Journal of the Korean Society for Aviation and Aeronautics (한국항공운항학회지)

The Korean Society for Aviation and Aeronautics (한국항공운항학회)
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Study on the strategic changes of the world LCC business models and their implications to Korean LCC industry(A Case Study of the world's major LCCs)

세계 LCC 비즈니스 모델의 전략적 변화 연구 및 국내 LCC 산업 관련 시사점 도출(세계 주요 LCC 사례를 중심으로)

  • Received : 2013.08.27
  • Accepted : 2013.09.23
  • Published : 2013.09.30
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Abstract

As the price competition between airlines became increasingly intensified, due to increased participation of low-cost carriers in the air transport industry and the continued deregulation of international air transport, each airline has introduced various management techniques for securing international competitiveness and operational efficiency in order to cope with the uncertainty in air transport industry. The world leading LCCs, such as Ryan air, easyJet and Southwest, have changed their traditional business models by increasing operation to primary airports, diversifying operating routes, making strategic alliances with FSCs or other LCCs, increasing the operations on the mid or long distance routes, expanding ancillary revenues, etc. As Korea's air transport industry is confronting with intense competition, our LCCs are requested to adjust to this new challenging situation. As the world leading LCCs did, Korean LCCs are recommended to adopt new business models such as restructuring of the air transport industry through M&A, operating more flexibly in terms of frequency or route, launching of services to primary airports, making strategic alliances with foreign FSCs, developing of 4th or 6th traffic demands, etc.

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