Dissertation on an airline

All of these stochastic factors involve uncertainty and they need to be taken into account while making operational decisions. On the other hand, stochastic treatment of such operational problems has not been common in the literature due to difficulties associated with the characterization of uncertainty and the computational tractability.

I argue in this thesis that, with recent advances in computing power and data analysis tools, such stochastic treatments are more amenable for practical use.


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  • 1.1. Introduction!
  • The Airline Industry Is A Large Growing Industry.

To this end, I study four novel operational problems related to flight arrivals and departures at airports under the uncertainty of operating conditions, and demonstrate the potential value that can be generated through stochastic models within the context of airline and airport operations. The problems I study involve both strategic and tactical decisions for airline service improvement and cost reduction. The first two problems consider managing arrival operations at airports, while the last two problems focus on departure operations. In the first and second problems, I focus on arrival operations in the context of optimized profile descent OPD , which is a novel arrival procedure for the Next Generation Air Transportation System.

In the first problem, I identify policies for managing arrival operations at the tactical level by developing a stochastic dynamic programming framework to manage the sequencing and separation of flights. I also find that optimal spacing of OPD flights is much more important than optimal sequencing of these flights. Furthermore, there is not much difference between the environmental costs of fuel-optimal and sustainably-optimal spacing policies.

Hence, an airline-centric approach in improving OPD operations is likely to be not in conflict with objectives that might be prioritized by other stakeholders.

Analysis of the Etihad Airways

In the second problem, I study the optimal design of arrival traffic management systems at airports at the strategic level. I claim that implementation of OPD operations requires effective metering configurations at airports due to the increased role of uncertainty in aircraft trajectories during descent. I develop stochastic models to further increase the value of OPD operations over conventional arrival procedures by optimizing metering point configurations, which include identification of the optimal number and locations of metering points to use.

I provide numerical results based on actual traffic information at major U. I also find that the optimal metering configurations are mostly robust under different operating conditions. Demand for travel in that fare class may exceed the booking limit, but the data does not reflect this. So the data is censored or "constrained" at the booking limit.

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The Airline Industry Is A Large Growing Industry

While some models exist that produce unbiased forecasts from censored data, it is preferable to "unconstrain" the censored observations so that they represent true demand. Then, the forecasting model may be chosen based on the structure of the problem rather than the nature of the data. This dissertation analyzed the improvement in forecast accuracy that results from estimating demand by unconstraining the censored data.

Little research has been done on unconstraining censored data for revenue management systems.

Dissertation On Aviation Topic - tuzysreisimill.ml

Airlines tend to either ignore the problem or use very simple ad hoc methods to deal with it. A literature review explores the current methods for unconstraining censored data. Also, practices borrowed from areas outside of revenue management are adapted to this application. For example, the Expectation-Maximization EM and other imputation methods were investigated. These methods are evaluated and tested using simulation and actual airline data.

Furthermore, it can be of strategic importance as its benefits can contribute to market share and return on investment. Anderson and Zeithaml, ; Philips, Chang and Buzzell, It has also been observed that service quality has an apparent relationship to costs Crosby, , customer satisfaction Bolton and Drew, ; Boulding et al, However, different schools of thought exist on to whether customer satisfaction is an antecedent or consequence of service quality.

Indeed, it has been argued that service quality is a global assessment about a service category or a particular organisation. Parasuraman et al, Research illustrated situations where the participants were satisfied with a specific event, but did not feel the organization offered overall service quality. Because most evaluations of customer satisfaction relate.

Hence, incidents of satisfaction over time result in perceptions of service quality.

Dissertation Topics on Aviation Airline Industry

From this perspective, service quality could be viewed as the whole family picture album, while customer satisfaction is just one snapshot. Andaleeb and Conway, Because customer satisfaction is achieved through various sources, Bitner and Hubbert propose two ways of viewing satisfaction: service-encounter satisfaction i. Based on several experiences. In other words, satisfaction level based on each service leads to overall satisfaction with the service.

According to Clifford et al , in the pre deregulation era, airline service quality was assessed with respect to industry and managerial variables such as flight frequency, load factors, transit times and aircraft type. See also Jordan, ; Douglas and Miller, However, after the liberalisation of the airline environment in the U. S, the provision of superior service quality was found to be an important source of customer retention and loyalty, which may, in turn, lead to a superior competitive performance. Parasuraman et al, ,, , Zeithaml et al, ; Dawkins and Recihheld, ; Reichheld and Sasser, , Berry and Parasurman, According to Parasuraman et al , customer loyalty can be achieved by organisations that display consistency, reliability and fairness in the provision of their service.

They further argued that organisations that make realistic promises about service delivery are more likely to capitalise on superior service delivery.

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Only a few airlines have been able to distinguish themselves over the years in terms of service quality; this is because of rapid changes in the industry both in terms of changing needs of customers, and definitions of what constitutes the industry itself Rhoades et al, Singapore Airlines, British Airways and America Airlines are among those few airlines that have successfully positioned themselves globally as offering excellent service quality Chan, Delivering constant service quality is a difficult task for both large and small airline companies.

To cater for this problem, many airlines have found one solution which could increase their chances to satisfy customers: code sharing. Code sharing is an agreement between two airlines, where an airline operating a flight allocates some of its seats to another airline, allowing it to sell those seats on its code, although it is not actually operating the flight.

However, this type of agreement is dependent upon the fact that both airlines offer similar service levels and have similar market positioning for its success. A passenger buying a ticket at the Air Mauritius counter to go to Toulouse, France, can find himself in possession of a ticket Mauritius — Paris — Toulouse with Air Mauritius flight numbers and ticket, while the flights to Paris and Toulouse will actually be Air France operated flights. Service quality also contributes significantly towards service differentiation, positioning and branding.

Singapore Airlines and British Airways have been widely recognised within the airline industry as its strategic benchmark airlines, as well as industry leaders and innovators in terms of branding as being a strategic competitive advantage. Companies that find the most effective ways to implement the best service methods and processes have more chances to be winners in the long term in terms of favourable customer perceptions. Such companies outstand their competitors and are able to build a strong foundation for customer loyalty.

Service, both poor and outstanding, has a strong emotional impact on the customer, creating intense feelings about the organisation, its staff and its service, and influencing loyalty to it.

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Wirtz and Johnston, Several authors have been able to demonstrate that there is a positive link between customer service improvements and customer satisfaction, customer loyalty and profitability. Buzzell and Gale,; Boulding et al, ; Rust and Oliver, It has been suggested that the three probable fundamental factors that affect passenger demand in the airline industry are incomes, fares and service levels.

Hanlon, The core focus of the present research is on service quality aspect Although it is recognised that cost and price do have an influence on service quality.