• Title/Summary/Keyword: Long-Distance LCC

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A Study on the Establishment of Long-Distance Route Network of Full Service Carrier and Long-Distance LCC - Focused on Malaysia Airlines and AirAsia X (대형항공사와 장거리 LCC의 장거리 노선 네트워크 구축에 관한 연구 - 말레이시아 항공과 AirAsia X를 중심으로)

  • Choi, Doo-Won
    • Journal of Digital Convergence
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    • v.19 no.12
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    • pp.165-173
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    • 2021
  • The purpose of this study was to provide directions to help enter and expand long-distance routes by analyzing the characteristics of AirAsia X's network construction with Malaysia Airlines. To this end, long-distance route data was extracted from the OAG Schedule Analyzer and the network was analyzed on a two-period basis using SNA. Since AirAsia X's entry into long-range routes, Malaysia Airlines has steadily reduced its routes across the entire region. On the other hand, it is analyzed that AirAsia X is building an expanded network by increasing its network in Northeast Asia instead of ultra-long range routes. Studies have shown that LCCs also have potential growth in the long-distance route market of less than 7,000 km. The results of this study may help LCC establish a long-distance market entry and network deployment strategy.

A Comparative Analysis of Business Strategies between Full Service Airlines and Low Cost Carriers in Korea

  • KIM, Byoung-Goo;KIM, Boine
    • 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.

Life-Cycle Cost Analysis of Solution Transportation Absorption System (LCC 분석에 의한 상온 에너지수송용 흡수식 냉동기(STA)의 경제성 평가)

  • 오민규;이봉진;홍희기;강용태
    • Korean Journal of Air-Conditioning and Refrigeration Engineering
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    • v.16 no.6
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    • pp.506-513
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    • 2004
  • The objective of this paper is to evaluate the economic performance of latent and sensible energy transportation systems. LCC (Life-Cycle Cost) analysis is a practical method and a guideline for evaluating the economic performance of considered systems during the Life-Cycle Period. By comparing the LCC of alternatives, The most ideal alternative is determined which has the lowest LCC. It is concluded that the cost of STA (Solution Transportation Absorption system) can be reduced by 67% to that of sensible energy transportation for study period with 10 km transportation distance.

Report on VE & LCC (Value Engineering, Life Cycle Cost) Technics Introduction about the Electric Power Equipment (전력시설물에 대한 VE 와 LCC기법 도입에 관한 연구)

  • 김상직;장우진
    • Proceedings of the Korean Institute of IIIuminating and Electrical Installation Engineers Conference
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    • 2003.11a
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    • pp.81-86
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    • 2003
  • Recently the introduction of VE & LCC techniques for large size electric power facilities be achieved in various kinds form, of and tends to evaluate to the beginning investment cost when think about cost of electric power facilities usually, but must consider all life cycle cost (maintenance cost, repair cost, improvement cost, operation cost, electric power cost etc.). This treatise applies design techniques that consider copper loss related by voltage drop at power supply of long distance in trunk design and all life cycle cost techniques

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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))

  • Kim, Sang Do;Kim, Kee Woong;Choi, Kun Hee
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.21 no.3
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    • pp.55-64
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    • 2013
  • 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.

Investigation of a Hybrid HVDC System with DC Fault Ride-Through and Commutation Failure Mitigation Capability

  • Guo, Chunyi;Zhao, Chengyong;Peng, Maolan;Liu, Wei
    • Journal of Power Electronics
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    • v.15 no.5
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    • pp.1367-1379
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    • 2015
  • A hybrid HVDC system that is composed of line commutated converter (LCC) at the rectifier side and voltage source converter (VSC) in series with LCC at the inverter side is studied in this paper. The start-up strategy, DC fault ride-through capability, and fault recovery strategy for the hybrid HVDC system are proposed. The steady state and dynamic performances under start-up, AC fault, and DC fault scenarios are analyzed based on a bipolar hybrid HVDC system. Furthermore, the immunity of the LCC inverter in hybrid HVDC to commutation failure is investigated. The simulation results in PSCAD/EMTDC show that the hybrid HVDC system exhibits favorable steady state and dynamic performances, in particular, low susceptibility to commutation failure, excellent DC fault ride-through, and fast fault recovery capability. Results also indicate that the hybrid HVDC system can be a good alternative for large-capacity power transmission over a long distance byoverhead line.

A Study on Network Construction Strategies for Long-Haul Low-Cost Carrier Operations

  • Choi, Doo-Won;Han, Neung-Ho
    • 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.