An international study of the airport choice factors for non-integrated cargo airlines

373 Pages·2017·21.7 MB·English

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An international study of
the airport choice factors for
non-integrated cargo airlines
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• A Doctoral Thesis. Submitted in partial fulfillment of the requirements
for the award of Doctor of Philosophy of Loughborough University.
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factors for
An international the
study of airport choice non-
integrated
cargo airlines
by
John Gardiner
A Doctoral Thesis
Submitted in fulfilment the
partial of requirements
for
the
award of
Doctor Philosophy Loughborough University
of of
2006
0 John Gardiner 2006
Abstract
factors for
An international the
study of airport choice
cargo airlines
non-integrated
By
John Gardiner
Recent forecasts predict that the current number of all-cargo aircraft worldwide will
than double over the next 20 years, spurred on by trends such as reduced
more
belly hold haul
capacity on short and medium routes and a growing
passenger
by At
of the profit potential of cargo airlines. the same time the number
recognition
looking is increasing leading to
of airports to attract cargo airlines a greater number of
location decisions being by between
made cargo airlines and more competition
for For increasing industrial
airports these services. the number of secondary and
in detailed freighter
airports particular, a understanding of the needs of operators at
is in be for
airports crucial order to able to compete effectively a growing number of
freighter have favoured
services which traditionally the major gateway airports.
in-depth
This international both
thesis utilises an survey of cargo airlines and airports,
interviews focusing
with cargo airlines and airports, and a case study on an airline
limited knowledge the
the the current on
choosing an airport, with aim of advancing
In
factors influencing the
non-integrated cargo airlines' choice of airport. particular
factors in
focuses identifying importance
thesis the these parallel with an
on of
by in to
assessment of the methods used airports to attract cargo airlines order
identify
improvements to
recommend to airport marketing to air cargo carriers and
increase
that display in to their chances of
characteristics airports must order
attracting cargo airlines.
The is location decisions
conclusion of this thesis that cargo airline are ultimately
from
between the
profit motivated with a trade-off potential revenue, manifested
likely demand for directly
a service at a particular airport, and the costs associated and
indirectly However location decisions in
with operating to that airport. are not made
isolation it found location freight forwarders
and was that the of and other airlines was
important influence As the 10
an on cargo airlines. a result of research airport
identified in
terms
characteristics were as advantageous of attracting cargo airlines,
including direct highway to the demand, freight
these access main areas of a
for fully
forwarder time,
presence, a positive reputation cargo established over and a
In implications
terminal. the this thesis
cargo exploring of on airport
operational
it identified that to be
was more emphasis needs placed on promoting
marketing,
'success' be long
demand to the term.
needs appraised over
and ultimately
ACKNOWLEDGEMENTS
have been
The in the
work this thesis would not possible without guidance and
assistance of a number of people and organisations.
Firstly I like to thank the International Air Cargo Association (TIACA) for
would
funding
deeming- initial
proposal worthy of and'for providing ongoing support
my
My thanks too to the took
sincere airline and airport managers who
where needed.
busy to in by
time their schedules participate my research completing surveys
out of
be interviewed. Without have been
to them this thesis would not possible.
or agreeing
like fellow in Transport
I to the the
also acknowledge staff and my researchers
would
Group Loughborough University it has been honour in
Studies to the
at an work
-
department's friendly, Special
thanks
cooperative and supportive environment. must
Dr. Ian Humphreys, joint during
to the
go who as my supervisor early stages of
this thesis, it incomprehensible task,
writing when seemed such an provided expert
guidance and support.
Tbank friends family for for
to too
you also my and not asking many questions and
taking I break.
things
my mind off when needed a
Finally it is impossible to believe that I have this the
could completed work without
tireless Dr Stephen Ison door
support of my supervisor whose was never closed and
dedication
whose motivation and proved contagious.
TABLE OF CONTENTS
List Tables
of vii
.................................................................................
List Figures ix
of
................................................................................
Glossary Terms
of x
...........................................................................
1
Introduction
..........................................................................
1.1 Research 1
purpose and rationale
..........................................
Significance 3
1.2 the
of research
................................................
1.3 Research 5
ahn and objectives
..............................................
1.4 Research delimitations, 6
.....................................................
1.5 Thesis 6
structure
..............................................................
1.6 Conclusions 7
..... .............................................................
2 The A literary background 8
geography of cargo airlines:
....................
2.1 Chapter
8
overview
...........................................................
2.2 Location
9
.....................................................................
2.2.1 The 10
geography of airports
.......................................
2.2.2 Local demand 11
......................................................
2.2.3 Operational 14
availability
..........................................
2.2.4 Location literature 15
summary
....................................
2.3 Airport 16
quality
..............................................................
2.3.1 Congestion delays 16
and
............................................
2.3.2 Airport 17
user charges
..............................................
2.3.3 Infrastructure 20
......................................................
2.3.4 Airport 21
ground access
............................................
2.3.5 Labour 23
..............................................................
23
2.3.6 Airport literature
quality summary
.............................
24
2.4 Third influences
party
.....................................................
24
2.4.1 Environmental
restrictions
.......................................
2.4.2 Bilateral 26
agreements
...............................................
2.4.3 Government legislation 27
...........................................
2.4.4 Freightforwarders 29
................................................
2.4.5 Airport 30
marketing
.................................................
2.4.6 Other 32
airlines
......................................................
2.4.7 The behavioural 34
variable
.........................................
2.4.8 Thirdparty influences literature 35
summary
.....................
2.5 Chapter
36
summary
..........................................................
location
3A theoretical 38
perspective on
oo-ofo-0600000.00.0 ..... 000.60*000*00000
3.1 Introduction 38
... oo ................... 0.00.... 0.0............. 0 ................
brief history
3.2 Location theory: 39
a
. ........ 0 .... 00.0............. 0 ......... 0
locational influence
3.3 Hotelling the 43
and of competitors
................
3.4 An introduction to theory 45
agglomeration
.. o........ 000... 00.0.0..... 0..
local 47
3.5 Urbanisation
economies and clusters
............ o... 0 ...... 0.. 0..
50
3.6 Localisation
economies
..... o-O.. O ......... 00...... 0 ....... 0 ..............
54
3.7 The
aerotropolis
............ o ... 0 ........................... 0. -0 ............
57
3.8 Chapter
summary
.......... o. 0.0.. 0 ........................ 0 ............ 0..
1
4 Research design
59
and methodology
.............................................
4.1 Introduction 59
.................................................................
4.2 Research 59
propositions
.....................................................
4.2.1 The 59
nature and use of research propositions
..................
4.2.2 The 60
propositions
...................................................
4.3 Research 63
paradigm
.........................................................
4.3.1 Ontological level 64
..................................................
4.3.2 Epistemological level 66
.............................................
4.3.3 Methodological level 67
................................................
4.3.4 Axiological level 69
...................................................
design
4.4 Research 69
.............................................................
4.4.1 Criteria for design 70
the
selection of research
...................
4.4.2 The 70
chosen approach
.............................................
4.4.3 Alternative 72
methods considered
.................................
4.5 The 74
research methods
......................................................
4.5.1 Survey design 75
.......................................................
4.5.2 Interviews design 78
..................................................
4.5.3 Case design 80
study
.................................................
4.5.3.1 Case 80
study question
....................................
4.5.3.2 Different 81
types
of case study
..........................
4.6 Implementing
83
the
research methods
.....................................
4.6.1 Survey 83
inethod
.....................................................
4.6.1.1 Identifying 83
the
survey respondents
...................
4.6.1.2 Administering 87
the
surveys
.............................
4.6.1.3 Question design 90
.........................................
4.6.1.4 Testing design 90
the
questionnaire
.....................
4.6.1.5 Data 92
analysis procedures
..............................
4.62 Intervie 93
w method
..................................................
4.6.2.1 Identifying 93
the
respondents
...........................
4.6.2.2 Interview 100
questions and processes
...................
4.6.2.3 Analysing interview 101
the
responses
...................
4.6.3 Case 102
study method
................................................
4.6.3.1 Choosing 102
the
case study
...............................
4.6.3.2 Data 105
collection methods
...............................
4.6.3.3 Case 108
study analysis
.....................................
4.7 Chapter
108
summary
...........................................................
5 Survey findings
109
.....................................................................
5.1 Introduction
log
.................................................................
5.2 Airline
110
survey
...............................................................
5.2.1 Introduction
110
to airline survey
....................................
5.2.2 Rankingsfor
110
airport choicefactors
.............................
f.
5.2' 1 Night'Operations
112
, ........................................
5.2 2.2 Cost
112
and speed
, ..........................................
5.2 2.3 Geography issues
113
and regional
, ........................
5.2 2.4 Airport 114
characteristics
, .................................
5.2.3 The influence 114
offreightforwarders
.............................
5.2.4 The influence 116
of other airlines
..................................
5.2.4.1 Airline 116
alliances
........................................
5.2.4.2 Competing 117
airlines
.....................................
ii
5.2.4.3 Passenger 118
airlines
.......................................
5.2.5 The impact legislation 118
of
.........................................
5.2.5.1 Air 118
service agreements
.................................
5.2.5.2 Government influence 119
.................................
5.2.6 The 120
airline-airport relationship
.................................
5.2.6.1 Effectiveness 120
of airport marketing
...................
5.2.6.2 Airport 121
priority
..........................................
5.2.6.3 Airport improvements 122
..................................
5.2.7 Myfreighter 124
operators relocate
................................
5.2.8 The important locations. 125
most aspects offreighter operator
5.2.9 The location decisions 126
process of
...............................
5.3 Airport 127
survey
...............................................................
5.3.1 Introduction 127
to
airport survey
....................................
5.3.2 Airport's 127
view of airline choicefactors
........................
5.3.3 The impact 129
offreightforwarders onfreighter operations
...
5.3.4 The impact 130
ofpassenger services onfreighter operations
...
5.3.5 The impact legislation 131
of on airport cargo operations.......
5.3.6 Airport 133
tofreighter
marketing methods operators
............
5.3.7 Airport losses
135
cargo services: gains and
.......................
5.3.8 Airport 137
strengths and weaknessesfor cargo operations
......
5.4 Chapter 139
summary
...........................................................
6 Research interviews 140
...............................................................
6.1 Introduction 140
.................................................................
6.2 Airline interviews 141
..........................................................
62.1 Geography 141
.........................................................
6.2.1.1 Air freight demand 142
......................................
6.2.1.2 Geographical influences 143
...............................
62.2 Decision 144
making analysis methods
..............................
62.3 External influences location 146
on
.................................
6.2.3.1 Passenger 146
carriers
.......................................
147
6.2.3.2 Other freighter
operators
..............................
6.2.3.3 Freight forwarders 149
and shippers
......................
6.2.3.4 Handling 151
agents
.........................................
62.4 Airport 152
attributes
...................................................
6.2.4.1 Congestion 152
...............................................
6.2.4.2 Priority to by 154
afforded cargo airports
................
62.5
Costs 156
................................................................
6.2.5.1 Airport 156
user charges
....................................
6.2.5.2 Flying 157
costs
..............................................
62.6 Regulatory issues 159
andpolitical
..................................
6.2.6.1 Environmental 159
restrictions
.............................
6.2.6.2 Bilýt6ral 6gfe6ments 161
....................................
6.2.6.3 Political involvement 162
...................................
62.7 Airport influence 164
marketing
.....................................
6.2.7.1 The influence 164
of airport advertising
..................
6.2.7.2 The influence incentives 166
of
.............................
62.8 Airline-airport interaction 167
........................................
6.2.8.1 Airline-airport 168
relationship
............................
6.2.8.2 The decision-making 169
process
.........................
iii
62.9 Airline interviews: Summary
171
of significantfindings
6.3 Airport interviews
173
..........................................................
63.1 Geography 174
.........................................................
6.3.1.1 Geographical influences
174
...............................
6.3.1.2 Air freight demand
176
.....................................
63.2 Airport
177
market analysis
..........................................
6.3.2.1 Analysis
177
methods
.......................................
6.3.2.2 Benchmarking
179
other airports
..........................
63.3 External influences location
181
on
..: ...............................
6.3.3.1 Passenger
181
carriers
.......................................
6.3.3.2 Concentration freighter
183
of operators
.................
6.3.3.3 Freight forwarders
186
and shippers
......................
6.3.3.4 Handling
188
agents
.........................................
63.4 Airport
189
attributes
..................................................
6.3.4.1 Congestion
190
and slot allocation
.........................
6.3.4.2 Priority
to 191
afforded cargo
..............................
6.3.4.3 Infrastructure
193
and services
.............................
63.5
Costs
194
.................................................................
6.3.5.1
Airport
195
user charges
....................................
63.6 Regulatory
issues
196
and political
...................................
6.3.6.1 Impact
196
of regulation and politics on airports
.........
63.7 Airport
199
marketing
.................................................
6.3.7.1 Airport
199
advertising and promotion
...................
6.3.7.2 Incentives 203
................................................
6.3.7.3 Airport 205
views on marketing
...........................
63.8 Airline-airport interaction 208
........................................
6.3.8.1 Airline-airport 208
relationship
............................
6.3.8.2 Stages in 210
negotiations with airlines
...................
63.9 Airport interviews: Summary 213
of significantfindings
.........
6.4 Conclusions 215
..................................................................
7 Case DFW Airport China Cargo Airlines 217
study: and
.....................
7.1 Introduction 217
.................................................................
7.2 Case background 218
...........................................................
7.3 DFW Airport's in 219
the air cargo market
position
.......................
7.4 Asian demand
222
air cargo
...................................................
7.5 Igniting
interest 224
airline
....................................................
7.6 China Cargo Airlines: Search for US
a new airport 227
...................
7.7 A
successful marketing-led approach 228
....................................
ZZI Initial
to the 228
response requestforinformation
................
ZZ2 The development
of negotiations with the 229
airline
.............
Z73 Business
case pr66ifation 230
..........................................
ZZ4 Incentives
233
...........................................................
decision factors
7.8 Airline
and process 234
.....................................
7.9 Key findings
240
................................................................
findings
8 Discussion 242
of
.............................................................
8.1 Introduction 242
.................................................................
8.2 The
243
process of airport selection
..........................................
iv
244
8.2.1 The in
stages choosing an airport
...............................
245
8.2.2 Discussion
outcomes
.............................................
influence local demand 245
8.3 Geographic factors the
and of
...............
indicators demand 246
8.3.1 Clusters
as of airfireight
..................
location 247
8.3.2 Importance
of within a market
........................
location 247
8.3.3 The tool
use of clusters as a
...........................
248
8.3.4 Impact time
of airport access
....................................
249
8.3.5 Discussion
outcomes
.............................................
249
8.4 Financial
considerations'..........,....,,.,..
............................
8.4.1 Influence location 250
of airport costs on
...........................
252
8.4.2 Influence
offlying costs
..........................................
252
8.4.3 Discussion
outcomes
.............................................
253
8.5 Existing
airport operator profile
..........................................
253
8.5.1 Impact location
the
of of competitors
...........................
254
8.5.2 Influence
of alliance partner presence
..........................
255
8.5.3 Influence integrator
of an presence
.............................
8.5.4 Influence 256
ofpassenger services
.................................
8.5.5 Reduction in 257
uncertainty
..........................................
8.5.6 Discussion 258
outcomes
.............................................
8.6 Stakeholder influences 259
....................................................
8.6 1 Freightforwarder influence 259
......................................
261
8.62 Shipper influence
..................................................
261
8.63 Handling influence
agent
.........................................
263
8.64 Discussion
outcomes
..............................................
264
8.7 Airport
characteristics
.....................................................
264
8. Z1 Airport
cargofocus and reputation
..............................
265
&Z2 Congestion through the airport
and speed
..........................
267
8. Z3 Airport infrastructure
.............................................
268
different
&Z4 7he freighter types of airport
prospects of
.........
270
&Z5 Discussion
outcomes
.............................................
270
location
8.8 The impact legislation
of on
....................................
271
&8.1 Environmental
restrictions
.......................................
272
8.8.2 Policies
and politics
...............................................
272
&&3 Air
service agreements
...........................................
274
8.8.4 Discussion
outcomes
.............................................
274
8.9 Airport
air services marketing
............................................
275
8.9.1 Effectiveness
of airport marketing
............................. .
277
8.9.2 Impact incentives
of
..............................................
278
8.9.3 Relevance
of airport marketing
.................................
279
8.9.4 Discussion
outcomes
.............................................
280
Concl
8.10
usion
................................................................. .
281
9. Conclusions and recommendations
..........................
281
9.1 Introduction
.................................................................
important factors influencing 281
9.2 The most airport choice
...............
9.2.1 Positive locationjactors 282
..........................................
9.2.2 Fundamentalfactors 285
the
restricting choice of airports
9.2.3 Other dissuasivefactors 286
..........................................
287
9.2.4 Factors to
serving reduce uncertainty
..........................
288
9.3 Outcome
of propositions
..................................................
V