Competition policy and the liberalisation of European aviation

The European aviation industry is undergoing a process of liberalisation. One of the important lessons of American deregulation was that the industry is not perfectly contestable. One implication of this is that actual competition on a route is important in order to be able to secure the benefits of deregulation or liberalisation. Another is that effective competition policy is important in order to prevent anti-competitive mergers or predatory behaviour. This paper reviews the merger investigations in European aviation which have accompanied the search by carriers to secure the benefits of market power, and considers the extent of route competition within the European Community and its relationship to the different route licensing policies of different national governments. The paper considers the extent of present competition on the busiest routes, and stresses the importance of cabotage rights in opening up the European market to effective competition.     

基于有限元的金属波纹管柱失稳分析和试验研究

金属波纹管的稳定性在宇航、航空、精密仪表以及大型工程结构等领域属于关键技术指标,而且是研究难点。为了解决这类问题,文中应用MSC.Marc软件,针对典型的U型波纹管进行柱失稳研究,研究其极限失稳压力以及变形规律等。通过试验验证,有限元法的分析精度优于工程方法。将有限元法、工程设计和试验结合应用,共同进行金属波纹管柱失稳研究,能够显著提高设计精度,加快研制进程,减少研制成本,进而提高产品的综合性能与市场竞争力。     

The inclusion of aviation into the EU emission trading scheme – Impacts on competition between European and non-European network airlines

In 2008, the European Commission, the European Parliament and the European Council agreed on including international aviation in the already existing European Union carbon market. From 2012, allowances will be required for all international flights landing at and departing from any airport in the EU. Domestic aviation will be subject to the same rules as international air traffic. Model-based empirical estimations presented in this paper indicate a diverse set of effects influencing competition between European and non-European aircraft operators. Initially, this paper provides an overview on recent political developments on EU as well as on International Civil Aviation Organisation level on the subject of emissions trading and aviation. Subsequently, our modelling approach and the main results concerning impacts on operating costs, ticket prices and cargo rates for European and non-European aircraft operators are presented and discussed. Finally, conclusions about the impacts on competition between European and non-European airlines are drawn.     

Relationship between logistics infrastructure and trade: Evidence from Spanish regional exports

Geographical factors and transport infrastructure are two of the key determinants that influence international competitiveness. In this sense, the quality of such infrastructure and how widespread it is, the distribution and capacity of logistics facilities in a country, as well as the number of private operators and their degree of specialisation, all play an increasingly important role in the design of business strategies aimed at increasing a country’s share of the international market. Until recently, however, availability and access to logistics services have been considered secondary factors when defining business competitiveness. This paper estimates an augmented gravity model of trade that specifically includes logistics and transport infrastructure indicators as explanatory variables. The model is estimated by using bilateral exports from 19 Spanish regions to 64 destinations (45 countries and 19 Spanish regions) with data for the period 2003–2007. The findings show that logistics is indeed important for the analysis of trade flows in goods and they highlight the importance of logistics measures at the regional level. In particular, the number, size and quality of logistics facilities positively influence export flows.     

上市航空类企业现金持有水平研究

新冠肺炎疫情重新使人们认识到现金对企业的重要性。航空业运营成本巨大,持有一定量现金对维持航空企业运营具有重要意义。本文利用1998~2019年间沪深两市航空类上市公司的数据,研究了我国航空业现金持有水平。研究发现:航空业现金持有水平较低,航空公司更是呈逐年下降的趋势,低现金持有水平可能是投资挤压导致的;近几年,航空类企业持有的现金最多仅能维持5个月;企业债务融资与固定资产投资等密切相关;航空公司和机场利用商业信用的程度较弱。对此,我国民航企业应改变单一的投融资方式,加大对商业信用的利用。     

Fuzzy modeling approach to the rail freight car inventory problem

Techniques to improve freight car fleet use are of considerable interest to the railroad industry. In this paper, we present a fuzzy inventory control approach applied to the sizing of empty cars on a rail network. We address the problem of deciding the optimal inventory level and the optimal ordering quantity for a rail freight car fleet system in which demand and travel time are uncertain variables represented as triangular fuzzy numbers. Based on the fuzzy economic order quantity (EOQ) formula, a modified fuzzy EOQ model is set up and the optimal policy is developed using the signed distance method to defuzzify the fuzzy total cost. Computational results made for the Serbian rail network case verify the proposed model as well as the efficiency of the approach.     

A genetic algorithm‐optimized fuzzy logic controller to avoid rear‐end collisions

In this paper, a rear‐end collision control model is proposed using the fuzzy logic control scheme. Through detailed analysis of car‐following cases, our fuzzy control system is established with reasonable control rules. Furthermore, a genetic algorithm is introduced into the fuzzy rules refining process to reduce the computational complexity while maintaining accuracy. Numerical results indicate that our genetic algorithm‐optimized fuzzy logic controller outperforms the traditional fuzzy logic controller in terms of better safety guarantee and higher traffic efficiency. Copyright © 2016 John Wiley & Sons, Ltd.     

Airport management: a strategic approach

In this paper a Dynamic Balanced Scorecard (DBSC) is used for the main purpose of indicating strategy implementation avenues to managers so as to equip them with more efficient decision-making tools. To that end, Fuzzy Multicriteria Decision-Making methodology is used as a source of technical support in formulating a cause and effect system and fuzzy strategic indicators. This methodological instrument brings a strategic vision to performance analysis and is designed to furnish a tool for evaluating the impacts of management action on the BSC fuzzy indicators. The proposed analytical methodology is applied to Brazil’s seven main international airports.     

A three-stage decision-making model for selecting electric vehicle battery technology

This study proposes a three-stage decision-making model for the selection of electric vehicle battery technology. Data used for analysis include surveys completed by 45 technology experts from industry, academia, and research throughout Taiwan. A three-stage model that includes developing multiple-criteria during the first stage, integrating the importance of criteria assessment using the fuzzy analytical hierarchy process in the second stage, and using patent analysis tools to further identify the patent portfolio of the technology selected by experts in the third stage are employed. The empirical results indicate that power source management technology and battery module technology are the key technologies for development by the electric vehicle industry. Battery energy storage management and cooling technology are found to be the key for building patent portfolios. When faced with substantial technical and market uncertainty, multiple-criteria for research and development (R&D) selection and stage-wise integration of decision tool must be employed by battery firms to effectively allocate the resources for R&D decisions.     

A fuzzy logic‐based variable speed limit controller

Variable speed limit (VSL) is an emerging intelligent transportation system (ITS) measure to improve operational and safety performance of motorway systems. Rule‐based algorithms have been widely used in VSL applications because of their comprehensibility and ease of application. However, most of the algorithms proposed in the literature under this category are rather rough for the speed control. Pre‐specified rules show some difficulties in appropriately activating/deactivating control actions in real time because of non‐stationary and nonlinear nature of the traffic system. This paper proposes a fuzzy logic‐based VSL control algorithm as an alternative to the existing VSL control algorithms. The proposed algorithm uses fuzzy sets instead of crisp sets to allow the separation of attribute domains into several overlapping intervals. The discretization using fuzzy sets can help to overcome the sensitivity problem caused by crisp discretization used in the existing VSL algorithms. The proposed algorithm is assessed for a test bed in Auckland using AIMSUN micro‐simulator and verified against a well‐known VSL algorithm. The simulation results show that the proposed algorithm outperforms the existing one to improve the efficiency performance of the motorway system with the critical bottleneck capacity increased by 6.42% and total travel time reduced by 12.39% when compared to a no‐control scenario. Copyright © 2015 John Wiley & Sons, Ltd.     

Deregulating European aviation — A case study

European international scheduled aviation has been characterised by bans on market entry, price collusion, and capacity sharing. High fares were charged compared to world standards and the fares charged by European charter airlines.In May 1986 new entrants with pricing freedom were permitted on the London-Dublin route which was then the third largest in European scheduled international aviation. Prior to deregulation the route experienced high fare growth. The unrestricted fare ex-London increased 72.6 per cent compared to a Retail Price Index increase of 41.5 per cent. There was a growth in passenger numbers in the years 1980–85 of 2.8 per cent.Since deregulation passenger numbers have risen to 2.3 million compared to 994,000 before deregulation. Fares have declined by an estimated 37 per cent ex-Dublin and 42 per cent ex-London in real terms. There have been four cases of market entry and one of market exit. The estimated share of the new entrants in the second half of 1989 was 28 per cent. The preregulation earnings data of Aer Lingus, the market leader, indicated that protection allowed staff to earn economic rents. A two-tier structure was introduced in response to competition.Remaining barriers to contestability in UK/Ireland aviation include hub airport dominance, ground handling monopolies, and the ability of airlines with routes in both regulated and deregulated markets to engage in geographical price discrimination against airlines with routes in deregulated markets only. A pro-contestability aviation policy in Europe will require measures to prevent the abuse of dominant positions by established airlines over new market entrants and to prevent collusion between established airlines.     

Cargo Container Loading Plan Model and Solution Method for International Air Express Carriers

Abstract

In this article, a cargo container loading plan model is developed based on the operations of FedEx, the international air express carrier. The objective is to minimize total container handling cost, subject to related operating constraints. The model is expected to be a useful planning tool whereby international air express carriers such as FedEx can decide on container loading plans that will lead to lower operating costs, thus enhancing profits and market competitiveness. The model is formulated as a non-linear mixed integer program that is characterized as NP-hard. A solution method is then developed, with the use of the mathematical programming solver, CPLEX, to solve the problem efficiently. To evaluate the model and the solution method, we perform a case study using data from FedEx. The preliminary results indicate that the model and the solution method are both efficient and effective.     

Modeling Car Ownership in Turkey Using Fuzzy Regression

Abstract

This article develops a model which can be used to determine car ownership in Turkey. Because of the lack of disaggregated data, the model is based on aggregated data. As owning a car is mainly affected by economic, social and demographic factors, the car ownership model has a multi-variable form. In order to explain the effects of these factors on car ownership in Turkey, a fuzzy multiple-regression model is used. The major reason for applying fuzzy regression is to overcome the intercorrelation problem associated with the independent variables. In this study, the urbanization rate, average family size, gross national product per capita, average car cost, gasoline price and total length of roads are selected as independent variables. The results show that, by applying a multi-variable approach to possibilistic regression, the model provides not only a crisp output but also an output range for car ownership in Turkey between 1970 and 2000.     

Origin–destination synthesis for aviation network data: examining hub operations in the domestic and international US markets

Hub‐and‐spoke networking is a key feature of current aviation markets in which hubs, as connecting points, function to consolidate and redistribute flows. This indicates that observation of traffic on a segment does not necessarily convey information about the origin to destination routing of passenger journeys because of the unavoidable detours in the system. This paper examines the heterogeneity of the flow composition in domestic and international US markets, which in turn allows us to observe the variation of operations across major hubs. A modified Route Flow Estimator for origin–destination synthesis (or origin–destination matrix estimation) is designed to decompose the segment traffic into itinerary‐based passenger trips. Several public and commercial databases, which are easily accessible, are exploited (and reconciled) for the model in order to (i) generate possible trip itineraries using those segment markets, and (ii) link data‐driven operational conditions with the underlying segment flows. The results are validated with US domestic trip observations and empirical knowledge related to the air transportation system. Then, the variability of the hub operations is examined based on sensitivity tests using the model parameters. From the resolution of itinerary‐based estimates, we observe that major airports' hub operations are spatially uneven, particularly with respect to domestic and international connecting passengers. Copyright © 2017 John Wiley & Sons, Ltd.     

Are technology myths stalling aviation climate policy?

Emissions from aviation will continue to increase in the future, in contradiction of global climate policy objectives. Yet, airlines and airline organisations suggest that aviation will become climatically sustainable. This paper investigates this paradox by reviewing fuel-efficiency gains since the 1960s in comparison to aviation growth, and by linking these results to technology discourses, based on a two-tiered approach tracing technology-focused discourses over 20 years (1994–2013). Findings indicate that a wide range of solutions to growing emissions from aviation have been presented by industry, hyped in global media, and subsequently vanished to be replaced by new technology discourses. Redundant discourses often linger in the public domain, where they continue to be associated with industry aspirations of ‘sustainable aviation’ and ‘zero-emission flight’. The paper highlights and discusses a number of technology discourses that constitute ‘technology myths’, and the role these ‘myths’ may be playing in the enduring but flawed promise of sustainable aviation. We conclude that technology myths require policy-makers to interpret and take into account technical uncertainty, which may result in inaction that continues to delay much needed progress in climate policy for aviation.     

The “Mirror Flags”: Ship registration in globalised ship breaking industry

The incorporation of new international regulations is a rational way to avoid the use of substandard Asian ship-breaking yards. However, more restrictive regulations and agreements could lead to increase the proliferation of the use of third countries in connection with ship recycling industry. The new Open Registries provides ship-owners with legal loopholes in order to avoid strict national legislations and international rules, thus the “genuine link” disappears and the ship-owner’s responsibilities relax. Ship-breaking industry is a complex interconnected system with many important key actors, such as shipping companies, ship-owners, ship registries, brokers, and ship-breaking yards, all of which are discussed in this paper under the vision of a new global ship recycling policy, and focusing in those cases when a ship changes its flag state registration just before scrapping. This paper analyses the most common flags selected in order to send ships for scrapping. Empirical investigation to determine the relation between States and ship-breaking industry has been carried out using the multivariate statistic technic known as “Simple correspondence analysis”. The results show a relation between ship registry selection and ships that are about to end their lives, re-flagging solely for the purpose of scrapping. If we observe the evolution of the different flag states at the end of the ship’s life, we find incremented use of new open registers or “Mirror Flags”. General abuse of new registries in ship-breaking industry would lead to a ship-breaking industry without rules or transparent procedures, which could violate labour and environmental standards.     

A fuzzy-stochastic optimization model for the intermodal fleet management problem of an international transportation company

ABSTRACT

In this paper, a fuzzy-stochastic optimization model is developed for an intermodal fleet management system of a large international transportation company. The proposed model integrates various strategic, tactical and operational level decisions simultaneously. Since real-life fleet planning problems may involve different types of uncertainty jointly such as randomness and fuzziness, a hybrid chance-constrained programming and fuzzy interactive resolution-based approach is employed. Therefore, stochastic import/export freight demand and fuzzy transit times, truck/trailer availabilities, the transport capacity of Ro-Ro vessels, bounds on block train services, etc. can also be taken into account concurrently. In addition to minimize overall transportation costs, optimization of total transit times and CO₂ emission values are also incorporated in order to provide sustainable fleet plans by maximizing customer satisfaction and environmental considerations. Computational results show that effective and efficient fleet plans can be produced by making use of the proposed optimization model.     

Air transportation in a carbon constrained world: Long-term dynamics of policies and strategies for mitigating the carbon footprint of commercial aviation

With increasing demand for air transportation worldwide and decreasing marginal fuel efficiency improvements, the contribution of aviation to climate change relative to other sectors is projected to increase in the future. As a result, growing public and political pressures are likely to further target air transportation to reduce its greenhouse gas emissions. The key challenges faced by policy makers and air transportation industry stakeholders is to reduce aviation greenhouse gas emissions while sustaining mobility for passengers and time-sensitive cargo as well as meeting future demand for air transportation in developing and emerging countries. This paper examines five generic policies for reducing the emissions of commercial aviation; (1) technological efficiency improvements, (2) operational efficiency improvements, (3) use of alternative fuels, (4) demand shift and (5) carbon pricing (i.e. market-based incentives). In order to evaluate the impacts of these policies on total emissions, air transport mobility, airfares and airline profitability, a system dynamics modeling approach was used. The Global Aviation Industry Dynamics (GAID) model captures the systemic interactions and the delayed feedbacks in the air transportation system and allows scenarios testing through simulations. For this analysis, a set of 34 scenarios with various levels of aggressiveness along the five generic policies were simulated and tested. It was found that no single policy can maintain emissions levels steady while increasing projected demand for air transportation. Simulation results suggest that a combination of the proposed policies does produce results that are close to a “weak” sustainability definition of increasing supply to meet new demand needs while maintaining constant or increasing slightly emissions levels. A combination of policies that includes aggressive levels of technological and operations efficiency improvements, use of biofuels along with moderate levels of carbon pricing and short-haul demand shifts efforts achieves a 140% increase in capacity in 2024 over 2004 while only increasing emissions by 20% over 2004. In addition, airline profitability is moderately impacted (10% reduction) compared to other scenarios where profitability is reduced by over 50% which pose a threat to necessary investments and the implementation of mitigating measures to reduce CO2 emissions. This study has shown that an approach based on a portfolio of mitigating measures and policies spanning across technology and operational improvements, use of biofuels, demand shift and carbon pricing is required to transition the air transportation industry close to an operating point of environmental and mobility sustainability.     

Economic and emissions impacts of renewable fuel goals for aviation in the US

The US Federal Aviation Administration (FAA) has a goal that one billion gallons of renewable jet fuel is consumed by the US aviation industry each year from 2018. We examine the economic and emissions impacts of this goal using renewable fuel produced from a Hydroprocessed Esters and Fatty Acids (HEFA) process from renewable oils. Our approach employs an economy-wide model of economic activity and energy systems and a detailed partial equilibrium model of the aviation industry. If soybean oil is used as a feedstock, we find that meeting the aviation biofuel goal in 2020 will require an implicit subsidy from airlines to biofuel producers of $2.69 per gallon of renewable jet fuel. If the aviation goal can be met by fuel from oilseed rotation crops grown on otherwise fallow land, the implicit subsidy is $0.35 per gallon of renewable jet fuel. As commercial aviation biofuel consumption represents less than 2% of total fuel used by this industry, the goal has a small impact on the average price of jet fuel and carbon dioxide emissions. We also find that, under the pathways we examine, the cost per tonne of CO₂ abated due to aviation biofuels is between $50 and $400.