• Title/Summary/Keyword: U.S. Airline Industry

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The Effects of Airline Deregulation: A Comparative Analysis

  • Kim, Dongho
    • Asian Journal of Business Environment
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    • v.6 no.3
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    • pp.5-10
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    • 2016
  • Purpose - The purpose of this study is to explore and examine the effects of airline deregulation in the United States and South Korea as a comparative analysis. The study focuses on identifying the purposes of airline deregulation and analyzing its benefits and consequences. Research Design, Data, and Methodology - This is a case study, a comparative method, which analyzes and measures the benefits and disadvantages of airline deregulation in both the United States and South Korea. Results - Airline deregulation removed unnecessary and ineffective government controls, resulting in more efficient airline industries in both countries. However, the negative consequences are much greater than the benefits of airline deregulation. Conclusion - The purpose of airline deregulation was to foster an efficient and effective environment in airline industry, and clear evidence of the positive intended effects of airline deregulation e.g., increasing domestic competition, decreasing airfare, increasing productivity, and removing unnecessary government regulations in the beginning of airline deregulation. However, the current state of airline industry in both countries depicts only the consequences of airline deregulation.

An Empirical Study of the Effect of the Internet on Fares in the U.S. Airline Industry

  • LEE, HWA RYUNG
    • KDI Journal of Economic Policy
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    • v.37 no.1
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    • pp.1-18
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    • 2015
  • A reduction in search costs is generally believed to make markets more competitive. However, the effect may be mitigated or amplified if consumers must pay costs for switching products. This paper investigates how search costs affect prices in the presence of switching costs using U.S. domestic airfare data for 2000-2010. The airline industry experienced a dramatic decrease in search costs with increasing Internet use in the 2000s. At the same time, the industry is known for its frequent flyer programs (FFPs), which increase switching costs for consumers. We use the average network size of airlines in a market as a proxy for switching costs related to FFPs and Internet usage as a proxy for (the inverse of) search costs. The results show that increasing Internet usage lowers airfares but that the effect is smaller for markets with a larger average network size.

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Will You Buy It Now?: Predicting Passengers that Purchase Premium Promotions Using the PAX Model

  • Al Emadi, Noora;Thirumuruganathan, Saravanan;Robillos, Dianne Ramirez;Jansen, Bernard Jim
    • Journal of Smart Tourism
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    • v.1 no.1
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    • pp.53-64
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    • 2021
  • Upselling is often a critical factor in revenue generation for businesses in the tourism and travel industry. Utilizing passenger data from a major international airline company, we develop the PAX (Passenger, Airline, eXternal) model to predict passengers that are most likely to accept an upgrade offer from economy to premium. Formulating the problem as an extremely unbalanced, cost-sensitive, supervised binary classification, we predict if a customer will take an upgrade offer. We use a feature vector created from the historical data of 3 million passenger records from 2017 to 2019, in which passengers received approximately 635,000 upgrade offers worth more than $422,000,000 U.S. dollars. The model has an F1-score of 0.75, outperforming the airline's current rule-based approach. Findings have several practical applications, including identifying promising customers for upselling and minimizing the number of indiscriminate emails sent to customers. Accurately identifying the few customers who will react positively to upgrade offers is of paramount importance given the airline 'industry's razor-thin margins. Research results have significant real-world impacts because there is the potential to improve targeted upselling to customers in the airline and related industries.

A Study on the Promotion of Approved Maintenance Organization Consulting for the Development of MRO Industry (항공정비산업 육성을 위한 정비조직인증 컨설팅 방안 연구)

  • SeungJu Nam;Jaehyun Cho;Jungho Kim;Woon-Kyung Song
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.30 no.4
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    • pp.33-44
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    • 2022
  • As the majority of Korean MRO demand is outsourced overseas, AMO by major foreign authorities is required to promote the Korean MRO industry to keep Korean MRO demand on shore. This study aims to promote consulting for AMO (obtaining repair station certification) by U.S. Federal Aviation Administration (FAA) for Korean maintenance companies. We analyzed AMO process, studied various industry cases, developed a model for AMO consulting, and identified core competencies for consultants. We suggested a five-step modified Milan model to apply AMO consulting process. We identified seven core competencies (ethics, communications, problem-solving, technical, relationship, resource management, organizational understanding) both social and technical for consultants. Additionally, we text analyzed more than 260 FAA AMO consultant resumes on Linkedin and interpreted frequent words (airline, audit, inspector, DER, regulation, ISO, system) to their competencies. This study contributes to promote consulting for the Korean MRO industry to be recognized by FAA and to develop the Korean MRO industry.

Aesthetic Characteristics of Glocalism in Flight Attendants' Uniform Design

  • Kim, Ji U;Kim, Jang Hyeon;Kim, Young Sam
    • Fashion & Textile Research Journal
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    • v.17 no.1
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    • pp.42-52
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    • 2015
  • This study considers the expressive types of 'Glocalism' trends and its inherent aesthetic characteristics through the analysis of flight attendants' uniform design. The following is the conclusions regarding the glocalism trend according to the analysis of airline uniform design that reflect it. First, the design approach was developed appropriating the whole or parts of traditional attire and applying decorative items in terms of a formal aspect. Secondly, the colors of the airline's homeland symbols or natural environment were used while, thirdly, the fabrics represent glocalism by employing folk elements of the region and patterns of nature for a uniform design. Induced from these design analyses, the aesthetic characteristics of airline uniforms reflecting glocalism are traditionality, naturality, and compromisability. To begin with, traditionality is what is realized in interpreting the historical aesthetics in a contemporary perspective, contributing in inspiring the historical value of the homeland and contributing to the establishment of identity by applying forms and colors of traditional garments with folk patterns on a uniform design. In addition, naturality means the reorganization of unprocessed pure nature, expressing the image of nature through colors taken from the natural environment or motifs of the regional plants. Finally, combining general sensibilities with diverse cultural features, compromisability is realized as a modern design which combines a standardized uniform with the aesthetic components of the local environment and traditional garments.

Study of Strategic Alliance and Anti-Trust Immunity on Airline Industry (전략적 제휴와 독점금지예외조항에 관한 연구)

  • Hong, Seock-Jin;Kim, Je-Chul
    • The Korean Journal of Air & Space Law and Policy
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    • v.19 no.1
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    • pp.37-56
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    • 2004
  • As part of the ongoing global process of airlines forming strategic alliances, Korean Air has become a member of the SkyTeam Alliance, while Asiana has joined the Star Alliance. However, as something akin to the Anti-Trust Immunity(ATI) initiative has not been ratified domestically, these two airlines have seen their roles within these strategic alliances significantly reduced. In keeping with its domestic airline liberalization policy the U.S. government has instituted a mechanism through which foreign airlines that join such strategic alliances with their American counterparts can be exempt from the U.S. antimonopoly law. As a result, U.S. airlines have been able to forge wide ranging cooperative relations with foreign airlines, and thus increased their competitiveness within the air transport industry. This study analyzes the applicability of this Anti-Trust Immunity initiative to the domestic environment.

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Comparative review of the guidelines for the infection prevention and control in the cabin during flight - Focused on the guidelines of U.S., Canada, E.U., Australia and China (운항 중 항공기 내 감염병 확산 방지를 위한 해외 주요 지침의 대응 요소 분석 연구 - 미국, 캐나다, 유럽연합, 호주, 중국의 객실 운영지침을 중심으로)

  • Yoon, Hyung Jin;Wang, Soomyung;Choi, Seunglee
    • Journal of The Korea Institute of Healthcare Architecture
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    • v.26 no.3
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    • pp.7-16
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    • 2020
  • Purpose: As communicable disease, COVID-19, pandemic strikes over the world, it is critically bewared that air travel possibly be a major pass way to deliver the infectious disease virus. Especially the airplane could be an unique environment to cultivate the virus spreaders. In order to keep the continuous safe airway as well as the industry, related international associations and organizations have been published the guidelines for the prevention and control the infectious disease through the all aspects of aviation. By reviewing the guidelines, focusing on the in-flight infection prevention and control, this study would not only inform a summary of the international guidelines but also provide an essential and general consideration for related research or guideline study. Methods: Guidelines of 5 major countries are reviewed, which has been seriously influenced by COVID-19 : U.S., Canada, E.U., Australia and China. The items of the guidelines are re-categorized as its similarity and structure by applicable cases. Results: The result of this study shows that each guideline seems to share a major structure and issue such as identifying sick traveler, sick passenger care, and cleaning even though that of China has a different since it used to consider the flight conditions based on 3 levels of infection risk. For sick passenger care, the guidelines includes crew safety, service level, sick passenger isolation, and cleaning. Implications: A published guideline as a public manual could be to prevent and control the in-flight infection efficiently and promptly. It also could provide a confidence of knowledge and educate for all users to prepare the in-flight emergency as well.

A Study on the Legal Proposal of Crew's Fatigue Management in the Aviation Regulations (항공법규에서의 승무원 피로관리기준 도입방안에 관한 연구 - ICAO, FAA, EASA 기준을 중심으로 -)

  • Lee, Koo-Hee;Hwang, Ho-Won
    • The Korean Journal of Air & Space Law and Policy
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    • v.27 no.1
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    • pp.29-73
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    • 2012
  • Aviation safety is the State and industry's top priority and more scientific approaches for fatigue management should be needed. There are lately various studies and regulation changes for crew fatigue management with ICAO, FAA and EASA. ICAO issued the provisions of fatigue management for flight crew since 1st edition, 1969, of Annex 6 operation of aircraft as a Standards and Recommended practice(SARPs). Unfortunately, there have been few changes and improvement to fatigue management provisions since the time they were first introduced. However the SARPs have been big changed lately. ICAO published guidance materials for development of prescriptive fatigue regulations through amendment 33A of Annex 6 Part 1 as applicable November 19th 2009. And then ICAO introduced additional amendment for using Fatigue Risk Management System (FRMS) with $35^{th}$ amendment in 2011. According to the Annex 6, the State of the operator shall establish a) regulations for flight time, flight duty period, duty period and rest period limitations and b) FRMS regulations. The Operator shall implement one of following 3 provisions a) flight time, flight duty period, duty period and rest period limitations within the prescriptive fatigue management regulations established by the State of the Operator; or b) a FRMS; or c) a combination of a) and b). U.S. FAA recently published several kinds of Advisory Circular about flightcrew fatigue. U.S. passed "Airline Safety and FAA Extension Act of 2010" into law on August 1st, 2010. This mandates all commercial air carriers to develop a FAA-acceptable Fatigue Risk Management Plan(FRMP) by October 31st, 2010. Also, on May 16, 2012, the FAA published a final rule(correction) entitled 'Flightcrew Member Duty and Rest Requirements; correction to amend its existing prescriptive regulations. The new requirements are required to implement same regulations for domestic, flag and supplemental operations from January 4, 2014. EASA introduced a Notice of Proposed Amendment (NPA) 2010-14 entitled "Draft opinion of the European Aviation Safety Agency for a Commission Regulation establishing the implementing rules on Flight and Duty Time Limitations and Rest Requirements for Commercial Air Transport with aeroplanes" on December 10, 2010. The purpose of this NPA is to develop and implement fatigue management for commercial air transport operations. Comparing with Korean and foreign regulations regarding fatigue management, the provisions of ICAO, FAA, EASA are more considering various fatigue factors and conditions. Korea regulations should be needed for some development of insufficiency points. In this thesis, I present the results of the comparative study between domestic and foreign regulations in respect of fatigue management crew member. Also, I suggest legal proposals for amendment of Korea Aviation act and Enforcement Regulations concerning fatigue management for crew members. I hope that this paper is helpful to change korea fatigue regulations, to enhance aviation safety, and to reduce the number of accidents relating to fatigue. Fatigue should be managed at all level such as regulators, experts, operators and pilots. Authority should change surveillance mind-set from regulatory auditor to expert adviser. Operators should identify various fatigue factors and consider to crew scheduling them. Crews should strongly manage both individual and duty-oriented fatigue issues.

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