scholarly journals Low-cost strategija u zračnom prijevozu putnika

2017 ◽  
Vol 4 (2) ◽  
Author(s):  
Aleksandra Krajnović ◽  
Berislav Bolfek ◽  
Nikolina Nekić
Keyword(s):  
Value Chain ◽  
Low Cost ◽  
Aerospace Industry ◽  
Air Transportation ◽  
Air Traffic ◽  
Operating Costs ◽  
Business Strategies ◽  
Almost All ◽  
Air Carriers ◽  
Reduction Of Costs

In recent years, in almost all of the markets, low cost airlines dedicated to the air transportation of passengers were established, presenting different business strategies if compared to the classical, national airlines. The term low-cost company is used in the aerospace industry indicating airlines that operate with lower operating costs, unlike their competitors. The success of low-cost airlines can be attributed to the low-cost dominantly positioned strategy adopted by the airlines. The main goal of this paper is focused on the analysis of selected cases of low-cost airlines and their comparison to traditional air carriers. Additionally, the purpose of this paper is to analyze low-cost airlines, comparing their characteristics with other segments of air traffic, identify their strategies, and identify the activities of the value chain that affect the most the reduction of costs

scholarly journals Characteristics and the Overview of Air Traffic in the Republic of Croatia

Pomorstvo ◽  
2018 ◽  
Vol 32 (2) ◽  
pp. 297-311
Author(s):  
Dora Naletina ◽  
Kristina Petljak ◽  
Marta Sremac
Keyword(s):  
Economic Development ◽  
Low Cost ◽  
Secondary Data ◽  
Air Transportation ◽  
Air Traffic ◽  
Living Standard ◽  
The European Union ◽  
Low Cost Carriers ◽  
Tremendous Importance ◽  
The Republic

As one of the largest and most important industries in the world, the air industry’s impact on economic development, living standard and productivity in the Republic of Croatia has been significant. Air transport is of high significance for the economic development of the Republic of Croatia because its tremendous importance in the development of one of the most important economic branches in Croatia – tourism. Due to the liberalization of the air transportation market in the European Union the growth of low-cost carriers has been noteworthy. The aforementioned liberalization has had a significant impact on the Croatian air transportation market, especially on the presence of low-cost carriers in the coastal Croatian airports. Based on the secondary data analysis, the purpose of this paper is to underline the characteristics of the Croatian air transportation market, and as well to analyse the importance and the role of low-cost carriers in the traffic of all Croatian airports. Due to this development, a significant increase has been noted in the passenger air traffic and as well in the number of low-cost carriers that are offering their services on the Croatian market.

scholarly journals Pricing schemes for air traffic services through multi-level approaches

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rabah Guettaf ◽  
Félix Mora-Camino
Keyword(s):  
Optimization Problems ◽  
Air Transportation ◽  
Air Traffic ◽  
Numerical Application ◽  
Quadratic Constraints ◽  
Feedback Effects ◽  
Multi Level ◽  
Pricing Schemes ◽  
Air Carriers ◽  
Different Levels

This article addresses the problem of air traffic service (ATS) pricing over a domestic air transportation system with either private or public ATS providers. In both cases, to take into account feedback effects on the air transportation market, it is considered that the adopted pricing approaches can be formulated through optimization problems where an imbedded optimization problem is concerned with the supply of air transportation (offered seat capacity and tariffs for each connection). Under mild assumptions in both situations the whole problem can be reformulated as a mathematical program with linear objective function and quadratic constraints. A numerical application is performed to compare both pricing schemes when different levels of taxes are applied to air carriers and passengers.

scholarly journals The Demerger Impact upon Sustainable Development of Economic Entities: Evidence from Romania

2021 ◽  
Vol 13 (15) ◽  
pp. 8316
Author(s):  
Camelia Mirela Baba ◽  
Constantin Duguleană ◽  
Marius Sorin Dincă ◽  
Liliana Duguleană ◽  
Gheorghița Dincă
Keyword(s):  
Sustainable Development ◽  
Business Strategies ◽  
The Sustainable Development ◽  
Ex Post ◽  
Before And After ◽  
Almost All ◽  
The Impact ◽  
Profitability Ratios ◽  
Positive Effect

The Covid-19 induced economic crisis has significantly affected almost all businesses from nearly every sector, causing severe financial problems, lack of cash assets, and decrease of revenues. In this context, the economic entities were forced to look for adjustment and rescue solutions of their activities. One possible solution for the recovery and reorganization of economic entities’ activities is demerger. This paper evaluates the impact of demerger upon the sustainable development of economic entities in terms of economic efficiency and financial performances. To achieve this goal, a statistical analysis of profitability ratios before and after the demerger, as well as a structural analysis of 268 demerger projects for the April 2012–April 2021 period, were performed. The results attest there are no significant differences between the ex-ante and ex-post financial performances. However, demerger seems to have a positive effect upon analyzed companies helping them to overcome economic hardships, rethink their business strategies, and continue their activity in the medium and long-term time horizon.

The effects of airline strategies on environmental sustainability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gamze Orhan
Keyword(s):  
Environmental Impacts ◽  
Environmental Effects ◽  
Environmental Sustainability ◽  
Corporate Sustainability ◽  
Air Transportation ◽  
Air Transport ◽  
Business Strategies ◽  
Emission Rates ◽  
Content Type ◽  
The Relationship

Purpose Deregulation of domestic markets and the liberalization of international markets have dramatically changed air transportation. One of the important results of this change is the environmental effects of air transportation. This study aims to examine the implications of air transportation on environmental sustainability in the context of airline business strategies in liberalized and globalized air transport industry. Design/methodology/approach The paper discusses the relationship between liberalization, airline strategies and environmental sustainability of air transportation using the related literature. Then, to show some environmental impacts on the axis of the relationship discussed, emission rates for the aircraft landing and take-off phase were calculated on a global basis based on the aircraft traffic. Findings The discussion in the paper shows that the liberalization policies and the strategies of airlines supported by these policies, in essence, contradict the environmental sustainability of air transport. Considering the flight share projections of EUROCONTROL for different aircraft types on a global basis and the World Bank’s global flight traffic forecast for the years 2016 and 2025, it has been demonstrated that the number of aircraft departures will increase by 30%, whilst the number of aircraft emissions will increase by 41.5%. Practical implications Airlines are one of the main actors that will play a role in reducing the environmental impacts of air transportation. Therefore, this study is important in giving an idea to both policymakers and airline managers on how airline companies’ strategies should be shaped to realize both corporate sustainability and environmentally sustainable air transportation. Originality/value There are many studies in the literature regarding the environmental effects of air transport. However, there are not many studies linking environmental impacts with airline strategies that directly affect air transport demand. This study is different in that it gives environmental sustainability by associating it with its root causes.

Exploring international markets: unique quality heads to Kenya

2021 ◽  
pp. 1-16
Author(s):  
Esther Laryea ◽  
Mawunyo Avetsi ◽  
Herman Duse
Keyword(s):  
Learning Outcomes ◽  
Undergraduate Students ◽  
Value Chain ◽  
International Markets ◽  
Subject Area ◽  
Cereal Production ◽  
Foreign Entry ◽  
Entry Decision ◽  
Almost All ◽  
Production Company

Study level/applicability The case is targeted at undergraduate students in international finance, international business, entrepreneurship and strategic marketing classes. Subject area At the broadest level, the case represents an opportunity for students to discuss internationalisation of local firms. It focusses on getting students to analyse the costs and benefits associated with the foreign entry decision as well as the strategies for foreign entry. Case overview The Exploring International Markets: Unique Quality Heads to Kenya case study provides a chronological report of how Unique Quality, a cereal production company, grew locally up until the point when it considers internationalisation. It details the key considerations the firm makes as it considers its foreign entry decision. Unique Quality is a cereal production company in Ghana, which operates within the agriculture industry. The industry operates at almost all the points along the value chain including coordinating the growing of the cereal until it is harvested, packaged and marketed for sale. The company which started operations in 2013 has made great gains in penetrating the Ghanaian market. Salma, who is currently at the helm of affair at the company, together with the board is considering entering into Kenya. This decision is one that must not be taken lightly and has left Salma in a dilemma. Expected learning outcomes The expected learning outcomes of the case are:To enable students:a) identify the reasons why firms go international;b) identify opportunities for cost-cutting benefits or revenue maximisation opportunities for Unique Quality in Kenya;c) understand and identify the various sources of country risk that Unique Quality could face in its attempt to enter the Kenyan market; andd) identify and analyse the various foreign entry strategy options available to Unique Quality. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected]_to_request_teaching_notes Subject code CSS 1: Accounting and finance.

INVITED POLICY ECONOMICS PAPER — ECONOMICS IN ASIA 1995–2020

2021 ◽  
pp. 1-15
Author(s):  
JOERGEN OERSTROEM MOELLER
Keyword(s):  
Market Economy ◽  
Value Chain ◽  
Global Economy ◽  
Consumer Preferences ◽  
Low Cost ◽  
Second Phase ◽  
Public And Private ◽  
The Us ◽  
Anglo American ◽  
Asian Economy

Over the last 25 years, Asia’s economic rise has been extraordinary. Its share of global gross domestic product (GDP) has risen from 5.8% to 22.9%. 1 The first phase of high economic growth — up to 1995 — saw Asia enter the global supply chain primarily with labor-intensive/low-cost manufacturing. Domestic consumption was a fairly low share of GDP; Asia was manufacturing mainly for consumption in the US and Europe. As such, it was primarily a rule-taker. In the second phase — from 1995 to 2020 — it gradually turned into an economic force joining the US and Europe in shaping the global economy, exercising significant influence upon the value chain, the cycles of the global economy, transport and logistics, the global capital markets and consumption patterns (consumer preferences and tastes). While not yet among the leading rule-makers, it had become difficult for policymakers (public and private) to make decisions without Asia’s consent. To form an opinion of today’s emerging third phase — post 2020 — the intriguing question is whether the Asian countries have adopted what may be termed Anglo-American economic thinking (basically, the primacy of the market). Or whether behind the curtain, the Asian economy works in its own way diverging from the American and British economic schools. Since demographics and sheer economic scale mean that Asia will dominate the global economy in the years to come, the nature of the Asian economy will be of crucial importance for the future global economy. The conclusion of this paper is that “Asia” in many respects differs — and fundamentally so — from market economy principles. How this prospect should be interpreted is also evolving, as circumstances change. Certainly, the repercussions of COVID-19 have not been the same in the US, Europe, East Asia and South Asia — and this may suggest that socio-political structures have a stronger impact on economic outcomes than economic theory teaches, thus calling into question the global validity of market economy principles.

ANALYSIS OF ECONOMIC ACTIVITY OF REGIONAL AIRPORTS OF FRANCE AND REGIONAL AIRPORTS OF THE CENTRAL FEDERAL DISTRICT: DEVELOPMENT OF LOW-COST AIRLINES DESTINATIONS AS A KEY FACTOR IN THE PASSENGER TRAFFIC GROWTH

2021 ◽  
Vol 1 (195) ◽  
pp. 75-87
Author(s):  
V.V. Rublev ◽  
Keyword(s):  
Low Cost ◽  
Federal District ◽  
Air Transportation ◽  
Minimal Impact ◽  
National Budget ◽  
Passenger Traffic ◽  
Central Federal District ◽  
Route Network ◽  
Key Factor ◽  
Regional Airports

The article presents an analysis of the activities of regional airports in France in 2019. The growth of passenger traffic was observed in those airports that actively developed cooperation with budget airlines, increasing the number of destinations in the route network. Regional airports in France, whose route network structure did not expand in 2019, showed a slight decrease in passenger traffic (from –0.1% to –3%). The first and only experimental regional airport in France (city of Beziers), handling flights of only one budget airline, Ryanair, showed an increase in passenger traffic by 14.5% in 2019. The share of routes of budget airlines in the structure of the route network of regional airports in France is quite high. The key problems of regional airports in Russia are the low passenger traffic and the underdeveloped route network. Due to the presence of the only national budget airline "Pobeda" on the market and the minimal impact on the segment of budget air transportation of foreign airlines, the share of budget air transportation destinations in the structure of regional airports of the Russian Federation continues to remain at an extremely low level. 2019 showed a record growth in passenger traffic at regional airports in the Central Federal District (an increase from +2.8% to +262%, with the exception of Tambov Airport, whose passenger traffic fell by 57.4%), which indicates an increase in demand and the need to expand the route network of regional airports. On the example of the Voronezh airport, a model for the development of low-cost airline destinations is presented.

Business strategies responding to COVID-19: experience of Chinese corporations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Minyu Wu ◽  
Kun Kong
Keyword(s):  
Competitive Advantage ◽  
Value Chain ◽  
Secondary Data ◽  
Business Strategies ◽  
Society Business ◽  
Content Type ◽  
Five Dimensions ◽  
Strategic Csr ◽  
Mixed Approach ◽  
Business In Society

Purpose This paper aims to investigate the corporate social responsibility (CSR) initiatives adopted by Chinese firms during the outbreak of COVID-19. Facing this unknown, unexpected and devastating disease, Chinese corporations demonstrated their CSR in different approaches. The purpose of this paper is to explore how CSR influences the decisions of the corporations that respond to a severe incident and how corporations can achieve their mission or strategic objectives by responding to a serious incident. Design/methodology/approach Based on secondary data and thematic analysis, this paper examines six Chinese corporations which are the leading firms in their respective industries. Findings This paper finds that firms adopted a mixed approach to conducting their CSR initiatives, including altruistic, strategic and citizenship CSR initiatives. This paper also confirms that strategic CSR initiatives were in line with the five dimensions of strategic CSR including centrality, specificity, proactivity, visibility and voluntarism. In addition, this paper also shows that a company could create its competitive advantage by carrying out CSR initiatives that are able to strengthen its value chain activities or the competitive context. This is based on the partnership built by the firms with their stakeholders to recognize the shared value. Practical implications This paper shows the implication that business leaders should understood the role of a business in society and the importance of stakeholders’ expectations. The underlying philosophy is that CSR could strengthen the resilience of society; business organizations need to operate in a healthy society. Originality/value This paper provides insights of Chinese corporations responding to a severe social incident. It highlights the strategic perspective of CSR initiatives and the linkage between CSR activities and a firm’s competitive advantage.

Building (or not building) dynamic capabilities: the case of Italian subsidiaries in China and India

2018 ◽  
Vol 26 (4) ◽  
pp. 337-360 ◽  
Author(s):  
Giuseppe Tattara
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Dynamic Capabilities ◽  
Case Study Research ◽  
Business Strategies ◽  
Future Research ◽  
Capability Development ◽  
Regional Effect ◽  
Content Type ◽  
Capability Building

Purpose The purpose of this paper is to examine the process of capability building at subsidiary level and the forces preventing such process. The paper discusses and tests three propositions governing this process. Design/methodology/approach This research is based on multiple case studies. A case study research is most useful when addressing issues about which little prior theory has been developed or empirical evidence collected. Findings Subsidiaries in Asia operate in a way substantially different from those in the West. Specifically what ways do market specificities in Asian economies serve to either inhibit or positively encourage the development of a subsidiary? What are the circumstances which could induce subsidiaries to outsource production? Research limitations/implications Future research should explore the regional effect on MNE subsidiary types and different flexibilities exhibited in the value chain. What are the specific aspects (macro and micro) that explain variations of business strategies at subsidiary levelboth over time and between countries? Practical implications Multinational enterprises (MNEs) should be aware of the strong potential for capability development at the subsidiary level. This increased awareness ought to induce consideration in MNEs about how best to encourage such know capability development and how to leverage these capabilities for a better MNE performance. Social implications Managers who knew the host country languages and culture, and have outward-looking attitudes, are in advantageous positions to learn about new opportunities. Originality/value The paper offers empirical insights into the state and drivers of subsidiary performance in Asia. Specifically it shows how neglect of external conditions can act to open people’s eyes and foster a capability-building process within subsidiaries.

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