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Corporate Governance, Sustainability, and Information Systems in the Aviation Sector, Volume I

  • 2022
  • Book

About this book

This book delves into corporate governance, sustainability, and information systems related to the aviation sector. Due to globalization and rise in cross-border business, the aviation sector has become an essential means of transport. However, the industry has tremendous impact on social, economic, and natural environments and carries significant risks. The book explores such issues plaguing the aviation sector under three key areas: CSR and sustainability, information systems and risk management, and corporate governance and accountability in the airline industry. The book concludes with an analysis of the impact of COVID-19 crisis on the industry and ways to respond and recover from the effects of the pandemic.

Table of Contents

  1. Frontmatter

  2. Introduction

    1. Frontmatter

    2. Chapter 1. Introduction: Towards a New Management Approach in the Aviation Industry After the COVID-19 Pandemic

      Kasım Kiracı, Kıymet Tunca Çalıyurt
      The chapter delves into the profound effects of the COVID-19 pandemic on the airline industry, emphasizing the need for a new management approach. It discusses the economic and social benefits of air transportation and the urgent need for sustainable practices. The text explores operational resilience through disruption management, sustainability processes based on value co-creation, and the corporate social responsibilities of aviation organizations. It also examines the relationship between sustainability and financial performance, the importance of innovation in sustainable aviation, and passenger behavior towards green airlines. Additionally, it covers supplier performance evaluation, strategic outsourcing, organizational behavior models, and the role of strategic alliances in achieving competitive advantage. The chapter provides a comprehensive overview of the challenges and opportunities facing the aviation industry in the post-pandemic era, offering valuable insights for professionals seeking to navigate these complexities.
  3. CSR and Sustainability in Airlines

    1. Frontmatter

    2. Chapter 2. A Necessity for Sustainability: Operational Resilience Through Disruption Management in Airlines

      K. Gülnaz Bülbül
      This chapter delves into the critical importance of operational resilience in today's interconnected and volatile global system. It highlights how unpredictable factors such as natural disasters, economic recessions, and human errors pose significant threats to organizational continuity. The concept of resilience is introduced as the capacity to return to a stable state after disruptions, closely linked to sustainability. The chapter focuses on air transportation, a vital component of global business, and the challenges it faces due to its complex and interconnected nature. Disruptions in airline operations can have cascading effects, leading to delays and cancellations, and can cost airlines and customers billions annually. Effective disruption management is crucial for operational resilience, involving both proactive robust planning and reactive airline recovery strategies. The chapter explores these strategies in detail, discussing robust scheduling and the various recovery methods for aircraft, crew, and passengers. It also reviews the existing literature and successful applications in the field, making it a valuable resource for professionals seeking to enhance operational resilience in airlines.
    3. Chapter 3. Value Co-Creation in Airline Ecosystem: Framework Integrating Sustainability and Dart Model

      Inci Polat
      This chapter delves into the concept of value co-creation in the airline ecosystem, emphasizing the integration of sustainability and the DART model. It discusses the shift from traditional goods-dominant logic to service-dominant logic, highlighting the importance of collaborative value creation involving all actors in the ecosystem. The DART model, focusing on Dialogue, Access, Risk Assessment, and Transparency, is explored as a key framework for facilitating sustainable value co-creation. The chapter also examines how airlines can leverage these principles to enhance their competitive advantage and meet sustainability goals. By providing a detailed analysis of the value co-creation process and its application in the airline industry, this chapter offers valuable insights for professionals seeking to understand and implement sustainable business practices in the aviation sector.
    4. Chapter 4. Corporate Social Responsibilities in Air Transport: A Research Agenda on the Effects of the COVID-19 Pandemic

      Yeşim Kurt
      The chapter 'Corporate Social Responsibilities in Air Transport: A Research Agenda on the Effects of the COVID-19 Pandemic' delves into the impact of the COVID-19 pandemic on corporate social responsibility (CSR) initiatives within the air transport industry. It begins by contextualizing the global crisis caused by the pandemic and its profound effects on the aviation sector. The author then explores the definition, motivations, and typologies of CSR, emphasizing the importance of these initiatives in both pre- and post-pandemic periods. The chapter highlights specific CSR initiatives undertaken by airline and airport organizations before the pandemic, focusing on areas such as environmental sustainability and community support. It also discusses the necessity and benefits of continuing CSR initiatives during the pandemic, citing studies that show positive impacts on brand value, employee loyalty, and customer trust. The text concludes with examples of CSR initiatives implemented by aviation organizations during the pandemic, showcasing their adaptability and commitment to social responsibility even in challenging times. This detailed analysis offers valuable insights into the evolving landscape of CSR in the air transport industry and underscores the importance of maintaining these initiatives in the face of global crises.
    5. Chapter 5. Sustainability and Financial Performance: Examining the Airline Industry

      Veysi Asker, Kasım Kiracı
      The chapter delves into the financial performance and sustainability of the airline industry from 2010 to 2019, highlighting the effects of global crises and deregulation on airline growth and competition. Using Data Envelopment Analysis, the study evaluates the financial efficiency of top global airlines across four different models, revealing which airlines entered the COVID-19 crisis with robust financial positions. The analysis covers various financial indicators such as market value, EBIT, net sales, and operating income, providing a detailed comparison of airline performance over the decade. The study's findings offer valuable insights into the financial health of the airline industry and contribute to both academic research and industry practices.
    6. Chapter 6. Sustainable Aviation Based on Innovation

      Nisa Seçilmiş
      The chapter delves into the concept of sustainable aviation, tracing its origins back to the 1987 Brundtland Report. It highlights the environmental impacts of aviation, including climate change, noise pollution, and air quality issues. The text discusses the policies and initiatives developed by international organizations like ICAO to mitigate these impacts, focusing on technological innovations such as fuel-efficient aircraft and sustainable aviation fuels. The chapter also examines the role of research and development in reducing aviation's environmental footprint, using patent data to illustrate the progress made in climate change mitigation technologies. Overall, the chapter emphasizes the importance of sustainable innovation in the aviation industry and the collaborative efforts of various stakeholders to achieve it.
  4. Information System and Risk Management in Airlines

    1. Frontmatter

    2. Chapter 7. Purchase Intention Toward Green Airlines and Willingness to Pay More: Extending the Theory of Planned Behavior

      Şahap Akan, Emircan Özdemir, Mahmut Bakır
      The chapter delves into the purchase intentions of consumers toward green airlines and their willingness to pay more, extending the Theory of Planned Behavior (TPB) by incorporating environmental consciousness. It highlights the significant role of subjective norms, perceived behavioral control, attitude toward green airlines, and environmental consciousness in shaping green purchase intentions. The study also underscores the positive impact of green purchase intentions on consumers' willingness to pay more for environmentally friendly airline services. The research methodology employs partial least squares path modeling (PLS-PM) to validate the hypothesized relationships, providing valuable insights for airlines to develop effective environmental strategies and enhance their long-term competitiveness.
    3. Chapter 8. The Factors Affecting the Passengers’ Avoidance to Use the Mobile Applications of Airlines

      Mutlu Yuksel Avcilar, Nuriye Günebakan, Hilal Inan, Seda Arslan
      The chapter delves into the factors affecting airline passengers' avoidance of using mobile applications, a critical issue in the aviation industry. It begins by discussing the widespread use of smartphones and mobile apps, and the intense competition among airlines to provide superior services through these technologies. The study identifies several key factors contributing to passengers' avoidance of airline mobile apps, including perceived irritation, lack of utility, lack of incentives, technology anxiety, and privacy concerns. The chapter also presents a theoretical framework and hypotheses to guide further research and practical applications. The findings are based on a survey conducted at two major airports in Turkey, providing valuable insights into passenger behavior and the challenges faced by airlines in the digital age.
    4. Chapter 9. Supplier Performance Evaluation Using Cluster Analysis and Artificial Neural Networks in a MRO Business in Aviation Sector

      Muhammet Mikdat Akbaba, Onur Çetin
      The chapter delves into the critical role of supplier performance evaluation in minimizing operational costs and gaining competitive advantage, particularly in the aviation MRO sector. It highlights the limitations of traditional evaluation methods and introduces the innovative use of cluster analysis and artificial neural networks to enhance supplier classification. The study, conducted on a leading aircraft maintenance company, demonstrates the potential of these advanced techniques to provide more accurate and actionable insights into supplier performance. The research not only aims to improve existing evaluation systems but also offers a promising approach for future studies in supplier performance assessment.
  5. Corporate Governance and Accountability in Airlines

    1. Frontmatter

    2. Chapter 10. Strategic Outsourcing in Airline Business

      Dilek Erdoğan
      This chapter delves into the strategic outsourcing practices within the airline industry, particularly focusing on aircraft maintenance, ground handling, and information technology services. It discusses how liberalization and increased competition have driven airlines to outsource non-core activities to enhance efficiency and competitiveness. The text explores the benefits and risks associated with outsourcing, including cost reduction, improved service quality, and shared risks. It also examines the unique features of the aviation sector that influence outsourcing decisions, such as high capital and labor intensity, seasonality, and the need for timely operations. The chapter is structured around the transaction cost theory and resource dependency theory, providing a robust framework for understanding outsourcing strategies. It further classifies outsourcing decisions into tactical and strategic categories, with a focus on how these decisions impact airline operations and competitive advantage. The discussion on aircraft maintenance, ground handling, and IT outsourcing offers practical insights into the complexities and strategic considerations involved in these processes. The chapter concludes by emphasizing the importance of outsourcing in enabling airlines to focus on their core competencies and achieve long-term competitive advantages.
    3. Chapter 11. The Importance of Organizational Behavior Model Applications in Air Transportation Industry

      Metin Reyhanoğlu, Harun Yılmaz
      The chapter discusses the pivotal role of organizational behavior models in the air transportation industry, focusing on the importance of human resources in achieving sustainable growth. It explores the unique challenges faced by the aviation sector, such as high competition, global economic developments, and regulatory changes. The text emphasizes the need for effective human resources management practices, including recruitment, training, and organizational commitment, to ensure high performance and efficiency. It also highlights the impact of human factors on safety and service quality in aviation, emphasizing the need for specialized training and management strategies. The chapter concludes with recommendations for improving human resources practices in the aviation industry, aiming to enhance organizational performance and sustainability.
    4. Chapter 12. A Systematic and Bibliometric Review on the Role of Strategic Alliances in Achieving Sustainable Competitive Advantage in the Airline Industry: From Resource Dependence Theory Perspective

      Gökhan Tanrıverdi, Ümit Doğan
      The chapter delves into the critical role of strategic alliances in the airline industry, focusing on how they facilitate access to critical resources and contribute to sustainable competitive advantage. It systematically reviews existing literature, employing bibliometric visualization analysis to identify key themes and trends. The study highlights the importance of strategic alliances in mitigating environmental uncertainty and enhancing airlines' competitiveness. By examining various types of alliances, such as code-sharing and global airline alliances, the chapter offers insights into the benefits and challenges of these partnerships. The analysis is conducted through citation network and co-word analysis, revealing clusters that focus on partner selection, productivity, competitive advantages, competitive rules, network complementarity, and market concentration. The findings underscore the strategic value of alliances in the airline industry, emphasizing the need for complementary resources and strong network positions to achieve long-term success.
    5. Chapter 13. The Political Economy of the Board of Directors: The Case of Turkish Airlines (1956–2020)

      Leyla Adiloğlu-Yalçınkaya, Akansel Yalçınkaya
      The chapter delves into the political and economic factors that shaped the board of directors of Turkish Airlines from 1956 to 2020. It examines how environmental changes, including coups d'état and government policies, influenced the composition of the board. The study employs resource dependence theory to analyze the strategic management of board members, highlighting periods of militarization, demilitarization, and politicization. The detailed analysis offers insights into how Turkish Airlines adapted to its environment, reflecting the broader political and economic context of Turkey.
  6. Covid-19 Crisis in Airlines

    1. Frontmatter

    2. Chapter 14. The Malaysian Aviation Companies’ Responsiveness Plan in Mitigating the COVID-19 Crisis

      Corina Joseph
      The chapter delves into the strategic responsiveness plans of three major Malaysian airlines—AirAsia, Malaysian Airline System (MAS), and Malindo Air—in response to the COVID-19 pandemic. It examines the precautionary measures, capacity management, talent management, and financial recovery plans implemented by these airlines. AirAsia, for instance, introduced aggressive marketing strategies and capacity adjustments while also engaging in cost-cutting measures like layoffs and salary reductions. MAS focused on dynamic pricing and capacity reduction while ensuring the well-being of its employees and customers. Malindo Air, similarly, took stringent precautionary measures and implemented salary cuts to manage revenue shortfalls. The chapter also discusses the broader implications for the Malaysian aviation industry and suggests future strategies for recovery and resilience.
  7. Backmatter

Title
Corporate Governance, Sustainability, and Information Systems in the Aviation Sector, Volume I
Editors
Kasım Kiracı
Kıymet Tunca Çalıyurt
Copyright Year
2022
Publisher
Springer Nature Singapore
Electronic ISBN
978-981-16-9276-5
Print ISBN
978-981-16-9275-8
DOI
https://doi.org/10.1007/978-981-16-9276-5

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