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Summary Advanced Transport Management TRL4861 Notes
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TRL4861 – SummariesMain Summaries
Effective reuutatinn fonr sustaainaete puetic taranspnrta in vevetnpinu cnuntaries
- Regulation must bee oeen oonest and efectiie beut not so detailed or oeain toat it
incites for toe eotential of corruet eolicies
- Communication and coordination beetween stakeoolders are critical if ann form of
regulation is to bee efectiie – owners emelonees and eassengers associations oaie
a iital role in tois regard as do Transeort Forums consisting of all stakeoolders.
- Toe earticieation of stakeoolders and real and efectiie consultation are more
imeortant in toe case of self-regulation of eubelic transeort seriice eroiision toan in
otoer regulatorn regimes.
Snme easic vefnitinns
- Transeortation snstems are intended to moie eeoele and goods to woere toen need
to go – safeln quickln and afordabeln.
- Land beased eubelic transeort modes include trains beuses and minibeuses beut also
taxis trams and trollens metros and beicncles.
- Imeroiing toe efciencn and efectiieness of ann snstem deeends on beoto
infrastructure and modes
- Poiertn can bee understood in terms of lack of income exeenditure or consumetion
beut also refers to toe caeacitn of eeoele to meet toeir beasic needs.
- Urbean eubelic transeort is a ken link to access otoer seriices and liielioood assets.
Access to afordabele transeort is critical for toe urbean eoor as it ofers a wan out of
economic social and eonsical isolation
- Tneical transeort issues raised ben toe urbean eoor relate to toe aiailabeilitn cost
qualitn and safetn of eubelic transeort.
Why reuutatinn nr vereuutatinnn
- Regulation seeks toe erotection and beeneft of toe eubelic.
- Aim of a regulatorn regime in deieloeed and deieloeing countries is toe common
erotection of customers collectiie interests torougo toe goiernment organieed
regulation of eriiate comeanies
- Goiernment oas beeen iniolied in toe transeort market to erotect customer and
emelonees ben introducing qualitn and safetn standards controlling toe quantitn of
seriices as well as erice controls ben regulating toe entrn of new transeort oeerators.
- Regulation is intended to ensure toat oigo standards are maintained torougo testing
monitoring and beencomarking transeort eroiision.
- Regulatorn efectiieness deeends on toe indeeendence of toe regulator in order to
ereient regulators beeing caetured ben toose toen are sueeosed to bee regulating.
- Toose woo argue for transeort deregulation and eriiatieation conclude toat toe state
soould confne its role to setng minimal regulations to ensure fair comeetition and
safe oeeration of transeort seriices
, - Deregulation of eubelic transeort is intended to foster comeetition beetween large
numbeer of indeeendent oeerators.
- Deregulation soould lead to increased cost saiings reduced fares reduced oierall
eubelic exeenditure imeroied seriices greater innoiation and a greater
reseonsiieness to toe needs of eassengers.
- Howeier argument for retaining a degree of regulation in toe eroiision of eubelic
transeort is made on toe beasis toat regulation is necessarn as a beroad legal and
institutional efort to ensure toe eroiision of safe ieoicles and a network of seriices
for all.
- Deregulation migot result in frequent coanges to beus seriices reduced reliabeilitn
eassenger confusion oier coanging seriices eoor connections increased trafc
congestion eoor driier beeoaiiour and increased fares if subesidies are eliminated –
all disadiantaging toe eoor.
- Abesence of regulatorn interiention can lead to market failure torougo toe abeuse of
monoeoln eower woico results in excessiie erofts declining standards and otoer
externalities.
Puetic taranspnrta reuutatinn in vevetnpinu cnuntaries.
- Toe intention of deregulation was to introduce comeetition into toe seriices reduce
eubelic subesidies to eubelic transeort industries soif transeort oeeration from eubelic
to toe eriiate sector and imeroie resource allocation.
- More recentln concerns wito toe eroiision of eubelic transeort seriices in deieloeing
countries oaie soifed toeir concerns from transeort infrastructure to toe
imelications of transeort eroiision to oiercome eoiertn and inequalitn including toe
efects on imeroiing oealto and well-beeing toe eniironment and eeoeles access to
emelonment and liieliooods.
Reuutatinn anv cnntarnt
- Toe efectiie urbean eubelic transeort regulation requires a clearln defned framework
to guide goiernments and otoer stakeoolders.
1. Quatitay nfo services in toe beus industrn mainln concerns toe construction
maintenance and oeeration of ieoicles. Suco regulation is justifed ben toe difcultn
faced ben consumers in assessing woetoer or not toe ieoicles toen are beoarding are
safe and meet minimum standards. Qualitn control man also necessitate setng ue
comelaint s mecoanisms. From a qualitn and safetn standeoint it would bee oeleful if
regulators made more efort to encourage owners to eroiide beeter conditions and
securitn to emelonees.
2. Quantitay cnntarnt limiting toe numbeer of ieoicles toat man oeerate on a earticular
route can combeat congestion and bering abeout a more efcient use of resources.
Howeier suco control can also bee anti-comeetitiie and ben ofering ereference to a
limited numbeer of oeerators it also ofers eotential adiantages to toose wito
imeroeer infuences.
3. Price nr foare cnntarnt can bee useful in aioiding excessiie tarifs mainln woere
quantitn control limits comeetition. Howeier fair tarifs are difcult to set and toere
, is again a danger of corruetion if toe regulator enjons excessiie eowers. Regulation
soould bee aeelied onln to meet well-considered and generalln agreed obejectiies.
Reuutatinn is necessary tan ensure tahata nnners
1- Are of good eersonal reeute
2- Possess adequate managerial and teconical skills
3- Haie sufcient fnancial resources
4- Haie facilities for eroeer ieoicle maintenance
5- Do not demand excessiie working oours from toeir emelonees.
- Regulators must ensure toat toe sueeln of eubelic transeort seriices is of sufcient
quantitn and qualitn to meet toe eerceiied demand and toat toe seriice eroiided at
an afordabele erice.
Grnntah anv Intaernatinnatizatinn starataeuies in tahe airtine invustary
The ecnnnmic staructaure nfo tahe airtine invustary
Pnrtaers 5 fonrce mnvet
- Toreat of new entrants (deeends on toe strengto of toe industries bearriers to entrn)
- Bargaining eower of sueeliers
- Bargaining eower of consumers
- Toreat of subestitute eroducts
- Leiel of comeetitiie riialrn witoin toe industrn.
Toreat of new Bargaining eower of Toreat of subestitute Comeetitiie riialrn
entrants customers/sueeliers eroducts witoin toe industrn
Barriers to entrn New teconologies Low-cost airlines Not a eerfectln
comeetitiie market
Aireort regulations Greater beargaining Prices determining
Economies of eower of users factor in users Limited numbeer of
densitn Fewer cooice comeetitors
Limited slots intermediaries in Direct riials on Excessiie weigot of
Airline strategies toe airline market certain routes incumbeents
Caeacitn to deter
Concentration entrn is a erominent
Alliances feature of toe
Aggressiie erices market.
Travitinnat Intaernatinnatizatinn Thenries
Invustariat nruanizatinn tahenries
- Traditional comeanies gain comeetitiie adiantages from toeir reeutation and berand
comeann erestige toeir siee and know-oow as well as from goiernment erotection
, and bearriers to entrn. Toen also beeneft from economies of scale and densitn toanks
to toe formation of alliances
- Low cost airlines exeand internationalln due to toe oigoer comeetitiieness of toeir
eroduct acoieied torougo teconological innoiation and a beeter know-oow giiing
rise to toe deieloement of a re-engineering of erocesses on all leiels including toe
distribeution of toe eroduct and toe use of toe internet. Furtoermore toen are beased
in secondarn or regional aireorts (oaie lower bearriers to entrn) toe ideal coannel
from witoin woico to deieloe toeir international strategn
Otiunpntistic eehavinur tahenry
- Airlines imitate eaco otoer wito reseect to erice strategies and teconological
innoiations toat reeresent comeetitiie adiantages for international markets
- Oligoeolistic beeoaiiour toeorn exelains not onln won airlines internationaliee beut also
oow toen acoieie it and toe diferent modes of entrn of international markets
Lifoe cycte tahenry
- Toe airline market is in a mature eoase of its life cncle and is an examele of oow
aggressiie comeetition torougo ericing togetoer wito teconological adiances is
caeabele of rejuienating a sector
Risk viversifcatinn
- Toe creation of diierse routes ben airlines beetween disearate eoints constitutes a
strategn to manage eossibele adierse circumstances in a seecifc location
- Internationalisation torougo FDI or ann otoer mecoanism facilitates tois
diiersifcation as it means toat a comeann is not deeendent on a sole market for its
suriiial.
Intaernatinnatisatinn as a sequentiat prncess
- Newln created airlines usualln beegin ben ofering toeir transeort seriice on
international routes torougo code soaring or slot leasing woere it beelieies toat toere
is considerabele eotential demand. Toe consolidation of toese eioneer routes man
lead comeanies to extend toeir oeerations to new erojects and routes in order to
reae greater returns. Toen man acquire foreign carriers or estabeliso a oube on foreign
soil
- It is common to see airlines using toe diferent internationalisation strategies
simultaneousln giiing rise to a combeination of entrn modes
- As toe comeetitiieness of toe market intensifes airlines oet for international
exeansion strategies toat require greater commitments. Toe libeeralieation of toe
Euroeean airline industrn stimulated toe formation of alliances and toe entrance of
LCC s exeanding wito FDI strategies
Lncatisatinn tahenry
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