• Journal of the Korean Society for Aviation and Aeronautics
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• v.19 no.1
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• pp.49-57
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• 2011

This paper concentrate on the passengers' perception of risks by analyzing data gathered through a field survey in the South Korean air market. Twenty two Koreans were killed in the accident of PMT Air in the Kingdom of Cambodia on June 25th 2007 and This has caused customers to be more concerned about the safety of airline. Three hundred forty-two samples were collected from field survey at Kimpo International Airport in Seoul and Jeju International Airport on Jeju island and the findings are based on 316 questionnaires. The multiple regression analysis, Analysis of variance (ANOVA), Correlation analysis, T-test were carried out to examine the effect, relationship and difference of data set. The results show that there are differences between passengers' perceived risks in LCC's and those in FSC's. Passengers of LCC's took serious consideration of the type of fleet and feeling physical risk, whereas those of FSC's only took consideration of financial risk.

• The Korean Journal of Air & Space Law and Policy
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• v.25 no.2
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• pp.139-162
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• 2010

In terms of the international air transport, the open skies policy implies freedom in the sky or opening the sky. In the normative respect, the open skies policy is a kind of open-door policy which gives various forms of traffic right to other countries, but on the other hand it is a policy of free competition in the international air transport. Since the Airline Deregulation Act of 1978, the United States has signed an open skies agreement with many countries, starting with the Netherlands, so that competitive large airlines can compete in the international air transport market where there exist a lot of business opportunities. South Korea now has an open skies agreement with more than 20 countries. The frequent flyer program (FFP) is part of a broad-based marketing alliance which has been used as an airfare strategy since the U.S. government's airline deregulation. The membership-based program is an incentive plan that provides mileage points to customers for using airline services and rewards customer loyalty in tangible forms based on their accumulated points. In its early stages, the frequent flyer program was focused on marketing efforts to attract customers, but now in the environment of intense competition among airlines, the program is used as an important strategic marketing tool for enhancing business performance. Therefore, airline companies agree that they need to identify customer needs in order to secure loyal customers more effectively. The outcomes from an airline's frequent flyer program can have a variety of effects on international competition. First, the airline can obtain a more dominant position in the air flight market by expanding its air route networks. Second, the availability of flight products for customers can be improved with an increase in flight frequency. Third, the airline can preferentially expand into new markets and thus gain advantages over its competitors. However, there are few empirical studies on the airline frequent flyer program. Accordingly, this study aims to explore the effects of the program on international competition, after reviewing the types of strategic alliance between airlines. Making strategic airline alliances is a worldwide trend resulting from the open skies policy. South Korea also needs to be making open skies agreements more realistic to promote the growth and competition of domestic airlines. The present study is about the performance of the airline frequent flyer program and international competition under the open skies policy. With a sample of five global alliance groups (Star, Oneworld, Wings, Qualiflyer and Skyteam), the study was attempted as an empirical study of the effects that the resource structures and levels of information technology held by airlines in each group have on the type of alliance, and one-way analysis of variance and regression analysis were used to test hypotheses. The findings of this study suggest that both large airline companies and small/medium-size airlines in an alliance group with global networks and organizations are able to achieve high performance and secure international competitiveness. Airline passengers earn mileage points by using non-flight services through an alliance network with hotels, car-rental services, duty-free shops, travel agents and more and show high interests in and preferences for related service benefits. Therefore, Korean airline companies should develop more aggressive marketing programs based on multilateral alliances with other services including hotels, as well as with other airlines.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.22 no.4
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• pp.15-24
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• 2014

Low Cost Carrier(LCC)s in Asia Pacific market are expected to record high growth due to the expansion of Open Sky Policy among Korea, Japan, China and South East Asia. As everybody is aware of, LCC is not only saving flight cost but also creates differentiating business model by reducing unnecessary services such as F&B and in-flight duty free sales services. Booming LCCs in Asian market will cause not only Incheon airport but also other local airports in Korea to compete heavily to attract LCCs. For example, Air Asia Group with more than 200 fleet has expanded its alliance network throughout Asia. Therefore this paper has researched a new business model operating a LCC terminal for the hub airport competitiveness. According to analysis result of case study, it was found out, considering increasing airline demand next decade, Incheon airport and other domestic airports in Korea had better change an existing terminal into a LCC Terminal(LCCT) to differentiate airport services and expand its hub network. That is because of economic feasibility, first of all, of securing hub and spoke networking capabilities with airlines and finally of developing commercial facilities customizing LCC passengers' demand.