• The Korean Journal of Air & Space Law and Policy
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• v.25 no.2
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• pp.139-162
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• 2010

In terms of the international air transport, the open skies policy implies freedom in the sky or opening the sky. In the normative respect, the open skies policy is a kind of open-door policy which gives various forms of traffic right to other countries, but on the other hand it is a policy of free competition in the international air transport. Since the Airline Deregulation Act of 1978, the United States has signed an open skies agreement with many countries, starting with the Netherlands, so that competitive large airlines can compete in the international air transport market where there exist a lot of business opportunities. South Korea now has an open skies agreement with more than 20 countries. The frequent flyer program (FFP) is part of a broad-based marketing alliance which has been used as an airfare strategy since the U.S. government's airline deregulation. The membership-based program is an incentive plan that provides mileage points to customers for using airline services and rewards customer loyalty in tangible forms based on their accumulated points. In its early stages, the frequent flyer program was focused on marketing efforts to attract customers, but now in the environment of intense competition among airlines, the program is used as an important strategic marketing tool for enhancing business performance. Therefore, airline companies agree that they need to identify customer needs in order to secure loyal customers more effectively. The outcomes from an airline's frequent flyer program can have a variety of effects on international competition. First, the airline can obtain a more dominant position in the air flight market by expanding its air route networks. Second, the availability of flight products for customers can be improved with an increase in flight frequency. Third, the airline can preferentially expand into new markets and thus gain advantages over its competitors. However, there are few empirical studies on the airline frequent flyer program. Accordingly, this study aims to explore the effects of the program on international competition, after reviewing the types of strategic alliance between airlines. Making strategic airline alliances is a worldwide trend resulting from the open skies policy. South Korea also needs to be making open skies agreements more realistic to promote the growth and competition of domestic airlines. The present study is about the performance of the airline frequent flyer program and international competition under the open skies policy. With a sample of five global alliance groups (Star, Oneworld, Wings, Qualiflyer and Skyteam), the study was attempted as an empirical study of the effects that the resource structures and levels of information technology held by airlines in each group have on the type of alliance, and one-way analysis of variance and regression analysis were used to test hypotheses. The findings of this study suggest that both large airline companies and small/medium-size airlines in an alliance group with global networks and organizations are able to achieve high performance and secure international competitiveness. Airline passengers earn mileage points by using non-flight services through an alliance network with hotels, car-rental services, duty-free shops, travel agents and more and show high interests in and preferences for related service benefits. Therefore, Korean airline companies should develop more aggressive marketing programs based on multilateral alliances with other services including hotels, as well as with other airlines.

• Journal of the Korea Society of Computer and Information
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• v.18 no.10
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• pp.225-234
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• 2013

The purpose of this study is to evaluate the impact of airline's retention equity on customer positive exclusive behavior intention and to minimize customer churn based maintenance is aimed to derive key variables in air transport market. A survey was conducted Incheon and Gimpo airport to use in the national carrier of domestic air travelers. A total of 480 respondents completed a survey. The result reveal that loyalty program, preferential treatment & acknowledgement program, and community program have significantly effect on positive behavior intention. However, preferential treatment & acknowledgement program, and community program have significantly effect on exclusive behavior intention. It showed that they are more influence than loyalty program as a switching barrier of airlines. The academic and practical implication of this study has been identified in the competitive market to maximize customer retention factors of maintaining retention equity to derive empirical strategic priorities.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.15 no.4
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• pp.53-63
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• 2007

This paper examines the safety perception of passengers on low cost carriers which has made several accidents and incidents at the early stage of their business. The concept of low cost carrier is becoming more important to airline industry in Korea. This study achieves the first selecting attribute among airline service factors on domestic flights and try to indicate that how much the passengers trust in the safety of low cost carriers. It is also sets the comparative safety awareness between low cost carriers and two full service national carriers in domestic market. The safety perception of aircraft type can be a major factor for LCC choice in Korea due to frequent accidents and incidents for last two years. More than 60% of LCC passengers have increasingly considered the safety after recent accidents. The low cost airlines' images of the passengers showed that the first image of the LCC was the fare and the second image was safety. This study indicates that most of the LCC travelers will use the international low cost airlines when LCC extend their destination to adjacent countries. For the accomplishment of the low cost carriers' competitiveness in domestic market, they have to try to get rid of bad image for safety and pay extra attention to find out better services other than the safety and develop other strategies to compete against existing full service carriers.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.2
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• pp.101-118
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• 1994

미국의 항공운송산업 규제완화법(Airline Deregulation Act of 1978)에 의한 미국의 항공운송산업 자유화 정책은 미국의 국내 항공운송 시장의 환경을 철저한 경쟁의 원리가 적용되는 자유경쟁 시장으로 변화시켰으며, 국제 항공운송 시장에도 자유경쟁의 원리가 점진적으로 도입되는 계기를 마련하였다. 항공운송산업 자유화 정책은 항공사의 운송 시장 환경뿐만 아니라 그들이 이용하는 공항의 경제 환경에도 많은 변화를 가져왔다. 자유화가 공항의 경제에 미친 영향을 연구하기 위하여, 자유화 이후 공항에서 시장 합리화 (Market Rationalization)의 원리가 적용 되었는 가를 조사하였다. 이를 위해 (1) 자유화 이후, 공항료(Airport Rates and Charges)와 공항에서의 활동량 (the Volume of Activity) 간에 유의한 상관 관계가 존재하는 가의 여부 (2) 자유화 이전과 이후를 비교할 때, 각 Hub Class별 공항료의 수준에 있어 유의한 변화가 있는 가의 여부에 대한 통계 분석을 실시하였다. 상관분석의 결과, 자유화 이후, 공항료와 공항에서의 활동량 간에 유의한 상관 관계가 존재한다는 결론을 채택하는 데 실패하였으며 또한 일원 분산 분석의 결과, 자유화 이전과 이후를 비교할 때, 각 Hub Class별 공항료의 수준에 있어 유의한 변화가 있다는 결론을 제시할 수 없었다. 미국의 항공운송산업 자유화 정책이 미국 공항 경제에 미친 영향에 대한 본 연구는 현재 경제규제완화를 실험하고 있는 우리의 경제 정책에 좋은 참고자료가 되기를 기대한다.

• 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.

• Journal of Distribution Science
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• v.21 no.3
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• pp.13-23
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• 2023

Purpose: Low-Cost Carrier airlines attempt to provide the best service for their customers. However, the pandemic has forced airline companies to keep developing new strategies. Moreover, in this digital era, airlines must intensely market their service through social media to reach as many customers as possible. This research aims to study the impact of advertisements on Instagram and the customer experience concerning customer loyalty and satisfaction in the aviation industry. Research design, data, and methodology: This study uses a quantitative explanatory with the combination of the positivism paradigm. The data collection technique is by distributing questionnaires to related airline Instagram followers. Meanwhile, the sample calculation uses using the Slovin formula in which 414 respondents are gained. The collected data is analyzed with Structural Equation Model and using Smart-PLS software. Results: The study results indicate that advertising on Instagram and customer experience significantly positively affect customer satisfaction and loyalty. In addition, the variable customer satisfaction has a significant positive on customer loyalty. Conclusions: The study results indicate that the ease of obtaining information via Instagram can affect satisfaction and will increase when customers have made a flight so that they will become loyal customers.

• The Korean Journal of Air & Space Law and Policy
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• v.24 no.1
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• pp.91-118
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• 2009

In the Republic of Korea, Regional Airlines from Jeju Air and Hansung Airlines have recently entered the domestic market to compete with the existing Legacy Airlines. In addition many of newly established regional low cost carriers like Air Busan, JeanAir, Easter Airline, are preparing to enter the jungle market. These circumstantial changes have come about as transportation competitiveness are getting weak in the market due to simultaneous expansion of surface modes such as a new opening of high-speed rail and extension of highways. The jumbled market entry by regional low cost carriers makes an enormous influence not only in managing transport network of existing carriers but also for the domestic policy of aviation authorities. It is too early to judge whether they would succeed or not. It is necessary to analyze the network operation of these regional carriers launching domestic routes and preparing to launch short distance international routes under the rapid changing market circumstances such as introduction of KTX or decrease in domestic routes by Legacy Airlines. Many regional airlines are to launch the routes connecting Korea-China-Japan, if they could ensure long-haul international routes successfully, it would follow that the difference between Legacy Airlines and Regional Airlines would decrease more and more, which would result in appearance of the $3^{rd}$or $4^{th}$Legacy Airlines The purpose of this study is to analyze the introduction of low cost carriers by regions and economic regional carrier network for non-scheduled air transportation market by taking a look at the regional airlines transportation network in the early stage of the domestic air transport market. For this purpose, cost and profit structure and management effect of transportation cost will be analyzed by comparing the presently operated routes of regional airlines with those of Legacy Airlines. And also demonstrative analysis demanded by the actual market will be achieved through surveys from experts, the actual airlines and travel agencies to build up transportation network.

• Korean Business Review
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• v.12
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• pp.239-254
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• 1999

There has been a lot of researches on the major motivation of consumer's choice for airlines. Due to the competition in airline industries, most of airlines offer a various level of benefits to customers such as a frequent traveller bonus, a schedule, services in flight including a meal and an entertainment program, a discounted fare and an intangible part of personal service. However, it is very difficult to measure the performance of the customers' benefit and to identify the weight of each factor being considered on the airline choice. In this paper, we focus on the airline choice process for the business travellers. The AHP is applied to evaluate the factors reflecting the business travellers' choice for airlines. This study will be useful to build a marketing plan for the business traveller's market.

• Journal of Digital Convergence
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• v.10 no.2
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• pp.101-108
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• 2012

This study, for the reinvigoration domestic LCCs (Low Cost Carriers) in Asian air market which is in developing stage now, aims to analyze the management risk through the operation cases of domestic and foreign areas and then to derive a risk management plan to reinforce the competency of domestic LCCs. As for the major potential risk factors for LCCs in Asia-pacific market, the first is the absence of growth strategy. Then, the second is the problems in airline route, the typical problem of subsidiary companies of major air lines. The third is the lack of specialists and professional manpowers. In order to cope with such risk factors, rapid growth should be controlled and competition with parent company by entering to parent company's airline route should also be avoided. At the same time, there should be a comprehensive supporting system to foster specialists and professionals in this industry.

• Journal of Distribution Science
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• v.12 no.10
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• pp.123-128
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• 2014

Purpose - The purpose of the study is to reexamine the price fairness as practiced by low cost airlines, as a consumer has to experience such inconveniences as inferior airport transportation, extra fees on in-flight meals, and non-negotiable seats, and consumers evaluate such experiences keeping in mind their total costs. This evaluation includes price fairness and allows a reasonable and overall consideration of factors of low cost airlines. It tries to set up a measurement of the indicators consumers' perceptions of price fairness academically as it adapts price fairness to airline services which are renowned for price volatility. Research design, data, and methodology - The research proposes an alternative pricing strategy for the long term profit of low cost airlines after going over conflicts between the traditional theory of consumers' price perception mechanism and flexible fair policy of low cost airlines. It was meaningful when it relates to the early stage of the business, while it enhances the risks relating to the long term survival of low cost airlines. In addition, it is significant as it highlights the negative influences on consumers' perceptions of price fairness, as low cost airlines run on extremely low cost perspectives. Results - The results of the research provide insight into four perspectives, as consumers' perceptions of price fairness are influenced by the frequency and range of price changes and services. The first perspective is that it would lead to positive price evaluation when a low cost airline cuts prices frequently with little changes than one big change. It also would lead to the same result when it comes to necessary services. The second perspective is that one big increase of price would rather undermine the negative aspects of price changes than those of several smaller ones. The third perspective is that additional services would be good to consumers' perceptions of price fairness as compared to discount benefits with respect to the cost. Finally, a low cost airline should consider that consumers will change airlines or defer their flight schedule if the flight fares increase beyond their limits. Conclusions - Low cost airlines should reconsider their pricing policies for services that were provided free earlier. A consumer would not like discount benefits when made to pay for services that were, for long, free of charge. If a low cost airline can provide services with no charge, it should improve volumes if the costs are standardized and, moreover, should consider the charging fees. Alternatively, a consumer can choose between services and fair discount. Low cost airlines are implementing sales promotion strategies, as the competition is more intense than it used to be. In these days, they should regard services over sales promotion, as consumers may prefer to spend money on good premium services. Some differentiation in services could create a good market position for the airlines and, hence, good financial performance.