The Airline Industry In The 21st Century Competition Between Network Carriers And Low Cost Carriers

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The Airline Industry in the 21st Century - Competition between Network Carriers and Low-Cost Carriers

Author : Christian Hammer
Publisher : GRIN Verlag
ISBN 13 : 3638551881
Total Pages : 22 pages
Book Rating : 4.6/5 (385 download)

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Book Synopsis The Airline Industry in the 21st Century - Competition between Network Carriers and Low-Cost Carriers by : Christian Hammer

Download or read book The Airline Industry in the 21st Century - Competition between Network Carriers and Low-Cost Carriers written by Christian Hammer and published by GRIN Verlag. This book was released on 2006-10-05 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2005 in the subject Business economics - General, grade: 1,5, Vienna University of Economics and Business (Dept. of English Business Communication), language: English, abstract: External shocks, such as terrorist attacks, wars in Afghanistan and Iraq, the SARS epidemic and the worldwide economic downturn have hit the aviation industry badly. Many airlines have posted substantial losses (Lindstädt and Fauser 2003, 23). According to the chairman of Lufthansa’s supervisory board, Jürgen Weber (“Fliegen, bis der Geier kommt”: 58), about half of the [network] airlines are de facto bankrupt. Franke (2004: 15) argues that “the severe crisis of the global aviation industry has primarily struck the classical network carriers (NCs) with their complex hub&spoke [sic!] operation platforms”. Low-cost carriers (LCCs), however, were not hit by the downturn. With their lean business models they offered a good alternative at a time when passengers began to look for ways to avoid paying the high prices NCs demanded (Franke 2004:15). This paper analyses the competitive environment in the airline industry. I shall briefly describe the different business models in the industry: the LCC and the NC model. I will then analyze the role airports play. The main purpose however, is to identify possible future scenarios in the industry.

The Airline Industry

Author : Alessandro Cento
Publisher : Physica
ISBN 13 : 9783790823271
Total Pages : 184 pages
Book Rating : 4.8/5 (232 download)

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Book Synopsis The Airline Industry by : Alessandro Cento

Download or read book The Airline Industry written by Alessandro Cento and published by Physica. This book was released on 2009-08-29 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt: The debate on the future of the aviation sector and the viability of its traditional business practices is the core of this book. The liberalization of the EU market in the 1990s has radically modi?ed the competitive environment and the nature of airline competition. Furthermore, the new millennium began with terrorist attacks, epidemics, trade globalization, and the rise of oil prices, all of which combined to push the industry into a “perfect storm”. Airline industry pro?tability has been an elusive goal for several decades and the recent events has only accentuated existing weaknesses. The main concern of ind- try observers is whether the airline business model, successful during the 1980s and 1990s, is now sustainable in a market crowded by low-cost carriers. The airlines that will respond rapidly and determinedly to increase pressure to restructure, conso- date and segment the industry will achieve competitive advantages. In this context, the present study aims to model the new conduct of the ‘legacy’ carriers in a new liberalized European market in terms of network and pricing competition with l- cost carriers and competitive reaction to the global economic crises.

The Airline Industry

Author : Alessandro Cento
Publisher : Springer Science & Business Media
ISBN 13 : 3790820881
Total Pages : 189 pages
Book Rating : 4.7/5 (98 download)

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Book Synopsis The Airline Industry by : Alessandro Cento

Download or read book The Airline Industry written by Alessandro Cento and published by Springer Science & Business Media. This book was released on 2008-10-15 with total page 189 pages. Available in PDF, EPUB and Kindle. Book excerpt: The debate on the future of the aviation sector and the viability of its traditional business practices is the core of this book. The liberalization of the EU market in the 1990s has radically modi?ed the competitive environment and the nature of airline competition. Furthermore, the new millennium began with terrorist attacks, epidemics, trade globalization, and the rise of oil prices, all of which combined to push the industry into a “perfect storm”. Airline industry pro?tability has been an elusive goal for several decades and the recent events has only accentuated existing weaknesses. The main concern of ind- try observers is whether the airline business model, successful during the 1980s and 1990s, is now sustainable in a market crowded by low-cost carriers. The airlines that will respond rapidly and determinedly to increase pressure to restructure, conso- date and segment the industry will achieve competitive advantages. In this context, the present study aims to model the new conduct of the ‘legacy’ carriers in a new liberalized European market in terms of network and pricing competition with l- cost carriers and competitive reaction to the global economic crises.

Low-Cost Carriers in Emerging Countries

Author : John Bowen
Publisher : Elsevier
ISBN 13 : 0128113944
Total Pages : 282 pages
Book Rating : 4.1/5 (281 download)

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Book Synopsis Low-Cost Carriers in Emerging Countries by : John Bowen

Download or read book Low-Cost Carriers in Emerging Countries written by John Bowen and published by Elsevier. This book was released on 2019-02-13 with total page 282 pages. Available in PDF, EPUB and Kindle. Book excerpt: Low-Cost Airline Carriers in Emerging Countries traces the development of low-cost carriers (LCCs) in Asia, Latin America, the Middle East and Africa, examining airlines that have become significant players in their home markets but little known at a global scale. The book maps the geography of the LCC phenomenon, explaining the starkly varying success of budget airlines, and assessing their current social, economic and environmental impacts. The book concludes with insights into the future potential of the LCC phenomenon along with its global ramifications. Beginning with Southwest Airlines in the 1970s, low-cost carriers (LCCs) have democratized air travel around the world, fostering huge increases in airline traffic and transforming the airline industry. At the same time however, the ascent of these budget airlines has exacerbated aviation-related problems such as aircraft noise, airport congestion, greenhouse gas emissions and more. LCCs have been extensively studied in the US and Europe but not in emerging regions of the globe. Yet the impact of such airlines is greatest in low- and middle-income economies where only a small fraction of the population has ever flown, and where competition from alternative modes (road, rail) is weak. - Examines the evolution of low cost carriers around the world, how established airlines react to their entry and the wide-ranging societal implications for individual countries and the world - Places emerging countries' LCCs into a global context, comparing them to their US and European counterparts - Offers original quantitative analysis of LCC networks at several spatial scales (global, regional, national, airport vs. airport) using global schedule data from OAG - Includes professionally produced maps of representative airlines networks

Low Cost Carriers

Author : Stephen Ison
Publisher : Routledge
ISBN 13 : 135155963X
Total Pages : 416 pages
Book Rating : 4.3/5 (515 download)

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Book Synopsis Low Cost Carriers by : Stephen Ison

Download or read book Low Cost Carriers written by Stephen Ison and published by Routledge. This book was released on 2017-07-05 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt: Low cost carriers (LCCs) represent one of the most exciting and dynamic yet often contentious developments in recent commercial aviation history. Formed as a direct result of policies of airline deregulation and liberalisation that were initiated in the United States in the late 1970s before being implemented in certain European, Australasian, Latin American and other world markets from the mid-1990s onwards to encourage competition, LCCs have been responsible for progressively reconfiguring the spatial patterns, operational practices and passenger experiences of flight. In the process, they have enabled growing numbers of people to fly to more places, more frequently, and at lower cost than had been previously possible. In so doing, however, they have generated a number of socio-economic and environmental challenges. The 23 essays included in this volume provide a detailed insight into the emergence, expansion and evolution of the low cost carrier sector worldwide. The volume covers deregulation and liberalisation of the global airline sector, the business models and operating characteristics of low cost carriers, the changing nature of the airline/airport relationship, LCC network characteristics, issues of pricing and competition and the current impacts and likely future trajectories.

Competition versus Predation in Aviation Markets

Author : Peter Forsyth
Publisher : Routledge
ISBN 13 : 1351161393
Total Pages : 375 pages
Book Rating : 4.3/5 (511 download)

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Book Synopsis Competition versus Predation in Aviation Markets by : Peter Forsyth

Download or read book Competition versus Predation in Aviation Markets written by Peter Forsyth and published by Routledge. This book was released on 2018-01-18 with total page 375 pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior to liberalization, there was little scope for predatory behaviour in the aviation market. However, following deregulation, new entrants sought to compete with entrenched incumbents. Low-cost carriers (LCCs) gained significant market share, which in turn provoked many different kinds of defensive response. Having put pressure on established carriers, low-cost airlines are themselves feeling the pressure of competition from new operators. While it is normal and natural for airlines to react to competition - modifying their services, the ways in which they offer them and their prices - when does aggressive commercial behaviour go too far and become predation? This book considers what exactly is meant by 'predation' in the aviation environment, and explores the strategies LCCs adopt in order to gain market share, as well as the strategies of the established airlines in response to competition from new entrants to the market. It also addresses the key question of what competition policy should do to ensure intensive competition. Competition versus Predation in Aviation Markets brings together contributions from around the world, from airlines, government agencies, leading academics and consultants, providing a wealth of perspectives on a business practice crucial to airline survival.

The No Frills Strategy of Low-Cost Carriers

Author : Daniel Döring
Publisher : GRIN Verlag
ISBN 13 : 3640467647
Total Pages : 97 pages
Book Rating : 4.6/5 (44 download)

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Book Synopsis The No Frills Strategy of Low-Cost Carriers by : Daniel Döring

Download or read book The No Frills Strategy of Low-Cost Carriers written by Daniel Döring and published by GRIN Verlag. This book was released on 2009-11 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thesis (M.A.) from the year 2009 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, Schmalkalden University of Applied Sciences, language: English, abstract: Therefore the FIRST chapter in this paper is going to have a look at the developments of the international airline industry in Europe. Here we are going to have a look at the historical development. It is going to be described in detail how the deregulation and liberalization in Europe happened, and what changes have been put in place. The liberalization packages are going to be described in detail, and the outcomes of the liberalisation and deregulation are going to be stated. In chapter THREE, the LCC's are going to be introduced. Here we are going to have a quick introduction on what 'NO-Frill' means in the context of air travel. Further the development of LCC's in Europe is going to be shown. After that there is going to be a focus on the development of LCC's in Germany. Here the airlines which operate in Germany are going to be stated, and how they have developed over the years. Chapter FOUR is going to focus on the marketing strategy of LCC's in Europe, and how they operate. This chapter focuses on how they operate, how they choose their network and fleet. Also important is to find out what their target market is, and how they manage their sales and pricing strategy. This chapter gives a detailed explanation on how such airlines function. After having had a look at the LCC's strategy, Chapter FIVE focuses on the effects such airlines have on secondary airports. Also this chapter describes what regional effects such an airport has on its surrounding. In Chapter SIX the Airport Frankfurt Hahn stands in the centre of discussion. This chapter describes the several development stages of Frankfurt Hahn in terms of terminal or runway extension, and passenger development. Also this chapter analyses the catchment area of Frankfurt Hahn, and its infrastructure. After havi

State of Competition in the Airline Industry

Author : United States. Congress. House. Committee on the Judiciary
Publisher :
ISBN 13 :
Total Pages : 256 pages
Book Rating : 4.:/5 (327 download)

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Book Synopsis State of Competition in the Airline Industry by : United States. Congress. House. Committee on the Judiciary

Download or read book State of Competition in the Airline Industry written by United States. Congress. House. Committee on the Judiciary and published by . This book was released on 2000 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Low-cost carrier industry: A focus on Germanwings strategy

Author : Volker Küpper
Publisher : GRIN Verlag
ISBN 13 : 3638047474
Total Pages : 20 pages
Book Rating : 4.6/5 (38 download)

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Book Synopsis Low-cost carrier industry: A focus on Germanwings strategy by : Volker Küpper

Download or read book Low-cost carrier industry: A focus on Germanwings strategy written by Volker Küpper and published by GRIN Verlag. This book was released on 2008-05-16 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2007 in the subject Business economics - General, grade: 1,0, Edinburgh Napier University, course: Economics of Business Strategy, language: English, abstract: Since the world’s first airline company has been established (German Airship Transport Corporation in 1909), especially the new style of low-cost airlines increased the competition on the market for commercial flights. Towards the end of the century low-cost airlines offered first no-frills products at a low price. The concept originated in the U.S., before it spread to Europe in the early 1990’s and subsequently to the rest of the world (Chan 2000). One main reason for the accelerated increase of low-cost flights can be seen in the EU enlargement, where open skies arrangements were extended. As a result low-cost routes were established by existing and new operators. The main characteristic of this new strategic orientation was the lower operating cost structure than this of the traditional market participants. The traditional airline industry had to face an essential change in the market, with an increase of competition and new business models. Focusing on Europe, there were only a few low-cost airlines before the year of 2000. However, today about 60 low-cost carriers moved mainstream in Europe with a total market share of 24%, whereas in Germany 23 low-cost airlines operate (Berster 2007)... ...To evaluate the specific strategy of Germanwings it is necessary to set limits to the field of study. After introducing the company itself, the strategic position will be evaluated by focusing on Germany. Thus, Germanwings will be compared to the operators acting in this country. Therefore, it is useful to introduce a strategic mapping and the analysis of price practices focusing on Germanwings. Furthermore, important individual measures of the company will be explained which soften the impact of the above mentioned external influencing factors (PEST-analysis). Finally, some up-to-date measures of the company will conclude its strategic orientation.

The Airline Business

Author : Rigas Doganis
Publisher : Routledge
ISBN 13 : 1134281021
Total Pages : 320 pages
Book Rating : 4.1/5 (342 download)

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Book Synopsis The Airline Business by : Rigas Doganis

Download or read book The Airline Business written by Rigas Doganis and published by Routledge. This book was released on 2005-11-16 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: The second edition of Rigas Doganis' book brings the airline industry story up to date, exploring airline mergers and alliances, price wars, the impact of disasters and the future prospects for the industry as a whole.

Airlines corporate strategies. Distinctions between Full-Service and Low-Cost Carriers

Author :
Publisher : GRIN Verlag
ISBN 13 : 3346915492
Total Pages : 14 pages
Book Rating : 4.3/5 (469 download)

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Book Synopsis Airlines corporate strategies. Distinctions between Full-Service and Low-Cost Carriers by :

Download or read book Airlines corporate strategies. Distinctions between Full-Service and Low-Cost Carriers written by and published by GRIN Verlag. This book was released on 2023-08-01 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2023 in the subject Business economics - Business Management, Corporate Governance, grade: 1,4, Buckinghamshire New University, course: Aviation Strategy and Financial Performance, language: English, abstract: In this report the general approach of Full-Service Carriers and Low-Cost Carriers has been further studied, and the response strategy adopted by Full-Service Carriers to stay competitive in the market has been further explained. The advent of Low-Cost Carriers has changed the dynamics of the aviation market during the last two decades; consequently, the classic Full-Service Carrier, with its more elaborate passenger services as it is known in the modern days, does not exist anymore; this brings up big competition in the short and medium-haul market as Full-Service Carriers must compete with the simple structures and low costs of Low-Cost Carriers.

Low Cost Carriers - Evolution, Strategies and Performance

Author : Vanessa Blaha
Publisher : GRIN Verlag
ISBN 13 : 3638204855
Total Pages : 38 pages
Book Rating : 4.6/5 (382 download)

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Book Synopsis Low Cost Carriers - Evolution, Strategies and Performance by : Vanessa Blaha

Download or read book Low Cost Carriers - Evolution, Strategies and Performance written by Vanessa Blaha and published by GRIN Verlag. This book was released on 2003-07-14 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2003 in the subject Business economics - Business Management, Corporate Governance, grade: 1,7 (A-), University of Cologne (Business Planning and Logistics), course: Global Competition in the Aviation Industy, language: English, abstract: In the last three decades low-cost carriers (hence forward referred to as LCCs) have captivated travellers by making the world smaller through cheap short-haul flights. Travellers in the United States have benefited from this concept since the 1970s; whereas, the development in Europe has been much more recent. Lately, LCCs have been quite a hot topic especially since the terrorist attacks on September 11, 2001. Many LCCs have amazed investors with their financial performance, as they successfully earned profits in a time when most conventional carriers reported major losses. In Europe, LCCs have entered the market in order to gain market share and to take part in the success of the business. In Germany, the LCC market has taken off with the emergence of two new carriers in the end of 2002. To best understand the low-cost concept, the evolution of LCCs in the United States and in Europe is examined in the second chapter. Furthermore, the background of the most successful LCC Southwest, still being the role model for other LCCs, is presented. In the third chapter the competition theory of Michael Porter is discussed in order to be able to analyse the competitive strategies followed by the LCCs in the chapter four. The fifth chapter gives a brief outline on the most striving marketing strategies among LCCs. Marketing strategies are examined in the fifth chapter. The performance of LCCs is analysed in the sixth chapter, and a comparison to the performance of conventional carriers is conducted. An outlook for the future can be found in chapter seven.

The Low Cost Carrier Worldwide

Author : Dr Michael Lück
Publisher : Ashgate Publishing, Ltd.
ISBN 13 : 1472400224
Total Pages : 365 pages
Book Rating : 4.4/5 (724 download)

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Book Synopsis The Low Cost Carrier Worldwide by : Dr Michael Lück

Download or read book The Low Cost Carrier Worldwide written by Dr Michael Lück and published by Ashgate Publishing, Ltd.. This book was released on 2013-09-28 with total page 365 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume provides the first comprehensive overview of developments, the legal framework and the current situation of the low-cost carrier phenomenon across the globe. It contains a dozen chapters, each dedicated to a region, all written by highly experienced and renowned experts from around the world. The Low Cost Carrier Worldwide is written primarily for upper-level undergraduate and postgraduate students, as well as researchers and practitioners within the fields of aviation, transport and tourism.

Airline Hubs

Author : Mike DeWine
Publisher : DIANE Publishing
ISBN 13 : 078818413X
Total Pages : 85 pages
Book Rating : 4.7/5 (881 download)

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Book Synopsis Airline Hubs by : Mike DeWine

Download or read book Airline Hubs written by Mike DeWine and published by DIANE Publishing. This book was released on 1999-12 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explores the state of competition in the domestic aviation industry. Specifically, it attempts to determine whether hubs are producing the benefits of competition or, as some argue, permitting the dominant carrier at the hub to impose monopoly prices on the public. Witnesses include: Senators Mike DeWine, Herbert Kohl, and Charles E. Grassley; Robert J. Spane, pres. and CEO, Vanguard Airlines; Richard B. Hirst, sr. v.p. for corporate affairs, Northwest Airlines; Kevin C. Stamper, chmn. and CEO, ProAir; Cyril D. Murphy, v.p. for international affairs, United Airlines; and Steven A. Morrison, Prof. of economics, Northeastern University.

Marketing differences between traditional airlines and low-cost airlines in Europe

Author : Nils Kernchen
Publisher : GRIN Verlag
ISBN 13 : 3638350517
Total Pages : 61 pages
Book Rating : 4.6/5 (383 download)

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Book Synopsis Marketing differences between traditional airlines and low-cost airlines in Europe by : Nils Kernchen

Download or read book Marketing differences between traditional airlines and low-cost airlines in Europe written by Nils Kernchen and published by GRIN Verlag. This book was released on 2005-02-15 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2004 in the subject Business economics - Offline Marketing and Online Marketing, grade: A-, ESG Management School, Paris, language: English, abstract: European Media is writing daily articles about the situation of the European airline business. The European airline market is, at the moment, with all the important changes and actual turbulences, the most dynamic industry sector. Some of these changes are: The creation of new low-cost airlines in Europe, like Germanwings (Germany), Volareweb (Italy), and Sky Europe (Slovakia); The disappearance and bankruptcy of airlines, such as V-Bird (Netherlands) and Swissair; Air France merges with KLM to become the worlds biggest airline group; A significant increase of purchases of airplanes by Arabic airlines. This thesis focuses on the low-cost airlines, which arrived in Europe during the last 10 years and changed micro and macro environment of the airline business. Low-cost airlines like Ryanair and EasyJet make big profits while Alitalia, British Airways, Air France, and Lufthansa are having enormous problems. The general opinion is that low-cost airlines are successful because of its lower cost in production, and therefore of its lower price they can offer to the customers. The thesis will show that the cost factor is not the only reason for the success of low-cost airlines: "Being cheap is not enough" The objective of the thesis is to find other reasons which explain the success of low-cost airlines by analysing the marketing development of European low-cost airlines with its strategies, positioning, customer satisfaction etc. Of special interest: The question how the low-cost trend changes the marketing and the behaviour of the traditional airlines and how do the customers react. As reaction to this trend the traditional airlines are reducing at the moment costs in salary, distribution, maintenance etc. to survive. This is not enough. The thesis mentions marketing ideas and possibilities of how to compete against low-cost airlines, either by copying successful marketing methods of these airlines or by finding new innovative methods, fresh ideas and a new positioning. The main objectives for my thesis are: Is the success of low-cost airlines only a short term event or is it a successful business marketing concept? Are the traditional airlines in danger? Is the Low Cost concept the better concept? What can traditional airlines learn from the marketing methods of low-cost airlines?

Low-Cost Carriers in Emerging Countries

Author : John Bowen
Publisher : Elsevier
ISBN 13 : 0128113936
Total Pages : 280 pages
Book Rating : 4.1/5 (281 download)

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Book Synopsis Low-Cost Carriers in Emerging Countries by : John Bowen

Download or read book Low-Cost Carriers in Emerging Countries written by John Bowen and published by Elsevier. This book was released on 2019-02-15 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt: Low-Cost Airline Carriers in Emerging Countries traces the development of low-cost carriers (LCCs) in Asia, Latin America, the Middle East and Africa, examining airlines that have become significant players in their home markets but little known at a global scale. The book maps the geography of the LCC phenomenon, explaining the starkly varying success of budget airlines, and assessing their current social, economic and environmental impacts. The book concludes with insights into the future potential of the LCC phenomenon along with its global ramifications. Beginning with Southwest Airlines in the 1970s, low-cost carriers (LCCs) have democratized air travel around the world, fostering huge increases in airline traffic and transforming the airline industry. At the same time however, the ascent of these budget airlines has exacerbated aviation-related problems such as aircraft noise, airport congestion, greenhouse gas emissions and more. LCCs have been extensively studied in the US and Europe but not in emerging regions of the globe. Yet the impact of such airlines is greatest in low- and middle-income economies where only a small fraction of the population has ever flown, and where competition from alternative modes (road, rail) is weak. Examines the evolution of low cost carriers around the world, how established airlines react to their entry and the wide-ranging societal implications for individual countries and the world Places emerging countries' LCCs into a global context, comparing them to their US and European counterparts Offers original quantitative analysis of LCC networks at several spatial scales (global, regional, national, airport vs. airport) using global schedule data from OAG Includes professionally produced maps of representative airlines networks

Efficiency and Competitiveness of International Airlines

Author : Almas Heshmati
Publisher : Springer
ISBN 13 : 981101017X
Total Pages : 206 pages
Book Rating : 4.8/5 (11 download)

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Book Synopsis Efficiency and Competitiveness of International Airlines by : Almas Heshmati

Download or read book Efficiency and Competitiveness of International Airlines written by Almas Heshmati and published by Springer. This book was released on 2016-05-18 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the factors that support the strengths of international airlines in general and the Asian airline carriers in particular. Defining the quality of human capital as the level of education and the competence of airline employees, it analyzes the efficiency of 39 airlines in various regions, both in terms of production and cost structures. It argues that, despite Asia’s well-developed and globally competitive manufacturing sector, aided by open market practices, its overall service sector still lags far behind more advanced economies. As this does not stop Asia-based carriers from generally being more efficient than their counterparts in Europe and North America, the book investigates how competitiveness analysis of the airline industry can help Asian policymakers better prepare for the liberalization of the service sector, given how crucial this aspect is for the future growth of the Asia-Pacific region. Efficiency and Competitiveness of International Airlines offers a valuable resource for policymakers, airline employees, and researchers and students of microeconomics.