This thesis expands on the literature in the under-researched field of airline risk management by exploring organisational structures and practices of airline risk management systems and their technical and institutional drivers. In particular, it focuses on the phenomenon of Enterprise Risk Management (ERM) and its alignment to the requirements of airline business contexts. The theoretical framework informing this study combines structural contingency theory with two strands of institutional theory, namely old institutional economics and new institutional sociology. In this thesis, the phenomenon of risk management is investigated in situ as an organisational practice through a two-stage empirical study. Firstly, an exploratory field study was undertaken in a panel of ten international airlines. Secondly, the field study was complemented with findings from two explanatory case studies. This study explains how in developing risk management systems airlines balance the sometimes conflicting technical and institutional demands of their respective task and institutional environments. The adoption and implementation of ERM in airlines are found to be driven primarily by coercive and normative pressures, and expectations of improved organisational effectiveness and efficiency. This study additionally improves general understanding of the nature of ERM and its coupling and fluidity in the organisational settings of airlines. It lends evidence for systematic variations in roles, uses, and organisational design choices of ERM systems. It shows the interdependent nature of airlines’ ERM systems and other management systems. The study also demonstrates that the adoption of ERM in airlines drives development of new institutions, rules, and routines for comprehensive management of risks. Consistent with the tenets of contingency theory, this study conveys lack of a universally appropriate design of an airline ERM system. The main contribution of this thesis is to assess airline risk management systems, identify core drivers of effective risk management practice, and provide a framework with the aim of guiding airlines in the development of enterprise-wide risk management approaches aligned with the requirements of their institutional and technical contexts. Furthermore, this research overcomes the limitations of previous, mostly quantitative studies of ERM coupling and dynamics in organisations, as it explores and explains the structures, practices, and rationales of airline risk management systems within wider organisational contexts through the use of qualitative methodologies.

There exists no predefined framework for aviation policy making and development. While aviation policy planning in most developed countries comes as a result of institutional and industry coordination and is embedded within other national policies addressing the welfare and growth of the country, it is found that in many cases in less developed countries (LDCs), aviation policy planning is often influenced by political pressures and the interests of fund donors. The complexity of this situation in the developing countries results in aviation plans that represent stand alone studies and attempt to find solutions to specific problems rather than comprehensive aviation plans which fit well the country‘s competitiveness profile and are properly coordinated with other national policies for achieving medium and long-term objectives. This study provides a three-stage policy development framework for aviation strategic planning based on situational analysis and performance benchmarking practices in order to assemble policy elements and produce a best-fit aviation strategy. The framework builds on study results that indicate an association between air transport sector performance and aviation policy strategies, arguing that it is not sufficient to simply describe performance but also to be able to assess it and understand how policymakers can use strategic planning tools to affect the air transport industry efficiency levels. This can be achieved by recognizing the level of the country‘s stage of development and working on enhancing the policy elements that produce better output and induce more contributions by aviation to the national economic development and connectivity levels. The proposed aviation policy development framework is systematic and continuous. It helps policymakers in LDC to manage uncertainty in complex situations by allowing them to defend, correct and re-examine the policy actions based on a forward thinking approach which incorporates the contingency elements of the policy and tracks the developments that can affect the odds of its success. The framework‘s elements and its flow of process are explained by providing an illustrative example applied to the Hashemite Kingdom of Jordan.

The environmental impacts of air travel have become more prominent. Governments and environmental groups have increasingly focussed on the effect that air transport has on the environment, and airlines have started to respond to the increasing awareness of their environmental impacts. The aim of this research is to develop an understanding of how leisure air travellers perceive the environmental marketing mix of airlines. Resource-Advantage Theory is used to analyse green marketing in the airline sector. This theory will be extended to the airline sector by establishing green market segments, analysing green brand images among air travellers and evaluating Market-Orientation Strategy. The data for this research stems from a large, quantitative survey conducted at Liverpool John Lennon Airport. Using attitudinal and behavioural variables, five leisure air travel segments are identified. Some market segments perceive certain marketing initiatives as more effective in addressing the environmental impact of air transport than others and are also more likely to take up certain initiatives. Segmenting the market enables airlines to use their green marketing mix in a more targeted way. Many passengers differentiate airlines based on their environmental image. Some airlines are perceived as more environmentally-friendly than others. Yet, the business model does not affect the environmental image, while having flown with an airline has a positive impact on green image in many cases. Green communication is key for airlines, as actual environmental efficiency does not affect the eco-positioning of the airline. Yet it is important that any environmental claims are substantiated, as environmental groups and government regulators might address these otherwise. Three case studies (Virgin Atlantic, easyJet and Flybe) discuss that while all three airlines have applied a green marketing mix, only two (Virgin Atlantic and easyJet) are able to benefit from this in their environmental image. The thesis addresses the importance and relevance of Resource-Advantage Theory in airline marketing research. This theory proves to be an appropriate and necessary underpinning for green airline marketing, an area that has received little attention in theory application. The theory can be used to explain why green marketing segments can be identified in airline leisure markets and why airlines should adopt a green marketing mix to enhance their green brand-equity. These aspects are supported by the data collected and analysed. The research shows that an understanding of passenger perceptions with regard to green marketing is highly relevant for airline marketing managers, in order for them to establish a successful green marketing mix.

Service quality is an integral part of the product/service offering provided to a customer. Along with continuously identifying customer expectations and perceptions about service quality, it is imperative for service providers to also investigate whether the service quality increases customer satisfaction and their behavioural intentions. This PhD study theoretically contributes by evaluating one comprehensive service quality model, SERVQUAL designed by Parasuraman et al. (1988), for its potential applicability. The study further contributes by identifying a gap in the literature that the original SERVQUAL model does not entirely represent LCC service quality therefore, LCCSQUAL is proposed: a revised conceptual model with twenty-five variables that reflect the industry-specific attributes of LCC services in the Middle East. LCCs became a common feature in the West after the appearance of Southwest airline in 1971, however in the Middle East; LCCs are a relatively new phenomenon. LCCs are growing rapidly due to the current development of the aviation industry, deregulation and open skies policies in many parts of the Middle East. Most research to date has focused on LCCs in Western or Asian culture, whereas limited research has been conducted in the Middle East region, hence, this study will focus on highlighting the historical development of the Middle East’s aviation industry and the phenomenal growth of the region’s LCCs. This research is first of its kind in the Middle East to be conducted on the LCC service quality as well as in a new cultural background and therefore, it is important to consider that passengers’ are influenced by their culture while making decisions, however; the original SERVQUAL model developed by Parasuraman et al. in (1985) does not include culture as one of the influences in consumer. This PhD study, therefore, bridges another gap in the knowledge by testing the LCCSQUAL in Middle Eastern culture. This PhD followed a multi methodology using both inductive and deductive approaches consisting of qualitative (interviews and a focus group discussion) and quantitative (a self-administered survey questionnaire) methods at Dubai International airport, which has a dedicated LCC terminal. A total of 540 questionnaires was distributed; however, only 516 were finally employed for quantitative analysis. For qualitative analysis, nine in-depth interviews with senior executives of LCC airlines and seven LCC passenger interviews was conducted along with one focus group interview with seven Emirati ladies, first time LCC travellers. Content analysis and NVivo 10 were utilised for qualitative findings and descriptive analysis, Spearman’s rank correlation, factor analysis and cross tabulation were employed to examine the quantitative results. Comparing the results of both methodologies indicated that, passengers experienced wider gaps in the tangibility, reliability and responsiveness dimensions of LCC service quality in the Middle East. The findings of the study concluded that LCC passengers have higher expectations of the LCC services due to receiving luxury services for a long time in the Middle East region. The revised model; LCCSQUAL was tested in the Middle Eastern culture with additional variables and is recommended to be further developed to be culture and country specific. Factor analysis results also highlighted that there are gaps between the expectations and perceptions of the passengers travelling with LCC. This study concludes with several recommendations to LCC management, such as, on-time performance, well-trained staff and crew members, providing clear information to the passengers and providing quality services with low fares.

The anticipated increase in competition among airports means that there is now a greater need for strategic thinking in the airport business industry. In order to succeed, airport management will have to implement new strategic initiatives and identify their key competitive strengths. While many airports are now more active in following strategic directions, there is some deficiency and inconsistency in the literature in this regard. This research relates the theories of strategic management to the case of airports in order to explore the issue of whether the airport business industry is able to apply the different strategies adopted by other industries in order to achieve growth. The research provides an in-depth analysis into the strategies that Dubai International Airport has pursued. This carefully selected case study involves the collection of qualitative data through conducting semi-structured interviews as a primary source of information. Data collected are applied to different well-known business tools including the PESTEL Analysis, the Five Forces Model and the Resource-based View (RBV) of the firm. The research found that there are some strategic differences between the airport industry and other industries. While it is possible for airports to adopt certain strategies, some strategic theories are not very practicable for airports. While Dubai International Airport is not considered very different from other airports, there are some differentiated characteristics in its ownership and management that led it to outperform its rivals. The research proposes that there are a number of key success factors derived from four core areas that led Dubai International Airport to obtain strategic strengths over other airports. These four areas include: General Condition, Competitive Situation, Resource Acquisition and Strategic Direction. These areas are also classified as No Control, Least Control, Some Control and Most Control, respectively. This thesis contributes to the development of a best practice conceptual model that can help airport managers understand and improve their key competitive strengths and success factors.

Since the end of World War II, the service sector has expanded to encompass over 80% of the economy of most developed nations. This places an immense importance on the ability to accurately measure service outputs. However, the most precise method of measuring these outputs is still unclear. This thesis examines Service Quality as a measurement of service outputs, and tests this within an industry-specific context: the low-cost sector of the UK airline industry. This is an industry that has been facing serious challenges since market liberalisation began in 1976. This thesis recognises that offering superior quality may allow airlines to gain a competitive advantage; despite this, there is still no preferred method of measuring Service Quality in this specific context. This PhD therefore examines three methods of Service Quality measurement in the context of the low-cost sector of the UK airline industry: a qualitative method (content analysis), a quantitative survey approach (HiQUAL) and an indexing approach (ALSI). The first study provides an in-depth analysis of the determinants of airline quality through a content analysis study. The second study uses a neglected measurement of Service Quality (HiQUAL) to take a quantitative measurement of Service Quality in the low-cost airline industry. The third study uses measurement (ALSI), an indexing approach, to provide an indication of airline quality. The results of this PhD define the determinants of Service Quality in the low-cost airline industry and confirm the hierarchical nature of Service Quality. This PhD also develops a novel objective metric that represents a shift in ontology from subjective to objective measurements of Service Quality.

This research explores the interactions of people across cultures. It looks into how cultural distinctiveness and cultural characteristics may serve as a strategic resource for organisations. The research investigates whether the sustained success of South East Asian Airlines in achieving high levels of customer satisfaction is influenced by the application of distinctive cultural traditions and values in the delivery of customer service. Given that this service is delivered by a predominantly female workforce, the research explores cabin crew behaviours and values in relation to assumptions about gender roles that are found within the airline industry generally and South-East Asian cultures specifically. The research is based on a case study of one company, Thai Airways. A triangulated methodology was applied, using a mixture of company documentation, observations and semi-structured interviews. The research aims to inform our understanding of the service interface in a cross-cultural airline environment. Of particular emphasis in this study is the connection between spiritual, cultural values and traditional gender roles within Thai society, which has an impact on the relationship between passengers and cabin crew. The thesis illustrates how the understanding of the relationship between national cultures and individual characteristics can be refined through the use of a conceptual framework. The findings imply that traditional Thai cultural values underpinned by Buddhist spirituality play a part in shaping the way cabin crew think about their work. These influences help them to respond positively to company policy, which in turn can help to achieve Thai Airways’ corporate goals. This synergy between company policy, national culture and spirituality may shape the quality of the service and help to create customer satisfaction. The findings demonstrate that there is a relationship between the satisfaction of basic Thai female needs and work-life balance. Thai cabin crews who work in a female environment tend to balance their career, finances and family so that these needs are met.

Today, airports form a key part of global infrastructure in an increasingly globalised world. There is great competition between them to attract passengers and serve airlines in their role of transporting people regionally and internationally. Abu Dhabi International Airport is one such airport. Terminal 3 is the home of Abu Dhabi’s major carrier, Etihad Airways, one of the world’s fastest-growing international airlines. The research described in this thesis focuses on applying the Lean methodology to the passenger departure process in Terminal 3. The essential essence of ‘Lean’ is doing more with fewer resources by adopting a programme of continuous process improvement resulting in continually declining costs, mistakes and work-in-progress. The special environment of any airport, especially a major international hub made applying Lean principles difficult. This resulted from the large presence of Class I wastes or muda which could potentially change, perhaps dramatically, at short notice. This made this research significantly different from previous applications of Lean philosophy. Also, large, cumulative variations in demand set in an environment where rapid expansion of the airport is taking place also created major difficulties because of the shifting flow of passengers. Despite this, the research succeeded in achieving its aim and developed various rules from parameters based on the acronym SERVICE and an associated implementation methodology based on the Lean philosophy. Together these will help airline managers and staff to eliminate the waste of available resources and so increase passenger flow through various stages of the process in line with Lean philosophy. The research makes several important contributions to knowledge, especially in the field of Lean improvements. The contribution of this work arises from its systematic examination of the passenger departure process. The research has facilitated developing a detailed model which addresses both particular process groups and the effects of passenger class on the allocation and use of resources. This research has shown that large differences exist between the operating environment of a major international airport and those processes to which Lean principles have previously been applied. Nevertheless, despite these differences, this research has proved the Lean philosophy may be usefully applied to airport operations. Operating conditions within the passenger departure process mean that understanding the special operating environment of airports is vital. This research resulted in a discrete event simulation model of the airport much more accurate and detailed than those described in previous studies of passenger departure processes. The research then proved an improved model, which may be used experimentally to support conclusions reached from the broader application of Lean philosophy. The research observed and analysed the effects of large and cumulative peaks and troughs in demand against a background of rapid development of Abu Dhabi Airport. The researcher also evaluated the special internal and external effects on the processes, often at short notice. Consequently, there is no single ‘universal’ solution because of the major need for operational flexibility and for a close correlation between operational and strategic need. Despite these many difficulties the results of this research are a practical and straightforward series of improvements, which may be applied by airport staff themselves without need for complex computer models, simulation or dedicated experts. This will create conditions for continuously improving process performance during the passenger departure process. It will also help managers accurately identify critical areas where more radical action of increasing physical resources is needed. Finally, based on findings, the research makes several recommendations for further work.

The evolution of the airport business is demonstrated by airports that are adopting new business strategies and commercial models, which allow them to be, for example, service providers instead of real-estate managers, with the focus on cost reduction and increasing non-aeronautical (commercial) revenues. Information technology (IT) can be used by airports to achieve their business goals, such as enhancing performance by delivering cost reductions and generating additional revenue streams. Airports operate in an increasingly competitive and dynamic market, with the aim of attracting a larger share of hub traffic from neighbouring airports. Therefore, financial and operational performance will be key elements for airlines when choosing a new airport destination. The research shows that airports are more focused on passenger satisfaction, resulting in airport performance indicators that have the passenger at its operational core and performance targets (e.g. Airport Service Quality passenger satisfaction survey). IT plays an important role in increasing airport performance through the automation of processes such as the deployment of common-use check-in desks and self-service check-in kiosks. Studies of other industries have shown evidence that IT impacts firm performance, but there have been few studies related to the airport industry. Thus, the aim of this research is to assess the relationship between IT and airport performance, and it proposes a conceptual framework to assess the relationship between IT and airport performance by drawing from studies in other industries. Two methodologies were used in this research, the first one was the case study, and the second one was the online survey. The case studies consisted of 16 faceto- face interviews with senior staff representing two airports in Asia, one airport in Australia, and one airport in Europe. The case studies result show that there is a relationship between IT and airport performance ... [cont.].

The concept of a hub airport has evolved widening its scope as a national civil aviation policy-making tool, due to the ability to deliver wider socio-economic benefits to a country. However, not all airports can be converted into hubs. This research proposes a methodological approach to structural analysis of the airport industry, that could be applied to determine the competitive position of an airport in a given aviation network and devise airport strategies and national policy measures to improve the current position of the airport. This study presents a twelve-group taxonomy of airports, which analyses the changing geography of the airport industry in the East (Asia and The Middle East). Multivariate data have been used in a two-step Agglomerative Hierarchical Clustering exercise which represents three airport strategies: namely, degree-of-airport-activity (size and intensity of operations), network strategies (international and domestic hub), and the market segmentation strategies (service and destination orientation). Principal Component Analysis has been utilised as a data reduction tool. The study confirms the general hypothesis that a sound macro environment and liberalised approach to economic regulation in the air transport industry are important for successful hub operations. In addition, it sheds light on the fact that while the factors of geographical advantage, economic development, urbanisation, tourism and business attractiveness, physical and intellectual infrastructure, and political and administrative frameworks, are all basic prerequisites (qualifiers) for successful hubbing in the region, those factors would not necessarily guarantee a hub status unless the governments are also committed to develop the sector and take timely decisions (differentiators) to allow airports to benefit from the first mover advantage. Application of the proposed taxonomy was tested on a case study of the major international airport of Sri Lanka, to provide policy inputs to develop the airport that is currently identified as being overshadowed by the mega hubs in the region.