• Journal of Korea Trade
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• v.25 no.8
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• pp.57-74
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• 2021

Purpose - This study aims to analyze the characteristics of network construction by Norwegian Air and AirAsia X, which are recognized as leading airlines in the long-haul LCC market. Based on this analysis, this study intends to provide implications for networking strategies for Korean LCCs that seek to enter the long-haul market when the aviation market stabilizes again upon the end of the COVID-19 pandemic. Design/methodology - To conduct the network analysis on long-haul low-cost airlines, the Official Airline Guide (OAG) Schedule Analyzer was used to extract long-haul data of Norwegian Air and AirAsia X. To analyze the trend of the long-haul route network, we obtained the data from 3 separate years between 2011 and 2019. The network was analyzed using UCINET 6.0 in order to examine the network structure of long-haul low-cost airlines and the growth trend of each stage. Findings - Analyzing the network of long-haul routes by visualizing the network structure of low-cost carriers showed the following results. In its early years, Norwegian Air's long-haul route network, centering on regional airports in Spain and Sweden, connected European regions, the Middle East, and Africa. As time passed, however, the network expanded and became steadily strong as the airline connected airports in other European countries to North America and Asia. In addition, in 2011, AirAsia X showed links to parts of Europe, such as London and Paris, the Middle East and India, and Australia and Northeast Asia, centering on the Kuala Lumpur Airport. Although the routes in Europe were suspended, the network continued to expand while concentrating on routes of less than approximately 7,000 km. It was found that instead of giving up on ultra-long-haul routes such as Europe, the network was further expanded in Northeast Asia, such as the routes in Korea and Japan centering on China. Originality/value - Until the COVID-19 pandemic broke out, Norwegian Air actively expanded long-haul routes, resulting in the number of long-haul routes quintupling since 2011. The unfortunate circumstance, wherein the world aviation market was rendered stagnant due to the outbreak of COVID-19, hit Norwegian Air harder than any other low-cost carriers. However, in the case of AirAsia X, it was found that it did not suffer as much damage as Norwegian Air because it initially withdrew from unprofitable routes over 7,000 km and grew by gradually increasing profitable destinations over shorter distances. When the COVID-19 pandemic ends and the aviation market stabilizes, low-cost carriers around the world, including Korea, that enter the long-haul route market will need to employ strategies to analyze the marketability of potential routes and to launch the routes that yield the highest profits without being bound by distance. For stable growth, it is necessary to take a conservative stance; first, by reviewing the business feasibility of the operating a small number of highly profitable routes, and second, by gradually expanding these routes.

• Journal of Korean Society of Transportation
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• v.26 no.3
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• pp.41-51
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• 2008

As the local bus service diagram after the bus route reform is studied by variable analysis based on traffic card data and income adjustment data, the characteristic of the local bus system is revealed in Busan Metropolitan city. The relationship between traveling length and traveling time is influenced by traveling velocity. In order to keep a headway within 10 minutes, bus service number per minute should be over 0.1013 vehicles. The traveling time of afternoon is generally longer than that of forenoon. Compared with the bus used by a lot people, the deviation of that used by a few people is larger in the all cases of length, headway, time and velocity. According to the analysis of the relationship among card trip number, average income and transfer rate, the relationship between card trip number and average income is expressed as linear function in the general bus and as exponential function in the high-grade & rapid bus. The 1% increase of transfer rate is equal to 6.3 trip/vehicle/day decrease and 4.9 trip/vehicle/day decrease in two bus types respectively. The four effective variables are defined by the discriminant analysis between the profitable routes and the unprofitable; According to discriminant size, bus service number per km, bus via suburb, subway meeting number, bus via university. In order to increase the income when the minibus will be included among public transit transfer system in 2008, it should be necessary to settle the bus network and revitalize the public transit better. In order to decrease the cost, it should be necessary to reorganize the hierarchy between the local bus and the minibus better.

• Journal of Korean Society of Transportation
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• v.36 no.3
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• pp.184-194
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• 2018

Recently, the need to introduce bus lines on a welfare basis is increasing as public intervention in bus routes is accelerated through semi-public bus system. The main objective of this study is to establish the concept of PSO (public service obligation) bus line on a welfare basis and propose a classification method of PSO bus line under semi-public bus system. We introduced 3 indexes such as "equity" in terms of bus line distribution, "publicity" in terms of age distribution, and "profitability" in terms of bus operating revenues. On the basis of 3 indexes, we introduced the PSO bus line, which is fair and public, even if it is not profitable. Based on the concept established in this study, we divided 130 ordinary city bus lines in Busan Metropolitan City into 8 PSO bus lines. Also, considering the positive impact of public buses, which are less profitable, but improve the mobility of residents and secure public community, we suggested the need to introduce public buses in bus service shortage areas.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2002.05a
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• pp.179-184
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• 2002

We consider the heterogeneous fleet vehicle routing problem (HVRP), a variant of the classical vehicle routing problem (VRP). The HVRP differs from the classical VRP in that it deals with a heterogeneous fleet of vehicles having various capacities, fixed costs, and variables costs. Therefore the HVRP is to find the fleet composition and a set of routes with minimum total cost. We give an integer programming formulation of the problem and propose an algorithm to solve it. Although the formulation has exponentially many variables, we can efficiently solve the linear programming relaxation of it by using the column generation technique. To generate profitable columns we solve a shortest path problem with capacity constraints using dynamic programming. After solving the linear programming relaxation, we apply a branch-and-bound procedure. We test the proposed algorithm on a set of benchmark instances. Test results show that the algorithm gives best-known solutions to almost all instances.

• Journal of Korea Port Economic Association
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• v.27 no.4
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• pp.187-205
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• 2011

In considering the size of container logistic flow of Korea, one-port as a hub port is desirable in Busan Port, but as development of Busan Port and Gwangyang Port began as two-ports, they are good as mega hub ports. In case when ports of other regions such as Incheon Port are additionally developed, it is very likely that they become feeder ports rather than mega hub ports. As capital area uses Incheon Port and Pyeongtaek Port for transportation, fierce competition arises due to excessive facilities of terminal companies and it is not easy to be profitable. Therefore, it is more profitable to develop regional hub ports centering on near-sea routes of Korea China Japan rather than local ports such as Incheon Port and Pyeongtaek Port for intensive trade and transportation in the capital area. To mitigate excessive competition between container terminal companies, we need administrative guidance to maintain adequacy through comparing tariffs between ports of Japan and China which are in competitive relations with Korean ports. This study analysed efficiency of container terminal companies in Gwangyang Port, Busan Port and Incheon Port using data for five years from 2006 to 2010. As analytical variables, length of quay, floor area of yard, the number of cranes and employees were analytical variables and a total freight volume was a productive factor.

• The Journal of The Korea Institute of Intelligent Transport Systems
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• v.14 no.1
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• pp.103-111
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• 2015

The purpose of this study is to estimate the appropriate Demand Responsive Transport (DRT) fare for bus users upon introduction of the system, which is to improve ridership on economically non-profitable routes and to conform to the mobility right of those living in presently non-serviced rural areas. For this, a stated preference (SP) survey was adopted to assess respondents' preferences regarding DRT introduction, while the contingent valuation method (CVM) was used to calculate their willingness to pay (WTP) for DRT services. The analysis results show that, compared to the existing bus services with a 1,000 won bus fare, the value of DRT is considered to be 38.85%, 31.03% and 30.12% higher in terms of overall assessment, usability and convenience, respectively. The results of this study are expected to facilitate the decision making aimed at setting the appropriate DRT fare and implementing a DRT system that meets sustainability requirements.

• Journal of Korean Society of Transportation
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• v.25 no.5
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• pp.125-133
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• 2007

Through open-sky policy, USA and European selected market principle of multiuser. However, in Asian case, major airlines monopolize airports. It is purpose that analyzes fare competition of Asian Hub Airport and the position of Incheon airport in Asia. Passengers required longer time and distance to go to the destination because direct flights decreases. But passengers increased in airport every year. Because of routes that decrease, airlines provide more services of flights. So airlines prefer to Hub Airports. As a result, both passengers and airlines are profitable by various routs and the increased frequency. On the assumption that distance and fare are related, the final formula is as following that defined the air fare from hub(H) to destination(Z) by logarithm. Analysis showed that log Rdist is not 1 but 0.08. As distance increases, fare doesn't increase. If distance from hub to destination airports is longer, Log dist_HZ is negative. It is that fare decreases from origin to destination via hub or that fare increases from hub to destination. HHI_HZ and HHI_AZ are negative. It means that if the degree of monopolization of hub and origin airports is lager, fare decreases from origin to destination via hub. Or fare increases from hub to destination. And it compares the Incheon airport with the other Asian hub airports and it examines the competitive fare by market division. As compared with the Incheon airport, Singapore, Beijing and Narita airports are higher fares. They compete with the other ones by Asian hub airports. But Hong Kong and Taipei airports must have more passengers through fare competition yet.