• 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.

• 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.

• Journal of Digital Convergence
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• v.15 no.6
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• pp.189-196
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• 2017

This study investigates customer satisfaction with full service carriers (FSC) and low cost carriers (LCC) using social media sentiment evaluation. From 2008 to 2016, a total of 77,591 tweets about two FSC and six LCC were aggregated and classified as per airline choice factors. Sentiment evaluation was employed to assess customer satisfaction by three appraisers. The results showed that customer satisfaction with LCC was significantly higher (p<0.001) compared to FSC. Furthermore, overall customer satisfaction with both FSC and LCC has been facing a consistent downward trend since the last seven years. The results also highlighted low customer satisfaction with respect to booking and flight operation factors, and a steep decline in customer satisfaction across booking, onboard services, and marketing factors for FSC. The results of this study have practical implications for the airline industry, which can use this quantitative data to improve customer satisfaction with FSC and LCC.

• Journal of Digital Convergence
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• v.16 no.8
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• pp.99-107
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• 2018

The purpose of the study compares the difference between the carriers' reported large consumption emotion of customers in regards to the appearance of the crew. The research method was conducted for 15 days from March 11 to 25, 2018, and the number of valid samples was 289 in total. The results of the study showed that customers differ in the influence of perceived consumption sentiment between full service carrier and low cost carrier on uniform of flight attendant. Consumer sentiments perceived by low cost carriers are comfortable, familiar, and lively, and these results have proven that they are distinguished from low cost carriers by being clean, sophisticated, and large. The results of this study are significant when the airline has changed the crew uniform at the right time and considered it to be a marketing tool that is important to the image change of the company.

• Journal of Information Technology Services
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• v.17 no.3
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• pp.1-16
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• 2018

There exist a number of studies pertaining to the determinants of customer satisfaction between low-cost and full-service carriers in the airline industry. Most studies measured service quality using SERVQUAL based on a survey method. This study offers a new perspective by employing a big data analytic approach using SNS data, which reflects the immediate response of customers as well as trends in real time. This study chose eight factors from TripAdvisor's customer review site as determinants of customer satisfaction and compared the differences between low-cost and full-service airlines. The factors analyzed were seat comfort, customer service, cleanliness, food and beverage, legroom, entertainment, value for money, and check-in and boarding. Additionally, ratings from domestic and foreign customers were compared. The findings show that customer service and value for money are significant factors in satisfaction with low-cost airlines while all variables except legroom and entertainment are significant for full-service airlines. The results show that SNS-based data and analysis of big data are important for improving decision-making effectiveness and increasing customer satisfaction in the airline industry.

• The Journal of the Korea Contents Association
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• v.21 no.8
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• pp.442-454
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• 2021

Many domestic and international airlines that experienced dramatic recession due to COVID-19 pandemic are carefully being ready to normalise operations as a number of governments has begun to vaccinate for COVID-19. So with the same market share from domestic to short distant international services, the competition between Full Service Carriers (FSC) and low cost carriers (LCC) is anticipated to be more intensive. To explore the concepts such as the perception, value, attitude and faith of the object, this study implements Q methodology proposed to complement the limitations of quantitative and qualitative research methodology. As a result, the consumers of airlines' brand are divided into three types - the type of utility seeking, value-oriented and task-related. Using Q samples which consist of 25 statements, this study specifically approached the traits of each type by observing the subjectivity with the comparative P sample group that is made up for 20 participants. By discovering the type of FSC and LCC's brand asset and comparing the recognition of consumers, not only does this study evoke the need for a strategic direction of the effective management of Airlines' Brand asset but also have a signification in the way that especially provide hypotheses for follow up studies.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.22 no.3
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• pp.33-49
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• 2014

The object of this study is to verify the effects of job stress on burnout and job satisfaction of flight attendants and to confirm the difference in the effect on the consciousness of full service carrier and low cost carriers' flight attendants. In order to confirm, the study examines the relationship between job stress, burnout, and job satisfaction of airline cabin attendant. A survey was done for 55days from January 5th 2014 on flight attendants and total 200 valid samples were analysed. The results of the study demonstrated significant relationship and difference in job stress, burnout and job satisfaction of flight attendants between full service carrier and low cost carrier. As a result, the study is significant as it satisfaction between divergent airline work environment.

• 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.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.3
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• pp.116-130
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• 2019

This study investigates passenger-authored online reviews of airline services using social network analysis to compare the differences in customer perceptions between full service carriers (FSCs) and low cost carriers (LCCs). While deriving words with high frequency and weight matrix based on the text analysis for FSCs and LCCs respectively, we analyze the semantic network (betweenness centrality, eigenvector centrality, degree centrality) to compare the degree of connection between words in online reviews of each airline types using the social network analysis. Then we compare the words with high frequency and the connection degree to gauge their influences in the network. Moreover, we group eight clusters for FSCs and LCCs using the convergence of iterated correlations (CONCOR) analysis. Using the resultant clusters, we match the clusters to dimensions of two types of service quality models ($Gr{\ddot{o}}nroos$, Brady & Cronin (B&C)) to compare the airline service quality and determine which model fits better. From the semantic network analysis, FSCs are mainly related to inflight service words and LCCs are primarily related to the ground service words. The CONCOR analysis reveals that FSCs are mainly related to the dimension of outcome quality in $Gr{\ddot{o}}nroos$ model, but evenly distributed to the dimensions in B&C model. On the other hand, LCCs are primarily related to the dimensions of process quality in both $Gr{\ddot{o}}nroos$ and B&C models. From the CONCOR analysis, we also observe that B&C model fits better than $Gr{\ddot{o}}nroos$ model for the airline service because the former model can capture passenger perceptions more specifically than the latter model can.

• Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology
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• v.7 no.1
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• pp.35-44
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• 2017

In this paper, we attempt to investigate the moderating effect of brand power on the effect of in-flight service quality on customer satisfaction and recommendation in the aviation industry. The results were as follows. First, in the case of high brand power FSC(full service carriers), the cost-to-benefit ratio as well as all other flight service properties influence to customer satisfaction. However, in the case of low brand power FSC, the cost-to-benefit ratio showed a greater impact of customer satisfaction compared to other in-flight services. Second, as in the case of customer satisfaction, while the cost-to-benefit ratio more influence to customer recommendation than other in-flight services in low brand power FSC, the cost-to-benefit ratio as well as all other flight service properties influence to customer recommendation together in high brand power FSC. Therefore, low brand power FSC required tit-for-tat strategy against to LCC(low cost carriers) by pursuing disruptive innovation for price. And high brand power FSC required sustaining innovation strategy through improving flight services.