Browsing by Author "Mason, Keith J."
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Item Open Access Airframe manufacturers: Which has the better view of the future?(Elsevier Science B.V., Amsterdam., 2007-01-31T00:00:00Z) Mason, Keith J.For the development of Airbus' A380 and Boeing's B787 it seems that these manufacturers have differing views of future airline networks. This paper assesses from published sources the likely preferences of leisure and business passengers for different airline network approaches and also assesses airline strategies through the economic cycle. The manufacturers seem to have substitutable aircraft types. Both leisure and business travellers are increasingly price elastic and growth in both markets means both aircraft type will be successful aircraft meeting differing needs. However, airline market- share strategies are likely to undermine the success of hub by-pass or hub-to- hub focus strategies throughout the cycle. (C) 2006 Elsevier Ltd. All rights reserved.Item Open Access Airline brand management: a practical perspective to brand management in the airline industry(Elsevier, 2023-06-02) Sezgen, Eren; Mason, Keith J.; Mayer, RobertMeasuring and managing airline services cannot be easily achieved using the tools developed to measure brands in goods and most other services industries due to some unique characteristics of the airline industry. This paper seeks to explain airline branding, brand management, and brand measurement from the perspective of airline marketing professionals. The aim is to identify customer-based brand equity (CBBE) measures appropriate to the unique nature of the airline industry. Furthermore, we explore the dimensions that drive brand equity in the airline industry. The paper uses semi-structured expert interviews to collect data from senior marketing executives working for both full-service and low-cost carriers, in addition to airline branding/marketing consultants. The findings reveal the factors that drive airline customer-based brand equity (CBBE) as awareness, functional and technical service performance, credibility, differentiation, value, satisfaction, and loyalty. The research encapsulates the basic dimensions of brand equity advocated in the branding literature but also some measures which are new to the airline branding literature (functional and technical service performance, and credibility). These measures are critical for airline managers as they attempt to build equity in their respective brands. Therefore, this research offers researchers and practitioners a better understanding of brand equity measurement and of brand equity formation for airlines.Item Open Access Airline Business Models and their respective carbon footprint: Final report(Manchester Metropolitan University, 2009-01) Mason, Keith J.; Miyoshi, ChikageThe choices that airlines make about the aircraft they fly, the number of seats they have on each aircraft, the routes they fly and the passenger segments they focus on have significant impacts on their environmental performance (which can be assessed in terms of an airline’s CO2 emissions per passenger kilometre, fuel burn or other suitable metric). Each of the main airline business models (network, charter, low cost carrier (LCC), regional) involves practices that may improve or degrade environmental performance. This project analyses the factors that affect each business model’s environmental performance and considers the potential for changes to business models to improve the environmental sustainability of the aviation sector. The evolution of aircraft fuel consumption, average sector length and CO2 emission levels (per passenger kilometre) were investigated. From 1986 to 2004 total fuel consumed by European airlines1 increased by 220%, while the amount of fuel consumed per passenger km has decreased by 27% (or 2% per year). Average distance flown has increased by 21% and the average number of passengers carried per flight by 5%. The CO2 emissions of intra-EU air services from the UK generated by each business model (network, LCC, charter, regional) was established for the years 1997, 2000 and 2006. Emissions were estimated by route, stage length, aircraft type used, number of seats supplied on each aircraft and the distance flown, following the IPCC recommended approach to carbon dioxide calculation. The LCCs share of total emissions has risen to 46% of all intra-EU routes originating in the UK in 2006 from 12% in 1997. At 112g/pkm this group’s CO2 emissions are lower than either network carriers or regional airlines (at 144g/pkms and 216g/pkms respectively) in the EU market. However the lowest emissions level is achieved by charter airlines at 106g/pkm. Some activities airlines have undertaken to reduce on-board weight were also considered. These include reducing water carriage, lowering tankered fuel levels and re-designing the duty free sales process. A calculator that estimates the carbon dioxide emissions that can be prevented by removing weight from a number of aircraft types was developed. It estimates that 456.2 tonnes of CO2 emissions can be prevented if an airline operating a daily North Atlantic service with a Boeing 747-400 could reduce 1 tonne (metric) from its takeoff weight. One of the main policy instruments that can internalise the environmental costs of aviation is the European Emissions Trading Scheme. Prior to its introduction the UK government has increased its Air Passenger Duty as a quasi-environmental taxation measure. The success of such fiscal measures in dampening the demand for air transport will largely depend on the price elasticity of demand and indicative ranges for long and short haul leisure and business passengers are given. A model of air transport CO2 emissions, which was developed to test various scenarios, suggests that should current growth rates continue, emissions for the global aviation market may grow by over 50% between 2009 and 2020. With high growth rates, the share of emissions for low cost carriers would also grow significantly, however, it is also clear that network carrier’s growth of long haul flying also means that the absolute emissions levels of this group is also likely to rise. The output of the model is used to test the sensitivity of changes to business model, such as increasing load factors, increasing the number of seats on board an aircraft, and differing growth rates for each business model. A stakeholder workshop and seminar for this project and a sister Omega project “Passenger Expectations” was held in December 2008. Key outcomes of the seminar was that passengers seem to have little appetite for changes in behaviour (such as willingness to take fewer longer overseas holidays or to holiday within the UK) that might reduce the demand for air services and that further passenger education regarding the relative impact of flying compared to other GHG generating activities is required. Further research is required to assess passenger willingness to forego service levels, timetable frequency, flight times to maximise load factors, minimise aircraft weight and therefore fuel consumption. Future studies may extend this work in two ways: assessing the feasibility of fully adopting the various weight reduction strategies suggested for airlines; and by investigating network carriers’ freight operations as a source of carbon dioxide emissions. Keith Mason and Chikage Miyoshi Cranfield University March 2009Item Open Access The carbon emissions of selected airlines and aircraft types in three geographic markets(Elsevier Science B.V., Amsterdam., 2009-05-01T00:00:00Z) Miyoshi, Chikage; Mason, Keith J.Various carbon calculators developed by airlines and carbon offset companies have become available since the environmental impact of the air transport industry started to receive strong attention. This paper details a prototype methodology for carbon calculation emission levels in the three air transport markets; the UK domestic routes, the intra-EU routes serving UK and the North Atlantic routes that enables the assessment of key environmental performance differences between air carriers whereas they would be measured as identical using the often used DEFRA-type measurement approach. The results show differences in airlines' strategies such as aircraft type used, load factors and seat configurations.Item Open Access EU network carriers, low cost carriers and consumer behaviour: A Delphi study of future trends(Elsevier Science B.V., Amsterdam., 2007-09-30T00:00:00Z) Mason, Keith J.; Alamdari, FaribaThis paper uses a Delphi panel of 26 air transport experts to forecast the structure of air transport in the EU in 2015 in respect of network carriers, low cost airlines and passenger behaviour. Secondary research was used to construct a number of scenarios about the future structure and strategy of EU network and low cost airlines and also traveller behaviour. Consensus of opinions was sought amongst the panel in a two-round process. The consensus opinion of the Delphi experts was that; network carrier consolidation will reduce EU players to less than five, there will be only two or three large low cost carriers, Business Class products will disappear on short hauls. and leisure travellers will take an increasing number of multiple short-duration holidays.Item Open Access The evolving low-cost business model: network implications of fare bundling and connecting flights in Europe(Elsevier, 2014-12-17) Fageda, Xavier; Suau-Sanchez, Pere; Mason, Keith J.In a context of limited organic growth, some low-cost airlines have considered business strategies that are changing two key principles of the low-cost airline business model: fare unbundling and point-to-point operations. Using a multivariate analysis we identify the influence of several route characteristics on the share that European pure low-cost and hybrid low-cost carriers have on the routes they operate. Results show that, from a network perspective, the distance between the archetypical low-cost carrier business model and the adapted low-cost carrier business model with a hybrid approach is widening. Differences are also clear between hybrids offering connecting services and hybrids offering fare bundling. The results are also important from an airport policy perspective, since secondary airports and legacy airports in transition could be able to reduce the gap between them and the main hub airports.Item Open Access Low cost carriers in the Middle East and North Africa: Prospects and strategies(Elseveir, 2016-10-11) Morrison, W.G.; Mason, Keith J.We examine socio-economic indicators relevant to ‘low cost carriers’ (LCCs) in the Middle East and North Africa (MENA) and review the evolution of air transport liberalization and air service agreements in the region. We analyse the business strategies of MENA-based LCCs and using a benchmarking methodology, we compare the business strategy of Air Arabia Group with those of dominant European LCCs EasyJet and Ryanair. Our economic development indicators suggest future potential for LCC growth in Iran and Saudi Arabia while other MENA countries continue to face challenges. The lack of success in regional liberalization in air transport is restricting LCC growth although individual MENA countries have or will benefit from ‘open skies’ agreements. MENA-based LCCs while retaining some characteristics of the LCC model also deviate in significant ways. Benchmarking analysis shows that Air Arabia's business strategy represents a departure from the business strategies that have been most successful in Europe.Item Open Access Marketing low cost airline services to business travellers.(Elsevier, 2001-03) Mason, Keith J.A number of EU low-cost airlines have reported their success in attracting business travellers on some of their routes. Recent research shows that business travellers working for small companies are more willing to trade in-flight service, frequency and FFP points for lower fares than those working for larger companies. A survey of short haul business travellers using a major carrier at Heathrow airport is compared with travellers of a low-cost airline at a secondary London airport. The hypothesis that business travellers using low-cost airlines form a separate market segment from business travellers using full-service airlines is not shown. Short haul business travellers are, en masse, becoming increasingly price sensitive. Travellers using network carriers use low-cost airlines and vice versa. Corporate influence in purchase decision making is more evident in travellers choosing network carriers and this is partly a function of the size of the company, with larger companies favouring such carriers. Marketing implications for both low-cost and full-service airlines are discussed.Item Open Access Mergers and Acquisitions in the EU low cost carrier market. A Product and Organisation Architecture (POA) approach to identify potential merger partners.(Elsevier Science B.V., Amsterdam., 2013-10-01T00:00:00Z) Lenartowicz, M.; Mason, Keith J.; Foster, A.As the EU low cost airline sector matures, consolidation is expected. This paper details a three-stage methodology to examine LCCs mergers and acquisition activity. A series of depth interviews with aviation experts concludes that the motives for LCCs to enter mergers and acquisitions are largely similar to those of full service carriers. A key success factor for merging partners is to have similar business models and culture. An analysis of full service and low cost carrier mergers and acquisition activity events shows that the size ratio and degree of network overlap between merging airlines are also independent of airline type. Braxton and BCG analyses of EU LCCs show Ryanair and EasyJet to be the only LCCs in the market with strong strategic positions across the markets they serve. Finally, an application of the Product and Organisation Architecture analytical approach was used to compare seven EU LCCs. EasyJet and Vueling were found to have the most similar business models and were therefore considered the best strategic fit for a potential merger.Item Open Access Sustainable development and airport surface access: the role of technological innovation and behavioural change.(MDPI, 2013-04-17T00:00:00Z) Ryley, Tim; Elmirghani, Jaafar; Budd, Tom; Miyoshi, Chikage; Mason, Keith J.; Moxon, Richard; Ahmed, Imad; Qazi, Bilal; Zanni, AlbertoSustainable development reflects an underlying tension to achieve economic growth whilst addressing environmental challenges, and this is particularly the case for the aviation sector. Although much of the aviation-related focus has fallen on reducing aircraft emissions, airports have also been under increasing pressure to support the vision of a low carbon energy future. One of the main sources of airport-related emissions is passenger journeys to and from airports (the surface access component of air travel), which is the focus of this paper. Two aspects associated with the relationship between sustainable development and airport surface access are considered. Firstly, there is an evaluation of three technological innovation options that will enable sustainable transport solutions for surface access journeys: telepresence systems to reduce drop-off/pick-up trips, techniques to improve public transport and options to encourage the sharing of rides. Secondly, the role of behavioural change for surface access journeys from a theoretical perspective, using empirical data from Manchester airport, is evaluated. Finally, the contribution of technology and behavioural intervention measures to improvements in sustainable development are discussed.Item Open Access Towards a means of consistently comparing airline business models with an application to the `low cost' airline sector(Elsevier Science B.V. Amsterdam, 2008-01-01T00:00:00Z) Mason, Keith J.; Morrison, William G.Meaningful definitions of and distinctions between airline business models are not easily formulated, particularly when one considers the extremely dynamic nature of the industry. The paper outlines a product and organizational architecture (POA) approach to classifying and relating key elements of airline business models. Using indices to create benchmark metrics, the POA model is then used to examine and compare six European airlines. The analysis shows that there are important differences in the business models of airlines that are all commonly referred to as ‘low cost carriers’. The paper demonstrates how differences in the business models adopted by the different airlines contribute to their relative profitability.Item Open Access Towards realizing best-in-class civil aviation strategy scenarios(Elsevier, 2015-05-29) Itani, Nadine; O'Connell, John Francis; Mason, Keith J.Developed and less developed countries follow different approaches during the formulation of aviation strategic plans. Additionally, there exists no pre-defined framework to guide developing countries in formulating civil aviation strategies matching their macro-environment and competitiveness levels while addressing their future vision for growth or sustainability. Instead, civil aviation planning over-look these priorities and is often dictated by local political pressures, and mostly influenced by uncoordinated foreign aid assistance. Hence, developing countries use dissimilar and un-structured approaches to reach what is known as "civil aviation master plan" or "draft civil aviation policy". Recognizing that a problem exists in the mechanism for civil aviation planning in this part of the world, research is encouraged to highlight this substantial topic. This paper uses a scenario-based approach to study the roles played by the macro-environment and industry-level performance in realizing best-fit national civil aviation strategies. The goals are achieved through utilizing a two-stage performance benchmarking technique named Data Envelopment Analysis (DEA) on country level data on a sample of 52 countries in different stages of development, followed by truncated regression. Results of the best performing countries-in terms of output efficiency, indicate that the country's macro-environment and air transport sector's performance serve as guidelines to identify aviation policy elements that are considered to impact efficiency. The regression results indicate that a more liberal air services approach is said to be of positive influence on efficiency levels. Further, we show that private airports are more efficient, while public airports are even less efficient than those with mixed ownership/management model. Hence, policy makers are encouraged to adopt an efficient peer analysis approach based on influential policy elements to bridge performance gaps, achieve better operating capacity, direct and prioritize investments in the civil aviation sector.Item Open Access The value and usage of ticket flexibility for short haul business travellers.(Elsevier, 2006-03) Mason, Keith J.Fully flexible business class and “full economy” airline tickets are aimed at meeting the needs of business travellers whose travel requirements may change after a ticket is purchased. The provision of these products has implications for airlines’ revenue management systems, which may lead to overbooking and denied boarding. Low-cost carriers have developed a method by which tickets can be changed only when required. This paper investigates the usage and value of ticket flexibility by business travellers as the popularity of high fare-fully flexible tickets has fallen in recent years. A survey of 284 business travellers showed that business travellers change their flight arrangements in only 32% of short haul trips. A stated preference study investigated the likelihood of respondents to change tickets in three hypothetical scenarios. The results indicate that to extend a business trip for business purposes travellers are confident that their company will bear the cost of changing a ticket valuing additional time at about £54 per hour but that the value of personal time when travelling is fairly low at £15 per hour. The study concludes that business travellers do not need to change their tickets often and that when they do, low-cost carriers offer a more cost-efficient method of providing ticket flexibility. This pay-for-usage approach to ticket flexibility undermines the traditional airlines’ pricing structures and this has contributed to the reduced, relative value of business class and full economy class tickets for short haul air travel.Item Open Access Voice of airline passenger: a text mining approach to understand customer satisfaction(Elsevier, 2019-04-13) Sezgen, Eren; Mason, Keith J.; Mayer, RobertThis paper investigates the key drivers of customer satisfaction and dissatisfaction towards both, full-service and low-cost carriers and also towards, economy and premium cabins. Latent Semantic Analysis - a text mining and categorisation technique ─ is applied to analyse online user-generated airline reviews. Over five thousand passenger reviews for fifty (50) airlines were collected from the online review site, TripAdvisor. Findings show that there are fundamental differences in the drivers of passenger satisfaction depending on the class of air travel purchased, and whether the airline is a low cost or a full service carrier. Friendliness and helpfulness of staff are the key factors for those travelling in Economy Class, product value is key for those in premium cabins, and a low price is the key satisfaction driver for those that choose to travel on a low cost airline. The research also shows that the service attributes seat comfort and legroom, luggage/flight disruptions and staff behaviours are the main reasons for passengers’ dissatisfaction among all groups. This study provides an alternative customer satisfaction analysis for managers to hear the voice of their customers by using a well-established text mining technique and by analysing the reviews of satisfied and dissatisfied customers.