published_or_final_version / Business Administration / Master / Master of Business Administration

published_or_final_version / Transport Studies / Master / Master of Arts

published_or_final_version / Environmental Management / Master / Master of Science in Environmental Management

The airline industry is a major user of jet fuel and this constitutes a large component of the operating costs and is a risk coefficient for airlines. Several studies have been conducted on how oil price volatility affect stock prices and cash flows as well as how, in general, firms that uses derivatives experience lower stock returns volatility and stock s .The impact of oil price volatility on airline stock s and the impact of hedging on airline stock s have not been adequately examined, this paper fills this gap. By gathering daily frequency of oil spot prices to access the quarterly oil price volatility and stock s from 16 European airlines, we correlate quarterly oil price volatility to quarterly airline stock s as well as stock s and hedging percentages between 2010-2015, we reject the hypothesis that oil price volatility has an impact on airline stock s and that hedging reduces stock s. These findings therefore suggest that oil price volatility do not have a large impact on systematic risks or that hedging offset systematic risks. The findings are of interest to investors who want to make well informed investment decisions based on non-diversifiable equity risk since it has become popular for management recently to implement hedging policies to signal competency in risk management in order to attract investments.

This study examined consumer attitude towards adding branded quick-service items on domestic airline in-flight menus with the aim of assessing the variables of perceived customer value and customer satisfaction. A random sample of one hundred sixteen frequent flyers residing in the United States participated in the study. An examination of consumer attitude towards branded quick-service menu items if introduced on domestic in-flight menus was performed. Multiple regression analysis was used to determine which of the four relationships was the most significant. The results showed that frequent flyer satisfaction with branded quick-service food items had the most significant relationship with perceived satisfaction of adding branded quick-service foods to coach class in-flight meal service.

This thesis describes the process of integration between airlines and its positive and negative impacts on customers. It deals with characteristic features of individual forms of integration with the greatest attention paid to alliances and mergers. With respect to the fact that the passenger's choice of airline is to a large extent influenced by the price of the ticket, an empirical model is introduced to explore the impact of the membership in one of the global alliances on the final price of the long-haul tickets. Besides, the attention is paid to the nature and diversification of services provided. In the next section the thesis deals with the upcoming merger between British Airways and Iberia, its preconditions, form of the new company and identification of the potential risk factors that could have a negative impact on the company.

In what ways do companies within an industry converge? We address this by combining theory on competitive strategy and supply chain strategy to understand how companies can be differentiated in these dimensions. As competitive strategies are affected by internal and external factors, these affect strategy design and resource management of a company in order to remain competitive. Convergence occurs when an industry matures, and several regulatory or non-regulatory norms arise that firms move toward and, in the process, become more similar. Through developing a framework that addresses intra-industry convergence and taking the case of the European airline industry, we aim to demonstrate the application of using competitive strategy and supply chain strategy analyses to analyze and evaluate intra-industry convergence through a standardized model.

Thesis (DTech (Tourism and Hospitality Management))--Cape Peninsula University of Technology, 2018. / The airline industry is structurally challenged by its very nature, facing high fixed costs, cyclical demand, intense competition and vulnerability to external shocks. This is exacerbated further by other endogeneous and exogeneous challenges in the operating environment, which make it difficult to operate airlines successfully. Consequently, structural, endogeneous and exogeneous challenges produce thin profit margins for airlines, thereby prompting airline managers to identify critical success factors to these challenges. However, operating airlines in southern Africa has proved to be fraught with difficulties resulting in several airlines terminating their services after short periods of operation, thereby disrupting travellers. The purpose of this research is to identify critical success factors to overcome challenges facing airlines in the region. A mixed-methods research design and an extensive literature review on critical success factors for airlines was employed, followed by several interviews with key personnel at eight southern African airlines. Purposive sampling was used to collect data from 54 respondents from eight different airlines. From the study, it is clear that the ability for airlines to survive financially is seriously threatened by organisational, industry, and environmental success factors. Within the organisation management inefficiency, labour inefficiency, use of aged fleets and management turnover significantly affected negatively the performances of state carriers, whilst alliances and the use of a standardised fleet significantly affected positively the performances of private airlines. The following environmental success factors namely, political, economic and technological factors, significantly affected negatively the performances of all airlines. Furthermore, national airlines received preferential treatment, which often distorted any prospect of a level playing field, thereby preventing privately owned carriers from competing effectively. The following industry success factors namely, rivalry amongst existing competitors, the bargaining power of suppliers and the bargaining power of customers significantly affected negatively the performances of airlines. As such, the following industry success factors were identified, namely the low threat of substitutes and new entrants, which are not enough to mitigate intense rivalry and the high bargaining power of customers and suppliers. Several suppliers can squeeze airlines, and even though the threat of new entrants is low, wherever there is potential, there will be new entrants, creating overcapacity and reducing yields. Consequently, to overcome challenges in the region the following organisational success factors were identified, namely management efficiency, the use of a modern fleet, fuel efficiency, labour efficiency, alliances, aircraft choice and customer satisfaction.

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.

Thesis. 1977. M.S.--Massachusetts Institute of Technology. Dept. of Aeronautics and Astronautics. / MICROFICHE COPY AVAILABLE IN ARCHIVES AND AERONAUTICS. / Bibliography: leaves 178-180. / by Robert Wellesley Mann, Jr. / M.S.