Ching-Cheng Chao

Dynamic allocation of check-in facilities and dynamic assignment of passengers at air terminals

This study explores the dynamic allocation of check-in facilities and dynamic assignment of passengers at air terminals to achieve the objectives of minimizing total waiting time and better utilization of facilities. Taking into consideration different check-in services required by departing passengers, adjustments to allocations are made according to the maximum allowable wait time and the lowest service counter utilization rate allowed for the initial allocation condition. The developed model was validated for its feasibility and applied at the Taoyuan International Airport, Taiwan. The application results showed that dynamic allocation of check-in facilities can both reduce waiting times and increase service counter utilization rates. Such benefits can be further enhanced by dynamic assignment of passengers.

Market segmentation of airline cargo transport

This study evaluates the market segmentation of airline cargo transport according to service requirements of air freight forwarders. Data obtained using a questionnaire survey reveal that cargo safety is perceived as the most important service attribute, followed by freight rate, cargo tracking, and flight punctuality. Factor analysis is employed to group service attributes into six categories, namely assurance, promptness, empathy, convenience, value added, and customization. According to these service attributes, users of airline cargo transport are then classified into three market segments, namely professional service-oriented, empathy-oriented, and express service-oriented air freight forwarders. Suggestions on marketing strategy formulation for each respective segment are also provided as references to airlines.

Fleet dry/wet lease planning of airlines on strategic alliance

Airlines form strategic alliances in hope of cost minimisation. This study develops a model that deals with issues regarding fleet purchase, dry/wet leases and disposal of aircraft, taking into consideration the impact of a strategic alliance between airlines on fleet planning. Using dynamic programming to determine the initial optimal number and type of aircraft for dry/wet leasing, purchase and lease, the multi-objective model formulated can achieve minimisation of total fleet planning costs. Further, this study simulates the step-by-step negotiation process between decision-makers of two allied airlines. Through interactive bargaining, the airlines can adjust the alliance-related parameters to narrow the difference in expected profits and reach a final negotiated compromise solution acceptable to both airlines in the strategic alliance. A satisfactory negotiation result aiming for lower post-alliance costs in the best interests of one individual airline may not be the most optimal for the overall interests of the alliance. The sensitivity analysis of aircraft acquisition costs offer airlines a better understanding of the cost range and cost threshold for aircraft owned/held for different durations and acquired by different approaches.

Control strategies for departure process delays at airport passenger terminals

This paper explores the characteristics of process delays at airport passenger terminals and establishes a queuing model for both passengers and baggage served by different connecting type facilities. The impact of delay propagation on other processes and flights is investigated using an analytical approach. In addition, the extra costs incurred on passengers, process operators, and airlines are examined using the delay cost functions. To reduce the impact of process delays, various delay-controlled strategies are proposed, such as setting scheduled times for completion of a process, increasing the number of service counters, and priority service for emergent flights. Taoyuan International Airport in Taiwan is used as a case study when facing special events. Results showed that the model can effectively and efficiently estimate delay propagation and its costs. In addition, processes that are not consecutive allow more buffer time between different operations, which helps ease propagation of delays caused by previous services.

How relationship marketing, switching costs, and service quality impact customer satisfaction and loyalty in Taiwan’s airfreight forwarding industry?

ABSTRACT This study applies the service quality–satisfaction–loyalty framework to examine the impact of relationship marketing on customer loyalty with switching cost as a moderating variable in the context of airfreight forwarders. Data were collected from a questionnaire survey and two-step structural equation modeling was subsequently performed to test the research hypotheses. The results indicate that relationship marketing, switching costs, and customer satisfaction significantly increase shippers’ loyalty to airfreight forwarders. Relationship marketing is also found to have a positive impact on service quality. Moreover, the moderating effect of switching costs on the relationship between relationship marketing and customer loyalty is significant when the customer-perceived switching costs are low. Specifically, most perceived low switching cost firms are non-manufacturers, having a small size and producing machinery and metal goods. In conclusion, this study highlights the importance of relationship marketing and switching costs for customer loyalty in the airfreight forwarding industry.

The application of personality traits model on the freight forwarding service industry

Purpose The purpose of this study aims to investigate the relationship between employees’ personality traits and their job performances (including task performance and contextual performance) of Taiwanese freight forwarders by using responses from a NEO Personality Inventory-Revised Form (NEO-PI-R) questionnaire survey. Design/methodology/approach One of the most popular personality trait model is the five-factor model (FFM), which includes the big five domains, namely, openness, conscientiousness, extraversion, agreeableness and neuroticism (OCEAN). Each of these five domains includes six facets. Previous researchers have used OCEAN factors to describe the relationship between human personality and job performance. NEO Personality Inventory is a professional psychological assessment instrument published by psychological assessment resources. Multivariate analysis technique and regression technique are used to analyze surveyees’ responses. Findings Research results reveal the following four issues. The seniority of employees in a company has a positive relationship with their conscientiousness. Employees with higher score on the facets of the neuroticism domain have a negative correlation with their task performance and contextual performance. The relationship between employees’ openness to experience and job performance (both task performance and contextual performance) is not significant. Employees’ seniority has a positive correlation with both their task performance and contextual performance. In a nutshell, freight forwarding industry in Taiwan can use the facets in the neuroticism domain to screen and recruit appropriate job applicants. In addition, retaining senior employees could increase a forwarder’s task performance and contextual performance by their high degree of conscientiousness. Originality/value FFM model is a psychological theory dealing with the personality traits and human behavior. Freight forwarding is a labor-intensive business and is one of the most important sectors in the logistics industry. According the authors’ knowledge, the application of FFM on the logistics industry is simply not existed.