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http://dx.doi.org/10.12985/ksaa.2014.22.4.015

A Case Study of Oversea's Low Cost Carrier Terminal (LCCT) for Hub Network Competitiveness  

Hwang, Sung-Youn (한국항공대학교 항공경영학과)
Kim, Jong-Hyun (인천국제공항공사 해외사업처)
Park, Sung-Sik (한국교통대학교 항공운항학과)
Kim, Kee-Woong (한국항공대학교 경영학과)
Publication Information
Journal of the Korean Society for Aviation and Aeronautics / v.22, no.4, 2014 , pp. 15-24 More about this Journal
Abstract
Low Cost Carrier(LCC)s in Asia Pacific market are expected to record high growth due to the expansion of Open Sky Policy among Korea, Japan, China and South East Asia. As everybody is aware of, LCC is not only saving flight cost but also creates differentiating business model by reducing unnecessary services such as F&B and in-flight duty free sales services. Booming LCCs in Asian market will cause not only Incheon airport but also other local airports in Korea to compete heavily to attract LCCs. For example, Air Asia Group with more than 200 fleet has expanded its alliance network throughout Asia. Therefore this paper has researched a new business model operating a LCC terminal for the hub airport competitiveness. According to analysis result of case study, it was found out, considering increasing airline demand next decade, Incheon airport and other domestic airports in Korea had better change an existing terminal into a LCC Terminal(LCCT) to differentiate airport services and expand its hub network. That is because of economic feasibility, first of all, of securing hub and spoke networking capabilities with airlines and finally of developing commercial facilities customizing LCC passengers' demand.
Keywords
LCCT (Low Cost Carrier Terminal); Hub Network; Hub Airport Competitiveness; FSC (Full Service Carrier) and Passenger Demand;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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