• Title/Summary/Keyword: Low cost carriers

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Evaluating and Categorizing Brand Assets of Full-Service Carriers and Low-Cost Carriers (대형항공사와 저비용항공사의 브랜드 자산 평가와 유형화)

  • Jeong, Seung-Hwa
    • 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.

Analysis of regional airline route development in Republic of Korea (한국 지역항공 향상을 위한 지역항공사 노선 정책에 대한 비교 분석)

  • Lee, Kang-Seok
    • 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.

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An Analysis of the Cost Structure of Air Transport Industry(Deriving Economies of Density, Scale and Scope) (항공운송산업의 비용구조 분석(밀도, 규모 및 범위의 경제성 도출을 중심으로))

  • Kim, Min-Jeong;Kim, Je-Cheol
    • Journal of Korean Society of Transportation
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    • v.24 no.3 s.89
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    • pp.143-153
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    • 2006
  • This paper annually estimates the economies of density, scale and scope with the data of cost and output of 27 leading air carriers to suggest the political findings and strategies of raising the cost efficiency of our air transport industry. The estimation results and their implications are as follows. First, KAL and Aha would reduce their cost if they could increase international route density. Second, KAL and AAR would reduce their cost if they could expand the network but save their cost more effectively if they could increase international route density rather than expand the network. Third, the minimum efficient scale that minimize average cost of two national flag carriers which operate by the present output ratio among domestic passenger, international passenger and freight appears to be larger than each present output level of KAL and AAR. Meanwhile, it appears that minimum efficient scale of small size low cost carriers which operate domestic-oriented route is much smaller than minimum efficient scale of national flag carriers. Finally, it appears that there exists the diseconomies of scope between domestic passenger and the other outputs, that is, international passenger and freight and therefore save their cost if freight output ratio is higher and domestic passenger output ratio is lower than the Present level.

Utilization of SNS Review Data for a Comparison between Low Cost Carrier and Full Service Carrier (SNS 리뷰데이터의 활용 : 저가항공사와 대형항공사를 중심으로)

  • Woo, Mina
    • 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 Effects of Job Stress on Burnout and Job Satisfaction of Flight Attendants -Focusing on Comparison between Full Service Carrier and Low Cost Carrier- (항공사 객실승무원의 직무스트레스가 소진과 직무만족에 미치는 영향 - 대형항공사와 저비용항공사 간 비교를 중심으로 -)

  • Han, Sue-Youn;Lee, Hee-Chan
    • 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.

The Effect of Word-of-Mouth on Purchase Intention: A Case Study of Low-Cost Carriers in Indonesia

  • SOELASIH, Yasintha;SUMANI, Sumani
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.4
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    • pp.433-440
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    • 2021
  • This study aims at testing word-of-mouth (WOM) by mediating positive and negative perceptions of purchase intention on low-cost carriers (LCC) flights in Indonesia. One of the communications mixes that airlines can carry out is WOM. WOM is a form of communication between passengers after using a flight. The formation of a positive perception of WOM is expected by airlines. If a positive perception of WOM has formed, a purchase intention will arise. The study population included LCC flight passengers in Indonesia, involving 387 respondents. For indicators and variables, validity and reliability tests were conducted using CFA, CR, and AVE tools. Sampling locations were Soekarno-Hatta and Kualanamu airports. Sample collection was obtained through purposive sampling, and the analytical tool used was structural equation modeling (SEM) with Lisrel. The results showed that WOM influenced purchase intention through positive and negative perceptions of WOM. It can be seen that a positive perception of WOM has a direct effect, while a negative perception of WOM has the opposite effect. In conclusion, the mediation of perceptions influences purchase intention, whether it in the same direction or the opposite ones. To conclude, WOM is an antecedent for it influences purchase intention.

Forecasting and Analysis of Air Meteorological Service Charge using ARIMA-Intervention Time Series Model (ARIMA-개입모델을 이용한 항공기상정보 사용료 징수액 추정 및 적정성 연구)

  • Kim, Kwang-Ok;Park, Sung-Sik
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.26 no.3
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    • pp.9-22
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    • 2018
  • Korea meteorological administration(KMA) has started to levy air meteorological service charge on both national and foreign carriers since 2005. The charge has grown on 2010 and 2014 twice. However, KMA has still kept asking airlines to agree with another increase in the charge due to the low cost of goods recovery ratio of 7%. The air meteorological charge has changed from 2,210 KRW at the beginning to 11,400 KRW as of June 2018. According to ARIMA intervention time series analysis, it was proven national carriers would make a payment of 831 million KRW 2018 and 1,024 million KRW 2019, showing 186.2% and 123.2% increase compared to last year respectively. The total amount of charge for both national LCC and foreign airlines was aggregated up to 1,952 million KRW 2019, 227% bigger than the charge paid at 2017. Considering the 50% increase of consumer price index last decade, the increased charge would impair the global competitiveness of national carriers. It could be suggested that current air meteorological charge scheme be improved to apply overseas trend and for national carriers to have a competitive advantage in global aviation market.

The Comparative Analysis of Perceived Risks in South Korean Low Cost Carriers and Full Service Carriers (우리나라 대형항공사와 저가항공사의 지각위험에 대한 비교분석)

  • Choi, Hew-Jong
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.19 no.1
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    • pp.49-57
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    • 2011
  • This paper concentrate on the passengers' perception of risks by analyzing data gathered through a field survey in the South Korean air market. Twenty two Koreans were killed in the accident of PMT Air in the Kingdom of Cambodia on June 25th 2007 and This has caused customers to be more concerned about the safety of airline. Three hundred forty-two samples were collected from field survey at Kimpo International Airport in Seoul and Jeju International Airport on Jeju island and the findings are based on 316 questionnaires. The multiple regression analysis, Analysis of variance (ANOVA), Correlation analysis, T-test were carried out to examine the effect, relationship and difference of data set. The results show that there are differences between passengers' perceived risks in LCC's and those in FSC's. Passengers of LCC's took serious consideration of the type of fleet and feeling physical risk, whereas those of FSC's only took consideration of financial risk.

The Study of the Influence of Low Cost Carriers' Web site Service Quality on Customer Loyalty (저가항공사의 웹 사이트 서비스 품질이 고객 충성도에 미치는 영향 연구)

  • Hyun, Hye-Won;Suh, Myung-Sun
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.23 no.1
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    • pp.103-112
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    • 2015
  • In this study, a study was carried out to see what influence low-cost carrier's e-service quality has on low-cost carrier customers' perceived value and customer satisfaction and what impact the results have on customer loyalty based on the results of previous studies related to e-SERVQUAL, an e-SERVQUAL measurement model for general e-commerce. In addition, a survey of consumers who have experienced using low-cost carrier experience through web sites was conducted. For the analysis of the data collected, SPSS 18.0 was used to conduct frequency analysis, factor analysis, reliability analysis, correlation analysis, and regression analysis and thus to test a hypothesis. Research findings showed that perceived value and customer satisfaction are closely related to customer loyalty, and it was also observed that the reliability factor on the service provided on the web site acts as an important influencing factor for customer loyalty in the perceived value and security factors such as payment by credit cards and protection of personal information serve as important one in terms of customer satisfaction. This study has its limitation in that samples of users who have experienced low-cost carrier are concentrated on specific ages and professions. In the future, it is required to conduct further studies on whether difference is made on the importance of measurement factors related to e-service quality by gender, age group, occupation, and e-service quality.

An analysis of the fuel saving effect during low carbon flight procedures (저탄소 운항절차에 따른 연료절감 효과분석)

  • Kim, Yongseok;Lee, Juhyung
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.21 no.1
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    • pp.39-44
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    • 2013
  • The amount of greenhouse gas (GHG) emissions has been increasing steadily over the last 4 years, averaging 6.8 percent a year, due to the growth of low cost carriers and the increased demand for air transportations. For the aviation GHG reduction, various fuel saving activities are implemented in many areas such as high-efficiency aircraft and bio-fuel development in the technical part and low carbon flight procedures, short cut route development in the operational approach. Among the various reduction technologies, we focused on low carbon flight procedures that are crucial to GHG reduciton and suggested a reduction effect according to target implementation rate using by fuel saving estimation data in each aircraft type.