• 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.

• 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.

• Industry Promotion Research
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• v.9 no.2
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• pp.13-22
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• 2024

The purpose of this study is to derive passenger trends and change rates for each airline and identify directionality and synchronization phenomenon. Data by each airlines was collected from the National Statistics Forum of Statistics Korea, and we used a total of 156 monthly data from January 2011 to December 2023. In this study, the rate of change was calculated for domestic Full Service Carriers (Korean Air, Asiana Airlines) and Low Cost Carriers (Jeju Air, Jin Air, T'way, foreign airlines). As a result of the analysis, the correlation was found to be high for KOREA in that order: Asiana, Korean Air, Jeju Air, T'way, Jin Air, foreign airlines. The rate of increase was highest in that order: T'way, Jin Air, Jeju Air, foreign airlines, Asiana, Korean Air. In the Scatter analysis, Asiana and Korean Air showed a very strong synchronization with KOREA. In addition, Jeju Air, T'way, Jin Air and foreign airlines also showed the same direction toward KOREA to a certain degree. In the Box-Box Plot analysis, it was determined that each airline experienced a number of unusual sudden fluctuations due to the outbreak of COVID-19. Passengers have a wider range of choices due to the emergence of Low Cost Carriers, and as a result, expectations for airline service are increasing. Airlines will need to make appropriate environmental improvements to satisfy these needs for corporate development.

• Journal of Aerospace System Engineering
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• v.15 no.6
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• pp.66-71
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• 2021

With the exception of some large domestic airlines with adequate maintenance capability, most low-cost and small airlines do not have the facilities, equipment/tools, or manpower to perform periodic inspections over "C check." They are repaired according to maintenance programs specified by manufacturers. The outsourcing (domestic or overseas) of maintenance contracts is thus crucial to achieve good quality service at low cost, and these contracts therefore need to be signed with a full understanding of what is to be expected. This study aims to determine the requirements to be considered prior to finalizing such contracts.

• 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.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.25 no.4
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• pp.91-100
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• 2017

Movements using aircraft are continuously increasing. This is because options for airlines, including eight national airlines, are becoming more diverse. In particular, FSC and LCC provide different services and prices, so it is not easy to choose, but it is analyzed that safety is the most important factor when selecting airlines in 2013 and 2017(all age groups are the same). There was a difference between 2013 and 2017 for each age group. In particular, the importance of price factors is high in 2017 compared to 2013, and other items in the 40s and 50s are also significantly changed.

• 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.

• Proceedings of the Korea Contents Association Conference
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• 2011.05a
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• pp.279-280
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• 2011

전 세계적으로 저비용항공사의 항공운송시장 참여로 승객들의 항공사 선택이 다양화 되었으며, 우리나라도 2011년 현재 5개의 저비용항공사가 시장에 참여하여 기존 국적항공사와 경쟁을 하고 있다. 본 연구는 우리나라 항공사 승객이 항공사 선택 시 중요하게 생각하는 속성을 파악하고, 저비용항공사 승객과 기존 국적항공사 승객이 항공사 선택 시 중요시 하는 속성의 중요도와 만족도 차이를 분석하는데 목적이 있다. 저비용항공사와 기존 국적항공사 승객을 대상으로 설문을 실시하여 항공사 선택 속성을 파악하고, 차이분석, 중요도-만족도 분석, t-test를 활용하여 항공사 선택 속성의 차이를 분석하고 국적항공사와 저비용항공사의 항공사 선택속성 중요도와 만족도 차이를 분석하고자 한다.

• International Journal of Advanced Culture Technology
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• v.10 no.4
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• pp.444-452
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• 2022

This research aims to investigate the relationship between safety climate and safety perception and safety behavior. Safety perception of the relationship is considered to have a mediating effect. Previous literature has tended to regard safety perception as an independent variable at the same level as the safety climate, which can be said to depend on behavioralism to approach the causal relationship to an one-way perspective. The survey was administrated through full- service carries in Korea such as Korean Air and Asiana Airlines, and low-cost carriers such as JeJu air, Jin air, and Air Pusan. It can identify a mediator of safety perception between safety climate and safety behavior. There are significant indirect effects of each value, which means mediators values of safety perception of safety climate variables and safety behavior. The study highlights that airlines should focus on the importance of their psychological aspects to strengthen the safety behavior of flight attendants and the value of organizational efforts to mature safety perceptions, suggesting some implications of theoretical and practical aspects.

• Journal of Distribution Science
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• v.17 no.2
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• pp.43-51
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• 2019

Purpose - This study was intended to provide implications for the importance of color to airlines where the image customers feel about the business is paramount. The importance of colors shown by the airline crew, an important human resource for airlines as contact workers, was investigated. We wanted to present suggestions by investigating and comparing the difference in customer attitude regarding the color of uniforms of the airline crew. Research design, data, and methodology - A survey was conducted to examine differences in perception of airline uniform color, with the research that suggests that the customer's attitude to uniform color will vary. The difference in the perception of passengers according to the colors of the airline uniforms was determined by conducting an empirical analysis. Results - Customers have a different attitude about the color of the uniform of airline's flight attendants' uniform. Full service airlines (FSC) generally have a bright, calm, neat, and heavy-handed feeling, while low-cost carriers (LCC) have a distinctive, dynamic, energetic, and cheerful feeling. Conclusions - An empirical analysis of the study found that customers' attitudes vary by uniform color for each airline. It has also been revealed that Airline's uniform color can communicate the company's goals it wants to convey.