Determination of the factors affecting airfreight and mapping similar countries via multidimensional scaling
Abstract
As long as people and freights need to move from one place to another, the civil aviation industry will always exist. In this study, a country-based examination has been made on total airfreight transport. Also, gross domestic product (GDP) and total population data were included in this study. 50 countries were selected according to the most recent value that included the years 2018 or 2019 and 26 of these were included in the analysis which was covered in all three rankings. The purpose of the study is to find the similarities between countries based on the total airfreight transportation, total GDP, and total population. The relationship between the three parameters was examined with the correlation analysis. Afterward, the associated parameters were taken as independent variables and the total airfreight transportation variable was modeled by multiple linear regression analysis. In light of these analyses, GDP and total population have a significant impact on total airfreight transportation. To check the assumptions related to outliers, residuals are determined. To show the outliers and the similarities of the countries clearly, the multidimensional scaling method is used. Multidimensional scaling configuration shows that Turkey and the United Kingdom have similarities in terms of total airfreight numbers.
Keyword : airfreight transport, gross domestic product, total population, multidimensional scaling
How to Cite
İnan, T. T., & Gökmen, N. (2021). Determination of the factors affecting airfreight and mapping similar countries via multidimensional scaling. Aviation, 25(2), 104-114. https://doi.org/10.3846/aviation.2021.14997
This work is licensed under a Creative Commons Attribution 4.0 International License.
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Kruskal, J. B., & Wish, M. (1978). Multidimensional scaling: Sage university papers: Quantitative applications in the social sciences. Sage University Paper Series on Quantitative Applications in the Social Sciences, No. 07-011. Sage Publications.
Kupfer, F., Meersman, H., Onghena, E., & Van de Voorde, E. (2011). Airfreight and merchandise trade: towards a disaggregated analysis. Journal of Air Transport Studies, 2(2), 28–48. https://doi.org/10.38008/jats.v2i2.99
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Magretta, J. (2002). Why business models matter. Harvard Business Review, 80(5), 86–133.
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Vancroonenburg, W., Verstichel, J., Tavernier, K., & Berghe, G. V. (2014). Automatic airfreight selection and weight balancing: a mixed integer programming approach. Transportation Research Part E: Logistics and Transportation Review, 65, 70–83. https://doi.org/10.1016/j.tre.2013.12.013
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Yan, S., Shih, Y. L., & Shiao, F. Y. (2008). Optimal airfreight container loading plans under stochastic demands for air express carriers. Transportation Research Part E: Logistics and Transportation Review, 44(3), 555–575. https://doi.org/10.1016/j.tre.2007.01.006
Al-Debei, M. M., & Avison, D. (2010). Developing a unified framework of the business model concept. European Journal of Information Systems, 19(3), 359–376. https://doi.org/10.1057/ejis.2010.21
Allaz, C. (2004). The history of airfreight and airmail from the 18th century. Christopher Foyle Publishing.
Alves, V., & Forte, R. (2015). A Cournot model for analysing the effects of an open skies agreement. Journal of Air Transport Management, 42, 125–134. https://doi.org/10.1016/j.jairtraman.2014.09.007
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Boeing. (2014). Boeing current market outlook 2014. Seattle, USA.
Borg, I., & Groenen, P. J. F. (2005). Springer series in statistics. Modern multidimensional scaling: Theory and applications (2nd ed.). Springer Science + Business Media.
Buja, A., Swayne, D. F., Littman, M. L., Dean, N., Hofmann, H., & Chen, L. (2008). Data visualization with multidimensional scaling. Journal of Computational and Graphical Statistics, 17(2), 444–472. https://doi.org/10.1198/106186008X318440
Button, K. (2003). Does the theory of the ‘core’ explain why airlines fail to cover their long-run costs of capital? Journal of Air Transport Management, 9(1), 5–14. https://doi.org/10.1016/S0969-6997(02)00075-3
Button, K. (1996). Liberalising European aviation: is there an empty core problem? Journal of Transport Economics and Policy, 30(3), 275–291.
Casadesus-Masanell, R., & Ricart, J. E. (2011). How to design a winning business model. Harvard Business Review, 89(1/2), 100–107.
Casadesus-Masanell, R., & Tarzijan, J. (2012). When one business model isn’t enough: LAN airlines flourishes by running three distinctly different operations at the same time. Harvard Business Review, 90(1/2), 132.
Chan, F. T., Bhagwat, R., Kumar, N., Tiwari, M. K., & Lam, P. (2006). Development of a decision support system for air-airfreight pallets loading problem: A case study. Expert Systems with Applications, 31(3), 472–485. https://doi.org/10.1016/j.eswa.2005.09.057
Chao, C. C., & Li, R. G. (2017). Effects of airfreight types and load efficiency on airline airfreight revenues. Journal of Air Transport Management, 61, 26–33. https://doi.org/10.1016/j.jairtraman.2015.11.006
Chen, P. Y., & Popovich, P. M. (2002). Quantitative applications in the social sciences: Correlation. SAGE Publications Ltd. https://doi.org/10.4135/9781412983808
Clutch. (2020). Air freight companies. https://clutch.co/logistics/air-freight-companies
Daft, J., & Albers, S. (2013). A conceptual framework for measuring airline business model convergence. Journal of Air Transport Management, 28, 47–54. https://doi.org/10.1016/j.jairtraman.2012.12.010
Daft, J., & Albers, S. (2015). An empirical analysis of airline business model convergence. Journal of Air Transport Management, 46, 3–11. https://doi.org/10.1016/j.jairtraman.2015.03.008
DaSilva, C. M., & Trkman, P. (2014). Business model: What it is and what it is not. Long Range Planning, 47(6), 379–389. https://doi.org/10.1016/j.lrp.2013.08.004
Doganis, R. (2006). The airline business. Psychology Press. https://doi.org/10.4324/9780203596807
Feng, B., Li, Y., & Shen, Z. J. M. (2015). Air cargo operations: Literature review and comparison with practices. Transportation Research Part C: Emerging Technologies, 56, 263–280. https://doi.org/10.1016/j.trc.2015.03.028
Giaglis, G. M., Kallio, J., Tinnila, M., & Tseng, A. (2006). An international comparison of operator‐driven business models. Business Process Management Journal, 12(3), 281–298. https://doi.org/10.1108/14637150610667962
Han, D. L., Tang, L. C., & Huang, H. C. (2010). A Markov model for single-leg airfreight revenue management under a bid-price policy. European Journal of Operational Research, 200(3), 800–811. https://doi.org/10.1016/j.ejor.2009.02.001
Hellermann, R. (2006). Capacity options for revenue management: theory and applications in the airfreight industry (Vol. 575). Springer Science & Business Media.
Huang, K., & Chang, K. C. (2010). An approximate algorithm for the two-dimensional airfreight revenue management problem. Transportation Research Part E: Logistics and Transportation Review, 46(3), 426–435. https://doi.org/10.1016/j.tre.2009.09.003
International Air Transport Association (IATA). (2020). Cargo capacity crunch: demand plummets but capacity disappears even faster. https://www.iata.org/en/pressroom/pr/2020-06-02-01/
International Civil Aviation Organization (ICAO). (2019). Council States 2019–2022. https://www.icao.int/about-icao/Council/Pages/council-states-2019-2022.aspx
International Civil Aviation Organization (ICAO). (2020a). ICAO Assembly elects new Council for three-year term. www.icao.int
International Civil Aviation Organization (ICAO). (2020b). The ICAO Council. https://www.icao.int/about-icao/Council/Pages/council.aspx
Investopedia. (2020). Gross Domestic Product (GDP). https://www.investopedia.com/terms/g/gdp.asp
Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business model. Harvard Business Review, 86(12), 57–68.
Kalakou, S., & Macario, R. (2013). An innovative framework for the study and structure of airport business models. Case Studies on Transport Policy, 1(1–2), 2–17. https://doi.org/10.1016/j.cstp.2013.09.001
Kasilingam, R. G. (1996). Airfreight revenue management: characteristics and complexities. European Journal of Operational Research, 96(1), 36–44. https://doi.org/10.1016/0377-2217(95)00329-0
Keen, P., & Qureshi, S. (2006, January). Organizational transformation through business models: a framework for business model design. In Proceedings of the 39th Annual Hawaii International Conference on System Sciences (HICSS’06), Vol. 8 (pp. 206b-206b). IEEE. https://doi.org/10.1109/HICSS.2006.376
Kruskal, W. H., & Wallis, W. A. (1952). Use of ranks in onecriterion variance analysis. Journal of the American Statistical Association, 47(260), 583–621. https://doi.org/10.1080/01621459.1952.10483441
Kruskal, J. B., & Wish, M. (1978). Multidimensional scaling: Sage university papers: Quantitative applications in the social sciences. Sage University Paper Series on Quantitative Applications in the Social Sciences, No. 07-011. Sage Publications.
Kupfer, F., Meersman, H., Onghena, E., & Van de Voorde, E. (2011). Airfreight and merchandise trade: towards a disaggregated analysis. Journal of Air Transport Studies, 2(2), 28–48. https://doi.org/10.38008/jats.v2i2.99
Leem, C. S., Suh, H. S., & Kim, D. S. (2004). A classification of mobile business models and its applications. Industrial Management & Data Systems, 104(1). https://doi.org/10.1108/02635570410514115
Lohmann, G., & Koo, T. T. (2013). The airline business model spectrum. Journal of Air Transport Management, 31, 7–9. https://doi.org/10.1016/j.jairtraman.2012.10.005
Lurkin, V., & Schyns, M. (2015). The airline container loading problem with pickup and delivery. European Journal of Operational Research, 244(3), 955–965. https://doi.org/10.1016/j.ejor.2015.02.027
Magretta, J. (2002). Why business models matter. Harvard Business Review, 80(5), 86–133.
Mann, H. B., & Whitney, D. R. (1947). On a test of whether one of two random variables is stochastically larger than the other. The Annals of Mathematical Statistics, 18(1), 50–60. https://doi.org/10.1214/aoms/1177730491
Mansfield, B. (2004). Competence in transition. Journal of European Industrial Training, 28, 296–309. https://doi.org/10.1108/03090590410527672
MedCalc. (2013). MedCalc Statistical Software version 19.2.6. Med-Calc Software Ltd, Ostend, Belgium. https://www.medcalc.org
Moorman, R. (2007). Rejuvenating airfreight. Airfreight World.
Morrell, P. S. (2012). Moving boxes by air: the economics of international airfreight. Ashgate Publishing, Ltd.
Morris, M., Schindehutte, M., & Allen, J. (2005). The entrepreneur’s business model: toward a unified perspective. Journal of Business Research, 58(6), 726–735. https://doi.org/10.1016/j.jbusres.2003.11.001
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley & Sons.
Osterwalder, A., Pigneur, Y., & Tucci, C. L. (2005). Clarifying business models: Origins, present, and future of the concept. Communications of the Association for Information Systems, 16(1), 1–25. https://doi.org/10.17705/1CAIS.01601
Pereira, B. A., & Caetano, M. (2015). A conceptual business model framework applied to air transport. Journal of Air Transport Management, 44-45, 70–76. https://doi.org/10.1016/j.jairtraman.2015.02.006
Poret, M. D., O’Connell, J. F., & Warnock-Smith, D. (2015). The economic viability of longhaul low cost operations: evidence from the transatlantic market. Journal of Air Transport Management, 42, 272–281. https://doi.org/10.1016/j.jairtraman.2014.11.007
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78.
Quak, H., Balm, S., & Posthumus, B. (2014). Evaluation of city logistics solutions with business model analysis. Procedia – Social and Behavioral Sciences, 125, 111–124. https://doi.org/10.1016/j.sbspro.2014.01.1460
Reis, V., & Macario, R. (2015). Promoting integrated passenger transport solutions using a business approach. Case Studies on Transport Policy, 3(1), 66–77. https://doi.org/10.1016/j.cstp.2014.08.002
Rhoades, D. L. (2016). Evolution of international aviation: Phoenix rising. Routledge. https://doi.org/10.4324/9781315581361
Saloodo. (2020). Air freight. https://www.saloodo.com/logisticsdictionary/air-freight/
The World Bank. (2020). https://data.worldbank.org
Timmers, P. (1998). Business models for electronic markets. Electronic Markets, 8(2), 3–8. https://doi.org/10.1080/10196789800000016
Vancroonenburg, W., Verstichel, J., Tavernier, K., & Berghe, G. V. (2014). Automatic airfreight selection and weight balancing: a mixed integer programming approach. Transportation Research Part E: Logistics and Transportation Review, 65, 70–83. https://doi.org/10.1016/j.tre.2013.12.013
Wang, J. J., & Heinonen, T. H. (2015). Aeropolitics in East Asia: an institutional approach to air transport liberalization. Journal of Air Transport Management, 42, 176–183. https://doi.org/10.1016/j.jairtraman.2014.10.002
Wikstrom, K., Artto, K., Kujala, J., & Soderlund, J. (2010). Business models in project business. International Journal of Project Management, 28(8), 832–841. https://doi.org/10.1016/j.ijproman.2010.07.001
Yan, S., Shih, Y. L., & Shiao, F. Y. (2008). Optimal airfreight container loading plans under stochastic demands for air express carriers. Transportation Research Part E: Logistics and Transportation Review, 44(3), 555–575. https://doi.org/10.1016/j.tre.2007.01.006