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Airline Management: Strategies for the 21st Century 2nd ed. [Kietas viršelis]

(McGill University, Canada),
  • Formatas: Hardback, 1042 pages, aukštis x plotis x storis: 231x160x51 mm, weight: 1497 g, Illustrations, unspecified
  • Išleidimo metai: 01-Dec-2006
  • Leidėjas: Coast Aire Publications
  • ISBN-10: 1890938092
  • ISBN-13: 9781890938093
  • Formatas: Hardback, 1042 pages, aukštis x plotis x storis: 231x160x51 mm, weight: 1497 g, Illustrations, unspecified
  • Išleidimo metai: 01-Dec-2006
  • Leidėjas: Coast Aire Publications
  • ISBN-10: 1890938092
  • ISBN-13: 9781890938093
This is a companion volume to Air Transportation: Foundations for the 21st Century, also by Dempsey (McGill U., Canada) and Gesell (Arizona State U.). The two volumes together are intended to "acquaint the reader with the principal elements of air transportation history, airline economics, business, finance, marketing, regulation, and management." This volume first provides an overview of the world airline industry and then presents chapters on airline economics, finance, economic rationality, law and regulation, organizing and planning of product design, marketing, product delivery, revenue and inventory management, promotion and distribution, cost containment, and labor-management relations. The book is aimed at airline managers operating in the United States. Annotation ©2007 Book News, Inc., Portland, OR (booknews.com)
PREFACE xxiii
CHAPTER 1 INTRODUCTION TO THE AIRLINE INDUSTRY
Introduction
1
The Importance of Air Transport
2
The Size and Scope of Air Transportation
4
World Major Airlines
7
U.S. Carriers
9
Air Canada
13
Air France
14
Alaska Airlines
15
American Airlines
16
America West Airlines
17
British Airways
18
Cathay Pacific Airlines
21
Continental Airlines
21
Delta Air Lines
22
Emirates Airlines
23
Federal Express
24
Japan Airlines
24
Lufthansa German Airlines
25
Northwest Airlines
26
Singapore Airlines
26
Southwest Airlines
27
United Airlines
27
US Airways
29
King of the Hill
30
Intercarrier Alliances
34
Low Cost Carriers
38
Internal and External Factors Influencing Management
39
CHAPTER 2 AIRLINE ECONOMICS
Introduction
47
Supply
48
Airlines Inevitably Produce Excess Capacity
48
Airline Capacity has a Short Shelf Life
56
Excess Capacity is not Easily Reduced
57
Demand
60
Demand is Highly Cyclical and Highly Influenced By External Events
60
Many Consumers View Air Transportation as a Fungible Commodity
69
Brand Loyalty is Soft
70
Demand is Highly Segmented
71
Costs
74
Price
79
Other Factors Influencing Economic Performance
83
Theory of Perfect Competition
83
Theory of Economic Regulation
100
CHAPTER 3 FINACE
Profit (Loss)
111
Contemporary Crisis Compared with Past Economic Downturns
133
Causes of Unsatisfactory Financial Performance
138
The Cost/Price Disconnect
138
The Demand/Capacity Disconnect
141
SEC and DOT Requirements and Company Financial Statements
143
Sarbanes—Oxley
153
Debt: On Balance Sheet, and Off
153
Industry Capital Requirements
163
Sources of New Capital
168
Asset Sales
169
Additional Investment from Existing Investors, Debt Holders or Equipment Manufacturers
169
New Investors
170
New Airline Partners
171
Trading Labor Concessions for Equity
172
Governmental Economic Assistance
172
The Traditional Debt and Equity Markets
175
Aircraft Lessors
176
CHAPTER 4 ECONOMIC RATIONALITY
Organization
179
Bankruptcy
189
Pension Liability
204
Leveraged Buy Outs
206
Holding Companies
212
Asset Acquisitions and Horizontal Integration
214
Financial Risk
217
CHAPTER 5 LAW AND REGULATION
Introduction
225
Federal Legislation
226
Air Carrier Licensing
228
Certificates of Public Convenience and Necessity
228
Fitness
228
Foreign Ownership Restrictions
231
Carrier Selection for International Routes
232
Transfer of International Routes
233
Foreign-Flag Air Carrier Permits
233
Rates
235
Consumer Protection
235
Federal Preemption of State Regulation
236
Unfair and Deceptive Practices
238
False and Misleading Advertising
238
Oversales
239
Lost or Damaged Baggage
242
Consumer Credit Protection
242
Code Sharing and other Intercarrier Agreements
243
Computer Reservations Systems
245
Contracts of Carriage
246
Smoking
248
Gambling
248
Airline Reporting Requirements
249
Essential Air Service
249
Nondiscrimination
250
Labor Regulation
251
Employment Law
256
Safety Regulation
260
Security Regulation
262
Environmental Regulation
269
Aircraft Ownership, Leasing and Finance
274
The Role of Lawyers in the Airline Business
276
CHAPTER 6 PRODUCT DESIGN: ORGANIZING AND PLANNING
Introduction
279
Airline Organization
280
The Planning Process
286
Route Structures: Hub-and-Spoke vs. Linear Route Systems
294
Route Selection
307
International Routes
310
Fleet Planning
314
Regional Feeders and Franchisees
322
International Alliances
323
CHAPTER 7 MARKETING
Introduction
325
Product Differentiation
329
Determining Consumer Preferences
335
Evolving Consumer Preferences
342
Cabin Configuration
345
Frequent Flyer Programs
347
Developing Synergies from Economies of Scale and Scope
351
Innovation
352
Conservative vs. Aggressive Growth Strategies
353
Performance Monitoring and Evaluation
359
Timing: The Market Cycle
362
Competitive Response
364
Flexibility
368
CHAPTER 8 PRODUCT DELIVERY: OPERATIONS
Introduction
371
Scheduling
372
Maintenance
376
Ground Facilities
378
Security
379
The Airline Business as a Service Industry: The Importance of Human Resources
381
Cabin Service
395
Auxiliary In-Flight Services
401
Auxiliary Non-Flight Services
403
Bundled Travel Services
403
Who Has the Best Product?
406
CHAPTER 9 REVENUE AND INVENTORY MANAGEMENT
Terminology
411
Price and Demand
415
Yield (Revenue) Management
423
Overbooking
437
Types of Fares
438
Types of Fare Restrictions
440
Corporate Discounting
443
Liquidating Unsold Inventory
444
Consumer Savings Under Deregulation: The Ten Billion Dollar Myth
446
CHAPTER 10 PROMOTION AND DISTRIBUTION
Introduction
453
The Evolution of Airline Reservations Systems
455
The Airline Tariff Publishing Company
460
The Big Four Global Distribution Systems
460
Sabre
460
Galileo
461
Amadeus
462
Worldspan
462
Other Computer Reservation Systems
463
Public Policy Concerns
463
CRS Regulation
467
Travel Agents
469
The Airline Reporting Corporation
474
Tour Operators
476
Consolidators
476
Direct Distribution
479
Corporate Travel Departments
483
Corporate Communications
484
Advertising
485
Branding
487
CHAPTER 11 COST CONTAINMENT
Introduction
493
The Impact of the Low-Cost Carriers
494
Overview of Operating Costs
503
Operational and Equipment Costs
507
Service Costs
520
Labor Costs
522
Marketing and Distribution Costs
540
Fuel Costs
547
The Tax Burden
550
Air Traffic Costs
552
Airport Costs
552
Risk Management
554
Conclusion
554
CHAPTER 12 LABOR-MANAGEMENT RELATIONS
Labor Relations History
557
Early Labor Legislation
559
The Railway Labor Act
563
Dispute Resolution
570
Major Disputes
571
Minor Disputes
574
Labor Protective Provisions
575
Employment Discrimination
577
Contemporary Issues
580
American
595
Delta
596
Northwest
601
United
602
Pensions
609
CHAPTER 13 ALLIANCES
Introduction
619
International Marketing Alliances
622
Intercarrier Relationships: Taxonomy
622
Major Costs and Benefits of Airline Alliances
624
Computer Reservations Systems Bias
628
Computer Reservations Systems Alliances
642
Frequent Flyer Program Alliances
643
International Equity Alliances
646
Dating Versus Marriage
646
U.S. Equity Alliances
647
Foreign Equity Alliances
650
The British Air Group
650
The Air France Group
654
The Alcazar Group
655
The Lufthansa Group
656
North American Alliances
657
The Antitrust Dimensions of International Alliances
657
Northwest/KLM—The Hole in the Dyke
657
Antitrust Immunity Since NW/KLM—The Dyke Bursts
659
The Sherman and Clayton Acts
660
Collusion to Restrain Trade
661
Unlawful Monopolization
662
The Federal Aviation Act
664
Emergence of the Global Mega-Carriers
669
Public Policy and International Aviation
675
CHAPTER 14 COMPETITION AND ANTITRUST LAW
Legal Analysis of Predation
681
The Spirit of Free Enterprise
681
The Federal Aviation Act
686
Monopolization Under the Antitrust Laws
693
Expansion of Output or Capacity,
696
Predatory Pricing
698
Price Discrimination
704
Monopoly Leveraging
705
Refusal to Deal with a Competitor
709
Refusal to Share an Essential Facility
710
Raising Rivals' Costs
717
Exclusive Dealing Arrangements
724
Policy Analysis
725
Application of the Competition Laws to Commercial Aviation
725
Recommendations
726
Entry Barriers at Slot-Constrained Airports
729
Conclusions
734
CHAPTER 15 PREDATION
Introduction
743
Empirical Evidence of Predation
747
Hub Concentration
747
Mega-Carrier Alliances
756
Examples of Predatory Pricing by Major Airlines
757
Major Network Airline Competitive Response to Entry by Another Major Network Airline
768
Denver-Philadelphia: United vs. USAIR
769
Minneapolis/St. Paul-Cleveland: Northwest vs. Continental
770
Major Network Airline competitive Response to Entry by Southwest Airlines
771
St. Louis-Cleveland: TWA vs. Southwest
772
St. Louis-Detroit: Northwest vs. Southwest
773
Major Network Airline Predatory Response to New Entrant Airlines
774
Atlanta-Newark: Continental vs. Kiwi
775
Dallas/Ft. Worth-Wichita: American vs. Vanguard
776
Dallas/Ft. Worth-Colorado Springs: Delta and American vs. Western Pacific
779
United Airlines' Response to Markair's Entry at Denver
781
Denver-Seattle: United vs. Markair
781
Denver-San Francisco: United vs. Markair
782
Denver-Atlanta: United vs. Markair
783
United Airlines' Response to Frontier Airlines' Entry at Denver
784
Denver-Tucson: United vs. Frontier
784
Denver-Phoenix: United vs. Frontier
786
Denver-Las Vegas: United vs. Frontier
787
United Airlines' Response to Reno Air's Entry at Denver
789
Denver-Reno: United vs. Reno
789
Summary
790
CHAPTER 16 MONOPOLY POWER
Introduction
795
Minneapolis/St. Paul Fares are Among the Nation's Highest
800
Minneapolis/St. Paul Air Travel Suppressed by High Air Fares
801
Airline Shares of Minneapolis/St. Paul Traffic
803
Northwest Acquires Republic Airlines
811
Northwest Falls to a Leveraged Buy-Out
815
The Corporate Raiders Circle
816
Northwest Struggles with the Debt Burden
817
Northwest's Fleet Age Ascends
818
Labor Bails Out Northwest
819
The State of Minnesota Bails out Northwest
820
Northwest Accuses American Airlines of Predatory Pricing
821
Value Pricing
821
Grown-Ups Fly Free
822
Northwest's Predatory Pricing Lawsuit Against American Airlines
822
Northwest's Response to New Entrant Airlines
824
Northwest vs. Reno Air
827
Northwest vs. Spirit Airlines
830
Northwest vs. Pro Air
833
Northwest vs. Western Pacific Airlines
834
Northwest vs. Kiwi International
835
Northwest vs. Access Air
835
Northwest vs. Valujet/Airtran
836
Northwest vs. Vanguard Airlines
838
Northwest vs. Sun Country Airlines
840
Sun Country Airlines Begins Scheduled Service at Minneapolis/St. Paul
840
Northwest Drops Fares Sharply
843
Northwest Expands Capacity
850
Northwest Capacity Growth has been Directed Toward its Lowest Margin Routes
854
Northwest vs. Frontier Airlines
854
DOT Policy on Unfair Exclusionary Practices
856
Northwest's Defense to Allegations that it Engages in Predatory Conduct
861
Conclusion
865
CHAPTER 17 STRATEGIC PLANNING
Planning
875
Mission and Objectives
878
Environmental Scanning
883
Full Service Carriers
886
Family of Products
888
Hub-and-Spoke Systems
891
Linear Route, Point-to-Point Carriers
897
The Regional Carriers
899
Fractional Ownership
900
Small Aircraft Transportation System
904
Micro-Level Strategies
905
Strategy Formulation
917
The Fundamental Problem
921
Mutual Aid
924
CHAPTER 18 STRATEGIES
Strategy Implementation
927
Rubricizing
927
Evolving Categories Under Deregulation
931
Market Rationalization
932
Evaluation and Control
939
Null Alternative
939
Deregulate
943
Communism
945
Socialism
946
Capitalism
947
Libertarian Theory
949
Islands in the Stream
950
Regulate
953
Alternative Selection
961
The Worker-Owner Model
962
Social Regulation
970
Conclusion 982