• Title/Summary/Keyword: Airline Market

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Accident Analysis & Lessons Learned of B737MAX JT610 from a Flight Control System Design Perspective (비행제어시스템 설계 관점의 B737MAX JT610편 사고분석과 교훈)

  • Moon, Jung-Ho;Cho, Hwankee
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.28 no.1
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    • pp.106-114
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    • 2020
  • The Lion Air JT610 accident in Indonesia in October 2018, along with the Ethiopian Airline ET302 accident in March 2019, is an significant aircraft accident that detects defects of the B737MAX aircraft. Shortly after the accident, the FAA prohibited operation of the aircraft. This action has affected the market environment of airlines and aircraft manufacturers around the world. In October 2019, Indonesian Traffic Safety Committee released an accident investigation report for Lion Air JT610, which concluded that the causes of the accident were MCAS design defects, lack of education and training, and errors in the repair process. This paper summarizes the flight control system of the B737MAX aircraft, the causes of the accident based on the final accident investigation report, and provides considerations for aircraft design and retrofit.

Economic Effects of Incheon International Airport Arrival Duty-Free Shops (인천공항 입국장 면세점 도입에 따른 경제적 효과 분석)

  • Kim, Seok;Choi, Yu-Jin
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.26 no.4
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    • pp.20-26
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    • 2018
  • This study analyzes the economic effect of introducing the arrival duty - free shop at Incheon International Airport. Based on the estimated sales of KRW 127 billion for the duty-free shop at the port of entry, the international balance of payments was estimated at KRW 55.5 billion. Job creation was estimated at 530, including direct and indirect workforce. With the admission of arrival duty-free shops, duty-free shops in the airline are likely to see a decline in sales, helping to improve monopoly structure on the market structure side. It is expected that the rental income generated through the operation of the arrival duty-free shop will be used as a resource for social contribution activities, creating additional social economic effects.

The Effect of Airline Brand Authenticity: Focus on the Difference of LCC from FSC (항공사 브랜드 진정성이 소비자 태도에 미치는 영향 : LCC와 FSC의 차이를 중심으로)

  • Song, Sang-Yeon
    • Journal of Distribution Science
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    • v.14 no.5
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    • pp.115-123
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    • 2016
  • Purpose - Nowadays the competition between companies has been intensified in the aviation industry. It is hard to maintain successful market share in challenging managerial environment. Not long ago, a Korean major aviation company had faced social condemnation cause of managerial staff's immoral behaviors. That company suffers great losses in company brand value in terms of authenticity as an aviation company. This research tried to show the effect of brand authenticity in the aviation industry. First of all, this research tried to define the dimensions of the brand authenticities based on the former researches. This research suggested the airline brand authenticities as three kinds of dimensions. The dimensions of authenticities consist of performance aspects, symbolic aspects and moral aspects. And this research also tried to show the relationships between brand authenticities and consumers attitudes. Research design, data and methodology - The empirical research design is based on the experiments with six types of advertisement prototypes. The advertisement prototypes were based on three types of authenticities' characteristics. The prototypes were made of core statements about each authenticity. And the advertisement prototypes also were based on the aviation company types. The types of aviation companies could be divided into FSC(full service carrier)and LCC(low cost carrier). So the whole experiments were performed with six kinds of advertisement prototypes(3 brand authenticities X 2 aviation company types). The age of participants were from 20s to 40s. The proportion of participants' demographics are as follow. Age proportion is 50% of 20s and 50% of 30s and 40s. Gender proportion is 46% males and 54% females. The experiments performed through mobile devices. Advertisement prototypes were exposed to the participants through their mobile devices, and they answered the questionnaires. All the process of experiments were performed by a professional research firm to maintain the quality of data. Results - This research suggested some important outcomes as follow. First, brand authenticity had an important role to make a positive consumer attitude on the aviation company. All the three types advertisement of authenticities had a positive impact on the consumer attitude for the aviation company. Second, the three types of brand authenticities in the performance aspects, symbolic aspects, and moral aspects had a major impact on the consumers attitudes. The performance authenticity had the biggest effect on the consumer attitudes. Third, the types of aviation companies like FSC and LCC had a different correlation with types of authenticities. All the types of authenticities affected on the consumers attitudes in the FSC case. The symbolic authenticity had the biggest effect in the FSC case. But the performance authenticity showed the most striking effect in the LCC case. Conclusion - From this research, we can get a conclusion. The brand authenticity of aviation company should be managed carefully to maintain a positive brand image and consumers attitudes. And airline brand authenticities can be consist of three type dimensions. All the types of authenticities affects on the consumers attitudes positively. The symbolic authenticity affects more in the FSC case, and the performance authenticity influences more in the LCC case.

Estimation of Willingness to Pay for Smart Home Service by Contingent Valuation Method (조건부가치측정법을 이용한 스마트 홈 서비스의 지불의사액 추정)

  • Kim, Yonghee;Lim, Sung Eun;Choi, Jeongil
    • Journal of Korean Society for Quality Management
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    • v.44 no.4
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    • pp.833-843
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    • 2016
  • Purpose: The purpose of this study is to evaluate the value of smart home service using contingent valuation method that is the method evaluating the value of service which will be provided in the future. Using this method, this study suggests proper price and market value of smart home service through figuring out customer's willingness to pay. Methods: To estimate willingness to pay for smart home service, this study uses double bounded dichotomous choice question. The survey was conducted for 2 months from December in 2015 to February in 2016. A total of 269 copies were used to estimate through R-programming. Results: The results of this study are as follows; Gender(especially woman), income, proposed price are the factors which affecting willingness to pay. As the result of this study, average price of willingness to pay for smart home service estimates as \29,653. Comparing with high-speed internet bundling service fee, this estimated price for smart home service is appropriate level for customers to accept. Conclusion: This study estimates consumer's willingness to pay for smart home service which is in the market entry stage. In corporate side, this study might be meaningful for estimating investment scale and profit. Also it could provide basis for establishing strategic policy to develop smart home service market in government side.

Market Strategy for Low Cost Carrier of Selection Attributes (저비용항공사 선택 속성에 관한 시장전략)

  • Kim, Ji-Soo;Park, Hye-Yoon;Park, So-Yeon
    • Journal of Distribution Science
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    • v.16 no.3
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    • pp.69-77
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    • 2018
  • Purpose - As more low cost carriers are introduced, the competition between the low cost carriers to become the nation's leading low cost carrier is also being intensified. The purpose of this study is to select various choice attributes for low cost carrier and figure out important factors that customers take into account for low cost carrier selection. The study also involves in establishing the relationship between perceived value, customer satisfaction, and customer behavior Intention, in an effort to identify choice attributes that are important to customers' low cost carrier. Research design, data, and methodology - To examine these research models, samples were collected from 247 peoples who visited In-Cheon international Airport during June, 2017. Results - The results of the study showed that, 'reservation service', 'airport service', 'in-flight service', and 'price' services have a significant effect on the perceived value of the choice attributes. While 'reservation service', 'airport service', 'in-flight service', and 'flight operation service' have a significant effect on the customer satisfaction of the choice attributes, perceived value has a significant effect on customer satisfaction. Perceived value has a significant effect on customer behavior intention. Finally, customer satisfaction has a significant effect on customer behavior intention. Conclusions - Flight operation service has no significant effect on perceived value of the choice attributes of low cost carriers, which indicates that the low cost carriers have not yet been well-established in the flight operation service sector. It seems likely that low cost carrier will be able to gain a competitive advantage over other companies if they expand their routes and improve the convenience of flight connections. In addition, the results show that the price service does not have a significant effect on customer satisfaction of the choice attributes of low cost carriers. From this, we may assume that the airline ticket prices of low cost carriers are already low, and the price cannot be a deciding factor in the competitive advantage of low cost carriers. To achieve higher customer satisfaction of the choice attributes, companies should strengthen the competitiveness of 'reservation service', 'airport service', 'in-flight service', and 'flight operation service'.

An Implementation of a Virtual RFID Emulator System using a Commercial CAD tool (상용 CAD 툴을 이용한 RFID 에뮬레이터 시스템 구현)

  • Lim, Hyung-Mu;Bae, Sung-Woo;Jung, Myung-Sub;Jang, Byung-Jun;Kim, Jun-O;Park, Jun-Seok;Seong, Yeong-Rak;Oh, Ha-Ryoung
    • Proceedings of the IEEK Conference
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    • 2005.11a
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    • pp.1049-1054
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    • 2005
  • With the growth of RFID market in logistics industry, such as post office, airline, shipping etc., development of RFID readers and tags becomes crucial. Especially, $860{\sim}960MHz$ RFID is worth noticing because of its long identification range and low production cost. Therefore, performance tests and verification of reader and/or tag under development are very important. In this paper, a RFID emulator system is designed and implemented using a commercial CAD tool, a signal generator and a data acquisition device. With the RFID emulator system, many parameters such as spectrum masks, transmit power levels, data waveform and other RF characteristics can be analyzed. Furthermore it can be applied to the verification of real RFID Readers or Tags.

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A Study on the Influence of Airport IT Technology on Reliability / Pleasure of Airport Visitors and Intention to Reuse of IT Services (공항 IT기술이 공항 이용객의 신뢰성/즐거움 및 IT서비스의 재이용 의사에 미치는 영향에 관한 연구)

  • Kim, Goo-Young;Park, Hak-Soon;Lee, Su-Mi;Kim, Ki-Woong
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.25 no.3
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    • pp.18-34
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    • 2017
  • The recent air transportation market is rapidly changing in air and airport infrastructure such as efficiency of airports and airplanes, speeding up and enlargement, deregulation of airline industry, low cost airlines and regional airports. The purpose of this study is to conduct a direct questionnaire survey for airport users who have experienced in and out of airport IT service at Incheon International Airport, so that the airport self - service technology and airport support technology can be used for the trust. At this point, I would like to develop a tool to understand the airport user's perception of airport IT and to test the theoretical model that investigates the relationship between various types of airport IT, airport users' trust, enjoyment and intention to use IT. In conclusion, this study aims to establish directions and suggestions for how to develop IT services among airport service provision factors.

A Comparative Analysis of Business Strategies between Full Service Airlines and Low Cost Carriers in Korea

  • KIM, Byoung-Goo;KIM, Boine
    • The Journal of Industrial Distribution & Business
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    • v.13 no.12
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    • pp.9-22
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    • 2022
  • Purpose: Establishing a competitive advantage in the aviation market is essential as the competition among domestic airlines intensifies. Therefore, this study examined the management strategies of both large domestic airlines and low-cost airlines. Research design, data, and methodology: This study classified domestic airlines into Full Service Airlines (FSA) and Low Cost Carriers (LCC), examined each airline's current status and characteristics, and conducted case analyses of FSA and LCC based on Porter's generic competitive strategy. Results: The analyses determined that LCC primarily implemented a cost-advantage strategy, and FSA implemented a differentiation strategy. However, as competition intensified, FSA pursued cost-advantage strategies while establishing LCC through subsidiaries. There are various specific cost reduction methods, including service simplicity, scalability, high utilization, low landing fees, low-cost unit, and point-to-point flight strategies. Conclusions: LCCs are focusing on cost advantage strategies that reduce costs; however, the FSA also runs special price events that are as good as LCCs and are comparable to LCCs on some routes. Furthermore, LCC has recently expanded its mid- and long-distance routes, making competition for long-distance routes with major airlines unavoidable.

A Study on Minimum Cabin Crew Requirements for Korean Low Cost Air Carriers

  • Yoo, Kyung-In;Kim, Mun-Kyung
    • The Korean Journal of Air & Space Law and Policy
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    • v.33 no.2
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    • pp.291-314
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    • 2018
  • In recent 3 years, Korea's low-cost airlines have expanded their areas of passenger transportation not only to domestic market but also to Japan, China, Southeast Asia and US territory as a total of 6 companies (8 airlines including small air operation business carriers). Currently, three more airlines have filed for air transportation business certification as future low-cost carriers, and this expansion is expected to continue. To cope with the aggressive airline operations of domestic and foreign low-cost carriers and to enhance their competitiveness, each low-cost airline is taking a number of strategies for promoting cabin service. Therefore, the workload of the cabin crew is increased in proportion to the expansion, and the fatigue directly connected with the safety task performance is increased. It is stipulated in the Enforcement Regulations of the Korea Aviation Safety Act that at minimum, one cabin crew is required per 50 passenger seating capacity, and all low cost carriers are boarding only the minimum cabin crew. Sometimes it is impossible for them to sit in a floor level emergency exit for evacuation, which is the main task of the cabin crew, and this can cause confusion among evacuating passengers in the event of an emergency. In addition, if one of the minimum cabin crew becomes incapacitated due to an injury or the like, it will become a serious impediment in performing emergency evacuation duties. Even in the normal situation, since it will be violating the Act prescription on the minimum cabin crew complement, passengers will have to move to another available airline flights, encountering extreme inconvenience. Annex 6 to the Convention on International Civil Aviation specifies international standards for the determination of the minimum number of cabin crew shall be based only on the number of passenger seats or passengers on board for safe and expeditious emergency evacuation. Thereby in order to enhance the safety of the passengers and the crew on board, it is necessary to consider the cabin crew's fatigue that may occur in the various job characteristics (service, safety, security, first aid)and floor level emergency exit seating in calculating the minimum number of cabin crew. And it is also deemed necessary for the government's regulatory body to enhance the cabin safety for passengers and crew when determining the number of minimum cabin crew by reflecting the cabin crew's workload leading to their fatigue and unavailability to be seated in a floor level emergency exit on low cost carriers.

An Empirical Study on Evaluation Factors of Cabin Service Quality of Airlines (항공사 객실서비스의 품질 평가요인에 관한 실증 연구 - MIAT 몽골항공사를 중심으로 -)

  • Hyun, Kil-Nam;Batbold, Senderi;Byun, Ki-Hyo;Hurr, Hee-Young
    • Korean Business Review
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    • v.19 no.2
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    • pp.261-274
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    • 2006
  • Airline business operates in the 21st century within fast changing market environment and fierce competition. Management of airline companies has faced the need for vast adaptation to new trends in the growth of world economy that are cardinal changes in marketing environment due to quick development of Internet and IT, transport price competition and, as a consequence, low profit margin, diversified customer wants and needs, lack of investment needed for new aircraft equipped with the latest high tech innovations, unpredictable oil price changes, and exchange rate fluctuations. This study is aimed to evaluate the quality performance of cabin service, to analyse, further, the issues that appeared to be the most significant among customers' answers to questionnaire, to explore the relationships between these issues and customer satisfaction, to highlight the essential questions to address, and to provide some practical suggestions. The five dimensions (such as tangible, reliability, responsiveness, assurance, and empathy) were adopted to examine the relationship between the service quality and customer satisfaction of Mongolian and non-Mongolian passengers travelling by the MIAT. According to findings of analysis made with use of the SERVPERF model, it can be concluded that Mongolian travellers' satisfaction was effected by 'Tangible' and 'Responsiveness' dimensions of service quality, whereas the 'Empathy' dimension has more impact on the satisfaction of non-Mongolian.

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