• Title/Summary/Keyword: Air transport industry

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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) (세계 LCC 비즈니스 모델의 전략적 변화 연구 및 국내 LCC 산업 관련 시사점 도출(세계 주요 LCC 사례를 중심으로))

  • Kim, Sang Do;Kim, Kee Woong;Choi, Kun Hee
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.21 no.3
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    • pp.55-64
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    • 2013
  • 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.

Present Status of Domestic Air Transport Industry and Policy Proposal for National Carrier's Sustainable Development (국내 항공운송산업의 현황 및 지속발전을 위한 정책제언)

  • Choi, Doo-Hwan;Hwang, Ho-Won
    • The Korean Journal of Air & Space Law and Policy
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    • v.33 no.2
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    • pp.3-34
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    • 2018
  • Korea's air transport industry has a 70-year history since Korea National Airline was establishment in October 1948. Korea has 9 airlines which have international air transport business licenses, and as of 2017, air transport performance(Domestic & International) is ranked 8th in the world. Through analysis of Korea's air transport industry, this paper examines the essential problems of the domestic air transport industry and what policies and laws should be supplemented, and presents an "Policy Directions for the Air Transport Industry" that can continue to grow into a global aviation leading country in the future. Analysis of aviation statistics shows that the nation's air transport industry has a very high growth rate, and national airlines continue to invest in sustainable growth. Furthermore, new companies are also trying to enter the market. As of November 2018, four companies applied for licenses for international air transport business, one for international air transport business (cargo) license, and the Ministry of Land, Infrastructure and Transport is expected to decide whether to issue the license by first quarter of 2019. While some expect price reductions and consumer benefits through competition promotion, others worry about worsening airline financial structures and reducing safety investment due to competition. To sum up the problems of the nation's air transport industry, first, low-cost airlines focus only on attracting domestic demand, and thus have a weak foundation for continued growth. Second, the rapid growth in recent years has led to the lack of aviation professionals such as pilots and technicians and the saturation of slots at major airports. Third, since the financial soundness of airlines is not systematically managed, the financial situation of airlines can quickly deteriorate and the damage can be attributed to consumers. In order for the national airlines to continue to develop, the first is to focus on the endless demand of the global aviation market and to secure international competitiveness. Second, the government should support the airline infrastructure according to the size of the air transport industry, third, we will systematically nurture aviation experts who will lead the future of the nation's air transport industry, and finally, the government will have to continuously manage the financial status of airlines to prevent consumer damage in advance. Nowadays the air transport industry has become very competitive. Not only do airlines have to work hard for the sustainable development of national airlines, but all government agencies must support our airline companies in policy to win international competition.

A Study on Impact of the Asset Structure Based on IT in Air Tourism and leisure Industry to the Managerial Outcomes (항공관광 여가산업 IT 구현을 위한 업종별 자산구조가 경영성과에 미치는 영향에 대한 연구)

  • Baik, Namjin;Baik, Namkyu;Cha, Jae-Sang
    • Journal of Satellite, Information and Communications
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    • v.12 no.4
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    • pp.125-130
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    • 2017
  • In recent, a rapid growth of the air tourism and leisure industry and the massive amount of investing plan by the national government, the local authorities have drawn new investment of new market entrance companies and increasing investment of current companies which have been diversified their business area. Whereas, few research literature on the asset structure formation which is the base of investment activity has been studied. In this study, we suggest the results of the impact of the asset structure to the managerial outcomes by the analysis of the asset structure of air transport industry, the sea transport industry, and the ground passenger transport industry that have been representing of the air tourism and leisure industry. As results of this study, we suggest the reference point of future invest direction and the way of improving effectiveness of air tourism and leisure industry.

A Study of Legal Restrictions on International Air Cargo Services (국제항공화물운송의 법적 규제에 대한 고찰)

  • LEE, Jae-Woon
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.69
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    • pp.371-388
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    • 2016
  • International air transport for cargo services is a facilitator for various trade sectors and, by itself, an important service industry. Although international air cargo industry is expected to grow continuously, industry stakeholders complain about legal constraints in the industry and demand more liberalized regime. From its birth at the beginning of the 20th century, the airline industry was tightly regulated by governments with a strong tradition of protectionism. In the past few decades, however, protectionism in the airline industry has steadily declined. Indeed, the airline industry is largely in the process of liberalization. Interestingly, it has been easier to liberalize air cargo service than passenger service. Indeed, states have traditionally shown far more willingness to provide market access for foreign carriers carrying cargo than passengers. Given the impact of air cargo service in a state's wider economy and own characteristics of cargo services (i.e. air cargo traffic is inherently one-way, unlike passenger traffic, which tends to involve round trips), more liberalized approach is necessary for air cargo services. Among three approaches: bilateral, regional (block-based) and multilateral, it is desirable to adopt a multilateral treaty (a new multilateral all-cargo agreement) so as to harmonize and simplify complicated trade regulations on air cargo services.

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Strategic Alliances and Productivity in Air Transport Industry (항공운송산업의 전략적 제휴와 생산성에 대한 연구)

  • Yeo, Kyu-Hun;Lee, Young-Soo
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.15 no.4
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    • pp.131-141
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    • 2007
  • This paper identifies the productivity in the Global Air Transport Industry for the period of 1995-2001 by testing the Total Factor Productivity with tonqvist method. Based on panel data from 20 major international airline corporations which formed global strategic alliances, we find alliances make a considerably significant contribution to productivity increases. We also find that total factor productivity rate changed surprisingly in Air Transport Industry between pre- and post-Asian financial crisis period.

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A Study on the Status and Implications of Domestic Land Transport Business (국내 육상운송업의 현황과 시사점에 관한 연구)

  • Byun, Dae-Ho
    • Asia-Pacific Journal of Business
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    • v.10 no.2
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    • pp.117-130
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    • 2019
  • The land transport industry is more important than the air transport or shipping industry. Land transport has the largest number of business and employees, and the fourth industrial revolution technology has recently infiltrated the most rapidly. In this paper, we examine the status, future prospects, and implications of the land transport industry in Korea for the past 7 years based on the statistical database and related literature. We survey the scope and characteristics of the freight truck or rail transport industry, government policies, and recent logistics industry trends. From the results of these current and forecast statistical surveys, we propose a way forward for the domestic transport business.

A study on the multilateralism in aircraft and air liners nationality and its implication with respect to the Article 7 of the Chicago Convention (항공기(航空機) 및 항공사(航空社)의 국적(國籍) 다원화(多元化)와 시카고 조약(條約) 제7조의 해석(解釋) 문제(問題))

  • Shin, Hong-Kyun
    • The Korean Journal of Air & Space Law and Policy
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    • v.7
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    • pp.151-175
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    • 1995
  • In recent years, questions have arisen under several forms with respect to the need for adapting present legal order established under the Chicago Convention and relevant customary rules into newly developed environment surrounding the international air transport industry. Major feature of such trends included in opinions for modification of the present legal order might be defined as more liberalistic approach to this industry. In this respect, many scholars and lawyers in this field agree with a view that a theoretical tie between an aircraft/air liners and a register - State lies in political and strategical concern of the State so that each aircraft/air liners has been attributed a single nationality. In the context of such concern, each aircraft/air liners has been related with each register-State in the form of "genuine connection". However, present and near future development of air transport industry and its world - wide market requires some modification of such single nationality regime. Taking into account such circumstances, States as creator of present legal order are in the process of establishing new legal order where air liners with multi - nationality are capable of satisfying to such needs. As adopting a series of liberalization package for air transport industry in european continent, European Union adopts a concept of "community air carrier", by which an air space of each member State is open to each other, especially through the grant of cabotage right. A serious concern may arise in such grant because the Article 7 of the Chicago Convention prohibits such grant on an exclusive basis. While many theoretical opinions have been put forward concerning the interpretation of that article, a case of European Union shall be a good test of the range of its application. It is anticipated that future development around this issue shaH furnish us a major feature of the liberalization of international air transportation and an adaptation process of present legal order.

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The cooperation of civil aviation and legal and political issues related to direct route operation between South and North Korea (남북간 민간항공협력과 직항로 개설 운영상의 법적 정책적 과제)

  • Kim, Maeng-Sern;Hong, Soon-KiI
    • The Korean Journal of Air & Space Law and Policy
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    • v.17
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    • pp.111-132
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    • 2003
  • The air transport industry is the most important as means of human exchange between the countries. Because the spread effect and the durability by aviation cooperation between the countries are much higher than any other industry, a research about air transport industry is very important to allied industry field as well as national policy about International cooperation and integration. Specially, according to the economic interchange with North Korea becomes active, the role of air transport as related traffic network with North Korea becomes more important. The number of flights is increasing sharply after South-North summit meeting, and two sides established and are using temporary direct route between South-North Korea. When we consider that the number of flights utilizing temporary direct route is increasing every year, It is not desirable to use temporary routes continuously because the current agreement between South and North cant be reliable far the case of unexpected circumstance. In addition, the current agreement is not based on the international standards. The paper is to study the condition to promote the coordination of civil aviation in the whole Korean peninsula. As known, the aviation system in North Korea is mainly operated by military unit. The study will review the current status of air transport system of South and North and the effective way of cooperation of civil aviation between both sides. The cooperation between governments as well as between airlines is studied. The establishment of Air Traffic Service Agreement is going to be handled heavily because the stable air traffic service is the most required base for the operation of air transport. The authors also try to find a way to support the development of infrastructure of aviation industry in North Korea.

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Pressure Drop Characteristics of Air Particle Flow in Powder Transport Piping System (파우더 수송시스템의 공기입자 유동 압력강하 특성)

  • Kim, Jong-Soon;Chung, Sung-Won;Kwon, Soon-Gu;Park, Jong-Min;Choi, Won-Sik;Kwon, Soon-Hong
    • Journal of the Korean Society of Industry Convergence
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    • v.20 no.2
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    • pp.157-168
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    • 2017
  • The pressure drop characteristics of air particle flow in a powder transport piping system were analyzed in this study. The pressure drop characteristics of air particle flow in the piping system have not well understood due to the complexibility of particle motion mechanism. Particles or powders suspended in the air flow cause the increase of the pressure drop and affect directly transport efficiency. In this study, the pressure drop in a powder transport piping system was analyzed with interactions of air flow and particle motion in straight and curved pipes. The total pressure drop increased with pipe length, mixture ratio, and friction factor of particles because of increased friction loss of air and particles in the piping system. For the coal powders of $74{\mu}msize$ and powder-to-air mass mixture ratio of 0.667, the total pressure drop under the consideration of powders and air flow was calculated as much as 30% higher than that air flow only.

Multilateral Approach to forming Air Logistics Hub on North East Asia Region (동북아 항공물류허브을 구축하기 위한 다자적 접근방안)

  • Hong, Seock-Jin
    • The Korean Journal of Air & Space Law and Policy
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    • v.19 no.2
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    • pp.97-136
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    • 2004
  • The Northeast Asian air cargo market has expanded tremendously as a result of the opening up of the Chinese market. The importance of the Asia-Pacific region in the global air transport has also increased. The exchange of human and material resources, services, and information in Northeast Asia, which is expected to increase in the near future, requires that the airlines operating within this region adopt a more liberalized approach. This paper introduced alternatives which can be applied to the Northeast Asian airlines industry so as to bring about the integration of regional air transport: First, this paper found a need for individual Northeast Asian nations to alter their policies towards the airlines industry. Second, each country should further liberalize their respective domestic air transport. Third, there is a need for freer air service agreements to be signed between the nations of Northeast Asia. Fourth, the strategic alliances between the airlines operating in Northeast Asia should be further strengthened. Fifth, this liberalization process should be carried out in an incremental manner, beginning with more competitive airports and routes, or with less-in-demand routes. Sixth, there is a need for a shuttle system to be put into place between the main airports in China, Korea, and Japan. Seventh, these three nations jointly develop aviation safety and security systems that are in accordance with international standards. Eighth, the liberalization process of the aviation industry should be undertaken in conjunction with other related fields. Ninth, organizations linking together civil aviation organization in the Asia-Pacific area should be formed, as should each government linking together. By doing so, these countries will be able to establish regular venues through which to exchange opinions on the integration and liberalization of the air cargo market so as to induce the gradual liberalization of the actual market. The liberalization of the air transport in Northeast Asia will prove to be a daunting task in the short term. However, if the Chinese airlines continue to exhibit continuous growth and Japanese airlines are able to complete their move towards a low-cost structure, this process could be completed earlier than expected. Over the last twenty five years the air transport has undergone tremendous changes. The most important factor behind these changes has been the increased liberalization of the market. As a result, rates have decreased while demand has increased. This has resulted in turning the air transport industry, which was long perceived as an industry in decline, into a high-growth industry. The only method of increasing regional exchanges in the air transport is to pursue further liberalization. The country which implements this liberalization process at the earliest date may very well emerge as a leading force within the air transport industry.

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