Fuel hedging is a common risk management tool used in the airline industry. But past studies have not addressed the question of whether fuel hedging creates any benefit to airline operations. This study is the first work that empirically examines the role of fuel hedging in reducing airlines’ operating costs. Using US airlines data from 2000 through 2012, we find that, after accounting for the ...

The article " The Best And Worst Airlines " uses innovative methods to rate the various airline providers and the airports based on delays and cancellation. It distinguishes itself from the statistics reported by the government in the fact that, it also accounts for certain key offsets. The airlines pad additional time in their schedules to account for unseen delays. The government statistics u...

Deregulation, privatization and shifting demand patterns in the airline industry, combined with the emergence of low-cost airlines and rising fuel prices have increased the competitive pressure on legacy airlines. Since alliances do not deliver sufficient benefits to counterbalance these trends, many airlines have engaged in mergers to seek for additional cost and revenue synergies. An extent b...

The airline industry in the United States has been one of the hardest-hit (economic victims of the terrorist attacks on September 11, 2001. In an effort to reduce operating cost to better adapt to the decreasing demand, American Airlines (AA) has introduced de-peaking strategies at two of its major hubs: Chicago O’Hare and Dallas/Fort Worth International Airports. In this paper, American Airlin...

This paper examines the question of why so many African firms are uncompetitive on the global stage. An integrated framework of firm-level and external factors was developed. This paper focuses primarily on the global airline industry and offers an array of external factors including slow implementation of the Yamoussoukro Declaration and protection of state-owned airlines, which have historica...

Scheduled block time (SBT) setting is a crucial part in airlines’ scheduling. Interviews with the airline and relevant work in ground transportation have shown that SBT and the historical block time distribution have a close relationship. A better understanding of this relationship is a major goal for the FAA and the airlines because the benefits includes less cost, more efficient operations an...

The purpose of this study is to explore the ranking of international airlines operation cost control strategies based on empirical studies of an international full-service airlines operation in Taiwan. Cost control has become more and more important for airlines in recent years, especially after experiencing a severe increase in crude oil prices and the 2008 serious financial crisis. In this st...

A game theoretic model, integrated with passenger’s international choice behaviour, for the competition between international airlines is developed and used to identify the role of competing service quality. The empirical evidence suggests that safety, convenience, and service quality have a major influence on the choice decision of air passengers. Passengers respond strongly to decreases in pr...