http://hdl.handle.net/1721.1/67903 Mon, 20 May 2013 12:21:49 GMT 2013-05-20T12:21:49Z http://hdl.handle.net/1721.1/68159 Airline alliances : the airline perspective Fernandez de la Torre, Pablo E. Airline alliances are one of the critical issues faced by the airline industry in the 1990s. In this thesis, an overview of the most significant impacts that the formation of alliances have brought to the industry-especially to airline management-is presented. Part I presents several frameworks to help understand why alliances have become so critical for the participating airlines. A definition of airline alliances, different typologies to classify them, the main motivations for their formation, and the recent trends in the industry are presented. The alliances' main objective is the increase of market coverage, though the strengthening of market position on certain routes and the reduction of costs are additional sources of competitive advantage they provide to the participating airlines. Alliances can also bring many benefits to customers in terms of improved service, although they represent a threat for sustainable competition. Part II analyzes two critical problems faced by airline management. First, it is analyzed the effect of the network connectivity through an alliance hub-to-hub linkage scheme on the increase in market share. The analysis shows that the alliance hub-to-hub link represents a significant source of additional traffic for the alliance. Accessibility, a measure developed for network connectivity, has proven to be a critical factor in increasing market share on the alliance hub-to-hub link. Scheduling coordination within alliances, therefore, should consider the maximization of accessibility as a critical driver of demand. The second problem analyzed is the introduction of codesharing into revenue management systems. There are four different problems associated with it, which are interrelated in practice. One of them, the valuation and seat inventory control process for codeshare traffic is analyzed in detail. Two main revenue management approaches to handle codesharing are presented: The proration approach and the fully integrated approach. The latter aims to maximize the combined revenue and implies higher complexity in its implementation, while the former has easier implementation. Under the proration approach, there is a significant source of revenue loss due to an incorrect valuation of the revenue contribution brought by codeshare traffic. Although a solution is proposed to solve this problem, a final answer should include a redefinition of the way codesharing agreements are currently established. Includes bibliographical references (p. 211-214) Fri, 01 Jan 1999 05:00:00 GMT http://hdl.handle.net/1721.1/68159 1999-01-01T05:00:00Z http://hdl.handle.net/1721.1/68158 Regionalism in international air transportation--cooperation and competition : papers from an international conference organized by the Massachusetts Institute of Technology, held at the Amman Chamber of Commerce, Amman, Jordan, April 19-21, 1983, under the auspices of Alia, the Royal Jordanian Airline. Preface: Alia: The Royal Jordanian Airline is very pleased to present this collectiont of papers originally presented at the international conference entitled, "Regionalism in International Air Transportation: Cooperation and Competition", held in Amman, Jordan during April 19-21, 1983. Regionalism, a method which ideally, allows groups of nations and airlines to work together efficiently in air transport operations, while competing with other similar groups, has been proposed as a means to help solve many of the problems currently plaguing the airline industry. Regionalism has been practised in the past, with some difficulty and some success, but its many possibilities have yet to be fully explored. Thus, Alia, a commercial air carrier with a long commitment to regional cooperation and progressive thinking, and the Massachusetts Institute of Technology (MIT), an academic institution with an international reputation for excellence in the ideas and practical applications relating to modern technologies, decided to cooperate in organizing an international forum for discussion of this important concept. As a result of long and dedicated cooperation between the MIT's Department of Aeronautics & Astronautics, its Center for Advanced Engineering Study Seminar Office, Alia staff members and a wide range of local institutions in Amman, the conference was a great success. It was a unique opportunity for senior airline personnel and civil aviation authorities to address the potential of regionalism in commercial, operational and technical areas. As a quick scanning of the list of authors whose papers are published herein demonstrates, the participants, representing 25 different countries, were exposed to past experiences, current activities and conceptual approaches to regionalism by some of the aviation community's most respected thinkers and practitioners. Not reflected within the covers of this book are the equally valuable exchanges of ideas which followed each presentation and the high spirit of exploration which characterised the three-day conference. We were fortunate to have welcomed also eleven journalists representing some of the most prestigious journals in the aviation industry, who produced extensive and thoughtful reports which reached a much wider audience of air transportation professionals. Conference participant evaluations reflected their high satisfaction with program format, content, organization and services. Some 84 percent of those attending the Amman conference expressed interest in a follow-up program on the subject of regionalism. It was most gratifying for Alia to sponsor and host this meeting in Amman, the capital of a small but historic Arab country which has become an important regional commercial and aviation center. Alia has played a crucial role in Jordan's development during the past 20 years, as anticipated by the vision of His Majesty King Hussein, whose interest in aviation and the potential for regional cooperation was demonstrated by his contributions to the conference as both speaker and participant. The regional activities already undertaken by Alia have benefitted from his counsel and encouragement, and we remain committed to seeking new cooperative opportunities. With appreciation for the contributions of all program speakers, for the enthusiastic participation of the registrants, the hard work of the MIT and Alia staff members and the cooperation of many Jordanian institutions, this publication is dedicated to a brighter future for the international aviation industry, in the hope that the potential of regionalism - especially in its coo perative form - will be considered and tested in practice as an idea whose time has come. Cover title; Deceomber, 1994"--Preface; Includes bibliographical references http://hdl.handle.net/1721.1/68158 http://hdl.handle.net/1721.1/68157 A systems analysis of short haul air transportation August 1965; This program [Project TRANSPORT; prepared for the U.S. Dept. of Commerce by the Massachusetts Institute of Technology; comprising pt. 3 of a 4 v. series] is concerned with the continuation of a study of short haul air transportation problems to establish the potential role of air travel using a systems approach in which all economic, operational and technical factors are examined"--p. [1] of a Continuation of A systems analysis of short haul air ground transportation (1965); Some technical reports issued with added cover: MIT Dept. of Aeronautics and Astronautics, Flight Transportation Laboratory; Includes bibliographical references Fri, 01 Jan 1965 05:00:00 GMT http://hdl.handle.net/1721.1/68157 1965-01-01T05:00:00Z http://hdl.handle.net/1721.1/68156 Competition between traditional and low-cost airlines for local hub traffic Nissenberg, James M. It is conventional wisdom among informed observers of the U.S. airline industry that the passengers who fly full-service, hub-and-spoke-style, "traditional" airlines like American, United and Delta are significantly different from those who fly so-called "low-cost" airlines Southwest, RenoAir and Valujet. The former supposedly value level-of-service attributes like frequent flights, frequent flyer program, pre-assigned seating and first class cabin, while the latter are mostly concerned with obtaining a low fare. In markets where traditional and low-cost airlines compete, one would expect that the number of passengers flying each airline has statistically different responses to changes in important airline transport supply and market socioeconomic variables. However, few studies have tried to quantify these differences. This thesis tests the idea that traditional and low-cost airline passengers belong to different market segments. A series of econometric demand models are developed separately for the traditional and low-cost airline for short-haul markets in which the two compete. The markets connect the traditional airline's hub airport with some of its "spoke" cities. Elasticities of demand are calculated for population, per capita income, average fare, nonstop frequency, flight time, cross-fare and cross-frequency. To determine if traditional and low-cost airline passenger elasticities also differ by level of competition, demand models are estimated for three separate hub airports. Estimated demand model elasticities strongly suggest that traditional and low-cost airline passengers have significantly different valuations of airline trip attributes. The values of exogenous market variables also appear to have a differential effect. Specifically, changes in average fare and flight time seem to have a stronger effect on the number of low-cost airline passengers, while changes in population and per capita income seem to have a stronger effect on the number of traditional airline passengers. Flight frequency seems to have an effect sensitive to the relative number of individual airline flights, but independent of carrier type. Cross-fare and cross-frequency elasticity estimates indicate that, in general, passengers perceive traditional and low-cost airlines as rather poor substitutes. June 1996; Includes bibliographical references (p. 133-134) Mon, 01 Jan 1996 05:00:00 GMT http://hdl.handle.net/1721.1/68156 1996-01-01T05:00:00Z