This paper evaluates the triangular business relationship among regional authorities, airports and airlines by analyzing the business relationship between the state of Saxony, Leipzig/Halle airport and DHL.
The case study under investigation is the relocation process of the European hub of DHL to Leipzig/Halle airport known as ‘project Pegasus’. The paper contributes to the existing literature by offering a model of interdependencies of a triangular business relationship and by arguing that constructing interdependencies is crucial for successful and positive business relationships among regional authorities, airports and airlines. The interdependency of each party on its counterparts creates commitment, builds trust and constitutes strong governance mechanism for executing joint investment initiatives.
During negotiations, the three parties should incorporate each party’s individual strategy into the triangular group’s overall strategy, thus achieving a positive end result for future collaborations.
Table of Contents
1. Introduction
2. Literature Review
2.1. Regional authorities – airports interaction
2.2. Ownership and governance
2.3. Regulatory and financial support
2.4. Regional authorities – Airlines interaction
2.4.1. Regulation
2.4.2. Aid to airlines
2.5. Airports – Airlines interaction
2.6. Airlines-Airports empirical analysis
3. Case Study – The Relocation of the DHL Hub to Leipzig/Halle
3.1. The parties of the triangular
3.1.1 The state of Saxony
3.1.2 Leipzig/Halle airport
3.1.3 DHL
3.2. The relocation process
3.2.1. Background
3.2.2. The components of the relocation agreement
3.2.3. Success Factor
4. Discussion
4.1. Evaluation of the triangular business relationships
4.1.1. Benefits and criticism
4.1.2. The Interdependencies of the triangular relationship
4.2. Triangular negotiations
4.2.1. Positive triangular negotiations
4.2.2. Roadmap for future triangular negotiations
5. Conclusion
Objectives and Topics
This paper examines the complex business relationships between regional authorities, airports, and airlines by analyzing the relocation of DHL's European hub to Leipzig/Halle Airport. The primary research goal is to understand the constituents of these triangular relationships, how negotiation processes can be optimized, and what strategic outcomes foster mutual benefit for all stakeholders involved.
- The triangular interdependency model of regional authorities, airports, and airlines.
- Case study analysis of the 'Project Pegasus' relocation process.
- Evaluation of regulatory and financial support impacts on business cooperation.
- Development of a roadmap for positive triangular negotiations.
- Application of conceptual frameworks to enhance relationship performance and trust.
Excerpt from the Book
3.1.3 DHL
The History of DHL begins in 1969 when it was established by three partners named Adrian Dalsey, Larry Hillblom and Robert Lynn. Their business model of international door-to-door express delivery service was seen innovative and enabled the company to grow fast worldwide and lead the express delivery of documents. It had introduced a new service of parcel deliveries in the late 1970s using air, sea, road and train transportation. In 2002 Deutsche Post AG has become a majority shareholder in DHL owning 51% of the company leading to the foundation of the Deutsche Post DHL group (Wap.dhl.com 2014). Deutsch Post DHL is the world’s leading mail and logistic group, providing special portfolio of Logistics and communication worldwide with an annual turnover of 2.86 Billion Euros in 2013 (Anon 2014b).
DHL Express is the group’s division for transporting urgent documents and goods in the form of door-to-door services in more than 220 countries and territories. DHL Express is one of the world’s largest air carriers in the world operating more than 250 all-cargo airplanes (Dhl.com 2014). The core competence of DHL Express lies in the special characteristics of the express industry of simplifying and speeding the process of transporting goods, which meets the requirements of business customers. As depicted in figure 6, documents and goods are collected from the customer at the end of the business day and delivered overnight to the consignee early the following day using all sorts of transportation. Air express services are used where there are no other options to accomplish the same day and next day delivery requirements (Oxford Economics 2009).
Summary of Chapters
1. Introduction: Presents the role of aviation in global economic growth and defines the paper's objective to evaluate triangular business relationships using a specific case study.
2. Literature Review: Reviews existing literature on dual business interactions and introduces the conceptual framework for airline-airport relationships and dependencies.
3. Case Study – The Relocation of the DHL Hub to Leipzig/Halle: Describes the specific parties involved in the relocation project and details the agreement components and success factors observed.
4. Discussion: Evaluates the benefits and criticisms of the triangular relationships and proposes a model of interdependencies and a roadmap for future negotiations.
5. Conclusion: Summarizes the study's findings on cooperative outcome interdependence and suggests directions for future research regarding triangular business dynamics.
Keywords
Triangular business relationship, Regional authorities, Airports, Airlines, DHL, Leipzig/Halle, Interdependency, Commitment, Trust, Negotiation, Governance, Infrastructure, Strategic outcome, Project Pegasus, Air cargo.
Frequently Asked Questions
What is the fundamental focus of this research paper?
The paper evaluates the triangular business relationship between regional authorities, airports, and airlines, utilizing the relocation of the DHL hub to Leipzig/Halle as a primary case study.
What are the central thematic fields covered?
The core themes include aviation infrastructure development, business interdependencies, regulatory roles, financial support mechanisms, and the dynamics of negotiation in large-scale logistics projects.
What is the primary objective or research question?
The goal is to determine what constitutes the business relationship among these three parties, how negotiations can be conducted effectively, and what conditions lead to mutually beneficial end results.
Which scientific methodology is employed?
The paper uses a descriptive research design by reviewing existing academic literature on airline-airport interactions and applying this framework to an empirical case study analysis.
What topics are discussed in the main body?
The main body covers the theoretical framework of relationships, details of the DHL relocation agreements, the interdependencies of the parties involved, and a strategic roadmap for future negotiations.
Which keywords best characterize this work?
Key terms include triangular relationships, interdependency, aviation management, regional development, and cooperative outcome interdependence.
Why was the 'Project Pegasus' case study selected?
It was selected because it perfectly illustrates a triangular business relationship involving a state authority (Saxony), an airport (Leipzig/Halle), and a global carrier (DHL), showcasing complex negotiation and contractual interdependencies.
How does the author define the 'cooperative outcome interdependence'?
It is defined as a scenario where monetary rewards of participants are primitively interdependent, meaning the collective performance of the group maximizes the success for each individual partner.
What conclusion does the author reach regarding the negotiation process?
The author concludes that focusing on four specific dimensions—atmosphere, environmental uncertainty, interaction processes, and strategic outcomes—is essential for achieving positive, sustainable negotiation results.
- Quote paper
- Doron Levy (Author), 2015, The triangular business relationship among Regional Authorities, Airport and Airlines, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/359023
