The study examines actual entry and exit dynamics in the German airline market in light of the European liberalization process. For this purpose, flight schedules data was used to derive entry and exit statistics for a set of chosen inner-German routes over a period of thirteen years. Data was analysed in cross-sectional and longitudinal manner while identifying different entry waves and examining incumbent behaviour with respect to entry deterrence strategies. Furthermore, the market’s concentration and structure was tracked to allow a conclusion with respect to the market’s contestability after liberalization. The results suggest the existence of remaining structural barriers to entry and depict a rather unsatisfactory overall state of the post liberalized market.
The book starts from the premise that the current aviation framework, in Brazil, cannot sustain a full liberalisation in the long run. While the competition rules in place offer a strong framework, which only requires small modifications, these rules are not "enough" to foster a "healthy" liberalisation. In fact, until recently, Brazilian airlines were operating in a homogenous market, where competition was artificial. This artificial competition, obtained through the imposition of a legal obligation to provide water and a snack and grant a 23kg bag allowance, has resulted in a highly concentrated domestic market with very few players. Compared to other same size markets, such as China or India, Brazil is far behind in terms of airlines operating at national level. Consequently, the opening of the domestic market must be closely regulated to avoid national carriers suffocating under external pressure. For this reason, state intervention during the liberalisation process is crucial. State intervention is also with regard to the protection of passengers. The other major problem is the protection framework for passengers which is much too uncertain and burdensome. In a sense, it is detrimental to the domestic market and passengers. Indeed, there is no harmonisation of passenger compensation leading to contradictory judgments and possible high moral damages which hinders legal certainty for airlines. Compared to the situation in the EU, in Brazil, airlines have a limited range of defences, which are often dismissed by courts. This book, therefore, critically analyses the policies and regulations in place by mainly comparing the Brazilian framework to the European one. This choice has been motivated by the fact that European liberalisation is considered the best so far, and as Brazil is starting this process much later, it could benefit from the European experience. This book will be of particular interest to scholars and practitioners interested in the Brazilian system.
This book reviews and critically analyzes the current legal framework with regard to a more just culture for the aviation sector. This new culture is intended to protect front-line operators, in particular controllers and pilots, from legal action (except in the case of willful misconduct or gross negligence) by creating suitable laws, regulations and standards. In this regard, it is essential to have an environment in which all incidents are reported, moving away from fears of criminalization. The approach taken until now has been to seek out human errors and identify the individuals responsible. This punitive approach does not solve the problem because frequently the system itself is (also) at fault. Introducing the framework of a just culture could ensure balanced accountability for both individuals and complex organizations responsible for improving safety. Both aviation safety and justice administration would benefit from this carefully established equilibrium.
The study examines actual entry and exit dynamics in the German airline market in light of the European liberalization process. For this purpose, flight schedules data was used to derive entry and exit statistics for a set of chosen inner-German routes over a period of thirteen years. Data was analysed in cross-sectional and longitudinal manner while identifying different entry waves and examining incumbent behaviour with respect to entry deterrence strategies. Furthermore, the market’s concentration and structure was tracked to allow a conclusion with respect to the market’s contestability after liberalization. The results suggest the existence of remaining structural barriers to entry and depict a rather unsatisfactory overall state of the post liberalized market.
This groundbreaking book offers a critical and wide-ranging assessment of the global air transport liberalization process over the past 40 years. This compilation of world experts on air transport economics, policy, and regulation is timely and significant, considering that air transport is currently facing a series of new challenges due to technological changes, the emergence of new markets, and increased security concerns.
This book aims to provide comprehensive coverage of the field of air transportation, giving attention to all major aspects, such as aviation regulation, economics, management and strategy. The book approaches aviation as an interrelated economic system and in so doing presents the “big picture” of aviation in the market economy. It explains the linkages between domains such as politics, society, technology, economy, ecology, regulation and how these influence each other. Examples of airports and airlines, and case studies in each chapter support the application-oriented approach. Students and researchers in business administration with a focus on the aviation industry, as well as professionals in the industry looking to refresh or broaden their knowledge of the field will benefit from this book.
The second edition of Rigas Doganis' book brings the airline industry story up to date, exploring airline mergers and alliances, price wars, the impact of disasters and the future prospects for the industry as a whole.
Extensively revised and updated edition of the bestselling textbook, provides an overview of recent global airline industry evolution and future challenges Examines the perspectives of the many stakeholders in the global airline industry, including airlines, airports, air traffic services, governments, labor unions, in addition to passengers Describes how these different players have contributed to the evolution of competition in the global airline industry, and the implications for its future evolution Includes many facets of the airline industry not covered elsewhere in any single book, for example, safety and security, labor relations and environmental impacts of aviation Highlights recent developments such as changing airline business models, growth of emerging airlines, plans for modernizing air traffic management, and opportunities offered by new information technologies for ticket distribution Provides detailed data on airline performance and economics updated through 2013
Air transport industry finance, with its complexity and special needs such as route rights, airport slots, aircraft leasing options and frequent flyer programmes, requires specific knowledge. While there are numerous financial management and corporate finance texts available, few of these provide explanations for the singularities of the airline industry with worked examples drawn directly from the industry itself. Revised and updated in its third edition, this internationally renowned and respected book provides the essentials to understanding all areas of airline finance. Designed to address each of the distinct areas of financial management in an air transport industry context, it also shows how these fit together, while each chapter and topic provides a detailed resource which can be also consulted separately. Supported at each stage by practical airline examples, it examines the financial trends and prospects for the airline industry as a whole, contrasting the developments for the major regions and airlines. Important techniques in financial analysis are applied to the airline industry, together with critical discussion of key issues. Thoroughly amended and updated throughout, the third edition reflects the many developments that have affected the industry since 2001. It features several important new topics, including Low Cost Carriers (LCCs), fuel hedging and US Chapter 11 provisions. The sections on financial statements and privatisation have been expanded, and a new chapter has been added on equity finance and IPOs. New case studies have been added, as well as the latest available financial data. The range and perspective is even greater than before, with significant expansion of material specific to the US and Asia. The book is a key resource for students of airline management, and a sophisticated and authoritative guide for analysts in financial institutions and consultancies, executives in airlines and related industries, and civil aviation departments.
Document from the year 2018 in the subject Business economics - Investment and Finance, grade: A, Post University, language: English, abstract: This paper tries to outline the reasons why AirBerlin went into bankruptcy. The reasons are being presented from a financial perspective, presenting the necessary financial data that resulted in the financial loss of the firm, as well as the economic perspective that led to this disaster. Furthermore, troubles in the whole airline industries of recent decades are being highlighted through out the paper. The Air Berlin PLC & Co. Luftverkehrs KG i.I, with seat in Berlin and basis on the airport Berlin Tegel was a German airline. It was a wholly owned subsidiary of the listed Air Berlin PLC, whose largest single shareholder was the Emirati Etihad Airways. On 15 August 2017, Air Berlin requested the opening of insolvency proceedings, the self-economic operation was continued with the help of a federal guarantee until 27 of October 2017. Parts of the company, including the business at Tegel Airport and its subsidiary LGW, were sold to Lufthansa and easyJet. The last airline of Air Berlin, Belair, filed for bankruptcy in mid-August 2018. In order to work out the causes for this bankruptcy, I will also give some more insight on the history of the company.
