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http://dx.doi.org/10.12985/ksaa.2013.21.3.055

Study on the strategic changes of the world LCC business models and their implications to Korean LCC industry(A Case Study of the world's major LCCs)  

Kim, Sang Do (국토교통부)
Kim, Kee Woong (한국항공대학교 경영학과)
Choi, Kun Hee (인천국제공항공사 정보기획팀)
Publication Information
Journal of the Korean Society for Aviation and Aeronautics / v.21, no.3, 2013 , pp. 55-64 More about this Journal
Abstract
As the price competition between airlines became increasingly intensified, due to increased participation of low-cost carriers in the air transport industry and the continued deregulation of international air transport, each airline has introduced various management techniques for securing international competitiveness and operational efficiency in order to cope with the uncertainty in air transport industry. The world leading LCCs, such as Ryan air, easyJet and Southwest, have changed their traditional business models by increasing operation to primary airports, diversifying operating routes, making strategic alliances with FSCs or other LCCs, increasing the operations on the mid or long distance routes, expanding ancillary revenues, etc. As Korea's air transport industry is confronting with intense competition, our LCCs are requested to adjust to this new challenging situation. As the world leading LCCs did, Korean LCCs are recommended to adopt new business models such as restructuring of the air transport industry through M&A, operating more flexibly in terms of frequency or route, launching of services to primary airports, making strategic alliances with foreign FSCs, developing of 4th or 6th traffic demands, etc.
Keywords
LCC; Business Model; Air Transport Industry;
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