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Ijird, JUL18024

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www.ijird.

com July, 2018 Vol 7 Issue 7

ISSN 2278 – 0211 (Online)

The Impact of Training and Development on


Staff Competitive Values (Applied on Airports Sector)
Dr. Rehab Sami Mohamed Abd El maksoud
Lecturer, Department of Doctorate Members, Egyptian Civil Aviation Academy, Egypt

Abstract:
In past few years training has become a source of competitive value for airports. Which lead to achieve competitive
advantages at the marketplace. Training is the nerve that suffices the need of fluent and smooth functioning of work that
helps in enhancing the quality of work life of employees and organizational development too.
Development is a process that leads to qualitative as well as quantitative advancements in the organization, especially at the
managerial level; it is less considered with physical skills and is more concerned with knowledge, values, attitudes and
behavior. Hence, development can be said as a continuous process whereas training has specific areas and objectives.
Development should be the results of training. So, every organization needs to study the role, importance and advantages of
training and its positive impact on development to add value of the organization. Employee training and development
programs are important aspects which are needed to be studied and focused on. That lead to measure training through Keep
performance area (KPA), and then keep performance results to improve Keep performance indicators.
This paper focuses and analyses the literature findings on importance of training and development and its relation with the
competitive value for the employee .To determine the relationship between training and the business results as well as to
analyze the existing relationship between training and keep performance areas; which achieve competitive value.

Keywords: Human resource management, training, development and competitive value, business results

1. Introduction
Present Scenario of business world is characterized by a growing competitiveness, market globalization and
technological advances in organization. The survival of an organization implies the prosecution of sustainable competitive
values. The knowledge and skills of an organization's employees have become increasingly important to its performance,
competitiveness and advancement. At present, the added value in businesses is not provided by machinery. That mean
develop airport employee to be human capital through measure the training from keep performance areas.
Training makes workers more skilled and knowledgeable, which makes them more productive, better able to meet quality
standards, and more able to provide excellence service to customers. Training makes organizations more valuable and
profitable. Few organizations apply a systems approach to human resource activities, even though there is evidence that such
an approach is effective.
Many airports have human resource training programs that encourage action in one direction and a compensation
system that encourages action in another. They often have career planning or succession planning programs that don’t fit with
performance management or training programs. It is also common for organizations to use one set of criteria for reviewing
performance in a job and a different set for selecting employees into the job.
Employee Development Programs are designed to meet specific objectives, which contribute to both employee and
organizational effectiveness. There are several steps in the process of management development. These includes reviewing
organizational objectives, evaluating the organization’s current management resources, determining individual needs,
designing and implementing development programs and evaluating the effectiveness of these programs and measuring the
impact of training on participants quality of work life. In simple way, it can be denoted as per the following formula. Employee
Development = Employee Education + Employee Skills + Training Effectiveness + Employee Quality of work life.
Employees are human assets that increase in value of organization and the marketplace when investments of appropriate
policies and programs are applied. The principal objective of training is to make sure the availability of a skilled and willing
workforce to the organization. In addition to that, there are four other objectives: Individual, Organizational, Functional, and
Social: - .

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 Individual Objectives – These objectives are helpful to employees in achieving their personal goals, which in turn,
enhances the individual contribution to the organization for accomplish competitive value .
 Organizational Objectives – Organizational objectives assists the organization with its primary objective by bringing
individual effectiveness .
 Functional Objectives – Functional objectives are maintaining the department’s contribution at a level suitable to the
organization’s needs .
 Social Objectives – Social objectives ensures that the organization is ethically and socially responsible to the needs and
challenges of the society.

2. Literature Review
In a highly competitive aviation industry, managers must find ways to make their services through customers’ needs-
and then set out to meet (or exceed) these needs (Nadiri et al., 2008). airport should understand passengers’ needs and
expectations and then developing high quality service which provide competitive value in comparison with their rivals.
The impact of training and development for repeat business and customer loyalty is not the same for all industries. Loyal
customers are not necessarily satisfied customers, but satisfied customers tend to be loyal customers.
According to the Michel Armstrong, “Training is systematic development of the knowledge, skills and attitudes
required by an individual to perform adequately a given task or job”. (Source: A Handbook of Human Resource Management
Practice, Kogan Page, 8th Ed.,2001). According to the Edwin B Flippo, “Training is the act of increasing knowledge and skills of
an employee for doing a particular job.” (Source: Personnel Management, McGraw Hill; 6th Edition, 1984) The term ‘training’
indicates the process involved in improving the aptitudes, skills and abilities of the employees to perform specific jobs.
Training helps in updating old talents and developing new ones.in airport field, we can measure airports areas for training and
development.
‘Successful candidates placed on the jobs need training to perform their duties effectively’. (Source: Aswathappa, K.
Human resource and Personnel Management, New Delhi: Tata Mcgraw-Hill Publishing CompanyLimited,2000, p.189). The
Training offers several more effective techniques for teaching employees, and achieving competitive value for the organization
including:
Cross-training. This method allows employees to experience other jobs, which not only enhances employee skills but
also gives companies the benefit of having employees who can perform more than one job. Cross-training also gives employees
a better appreciation of what co-workers do and how their own jobs fit in with the work of others to achieve company goals.
To determine the relationship between training and the business results as well as to analyze the existing relationship
between training and the business strategy; this in turn would increase or decrease the impact of training on business results
and profitability. Which lead to achieve competitive value.
Many studies have measured the continuous impact of a set of HR practices on business results and performance exist,
but very few ones determine the individual effect of a single practice, amongst these, we should highlight, (Ichniowski et al.,
2002), (Ordiz 2002), (Goval and Welch 2004), (Kruse et al., 2004).
As regards the second objective, in theoretic development, we can observe the importance of verifying whether those
companies in which training is linked to competitive value makes any impact on greater achievement of business objectives in
marketplace. Training and development should achieve strategic map of the organization as it shown in figure (1).

Figure 1: Airport Development Strategic Map by Dr /Rehab Sami

Airport business opportunity helps to generate ideas through training and development ". From organization goals as it
shown in fig (1) which clarify organization development for long term strategy. Mission can attract investors through current
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situation of the company and how can the training and development with daily basis in the airport to achieve generate profit.
Airport should put the vision related to the mission, because it persuades external customer by footprint achievement in the
marketplace in aviation industry.
Management by objectives should base on annually, and then management by results at the end of each year to measure
management by objectives and inform the internal customer by their achievement to plan for training and development
strategy. Airport should announce the external customer by the improvement which had achieved through inform them about
management by results but as improvement.
New retention strategies must be adopted airport conceptual model for researching business value. It begins by looking
at training at development. (Chamoni&Gluchowski, 2004; Williams, 2004b).

2.1. Concept of Training and Development


Training and development practices have helped them grow the business and improve customer service by providing
employees with the knowledge and skills. They need to be successful. (Matei, 2010). The training design process sometimes is
referred to as the ADDIE model because it includes analysis, design, development, implementation, and evaluation. Step 1,
conducting needs assessment, and Step 2, ensuring employees 'readiness for training, are related to analysis.
The next three steps—creating a learning environment, ensuring transfer of training, and developing an evaluation plan—are
design issues. Step 6, selecting and using a training method, relates to implementation. Step 7, monitoring and evaluating the
program, relates to evaluation.
Training design is effective only if it helps employees reach instructional or training goals and objectives. That should
measurable learning objectives should be identified before the training program begins. Organization should evaluation plays
an important part in planning and choosing a training method, monitoring the training program, and suggesting changes to the
training design process.
The value of continuous learning translates into personal and professional growth opportunities including a commitment to
self-development, training, management training, and performance management. Employees are encouraged to create their
own development plan and use available learning solutions and methods.

2.1.1. Training
Training is concerned with imparting specific skills for a particular purpose. Training is the sequence of learning a
sequence of programmed behavior. Training is the act of increasing the skills of an employee for doing a particular job.
“Training is the process that provides employees with the knowledge and the skills required to operate within the systems and
standards set by management.” (Sommerville 2007)

2.1.2. Development
Development an activity designed to improve the performance of existing managers and to provide for a planned
growth of managers to meet future organizational requirements is management development.
Training Needs Analysis (TNA) is the key to reshaping the future of Continuing Professional Development (CPD) Programmed
in the all industries and educational institutes. It is the major component of training programmers. It is a crucial component of
learning for ascertaining both the needs of the learners and the organization and as such it provides a fundamental link with
relevant and effective teaching and learning process.
It determines and identifies the existence of a gap between what is required of a person to perform their duties competently
and what they actually know as a basis for initiating corrective measures and or remedial education. Training Needs Analysis
can be an overwhelming process. It is a method that will bridge the gap between the required performance and the actual
performance. It is also a method of determining whether a training need exists, and if it does, what training is required to fill
the gap.
The essence of TNA is to find out the general areas of work/ healthcare where an improvement is needed that would
require CPD. It focuses on identifying needs of the target audience, developing a rationale for a training programme,
identifying needed inputs, determining program content and setting program goals. Rightly organizations are facing great
pressure to change these days - to facilitate and encourage whole-person development and fulfillment - beyond traditional
training.
Conventional 'training' is required to cover essential work-related skills, techniques and knowledge, and much of this
section deals with taking a positive progressive approach to this sort of traditional 'training'. The Context for Training and
Development based on the company’s business strategy and goals: -
The four perspectives and examples of metrics used to measure them include:
 Customer (time, quality, performance, service, and cost).
 Internal (processes that influence customer satisfaction).
 Innovation and learning (operating efficiency, employee satisfaction, continuous improvement)

2.2. Concept of Competitive Value


Competitive value is about creating and reinforcing the management systems. That achieves through keep performance
area to affect keep performance results for improving keep performance indicators. Airport manager should compare our
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performance through industry-wide metrics with other airports. Egyptian airports should continue to challenge our initial
projections by examining our results through measure airports performance through competitive value.
The results examined throughout benchmarking will guide our organization in making changes in our strategies as we
march into the future . Airport should understand the commercial value of airlines. Real time data is providing meaningful and
timely information to make informed decisions. Effective airport strategy procedure can't be accomplished without
continuous development .
Profitability is increasing airport outcomes through manage customer benefit. Some customers are more significant
than others. That is helping airports make better decisions about investments in service, facilities, and technology. Airport
should re-look at competitive value dimensions to maximize the potential to increase revenues .
Agendas of key aviation players address the future of the aviation industry (ACI, IATA, and ICAO). International Aviation
Transportation Association (IATA), agenda for the Future focus on infrastructure which reshape airlines and agents (airlines
operator) needs. Airports should compete for business opportunity. It based on efficiency and effective performance .
Airport council international (ACI Policy Handbook, 2003) agenda identify airport Service Quality and airport facilitation to
avoid future shock. Airport Challenges for the future to reduce delays and increase quality of service .
International civil aviation organizations (ICAO), agenda for the future focuses on airport establish the following Strategic
Objectives for the period 2015-2030:
 Efficiency - Enhance the efficiency of aviation operations .
 Continuity - Maintain the continuity of aviation operations .
Training and Development are designed to meet specific objectives, which contribute to both employee and organizational
effectiveness. Which measure through external customers.

3. Research Problem
It is very critical and important to identify the gap faces Egyptian airports to achieve competitive value through training
and development. Egyptian airports still depend on traditional instruments to measure the benchmark. That leads to increase
the service cost inside the airports and decrease the valuable services to the customers.
Egyptian Airports has traditional instrument depending upon the degree of crowding at each facility (Graham, 2001).
Training and development plays a vital role in the achievement of customer expectation through accomplish high
performance which lead to competitive value. Training plays a role to have an increase in worker productivity with continuous
development (Fernandez, Sanzo and Trespalacios 1999. Investment in training activities is a manner in which to increase the
inimitability of human resources (HR)which is essential in maintaining the competitive advantage (Fahy 2000).
Manager lead to increase service cost to cover profit without caring of Customer expectation. Egyptian airports cannot
achieve highly evaluation of passenger expectation level on airport service. That because training and development should
measure through organization performance and add-value. Egyptian airports cannot meet their performance expectations.
One of the most obvious reasons is the inability of Egyptian airports to define and create customer. The main objectives for
training and development are achieving efficiency and effective for service.

4. Research Questions
From previous mentioned problems statement, the researcher finds gap in training and development to achieve the
airport service value.
The attempt of this study was to answer the following questions:
 Q1: What is the relation between Training (knowledge quality, Cross-training, smart decision) for achieving
competitive value at Egyptian airports?
 Q2: What is the relation between Developments (airports business opportunity, business value) for implementing
peer benchmark?
 Q3: How can training and development influence the organization success?

5. Research Significance
This study attempts to gain better understanding of how can implement training and development at Egyptian airports
through new dimensions.
This research focus on how organization can implement training and development through external customer to
achieve high rank between international airports for gaining business opportunity through access the global market and gain
competitive value.

6. Research Objectives
The main purpose of this study is to implement training and development with new dimensions (Knowledge quality,
smart decision, and business opportunity, business value) to access the global market by competitive value.
 Identifying the availability extent of the training and development dimensions in Egyptian airports through external
customer.
 Determining how airport training and development affects the quality of service in Egyptian airports .

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 Suggesting a set recommendation that may help implementing and improving Business value in Egyptian airports
through training and development.

7. Research Hypotheses
The main hypothesis: There is a significant relationship between airport training and development to achieve
competitive value through following hypotheses:

7.1. The First Sub-Hypotheses


H1: There is a significant relationship between training (knowledge quality, smart decision,) and competitive value
(customer awareness, Real Time data, Insight to trends and Profitability).

7.2. The Second Sub –Hypotheses


H2: There is a significant relationship between development (business opportunity, business value) and competitive
value (customer awareness, Real Time data, Insight to trends and Profitability).

8. Research Variables
This research studied the impact of Airport business intelligence on excellence performance work system. The table (1)
below indicates the two major variables of the study with its dimensions and the source of each one.

Independent Variables Dependent Variables


Training and development Competitive value
- Knowledge quality - Customer awareness
- Smart decision TR. - Real time data

- Business opportunity DE. - Insight to trends


- Business value - Profitability
Table 1: Variables Dimensions
Source: (ACRP Synthesis14, 2009. William, 2007)
Source :( (ACRP Synthesis 48-7, 2013)

9. Previous Studies
Choi, Wan Khairuzzaman, and Salmiah [2014] examined the competencies of HR professionals from Malaysian
manufacturing companies in the southernmost state of Malaysia, Johor. The competencies that are examined are business
knowledge, and internal consultation. They found that the top nine ranking HR competency factors are from the domain of
personal credibility and HR delivery.
Smart decisions are generally based on up-to-date financial data, sales and co-operation with customers .Data are the
daily operations in an organization and training present the effect of decision makers in the form of information.
Wright, et al. 1994 has shown that the human resources can be a source of competitive advantage because they meet the
criteria for being a source of sustainable competitive value. Human resources add value to the firm, are rare, cannot be
imitated and are not sustainable.
Also, they have characterized human resources by unique historical conditions, causal ambiguity and social complexity,
which means that not all firms can successfully develop human resources as a sustain competitive advantage through imitating
the HR practices of firms that have successfully developed human resources.
(Winfrey, 1999; Salas and Canon – Bowers, 2001; Van Buren and Erskine, 2002). Based on four levels for categorizing
training criteria and trainee reactions, which each level represents a more precise measure of the effectiveness of the training
program, but at the same time requires a more rigorous and time-consuming analysis.

10. Research Limitation


The research recognizes several limitations of this study.
Limitation place: -The research population is only in SSH Airport. It focuses on agents and airlines inside terminal building on
operation area.Limitation time: - this study focuses on duration period 2016/2017.

11. Methodology

11.1. Data Collection


A survey research method is used to collect data from SSH international airport. Questions about airport services,
features and overall airport experience to explore specific aspects of employee training and development to measure it
through airport services at SSH airport. Questionnaire Design :

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 To measure the impact of Airport training and development on competitive value. The researcher will use (ACRP
synthesis 14, 2009 and Airport Council International (ACI), Airport Survey Questionnaire, Customer Service
Benchmarking, 2012) .
 The questionnaire included 19 questions, related to airport business intelligent and excellence performance work
system from ACI –ACQ survey. The study subjects full –time airlines, agents at SSH airports .
 Five –Points Likert Scale ranging from 1 Poor to 5 Excellence is used to give degree for each statement in the two
variables .
 The researcher shall use the statistical package namely SPSS to test hypotheses.

11.2. Instrument HR Competencies through Services at Airport.


Scale has 33 items: its items are adapted from Airport Council international. four dimensions were adapted reflecting
knowledge of business, HR functional expertise through smart decision, and managing change by increasing business
opportunity at airport, and finally business value. Items were rated on a 5-point scale: (5) excellence, (4) very good, (3) good,
(2) neutral, (1) poor. The present study measured the effectiveness of the training and development through how well the
keep performance area at airport (KPA) is performing in terms of the HR contributions. The items are adapted from
KonstantinosG.Zografos,2006 HR contributions was assessed by asking the respondents to rate their agreement with 19
statements regarding HR’s contribution using 1=not at all to 5=to a great extent. The 19 Core Airport Performance Indicators
listed through questionnaire. These measure the performance within functional areas at airport to measure employee
development.

12. Results
This study rejects the null hypotheses and accept the alternative hypotheses. there is positive effect of training and
development on competitive value at the significant level ( 0.05).
 There is a significant relationship between training and competitive value
 There is a positive significant Impact from development to competitive.

12.1. The Proposed Structure


As it shown in figure (2), training and development lead to increase Knowledge quality which influences airport
manager smart decision to accomplish high business opportunity for achieving business value that increase competitive value
at airport.
This study finds that there are relationships between training and development with new dimension that means
measure the airport area during the service time on operating area through agents (airline operator) and airlines to know the
deficit of employee development that support Egyptian airports to increase their ranking around the world through
competitive value.

Figure 2: The Relationships between Independent and Dependent Variables

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Estimate S.E. C.R. P


Business opportunity <--- Knowledge quality 0.243 0.082 2.715 0.007
Business value <--- Knowledge quality 0.386 0.067 4.499 ***
Business opportunity <--- Smart decision 0.417 0.104 4.657 ***
Business value <--- Smart decision 0.344 0.085 4.012 ***
Competitive value <--- Business opportunity 0.212 0.056 3.035 0.002
Competitive value <--- Business value 0.489 0.069 6.713 ***
Table 2: Relationships between Independent and Dependent Variables

 There is a positive significant Impact from Knowledge quality to Business opportunity at confidence level (.99) with
coefficient equal (.243).
 There is a positive significant Impact from Knowledge quality to Business value at confidence level (.99) with
coefficient equal (.386).
 There is a positive significant total Impact from Smart decision to Business opportunity at confidence level (.99) with
coefficient equal (.417).
 There is a positive significant total Impact from Smart decision to Business value at confidence level (.99) with
coefficient equal (.344).
 There is a positive significant direct Impact from Business opportunity to Competitive value at confidence level (.99)
with coefficient equal (.212).
 There is a positive significant direct Impact from Business value to Competitive value at confidence level (.99) with
coefficient equal (.489).
 There is a positive significant indirect Impact from Smart decision to Competitive value at confidence level (.99) with
coefficient equal (.256).
 There is a positive significant indirect Impact from Knowledge quality to Competitive value at confidence level (.99)
with coefficient equal (.240).
It is clear from the results of table (3), regarding (training and development), that there are no statistically significance
differences between the responses of the Agent and Airline.
Also, it is shown that there are no statistically significance differences between the responses of the Agent and Airline
regarding (competitive value) where the significance of test has a value (.283) more than (0.05).

Std.
N Mean T test sig
commercial activity Deviation
Training and Agent 48 3.0365 .66287
.525 .601
development Airline 52 2.9704 .59554
Competitive Agent 48 3.0365 .69857
1.081 .283
value Airline 52 2.8894 .66197
Table 3: Results of Independent and Dependent

It appears that the value of training and development in the airport is affecting positively competitive value. Airport
should create synergies between training and development to realize the potential of their services in enhancing
organizational self –finance.
Taken together these findings suggest two important implications that not only enhance and refine our
conceptualization of the knowledge- quality linkage, but also offer useful and specific guideline for airport management
practice

12.1.1. Developing Meaningful Performance Measures


Selected performance measures should be reliable and report not only on end outcomes, but also on intermediate
outcomes. Process measures, such as efficiency, cycle time, and other output and activity data provide the back bone of any
successful performance-measurement for achieving training and development depend on end outcome. In addition, measures
should support by internal and external stakeholders.

12.1.2. Performance Integration


Integration should achieve internally and externally integration. Internal integration relates to support services—
human resources, training, development. External integration refers to the performance contributions of multiple
organizations in a joint measurement area to track and compare.

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12.1.3. Effectively Driving Decision-Making


Performance measures should provide sufficient information to adopt budgets and make investment decisions for
making training and development according to the performance of employee per area and the opinion of external customer in
these areas.

13. Conclusion
This study provides a roadmap for more focused studies to examine specific aspects of these interrelationships, such
approaches could focus more closely on the effects of ABI on achieving excellence performance work system.
Productivity and efficiency performance can investigate the relationships between training and development
measurement for the airport. Competitive value should consist a clear strategy at Egyptian airports. Identify Key Performance
Areas (KPAs) at airport to measure the employee’s development from the keep performance results (KPRs) for the services
per area; Define performance objectives taking into account the interests of aircraft operators, end-users and other interested
parties; Select performance indicators (and supporting metrics) for update training plan according to customer and consumer
remarks;
Periodically, assess actual performance results by using benchmarking, as appropriate; for measuring employee
engagement. Performance orientation refers to learners who focus on task performance and how they compare to others.
Persons with a performance orientation define success as high performance relative to others, value high ability more than
learning, and find that errors and mistakes cause anxiety and want to avoid them.
Publish performance reports on the results for identifying training and development, During the development process,
staff will meet with their supervisor and or manager to discuss their strengths and weaknesses, and how to improve work
performances to help expand and broaden their current career path through measure airport performance area.

14. References
i. Advanced Performance Institute, Buckinghamshire, United Kingdom [Online]. Available: http://www.ap-
institute.com/Key%20Performance%20Indicators.html.
ii. ACRP Report 20: Strategic Planning in the Airport Industry. Transportation Research Board of the National
Academies, Washington, DC, 2009.
iii. ACRP SYNTHESIS 14 Airport System Planning Practices, a Synthesis of Airport Practice, WASHINGTON, D.C.2009.
iv. Doc 9562, Airport Economics Manual Order Number: 9562 ISBN 978-92-9249-192-5 © ICAO 2013
v. (Wu, 2009). Gittens ICAO’s policies on charges in Doc 9082 ,2013
vi. Humphreys, I. and G. Francis, “Performance Measurement: a review of airports”, International Journal of Transport
Management, 1, 79-85, International Air Transport Association (IATA) (2002), Global Airport Monitor, Geneva,2002
vii. McGonagle, J.J. and Vella, C.M. A case for competitive intelligence. Information Management Journal36(4):2002,35-
40.National Plan of Integrated Airport Systems (NPIAS-2010)
viii. Ricondo& Associates, Booz Allen Hamilton, Inc., George Mason University, and National Service Research.(2008)
ix. Paananen, Juha-Pekka 2014a.Mikkeli City airport. Cooperation proposition for City of Mikkeli, presentation on 18
February 2014.(Dallas Dawson, Tampa International Airport 2009)

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