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The main cost-related factors in airlines management

Eller,Rogéria de Arantes Gomes; Moreira,Michelle
Fonte: Sociedade Brasileira de Planejamento dos Transportes Publicador: Sociedade Brasileira de Planejamento dos Transportes
Tipo: Artigo de Revista Científica Formato: text/html
Publicado em 01/01/2014 Português
Relevância na Pesquisa
27.6%
This paper analyzes the main factors that affect the strategies to reduce airlines costs. These costs factors were presented to experts from the airline industry through two rounds of questionnaires in sense to be weighed. It was applied a method based on the structure of the AHP (Analytic Hierarchy Process) and the results show that the main important factors for a cost-related airlines strategy are, in importance: route structure and mesh; type and characteristics of the aircraft; cost of labor and management quality. This hierarchy can help the decision maker when facing the need of defining priorities in reduction costs. past decades despite the increase in air transportation and significant decrease in average operation costs, it is observed that airlines have low profitability. The liberalization of the markets and increase opportunities for competition diminishes prices, even when airlines face increasing costs. Considering that advantage in costs is an important strategy for carriers to remain in the market, this paper analyzes the main factors that affect the strategies to reduce airlines costs. These costs factors were presented to experts from the airline industry through two rounds of questionnaires in sense to be weighed. It was applied a method based on the structure of the AHP (Analytic Hierarchy Process) and the results show that the main important factors for a cost-related airlines strategy are...

A merger effect on different airline groups: empirical study on the Delta-Northwest merger in 2008

Park,Sora
Fonte: Sociedade Brasileira de Planejamento dos Transportes Publicador: Sociedade Brasileira de Planejamento dos Transportes
Tipo: Artigo de Revista Científica Formato: text/html
Publicado em 01/04/2014 Português
Relevância na Pesquisa
27.6%
The airline industry has performed inconsistently since deregulation in 1978 and there has been a significant profit discrepancy between legacy airlines and low-cost carriers. Starting from the early 2000s, four of the largest legacy airlines chose to consolidate with an effort to increase efficiency and profitability. Delta Air Lines and Northwest Airlines have consolidated in 2008, becoming the largest commercial airline in the world. This paper examined the merger effect on the airfares on top 1,000 U.S. domestic city-pair routes in relation to the number of passengers, the distance, and the market share as well as its potential anticompetitive issues. All airlines were categorized into three groups - Legacy Airlines, Delta-Northwest, and Low-Cost Carriers - and the interactions between the airfares and the variables were examined within each airline group and across different airline groups. It was found that the airfares of legacy airlines and Delta-Northwest decreased at a faster rate than the low-cost carriers while their market shares increased simultaneously irrespective of whether they offered the lowest prices or had the largest market share on each route.