Service quality and economic performance in the US airline business

Kalemba, Nicole; Planas, Fernando Campa; Hernández‐Lara, Ana Beatriz; Rebull, María Victòria Sánchez

doi:10.3846/16487788.2017.1378266

Cited by 10 publications

(10 citation statements)

References 30 publications

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“…This was then submitted to the second round of expert consultation, providing a critical view on the proposed groups of airports, threshold settings between particular airport groups and proposed changes. As the thresholds to distinguish between different airport types are affected by multiple dependent variables, the Delphi Method was found as the most appropriate (Kalemba et al, 2017).…”

Section: Study Objective and Research Methodologymentioning

confidence: 99%

Airport Typology for LCC Policy Changes: A European Perspective

2020

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This paper proposes a new airport typology that might arise from the expansion of airports with dominant low cost carrier traffic. In the first part of the paper, the typologies and different airport categorizations are reviewed with examples of current taxonomies used by principal international organizations. However, none of the current airport taxonomies takes into account low cost (LCC) carriers and cannot be used to create an airport market strategy with LCC operation. The paper highlights the characteristic of LCC features, the differences between the LCC airlines, and the characteristics of secondary – low cost airports. Finally, the paper proposes a new taxonomy of airports with low cost operations based on the airport data analysis and expert panel elucidation. For identification of airports with a high share of low cost carriers, Eurocontrol 2013 data on airline types and movements were used. The novel classification of low cost airports enables management to design marketing strategies to respond to LCC dominance and its implications. The main contribution of this research is to provide a novel classification for low cost airports which is relatively new phenomenon comparing with the problems of full service carriers dominance at large airports.

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Section: Study Objective and Research Methodologymentioning

confidence: 99%

Airport Typology for LCC Policy Changes: A European Perspective

2020

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“…Moreover, airline industry plays a vital role in the creation of European economy (Kalemba, 2017). The interest in European airline market is constantly growing (Goetz & Graham, 2004;Diaconu, 2012;Vidovic et al, 2013;Kraft & Havlikova, 2016), as it is a successful example of liberalized aviation space (a single European aviation market), causing emergence of the best low-cost airlines (Ryanair, Wizzair, Euro Wings) and oldest and biggest full-service airlines (KLM, Lufthansa).…”

Section: Globalization In the European Airline Industrymentioning

confidence: 99%

“…Dobruszkes & Mondou (2013) in their turn said that establishment of strategic alliances between airlines like Star Alliance is a response of industry to the globalization process. Kalemba (2017) describes globalization through deregulation, open sky policy, changes in the tourism, new revenue management policies, strategic alliances, establishment of new business models of air carriers (LCCs), and high-speed train competition Liberalization and deregulation as globalization's manifestations were the main forces which shaped the global airline industry. Contrary to deregulation in the US, deregulation in the EU was adopted in 1980s under the term "liberalization".…”

Section: Globalization In the European Airline Industrymentioning

confidence: 99%

“…It cannot be argued that there is a unilateral direction of cause-effect relationships between them. On one hand, globalization in different areas such as legal liberalization, rapid development of tourism infrastructure, and highspeed train competition affects air transport considerably (Kalemba, 2017). Indeed, the liberalization of passenger air transport legislation have had a significant impact on the establishment of the basic conditions for its development and have caused an emergence of the business model called low-cost carrier (LCC), which implemented considerably more affordable airfares and made it possible for more people to travel.…”

Section: Introductionmentioning

confidence: 99%

“…Although many studies analyzed the effects of globalization on companies and industries in general (Thoumrungroje, 2004;Kraemer et al, 2005;Thoumrungroje & Tansuhaj, 2007;Kalemba, 2017;Mahmutović et al, 2017), there is still an evident shortfall of empirical research on airline industry. Due to the lack of studies on globalization and airlines industry in Europe there are further issues to be unveiled like impact of globalization on airlines' performance; difference in impact of globalization on low-cost and full-service carriers, positive and negative impacts of globalization, solutions for different negative impacts of globalization.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Impact of Globalization on European Airline Market

Kuz

Miškinis

2021

ECO

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Airline industry is very important for modern society as the biggest player in the globalization process by connecting regions, promoting global trade and tourism, facilitating economic and social development. However, here is a lack of research on relationship between globalization and airline industry in Europe. It remains unclear how to measure the impact of globalization on performance of airline companies and industry. The article aims at investigation of the impact of globalization on operational and financial performance of European airlines before pandemics.The authors applied a nonexperimental quantitative research design to analyze the relationship between independent globalization variables (level of globalization in Europe, globalization opportunity, globalization threat) and dependent airlines’ operational and financial performance indicators. Research is done using secondary data from annual reports of 19 European airlines members of European Common Aviation Area (ECAA). The panel data analysis was applied for 2007–2017 with multiple regression analysis using STATA. The results show that globalization exerts a significant positive effect on operational performance. On financial performance only revenue per passenger kilometers is positively influenced by globalization. Globalization affects low-cost airlines and full-service airlines performance differently.

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Financial distress and service decisions: Empirical evidence from the US domestic airlines

Wang

2023

Manage Decis Econ

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Understanding the firm's service decisions under financial distress is of central importance to service quality regulators and operation management scholars. This study aims to add new evidence to the relationship between financial distress and airline services and reconcile the discrepancies between theory, practical implications, and empirical results. We examine if and how airlines in financial distress may change their service provisions to turn around, with a particular focus on the moderating role of operating unit costs and market share. In the study, four measures of service failure (the inverse of service quality) are constructed and evaluated: airline arrival delay minutes attributable to the carrier, cancelations attributable to the carrier, mishandled baggage, and involuntary denied boardings. In the US domestic airline business context, we estimate the mixed-effects model using panel data from the Department of Transportation and Wharton Research Data Services. We find robust evidence that financial distress plays a vital role in airline service provisions, and the distress-service relationship is contingent upon the operating unit costs of airlines.The findings provide evidence to help explain the different and sometimes contradictory empirical findings. We depend on the aggressive strategy framework to understand the service effect of airline financial distress.

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Service quality and economic performance in the US airline business

Cited by 10 publications

References 30 publications

Airport Typology for LCC Policy Changes: A European Perspective

Airport Typology for LCC Policy Changes: A European Perspective

The Impact of Globalization on European Airline Market

Financial distress and service decisions: Empirical evidence from the US domestic airlines

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