A Review of the Airline Industry
This chapter provides an overview of the key issues in the passenger airline industry, in particular its current status and the challenges it faces in going forward. The air transportation industry is faced with the many global issues such as the cost bur
- PDF / 403,360 Bytes
- 23 Pages / 439.37 x 666.142 pts Page_size
- 99 Downloads / 206 Views
A Review of the Airline Industry
Abstract This chapter provides an overview of the key issues in the passenger airline industry, in particular its current status and the challenges it faces in going forward. The air transportation industry is faced with the many global issues such as the cost burden from the fuel price fluctuations, epidemics, global economic downturn, environmental issues, and tightened regulations. We have briefly introduced these issues here to provide a context for the remaining parts of the manuscript. Keywords Stochastic frontier functions industry
3.1
Performance Productivity Airline
Terms Related to Air Transportation1
The areas covered in the remaining chapters are mainly related to the passenger services of the airline industry. To enable a better understanding, we first introduce here the terms and scope defined by the “Statistics of International Trade in Services 2010” published by the UN. “Air transport covers all international freight and passenger transport services provided by aircraft” (UN 2010).
Most of the technical terms and definition covered in this chapter are summarized without any major alteration from the publications of IATA, ICAO, UK Department for Transport, United States Department of Transportation, and WTO. In addition to these official reports, some parts of this chapter, in particular the key drivers of the airline economy, have been summarized from both IATA and “The Global Airline Industry” (Belobaba et al. 2009), which has been widely used as the formal guideline for the airline industry’s study. In the case of issues related to airline liberalization and freedom of the skies, from the WTO and IATA manual has been quoted without any alteration. 1
For the details on the terms used in the airline industry and in the chapters in this volume, see Appendix 3.3. © Springer Science+Business Media Singapore 2016 A. Heshmati and J. Kim, Efficiency and Competitiveness of International Airlines, DOI 10.1007/978-981-10-1017-0_3
51
52
3 A Review of the Airline Industry
“Passenger services include fares and other expenditure related to the carriage of passengers, including any taxes levied on passenger services, such as sales or value-added taxes. Fares that are a part of package tours, charges for excess baggage, vehicles, or other personal accompanying effects, and food, drink or other items purchased on board carriers are also included. The valuation of passenger transport should include fees payable by the carriers to travel agencies and other providers of reservation services. Also included are rentals provided by residents to non-residents, and vice versa, of vessels, aircraft, coaches or other commercial vehicles with crews, for limited periods (such as a single voyage), for the carriage of passengers” (UN 2010). “Freight services cover the transport of objects. Freight services may be divided into three types. The first two are associated with the fact that, in line with the recommendations of the BPM6, goods are valued f.o.b. at the customs frontier of
Data Loading...
