<!--[if gte mso 10]> <mce:style><! /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Normale Tabelle"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} > <! [endif] > This paper focuses on the pricing strategies of international airlines, being the key factor to match the supply with demand and accomplish market equilibrium. The aim of study is to find a pattern of how pricing takes place, if and how airlines implement market segmentation and take demand-related elasticities into account. We specialize on the Scandinavian Airline System (SAS) and German Lufthansa. Their flight prices were collected as primary data from the corresponding websites. We observed the following air travel services: Long-haul international, short-haul international and short-haul domestic; additionally, we differentiated price levels by the time of booking. Based on our findings we can say that the market segmentation model provides a good base for airlines. However, it has to be accompanied by additional strategies to react to arising problems (peak problem, currency fluctuation, etc). The patterns we found implemented by SAS and Lufthansa represent a firm market-responsive approach to the problems in the airline industry. < >< ><-->

Vi ville med vår uppsats undersöka om strategiska allianser inom den internationella flygbranschen har lett till att medlemmarna i alliansen åtnjutit en förbättrad lönsamhet och expansion i verksamheten. Den alliansen vi hade fokus på för undersökningen var Star Alliance och vi granskade utvecklingen av de utvalda lönsamhetsmåtten hos de fem flygbolagen som var med och upprättade denna allians. Vi undersökte även lönsamhetsfaktorerna för fyra flygbolag, som för den studerade tidsperioden inte ingick i någon strategisk allians. Dessa användes som jämförelseobjekt. Urvalet gjordes utifrån att det var just dessa fem flygbolag som upprättade alliansen och att denna allians var den första av sitt slag. Urvalet av de fyra jämförelsebolagen gjordes utifrån att dessa var de få flygbolag av den traditionella typen som under studiens utvalda tidsperiod inte ingick i någon liknande allians. Vi genomförde undersökningen genom att samla information hämtad ifrån flygbolagens årsredovisningar från 1994 till 2004 och försökte upptäcka trendbrott i nyckeltalens utvecklingar efter det att Star Alliance upprättades. För att förstärka tillförlitligheten av undersökningen använde vi de fyra jämförelseflygbolagen och genomförde en statistisk hypotesprövning för att testa om det förelåg någon signifikant skillnad gällande utvecklingen av lönsamhetsfaktorerna mellan bolagen i Star Alliance och jämförelsebolagen. Resultatet av vår undersökning var att ingen tydlig lönsamhetsförbättring skett för bolagen inom Star Alliance. Vi kunde urskilja att jämförelsebolagen vi använt i undersökningen hade en liknande utveckling av de utvalda lönsamhetsfaktorerna. Eftersom ingen skillnad fanns mellan bolagen i alliansen och de utanför kan man dra slutsatsen att samarbetet inom Star Alliance inte förbättrat lönsamheten för medlemmarna mer än för bolag som inte ingår i någon allians. / The main purpose with our survey was to analyze if strategic alliances within the international airline business have led to increased profitability and strengthened the competitive advantage for the members of the alliance. For our study we focused on Star Alliance and analyzed the development of the selected profitability indicators for the five members that founded it. We also analyzed the same indicators for four airlines that for the time period of the investigation were not members of a strategic alliance. These four airlines were used for purpose of comparison. Our selection was made on the basis that there were these five airlines that founded the alliance and that Star Alliance was the first of its kind. The selection of the four airlines of comparison was made on the basis that these four airlines, for the studied time period, were not members of a strategic alliance. We made the study by collecting information from the airlines annual reports for the years 1994 to 2004 and tried to discover any kind of differences for the time before and after the alliance was founded. To increase the credibility of the study we made a statistic hypothesis test to detect if there were any significant differences, regarding the profitability indicators and the competitive advantages, between the airlines within Star Alliance and the airlines of comparison. The result of our study was that no legible improvement could be proven for the airlines that founded Star Alliance. We could detect that the comparison airlines we used for the survey had a similar development regarding the chosen profitability indicators and the competitive advantages. When no differences could be proven between these airlines, we drew the conclusion that the members in Star Alliance had not improved the studied indicators, to any greater extent than the airlines that were not members of a strategic alliance.

The purpose of this study was to determine what the critical factors are to an airline’s financial turmoil, leading ultimately to a bankruptcy filing. Over the past decade, the airline industries’ performance has been dismal, leading to 20 bankruptcy filings. As competition increases, it is crucial for airlines to know which core business areas are essential to success. This paper identifies 8 specific industry metrics that are used to compare airlines, revealing where certain airlines falter and others shine. Some of these metrics are later applied to a case study examining Trans World Airlines (TWA) and American Airlines (AA), highlighting the factors leading to TWA’s bankruptcy filing during the same time period American Airlines remained profitable. The results show that the labor inefficiency, operating inefficiencies, unsuccessful fuel hedging programs, and high long-term debt are critical factors leading to an airlines bankruptcy. Four recommendations for airlines are provided, namely: 1.) The cross-utilization of employees, 2.) Maintain Cost Discipline, 3.) Focus on Breakeven Load Factor, and 4.) Do not neglect the intangibles such as brand reputation.

Background:              The environmental impacts of tourism have recently become a high-profile topic due to the increasing amount of attention devoted to issues such as climate change. The harmful effects of aviation, in particular, have led airline companies to adopt proactive sustainability agendas. In light of this, this study seeks to explore the extent of environmental awareness amongst consumers as well as the effects that corporate sustainability measures have on the decision-making process of air travelers. Purpose:                     The purpose of this thesis is to determine whether or not consumers value environmental responsibility within the airline industry and to determine the factors that influence the consumer decision-making process. Method:                      This thesis utilizes a mixed-method approach, with both quantitative and qualitative methods employed. Quantitative data was collected through a survey distributed online and to travelers at Göteborg Landvetter airport, with a total of 95 respondents. Additionally, an in-depth interview was conducted with Stefan Gössling, a prominent researcher within the field of tourism. Findings:                    The results of this thesis reveal relatively low awareness amongst consumers with regard to the environmental actions of airlines. Although consumers appear to have a general knowledge of the negative impacts of air travel, they are reluctant to alter their own flying behavior. Additionally, the results of the survey reveal that consumers are not yet familiar with the concept of eco-friendly flights or the sustainable options that are available to them when purchasing flight tickets.  Ultimately, when buying from airline companies, consumers place greater emphasis on other factors such as costs, services and the availability of desired routes.

This dissertation investigates the effect of market concentration on nonlinear pricing strategies in the airline industry. The study develops a theoretical nonlinear pricing model with both discrete product and consumer types to derive testable implications about the impact of market concentration on the structure of relative prices within a menu of prices. The analysis then uses a unique, airline ticket level data set to test the model predictions. The data set consists of a representative sample of airline tickets purchased between June and December 2004 from one major Computer Reservation System (CRS), for travel in the fourth quarter of the same year. The study restricts attention to 246 domestic routes in the United States, resulting in 878,169 tickets. This unique data set allows us to examine the effect of market structure conditions on relative prices within a menu of fare types with restrictive ticket characteristics. The analysis also contributes to the understanding of how the level of competition in a market affects the dispersion of airline prices. The results indicate that market concentration differentially impacts high versus low priced fares, as predicted by the theoretical model. More specifically, there is a decrease in the ratio of high- to low-quality fares as markets become more concentrated, after controlling for numerous factors that may affect prices through costs and market characteristics. The ratio of medium- to low-quality fares, however, increases with less competition. From a welfare perspective, it is interesting to observe that not all travelers are affected in the same way by a decrease in the level of competition. Business travelers, who purchase high priced fares, end up paying relatively lower prices in more concentrated markets while leisure travelers pay more.

Pricing strategies (e.g. yield management) in the tourism industry, known as non-transparent pricing, have raised fairness issues, and more recently, new pricing schemes in the airline industry have been controversial issues in terms of price fairness. Nonetheless, few tourism researchers have studied price fairness from a consumer perspective. Thus, an understanding of the cognitive processes associated with perceived price fairness could have far-reaching implications for tourist behavior research. The purpose of this study was to examine the antecedents and consequences of tourists‟ perceived price fairness of the ancillary revenue (i.e. extra fees of airlines). In particular, a conceptual model was based on Weiner's (1980) attribution theory, which was expected to complement shortcomings of the traditional dual entitlement principle (Kahneman, Knetsch, and Thaler, 1986). Following the study purpose, four objectives of the study were established: (1) to examine the dimensionality of price fairness in a price change context; (2) to examine the antecedents of price fairness; (3) to examine the consequences of price fairness; and (4) to compare differences in the price fairness model between high and low price sensitivity groups. To achieve the study objectives, this study developed a conceptual model of price fairness with three antecedents (price comparison, cognitive attribution, and emotional response) and four consequences (behavioral loyalty, willingness to pay, complaining, and revenge), and determined the model that best predicted the hypothesized model using Structural Equation Modeling. Data were collected from an online survey and the respondents (n=524) were leisure travel passengers in the United States who had taken domestic flights in the past 12 months. The initial model fit the data well from a global perspective, yet, some hypotheses were not supported. Results suggested that price comparison evaluation and cognitive attribution are antecedents to price fairness, but emotional response was found to be influenced by price fairness as opposed to what was hypothesized. It was also revealed that while price fairness directly influenced favorable behavioral intentions (e.g. behavioral loyalty and willingness to pay more), it also influenced unfavorable behavioral intentions (e.g. revenge and complaining behavior), mediated by negative emotional response. The revised model was alternatively proposed. In addition, significant differences in price fairness, emotional response, willingness to pay more, and revenge intention between high and low price sensitivity groups were found. Results of this study provide potentially important direction for the development of a theoretical framework for the conceptualization of antecedents and consequences of price fairness in a tourism context. It is further expected that findings of this study from an attributional perspective provide managerial guidance for the utilization of marketing strategy when a company encounters inevitable price increases or extra fees.

The effect of liberalization and the great improvement of the internet using caused a huge impact in global airline industry which has brought more opportunities to airline¡¦s company but fallow with keen competition. Using China Airlines as research object by using a detailed case study method to analyze its changing of resources to achieve competitive advantage since the rapid changing of the environment and understand how China Airlines changes its worse resource become a superior resource to gain competitive advantage. Airlines firm resources can be conveniently classified into four categories: physical asset, intangible asset, human capital resources and orginazation capabilities. After the analyzing, this study found that firstly, after China Airlines no more a monopoly, its core resources turned into a weak resources comparing with competitor. Second, airlines industry¡¦s resources indeed changed or adjusted due to the changing of the environment. Third, the resources of airlines industry can be imitable and substitutabile easily. Therefore, human resource can be the most potential resource which establishes sustainable competitive advantage and make differentiation. Forth, all the resources of the airline¡¦s company are core resources however one resource itself is impossible to achieve sustainable competitive advantage, only the fit and the connection of the resources can become sustainable competitive advantage. Finally, unique history conditions help airline industry to gain more resources and become more advantage than competitor. Key words: Resource, Competitive advantage, Sustainable competitive advantage, Airline industry

Abstract In stock-exchanged airline mergers, the determination of an exchange ratio is an important issue. The purpose of this paper is providing a simulative study of exchange ratio determination for airline merger in Taiwan. The paper is based on the Larson-Gonedes merger exchange ratio model(1969) and extends it to consider marker risk. In addition, we use the exponential smoothing model to estimate the expected post-merger price-earnings ratio. Our sample consists of China Airlines and EVA Airways. We find that the L-G model indicates the interval of exchange ratios which will enhance, or at last not cause any diminution in the wealth positions of all parties to a proposed airline merger. Also, the bargaining area offers some information to help merger candidates to negotiate final actual exchange ratio.

Thesis (Ph. D.)--Oregon State University, 2009. / Printout. Includes bibliographical references. Also available on the World Wide Web.

Airports are places where people have the potential to experience either satisfaction or frustration, and marketing and tourism scholars have argued that customer satisfaction is one of the primary goals of airports. However, few studies have systemically analyzed the service quality and efficiency of airports, or examined customer satisfaction with airport facilities. While airline passengers' expectations of airport service quality have been examined, there are few studies focusing on both their expectations and desires regarding airport services. Furthermore, to the best of our knowledge, no available studies have analyzed passengers' expectations and desires on the basis of the desires congruency model. This study attempted to define tourists' desires and expectations congruency as well as their satisfaction with their entire airport experiences. A total of 262 airline passengers in Incheon International Airport and Los Angeles International Airport participated in the study. Six hypotheses were tested with data collected from a survey of the airline passengers with the use of descriptive statistics and structural equation modeling. Most relationships among latent variables were found to be in accordance with previous studies. Furthermore, the results of the current study implied that the desires congruency model could be applied to the satisfaction formation of airline passengers. Practical recommendations are presented for the airport managers to enhance airport services.