Browsing by Author "O'Connell, John F."
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Item Open Access Air transport in Africa: toward sustainable business models for African airlines(Elsevier, 2013-06-17) Heinz, Stephan; O'Connell, John F.Although there is a vast amount of literature on airline business models and their evolution in changing global landscapes, there is a general lack of research into the applicability of those models, traditionally defined in European and North American contexts, to the African scene. Implicit in this study is the hypothesis that the African environment is unique enough to warrant its own host of strategies, which may be distinctive enough to form part of a new strategic template, or business model. Initially, a review of existing literature is undertaken to profile the African aviation environment and evaluate existing airline business models and their evolution, both globally and in Africa. The methodology consists firstly of a cluster exercise, whereby 57 African airlines are analysed in terms of their network and size, to yield a number of heterogeneous groups which serve to identify the current business models of airlines on the continent. Following this, eight airlines (representative of the groups outlined in the cluster analysis) were subsequently selected for analysis in terms of the Product and Organisational Architecture framework. While it was evident that the traditional models are followed in Africa, in some instances variations were apparent. Full-service network carriers and regional carriers were concluded as being the most prominent and stable in the African market. The applicability of the low-cost carrier model in Africa was also examined at length, with mixed results. The analysis also raised network density and connectivity as essential components of business models for delivering profits in an African context.Item Open Access An analysis of the issues and prospects facing SriLankan Airlines and its embedded partnership with Sri Lankan tourism(IP Publishing, 2016-06-27) Nagahawatte, L.; O'Connell, John F.The long civil war, which ended in May 2009, poor economic performance and weak travel demand for Sri Lanka all coalesced in hindering the tourism industry. Consequently its aviation industry, which is dominated by the national carrier SriLankan Airlines, faced growing and difficult challenges. However, since 2009 the country has witnessed a boom in tourism, while an unprofitable SriLankan Airlines changed its financial and strategic circumstances by becoming a member of the Oneworld alliance in mid-2014, driven by its regional geography and proximity to India which had strict bilateral traffic rights for international incumbents from the UK and the UAE. This study analyses tourism, economic and passenger data combined with results from a passenger survey and expert interviews in order to identify the critical issues and future prospects of aviation and tourism in Sri Lanka. The authors conclude that its ageing long-haul fleet, together with an inferior economy-class product along with high fuel prices, capacity constraints and poor management practices are the major issues faced by SriLankan Airlines. On the tourism side, uncompetitive hotel rates, unnecessarily high government taxes, visa charges and the lack of international promotion were seen as the principle drawbacks. A survey at Colombo airport revealed that fare is the principle rhetoric for passengers taking SriLankan Airlines but when they want a wider range of additional and superior attributes they choose foreign carriers.Item Open Access Editorial: Business model innovation in air transport management-Selected papers from the IFSPA 2015, Hong Kong, 2015(Elsevier, 2017-02-08) Yip, T. L.; Lei, Z.; O'Connell, John F.The air transport industry operates in a highly competitive, dynamic and complex environment. The past few years have witnessed a number of innovative business models such as dual brand strategy (running a full service airline and a low-cost carrier in the same airline group); low-cost long haul operations; airline cross-border joint ventures; vertical integration between airports and airlines; and the growing importance of ancillary revenue for airlines. As these new business models are continuously evolving, they may potentially change the landscape of the air transport industry.Item Open Access Liberalization of China-US air transport market: assessing the impacts of the 2004 and 2007 protocols(Elsevier, 2015-09-26) Zheng, Lei; Man, Yu; Ruowei, Chen; O'Connell, John F.This paper examines China's considerations in reaching the 2004 and 2007 Air Service Agreement Protocols with the United States (US) and the impacts of such policy on the China–US market from the perspective of China. Analysis shows that the 2004 and 2007 protocols have profound impacts on the China–US market. The two protocols have been associated with phenomenal traffic growth and intensified competition. Passengers also benefit from much more choice in terms of both airlines and routing. Over time, Chinese carriers' operating performance and financial performance have gradually improved after the liberalization expressed in the protocols. However, the industry's hub-building initiatives are still seriously challenged by competing hubs in Seoul and Tokyo which have diverted substantial number of passengers moving between the China and US markets. Such issues have to be addressed in order to create a win–win outcome for both countries.Item Open Access Passengers’ perceptions of low cost airlines and full service carriers: a case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines(Elsevier, 2005-07-01T00:00:00Z) O'Connell, John F.; Williams, GeorgeDirect competition between full service airlines and no-frills carriers is intensifying across the world. US and European full service airlines have lost a significant proportion of their passengers to low cost carriers, the experience now being repeated in the domestic markets of Asia. This paper attempts to provide answers to a number of critical questions: What are the key drivers of each type of airline's business model? Is there a difference in passengers’ perceptions between low cost carriers and full service incumbents in a mature European market and in a rapidly developing Asian economy? What are the principle reasons why a passenger chooses a particular airline model? How could a legacy carrier encourage passengers to return and so regain their domestic market share? These questions are addressed using information obtained in passenger surveys that were recently conducted in Europe and Asia.Item Open Access The strategic capability of Asian network airlines to compete with low-cost carriers(Elsevier, 2015-03-30) Pearson, James; O'Connell, John F.; Pitfield, David; Ryley, TimNever before have network airlines been so exposed and vulnerable to low-cost carriers (LCCs). While LCCs had 26.3% of all world seats in 2013, Southeast Asia had 57.7% and South Asia 58.4% – and these figures will only increase. There are many consequences of LCCs on network airlines, including inadequately meeting the expectations of customers, so increasing dissatisfaction, and not offering sufficient value-for-money. Clearly, it is fundamentally important for Asian network airlines to respond appropriately to LCCs. This paper looks at the strategic capability of 22 of the top Asian network airlines in competing with LCCs, which is achieved by analysing questionnaire data from these airlines in terms of 37 competitive responses across six distinct response categories. It is crucial to note that this paper only concerns their capability in competing with LCCs, and it does not consider their overall strength. This paper also investigates how strategic capability varies by Asian sub-region and by airline performance, with performance examined in two respects: by perceived performance and actual performance. The results show that strategic capability varies widely, with Vietnam Airlines possessing the strongest strategic capability to compete with LCCs and SilkAir the weakest. Of others that compete heavily with LCCs, Malaysia Airlines and Garuda Indonesia have strong capabilities, while Philippine Airlines does not. However, all three need to more forcefully respond to LCCs. As a whole, network airlines within Southeast Asia have the greatest strategic capability, and Northeast Asia the weakest. There is a reasonably strong correlation between strategic capability and both actual and perceived performance, which suggests that those airlines with strong strategic capabilities should achieve strong overall performance.Item Open Access The strategic response of full service airlines to the low cost carrier threat and the perception of passengers to each type of carrier(Cranfield University, 2007-05) O'Connell, John F.; Williams, GeorgeLow cost carriers have changed the competitive dynamics of the short-haul market forever. They have revolutionised the way of doing business in aviation by adopting a fresh approach on both strategic and operational issues. Simplicity has become their universal principle over network airlines and subsequently they have achieved substantial cost advantages which are passed onto the consumer as lower fares. Network airlines have found it difficult to reshape their structural barriers and have been slow to incorporate the components that low cost carriers deemed very significant in impacting their operating margins. However, a restructuring of their internal weaknesses should spur initiatives to design long-term strategies to address those shortcomings. Network airlines rely on producing value-adding and consumerdriven product differentiation beyond the basics of the low cost carrier product. To further differentiate themselves network airlines need to focus on: customer satisfaction; develop long term mutually beneficial relationships with both passengers and corporations; collaborate with a wide range of bipartisan partners; retain differentiated flight products that add value; and to incorporate strategies that other network carriers deemed paradigmatic. Network carriers should resist reducing costs associated with value-added services and need to become innovative in generating alternative revenue streams.Item Open Access A study into the hub performance Emirates, Etihad Airways and Qatar Airways and their competitive position against the major European hubbing airlines(Elsevier, 2016-12-27) O'Connell, John F.; Bueno, Oriol EscofetArabian Gulf carriers are changing the dynamics of international aviation. While travellers flying between East and West used to connect traditionally at European hubs, the rapid emergence and growth of Emirates, Etihad Airways and Qatar Airways have altered traffic flows, transforming their home bases into global air transport hubs. Thus, this study aims to assess the hub-and-spoke system efficiency of the three main Gulf carriers and compare it to major European hubbing airlines. The paper detects that the connectivity through European hubs is being increasingly challenged by the Gulf based hubs. The research findings have shown a high degree of connectivity and temporal coordination for Gulf carriers, clearly greater than European hubs. Qatar Airways and Etihad Airways provide about twice the level of intercontinental connectivity compared to their European counterparts.