the airline industry

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