Theoretical Discussion of the Characteristics of Low-Cost Airlines and the Ripple Effects on the Air Transportation Market
Air travel market has changed significantly by the emergence of a lowcost carrier (LCC). The LCCs offer lower fares and fewer frills than the traditional full service carriers (FSCs). The key competitive advantage of the LCCs is their ability to offer significantly lower fares, or at least to cre...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Aerospace Medical Association of Korea
2024-03-01
|
| Series: | Hanggong uju uihakoeji |
| Subjects: |
| Summary: | Air travel market has changed significantly by the emergence of a lowcost
carrier (LCC). The LCCs offer lower fares and fewer frills than the traditional full
service carriers (FSCs). The key competitive advantage of the LCCs is their ability to
offer significantly lower fares, or at least to create the image of offering lower fares,
while being able to generate profits by having low unit costs. LCCs have reshaped the
competitive environment within air travel markets and have made significant impacts
in the domestic passenger markets, which had previously been largely controlled
by FSCs. The new demand for air travel experience through the low fares of low-cost
airlines increases the likelihood of choosing not only low-cost airlines but also existing
large airlines when choosing air travel. This generally equates to the intention of
customers to move to more advanced products as their experience with new products
increases. Therefore, the purpose of this study is to theoretically discuss the operating
characteristics and market ripple effects of low-cost airlines, and to explore the
theoretical implications of existing papers. |
|---|---|
| ISSN: | 1738-2548 2713-9972 |