• Journal of Distribution Science
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• v.21 no.4
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• pp.21-33
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• 2023

Purpose: To study, analyze, and investigate how to improve the service quality distribution and perceived value of passenger loyalty in low-cost airlines in Thailand. Research Design, data, and methodology: The data was collected from low-cost airline passengers who had used low-cost airlines within Thailand more than twice in the last 12 months. In total, 632 questionnaires were received, representing 97.32%, and in-depth interviews were done using the semi-structured technique. The key informants were either executives or representatives from 4 low-cost airlines operating in Thailand. We utilized structural modeling techniques to examine the data relevant to the investigation. Results: The results show that low-cost airline passengers in Thailand have strong opinions about the perceived value of the passenger loyalty of low-cost airlines within this sector of the Thai air travel industry. The variables were sorted in order of importance and included passenger loyalty, satisfaction, trust, perceived value, and service quality distribution. The relationship between the service quality distribution variables and the significance in relation to passenger loyalty according to low-cost airlines in Thailand showed that service quality distribution had a positive effect on perceived value and that passenger satisfaction has a direct positive effect on passenger loyalty. Conclusions: The 8 QPSTL strategy is successful in terms of service quality distribution and passenger satisfaction, therefore it is an important aspect of low-cost airlines in Thailand.

• 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 Distribution Science
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• v.12 no.10
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• pp.123-128
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• 2014

Purpose - The purpose of the study is to reexamine the price fairness as practiced by low cost airlines, as a consumer has to experience such inconveniences as inferior airport transportation, extra fees on in-flight meals, and non-negotiable seats, and consumers evaluate such experiences keeping in mind their total costs. This evaluation includes price fairness and allows a reasonable and overall consideration of factors of low cost airlines. It tries to set up a measurement of the indicators consumers' perceptions of price fairness academically as it adapts price fairness to airline services which are renowned for price volatility. Research design, data, and methodology - The research proposes an alternative pricing strategy for the long term profit of low cost airlines after going over conflicts between the traditional theory of consumers' price perception mechanism and flexible fair policy of low cost airlines. It was meaningful when it relates to the early stage of the business, while it enhances the risks relating to the long term survival of low cost airlines. In addition, it is significant as it highlights the negative influences on consumers' perceptions of price fairness, as low cost airlines run on extremely low cost perspectives. Results - The results of the research provide insight into four perspectives, as consumers' perceptions of price fairness are influenced by the frequency and range of price changes and services. The first perspective is that it would lead to positive price evaluation when a low cost airline cuts prices frequently with little changes than one big change. It also would lead to the same result when it comes to necessary services. The second perspective is that one big increase of price would rather undermine the negative aspects of price changes than those of several smaller ones. The third perspective is that additional services would be good to consumers' perceptions of price fairness as compared to discount benefits with respect to the cost. Finally, a low cost airline should consider that consumers will change airlines or defer their flight schedule if the flight fares increase beyond their limits. Conclusions - Low cost airlines should reconsider their pricing policies for services that were provided free earlier. A consumer would not like discount benefits when made to pay for services that were, for long, free of charge. If a low cost airline can provide services with no charge, it should improve volumes if the costs are standardized and, moreover, should consider the charging fees. Alternatively, a consumer can choose between services and fair discount. Low cost airlines are implementing sales promotion strategies, as the competition is more intense than it used to be. In these days, they should regard services over sales promotion, as consumers may prefer to spend money on good premium services. Some differentiation in services could create a good market position for the airlines and, hence, good financial performance.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.25 no.4
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• pp.101-110
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• 2017

This research identifies the relation between the quality of cabin service(personnel and material services) in Korean low-cost airlines and resulting customer satisfaction and loyalty. Its aim is to provide low-cost airlines' international flights with basic information when building strategies, and to suggest a strategic implication for an original and competitive cabin service policy that can enhance customer retention. As a result of the analysis, first, hypothesis 1 on relation between the quality of Korean low-cost airlines' cabin service and customer satisfaction was all valid. Moreover, it was coherent with the results of previous researches. Second, hypothesis 2 on relation between the quality of Korean low-cost airlines' cabin service and customer satisfaction was also valid and coherent with previous studies. Third, hypothesis 3 on relation between customer satisfaction and loyalty was valid and coherent with existing studies. Consequently, this research suggests that in order to achieve the continuous retention of loyal customers through customer satisfaction, the quality of personnel and material service has to be considered primarily. In addition to that, this research also suggests that the original and competitive service marketing of low-cost airline is necessary for an airline to continue its profit-making.

• Journal of the Korean Society for Aeronautical & Space Sciences
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• v.46 no.5
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• pp.436-444
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• 2018

The purpose of this research is to assess the efficiency of the airline's route. The revenue source of low cost airline carriers is not various unlike regular airline carriers, because they are operating only domestic and international flights for a country of close proximity. In particular, domestic low-cost airlines in Korea can't provide cargo transport services but rely on passengers and additional services to generate profits. Therefore, it is absolutely important to maintain a low cost and effective passenger transport line. This study will suggest the way to improve efficiency of route operated by low-cost airlines. Analysis method is DEA. The input parameters and output results were selected by existing research. Based on the results of this study, it will be able to assist establishing routes and selling strategies of the low-cost airlines.

• 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.

• 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 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.

• The Korean Journal of Air & Space Law and Policy
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• v.24 no.1
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• pp.91-118
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• 2009

In the Republic of Korea, Regional Airlines from Jeju Air and Hansung Airlines have recently entered the domestic market to compete with the existing Legacy Airlines. In addition many of newly established regional low cost carriers like Air Busan, JeanAir, Easter Airline, are preparing to enter the jungle market. These circumstantial changes have come about as transportation competitiveness are getting weak in the market due to simultaneous expansion of surface modes such as a new opening of high-speed rail and extension of highways. The jumbled market entry by regional low cost carriers makes an enormous influence not only in managing transport network of existing carriers but also for the domestic policy of aviation authorities. It is too early to judge whether they would succeed or not. It is necessary to analyze the network operation of these regional carriers launching domestic routes and preparing to launch short distance international routes under the rapid changing market circumstances such as introduction of KTX or decrease in domestic routes by Legacy Airlines. Many regional airlines are to launch the routes connecting Korea-China-Japan, if they could ensure long-haul international routes successfully, it would follow that the difference between Legacy Airlines and Regional Airlines would decrease more and more, which would result in appearance of the $3^{rd}$or $4^{th}$Legacy Airlines The purpose of this study is to analyze the introduction of low cost carriers by regions and economic regional carrier network for non-scheduled air transportation market by taking a look at the regional airlines transportation network in the early stage of the domestic air transport market. For this purpose, cost and profit structure and management effect of transportation cost will be analyzed by comparing the presently operated routes of regional airlines with those of Legacy Airlines. And also demonstrative analysis demanded by the actual market will be achieved through surveys from experts, the actual airlines and travel agencies to build up transportation network.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.26 no.4
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• pp.142-148
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• 2018

In recent years, Korea's aviation industry has been developing rapidly due to the emergence of low-cost airlines. In order to survive in such competition, airlines are making various efforts to save the operation cost as much as possible. Fuel costs account for more than 25% of operating costs. For airlines, reducing aircraft fuel costs is an important part of improving profitability. In this study, analyzing the difference weight between flightplan and W&B Manifest for calculated the fuel that was unnecessarily loaded. As a method to calculate the unnecessary fuel was used by Airbus company flight planning program.