Roles of reciprocity and fairness concerns in airline-airport systems with environmental considerations

Aasheesh Dixit, Tsan-Ming Choi, Patanjal Kumar and Suresh K. Jakhar

European Journal of Operational Research, 2024, vol. 312, issue 3, 1011-1023

Abstract: Operations of airports and airlines are highly inter-dependent. Over the past decades, we have witnessed all kinds of alliances and coordination between airports and airlines. The observed industrial practices uncover that airports reward their airline partners with aligned objectives such as those in environmental sustainability, thereby displaying the positive reciprocity behaviors. However, the airport's preferential treatment towards a particular airline may induce the feeling of unfairness to the other airlines, leading to non-trivial peer-induced fairness concerns. In this paper, by building game-theoretic mathematical models, we analytically explore the impacts of reciprocity and fairness concerns on environmental sustainability in a single-airport two-airlines system. Our analysis highlights the importance of the cardinal relationship between an airport and airline(s) and shows that (i) a higher level of reciprocity of airport towards an airline helps improve the greening level, (ii) the presence of peer-induced fairness concern yields a lower revenue-sharing fraction of the fairness concerned airline, and (iii) improving the passengers’ environmental awareness is favorable for enhancing the environmental sustainability. To enhance research rigor, we examine various extended models. We show that the theoretical findings derived in the main model remain robust in the extensions.

Keywords: Logistics; Airport-airline operations; Aviation; Sustainability; Fairness concerns; Transport economics (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377221723005544
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:312:y:2024:i:3:p:1011-1023

DOI: 10.1016/j.ejor.2023.07.016

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().