According to the study published by EUROCONTROL in July 2009 factors that may influence the transport of passengers may be:
• airport security measures
Security particularly affects air transport and reduces its competitiveness in the transport market. Airport security is key. However, 100% secure airport transit is impossible to guarantee; and related costs and inconvenience are becoming paramount. Airport security checks affect the willingness of the passengers to travel. This was seen after 9/11 with increased restrictions and new, drastic procedures. This has caused inconvenience to the passenger, and has also increased airport operating costs by USD 0.5 per passenger. This may not seem a great deal, but - when multiplied by a couple of
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On the one hand, this assumes that the network will be established to these locations, and on the other, it assumes that it will not continue further, to Scotland. Extension to Scotland would potentially capture a much larger share of domestic UK air traffic. A high speed network 2 will be vital to the success of regional airports. HS2 will link the three airports of Birmingham, Manchester and East Midlands with London. Furthermore, journey times will be competitive - a journey from London Euston to Birmingham Airport will be less than 50 minutes and approximately 65 minutes to Manchester - in comparison the Heathrow Express service to London Paddington takes 25 …show more content…
The air travel demand is not only needed by the airport planner but also the airlines, the manufactures, the sub-system suppliers and national transport planning all need forecasts of air transport activity. All this activity of passenger air transport is organized under the umbrella of profitability. If the money invested in this area of unprofitable capital will refocus other economic areas.
4.1 Empirical Approaches on Determinants of Air Transport Demand
Among the studies that have examined various aspects of analysis and forecast demand for air transport mention:
Study conducted by Ghobrial (1992), presents an econometric model that estimates the aggregate demand for an airline. The demand is expressed in terms of airline network structure, operating characteristics and firm-specific variables. Model formulations with various combinations of explanatory variables are estimated using a two-stage least-square procedure. The results indicate that ‘airline aggregate demand’ is elastic with respect to yield, and inelastic with respect to network size and hub
With security concerns paramount, each plane had to be searched and every passenger
Airport security has intensified throughout the United States since the terrorist attacks in 2001. Airport security has intensified by having peoples ID Name and picture must match what is on ticket. Before 9/11 there was no way to tell that if the passenger 's name and picture
After 9/11 the U.S saw a birth of fear in all of its citizens. It caused everyone to become fearful of the future because nobody knew what was coming next. As a result, many citizens prefer to travel less because the fear of hijackers. Even though it can be cheaper to travel by plane most prefer to spend more money driving than risking getting on a plan that might be hijacked.
Airports now take full measure against any security risks and have invested a lot of money into the safety of traveling via planes. Immigration after 9/11 has become a bigger thought than it already was. The funding to enforce immigration has increased drastically since this day and hasn’t stopped. One thought is that if the deportation of criminals increases than we are one step closer to fighting terrorism. Pabst
Luggage and passenger screening are now more detailed and passengers must have a ticket to go past the gate. II. New procedures were introduced such as removing jewelry, shoes, liquids etc. when going through security. III.
For worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory
Competitiveness Airports operate in a highly competitive environment and therefore encourage developments which make the airport sector more responsive to the needs of their passenger and airline customers. Competition in the airline sector has been a driver of innovation and cost reduction and has delivered major benefits for consumers in terms of increased choice and value. Effective competition between airports is clearly something to be encouraged for the same reasons. “Within the aviation industry, MRO, ground handling, catering, CRS and freight forwarding created economic profits, but these were much more than offset by economic losses by airlines and airports. Airlines were responsible for the large USD17 billion of economic losses globally.
Economic Environment Factors such as Crude oil prices, aircraft prices, Economies of Scale may also have effect on the airline industry. Social Environment Tourists and Business travellers contribute to the growth of the airline industry. Technological The use of modern technology by the airline manufacturers can contribute significantly to the growth of the
Social Growing competition and capacity amongst airlines, lower air fares and more relaxed travel restrictions in many regions have made international travel a viable option for an increasing number of people coming to
• Threat of substitute goods: Threat of substitute good is high in this industry. If a private company or government introduces any fast road transportation services in the United States, then traveling through airline can reduce. Air travel is somehow costlier than road transport. If the same kind of leisure will be provided in public transport with greater speed, then the share of airline industry can decline. This threat can be reduced if their products offer more value than other substitute
With a rise in fuel prices and environmental factors (such as terrorist threats) reducing air travel, airlines continue to struggle. In union environments, where staff (like pilots and flight attendance) is heavily unionized, the industry has not been able to cut their labor costs. New low-cost industry entrants are adding to the pressure the traditional
Hong Kong International Airport (HKIA) is the winner of the 2017 Award for “World’s Best Airport Dining Experience” and 3rd place in “World’s Best Airport Shopping”, in the following I will discuss on the strength(s) and weakness(es) of HKIA in the area of dining and shopping when compared to the other airport listed in the question. Concerning dining, the strength of HKIA is their restaurants provide the food with comparatively low price. Some of the passengers may have an impression that it is expensive to eat inside the airport, but there are some restaurants in HKIA provide the food with the price lower HKD$50. With this price, passengers can choice either fast food or Chinese restaurants in which the size of food could let them feel full. Moreover, passengers can try for local food.
AirportAirports are of significant economic importance to regional businesses and to the quality of life of residents by providing access to safe, secure, rapid, affordable air transportation services. With the airport operating as a public utility, an inventory of airport stakeholders and their objectives is required to form the basis for evaluating the airport’s performance. To examine the role of the airport stakeholders a precise definition of stakeholders and their goals for the airport is necessary. With the airport operating as a public utility, an inventory of airport stakeholders and their objectives is required to form the basis for evaluating the airport’s performance. To examine the role of the airport stakeholders a precise definition of stakeholders and their goals for the airport is necessary.
For instance, with the global financial crisis and later the Eurozone crisis, the number of travellers has significantly reduced due to economic hardships. This has affected the profit levels of the airline as well as slowed down its growth prospects. The airline also faces intense competition from other low cost airlines forcing it to extensively invest in product differentiation to counter the competition. This is an expensive
In the airline industry, we can distinguish six categories of inputs. Firstly, labour input refers to the number of employees a corporation has. Secondly, there is fuel input. Thirdly, the capital input includes the number of aircrafts a company owns through purchase