| Keywords [eng] |
Globalization, European airlines, low-cost carriers, full-service carriers, multiple regression, panel data. Globalizacija, Europos oro linijos, pigių skrydžių bendrovės, visų paslaugų teikėjai, daugialypė regresija, skydelio duomenys. |
| Abstract [eng] |
Impact of Globalization on European Airline Market. The main purpose of this Master Thesis is to explore the impact of globalization on operational and financial performance of European airlines and to find out, if business model (full-service airline, low-cost airline) of airline can change the impact of globalization on airlines’ performance. The Master Thesis consists of four main parts: the literature review, the research methodology and its results, the conclusions and recommendations. Literature analysis discovers the essence of globalization and its dimensions, covers the globalization process in European airline industry, which lies in active usage of Internet technologies, integration of airlines into alliances and liberalization, that, consequently, let to increasing of the competition due to emergence of low-cost carriers. It was presented two business models of airlines – LCCs and FSCs – including their peculiarities and differences. Also, in the literature review it was explained how globalization affects business performance. Basing on proposed research model, the author conducted non-experimental quantitative research in order to analyze the relationship between independent globalization variables (level of globalization in Europe, globalization opportunity, globalization threat) and dependent airlines’ performance indicators: operational (available seat kilometer (ASK), load factor, number of passengers carried (PAX), costs per ASK (CASK)) and financial (revenue per kilometer (RPK), yield, net profit margin, return on assets (ROA)). Collecting secondary data from annual reports of 19 European airlines and other sources was chosen as a main data collection technique, where European means, that airlines are founded in countries, which are members of European Common Aviation Area (ECAA). As it is longitudinal data (2007-2017), it was applied panel data approach with multiple regression analysis, using STATA. The performed research revealed that globalization influences operational performance, namely ASK, PAX and load factor. From financial performance indicator only RPK is positively influenced by globalization; net profit margin and ROA are affected by globalization as well, but this impact is weak. Additionally, it was proved that globalization affects low-cost airlines and full-service airlines performance unequally: in FSCs’ sample significant positive moderate effect of globalization on the load factor is observed, in LCCs’ sample – on the profitability. Taking everything into account, the conclusions and recommendations were formulated to summarize the main insights of literature analysis as well as the results of the performed research. |
