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Prelims

Airlines and Developing Countries

ISBN: 978-1-80455-861-4, eISBN: 978-1-80455-860-7

ISSN: 2212-1609

Publication date: 6 June 2023

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Citation

(2023), "Prelims", Button, K. (Ed.) Airlines and Developing Countries (Advances in Airline Economics, Vol. 10), Emerald Publishing Limited, Leeds, pp. i-xvii. https://doi.org/10.1108/S2212-160920230000010014

Publisher

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Emerald Publishing Limited

Copyright © 2023 Kenneth Button. Published under exclusive licence by Emerald Publishing Limited

Half Title Page

Airlines and Developing Countries

Series Title Page

Advances in Airline Economics

Series Editor: James Peoples

Recent Volumes:

Volume 1: Competition Policy and Anti-Trust, Darin Lee
Volume 2: The Economics of Airline Institutions, Operations and Marketing, Darin Lee
Volume 3: Pricing Behaviour and Non-Price Characteristics in the Airline Industry, James Peoples
Volume 4: The Economics of International Airline Transport, James Peoples
Volume 5: Airline Efficiency, John D. Bitzan, James Peoples and Wesley W. Wilson
Volume 6: The Economics of Airport Operations, John D. Bitzan and James Peoples
Volume 7: Airline Economics in Asia, Xiaowen Fu and James Peoples
Volume 8: Airline Economics in Europe, Kevin Cullinane
Volume 9: The International Air Cargo Industry: A Modal Analysis, James Nolan and James Peoples

Editorial Advisory Board

Series Editor

James Peoples

  • University of Wisconsin-Milwaukee, USA

Associate Editors

  • John Bitzan

  • North Dakota State University, USA

  • Kevin Cullinane

  • University of Gothenburg, Sweden

  • Xiaowen Fu

  • The University of Sydney, Australia

Board of Editors

  • Volodymyr Bilotkach

  • Newcastle University, UK

  • Jan K. Brueckner

  • University of California, USA

  • Martin Dresner

  • University of Maryland, USA

  • David Gillen

  • University of British Columbia, Canada

  • Timothy J. Hazledine

  • University of Auckland, New Zealand

  • Marc Ivaldi

  • Universit'e Toulouse 1 Capitole, France

  • Theodore E. Keeler

  • University of California, USA

  • B. Starr McMullen

  • Oregon State University, USA

  • Steven Morrison

  • Northeastern University, USA

  • James Nolan

  • University of Saskatchewan, Canada

  • Claudio Piga

  • Keele University, UK

  • Nicholas G. Rupp

  • East Carolina University, USA

  • Ian Savage

  • Northwestern University, USA

  • Wayne Talley

  • Old Dominion University, USA

  • Wesley W. Wilson

  • University of Oregon, USA

  • Chunyan Yu

  • Embry-Riddle Aeronautical University, USA

Title Page

Advances in Airline Economics Volume 10

Airlines and Developing Countries

Edited by

Kenneth Button

George Mason University, USA

United Kingdom – North America – Japan – India – Malaysia – China

Copyright Page

Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2023

Editorial matter and selection © 2023 Kenneth Button.

Individual chapters © 2023 The authors.

Published under exclusive licence by Emerald Publishing Limited.

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No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. Any opinions expressed in the chapters are those of the authors. Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters' suitability and application and disclaims any warranties, express or implied, to their use.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN: 978-1-80455-861-4 (Print)

ISBN: 978-1-80455-860-7 (Online)

ISBN: 978-1-80455-862-1 (Epub)

ISSN: 2212-1609 (Series)

List of Figures and Tables

Chapter 3
Figure 3.1. Passenger Traffic Latin American Airlines, 1949–1970.
Chapter 4
Figure 4.1. Impulse Response Functions (Normalized) for Brazil (First Column), Chile (Second Column) and Uruguay (Third Column).
Chapter 5
Figure 5.1. Trends in Available Seats From African Airports, 2004–2019.
Figure 5.2. Intra-Africa Air Transport Routes, 2003 and 2019.
Figure 5.3. Africa's Intercontinental Routes, 2003 and 2019.
Figure 5.4. Trends in Intra-Africa and Intercontinental Seats Available, 2004–2019.
Figure 5.5. Interaction Channels Between Air Transport and the Economy.
Figure 5.6. Employees of Selected African Airlines, 2019.
Figure 5.7. Indexed Growth: Seat Capacity Versus GDP Growth (2010 = 100).
Figure 5.8. Correlation Between Air Transport and GDP per Capita in Africa, 2019.
Figure 5.9. Causal Directions Between the Air Transport Industry and the Economy.
Figure 5.10. Suggested Investment Decisions Based on the Direction of Causal Relationships.
Chapter 6
Figure 6.1. Domestic Air Traffic in Maghreb Countries.
Figure 6.2. Libya's Domestic Air Transportation Network (Left) and Size of Airports by Passenger Share in 2018 (Right).
Figure 6.3. Tunisia's Domestic Air Transportation Network (Left) and Size of Airports by Passenger Share in 2018 (Right).
Figure 6.4. Domestic Air Transportation Network in Mauritania (Left Panel) and Size of Airports by Passenger Share in 2018 (Right Panel).
Figure 6.5. Algerian Domestic Air Traffic Network (Left Panel) and Size of Airports by Passenger Share in 2018 (Right Panel).
Figure 6.6. Moroccan Domestic Air Traffic Network (Left Panel) and Size of Airports by Passenger Share in 2018 (Right Panel).
Figure 6.7. Distribution of Intra-Maghreb Passenger Traffic Flows (2018).
Figure 6.8. Intra-Maghreb Origin–Destination Passenger Traffic 2010–2018.
Figure 6.9. Intra-Maghreb Air Traffic Flows by Type of Flight (Left Panel) and Nondirect Intra-Maghreb Flights by Connecting Region (Right Panel).
Chapter 7
Figure 7.1. Low-Cost Carrier Share of Seat Capacity in Asia.
Figure 7.2. Development and LCC Shares of Departure Capacity (2018).
Figure 7.3. Network Structures of Garuda Indonesia and Lion Air.
Figure 7.4. CO2-Equivalent Emissions per Available Seat-Nautical Mile.
Figure 7.5. Possible Airbus A321 City-Pairs for Three Asian LCCs.
Chapter 8
Figure 8.1. Market Share Between LCCs and Non-LCCs in ASEAN, 2011–2019.
Figure 8.2. BCG Matrix of Airline Performance.
Chapter 10
Figure 10.1. Triangular Fuzzy Number Ã.
Figure 10.2. Triangular Fuzzy Numbers for Linguistic Terms.
Figure 10.3. Fuzzy-TISM Diagram.
Figure 10.4. Driving Power and Dependence Matrix Based on Fuzzy Reachability Matrix.
Figure 10.5. Driving Power and Dependence Matrix Based on Defuzzified Reachability Matrix.
Chapter 12
Figure 12.1. Average Aggregate and Disaggregate Efficiency Scores, 2015–2019.
Chapter 13
Figure 13.1. Air Freight (Million Ton Km) by Country Ranking (2019).
Figure 13.2. Possible Supply Chains for Air Cargo Transportation.
Chapter 1
Table 1.1. Alphabetical List of 70 of the IMF's Low-Income Countries in 2016 With Various Descriptive Indices.
Chapter 3
Table 3.1. Douglas DC 8 and Boeing 707 Manufactured (1958–1962).
Chapter 4
Table 4.1. Characteristics of Sample.
Table 4.2. Unit Root Tests.
Table 4.3. Unrestricted Cointegration Rank Test.
Table 4.4. Error Correction Models.
Chapter 5
Table 5.1. Economic Impacts of the Air Transport Industry, 2018.
Table 5.2. Coefficients of Long-Run Estimations.
Table 5.3. Test of Granger Causality in a VEC Framework.
Chapter 6
Table 6.1. Maghreb Cities' Dataset.
Table 6.2. Variables and Their Definitions/Descriptions.
Table 6.3. Summary Statistics.
Table 6.4. Endogeneity and Hausman Tests Results.
Table 6.5. Correlation Matrix.
Table 6.6. Determinants of Intra-Maghreb Passenger Air Traffic.
Chapter 7
Table 7.1. Summary of Airline Capacity in Asia, 2018.
Table 7.2. Most Densely Trafficked City-Pairs by Scheduled Capacity (April 2018).
Table 7.3. Minimum Roundtrip FSNC and LCC Fares on Selected City-Pairs (2019).
Table 7.4. Shimbel Indices for Best Connected Cities.
Table 7.5. Network Measures, 2003 and 2018.
Table 7.6. Network Characteristics of Low-Cost Carrier-Only Services Within Asia (2018).
Table 7.7. Network Characteristics of Selected Low-Cost Carriers and Full-Service Network Carriers (2018).
Table 7.8. Asian Carrier Fleets (Outstanding Orders as of June 30, 2021).
Table 7.9. Select LCC Aggregate (Filled and Unfilled-To-Date) Orders (July 2021).
Chapter 8
Table 8.1. LCC Market Share in East Asia.
Table 8.2. Descriptive Statistics.
Table 8.3. Overall and Term Efficiency.
Table 8.4. Production Efficiency Over Time.
Table 8.5. Marketing Efficiency Over Time.
Table 8.6. MPI Changes From 2012 to 2019.
Table 8.7. Year-on-Year Changes in MPI From 2012 to 2019.
Chapter 9
Table 9.1. Membership of the Three Global Strategic Alliances 2018.
Table 9.2. The Nations Engaged in Air Afrique.
Table 9.3. Characteristics of Main Airline Alliances Prior to the COVID-19 Pandemic.
Chapter 10
Table 10.1. Factors and Their Description.
Table 10.2. Linguistic Terms and Corresponding Triangular Fuzzy Numbers for “Influence.”
Table 10.3. List of Experts Consulted.
Table 10.4. Aggregated Structural Self-Interaction Matrix.
Table 10.5. Fuzzy Reachability Matrix Based on the Aggregated Fuzzy SSIM Matrix.
Table 10.6. Final Fuzzy Reachability Matrix With Fuzzy and Crisp Values of Driving Power and Dependence.
Table 10.7. Defuzzified Reachability Matrix With Transitive Links.
Table 10.8. Partitioning the Defuzzified Reachability Matrix Into Different Levels.
Table 10.9. Interpretive Matrix.
Chapter 11
Table 11.1. The Characteristics of Post-Soviet States.
Table 11.2. National Air Transport System of Post-Soviet States.
Table 11.3. Aeroflot Group's Multi-Brand Strategy.
Table 11.4. Russian LCC Characteristics.
Table 11.5. Foreign LCCs Serving the Russian Market, 2020.
Table 11.6. Example of LCCs by Countries, January to August 2020.
Table 11.7. Post-Soviet States LCCs.
Table 11.8. Active LLC.
Table 11.9. Post-Soviet States LCCs Characteristics.
Chapter 12
Table 12.1. Review of Airlines Efficiency Studies.
Table 12.2. Descriptive Statistics of Input and Output Variables of the Asian Airlines.
Table 12.3. Airline Types.
Table 12.4. Overall Total Efficiency Scores of Asian Airlines.
Table 12.5. Aggregate and Disaggregate Output Efficiency Scores of Asian Airlines.
Table 12.6. Average Annual Output Efficiency of Flag Carriers and Nonflag Carriers.
Table 12.7. Average Annual Output Efficiency of FSCs and LCCs.
Table 12.8. Average Annual Output Efficiency of Alliance Airlines and Nonalliance Airlines.
Table 12.9. Average Annual Output Efficiency of Airlines From High- and Low-Income Regions.
Table 12.10. Average Annual Output Efficiency of ASEAN and Non-ASEAN Airlines.
Table 12.11. MWU Test on Overall, Revenue, and RPK Efficiency of Each Paired types.
Table 12.12. Hypotheses and Results.
Chapter 13
Table 13.1. Share of Global Production of the Largest Flower-Producing Nations (2021).
Table 13.2. US Imports of Cut Flowers ($Millions).
Table 13.3. Moving Flowers From Colombia to Florida.

List of Contributors

Nhi Ha Bao Bui National Yang Ming Chiao Tung University, Taiwan
Svein Bråthen Molde University College, Norway
Juan Gabriel Brida Universidad de la República, Uruguay
John Bowen Central Washington University, USA
Porter Burns Central Washington University, USA
Kenneth Button George Mason University, USA
Tamilla Curtis David B. O'Maley College of Business, USA
Johan Holmgren Molde University College, Norway
Jin-Li Hu National Yang Ming Chiao Tung University, Taiwan
Aliyu Isah University of Huddersfield, UK
K. N. Jha Indian Institute of Technology Delhi, India
Bibiana Lanzilotta Universidad de la República, Uruguay
Colin C. H. Law Emirates Aviation University, United Arab Emirates
Eric Tchouamou Njoya University of Huddersfield, UK
Dawna L. Rhoades Embry-Riddle Aeronautical University, USA
Verónica Segarra Universidad de la República, Uruguay
Nivea Thomas Indian Institute of Technology Delhi, India
Tassew Dufera Tolcha Molde University College, Norway
Henry Vega Congressum Consulting Inc., Canada
Javier Vidal University of Alicante, Spain
Sandra Zapata Universidad de la República, Uruguay
Anming Zhang University of British Columbia, Canada
Yahua Zhang University of South Australia, Australia

Preface

The links between transportation and economic development are complex and far from being fully understood. This is as true for airlines as other modes. This collection of original papers offers both general observations on the economics linking airlines and economic development, together with some more microanalysis of particular issues. It contains not only technical analyses but also interdisciplinary studies linking economics with a broad range of geographical, management, and political disciplines. It has been increasingly recognized that the essentially engineering approach to human behavior underlying neoclassical economics, with its focus on the motivations and actions of homo economicus, is too limited to fully understand how markets function. Indeed, many of the more recent contributions dealing with airlines and developing countries have been published outside of the mainstream economic journals.

I would like to thank the contributors for the time and effort they have put into drafting their chapters and hope they prove interesting and insightful to readers.

Kenneth Button, Editor

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