• The Journal of Society for e-Business Studies
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• v.26 no.4
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• pp.15-36
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• 2021

The airline industry faces with significant competition due to the rise of technology innovation and diversified customer needs. Therefore, continuous quality management is essential to gain competitive advantages. For this reason, there have been various studies to measure and manage service quality using customer reviews. However, previous studies have focused on measuring customer satisfaction only, neglecting systematic management between customer expectations and perception based on customer reviews. In response, this study suggests a framework to identify relevant criteria for service quality management, measure the importance, and assess the customer perception based on customer reviews. Machine learning techniques, topic models, and sentiment analysis are used for this study. This study can be used as an important strategic tool for evaluating service quality by identifying important factors for airline customer satisfaction while presenting a framework for identifying each airline's current service level.

• Information Systems Review
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• v.24 no.1
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• pp.157-181
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• 2022

As competition in the airline industry intensifies, effective airline service quality evaluation has become one of the main challenges. In particular, as big data analytics has been touted as a new research paradigm, new research on service quality measurement using online review analysis has been attempted. However, these studies do not use review titles for analysis, relyon supervised learning that requires a lot of human intervention in learning, and do not consider airline characteristics in classifying service quality dimensions.To overcome the limitations of existing studies, this study attempts to measure airlines service quality and to classify it into the AIRQUAL service quality dimension using online review text as well as title based on self-trainingand sentiment analysis. The results show the way of effective extracting service quality dimensions of AIRQUAL from online reviews, and find that each service quality dimension have a significant effect on service satisfaction. Furthermore, the effect of review title on service satisfaction is also found to be significant. This study sheds new light on service quality measurement in airline industry by using an advanced analytical approach to analyze effects of service quality on customer satisfaction. This study also helps managers who want to improve customer satisfaction by providing high quality service in airline industry.

• 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 Advanced Navigation Technology
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• v.15 no.1
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• pp.147-156
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• 2011

IATA is playing a central role in the process of changing the international technical standards of common-use system which supports the airport check-in and boarding business in conjunction with the airline systems from CUTE to CUPPS. IATA expects that if the airport common-use system is changed to CUPPS, the development and maintenance costs related to the airline's common-use system can be reduced by the implementation of the standard interface about check-in and boarding business-related equipment and the certification of airline applications. Incheon International Airport is in the face of stiff competition with major Northeast Asian Airports to attract more airlines. To be more competitive than other airports, switching over to CUPPS is vital for airline's cost-saving effect. This study builds on CUPPS international technical standards and suggests design and implementation plans of Incheon International Airport's component-based next-generation common use passenger processing systems to support the various functions of user's requirements.

• 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.

• 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.

• 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.

• Industrial Engineering and Management Systems
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• v.13 no.2
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• pp.221-230
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• 2014

With the progress and prosperity of commerce and industry, time and money increasingly form an equal partnership. Using air carriers to shorten the round-trip time has become an important choice for many people in the tourism process. Faced with increasing competition within the aviation service environment, airline evaluation criteria and the requirements of customers are gradually dominating the evaluation mechanism for air transport service quality. Over the past few years, attention on the transport quality of service has been primarily focused more on land-based transport, and less on the relevant evaluation criteria of airlines. Many studies have shown that quality of service will directly affect customer satisfaction, resulting in the fact that good quality aviation services have become increasingly important. Therefore, in practical industrial operations with limited resources, there is an urgent need to delve into the assessment guidelines that have an impact on customers when they choose an airline, which can be used as a basis for improving customer satisfaction. Through a literature review and a reliability and validity analysis, this study summarized 19 evaluation criteria, using the purposive sampling method and the decision laboratory method (DEMATEL). In addition, this study viewed the causal relationship between the evaluation criteria and the degree of association as a continuing project for airlines. This study selected appropriate empirical samples from two domestic airlines. The conclusions may provide recommendations for all airlines.

• Journal of Advanced Navigation Technology
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• v.15 no.5
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• pp.913-924
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• 2011

This study purpose to find out how the relationship characteristics between travel agencies and airlines affect the conflict. As a result of analysis, competition, specialty, uncertainty of environment, frequency of contact and cooperation from the airline's answers have an effect on conflict while variability of environment, similarity, frequency of contact and specialty from the travel agency's answers are affected. In terms of relationship characteristics and conflict between airlines and travel agencies, competition, similarity, frequency of contact and difference of perception and communication difficulty are affected. The relationship characteristics from the result of this study makes a contribution in reducing conflict and improving positive relationship between airlines and travel agencies.

• 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.