• Title/Summary/Keyword: low cost carriers

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Airline Customer Satisfaction Analysis using Social Media Sentiment Evaluation: Full Service Carriers vs. Low Cost Carriers (소셜 미디어 감성평가를 활용한 항공사 고객만족도 분석 - 대형항공사와 저비용항공사 비교연구)

  • Lee, Ju-Yang;Jang, Phil-Sik
    • Journal of Digital Convergence
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    • v.15 no.6
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    • pp.189-196
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    • 2017
  • This study investigates customer satisfaction with full service carriers (FSC) and low cost carriers (LCC) using social media sentiment evaluation. From 2008 to 2016, a total of 77,591 tweets about two FSC and six LCC were aggregated and classified as per airline choice factors. Sentiment evaluation was employed to assess customer satisfaction by three appraisers. The results showed that customer satisfaction with LCC was significantly higher (p<0.001) compared to FSC. Furthermore, overall customer satisfaction with both FSC and LCC has been facing a consistent downward trend since the last seven years. The results also highlighted low customer satisfaction with respect to booking and flight operation factors, and a steep decline in customer satisfaction across booking, onboard services, and marketing factors for FSC. The results of this study have practical implications for the airline industry, which can use this quantitative data to improve customer satisfaction with FSC and LCC.

Analysis of Social Network between Consumption Emotion based on the Uniform of Full-Service Carrier and Low-Cost Carrier Crews (대형항공사와 저비용항공사 승무원의 유니폼에 따른 소비정서 간의 사회연결망 분석)

  • Seo, Ran-Sug
    • Journal of Digital Convergence
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    • v.16 no.8
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    • pp.99-107
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    • 2018
  • The purpose of the study compares the difference between the carriers' reported large consumption emotion of customers in regards to the appearance of the crew. The research method was conducted for 15 days from March 11 to 25, 2018, and the number of valid samples was 289 in total. The results of the study showed that customers differ in the influence of perceived consumption sentiment between full service carrier and low cost carrier on uniform of flight attendant. Consumer sentiments perceived by low cost carriers are comfortable, familiar, and lively, and these results have proven that they are distinguished from low cost carriers by being clean, sophisticated, and large. The results of this study are significant when the airline has changed the crew uniform at the right time and considered it to be a marketing tool that is important to the image change of the company.

An Analysis on the Efficiency of Low-Cost Air Lines in Korea (국내 저가항공사 노선 효율성 평가)

  • Choi, Ki-Seoun;Kim, Woo-Jae
    • 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.

A Study on Minimum Cabin Crew Requirements for Korean Low Cost Air Carriers

  • Yoo, Kyung-In;Kim, Mun-Kyung
    • The Korean Journal of Air & Space Law and Policy
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    • v.33 no.2
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    • pp.291-314
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    • 2018
  • In recent 3 years, Korea's low-cost airlines have expanded their areas of passenger transportation not only to domestic market but also to Japan, China, Southeast Asia and US territory as a total of 6 companies (8 airlines including small air operation business carriers). Currently, three more airlines have filed for air transportation business certification as future low-cost carriers, and this expansion is expected to continue. To cope with the aggressive airline operations of domestic and foreign low-cost carriers and to enhance their competitiveness, each low-cost airline is taking a number of strategies for promoting cabin service. Therefore, the workload of the cabin crew is increased in proportion to the expansion, and the fatigue directly connected with the safety task performance is increased. It is stipulated in the Enforcement Regulations of the Korea Aviation Safety Act that at minimum, one cabin crew is required per 50 passenger seating capacity, and all low cost carriers are boarding only the minimum cabin crew. Sometimes it is impossible for them to sit in a floor level emergency exit for evacuation, which is the main task of the cabin crew, and this can cause confusion among evacuating passengers in the event of an emergency. In addition, if one of the minimum cabin crew becomes incapacitated due to an injury or the like, it will become a serious impediment in performing emergency evacuation duties. Even in the normal situation, since it will be violating the Act prescription on the minimum cabin crew complement, passengers will have to move to another available airline flights, encountering extreme inconvenience. Annex 6 to the Convention on International Civil Aviation specifies international standards for the determination of the minimum number of cabin crew shall be based only on the number of passenger seats or passengers on board for safe and expeditious emergency evacuation. Thereby in order to enhance the safety of the passengers and the crew on board, it is necessary to consider the cabin crew's fatigue that may occur in the various job characteristics (service, safety, security, first aid)and floor level emergency exit seating in calculating the minimum number of cabin crew. And it is also deemed necessary for the government's regulatory body to enhance the cabin safety for passengers and crew when determining the number of minimum cabin crew by reflecting the cabin crew's workload leading to their fatigue and unavailability to be seated in a floor level emergency exit on low cost carriers.

Suggestions what need to be done to improve the airline services of the LCC (저비용항공사의 항공서비스 개선을 위한 과제)

  • Kim, Jeong Sook
    • Korean Journal of Human Ecology
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    • v.24 no.1
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    • pp.49-67
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    • 2015
  • The study aims to review airline services like the domestic line performance, the general flight fares and website discount fairs, reservation cancellation and cancellation charges, reroutings and personal discount system of the low cost carriers(LCC), and suggest what needs to be done to improve the airline service. The improvements to be made by the LCC should include increasing regular domestic lines, providing information compared for consumers, relieving the toll to call the service center, revising the conditions on reservation cancellation penalty, rerouting charges, revising the consumer dispute resolution standards, and promoting frequent fliers program. Development strategies should be established that can boost consumer benefits through the improvement of the airline services.

The Influence of Prior Knowledge and Service Quality on Customer Satisfaction and Reuse Intention in Korean Low Cost Carriers (국내 저비용항공사의 사전지식과 서비스품질이 고객만족과 재이용의도에 미치는 영향)

  • Kim, Dong-Su;Lee, Sanghak;Lee, Seung-Chang
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.25 no.4
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    • pp.111-123
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    • 2017
  • This study aimed at finding the ways to improve competitiveness of Korean low cost carriers in the highly competitive air transport market by understanding the relation among the influence of prior knowledge, service quality on customer satisfaction and reuse intention. The result of the research is as the following. At first, the influence of prior knowledge on customer satisfaction and reuse intention was statistically significant. The result indicates that customers who have much prior knowledge are more likely to be satisfied and to reuse. Secondly, the test for finding out the influence of service quality on customer satisfaction and reuse intention was statistically significant also. Thirdly, the results revealed that customer satisfaction positively influenced reuse intension. The influence of service quality on customer satisfaction and reuse intention reached the same research result compared with the existing literature.

The Moderating Effect of Brand Power on the Effect of Service Quality on Customer Satisfaction and Recommendation in Aviation Industry (서비스 품질이 항공사 만족과 추천에 미치는 영향에 있어 브랜드 파워의 조절적 영향)

  • Park, Seunghae;Hong, Jaewon
    • Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology
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    • v.7 no.1
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    • pp.35-44
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    • 2017
  • In this paper, we attempt to investigate the moderating effect of brand power on the effect of in-flight service quality on customer satisfaction and recommendation in the aviation industry. The results were as follows. First, in the case of high brand power FSC(full service carriers), the cost-to-benefit ratio as well as all other flight service properties influence to customer satisfaction. However, in the case of low brand power FSC, the cost-to-benefit ratio showed a greater impact of customer satisfaction compared to other in-flight services. Second, as in the case of customer satisfaction, while the cost-to-benefit ratio more influence to customer recommendation than other in-flight services in low brand power FSC, the cost-to-benefit ratio as well as all other flight service properties influence to customer recommendation together in high brand power FSC. Therefore, low brand power FSC required tit-for-tat strategy against to LCC(low cost carriers) by pursuing disruptive innovation for price. And high brand power FSC required sustaining innovation strategy through improving flight services.

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.

A study on operational risk management of Low Cost Carriers in Korea (국내 저비용 항공사의 경영위험 관리 연구)

  • Kwak, Bong-Hwan;Kang, Dong-Yoon
    • Journal of Digital Convergence
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    • v.10 no.2
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    • pp.101-108
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    • 2012
  • This study, for the reinvigoration domestic LCCs (Low Cost Carriers) in Asian air market which is in developing stage now, aims to analyze the management risk through the operation cases of domestic and foreign areas and then to derive a risk management plan to reinforce the competency of domestic LCCs. As for the major potential risk factors for LCCs in Asia-pacific market, the first is the absence of growth strategy. Then, the second is the problems in airline route, the typical problem of subsidiary companies of major air lines. The third is the lack of specialists and professional manpowers. In order to cope with such risk factors, rapid growth should be controlled and competition with parent company by entering to parent company's airline route should also be avoided. At the same time, there should be a comprehensive supporting system to foster specialists and professionals in this industry.

A Study on the Rate of Change and Direction of Passengers by Major Airlines (주요 항공사별 여객의 변동률 및 방향성 연구)

  • Soo-Ho Choi;Jeong-Il Choi
    • 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.