• 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.29 no.5
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• pp.43-54
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• 2011

After implementing "Semi-public management system of intra-city bus", the burden of financial aid for unprofitable routes is on the increase in Busan metro city. It becomes a heavy burden on the local finance, which needs to be resolved for improving the intra-bus system. The rainfall is one of the factors influencing the demands for intra-bus in urban transportation. Motivated by this fact, this study investigates the impact of rainfall on the intra-city bus demand. Actual bus users are surveyed on their patterns and recognition of using the bus according to the amount of rainfall. A rainfall forecast model using ordered probit model is presented, and the elasticity of the intra-city bus utilization to the amount of rainfall is also analyzed. The resulting findings could be applied to promote the use of intra-city buses and also be utilized as basic data for other studies to improve the intra-city bus system.

• Proceedings of the Korea Port Economic Association Conference
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• 2006.08a
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• pp.1-12
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• 2006

As national economies globalize, demand for intercontinental container shipping services is growing rapidly, providing a potential economic boon for the countries and communities that provide port services. On the promise of profits, many governments are investing heavily in port infrastructure, leading to a possible glut in port capacity, driving down prices for port services and eliminating profits as ports compete for business. Further, existing ports are making strategic investments to protect their market share, increasing the chance new ports will be overcapitalized and unprofitable. Governments and port researchers need a tool for understanding how local competition in their region will affect demand for port services at their location, and thus better assess the profitability of a prospective port. We propose to develop such a tool by extending our existing simulation model of global container traffic to incorporate demand-side shipper preferences and supply-side strategic responses by incumbent ports to changes in the global port network, including building new ports, scaling up existing ports, and unexpected port closures. We will estimate shipper preferences over routes, port attributes and port services based on US and international shipping data, and redesign the simulation model to maximize the shipper's revealed preference functions rather than simply minimize costs. As demand shifts, competing ports will adjust their pricing (short term) and infrastructure (long term) to remain competitive or defend market share, a reaction we will capture with a game theoretic model of local monopoly that will predict changes in port characteristics. The model's hypotheses will be tested in a controlled laboratory experiment tailored to local port competition in Asia, which will also serve to demonstrate the subtle game theoretic concepts of imperfect competition to a policy and industry audience. We will apply the simulation model to analyze changes in global container traffic in three scenarios: addition of a new large port in the US, extended closure of an existing large port in the US, and cooperative and competitive port infrastructure development among Korean partner countries in Asia.