Sustainability was investigated in the ability to reliably anticipate airline market share, which is critical for effective business strategy. As a result, a model was created to address the issue of airline market share across all Nigerian airport rout es. The model took into account the explanatory variables average fares paid by various airlines passengers, number of competitors at each route, frequency of flight, and the total number of enplaned passengers. The model illustrated how it may be used to determine an airline’s sustainability. It was observed that all of the parameters in the model were statistically significant and exhibited the predicted signs. As a result, the market share of Nigerian airlines can assess the sustainability of Nigerian airlines. As a result, it is proposed that the federal government and aviation regulatory bodies provide a level playing field to all commercial airline operators, without any kind of protectionism. Airlines’ services should be completely deregulated, and the forces of perfect market competition should drive the airline’s overall health. The government should provide a fair and supportive climate for airline operators as soon as possible. The ease of doing airline business must be implemented honestly and competitively. The degree of competition has a detrimental impact on the airline’s market share, especially if the airline operates in a regulated market. As a result, perfect competition for the airline should be promoted.
KeywordsAirlinesPassengersSustainabilityPatronageCompetition and Flight
Ogunsanya, A. (2007) Transport Sector Reforms. In: Saliu, H., Amali, E. and Olawepo, R., Eds., Nigerian’s Reforms Programme: Issues and Challenges, Ventage Publisher, Ibadan, 285-302.
Reagan, R. (1982) An Analysis of President Reagan’s Budget Revisions for Fiscal Year 1982. The Congress of the United States, Congressional Budget Office, Washington DC. https://www.cbo.gov
Herszenhaut, M. (2010) Strategies of Low-Cost Airlines in Emerging Countries. Lambert Academic Publishing, Saarbrücken.
Sakalasooriya, N. (2021) Conceptual Analysis of Sustainability and Sustainable Development. Open Journal of Social Sciences, 9, 396-414. https://doi.org/10.4236/jss.2021.93026
Ramanathan, R. (2001) The Long-Run Behaviour of Transport Performance in India: A Cointegration Approach. Transportation Research Part A: Policy and Practice, 35, 309-320. https://doi.org/10.1016/S0965-8564(99)00060-9
Ismail, N.A. and Jenatabadi, H.S. (2014) The Influence of Firm Age on the Relationships of Airline Performance, Economic Situation and Internal Operation. Transportation Research Part A: Policy and Practice, 67, 212-224. https://doi.org/10.1016/j.tra.2014.06.010
Jenatabadi, H.S. and Ismail, N.A. (2014) Application of Structural Equation Modelling for Estimating Airline Performance. Journal of Air Transport Management, 40, 25-33. https://doi.org/10.1016/j.jairtraman.2014.05.005
Rangarajan, S. and Prasad, V.A. (2014) In the Indian Airline Industry-Will, the Flight Be Smooth? Emerald Emerging Markets Case Studies, 4, 1-18. https://doi.org/10.1108/EEMCS-05-2013-0057
Lee, B.L. and Worthington, A.C. (2014) Technical Efficiency of Mainstream Airlines and Low-Cost Carriers: New Evidence Using Bootstrap Data Envelopment Analysis Truncated Regression. Journal of Air Transport Management, 38, 15-20. https://doi.org/10.1016/j.jairtraman.2013.12.013
Liu, C.M. (2009) Entry Behaviour and Financial Distress: An Empirical Analysis of the US Domestic Airline Industry. Journal of Transport Economics and Policy, 43, 237-256.
Barros, C.P. and Couto, E. (2013) Productivity Analysis of European Airlines, 2000-2011. Journal of Air Transport Management, 31, 11-13. https://doi.org/10.1016/j.jairtraman.2012.10.006
Moon, J., Lee, W.S. and Dattilo, J. (2015) Determinants of the Payout Decision in the Airline Industry. Journal of Air Transport Management, 42, 282-288. https://doi.org/10.1016/j.jairtraman.2014.11.009
Carastro, M.J. (2010) Nonfinancial Performance Indicators for US Airlines: A Statistical Analysis. PhD. Thesis, University of Phoenix, Tempe.
Ouellette, P., Petit, P., Tessier-Parent, L.P. and Vigeant, S. (2010) Introducing Regulation in the Measurement of Efficiency, with an Application to the Canadian Air Carriers Industry. European Journal of Operational Research, 200, 216-226. https://doi.org/10.1016/j.ejor.2008.11.041
Cui, Q. and Li, Y. (2016) Airline Energy Efficiency Measures Considering Carbon Abatement: A New Strategic Framework. Transport. Transportation Research Part D: Transport and Environment, 49, 246-258. https://doi.org/10.1016/j.trd.2016.10.003
Button, K. and Neiva, R. (2014) Economic Efficiency of European Air Traffic Control Systems. Journal of Transport Economics and Policy, 48, 65-80.
Jenatabadi, H.S. (2013) Impact of Economic Performance on Organizational Capacity and Capability: A Case Study in the Airline Industry. International Journal of Business and Management, 8, 112-120. https://doi.org/10.5539/ijbm.v8n17p112
Hsu, C.J., Yen, J.R., Chang, Y.C. and Woon, H.K. (2016) How Do the Services of Low-Cost Carriers Affect Passengers’ Behavioural Intentions to Revisit a Destination? Journal of Air Transport Management, 52, 111-116. https://doi.org/10.1016/j.jairtraman.2015.12.006
Kim, S.L. and Cho, Y.S. (2016) Study on Internal Service Quality, Job Satisfaction and Customer Satisfaction in Airline Industry. Journal of the Korea Society of Computer and Information, 21, 113-121. https://doi.org/10.9708/jksci.2016.21.3.113
Park, E., Lee, S., Kwon, S.J. and Del Pobil, A.P. (2015) Determinants of Behavioural Intention to Use South Korean Airline Services: Effects of Service Quality and Corporate Social Responsibility. Sustainability, 7, 12106-12121. https://doi.org/10.3390/su70912106
Geman, S. and Geman, D. (2015) Stochastic Relaxation, Gibbs Distributions and the Bayesian Restoration of Images. Journal of Applied Statistics, 20, 25-62. https://doi.org/10.1080/02664769300000058
Malone, T., Weill, P., Lai, R., D’Urso, V., Herman, G., Apel, T.G. and Woerner, S. (2006) Do some Business Models Perform Better than Others? MIT Sloan Research Paper No. 4615-06, Massachusetts Institute of Technology, Cambridge, MA. https://doi.org/10.2139/ssrn.920667
Collins, D. L., Román, F.J. and Chan, H.C. (2011) An Empirical Investigation of the Relationship between Economic Sustainability and Profitability Persistence and Firms’ Choice of the Business Model: Evidence from the U.S. Airline Industry. Journal of Management Accounting Research, 23, 37-70. https://doi.org/10.2308/jmar-10124
Potter, G. (2011) Discussion of an Empirical Investigation of the Relationship between Economic Sustainability and Profitability Persistence and Firms’ Choice of the Business Model: Evidence from the U.S. Airline Industry. Journal of Management Accounting Research, 23, 71-76. https://doi.org/10.2308/jmar-10153
Flamholtz, E.G. and Randle, Y. (2012) Corporate Culture, Business Models, Competitive Advantage, Strategic Assets and the Bottom Line. Journal of Human Resource Costing & Accounting, 16, 76-94. https://doi.org/10.1108/14013381211284227
Wooldridge, J.M. (2010) Econometric Analysis of Cross-Section and Panel Data. 2nd Edition, MIT Press, Cambridge, MA.
Zuidberg, J. (2014) Identifying Airline Cost Economies: An Econometric Analysis of the Factors Affecting Aircraft Operating Costs. Journal of Air Transport Management, 40, 86-95. https://doi.org/10.1016/j.jairtraman.2014.06.007
Johnston, A. and Ozment, J. (2013) Economies of Scale in the US Airline Industry. Transportation Research Part E: Logistics and Transportation Review, 51, 95-108. https://doi.org/10.1016/j.tre.2012.09.002
Oum, T.H. and Zhang, Y. (1991) The Utilisation of Quasi-Fixed Inputs and Estimation of Cost Functions: An Application to Airline Costs. Journal of Transport Economics and Policy, 25, 121-134.
Hansen, M.M., Gillen, D. and Djafarian-Tehrani, R. (2001) Aviation Infrastructure Performance and Airline Cost: A Statistical Cost Estimation Approach. Transportation Research Part E: Logistics and Transportation Review, 37, 1-23. https://doi.org/10.1016/S1366-5545(00)00008-9