• Korean Management Science Review
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• v.27 no.3
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• pp.149-160
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• 2010

This paper focuses on frequent flyer programs (FFPs), which have long been used by most airlines as a powerful marketing tool. Since the preference for FFPs reward services and the customer perceived values of mileage points differ among FFPs members, airlines should design a customer-oriented reward service based on customer preference to motivate the use of mileage points. The intention for using mileage points is affected by various kinds of attributes such as reword items, consuming mileage points for rewards and time of usage. In this paper, we focus on evaluating customer perceived values of attributes of FFPs reward services. A conjoint analysis model is applied to get the preference value of each attribute. Some empirical experiments are conducted in relation to Korean customers. From the empirical survey, the preference values of attributes are evaluated for different scenarios with respect to the number of mileage points. With the preference values of attributes, we can find several implications for airlines regarding the development of various FFPs strategies.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.29 no.2
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• pp.1-13
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• 2021

Fuel costs represent one of the most substantial expenses for airlines, accounting for 20% - 36% of the airline's total operating cost. The present study discusses the so-called discretionary fuel that is additionally loaded at the discretion of airlines to cover unforeseen variations from the planned flight operations. The proper range of the discretionary fuel to be loaded for economic flight operations was estimated by applying Monte Carlo simulation technique. With this simulation model for loading discretionary fuel, airlines cannot only reduce the total amount of fuel to be consumed but also minimize the risk of unplanned flight disruptions caused by insufficient fuel on board. Airlines should be able to guarantee proper risk management processes for fuel boarding by carrying enough fuel to high-risk airports. This study would provide a practical guideline for loading proper amounts of discretionary fuel. Future researchers should be encouraged to improve this study by elaborating the weather variable.

• Korean journal of aerospace and environmental medicine
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• v.30 no.3
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• pp.91-94
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• 2020

The coronavirus infectious disease-19 (COVID-19) pandemic has had a profound impact on the aviation industry. In order to overcome this crisis, airlines have made their efforts in various fields. Therefore, we tried to summarize these efforts of airlines. It is also essential to keep aircraft that have been in landing for a long time in optimal condition. In this paper, we tried to find out about efforts to maintain landing aircraft and maintenance of personnel. Through such constant care, airlines will be able to quickly respond to increasing aviation demand when the infectious disease situation is stabilized in the future. Finally, airlines and passengers must make several efforts to ensure that passengers are free from COVID-19 while traveling by air. These include general precautions to prevent infection, separation of airline personnel and passengers, changes in seat assignments and in-flight services, periodic aircraft disinfection, and prevention of in-flight infections.

• The Korean Journal of Air & Space Law and Policy
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• v.6
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• pp.149-164
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• 1994

• 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.

• Industry Promotion Research
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• v.9 no.2
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• pp.13-22
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• 2024

The purpose of this study is to derive passenger trends and change rates for each airline and identify directionality and synchronization phenomenon. Data by each airlines was collected from the National Statistics Forum of Statistics Korea, and we used a total of 156 monthly data from January 2011 to December 2023. In this study, the rate of change was calculated for domestic Full Service Carriers (Korean Air, Asiana Airlines) and Low Cost Carriers (Jeju Air, Jin Air, T'way, foreign airlines). As a result of the analysis, the correlation was found to be high for KOREA in that order: Asiana, Korean Air, Jeju Air, T'way, Jin Air, foreign airlines. The rate of increase was highest in that order: T'way, Jin Air, Jeju Air, foreign airlines, Asiana, Korean Air. In the Scatter analysis, Asiana and Korean Air showed a very strong synchronization with KOREA. In addition, Jeju Air, T'way, Jin Air and foreign airlines also showed the same direction toward KOREA to a certain degree. In the Box-Box Plot analysis, it was determined that each airline experienced a number of unusual sudden fluctuations due to the outbreak of COVID-19. Passengers have a wider range of choices due to the emergence of Low Cost Carriers, and as a result, expectations for airline service are increasing. Airlines will need to make appropriate environmental improvements to satisfy these needs for corporate development.

• The Korean Journal of Air & Space Law and Policy
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• v.30 no.1
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• pp.65-94
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• 2015

Since American Airlines launched AAdvantage which was the first Frequent Flyer Program in 1981, many people has accumulated mileage credits, and now, frequent flyer program(FFP) is the universal marketing tool to the airlines. These days, airlines establish a strategic alliance with domestic and foreign companies of various fields ; other airlines, travel agencies, car hire firms, hotels, department stores, even credit card companies. However, more people want to use their mileage credits, more airlines reject to approve that or change frequent flyer program against their customers. Last year, Northwest, Inc. v. Ginsberg, the United State Supreme Court made a decision that the preemption provision of Airlines Deregulation Act(ADA) preempts state laws related to rates, routes and services for air carriers including implied covenant of good faith and fare dealing. Thus, the claim of Ginsberg was canceled, it means that Northwest Inc. could terminated one-sidedly his membership in the frequent flyer program. In the contrast, Korea does not have the statute like ADA. If customers file a claim on FFP like Ginsberg, the courts of Korea judge whether the clauses of standard form contract are unfair or not. Therefore, in this article, Ginsberg would be checked on legal issues and be compared briefly with the courts' ruling in Korea.

• The Korean Journal of Air & Space Law and Policy
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• v.26 no.1
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• pp.93-125
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• 2011

The International Civil Aviation Convention (Chicago Convention) has been a backbone of international air transport system whereby air transport between States should be based on bilateral agreements, and in particular, international airfares, which are set up through IATA(International Air Transport Association) rate-fixing machinery could be approved by the governments concerned. International airfares are fares for transporting passenger and freight and their conditions between two or more countries. However, since U.S. pursued th deregulation policy in 1978 whereby routes, capacity and fares could be freely determined by airlines, many States have been following so called open-skies agreements. In many cases, aeronautical and competent authorities have been reviewing whether airlines' commercial activities including air fares could possibly conflict with free competition rules envisaged in relevant laws and regulations. As competition among airlines gets intense, airlines often resort to cooperation with other airlines in the forms such as equity exchange, M&A, code-sharing, fares consultation and resource pooling, mainly with a view to effectively use resources available and to avoid monopoly situation resulting from excessive and destructive competition among players. Whereas bearing in mind that application of competition laws is important to secure consumers' interests by preventing airlines's malpractices such as bargaining exorbitant fares, it is also important to comprehensively consider as many factors as possible, from that unilateral measure by governments may bring about retaliatory measures by the governments affected, to that airlines' cooperative practices may rather increase consumers' benefits by lowering air fares.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.25 no.2
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• pp.39-47
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• 2017

The ultimate aim of this research is to analyze the effects of on-line word of mouth (WOM) regarding airlines on behavior intention of airline passengers through information accommodation, attitude and trust. For the purpose, we have carried out a questionnaire survey with passengers who have used airline social media and websites as target, and analyzed a total of 362 copies of the questionnaire using structural equation. As a result of analysis, on-line WOM turned out to have a significant effect on accommodation, and the accommodation turned out to have significant effects on attitude and trust. Also, attitude turned out to have a significant effect on trust, and the trust turned out to have a significant effect on behavior intention. This research has significance in that it can help establish a WOM marketing strategy of airlines through grasping the actual situation of on-line WOM of airlines and present a possibility of WOM marketing utilizing social media as an appropriate marketing for aviation industry. At the same time, it also has an academic significance in that it predicted actual behavior intention of passengers who have used on-line WOM on airlines.

• Journal of Korean Society of Transportation
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• v.9 no.2
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• pp.57-74
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• 1991

Deregulation privatization regionalism and globalization are the specific examples of the recent trends in the world air transport market. As encouraged by the international trends and the domestic policy of promoting market mechanism Korean has been driving a two-airline policy since 1989. But due to the absence of experience and philosophy about the airline co-mpetition both Korean government and the two airlines have been criticized for failing to set fair-competition rules and for struggling to secure air service rights regardless of national interest. Therefore this study shows the costs and benefits of a two-airline policy in a small count-ry reviews the empirical studies about the cost structure of American and Canadian airlines and analyzes the economic consequences of allocating air service rights between two airlines. The policy recommendations are (1) removing government restrictions and expanding ai-rport facilities to develop the domestic market (2) retaining the two-airline policy in the in-ternational market (3) increasing traffic density rather than expanding network for the small airline (4) improving comparative advantage through a global alliance and a technological innovation for the big airline and (5) building an official committee for co-ordinating the two airlines' interests.