• 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 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 Korean Society of Transportation
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• v.9 no.2
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• pp.57-74
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• 1991

Deregulation privatization regionalism and globalization are the specific examples of the recent trends in the world air transport market. As encouraged by the international trends and the domestic policy of promoting market mechanism Korean has been driving a two-airline policy since 1989. But due to the absence of experience and philosophy about the airline co-mpetition both Korean government and the two airlines have been criticized for failing to set fair-competition rules and for struggling to secure air service rights regardless of national interest. Therefore this study shows the costs and benefits of a two-airline policy in a small count-ry reviews the empirical studies about the cost structure of American and Canadian airlines and analyzes the economic consequences of allocating air service rights between two airlines. The policy recommendations are (1) removing government restrictions and expanding ai-rport facilities to develop the domestic market (2) retaining the two-airline policy in the in-ternational market (3) increasing traffic density rather than expanding network for the small airline (4) improving comparative advantage through a global alliance and a technological innovation for the big airline and (5) building an official committee for co-ordinating the two airlines' interests.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.27 no.1
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• pp.57-68
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• 2019

The emission trading system implemented in Korea is a system in which the government allocates or sells emission rights by setting the emission allowable amount to economic players subject to the emission trading system, allowing companies to freely trade shortfall or extra money through the emission trading market. Korea also had implemented its first emission trading system scheme period of time from 2015 to 2017. As a result of the first planning period in which total of seven Korean airlines were targeted, the emission amount was about 5.51 million KAU, while the quota amount was only about 4.85 million KAU, about 116% of the actual quota was emitted and Domestic airlines have incurred additional costs of about 10.7 billion won. Due to ICAO's implementation of CORSIA, the airlines are expected to have to shoulder additional costs because purchasing exceed quota will be increased in order to offset excess emissions not only on domestic but also on international routes. Thus, this paper had analyzed the characteristics of the carbon trading system of air transport industry and suggested a mix of regulatory policies as an improvement method.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.26 no.4
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• pp.91-100
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• 2018

Recently, the airplane use rate has been renewing its peak every year. Especially, Gimpo-Jeju route is the busiest air route in the world and all domestic airlines are competing. Therefore, the purpose of this study is to propose differentiated marketing strategies from other airlines by analyzing the effect of customers' brand attitude on satisfaction and intention to reuse of airlines competing on the most competitive routes. 350 questionnaires were distributed to domestic passengers who have experiences using Gimpo - Jeju route in recent 3 years and 338 questionnaires were analyzed by SPSS24 program. The results of the study showed that brand attitude showed meaningful effects on satisfaction and intention to reuse, and brand image was the most influential factor among the sub - factors of brand attitude. Therefore, airlines operating Gimpo - Jeju route suggest the importance of marketing strategy to enhance brand image among various brand attitudes.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.23 no.4
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• pp.66-72
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• 2015

Recently due to shortage of pilots from aviation developed countries such as America, Japan and etc, not even regional airlines but also major airlines are facing difficulties of pilot shortage. Through statistic data, ICAO and Boeing Company are predicting that roughly 8 thousands of new pilots will be short per year. Therefore, to solve this pilot shortage, countries are searching solutions like reducing air route, and extending regular retirement. This study analyzes domestic pilot supply market and compares systems of pilot training between the domestic system and the system of America and Japan. From the comparison, the study has deducted improvements for the role of domestic certification system, ATO(Approval of Training Organizations) operation, and related organizations including the government.

• Industrial Engineering and Management Systems
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• v.13 no.2
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• pp.221-230
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• 2014

With the progress and prosperity of commerce and industry, time and money increasingly form an equal partnership. Using air carriers to shorten the round-trip time has become an important choice for many people in the tourism process. Faced with increasing competition within the aviation service environment, airline evaluation criteria and the requirements of customers are gradually dominating the evaluation mechanism for air transport service quality. Over the past few years, attention on the transport quality of service has been primarily focused more on land-based transport, and less on the relevant evaluation criteria of airlines. Many studies have shown that quality of service will directly affect customer satisfaction, resulting in the fact that good quality aviation services have become increasingly important. Therefore, in practical industrial operations with limited resources, there is an urgent need to delve into the assessment guidelines that have an impact on customers when they choose an airline, which can be used as a basis for improving customer satisfaction. Through a literature review and a reliability and validity analysis, this study summarized 19 evaluation criteria, using the purposive sampling method and the decision laboratory method (DEMATEL). In addition, this study viewed the causal relationship between the evaluation criteria and the degree of association as a continuing project for airlines. This study selected appropriate empirical samples from two domestic airlines. The conclusions may provide recommendations for all airlines.

• The Korean Journal of Air & Space Law and Policy
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• v.33 no.2
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• pp.3-34
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• 2018

Korea's air transport industry has a 70-year history since Korea National Airline was establishment in October 1948. Korea has 9 airlines which have international air transport business licenses, and as of 2017, air transport performance(Domestic & International) is ranked 8th in the world. Through analysis of Korea's air transport industry, this paper examines the essential problems of the domestic air transport industry and what policies and laws should be supplemented, and presents an "Policy Directions for the Air Transport Industry" that can continue to grow into a global aviation leading country in the future. Analysis of aviation statistics shows that the nation's air transport industry has a very high growth rate, and national airlines continue to invest in sustainable growth. Furthermore, new companies are also trying to enter the market. As of November 2018, four companies applied for licenses for international air transport business, one for international air transport business (cargo) license, and the Ministry of Land, Infrastructure and Transport is expected to decide whether to issue the license by first quarter of 2019. While some expect price reductions and consumer benefits through competition promotion, others worry about worsening airline financial structures and reducing safety investment due to competition. To sum up the problems of the nation's air transport industry, first, low-cost airlines focus only on attracting domestic demand, and thus have a weak foundation for continued growth. Second, the rapid growth in recent years has led to the lack of aviation professionals such as pilots and technicians and the saturation of slots at major airports. Third, since the financial soundness of airlines is not systematically managed, the financial situation of airlines can quickly deteriorate and the damage can be attributed to consumers. In order for the national airlines to continue to develop, the first is to focus on the endless demand of the global aviation market and to secure international competitiveness. Second, the government should support the airline infrastructure according to the size of the air transport industry, third, we will systematically nurture aviation experts who will lead the future of the nation's air transport industry, and finally, the government will have to continuously manage the financial status of airlines to prevent consumer damage in advance. Nowadays the air transport industry has become very competitive. Not only do airlines have to work hard for the sustainable development of national airlines, but all government agencies must support our airline companies in policy to win international competition.

• 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.