IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v53y2016icp199-210.html
   My bibliography  Save this article

Air route suspension: The role of stakeholder engagement and aviation and non-aviation factors

Author

Listed:
  • Lohmann, Gui
  • Vianna, Camila

Abstract

This study provides insight into how aviation and non-aviation factors affect the decision to suspend air routes. Using examples from Australian domestic routes, the paper analyses the business relationships and negotiation processes followed by airports, airlines, and destination management organizations (DMOs) to avoid air route suspensions. Data were collected through semi-structured interviews with key aviation and tourism stakeholders directly impacted by suspended routes. The outcomes of this paper demonstrate that while most of the major reasons for air route suspension in Australia are mentioned in existing literature and are linked to demand, other factors have not previously been deeply investigated, including how stakeholders can be involved to avoid air route suspension. The paper also explores and identifies strengths and weaknesses in the relationship among airlines, DMOs and airports.

Suggested Citation

  • Lohmann, Gui & Vianna, Camila, 2016. "Air route suspension: The role of stakeholder engagement and aviation and non-aviation factors," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 199-210.
  • Handle: RePEc:eee:jaitra:v:53:y:2016:i:c:p:199-210
    DOI: 10.1016/j.jairtraman.2016.03.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699715300181
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jairtraman.2016.03.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Xiaowen Fu & James Peoples, 2018. "Introduction and Overview," Advances in Airline Economics, in: Airline Economics in Asia, volume 7, pages 1-8, Emerald Group Publishing Limited.
    2. Moshe Givoni & Frédéric Dobruszkes, 2013. "A Review of Ex-Post Evidence for Mode Substitution and Induced Demand Following the Introduction of High-Speed Rail," ULB Institutional Repository 2013/152140, ULB -- Universite Libre de Bruxelles.
    3. Smyth, Austin & Christodoulou, Georgina & Dennis, Nigel & AL-Azzawi, Marwan & Campbell, Jonathan, 2012. "Is air transport a necessity for social inclusion and economic development?," Journal of Air Transport Management, Elsevier, vol. 22(C), pages 53-59.
    4. Xiaowen Fu & James Peoples, 2018. "Introduction and Overview," Advances in Airline Economics, in: Airline Economics in Asia, volume 7, pages 1-8, Emerald Group Publishing Limited.
    5. Merkert, Rico & O’Fee, Basil, 2016. "Managerial perceptions of incentives for and barriers to competing for regional PSO air service contracts," Transport Policy, Elsevier, vol. 47(C), pages 22-33.
    6. de Wit, Jaap G. & Zuidberg, Joost, 2016. "Route churn: an analysis of low-cost carrier route continuity in Europe," Journal of Transport Geography, Elsevier, vol. 50(C), pages 57-67.
    7. James Peoples, 2012. "Chapter 1 Pricing Behavior and Non-Price Characteristics of the Airline Industry: Introduction and Overview," Advances in Airline Economics, in: Pricing Behavior and Non-Price Characteristics in the Airline Industry, pages 1-9, Emerald Group Publishing Limited.
    8. Goh, Mark & Yong, Jongsay, 2006. "Impacts of code-share alliances on airline cost structure: A truncated third-order translog estimation," International Journal of Industrial Organization, Elsevier, vol. 24(4), pages 835-866, July.
    9. Whyte, Randall & Lohmann, Gui, 2015. "The carrier-within-a-carrier strategy: An analysis of Jetstar," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 141-148.
    10. Iatrou, Kostas & Alamdari, Fariba, 2005. "The empirical analysis of the impact of alliances on airline operations," Journal of Air Transport Management, Elsevier, vol. 11(3), pages 127-134.
    11. Du, Yan & McMullen, B. Starr & Kerkvliet, Joe R., 2008. "The economic impact of the ATA/Southwest Airlines code-share agreement," Research in Transportation Economics, Elsevier, vol. 24(1), pages 51-60.
    12. Barbot, Cristina, 2006. "Low-cost airlines, secondary airports, and state aid: An economic assessment of the Ryanair–Charleroi Airport agreement," Journal of Air Transport Management, Elsevier, vol. 12(4), pages 197-203.
    13. Frédéric Dobruszkes & Véronique Mondou, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," ULB Institutional Repository 2013/142613, ULB -- Universite Libre de Bruxelles.
    14. Mason, Keith J., 2005. "Observations of fundamental changes in the demand for aviation services," Journal of Air Transport Management, Elsevier, vol. 11(1), pages 19-25.
    15. Frédéric Dobruszkes, 2013. "The geography of European low-cost airline networks: A contemporary analysis," ULB Institutional Repository 2013/135954, ULB -- Universite Libre de Bruxelles.
    16. Lohmann, Gui & Koo, Tay T.R., 2013. "The airline business model spectrum," Journal of Air Transport Management, Elsevier, vol. 31(C), pages 7-9.
    17. John F. O'Connell & David Warnock-Smith, 2012. "Liberalization and Strategic Change in Air Transport: An Examination of Current and Future Variations in Tourist Traffic to and from Egypt Resulting from Policy Changes at EgyptAir," Tourism Economics, , vol. 18(4), pages 845-870, August.
    18. Dresner, Martin, 2006. "Leisure versus business passengers: Similarities, differences, and implications," Journal of Air Transport Management, Elsevier, vol. 12(1), pages 28-32.
    19. Moshe Givoni & Frédéric Dobruszkes, 2013. "A Review of Ex-Post Evidence for Mode Substitution and Induced Demand Following the Introduction of High-Speed Rail," Transport Reviews, Taylor & Francis Journals, vol. 33(6), pages 720-742, November.
    20. Hsu, Chaug-Ing & Wen, Yuh-Horng, 2003. "Determining flight frequencies on an airline network with demand-supply interactions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(6), pages 417-441, November.
    21. Chin, Anthony T.H & Tay, John H, 2001. "Developments in air transport: implications on investment decisions, profitability and survival of Asian airlines," Journal of Air Transport Management, Elsevier, vol. 7(5), pages 319-330.
    22. Goetz, Christopher F. & Shapiro, Adam Hale, 2012. "Strategic alliance as a response to the threat of entry: Evidence from airline codesharing," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 735-747.
    23. Niehaus, Thomas & Ruehle, Jens & Knigge, Alexander, 2009. "Relevance of route and network profitability analysis for the network management process of network carriers," Journal of Air Transport Management, Elsevier, vol. 15(4), pages 175-183.
    24. Babic, Danica & Kalic, Milica, 2012. "Airline route network expansion: Modelling the benefits of slot purchases," Journal of Air Transport Management, Elsevier, vol. 23(C), pages 25-30.
    25. Allroggen, Florian & Malina, Robert & Lenz, Ann-Katrin, 2013. "Which factors impact on the presence of incentives for route and traffic development? Econometric evidence from European airports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 49-61.
    26. Zou, Bo & Hansen, Mark, 2012. "Impact of operational performance on air carrier cost structure: Evidence from US airlines," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(5), pages 1032-1048.
    27. Yang, Wei & Karaesmen, ItIr Z. & Keskinocak, PInar, 2010. "Managing uncertainty in on-demand air travel," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 1169-1179, November.
    28. Bornhorst, Tom & Brent Ritchie, J.R. & Sheehan, Lorn, 2010. "Determinants of tourism success for DMOs & destinations: An empirical examination of stakeholders' perspectives," Tourism Management, Elsevier, vol. 31(5), pages 572-589.
    29. Swan, William M., 2002. "Airline demand distributions: passenger revenue management and spill," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(3-4), pages 253-263, May.
    30. Brueckner, Jan K., 2001. "The economics of international codesharing: an analysis of airline alliances," International Journal of Industrial Organization, Elsevier, vol. 19(10), pages 1475-1498, December.
    31. Fu, Xiaowen & Zhang, Anming & Lei, Zheng, 2012. "Will China’s airline industry survive the entry of high-speed rail?," Research in Transportation Economics, Elsevier, vol. 35(1), pages 13-25.
    32. Dobruszkes, Frédéric & Mondou, Véronique, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 23-34.
    33. Olischer, Florian Thomas & Dörrenbächer, Christoph, 2013. "Concession bargaining in the airline industry: Ryanair's policy of route relocation and withdrawal," Working Papers 73, Berlin School of Economics and Law, Institute of Management Berlin (IMB).
    34. Fu, Xiaowen & Homsombat, Winai & Oum, Tae H., 2011. "Airport–airline vertical relationships, their effects and regulatory policy implications," Journal of Air Transport Management, Elsevier, vol. 17(6), pages 347-353.
    35. Barrett, Sean D., 2004. "How do the demands for airport services differ between full-service carriers and low-cost carriers?," Journal of Air Transport Management, Elsevier, vol. 10(1), pages 33-39.
    36. Becken, Susanne & Lennox, James, 2012. "Implications of a long-term increase in oil prices for tourism," Tourism Management, Elsevier, vol. 33(1), pages 133-142.
    37. Donehue, Paul & Baker, Douglas, 2012. "Remote, rural, and regional airports in Australia," Transport Policy, Elsevier, vol. 24(C), pages 232-239.
    38. Behrens, Christiaan & Pels, Eric, 2012. "Intermodal competition in the London–Paris passenger market: High-Speed Rail and air transport," Journal of Urban Economics, Elsevier, vol. 71(3), pages 278-288.
    39. Dobruszkes, Frédéric, 2013. "The geography of European low-cost airline networks: a contemporary analysis," Journal of Transport Geography, Elsevier, vol. 28(C), pages 75-88.
    40. Kemppainen, Katariina & Nieminen, Jaakko & Vepsäläinen, Ari P.J., 2007. "Estimating the costs of airport congestion due to fast connections," Journal of Air Transport Management, Elsevier, vol. 13(4), pages 169-174.
    41. Graham, Anne, 2013. "Understanding the low cost carrier and airport relationship: A critical analysis of the salient issues," Tourism Management, Elsevier, vol. 36(C), pages 66-76.
    42. Frédéric Dobruszkes & Véronique Mondou, 2013. "Aviation liberalization as a means to promote international tourism: the EU–Morocco case," ULB Institutional Repository 2013/145790, ULB -- Universite Libre de Bruxelles.
    43. Duval, David Timothy & Schiff, Aaron, 2011. "Effect of air services availability on international visitors to New Zealand," Journal of Air Transport Management, Elsevier, vol. 17(3), pages 175-180.
    44. Xiaowen Fu & James Peoples, 2018. "Introduction and Overview," Advances in Airline Economics, in: Airline Economics in Asia, volume 7, pages 1-8, Emerald Group Publishing Limited.
    45. Koo, Tay T.R. & Lohmann, Gui, 2013. "The spatial effects of domestic aviation deregulation: a comparative study of Australian and Brazilian seat capacity, 1986–2010," Journal of Transport Geography, Elsevier, vol. 29(C), pages 52-62.
    46. Albers, Sascha & Koch, Benjamin & Ruff, Christine, 2005. "Strategic alliances between airlines and airports—theoretical assessment and practical evidence," Journal of Air Transport Management, Elsevier, vol. 11(2), pages 49-58.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Papatheodorou, Andreas, 2021. "A review of research into air transport and tourism," Annals of Tourism Research, Elsevier, vol. 87(C).
    2. Annitsa Koumoutsidi & Ioanna Pagoni & Amalia Polydoropoulou, 2022. "A New Mobility Era: Stakeholders’ Insights regarding Urban Air Mobility," Sustainability, MDPI, vol. 14(5), pages 1-18, March.
    3. Spasojevic, Bojana & Lohmann, Gui, 2022. "Air route development - Lessons from Australia," Journal of Air Transport Management, Elsevier, vol. 104(C).
    4. Frédéric Dobruszkes & Jean-Michel Decroly & Pere Suau-Sanchez, 2022. "The monthly rhythms of aviation: A global analysis of passenger air service seasonality," ULB Institutional Repository 2013/341140, ULB -- Universite Libre de Bruxelles.
    5. Stephenson, Caitlin & Lohmann, Gui & Spasojevic, Bojana, 2018. "Stakeholder engagement in the development of international air services: A case study on Adelaide Airport," Journal of Air Transport Management, Elsevier, vol. 71(C), pages 45-54.
    6. Spasojevic, Bojana & Lohmann, Gui & Scott, Noel, 2019. "Leadership and governance in air route development," Annals of Tourism Research, Elsevier, vol. 78(C), pages 1-1.
    7. Merkert, Rico & Beck, Matthew J., 2020. "Can a strategy of integrated air-bus services create a value proposition for regional aviation management?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 527-539.
    8. Tianzhi Liu & Fen Luo & Jiawen He, 2023. "Evolution of Spatial Structure of Tourist Flows for a Domestic Destination: A Case Study of Zhangjiajie, China," Sustainability, MDPI, vol. 15(4), pages 1-19, February.
    9. Zheng, Shiyuan & Fu, Xiaowen & Jiang, Changmin & Ge, Ying-En, 2020. "Airline investments in exclusive airport facilities: Timing decisions under demand ambiguity," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 343-363.
    10. Zheng, Shiyuan & Ge, Ying-En & Fu, Xiaowen & (Marco) Nie, Yu & Xie, Chi, 2020. "Demand information sharing in port concession arrangements," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 118-143.
    11. Eugenio-Martin, Juan Luis & Perez-Granja, Ubay, 2022. "Quantifying the net impact and redistribution effects of airlines’ exits on passenger traffic," Journal of Air Transport Management, Elsevier, vol. 101(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dobruszkes, Frédéric & Mondou, Véronique & Ghedira, Aymen, 2016. "Assessing the impacts of aviation liberalisation on tourism: Some methodological considerations derived from the Moroccan and Tunisian cases," Journal of Transport Geography, Elsevier, vol. 50(C), pages 115-127.
    2. Dobruszkes, Frédéric & Dehon, Catherine & Givoni, Moshe, 2014. "Does European high-speed rail affect the current level of air services? An EU-wide analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 461-475.
    3. Wu, Chuntao & Liao, Maozhu & Zhang, Yahua & Luo, Mingzhi & Zhang, Guoquan, 2020. "Network development of low-cost carriers in China's domestic market," Journal of Transport Geography, Elsevier, vol. 84(C).
    4. Jimenez, Edgar & Suau-Sanchez, Pere, 2020. "Reinterpreting the role of primary and secondary airports in low-cost carrier expansion in Europe," Journal of Transport Geography, Elsevier, vol. 88(C).
    5. Stephen Pratt & Markus Schuckert, 2019. "Economic impact of low-cost carrier in a saturated transport market: Net benefits or zero-sum game?," Tourism Economics, , vol. 25(2), pages 149-170, March.
    6. à lvarez-Díaz, Marcos & González-Gómez, Manuel & Otero-Giráldez, María Soledad, 2019. "Low cost airlines and international tourism demand. The case of Porto's airport in the northwest of the Iberian Peninsula," Journal of Air Transport Management, Elsevier, vol. 79(C), pages 1-1.
    7. Albalate, Daniel & Fageda, Xavier, 2016. "High speed rail and tourism: Empirical evidence from Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 174-185.
    8. Daniel Albalate del sol, 2015. "Evaluating HSR availability on Tourism: Evidence from Spanish Provinces and Cities," ERSA conference papers ersa15p288, European Regional Science Association.
    9. Frédéric Dobruszkes & Jean-Michel Decroly & Pere Suau-Sanchez, 2022. "The monthly rhythms of aviation: A global analysis of passenger air service seasonality," ULB Institutional Repository 2013/341140, ULB -- Universite Libre de Bruxelles.
    10. Dobruszkes, Frédéric & Givoni, Moshe & Vowles, Timothy, 2017. "Hello major airports, goodbye regional airports? Recent changes in European and US low-cost airline airport choice," Journal of Air Transport Management, Elsevier, vol. 59(C), pages 50-62.
    11. Dziedzic, Marcin & Njoya, Eric T. & Warnock-Smith, David & Hubbard, Nick, 2020. "Determinants of air traffic volumes and structure at small European airports," Research in Transportation Economics, Elsevier, vol. 79(C).
    12. Papatheodorou, Andreas, 2021. "A review of research into air transport and tourism," Annals of Tourism Research, Elsevier, vol. 87(C).
    13. Delaplace, Marie & Dobruszkes, Frédéric, 2015. "From low-cost airlines to low-cost high-speed rail? The French case," Transport Policy, Elsevier, vol. 38(C), pages 73-85.
    14. Vieira, José & Câmara, Gualter & Silva, Francisco & Santos, Carlos, 2019. "Airline choice and tourism growth in the Azores," Journal of Air Transport Management, Elsevier, vol. 77(C), pages 1-6.
    15. Wu, Chuntao, 2016. "How aviation deregulation promotes international tourism in Northeast Asia: A case of the charter market in Japan," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 260-271.
    16. Jimenez, Edgar & Claro, João & Pinho de Sousa, Jorge & de Neufville, Richard, 2017. "Dynamic evolution of European airport systems in the context of Low-Cost Carriers growth," Journal of Air Transport Management, Elsevier, vol. 64(PA), pages 68-76.
    17. Jiang, Changmin & Zhang, Anming, 2016. "Airline network choice and market coverage under high-speed rail competition," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 248-260.
    18. Hong Tsui, Kan Wai, 2017. "Does a low-cost carrier lead the domestic tourism demand and growth of New Zealand?," Tourism Management, Elsevier, vol. 60(C), pages 390-403.
    19. Daniel Albalate & Germá Bel, 2015. "La experiencia internacional en alta velocidad ferroviaria," Working Papers 2015-02, FEDEA.
    20. D’Alfonso, Tiziana & Jiang, Changmin & Bracaglia, Valentina, 2016. "Air transport and high-speed rail competition: Environmental implications and mitigation strategies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 261-276.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:53:y:2016:i:c:p:199-210. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.