• Asian Journal of Business Environment
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• v.6 no.3
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• pp.5-10
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• 2016

Purpose - The purpose of this study is to explore and examine the effects of airline deregulation in the United States and South Korea as a comparative analysis. The study focuses on identifying the purposes of airline deregulation and analyzing its benefits and consequences. Research Design, Data, and Methodology - This is a case study, a comparative method, which analyzes and measures the benefits and disadvantages of airline deregulation in both the United States and South Korea. Results - Airline deregulation removed unnecessary and ineffective government controls, resulting in more efficient airline industries in both countries. However, the negative consequences are much greater than the benefits of airline deregulation. Conclusion - The purpose of airline deregulation was to foster an efficient and effective environment in airline industry, and clear evidence of the positive intended effects of airline deregulation e.g., increasing domestic competition, decreasing airfare, increasing productivity, and removing unnecessary government regulations in the beginning of airline deregulation. However, the current state of airline industry in both countries depicts only the consequences of airline deregulation.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2003.11a
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• pp.239-242
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• 2003

The supply chain of the airline industry includes multiple airline companies, travel agencies and customers. Various air fares are offered by travel agencies. The travel agencies grant deposit to the airline company in advance and preoccupy seats with deep discount, which called group-discount-ticket. The group-discount-ticket offers the lowest air fare but it does not base on real demand. So the information flow generated by group-discount-ticket can cause the information distortion in airline supply chain. This study analyzes the bullwhip effect in the airline industry. A mathematical model is formulated and managerial suggestions is provided.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.865-874
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• 2020

In Vietnam, the airline service sector plays an important economic role. However, it is a complicated industry that is open to failures. Negative emotions are an essential variable for the airline service industry because they can trigger a variety of coping behaviors that affect consumer loyalty as well as the image and reputation of the airline service providers. However, negative emotions and the accompanying coping behaviors are often investigated partially or as separate issues, thus leading to an incomplete understanding. This study is conducted to fill this gap by proposing and testing the causal relationship between negative emotions (anger, frustration, regret) and coping behaviors (complaint, negative word-of-mouth (WOM), and switching intention) in the context of the airline industry. Eight research hypotheses are tested. Using the partial least squares structural equation modeling (PLS-SEM) on a sample of 587 passengers in Vietnam, the empirical results show that anger and frustration influence complaints, negative WOM, and switching intention, while regret leads to switching intention and negative WOM. Thus, the research has important academic and practical implications. The empirical outcome could be of major importance for airline companies in planning to provide new services and achieve high performance in the long run.

• Asia-Pacific Journal of Business
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• v.1 no.2
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• pp.23-46
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• 2010

Despite the explosive growth of no-frill airline industry, very little is known about how consumers make purchase decision in such settings. Today's airline industry requires choice models consistent with consumers' true preference sets. This study used conjoint analysis to identify these ideal choice models. 38 percent of the subjects were found to use compensatory and 62 percent non-compensatory models. Our findings suggest a need to base choice-making promotions on ideal choice models if the promotion is to lead consumers to decisions consistent with true preferences.

• Journal of the Korea Society of Computer and Information
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• v.21 no.3
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• pp.113-121
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• 2016

In this study, the basic concept of service profit chain was introduced based on the existing studies related to service quality of airline ground crew to find out how are customer satisfaction influenced by factors related to employees who provide service quality to the customers, such as internal service quality and job satisfaction. The data of this study was collected by questionnaire and based on airline ground crews and Gimpo international airport users. A total of 190 of airline ground crew and 273 of passengers validity sample was analyzed a frequency analysis, reliability analysis, exploratory factor analysis and correlation coefficient analysis from SPSS 21, a hypothesis through out confirmatory factor analysis and structural equation modeling from AMOS 7.0. As a result of the analyses, it was found that the models was appropriate in proving the hypotheses on interrelationships among internal service quality, job satisfaction and customer satisfaction. Overall, finding of this study enhance the theoretical progress on the experiential concept in walking tour and offer important implication for airline industry marketers.

• Korean Management Science Review
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• v.29 no.3
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• pp.183-192
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• 2012

For the past several decades, personnel scheduling and rostering problem has been one of the most popular research topics in optimization area. Among the numerous applications, airline (aviation) industry has been given most attention due to the economic scale and impact. Most of the literatures about the staff scheduling problem in airline industry are dealing with the air crew, pilots and flight attendances, and the rest of the literatures are about the ground staff, by whom cleaning, maintenance, fueling of aircraft and handling luggage are done from landing to taking off. None of the literatures found by the authors are dealing with the airline ground crew. In this paper roster of airline ground crew, who is responsible for issuing boarding pass, checking baggage, etc, is introduced, formulated and solved using CPLEX. Some expressions of the mathematical formulations, which are not suitable input format of the CPLEX, were transformed. Numerical examples are presented for the validation of proposed scheduling system.

• The Journal of the Korea Contents Association
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• v.7 no.9
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• pp.194-203
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• 2007

This paper investigates how airline service quality determines airline image and passengers' future behavioural intentions. To investigate the effect of airline service quality, Structural Equation Modeling using a maximum likelihood estimator, was applied to data collected from Korean international air passengers who have used Korean Airlines, Asiana Airlines, and other foreign airline. It was found that there were significant relationships between the variables. The dimension of in-flight service and the dimension of customer and flight related service were each found to have a positive effect on airline image. In addition, airline image had a significant positive influence on Korean international air passengers' future behavioural intentions.

• Journal of Korea Society of Industrial Information Systems
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• v.19 no.2
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• pp.137-145
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• 2014

The paper is to investigates how influence service quality satisfaction, trust and repurchase intention using SERVPERF instrument in airline industry. This study will contributes to provide development strategies how to expense market and strength relation between customer to FSC and LCC by an empirical study. This study uses computer software of SPSS 20.0 and AMOS 20.0 for study analysis. The LCC should strengthen the price competitiveness, as well as it needs to establish a strategic management distinguishing service quality from other airline. The airline will has improved service quality of reliability and tangibles since improve service of reliability and tangibles. This study will provide strategic insights and information on service quality in airline industry.

• Journal of Smart Tourism
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• v.1 no.1
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• pp.53-64
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• 2021

Upselling is often a critical factor in revenue generation for businesses in the tourism and travel industry. Utilizing passenger data from a major international airline company, we develop the PAX (Passenger, Airline, eXternal) model to predict passengers that are most likely to accept an upgrade offer from economy to premium. Formulating the problem as an extremely unbalanced, cost-sensitive, supervised binary classification, we predict if a customer will take an upgrade offer. We use a feature vector created from the historical data of 3 million passenger records from 2017 to 2019, in which passengers received approximately 635,000 upgrade offers worth more than $422,000,000 U.S. dollars. The model has an F1-score of 0.75, outperforming the airline's current rule-based approach. Findings have several practical applications, including identifying promising customers for upselling and minimizing the number of indiscriminate emails sent to customers. Accurately identifying the few customers who will react positively to upgrade offers is of paramount importance given the airline 'industry's razor-thin margins. Research results have significant real-world impacts because there is the potential to improve targeted upselling to customers in the airline and related industries.

• KDI Journal of Economic Policy
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• v.37 no.1
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• pp.1-18
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• 2015

A reduction in search costs is generally believed to make markets more competitive. However, the effect may be mitigated or amplified if consumers must pay costs for switching products. This paper investigates how search costs affect prices in the presence of switching costs using U.S. domestic airfare data for 2000-2010. The airline industry experienced a dramatic decrease in search costs with increasing Internet use in the 2000s. At the same time, the industry is known for its frequent flyer programs (FFPs), which increase switching costs for consumers. We use the average network size of airlines in a market as a proxy for switching costs related to FFPs and Internet usage as a proxy for (the inverse of) search costs. The results show that increasing Internet usage lowers airfares but that the effect is smaller for markets with a larger average network size.