• Journal of the Korean Society for Aviation and Aeronautics
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• v.21 no.4
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• pp.112-118
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• 2013

Air travel demand has recently been growing and establishment and operation of low-cost carriers have been increased. Against this backdrop, low-cost carriers need to figure out diversified customer demand for low-cost carriers and ways to maximize marketing efficiency before applying it to the field so that they can attain superiority to large carriers in increased intensified competition. Low-cost carriers need to be differentiated from other carriers for the purpose of improving profits. Toward this end, this study conducted analysis on importance and satisfaction with carrier choice using IPA with regard to low-cost carrier customers. In conclusion, the paper accurately examined advantages and disadvantages of low-cost carriers compared to general carriers based on results of IPA analysis and suggested managerial strategies to enhance competitiveness based on division into four parts including maintenance and enforcement (1st quadrant, Delay compensation, Booking rapidity, Check rapidity, Crew service, refund service, baggage service, punctuality, transit services, airlines images), concentrated improvement (2nd quadrant, price, Convenience of seat), passive administration (3rd quadrant, Boarding service, cabin cleanliness, flight schedule, whether local crew on board, meal service, in-flight entertainment service), and enhanced satisfaction (4th quadrant, duty-free service, Variety of routes), so that practical suggestions could be presented to employees working in the field.

• 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 Research Journal of the Costume Culture
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• v.23 no.2
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• pp.176-192
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• 2015

This work aims at analyzing the comparative feature about female flight attendant uniform designs of Korean and Asian region low cost carriers and providing some basic materials for development of these airline companies. As a research method, examinations were carried out on attendant's uniform both theoretically and empirically. Comparison of uniforms was made among the five Korean carriers and ten typical Asian carriers for empirical research. Results showed the followings. First, all Korean low cost carriers were characterized as formal style except Jin Air. Unlike this, Asian low cost carriers appeared as diverse including formal, semi formal, and casual styles with a uniquely differentiated image. Second, all carriers applied their own symbolic color to their uniform. Third, logo or symbol was adopted as a pattern on scarf in the two Korean companies but it didn't take effect practically. For those Asian carriers, embroidery was used on jacket, jumper and collar. They utilized even a merchandising character to put emphasis on airline image. Fourth, diverse petty items with a decorative effect were used in the case of Korean low cost carriers. In the changing period of uniform, nothing much was changed and remained almost the same as before. Those in the Asian region were characterized with the smallest number of items and the preclusion of decorative add-ons on uniform.

• Journal of Distribution Science
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• v.11 no.12
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• pp.39-49
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• 2013

Purpose - This study attempts to examine the underlying dimensions of service quality (tangibility, reliability, responsiveness, assurance, and empathy) for low-cost carriers. It subsequently seeks to determine the effect of the relationships of the dimensions of service quality, airline image, and behavioral intentions on airline services to provide adequate basic information and attributes for developing differentiated and competitive service marketing strategies. Research design, data, and methodology - The survey for this study was conducted on patrons with low-cost carrier boarding experiences in districts near universities and central businesses of Seoul and Busan from 5/10/2012 to 16/10/2012. Out of 346 questionnaires, 20 questionnaires with missing data and insincere answers were excluded for this study. Collected data were processed using SPSS 18.0, and the hypothesis was verified by analyzing the structural equation model with Lisrel 8.54. First, the frequency analysis was conducted to identify universal characteristics. Second, the exploratory factor analysis and reliability analysis were conducted to identify the accuracy of the variable measurements of the construct. Third, to assess uni-dimensionality and reliability, confirmatory factor analysis was conducted. Finally, to verify the adequacy of the research model and research hypothesis, the structural model was employed. Results - The results revealed that the factors, "tangibility, reliability, responsiveness, assurance, and empathy" were shown to be the most important dimensions of service quality for the airline image of the low-cost carrier which was consistent with previous studies. Therefore, it is fair to suggest that these verified factors are crucial attributes for the brand image of low-cost carriers. Second, as reliability and responsiveness were shown to be the most important factors for behavioral intentions, it is viable to suggest that these two attributes are crucial for the sales value of low-cost carriers. Further, it was found that the brand image of low-cost carriers was closely related to behavioral intentions. Therefore, in order to ensure the competitiveness and loyalty of patrons, the airline image value is a crucial attribute. Conclusions - The result of this study established that service quality is the most important attribute for marketing to ensure competitiveness, and intensive and differentiated service marketing play a crucial role in creating profits for low-cost carrier companies. First, as tangibility is found to be the most crucial factor in ensuring service quality, quality control and maintenance of medium and small carriers must be provided to ensure reliability, as they are the main attributes of low-cost carriers. Second, in order to promote positive behavioral intentions, it is essential to enhance the value of airline image. Third, in order to ensure competitiveness, it is imperative to carry out intensive and differentiated service marketing. Therefore, to promote the image of low-cost carriers and enhance behavioral intentions, the level of service quality must be secured by developing appropriate service improvement programs.

• 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'.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.14 no.2
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• pp.45-55
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• 2006

Air transportation industry becomes more competitive because that the restrictions on new access to market were eased and related enough for each airline to choose the freight rate and the route without rein. New competitors are pursuing convergence strategy which focuses on low freight rate as a niche strategy for increasing market share by stimulating low cost demand. This strategy is now spreading all over the world such places as Europe, Asia, Oceania and etc. As of December 1, 2004, hundreds of low cost carriers are participating actively in the market and finding their level as a new strategic group in the air transportation industry with expanding their market. In case of USA, however, many airlines, which had newly entered to the market, went into bankruptcy in the mid-1980s. People Express in USA established in 1980 is one of the examples of failure. In case of Japan, Hokkaido International Airline, a typical low cost carrier which established in 1997, filed for bankruptcy. This study is for examining the strategic implication closely through the study on management strategy and cases of failure of low cost carriers.

• Journal of the Korea Society of Computer and Information
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• v.18 no.10
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• pp.207-216
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• 2013

The A low-cost carriers(LCC)' website represents their public face to the world. Futhermore, distribution through their own websites is generally regarded as the being most cost effective for airlines The Internet website has become an effective marketing vehicle for low-cost carriers(LCC). The objective of this study was to examine theoretical relationship of website quality, e-satisfaction, e-trust, and e-loyalty to the low-cost carriers' website. The study sample included respondents who had visited any LCC websites in the last 12 months. Data were collected by conducting a web-based survey to maintain respondents' anonymity and overcome time and place constraints. From the 334 usable data obtained, hypotheses are tested using structural equation modeling. The results indicate that website quality, e-satisfaction, and e-trust are antecedents of e-loyalty in loyalty relationships between passengers and low-cost carriers' websites. Website quality positively influences e-satisfaction, e-trust while e-satisfaction. However, contrary to our expectation, e-satisfaction has a negative effect on e-trust. Managerial implications are provided following presentation of the findings.

• Asia-Pacific Journal of Business
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• v.11 no.4
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• pp.167-176
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• 2020

Purpose - In this study, we tried to find that the relationship between the perception of customers on the airline service quality, customer satisfaction, and intention to reuse in Chinese low-cost carriers industry. Design/methodology/approach - We conducted the empirical study for hypotheses testing using the survey data of experienced users in Chinese low-cost carriers service. In this study, reliability and factor analysis were conducted using SPSS 26.0, the path analysis was performed using AMOS 24. Findings - We found that the customer's perception of aviation operation, reservation/ ticketing, online information service provided by Chinese low-cost carriers are positively associated with customer satisfaction. In addition, it was confirmed that customer satisfaction is positively related to the intention to reuse. Research implications or Originality - Based on the results of analysis, it was confirmed that the basic sub-services of the airline are also important in the low-cost carriers services market.

• The Journal of Industrial Distribution & Business
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• v.9 no.6
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• pp.37-47
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• 2018

Purpose - In this study, the safety related tasks for low cost carriers' were examined and measures to improve them were suggested. As the air demand increases rapidly, number of passenger has mushroomed in Korea and in order to keep with the demand low cost carriers have played a role. However, low cost carriers' safety related tasks are not reliable level so far. Thus, in this study, the low cost carriers' current situations in terms of safety are investigated, especially regarding how well the ICAO's new safety policies are applied. Research design, data, and methodology - The results of the Ministry of Land, Infrastructure and Transportation' investigation are introduced and field study results are analysed. Current status of retaining experts, staffs, administrators in terms of aviation safety tasks of low cost carriers is compared to those of major airliner and low cost carriers' aviation safety culture is also analyzed by examining the systems and questioning staffs. Especially the culture regarding aviation safety is very important because the culture surrounding the safety tasks plays a major role in every respect of conducting the tasks. Results - Overall the current status of low cost carriers' aviation safety tasks is below standard. Especially retaining experts and staffs is basically below the required level. Also, system and organization to conduct safety tasks are not satisfactory. In particular, aviation safety culture is not settled to operate appropriately. Conclusions - The International Civil Aviation Organization (ICAO) and member states are continuing to launch new safety policies in response to the surging demand for air travel worldwide. The most urgent and important issue among the various safety policies is to reduce air accidents. In order to reduce the number of accidents, ICAO decided to reduce the number of accidents by using the Reactive Safety Management. ICAO has to ensure that each member country can implement proactive safety management for aviation safety. A safety management system (Safety Management System) is a system in which each member state implements a fulfillment standard. The current situation and problems of the safety management system for each airline are suggested and proposed for improvements.

• 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.