The state of air transport markets and the airline industry after the great recession

Why does the airline industry over-invest?

“…Only in the most severely affected markets has there been a moderate cut in capacity, for example aircraft-seats of the US airline passenger fleet have declined by 1.4% per year between 2001 and 2008. Even during the Great Recession in 2009, the aircraft fleet worldwide expanded by 1% (Pearce, 2010), so the industry is adjusting to recessions not by shedding capacity but by underutilizing a still growing fleet.…”

Time-Dependence in Multi-Agent MDP Applied to Gate Assignment Problem

“…This is resulting from the increase of air transport traffic [1]. The main objectives are best allocation and management of airport and airline resources in the best way effectively and efficiently.…”

Austerity HRM practices, work deterioration and possible recovery policies: A cross-European survey in the airport workplace

“…All this cost-minimization frenzy in the aviation market was exacerbated by the fiscal consolidation policies imposed on the less developed, crisis-hit European economies and had several implications on working conditions. Several studies (Essenberg, 2002; Harvey and Turnbull, 2009; Pearce, 2012; Turnbull et al, 2004; Whitelegg, 2003) conclude that despite the given significance of human resources as the most important asset in the aviation business, labour costs constitute a large proportion of the industry’s operational expenditure and are the first target of cost-reducing policies in times of crisis, whatever the cause. Both airlines and airports are constantly seeking ways to reduce labour costs and intensify labour use (Blyton et al, 2003).…”