It’s Not Simply Luck: The Impact of Schedule Padding and Operational Improvements on Domestic On-Time Performance in the US Airline Industry

2021 ◽  
Author(s):  
Chandrasekhar Manchiraju ◽  
Milind G. Sohoni ◽  
Vinayak Deshpande
Keyword(s):  
Airline Industry ◽  
Time Performance ◽  
The Us ◽  
The Impact

scholarly journals Airline Financial Distress and Customer Satisfaction

2011 ◽  
Vol 48 (1) ◽  
Author(s):  
Dina Ribbink ◽  
Christian Hofer ◽  
Martin Dresner
Keyword(s):  
Customer Service ◽  
Airline Industry ◽  
Financial Distress ◽  
Service Levels ◽  
The Third ◽  
Time Performance ◽  
Using Data ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

An investigation is conducted on the effect of financial distress on customer service levels in the U.S. airline industry. Using data from the first quarter of 1998 to the third quarter of 2006, we employ a seemingly unrelated regressions (SUR) model to analyze the impact of financial distress on three measures of customer service. We find that higher financial distress is associated with better on-time performance of airlines and fewer lost bags. The relationship of airline financial distress to the number of bumped customers, however, is insignificant.

The elephant in the room of mutual forbearance

2018 ◽  
Vol 11 (2) ◽  
pp. 257-279 ◽  
Author(s):  
Burak Cem Konduk
Keyword(s):  
Airline Industry ◽  
Fixed Effects ◽  
Research Question ◽  
Fixed Effects Model ◽  
Content Type ◽  
High Performing ◽  
The Us ◽  
Mutual Forbearance ◽  
Low Performance ◽  
The Impact

PurposeThe purpose of this paper is to explain how a multi-market firm develops the motivation to forbear from competition.Design/methodology/approachA two-way fixed effects model with Driscoll and Kraay standard errors investigates the research question with panel data collected from the US scheduled passenger airline industry.FindingsThe results demonstrate that although the interaction of multi-market contact with strategic similarity impairs a firm’s forbearance from competition, the same interaction promotes it as firm performance deteriorates, supporting the hypotheses.Research limitations/implicationsPerformance explains not only how forbearance emerges out of coincidental multi-market contact but also reconciles the mixed evidence for the impact of the two-way interaction between multi-market contact and strategic similarity on forbearance.Practical implicationsAntitrust authorities should pay more attention to low performing firms than to high performing firms in their investigations. Also, managers of multi-market firms should identify multi-market rivals with low performance as targets for the initiation of forbearance.Originality/valueThis study revises the mutual forbearance theory to align it with the accumulating empirical evidence that otherwise refutes its assumption and thereby improves theory’s descriptive and predictive power.

scholarly journals Tracing the Woes: An Empirical Analysis of the Airline Industry

2010 ◽  
Vol 2 (3) ◽  
pp. 1-43 ◽  
Author(s):  
Steven Berry ◽  
Panle Jia
Keyword(s):  
Airline Industry ◽  
Structural Model ◽  
Travel Demand ◽  
Low Cost ◽  
Air Travel ◽  
Demand And Supply ◽  
The Us ◽  
Low Cost Carriers ◽  
Air Travel Demand ◽  
The Impact

The US airline industry went through tremendous turmoil in the early 2000s, with four major bankruptcies, two major mergers, and various changes in network structure. This paper presents a structural model of the industry, and estimates the impact of demand and supply changes on profitability. Compared with 1999, we find that, in 2006, air-travel demand was 8 percent more price sensitive, passengers displayed a stronger preference for nonstop flights, and changes in marginal cost significantly favored nonstop flights. Together with the expansion of low-cost carriers, they explain more than 80 percent of legacy carriers' variable profit reduction. (JEL L13, L25, L93)

scholarly journals AN INVESTIGATION OF THE UNITED STATES AIRLINE PILOT LABOUR SUPPLY

2014 ◽  
Vol 5 (2) ◽  
pp. 53-83
Author(s):  
Rebecca Lutte
Keyword(s):  
United States ◽  
Airline Industry ◽  
Supply And Demand ◽  
The United States ◽  
Airline Pilots ◽  
Airline Pilot ◽  
The Us ◽  
Future Supply ◽  
Major Airlines ◽  
The Impact

Over the next 20 years, the United States airline industry is expected to hire in excess of 95,000 pilots. This hiring will be the result of new aircraft growth, pilot retirements, and pilot attrition from the industry for reasons other than retirement. In addition, government regulations may also cause an increase in the number of new pilots required. Given this increased demand, will there be enough new pilots to ensure a long-term and continuous supply? The purpose of this research is to examine the supply and demand for US airline pilots. Several new considerations are having an impact on future supply and demand of airline pilots including cost of training, growth, retirement, regulatory changes, and slowing supply of military pilots. The methodology provides an empirical analysis of the pilot labor supply in the US. A multivariate regression model was developed to forecast demand. To explore supply, a variety of data sources have been included and a survey was implemented. The results of the study indicate that the US airline industry will experience a shortage of approximately 35,000 pilots for the 2013 to 2031 time period. The impact of the shortage on regional and major airlines is examined. Possible solutions are discussed.

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