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NASA NTRS1998

Enhancing Global Competitiveness: Benchmarking Airline Operational Performance in Highly Regulated Environments

Enhancing competitiveness in the global airline industry is at the forefront of attention with airlines, government, and the flying public. The seemingly unchecked growth of major airline alliances is heralded as an enhancement to global competition. However, like many mega-conglomerates, mega-airlines will face complications driven by size regardless of the many recitations of enhanced efficiency. Outlined herein is a conceptual model to serve as a decision tool for policy-makers, managers, and consumers of airline services. This model is developed using public data for the United States (U.S.) major airline industry available from the U/S. Department of Transportation, Federal Aviation Administration, the National Aeronautics and Space Administration, the National Transportation Safety Board, and other public and private sector sources. Data points include number of accidents, pilot deviations, operational performance indicators, flight problems, and other factors. Data from these sources provide opportunity to develop a model based on a complex dot product equation of two vectors. A row vector is weighted for importance by a key informant panel of government, industry, and consumer experts, while a column vector is established with the factor value. The resulting equation, known as the national Airline Quality Rating (AQR), where Q is quality, C is weight, and V is the value of the variables, is stated Q=C[i1-19] x V[i1-19]. Looking at historical patterns of AQR results provides the basis for establishment of an industry benchmark for the purpose of enhancing airline operational performance. A 7 year average of overall operational performance provides the resulting benchmark indicator. Applications from this example can be applied to the many competitive environments of the global industry and assist policy-makers faced with rapidly changing regulatory challenges.

Bowen, Brent D.↗
NASA NTRS2003

The Empirical Analysis of Impact of Alliances on Airline Operations

Airline alliances are dominating the current air transport industry with the largest carriers of the world belonging to one of the four alliance groupings - "Wings", Star Alliance, one world, SkyTeam - which represent 56% of world Revenue Passenger Kilometers. Although much research has been carried out to evaluate the impact of alliance membership on performance of airlines, it would be of interest to ascertain the degree of impact perceived by participating airlines in alliances. It is the purpose of this paper to gather the opinion of all the airlines, belonging to the four global alliance groupings on the impact alliances have had on their traffic and on their performance in general To achieve this, a comprehensive survey of the alliance management departments of airlines participating in the four global strategic alliances was carried out. With this framework the survey has examined which type of cooperation among carriers (FFP, Code Share, Strategic Alliance without antitrust immunity, Strategic Alliance with antitrust immunity) has produced the most positive impact on traffic and which type of route (short haul, long haul, hub-hub, hub-non hub, non hub-non hub) has been mostly affected. In addition, the respondent airlines quantified the effect alliances have had on specific areas of their operation, such as load factors, traffic, costs, revenue and fares. Their responses have been analysed under each global alliances grouping, under airline and under geographic region to establish which group, type of carrier and geographic region has benefited most. The results show that each of the four global alliances groupings has experienced different results according to the type of collaboration agreed amongst their member airlines.

Iatrou, Kostas↗
NASA NTRS2006

A Comprehensive Assessment of Biologicals Contained Within Commercial Airliner Cabin Air

Both culture-based and culture-independent, biomarker-targeted microbial enumeration and identification technologies were employed to estimate total microbial and viral burden and diversity within the cabin air of commercial airliners. Samples from each of twenty flights spanning three commercial carriers were collected via air-impingement. When the total viable microbial population was estimated by assaying relative concentrations of the universal energy carrier ATP, values ranged from below detection limits (BDL) to 4.1 x 106 cells/cubic m of air. The total viable microbial population was extremely low in both of Airline A (approximately 10% samples) and C (approximately 18% samples) compared to the samples collected aboard flights on Airline A and B (approximately 70% samples). When samples were collected as a function of time over the course of flights, a gradual accumulation of microbes was observed from the time of passenger boarding through mid-flight, followed by a sharp decline in microbial abundance and viability from the initiation of descent through landing. It is concluded in this study that only 10% of the viable microbes of the cabin air were cultivable and suggested a need to employ state-of-the art molecular assay that measures both cultivable and viable-but-non-cultivable microbes. Among the cultivable bacteria, colonies of Acinetobacter sp. were by far the most profuse in Phase I, and Gram-positive bacteria of the genera Staphylococcus and Bacillus were the most abundant during Phase II. The isolation of the human pathogens Acinetobacter johnsonii, A. calcoaceticus, Janibacter melonis, Microbacterium trichotecenolyticum, Massilia timonae, Staphylococcus saprophyticus, Corynebacterium lipophiloflavum is concerning, as these bacteria can cause meningitis, septicemia, and a handful of sometimes fatal diseases and infections. Molecular microbial community analyses exhibited presence of the alpha-, beta-, gamma-, and delta- proteobacteria, as well as Gram-positive bacteria, Fusobacteria, Cyanobacteria, Deinococci, Bacterioidetes, Spirochetes, and Planctomyces in varying abundance. Neisseria meningitidis rDNA sequences were retrieved in great abundance from Airline A followed by Streptococcus oralis/mitis sequences. Pseudomonas synxantha sequences dominated Airline B clone libraries, followed by those of N. meningitidis and S. oralis/mitis. In Phase II, Airline C, sequences representative of more than 113 species, enveloping 12 classes of bacteria, were retrieved. Proteobacterial sequences were retrieved in greatest frequency (58% of all clone sequences), followed in short order by those stemming from Gram-positives bacteria (31% of all clone sequences). As for overall phylogenetic breadth, Gram-positive and alpha-proteobacteria seem to have a higher affinity for international flights, whereas beta-and gamma-proteobacteria are far more common about domestic cabin air parcels in Airline C samples. Ultimately, the majority of microbial species circulating throughout the cabin airs of commercial airliners are commensal, infrequently pathogenic normal flora of the human nasopharynx and respiratory system. Many of these microbes likely originate from the oral and nasal cavities, and lungs of passengers and flight crew and are disseminated unknowingly via routine conversation, coughing, sneezing, and stochastic passing of fomites. The data documented in this study will be useful to generate a baseline microbial population database and can be utilized to develop biosensor instrumentation for monitoring microbial quality of cabin or urban air.

microbial diversity↗
NASA NTRSDate not supplied

Demonstrating the Early Adopter Benefits of Submitting Multiple Trajectory Options for Airlines

Integrated Demand Management (IDM), is a NASA developed Traffic Flow Management (TFM) concept that uses Collaborative Trajectory Options Program (CTOP) to precondition traffic flows into the Time Based Flow Management (TBFM) region, helping traffic planners manage imbalances between demand and capacity in the National Airspace (NAS). A workshop held at NASA was conducted to demonstrate how individual airlines can be impacted by using Trajectory Options Sets (TOS) during IDM operations. A primary concern that was specifically addressed in a part-task Human-in-the-Loop simulation was who received the greater benefit, TOS participating or non-TOS participating airlines? The results showed that TOS participating airlines received greater benefit in terms of ground delay, number of reroute options, and additional flight time, than non-TOS participating airlines. However, this result was dependent on the number and location of flights. Therefore, it was advantageous for airlines to equip TOS. In addition, we found that non-TOS participating airlines also benefitted from other airlines participating in TOS, because the total system-wide ground delay was reduced as more TOS were introduced into the system. The evidence suggests that the benefits were distributed fairly, and there were no unfair disadvantages for airlines who did not equip TOS.

Integrated Demand Management↗
NASA NTRS1999

Stochastic Modeling of Airlines' Scheduled Services Revenue

Airlines' revenue generated from scheduled services account for the major share in the total revenue. As such, predicting airlines' total scheduled services revenue is of great importance both to the governments (in case of national airlines) and private airlines. This importance stems from the need to formulate future airline strategic management policies, determine government subsidy levels, and formulate governmental air transportation policies. The prediction of the airlines' total scheduled services revenue is dealt with in this paper. Four key components of airline's scheduled services are considered. These include revenues generated from passenger, cargo, mail, and excess baggage. By addressing the revenue generated from each schedule service separately, air transportation planners and designers are able to enhance their ability to formulate specific strategies for each component. Estimation results clearly indicate that the four stochastic processes (scheduled services components) are represented by different Box-Jenkins ARIMA models. The results demonstrate the appropriateness of the developed models and their ability to provide air transportation planners with future information vital to the planning and design processes.

Hamed, M. M.↗
NASA NTRS1999

Stochastic Modeling of Airlines' Scheduled Services Revenue

Airlines' revenue generated from scheduled services account for the major share in the total revenue. As such, predicting airlines' total scheduled services revenue is of great importance both to the governments (in case of national airlines) and private airlines. This importance stems from the need to formulate future airline strategic management policies, determine government subsidy levels, and formulate governmental air transportation policies. The prediction of the airlines' total scheduled services revenue is dealt with in this paper. Four key components of airline's scheduled services are considered. These include revenues generated from passenger, cargo, mail, and excess baggage. By addressing the revenue generated from each schedule service separately, air transportation planners and designers arc able to enhance their ability to formulate specific strategies for each component. Estimation results clearly indicate that the four stochastic processes (scheduled services components) are represented by different Box-Jenkins ARIMA models. The results demonstrate the appropriateness of the developed models and their ability to provide air transportation planners with future information vital to the planning and design processes.

Hamed, M. M.↗
NASA NTRS2003

The Temporal Configuration of Airline Networks

The deregulation of US aviation in 1978 resulted in the reconfiguration of airline networks into hub-and-spoke systems, spatially concentrated around a small number of central airports or 'hubs' through which an airline operates a number of daily waves of flights. A hub-and-spoke network requires a concentration of traffic in both space and time. In contrast to the U.S. airlines, European airlines had entered the phase of spatial network concentration long before deregulation. Bilateral negotiation of traffic fights between governments forced European airlines to focus their networks spatially on small number of 'national' airports. In general, these star-shaped networks were not coordinated in time. Transfer opportunities at central airports were mostly created 'by accident'. With the deregulation of the EU air transport market from 1988 on, a second phase of airline network concentration started. European airlines concentrated their networks in time by adopting or intensifying wave-system structures in their flight schedules. Temporal concentration may increase the competitive position of the network in a deregulated market because of certain cost and demand advantages.

Burghouwt, Guillaume↗
NASA NTRS2003

Industry Consolidation and Future Airline Network Structures in Europe

In the current downturn in demand for air travel, major airlines are revising and rationalizing their networks in an attempt to improve financial performance and strengthen their defences against both new entrants and traditional rivals. Expansion of commercial agreements or alliances with other airlines has become a key reaction to the increasingly competitive marketplace. In the absence, for regulatory reasons, of cross-border mergers these are the principal means by which the industry can consolidate internationally. This paper analyzes the developments which have been taking place and attempts to itentify the implications for airline network structures and the function of different hub airports. The range of services available to passengers in long-haul markets to/from Europe is evaluated before and after recent industry reorganization. Hubs are crucial to interlink the route networks of parmers in an alliance. However, duplication between nearby hub airports that find themselves within the same airline alliance can lead to loss of service at the weaker locations. The extent to which the alliance hubs in Europe duplicate or complement each other in terms of network coverage is assessed and this methodology also enables the optimal partnerships for "unattached" airlines to be identified. The future role of the various European hubs is considered under different scenarios of global alliance development. The paper concludes by considering possible longer-term developments. In an environment where the low-cost carriers will provide a major element of customer choice, it is suggested that the traditional airlines will retrench around their hubs, surrendering many secondary cities to the low-cost sector. Further reduction in the number of alliances could threaten more of the European hubs. For both regulatory and commercial reasons, the end result may be just one airline alliance - so recreating in the deregulated market the historic rule of IATA.

Dennis, Nigel↗
NASA NTRS2005

A Total Factor Productivity Based Structure for Tactical Cluster Assessment: Empirical Investigation in the Airline Industry

In this paper we analyze and assess the efficiency of the United States (U.S.) airline industry through the total factor productivity (TFP) method. While airlines use various resources to produce a heterogeneous group of outputs, this article focuses on certain fundamental outputs as final products of selected airlines. The results from this analysis indicate that the national airlines (US. domestic carriers) have higher TFP as compared to the major airlines. While major airlines have drastically cut costs in the past few years, they also need to improve efficiency or risk going out of business. In this paper, we investigate the efficiency and productivity of a selection of U.S. airlines for the years 1996 through 2001. These years have been chosen as a good example of years in which the industry experienced normal growth and generally positively returns. Subsequent to 2001 the industry experienced two severe external shocks, namely, the September 11, 2001. terrorist attacks and the Iraq war. These anomalous shocks make the years after 2001 inconsistent with respect to the type of index developed in this article.

Vasigh, Bijan↗
NASA NTRS1976

Operating cost model for local service airlines

Several mathematical models now exist which determine the operating economics for a United States trunk airline. These models are valuable in assessing the impact of new aircraft into an airline's fleet. The use of a trunk airline cost model for the local service airline does not result in representative operating costs. A new model is presented which is representative of the operating conditions and resultant costs for the local service airline. The calculated annual direct and indirect operating costs for two multiequipment airlines are compared with their actual operating experience.

Anderson, J. L.↗
NASA NTRS2002

Strategic Classification and Examination of the Development of Current Airline Alliance Activities

Previous research argues that despite the fact that strategic alliances have become an important feature of the world airline industry, little rigorous analysis has been done on the effects of these alliances. This is partially because there is a lack of precise definitions to specify different types of airline alliances in the literature. This research identifies several categories of airline alliances through a strategic classification of the current alliance activities involving the major airlines for the period 1989 to 1999. The classification enables this research to examine how strategic alliance activities are evolving, particularly to compare how airlines in North America, the European Union and the Asia Pacific region have committed to different alliances. Findings show that there is a significant difference between the number and scope of alliances adopted in the three aviation markets. These findings facilitate research to further analyse the impact of market liberalization on various formations of strategic airline alliances.

Wang, Zhi H.↗
NASA NTRS2006

How Do Airlines Perceive That Strategic Alliances Affect Their Individual Branding?

Much research has been carried out to evaluate the impact of strategic alliance membership on the performance of airlines. However it would be of interest to identify how airlines perceive this impact in terms of branding by each of the three global alliance groupings. It is the purpose of this paper to gather the opinion of airlines, belonging to the three strategic alliance groups, on the impact that the strategic alliance brands have had on their individual brands and how do they perceive that this impact will change in the future. To achieve this, a comprehensive survey of the alliance management and marketing departments of airlines participating in the three global strategic alliances was required. The results from this survey give an indication whether the strategic airline alliances, which are often referred to as marketing agreements, enhance, damage or have no impact on the individual airline brands.

Kalligiannis, Konstantinos↗
NASA NTRS2007

Financial Comparisons across Different Business Models in the Canadian Airline Industry

This paper examines the accounting and stock price performance of two Canadian airlines, WestJet and Air Canada, over a five year period, taking into account the aftermath of the systemic shock to the airline industry produced by the September 11, 2001 (9-11), terrorist attacks and subsequent events such as the 2002 SARS outbreak, the wars in Afghanistan and Iraq, and the accompanying rise in jet fuel prices. Our study focuses on the viability of low-cost versus conventional-cost business models in Canada under the current business environment and the ability of airlines to withstand and effectively respond to catastrophic industry events. Furthermore, we link the effectiveness of the airlines responses to these events to specific elements of their respective business models. We test our hypothesis through a case study. We focus on WestJet as a typical low-cost airline and compare its accounting and stock performance to Air Canada, a legacy carrier and rival in several business sectors. We find WestJet to be much less affected by catastrophic industry events. By decomposing each airline s return volatility, we observe that WestJet s systematic and unsystematic risk increased only slightly during the industry's post-9-11 turmoil when compared to Air Canada. In addition, we find that both WestJet s accounting and stock performance have been highly superior to those of Air Canada. We argue that WestJet s business model provides the firm with significantly more financial and operational flexibility than its legacy rival, Air Canada. WestJet's lower operating costs, high consumer trust, product offering, corporate structure, workforce and work practices, as well as operational procedures are all factors that appear to contribute to its relative success.

Flouris, Triant↗
NASA NTRS1975

Operational flight evaluation of the two-segment approach for use in airline service

United Airlines has developed and evaluated a two-segment noise abatement approach procedure for use on Boeing 727 aircraft in air carrier service. In a flight simulator, the two-segment approach was studied in detail and a profile and procedures were developed. Equipment adaptable to contemporary avionics and navigation systems was designed and manufactured by Collins Radio Company and was installed and evaluated in B-727-200 aircraft. The equipment, profile, and procedures were evaluated out of revenue service by pilots representing government agencies, airlines, airframe manufacturers, and professional pilot associations. A system was then placed into scheduled airline service for six months during which 555 two-segment approaches were flown at three airports by 55 airline pilots. The system was determined to be safe, easy to fly, and compatible with the airline operational environment.

Schwind, G. K.↗
NASA NTRS1978

An economic model of the manufacturers' aircraft production and airline earnings potential, volume 3

A behavioral explanation of the process of technological change in the U. S. aircraft manufacturing and airline industries is presented. The model indicates the principal factors which influence the aircraft (airframe) manufacturers in researching, developing, constructing and promoting new aircraft technology; and the financial requirements which determine the delivery of new aircraft to the domestic trunk airlines. Following specification and calibration of the model, the types and numbers of new aircraft were estimated historically for each airline's fleet. Examples of possible applications of the model to forecasting an individual airline's future fleet also are provided. The functional form of the model is a composite which was derived from several preceding econometric models developed on the foundations of the economics of innovation, acquisition, and technological change and represents an important contribution to the improved understanding of the economic and financial requirements for aircraft selection and production. The model's primary application will be to forecast the future types and numbers of new aircraft required for each domestic airline's fleet.

Kneafsey, J. T.↗
NASA NTRS2010

Optimizing Air Transportation Service to Metroplex Airports: Analysis Using the Airline Schedule Optimization Model (ASOM) - Par 2

The air transportation system is a significant driver of the U.S. economy, providing safe, affordable, and rapid transportation. During the past three decades airspace and airport capacity has not grown in step with demand for air transportation; the failure to increase capacity at the same rate as the growth in demand results in unreliable service and systemic delay. This report describes the results of an analysis of airline strategic decision-making that affects geographic access, economic access, and airline finances, extending the analysis of these factors using historic data (from Part 1 of the report). The Airline Schedule Optimization Model (ASOM) was used to evaluate how exogenous factors (passenger demand, airline operating costs, and airport capacity limits) affect geographic access (markets-served, scheduled flights, aircraft size), economic access (airfares), airline finances (profit), and air transportation efficiency (aircraft size). This analysis captures the impact of the implementation of airport capacity limits, as well as the effect of increased hedged fuel prices, which serve as a proxy for increased costs per flight that might occur if auctions or congestion pricing are imposed; also incorporated are demand elasticity curves based on historical data that provide information about how passenger demand is affected by airfare changes.

Donoue, George↗
NASA NTRS1972

Concentration of Airline Operations at Individual Airports

It is shown that it is a natural property of air transportation networks for competitive airlines to concentrate their operations at individual airports serving a given market. This implies that a strategy of developing satellite airports is doomed to failure unless the competitives behavior of the airlines is restricted. The results are demonstrated by tracing out the implications of observed patterns of traveller behavior as regards choice of carrier on the optimal game strategy for any particular airline. Analytic results for a two airline, two airport situation are extrapolated to the more general case, and specific supportive evidence from current operations are cited.

Gelerman, W.↗
NASA NTRS1972

The Future of Regulation in the Airline Industry

The Federal regulation of airlines is analyzed to predict the amount of regulation to be expected in the future. It is stated that the regulatory powers will increase because of the advantages that such regulation provides to the airlines. Six propositions are submitted as guidelines for future airlines regulation. The loss of revenue experienced by the airlines is examined and methods for improving the economic situation are defined.

Cherington, P. W.↗