The Influence of Price Discrimination from Airports on the Route Development Behavior of Airlines

Given the prominence and magnitude of airport incentive schemes,it is surprising that literature hitherto remains silent as to their effectiveness.In this paper,the relationship between airport incentive schemes and the route development behavior of airlines is analyzed.Because of rare and often controversial findings in the extant literature regarding relevant influencing variables for attracting airlines at an airport,expert interviews are used as a complement to formulate testable hypotheses in this regard.A fixed effects regression model is used to test the hypotheses with a dataset that covers all seat capacity offered at the 22 largest German commercial airports in the week 46 from 2004 to 2011.It is found that incentives from primary choice,as well as secondary choice airports,have a significant influence on Low Cost Carriers.Furthermore,Low Cost Carriers,in general,do not leave any of both types of airports when the incentives cease.In the case of Network Carriers,no case is found where one joins a primary choice airport and receives an incentive.Insufficient data between Network Carriers and secondary choice airports in the time when incentives have ceased means that no statement can be given.

An Optimized Deep Learning Approach for Improving Airline Services

The aviation industry is one of the most competitive markets. Themost common approach for airline service providers is to improve passengersatisfaction. Passenger satisfaction in the aviation industry occurs whenpassengers’ expectations are met during flights. Airline service quality iscritical in attracting new passengers and retaining existing ones. It is crucialto identify passengers’ pain points and enhance their satisfaction with theservices offered. The airlines used a variety of techniques to improve servicequality. They used data analysis approaches to analyze the passenger pointdata. These solutions have focused simply on surveys;consequently, deeplearningapproaches have received insufficient attention. In this study, deepneural networks with the adaptive moment estimation Adam optimizationalgorithm were applied to enhance classification performance. In previousstudies, the quality of the dataset has been ignored. The proposed approachwas applied to the airline passenger satisfaction dataset from the Kagglerepository. It was validated by applying artificial neural networks (ANNs),random forests, and support vector machine techniques to the same dataset. Itwas compared with other research papers that used the same dataset and had asimilar problem. The experimental results showed that the proposed approachoutperformed previous studies. It has achieved an accuracy of 99.3%.

Analysis of high-speed rail and airline transport cooperation in presence of non-purchase option

We study cooperation between the airline and high-speed rail(HSR) sectors by formulating their joint profit as a maximization problem using a multinomial logit choice model in a three-node setting. We allow the nonpurchase option as an outside option available to consumers. The demand for each choice is not only a function of the price but also the service quality, such as the total trip time, frequency of service, and ease of connecting from the hub to a nearby HSR station. As a result, the following findings are presented. First, regardless of the service quality of either sector and the non-purchase option,cooperation decreases the total volume of the domestic market of a country. Second, when the attractiveness of the outside option is high, the HSR and air sectors can prevent a large reduction in the total volume by cooperation in the connecting market. However, this is not the case in the domestic market. Third, if the non-purchase quality in the domestic market is high, then cooperation increases the social welfare of the whole market. If the non-purchase quality is low, then cooperation increases the welfare of the whole market only in cases where the number of potential customers in the connecting market is relatively large. We also show the effect of improving air–rail service quality on each market share and on the total profit.

Airline Partner Selection Optimization Based on an Improved QSI Model

This paper studies airline partner selection.The international airline operation involves considerable cooperations with other airlines at home and abroad.How to choose the most suitable partners is a realistic issue for Chinese airlines.In this paper the quality of service index(QSI)model is improved by applying more necessary indexes based on the analysis of large scale of data.A partner selection model is established to help airlines identify the best partner(s)in a scientific and effective way among potential candidates.Finally,real data from an airline company in China is applied to test the model.The outcome verify the effectiveness of the partner selection model proposed in this paper.The model can be helpful for selecting more suitable partners and increasing coordination value through cooperation with the partners.

Airline Alliance Revenue Distribution Considering Horizontal and Vertical Competition

Considering the existence of multi-level fares in the alliance,and the existence of horizontal competition and vertical competition at the same time,this paper intends to maximize the revenue of airline alliance and fairly distribute the revenue to member airlines.Firstly,a model is built under the centralized mechanism,in which all airlines in the alliance are regarded as a whole.By solving the model,the shadow price of each flight leg on the code-sharing route is gotten.It is used to calculate the proportion of the revenue distribution.Then,the centralized model is decomposed into the single airline model by the proportion.The seat allocation among airlines and distributed revenue can be gotten by solving the model.Three typical examples are designed to test it.The results show that,the model can effectively reflect the managerial principal of the airline alliance,that is maximizing total revenue and fairly distributing the revenue among member airlines.

Forecasting the Probability of Heat Related Failures in Powered Ground at an Equipment Major Airline

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Economic analysis of spider web airline networks

The distinct network organization, management, service and operating characteristics of US Southwest Airlines are key elements of its success compared with other airlines. As a network organization type, the spider web airline network has received more attention. In this paper, we analyzed the relation between the spider web airline network and spider web, and the structure of spider web airline network, built the assignment model of the spider web airline network,and investigated the economics concerned.

A Dynamic Evolution Model of Airline Networks

Empirical data show that most of the degree distribution of airline networks assume a double power law. In this work, firstly, we assume cities as sites, flight between two cities as an edge between two sites, and build a dynamic evolution model for airline networks by improving the BA model, in which the conception of attractiveness plays a decisive role in the course of evolution of the networks. To this end, we discuss whether the attractiveness depends on the site label s or not separately, finally we obtain analytic degree distribution. As a result, if the attractiveness of a site is independent of the degree distribution of sites, which will follow the double power law, otherwise, it will be scale-free. Moreover, degree distribution depends on the parameters of the models, and some parameters aye more sensitive than others.

China's Airline Industry

With the fast growth of China’s economy in the past dozen years, its airline industry has experienced a 20% average annual growth rate. By the end of 1994, the annual total mileage reached 6 million ton/km; the number of air routes jumped from 162 in 1978 to over 600; the number of transport aircraft stood at more than 300; and the maior flight force is up to the

Strategy-Based Forecasting Model for Civil Airlines

Airlines usually pay more attention to maintenance cost for efficiency improvement and consumption reduction. However, airlines, especially the domestic airlines, can hardly predict the cost exactly due to the uncertainty and complexity until now. In practice, the cost is calculated by collecting and calculating the invoices afterwards. To settle the problem, a maintenance cost forecasting model is proposed in this paper. Maintenance activities are classified into scheduled maintenance and unscheduled maintenance. Scheduled maintenance is periodic, in which the required materials and man-power hours can be obtained properly in advance. Nevertheless, it is impossible to acquire the necessary information of unscheduled maintenance. According to the specific characteristics of each, Activity-Based Costing (ABC) and Cost Estimating Relationships (CERs) are introduced to attack the building of forecasting models, respectively. Then practical cases, the 3C check of MD-90 and the engine shop visit are adopted to verify the cost forecasting models proposed. The results show that the models not only can predict the actual maintenance cost successfully, but also are helpful to drawing up the maintenance program and managing the maintenance funds efficiently.

WUHAN AIRLINE COMPANY

The Wuhan Airline Company (WAC) wasone of the first local air transport enterprisesin China to be approved by the CivilAviation Administration of China (CAAC), in1985. The WAC has opened many air routeswithin the province since 1987, including Wuhan-Enshi, Wuhan-Laoheko, Wuhan-Xiangfan andWuhan-Yichang.

CESS Opens Shanghai----Harbin---Los Angeles Airline

On October 28, CES opened Shanghai-Harbin-Los Angelesairline, and the initial flight ceremony was held at Taiping InternationalAirport in Harbin. It was the first flight from Harbin to USA. Leaders ofHeilongjiang Province, Harbin City and China Eastern Air HoldingCompany presented themselves on the initial flight ceremony.

XINJIANG AIRLINES

Founded on January 1, 1985, XinjiangAirlines is an aviation enterprise directlyunder the leadership of the CAAC.Under the airlines, there are 10 aviation stations,one flying group, an airplane maintenancefactory and a training centre. It now has atotal of 4,400 staff and workers on the payroll. Its head office is located in Urumchi,the capital of the Xinjiang Uygur AutonomousRegion. To develop its air service business,the airlines set up a second air transport baseat Changzhou in Jiangsu Province in April1996. With its airplanes bearing the unifiedsign of a swan and a full moon, the airlinessolemnly declares: auspiciousness andhappiness will accompany you so long as youtravel on a Xinjiang airlines flight. The airlines’ flying group is equippedwith Tu-154M, Yel-86, and Boeing

THE MANAGEMENT OF SCANDINAVIAN AIRLINES SYSTEM(SAS)

All travelers are familiar with theScandinavian Airlines System.But,everything seemed so fresh to the reporterwho had a first experience of flying SAS. Only a Beautiful Face Is Not Enough In September last year,in companywith the CCTV Zengdazongyi Troupe on atour of Denmark,Sweden and Norway

Airlines and Tourist Facilities Guide

Domestic airlines China United Airlines Since its founding in December 1986, China United Airlines (CUA) has combined with 30 provinces and cities and large enterprises to open 46 air routes, 116 flights every week. An air transport and service network has been formed with the Beijing Nanyuan Airport as the center. The CUA owns Tu-154, Challenger-601, An-24, An-12, An-26 passenger and freight aircraft. It

Shandong Airlines

Shandong Airlines recently announced that the 1st of its order for three Boeing 737-300s will be delivered in late 1995, and that the rest will be delivered in January and August 1996. Shandong province has seen vigorous economic growth and increasing air traffic in recent years. Shandong Airlines will operate these new 737-300s on domestic routes to major

New Promotion of Austrian Airlines to Celebrate the 10th Anniversary

2005 marks the 10th Anniversary of Austrian Airlines' flight operations to China. Austrian Airlines kicks off the celebration year with super attractive roundtrip fares from Beijing and Shanghai to Europe starting at RMB4,500 (excluding taxes and surcharges). The earlier the tickets are booked and purchased,the lower the airfares are for travel during the period from February 13 to April 15,2005.……

Analysis on low-cost airlines and tourism development

Low-cost airlines offered cheap fares in exchange eliminating many traditional passenger services.Cheap air transport was considered as an enabling or permissive factor for regional tourism,The most obvious effect was the growth of tourists' amount to a destination and the concomitant changing of visitors market.Additionally,with the development of low-cost airlines,the updated operation means such as on-line booking system enhanced competition ability against traditional sales agent.The selection model of airports,which were gateway for low-cost airlines' entrance to region or tourism destination,would determine the intense relationship between low-cost airlines and tourism.As international low-cost airlines gradually changed their selection from traditional secondary airports and involved into spokehub airports,the operation business model of low-cost airlines diversified as well.Typical international case of low cost airlines in south pacific region was analyzed.Besides,Spring Airlines which was the first low-cost airlines in China was illustrated as well.Further research should focus on a quantitative study on relationship among low-cost airlines,airports distribution and tourism development.