The Southwest effect, airline alliances and revenue management

Shumsky, Robert A.

doi:10.1057/palgrave.rpm.5160024

Cited by 30 publications

(11 citation statements)

References 4 publications

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“…This collection of changes to long-standing aviation practices has resulted in a sharp focus on operation costs. The LCCs healthy financial performance is largely attributed to improved cost savings rather than differences in revenue management practices (Shumsky 2006). The LCCs' impact on altering consumers' price expectations is significant.…”

Section: Low-cost Carriers' Influence Within the Airline Industrymentioning

confidence: 99%

Perceptions of Low-Cost Carriers’ Compliance with EU Legislation on Optional Extras

Barry

Hogan

Torres

2013

Information Systems Development

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Low cost carriers (LCCs) market their flights as low cost and so, aim to garner as much additional revenue as possible from ancillary services such as baggage and priority boarding. The airlines therefore encourage purchase of these services by their customers. As a result of this and other practices by airlines, the European Union has introduced legislation to deal with various areas of concern in order to protect the consumer. Airlines have responded to the legal requirement that all optional extras should only presented to the consumer on an 'opt-in' basis by using 'grey' Web design patterns such as the 'must-opt' presentation of optional extras, whereby the user must choose to accept or reject the item before continuing with the interaction. This study examines user perceptions of the level of compliance of two airlines with the relevant European legislation.

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Section: Low-cost Carriers' Influence Within the Airline Industrymentioning

confidence: 99%

Perceptions of Low-Cost Carriers’ Compliance with EU Legislation on Optional Extras

Barry

Hogan

Torres

2013

Information Systems Development

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“…Among the analyses of low-cost airlines, a common theme emerges: ''the focus on a particular route length (short-haul), itinerary (non-stop flights) and customer type (price-sensitive)'' (Shumsky, 2006). According to de Neufville (2006), ''successful low-cost airlines share two key strategies; they avoid airports with congested airspace, runways, and taxiways and also avoid expensive capital [airport] projects'' that had been favoured by legacy carriers and FSNCs.…”

Section: The Low-cost Carrier Phenomenonmentioning

confidence: 99%

Opaque Web practices among low-cost carriers

Torres

Barry

Hogan

2009

Journal of Air Transport Management

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a b s t r a c tThe low-cost airlines' adoption of Web technologies to facilitate direct sales has accelerated their market penetration. However, some low-cost carriers are increasingly using Websites to create distance between themselves and their consumers in specific areas of their operations, while simultaneously developing excellence in sales transaction completion via self-service. The 'opaque' practices many low-cost carriers employ appear to be intentional design features and are contrary to the ethos of designing a 'good system' to facilitate the full spectrum of customer service. As a result, the low-cost sector has come under increased scrutiny for engaging in unfair practices and violating consumer protection law.

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“…Airlines may announce a new route connecting either international or domestic airports. Due to the generally higher expectations of international travelers, service connecting international airports usually have greater service costs (Aksoy et al, 2003) and also incur highnegotiation costs, because most new international routes have to be operated through international alliances and may involve restrictive air service agreements (Shumsky, 2006). Due to the higher costs of these routes, one would anticipate that the market valuation of an airline offering new international routes would be less sensitive than for one offering new domestic routes.…”

Section: Route Strategymentioning

confidence: 99%

“…Negotiation costs could be high because of ex-ante coordinating and ex-post monitoring costs (Kleymann and Seristö , 2001). Airlines may also lose flexibility of there is a simple and fixed revenue-sharing formula in the alliance agreements (Shumsky, 2006). These factors may impact on share values but just how is unclear.…”

Section: Entry Strategymentioning

confidence: 99%