Evolution of the intellectual structure of research on pricing strategy of low cost carriers

Costantino, Francesco; Gravio, Giulio Di; Nonino, Fabio; Patriarca, Riccardo

doi:10.1016/j.rtbm.2016.07.005

Cited by 12 publications

(7 citation statements)

References 149 publications

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“…The LCC pricing strategies have been extensively analyzed due to the high impact they have caused on the transport industry, modifying behavior of main stakeholders such as customers and competitors (Costantino, Di Gravio, Nonino & Patriarca, 2016). Apart from analyzing price dynamics, the authors in that study also identify the dependence on regulation and the evolution of business models as the main topics that have been addressed within the literature.…”

Section: Finance and Marketingmentioning

confidence: 99%

Artificial Intelligence potential within airlines: a review on how AI can enhance strategic decision-making in times of COVID-19

Pérez-Campuzano

Ortega

Andrada

et al. 2021

J. airl. airpt. manag.

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Purpose: Airline strategy relies on the competitive environment analysis and the management of resources. Artificial Intelligence (AI) algorithms are being increasingly deployed throughout several industries. COVID-19 has further stressed a sector where firms have historically struggled to sustain profitability.The purpose is to explore the potential of AI applications regarding strategic decision-making in airlines in times of crisis and to depict a roadmap to encourage scholars and practitioners to jointly implement these tools within corporations.Design/methodology/approach: This study firstly reviews the state-of-the-art regarding transport organization trends with focus on airline strategy and finance as well as AI tools, supported by the collaboration of a former airline digitalization strategist. Secondly, the potential of the latter to be applied in those functions is analyzed, considering different Machine Learning (ML) methods and algorithms.Findings: Some applications or pathways are identified as of particular interest for the airlines’ strategic decision-making process. Most of them are based on ML algorithms and training methods that are currently underused or disregarded in certain business areas, such as Neural Network models for unsupervised market analysis or supervised cost estimation.Research limitations/implications: Focus is on airline strategy and finance, keeping engineering or operational applications out of the scope.Practical implications: Proposed guidance may promote the deployment of AI tools which currently lack practical implementation in certain business areas.Social implications: Showcased guidance may revert into a closer collaboration between business and academia.Originality/value: Comprehensive review of current airlines’ strategic levers and identification of promising AI pathways to be further explored.

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Section: Finance and Marketingmentioning

confidence: 99%

Artificial Intelligence potential within airlines: a review on how AI can enhance strategic decision-making in times of COVID-19

Pérez-Campuzano

Ortega

Andrada

et al. 2021

J. airl. airpt. manag.

View full text Add to dashboard Cite

show abstract

“…Graham, 1998;Fragoudaki, 2000;Fu, Oum, and Zhang, 2010;Gudmundsson, 2011) and led to the introduction of new business models to the market (ICAO 2016b). These new business models targeted new challenges and demands of the market such as the early 2000s recession (Franke & John 2011) and started to cope with new terms such as clients´ price sensitivity, more frequency and connectivity needs, market volume growth, interlaced networks and enhanced services (Costantino et al 2016). …”

Section: Low-cost Carriersmentioning

confidence: 99%

“…The competitive advantage of LCC business plan is in their cost structure, which enables them to reflect more effectively to the market dynamic environment and allow them to reduce their costs and offer flights to the routs with lower density which are not possible for network carriers (J. G. de Wit and Zuidberg, 2012;Costantino et al, 2016).…”

Section: Low-cost Carriersmentioning

confidence: 99%

“…(C. a. Piga and Filippi, 2002;Vidović, Steiner, and Babić, 2006;European Parliament, 2007;Costantino et al, 2016). All the mentioned features can finally result in about 40% lower operation costs in comparison with the network airlines (Vidović et al 2006).…”

Section: Low-cost Carriersmentioning

confidence: 99%

“…It was in the mid1990s when this phenomenon was ultimately implemented in Europe and some other countries. LCCs became more popular, with the birth of Ryanair in 1992 and EasyJet in 1995 (Costantino et al 2016). The major success of low-cost carriers is seen in shorthaul routes where significantly have been impacted by the introduction of LCCs (Bhadra, 2003;Whyte and Lohmann, 2015).…”

Section: Low-cost Carriersmentioning

confidence: 99%

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Analysis of evolution of commercial air traffic CO2 emissions in the European Union

Aminzadeh¹

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The environmental sustainability of the air transport industry, as a key player in global social and economic development, has become a major issue in the agenda of the industry´s stakeholders during the past decade. On both international and local levels, policy makers, scientists and environmentalists, manufacturers and airlines have begun to collaborate on fuel efficiency improvements and greenhouse gas emissions reductions in the sector.This dissertation evaluates the structure and distribution of air traffic in European Union member states. The data presented here has been extracted from the statistical office of the European Union (Eurostat) and databases compiled by the The European Organization for the Safety of Air Navigation (EUROCONTROL). The focus of this study is on commercial air traffic and CO2 emissions in the European Union in 2010 and its evolution through 2013.The extracted data for all EU countries consist of variables such as: number of flights, number of passengers, freight tonnes, revenue passenger kilometers (RPKs) and revenue tonne kilometers (RTKs), fuel consumption and CO2 emissions. The majority of EU air transport traffic is concentrated in six countries: France, Germany, Italy, The Netherlands, Spain and The United Kingdom, which in 2010 represented approximately two thirds of the total EU flights. The data is then segmented per distance bands, at intervals of 500 km to see the concentration of traffic in different distance bands and compare their share with other modes of transport. The fuel efficiency trend in the six largest EU aviation markets from 2010 to 2013 is analyzed and the potential reasons for the changes are investigated. The evolution in the airline fleet composition during the last decade is presented as one of the reasons for the improvement in fuel efficiency, measured by fuel efficiency parameter measuring fuel consumption per RTK (passengers + freight). Additionally, the differences in terms of fuel efficiency among the various airline business models (network carriers, low cost carriers, etc.) and aircraft types are studied. Moreover, future CO2 emissions are projected, taking into consideration three different traffic growth and efficiency improvement scenarios.The results of this analysis indicate a slight reduction in the traffic, both for passengers and freight about (-0.8%) but more importantly, a reduction in CO2 emissions (-4.3%), which is the result of an improvement in fuel efficiency parameters (-3.5%) during these three years. There has been a relevant change in the fleet composition in the last ten years, with the replacement of older models for more efficient ones, and a shift to larger aircraft, particularly in the regional segment. Traffic has decreased in shorter distances (internal EU traffic), but increased in more efficient long-range flights (extra-EU traffic), resulting also in an improvement in the efficiency parameters as average aircraft size and stage length increases. This investigation concludes that technological efficiency in...

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The intellectual structure of the journal Business Strategy and the Environment: A 25‐year author cocitation analysis

Kabongo

2019

Bus Strat Env

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This article presents the intellectual structure and 25‐year author cocitation analysis of the journal Business Strategy and the Environment. The findings show that Business Strategy and the Environment is an emerging, well‐established journal in its field. The journal needs a core set of authors who are actively engaged in the production and certification of knowledge; further, it consists of a number of loosely linked research team contributors, each with its own areas of interest. The existence of these research teams is a sign of strength that characterizes the journal as it strives to foster a community of unified scholars whose published works advance our understanding of business strategic decisions and behavior with regard to the natural environment. This study is useful for contributors, readers, and editorial board members who form the journal's community of knowledge creation and certification.

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Evolution of the intellectual structure of research on pricing strategy of low cost carriers

Cited by 12 publications

References 149 publications

Artificial Intelligence potential within airlines: a review on how AI can enhance strategic decision-making in times of COVID-19

Artificial Intelligence potential within airlines: a review on how AI can enhance strategic decision-making in times of COVID-19

Analysis of evolution of commercial air traffic CO2 emissions in the European Union

The intellectual structure of the journal Business Strategy and the Environment: A 25‐year author cocitation analysis

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