V. Conclusions and Recommendation
5.2. Managerial Implication
This study had come up that the introduction of Air Policy might change aviation industries performance. Airline Deregulation usually brings immediate welfare to airlines and users, however, air policy could bring negative impact to carrier as competitors increase in the market. As airlines could provide better services, they would be capable to attract new customers.
This study has proven that aviation industries have several weaknesses that government needs to care more about. The distribution system is very complex and have many different stakeholder involved in it; however, none of them have complete responsibility of the whole logistic system. Therefore, government plays an essential role in forecasting the limitation of transportation capacity, infrastructure inefficiencies, environmental pollution and social cost.
After investigate aviation industries behavior and Air Policy effects, there are some suggestion for aviation industries would be provided below.
Suggestion for the different stakeholders:
A suggestion for government is that they should pay more attention in their forecasting and planning of capacity demand. As government plays a significant function in the freight transportation supply chain, they should develop better mode of planning and forecasting transportation system capacity demand.
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On the other hand, suggest carrier to form group and have agreement with Mainland China airlines. The Cross Strait Air Policy only allows Mainland China and Taiwan airlines to have direct flight between both sides. However, only several airport at Mainland where opened for Taiwanese airlines to call at them. Asides, Mainland China has domestic air regulation in which the markets are served by specific Chinese airlines. As suggestion for Taiwanese carriers is to make alliance and partnership with Mainland China airlines, by this way, Taiwanese airlines can provide better services and complete freight flight connection for their customers.
Besides, as the implementation of the Cross Strait Air Policy is still recent, some services provided by carrier would constrain some expectation of shipper about services quality and reliability. Therefore, I would suggest shippers to meet and test carrier's services quality, first. After ensured that carrier meet their necessity, shipper could strength their relationships.
This study is a contribution to the literature on the Impacts of Cross Strait Direct Air Policy with a specific focus on Taiwanese’s aviation industries. There still needs to done more research on this topic, due to the fact that the Cross Strait Direct Air Policy is not totally mature and the existing literature on this topic is still limited.
5.3. Limitation of Study This research study has several limitations that should be considered for future research. First of all, this research topic is very extensive. As the research topic is very large, study of the effect of Direct Air Policy on aviation industries wasn’t analyzed very deeply.
Secondly, the size sample and diversity of respondent could constrain the analysis of the impact of Air Policy on carriers, high tech industries and society. As the size sample and survey’s respondent collected were few, the results are not strong enough for proving the real desire and concerning of airlines industries, high tech industries and government.
Another constrained point that needs to highlight is the job position and the knowledge that each respondent have on Cross Strait Air Policy, their own industries and the demand of their customers.
For future research, I would suggest add more number of companies and job’s position diversity. The diversity of respondent would help to establish clearly the needs among the industries in study. Furthermore, due to the size of this study, it can be used as preliminary
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research which can be duplicated with a much larger sample volume to observe if the outcome remains the similar even when the quantity of respondents increases.
5.4. Suggestions on Future Research
For future research of this topic, I suggested some studies focus. One suggestion for future research, it is to add more diversity of industries to the study of the effect of Air Policy.
By adding more industries in the research study could establish the full impact of Air Policy on all the economic sectors.
Otherwise, second suggestion for future research, it is to study only one industry. The contribution of studying only one industry is that the effect and results of Air Policy could be study more deeply. Researcher could analyze more profoundly the evolution of the industry and develop more specific strategic for them. And if the researchers have interest in passenger flight, the third suggestion, it is to study the impact that Cross Strait Air Policy has on air passenger market.
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120 Appendix I Research Criteria
Connotation of the effects of having direct air transportation between Mainland China and Taiwan on Taiwanese aviation industries:
Mobility: This criterion wants to capture the benefits of the users
(M1)Travel Time Savings: many studies have established that the value of travel time savings is linked with the wages paid to drivers plus the time cost of cargo inventory for commercial vehicles (auto, bus, vessel, and aircraft).
(M2)Improved Reliability Benefits: greater predictability in travel time reduces the costs associated with the scheduling of activities. Reliability: can allow shippers to have tighter control of delivery schedules and inventories all along the supply chain.
(M3)Vehicle Operating and Ownership Benefits: (operating cost) There is an extensive literature, for vehicles of all types, which can be used to relate changes in industries network (carrier: fleet, routing, scheduling, etc) & (shipper: inventory, warehouse, damage and loss, etc) in order to save cost.
(M4)Other User Benefits: (user cost) The paying of user fees can involve real resource costs (changes in travel behavior toward a less preferred mode, route, time of travel, etc.) that are above and beyond the user fee cash payments. User fees are treated as both a cost to the user and a benefit to the operator.
Finance: This criterion wants to capture the cost of the users
(F1)Operating Cost: economic resources required to operate facilities, products and services.
(F2)Capital Cost: economic resource required to make capital investment to facilities, products and services.
(F3)Operating Revenues: The revenues generated as part of the operations of the transportation improvements or programs. Revenue rise through payments made by buyer and transportation user.
(F4)Influence of Finance on the Economy: When transportation funds are not generated from user fees, broader tax instruments must be implemented in order to finance investments. These broader tax instruments have potential consequences on economic activity by distorting
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non‐transportation related economic decisions and displacing productive economic activity.
This would bring in the increasing of general taxes to pay for the transportation investments
Growth Management: to assess the degree of the distribution of population and employment within the region.
(GM1)Population: number of person within the region, area, geographic. The centers, in the region, area, geographic, are intended to attract residents and businesses because of their proximity to services and jobs, a variety of housing types, access to regional amenities, high quality transit service, and other advantages. Centers in other Larger Cities also play an increasing role over time as places that accommodate growth. These centers provide local and regional services and amenities, and will become more significant secondary job centers.
(GM2)Employment: number of jobs within the region, area, geographic. Increased share of jobs in region, area, geographic is an important indicator of job opportunities and accessibility within the area.
(GM3)Jobs to Housing Balance: ratio of jobs to person by region, area. A jobs-person ratio closer to the regional ratio would imply that residents have close and improved access to job locations, minimizing the need to make long work commutes, or to make lengthy trips to meet daily needs.
(GM4)Population and Jobs in Centers: number of population and jobs within the regional growth center and manufacturing industrial center. The centers are intended to attract residents and businesses because of their proximity to services and jobs, a variety of housing types, and their access to regional amenities
Economic Prosperity: measure the potential impacts of the having direct Cross Strait air transportation on economic prosperity by measuring those parts of the transportation system that may tend to improve or degrade the economic vitality of the region.
(EP1)Benefits to Low‐wage and High‐wage Employment: Investments in the transportation infrastructure would improve multimodal accessibility and then improved ability to attract jobs in high wage and low wage job sectors from outside the region.
(EP2)Benefits to Cluster Employment: Changes in user benefits that accrue to parts of the region with high concentrations of employment in existing cluster industries. Investments in
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the transportation infrastructure would improve multimodal accessibility to the jobs located in targeted clusters and then improved ability to attract jobs in the targeted clusters from outside the region.
(EP3)Benefits to Freight‐Related Employment: Investments in the transportation infrastructure would improve accessibility to freight‐related industries and then provide incentives for more freight to move through the region. Key locations of freight‐related employment include ports, intermodal terminals, warehouse and distribution centers, and regional manufacturing and industrial centers.
Environmental Stewardship: want to evaluate if the carrier activities and shipper activities have the ability to reduce pollution levels, reduce the runoff caused by impervious surfaces, and retain natural resource lands.
(ES1)Vehicle and Stationary Emission Benefits (Air Quality): Vehicle and building use results in the production of various pollutants, each of which imposes costs in terms of property damage, human and environmental health. There has been extensive study of the effects of various pollutants on the mortality and morbidity of populations, and the damage done to plants and property.
(ES2)Impervious Surfaces (Water Quality): A key indicator of the health of the region's water resources is the amount of impervious surface across the region as whole. The frequency and intensity of peak hydrological flows and the volume of storm‐water runoff all increase when we build more roads, buildings and parking lots. Higher levels of imperviousness are connected to elevated summer water temperatures and more polluted runoff entering streams and water bodies. The roads, buildings, and parkand ride lots in each transportation alternative indicate whether there are greater amounts of impervious surfaces contributing to greater amounts of runoff.
(ES3)Agriculture and Natural Resource Lands (Open Space): The pressure to develop agricultural and natural resource lands will increase as the development on land nearby increases. This pressure will increase the potential to lose agricultural and natural resource lands to development. This potential reduction in natural resource lands is seen as a injury to the environment.
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(ES4)Energy Usage from Vehicle and Building Use: Buildings and vehicles consume fuel and electric energy to operate. Energy consumption contributes to greenhouse gases and other pollutants.
(ES5)Noise level
Quality of Life: There are numerous ways that transportation planning of carriers and shippers can improve the quality of life for the region’s population, including benefits related to safety, human health, and security.
(QL1)Accident Cost Savings: The costs of accident risk are determined by the probability of an accident, severity of accidents and the costs that are incurred as a result of accidents. All of these factors are influenced by loadings and speeds on transportation facilities. Many literatures provide adequate guidelines on how to value mortality, morbidity and property loss consequences of accidents.
(QL2) Non-motorized Travel: As growth patterns provide more housing in proximity to employment and vice versa and as more pedestrian and bicycle facilities are provided, there are more opportunities for travelers to choose walking and biking as a preferred mode of travel.
This will improve the health and well-being of travelers who choose to walk and bike more often.
(QL3)Redundancy: Redundancy is a reflection of the substitute facilities and/or services available to support travel demand if an event causes facilities and/or services to be damaged or destroyed. As a result, the redundancy measure will include the total amount of arterial and freeway lane miles for road users and the number of bus and rail service hours for transit users and number of flight and frequency for aircraft carrier. Redundancy measures can indicate the capacity of the system to support users (road, transit, and freight) if specific elements of the systems were to fail.
Equity: is an important criterion to many different audiences evaluating the transportation system.
(E1)Geographic Distribution of Benefits: Decision makers are interested in the way that benefits of transportation projects are distributed across the region. Some transportation improvements have very localized effects while others distribute benefits more broadly.
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(E2)Income Distribution of Benefits: Decision makers are interested in the way that benefits of transportation projects are distributed across segments of society. Some transportation improvements have broad benefits to users of the transportation system while others may distribute benefits more narrowly to users with either higher or lower values of time, and thus incomes.
(E3)Distribution of Benefits to Personal and Commercial Users: Decision makers are interested in the way that benefits of transportation projects are distributed across classes of vehicles. Some transportation improvements have broad benefits to users of the transportation system while others may distribute benefits more narrowly to specific users, such as freight vehicles.
(E4)Benefits to Environmental Justice Populations: Decision makers are interested in the way that benefits of transportation projects are distributed across segments of society. Some transportation improvements have broad benefits to all users of the transportation system while others may distribute benefits more narrowly. This distributional issue relates to whether specific vulnerable populations benefit from transportation improvements. Environmental justice defines as populations with low income populations, different race, different color, different sex, national origin and other.
125 Appendix II
125 Appendix II