The impact of strategic management and fleet planning on airline efficiency - A random effects Tobit model based on DEA efficiency scores

As a result of the liberalisation of airline markets; the strong growth of low cost carriers; the high volatility in fuel prices; and the recent global financial crisis, the cost pressure that airlines face is very substantial. In order to survive in these very competitive environments, information on what factors impact on costs and efficiency of airlines is crucial in guiding strategic change. To evaluate key determinants of 58 passenger airlines’ efficiency, this paper applies a two-stage Data Envelopment Analysis (DEA) approach, with partially bootstrapped random effects Tobit regressions in the second stage. Our results suggest that the effects of route optimisation, in the sense of average stage length of the fleet, are limited to airline technical efficiency. We show that airline size and key fleet mix characteristics, such as aircraft size and number of different aircraft families in the fleet, are more relevant to successful cost management of airlines since they have significant impacts on all three types of airline efficiency: technical, allocative and, ultimately, cost efficiency. Our results also show that despite the fuel saving benefits of younger aircraft, the age of an airline’s fleet has no significant impact on its technical efficiency, but does have a positive impact on its allocative and cost efficiency.     

Scientific research about climate change mitigation in transport: A critical review

This paper seeks to develop a deeper understanding of the research on climate change mitigation in transport. We suggest that work to date has focused on the effects of improvements in transport technologies, changes in the price of transport, physical infrastructure provision, behavioural change and alternative institutional arrangements for governing transport systems. In terms of research methodologies, positivist and quantitative analysis prevails, although there are signs of experimentation with non-positivist epistemologies and participatory methods. These particular engagements with climate change mitigation reflect mutually reinforcing tendencies within and beyond the academic transport community. We first draw on a revised version of Thomas Kuhn’s philosophy of science to explore the path dependencies within transport studies, which are at least partly responsible for the predisposition towards quantitative modelling and technology, pricing and infrastructure oriented interventions in transport systems. We then employ the governmentality perspective to examine how transport academics’ engagements with climate change mitigation depend on and align with more general understandings of climate change in UK society and beyond. The analysis makes clear that ecological modernisation and neo-liberal governmentality more generally provide the context for the current focus on and belief in technological, behaviour change, and especially market-based mitigation strategies. While current research trajectories are important and insightful, we believe that a deeper engagement with theoretical insights from the social sciences will produce richer understandings of transport mitigation in transport and briefly outline some of the contributions thinking on socio-technical transitions and practice theories can make.     

Information Management in Beach Planning

Abstract

This article concerns optimizing the use of environmental information for creative planning. It arose from a detailed study of the status and management of the coastal dunes of New South Wales, Australia, and discusses the way in which ideas for optimizing the management process were developed, and applied to three beach environments on the coast of New South Wales, Australia.

The problem of coastal beach/dune management may be thought of as being similar to a production function in which the inputs are the land resource, the skills and knowledge of managers, finance, and materiel. The outcomes are in the form of experiences, or opportunities for experiences, either passive or active, either consumption values or option values, desired by the coastal user population (which includes the resource managers themselves). The resource manager's task is to manipulate the “production function”; in order that the outputs will best mesh with the expectations of the user population and with the capability of the land resource to deliver on a sustained basis. An aim of the project was to develop a method for the specification of different possible outputs from the production function, in different beach/dune environments, and that could be used to assist in the preparation of advice on appropriate recreational development, allowing decisions to be based on both environmental data and information on the expectations, activities, and amenity preferences of beach users.     

Assessing economic activity in coastal areas: A shift‐share approach

Abstract

An essential aspect of economic analysis associated with planning efforts is identifying the composition of existing economic activity and understanding historical trends in economic change. The shift‐share model is a useful and inexpensive tool for this purpose. Shift‐share analysis evaluates changes in local economic activities relative to changes in a reference area (usually the state or nation). Economic change is separated into a reference area component, an industry mix component, and a local share component. These measure, respectively, the effect on the local economy due to changes in the reference area, factors specific to the local mix of industries, and the changing competitive position of the local area relative to the reference area.

A shift‐share analysis of Florida's coastal counties reveals that all grew much faster over the 1965–1975 period than did the national economy. This rapid growth is primarily a result of a net shift of economic activity toward the study area relative to the nation. However, a few coastal counties did exhibit a mix of slow‐growing industries. Specific industry results for Florida counties at the eighty‐industry level reveal that many industries showed significant shifts toward Florida's coastal counties. The performance of individual industries in the coastal counties generally exceeded that of the same industries in noncoastal counties.     

The U.S. national marine sanctuary program: An analysis of the program's implementation and current issues

Abstract

The U.S. National Marine Sanctuary Program was established in 1972 by Title III of the Marine Protection, Research, and Sanctuaries Act (16 U.S.C. §1431 et seq.). In this article, we discuss the development of the sanctuary concept, and the original intent of Congress, and analyze how it was applied by the sanctuary program. Differences in interpretation of the program's purpose are examined, including discussion of the multiple‐use management concept, an important but controversial management technique used in the sanctuaries. The continuing efforts by Congress and the National Oceanic and Atmospheric Administration to clarify the program's purpose are investigated. The program's administrative history is explained and the current sanctuaries and active candidates are briefly described. In light of the 1988 reauthorization of the Marine Sanctuary Act, the current issues facing the program are analyzed. Finally, we draw conclusions and make recommendations for the program's future.     

Book reviews

R. S. Farrow, with J. M. Broadus, T. A. Grigalunas, P. Hoagland III, and J. J. Opaluch. 1990. Managing the Outer Continental Shelf Lands: Oceans of Controversy. New York: Taylor & Francis New York, 168 pp., paper.

Richard A. Kenchington. 1990. Managing Marine Environments. New York: Taylor & Francis, 248 pp.