Incumbent responses to low-cost airline entry and exit: A spatial autoregressive panel data analysis

While the US airline industry has been substantially transformed in recent years by the growth of low-cost airlines, the cost-saving benefits of lower airfares are difficult to gauge empirically. There are two important ways in which this paper contributes to the existing literature on the impact of the low-cost carriers (LCCs). First, the availability of route-level panel data allows us to examine the role of the LCCs in the long-run adjustment of airfares as well as the responses of the incumbent carriers to LCC entry and exit in a dynamic setting. Second, we capitalize on recent developments in spatial econometrics and explicitly model the spatial dependence among adjacent airline routes, an issue often ignored by previous studies. Although most of the pro-competitive effects of LCC entry take place after entry, we find evidence that the incumbent carriers also cut airfares in anticipation of entry by the LCCs. Moreover fares remain lower even after Southwest Airlines exits. Our empirical analysis confirms the spatial dependence among airfares in adjacent routes, provides estimates of the consumer benefits from lower airfares in routes affected by LCCs, and shows that there are substantial indirect benefits, i.e. lower fares in spatially-linked, nearby routes.     

Can long-haul low-cost airlines be successful?

A key question is whether the very successful, largely short-haul LCC business model can work over long-haul sectors? This paper compares the cost and other advantages of LCCs and evaluates how far they might be applied to long-haul sectors. It is estimated that cost advantages might be much lower than the 50-60% on short-hauls. Other factors such as the adoption by network airlines of some LCC features and their likely competitive response, the limited potential for market stimulation, the need for dense markets and feed traffic all combine to cast doubt on the widespread establishment of the business model for long-haul flights.     

Some insights into competition between low-cost airlines

The phenomenon of the wide world growth in low-cost airlines has resulted in a focus on their pricing strategies, on issues of cost recovery and on their impact on the traffic and market shares of legacy carriers or other low-cost carriers when they are in competition, either directly or at adjacent airports.This paper provides a brief overview of the characteristics of these low-cost carriers as well as their history and geography. It goes on to outline ways in which these carriers compete and manage demand, ranging from price competition to advertising; some of these methods directly reflect their special characteristics. Some empirical evidence is presented which indicates a correlation in fare setting behaviour between competitors and insights are offered on cost recovery.The impact of the start-up of low-cost carriers is also analysed, focusing on their impacts on other low-cost carriers. The case of Ryanair competing with easyJet on London-Venice is examined along with Southwest and Frontier on Denver-Las Vegas.     

The implications of the re-establishment of direct links across the Taiwan Strait on the aviation industries in Greater China

This paper investigates the economic implications of the liberalization of air transportation across the Taiwan Strait to the region's aviation industries. Our analysis suggests that (1) liberalization has brought substantial benefits to airports and airlines in Mainland China and Taiwan. Negative impacts to Hong Kong are largely compensated by traffic increase in routes linking Mainland China. (2) In general, Taiwanese airports and airlines have benefited more from liberalization compared to airports and airlines on the mainland and Hong Kong. Such asymmetric effect is due to the larger size of the Mainland Chinese aviation market, which allows Taiwanese airlines to exploit network-related benefits. (3) Our investigation suggests that foreign hub carriers and medium sized Chinese airports will benefit most from China's future liberalizations.     

Low-cost carriers in Asia: Deregulation, regional liberalization and secondary airports

While the demand for low-cost air transportation is potentially huge in Asia, development of low-cost carriers (LCCs) lags behind the region's overall aviation development, and certainly lags behind the LCC development in North America and Europe. It has been noted that market conditions and the regulatory environment of Asia are different from those of North America and Europe. What are the main differences here; and how do these differences impact market entry and success of Asian LCCs? This paper describes salient features of Asian LCCs and their developments. It examines the impact of Asia's domestic and international airline regulations and airport infrastructure on the performance of its LCCs. We find that the “Southwest effect” may also exist in Asia and that the development of low-cost terminals may compensate, at least partly, the scarcity of secondary airports in the region. The experiences of Thailand and China are investigated as case studies.     

Concepts of strategic commercial location: the case of container ports

A World that shrinks with progressive improvements in transportation and communications is a fact of 20th century life. The shrinking process can produce new patterns and perceptions of strategic location. In this paper we are looking specifically at nodes in transportaion system. In the ligth of transportation progress, we re-consider some of the time-worn ideas about centrality, accessibility, gateway locaations, junction, transit points, and the like. Do some of these notions become irrelevant in the modern transport age? Is it a questions f shifting geographical scale? Do we need more sophisticated concepts of strategic location? We suggest the answer 'yes' to all three questions. Our illustrations come from an examination of the world's top-ranked container ports. We give primary emphasis to the external geographical relationships of the ports, that is to situational aspects (not to say, however, that sitefeatures are inconsequetial). We are interested in the seaports users' —i.e., carriers and shippers—perceptions of strategic location. Readily available container throughput data provide and initial platform for empirical research but also give proof that some commercial interests find these ports strategically important to their system.     

Will China’s airline industry survive the entry of high-speed rail?

This study investigates the effects of high-speed rail (HSR) services on Chinese airlines. Our analysis suggests that the HSR service will be competitive in terms of network connectivity, total travel time and cost efficiency. On the other hand, growth of the Chinese airline industry has been unbalanced in terms of traffic distribution, airline network development, airport capacity and share of international traffic. While the long term prospects of Chinese airlines are bright, the carriers must develop effective hub-and-spoke networks and increase their competitiveness in international markets in order to achieve sustainable growth in the coming years. For the Chinese government, continued investment at hub airports and support to low-cost carriers are also necessary.     

Measuring the effect of low-cost carriers on regional airports' commercial revenue

This paper measures the effect of low-cost carriers (LCCs) on British regional airports' commercial revenue using panel data analysis. The evidence shows that although LCCs have significant impact on airports' commercial revenue, their contribution is smaller compared to other carriers. The empirical results indicate that holding other variables constant, on average, each additional LCC passenger boosts airport commercial revenue by £2.87, while each additional other carrier passenger raises commercial revenue by £5.59. These results are relatively stable across different models. The findings have important policy implications for aviation strategy at the regional level and beyond.     

舰船装备寿命周期费用控制与管理

从舰船装备的寿命周期费用控制与管理入手，分析了外军在舰船装备研制过程中对寿命周期费用进行控制和管理的方法。同时结合我国舰船装备研制过程中寿命周期费用控制和管理的情况，阐述了我国在舰船研制过程中进行寿命周期费用控制和管理的对策。     

Airline network competition: Full-service airlines, low-cost airlines and long-haul markets

The paper discusses airline network competition. Low-cost airlines and conventional airlines have distinctly different strategies and network types. This determines their ability to compete with other airlines in specific markets. The paper discusses the lack of competition between conventional airlines in local markets, and sees why low-cost airlines are the primary source of competition in such markets. Conventional airlines are relatively strong on long-haul markets, using their networks to keep costs per seat relatively low. Charter airlines show that a long-haul low-cost strategy is feasible For scheduled low-cost airlines, this may be more difficult, but this does not automatically mean that low-cost airlines cannot enter thick long-haul markets.     

Lessons from bankruptcy of Hanjin Shipping Company in chartering

This paper aims to analyze the charter contract management of major container shipping companies in response to fluctuations in shipping market conditions in terms of contract duration using data of containerships between 2010 and 2016. Duration analysis was conducted to examine the relationship between charter duration and shipping market conditions. Moreover, this paper explores the causes of Hanjin Shipping Company’s bankruptcy, drawing managerial implications. Test results from Cox PH (Proportional Hazard) model show that most container shipping companies in Europe having net earnings purchased large vessels instead of chartering vessels, while some ocean carriers featuring poor financial performance, in particular the Hanjin Shipping Company, chartered bigger ships with higher charter rates and longer duration. Contract charter rates and duration of Hanjin Shipping Company featured greater risk compared to competitors.     

Exchange rate changes and the cost competitiveness of international airlines: The Aviation Trade Weighted Index

Discussions of how changes in exchange rates impact on international airlines tend to be ambivalent. In this paper, it is shown that the relative cost competitiveness of an international airline will decline when there is an exchange rate appreciation in its home country - as will be the case for other tradable goods and services. The extent to which this happens depends on which countries the prices of the inputs are set in and also on which countries' airlines it is closely competing with. The impact is greater if there is an appreciation relative to those countries whose airlines the home airlines are closely competing with. In the trade literature, this is recognised in the Trade Weighted Index of exchange rates, which weights exchanges rates according to their importance in a country's trade flows. In this paper, an Airline Trade Weighted Index is developed - the weights for this index depend on airline traffic and revenues on routes to and from a country. The ATWI is calculated for Australian international airlines, and it indicates that there has been a significant loss of competitiveness in recent years, due to the appreciation of the Australian dollar relative to currencies of key airline competitor countries.     

On the beaten track: a view of US West-Coast container port competition

More than a century ago far-sighted railroad builders and steamship operators were seeking the shortest intermodal itineraries between the eastern United States and the Orient. A combination of locational fact and the factual outcomes of 19th century railroad building left Chicago roughly equidistant in railway mileage from what became the four great US West-Coast port complexes in the Los Angeles, San Francisco, Portland and Seattle regions. Their nearly equivalent rail access to Chicago and points east has renewed significance in the container era.

This paper concerns the efforts of US Pacific seaboard ports to stay 'on the beaten track' with respect to container shipments between Asia and the eastern United States. The West-Coast ports are transit points dividing the transcontinental and transoceanic segments of long intercontinental journeys. From origins to destinations there are, in fact, many possibly feasible itineraries, including all-water routes.

The West-Coast ports have considerable control over their own site improvements. On the other hand, with respect to transiting container traffic, the ports may influence, but are unlikely to control, their own situations. Since the major container port facilities are very often on long-term lease to large intermodal carriers, the latter are making the important shipping and routeing decisions. The carriers tend in fact to set the tone and level of port competition.

What is the nature of the competition between container ports? Is it a figment of the publicist's imagination and perpetuated by irrelevant statistical boasting? Is it perhaps something forced on the ports by carriers eager to play one port off against another in a 'lowest bid' game? At what geographical scale might port competition be most useful or, maybe, least wasteful?     

Liner alliances in the globalization era: a strategic tool for Asian container carriers

There has been an increased interest recently in alliances as successors of the large consortia that used to operate in the context of the conference system. Today, having become a common means and term of co-operation in a variety of other industries, alliances are posited as the response of the supply side of liner shipping to important changes on the demand side; alliances have, thus, become predominant in the most important routes for container cargoes. In recent years, however, the list of major container traffic generators and the list of major carriers of containerized cargoes have begun to contain more common entries, generally originating from the Asian region. Asia is, however, a large continent and the entrance of Asian carriers into liner shipping has not been simultaneous; the position, strategies and co-operation strategies of Asian companies have more differences than they share common features. Nevertheless, this paper suggests that alliances are a distinct form of co-operation in liner shipping and the empirical evidence based on a survey in the region supports this hypothesis. The similarity of attitudes of the major Asian container carriers vis a vis alliances is in this way revealing in terms of the range of motivations for participating in the alliance system in a globalized transport environment.     

舰船装备修理合同优化研究

舰船装备维修费是舰船装备全寿命周期费用的重要组成部分,而且所占比例有日益增加的趋势,因而作为决定舰船装备修理价格关键因素的舰船装备修理合同的优化问题必须予以重视.从舰船装备修理合同的基本概念入手,分析舰船修理合同优化的主要内容,并对合同优化的环境建设提出建议,旨在通过合同的优化,提高舰船装备修理经费的军事经济效益和舰船保障能力.     

Predicting the collapse of externally pressurised ring-stiffened cylinders using finite element analysis

This paper describes the application of finite element (FE) analysis to the prediction of the non-linear elasto-plastic collapse of ring-stiffened cylinders under hydrostatic loading. A range of legacy experimental test models have been analysed using FE idealisations generated using measured as-built shape data including out-of-circularity (OOC), frame alignment and tilt and other scantlings. The FE models also explicitly included the residual stresses caused by cold bending. Short and long ring-stiffened cylinders, which were designed to isolate interframe and overall collapse modes, respectively, were considered as were some intermediate length cylinders where the possibility of interactive collapse was also present. In general, the collapse pressures were predicted to within 6%. However, for some of the interframe collapse models, it was necessary to use the minimum measured plate thickness to achieve this. This was largely attributable to the limited measured plate thickness data.     

The economic impact of the ATA/Southwest Airlines code-share agreement

This paper examines the economic impact of the code-sharing agreement between ATA and Southwest Airlines, the first time Southwest has chosen to enter markets via a code-share alliance rather than direct entry. We examine the impact of complementary code-sharing on incumbent airline's fares and passenger volumes and also the overall impact on consumer welfare in Denver airline markets. Empirical results show that air fares decreased and passenger volumes increased for incumbent carriers operating on code-shared routes. Further, we find evidence that this code-sharing arrangement increased both consumer and producer surplus. Thus, the well-known “Southwest Effect” is observed not only when Southwest enters a route directly, but also when it enters a route via a code-share agreement with another airline.     

遗留汇编系统的逆向工程方法研究

逆向工程是一个设计恢复、知识抽象的过程,是软件维护过程中对遗留系统分析理解的有效手段。介绍逆向工程相关的基本概念和关键技术,以及国内外在此领域的研究现状,并探讨遗留汇编系统的逆向工程策略。     

Open boundary conditions in stratified ocean models

In most applications of numerical ocean models, artificial boundaries are introduced to limit the domain. Along such a boundary we need to apply what is often referred to as an open boundary condition (OBC). In this paper a number of local methods used in barotropic ocean models are applied and discussed for the stratified case using a normal mode approach. The OBCs are the simple conditions: clamped, prescribed and zero gradient; the radiation conditions: Camerlengo–O'Brien, Orlanski and a method of characteristics based on linear equations; and a sponge type condition: the flow relaxation scheme. The OBCs have been implemented in a 3-layer ocean model and examples of how the various OBCs perform for three simple flow situations are investigated. The cases are: internal wave radiation, a quasi-steady coastal jet and the response to a storm moving across a strait. It is found that the flow relaxation scheme and the method based on characteristics perform well for the test cases in general, although some of the simpler methods give better results in individual cases.     

Challenges and Prospects of Fisheries Co-Management under a Marine Extractive Reserve Framework in Northeastern Brazil

In Brazil, Marine Extractive Reserves—MERs (Reservas Extrativistas Marinhas) represent the most significant government-supported effort to protect the common property resources upon which traditional small-scale fishers depend. From an initial small-scale experience in 1992, MERs have expanded countrywide, now encompassing 30 units (9,700 km²) and nearly 60,000 fishers. Despite such escalating interest in the model, there is little research on the effectiveness of MERs. In this article, we discuss relevant parts of the history and examine the current situation of the fisheries co-management initiative in the Marine Extractive Reserve of Corumbau, which was created in 2000 as the first MER to encompass coral reefs and reef fisheries. We describe the Extractive Reserve co-management arrangement and its main policy and legislative challenges. Finally, we discuss the prospects for the use of MERs as management frameworks for traditional small-scale fisheries in Brazil.