Solutions for improving the partnership between airport and airline companies
Abstract
Purpose – For every country’s economy, air transport is strategically and vitally important. For improving the quality of air transport services provision, partnerships between airports and airlines need to be encouraged more. The application of partnerships leads to quality improvements of services provided by companies and raises the efficiency of used practices. A number of the factors, which determine the effective partnership between organisations operating in the aviation sector, is examined on the basis of specialised literature. The study addresses the question of how organisations interact with each other and what factors determine the need for partnership. Having identified common factors in the organisation’s operational interface and the need for it in the aviation sector and having analysed the practical examples of partnerships, the ways to enhance these factors are explored in order to achieve effective partnerships between airports and airlines.
Research methodology – consists of comparative analysis, methods of logical analysis and abstraction, multi-criteria evaluation.
Findings – The solution to the problem is expressed by identifying the factors of an effective partnership between the airports and the airlines and selecting the criteria for the assessment of the favourable effects of airport cooperation activities, and their hierarchical schemes from the positions of the airlines.
Practical implications – Using multi-criteria assessment methods is easy to construct matrices of initial estimates, calculate final estimates and thus decide which airport is the most appropriate partner for an airline or vice versa.
Originality/Value – A unique and, at the same time, a universal system of criteria, the application of which provides the preconditions for the development of the partnership, is created.
Research limitations – The availability of data is limited to determine the reasonable values of the partnership criteria.
Keyword : aviation sector, airports, airlines, partnership, criteria, multi-criteria evaluation
How to Cite
Tunčikienė, Živilė, & Katinas, R. (2020). Solutions for improving the partnership between airport and airline companies. Business, Management and Economics Engineering, 18(2), 247-264. https://doi.org/10.3846/bme.2020.12712
This work is licensed under a Creative Commons Attribution 4.0 International License.
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Gillen, D., Hasheminia, H., & Jiang, C. (2015). Strategic considerations behind the network-regional airline tie ups – A theoretical and empirical study. Transportation Research Part B: Methodological, 72, 93–111. https://doi.org/10.1016/j.trb.2014.09.001
Goh, M., & Yong, J. (2006). Impacts of code-share alliances on airline cost structure: A truncated third-order translog estimation. International Journal of Industrial Organization, 24(4), 835–866. https://doi.org/10.1016/j.ijindorg.2005.09.012
Görener, A., Ayvaz, B., Kuşakcı, A. O., & Altınok, E. (2017). A hybrid type-2 fuzzy based supplier performance evaluation methodology: The Turkish Airlines technic case. Applied Soft Computing Journal, 56, 436–445. https://doi.org/10.1016/j.asoc.2017.03.026
Gudiel Pineda, P. J., Liou, J. J. H., Hsu, C. C., & Chuang, Y. C. (2018). An integrated MCDM model for improving airline operational and financial performance. Journal of Air Transport Management, 68, 103–117. https://doi.org/10.1016/j.jairtraman.2017.06.003
Halpern, N., & Graham, A. (2015). Airport route development: A survey of current practice. Tourism Management, 46, 213–221. https://doi.org/10.1016/j.tourman.2014.06.011
Halpern, N., & Regmi, U. K. (2013). Content analysis of European airport websites. Journal of Air Transport Management, 26, 8–13. https://doi.org/10.1016/j.jairtraman.2012.08.006
Hsu, C. C., & Liou, J. J. H. (2013). An outsourcing provider decision model for the airline industry. Journal of Air Transport Management, 28, 40–46. https://doi.org/10.1016/j.jairtraman.2012.12.009
Hsu, Y. L., Li, W. C., & Chen, K. W. (2010). Structuring critical success factors of airline safety management system using a hybrid model. Transportation Research Part E: Logistics and Transportation Review, 46(2), 222–235. https://doi.org/10.1016/j.tre.2009.08.005
Huang, S. H. S., & Hsu, W. K. K. (2016). Evaluating the service requirements of combination air cargo carriers. Asia Pacific Management Review, 21(1), 1–8. https://doi.org/10.1016/j.apmrv.2015.05.001
Huderek-Glapska, S., & Nowak, H. (2016). Airport and low-cost carrier business relationship management as a key factor for airport continuity: The evidence from Poland. Research in Transportation Business and Management, 21, 44–53. https://doi.org/10.1016/j.rtbm.2016.07.004
IATA. (2011). Airports Council International (ACI) World Annual General Assembly, Marrakech. https://www.iata.org/en/pressroom/speeches/2011-11-02-01/
Industry High Level Group. (2018). Aviation Benefits Report. 2. https://www.icao.int/sustainability/Pages/IHLG.aspx
International Civil Aviation Organization. (2017). Aviation for a better future. ICAO Journal, 72(4).
Jurevičienė, D., Skvarciany, V., & Lagunavičiūtė, A. (2020). Factors influencing individuals’ decision-making and causing financial crisis. Journal of Business Economics and Management, 21(4), 1149–1164. https://doi.org/10.3846/jbem.2020.12890
Keshavarz Ghorabaee, M., Amiri, M., Zavadskas, E. K., Turskis, Z., & Antucheviciene, J. (2017). A new hybrid simulation-based assignment approach for evaluating airlines with multiple service quality criteria. Journal of Air Transport Management, 63, 45–60. https://doi.org/10.1016/j.jairtraman.2017.05.008
Kraujalienė, L. (2019). Comparative analysis of multicriteria decision-making methods evaluating the efficiency of technology transfer. Business, Management and Education, 17(1), 72–93. https://doi.org/10.3846/bme.2019.11014
Kucuk Yilmaz, A., Malagas, K. N., Nikitakos, N., & Bal, H. T. (2018). Modeling regional routes with Greek airlines for flight operations to AOE airport. Aircraft Engineering and Aerospace Technology, 90(8), 1227– 1237. https://doi.org/10.1108/AEAT-12-2017-0267
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