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As the wave of liberalization and deregulation have accelerated to relieve rigid controls over airline routes, capacity, and fare setting regimes, Low Cost Carriers (LCCs) have emerged especially in local aviation markets since the 1970s.

This paper has studied the effects of LCC's entry into the domestic aviation market which was pre-occupied by two major carriers, Korean Air (KAL) and Asiana Airlines. Through a simple model describing two situations, prior and post to LCC's entry, we analyzed changes and trends of each airline's output and profit based on the Cournot and two-stage Stackelberg game equilibrium.

In summary, our conclusion consists of five points: (1) Even though JIN Air's entry reduced KAL's respective output and profit, the more JIN Air produces, the higher the joint-profit of KAL and JIN Air is, (2) From the joint-profit aspect, increasing KAL's output to a level than JIN Air's is more profitable on the Gimpo-Jeju route, on the other hand, increasing JIN Air's output higher than KAL's is more profitable on the Jeju-Busan route, (3) Even though JIN Air's entry increase Asiana Airline's output, the more JIN Air produces, the less Asiana Airlines's profit is, (4) Total output in markets as well as total profits of firms will increase under certain conditions, (5) KAL and JIN Air tend to get caught in an unresolved conflict on level of LCC cost.

In the first two decades of the twenty-first century, low-cost carriers grew rapidly in many low- and middle-income economies. In this chapter, we examine the geography and network structure of low-cost carriers in such economies across Asia in 2018. We use these analyses to explore the relationship between budget airlines and economic development. Levels of disposable income and infrastructure adequacy help to account for the significance of low-cost airlines in some middle-income economies. And in turn, these airlines by fostering higher levels of accessibility and personal mobility may help catalyze faster development. However, the environmental externalities associated with aviation, especially atmospheric emissions, raise concerns about the sustainability of this mode. We assess these concerns and focus in particular on the development of low-cost carriers fleets in Asia. We ask whether the acquisition of more fuel-efficient aircraft will ameliorate aviation's environmental impact.

This paper aims to examine the low-cost carriers (LCC) impact on the high-quality carriers (HQC) in the aviation industry. The impact of LCCs on high-quality producers in the aviation industry has been a significant and multifaceted phenomenon.

The study employs a captivating case study approach, investigating into the intricate fabric of the subject matter. Interviews serve as the cornerstone of primary evidence, offering first-hand insights, while secondary data sourced from documents adds depth to the exploration of the challenges encountered by the HQC.

The study concludes that LCCs have disrupted the traditional aviation landscape by offering low fares, simplified service models and aggressive cost-cutting strategies. This disruption has affected both the high-quality producers, such as full-service airlines. Full-service airlines have adopted a strategy of segmenting their market by offering multiple fare classes, with varying levels of service and flexibility. This allows them to target both price-sensitive travelers and those seeking premium services, catering to a broader customer base. The competition from LCCs has spurred innovation within the aviation industry, leading to advancements in technology, digital services and operational efficiency. Airlines, both LCCs and traditional carriers, have had to adapt to evolving consumer preferences and embrace digital solutions for booking, check-in and in-flight services.

While this study provides a valuable cost-benefit analysis of the impact of LCC on high-quality producers in the aviation industry, it is essential to acknowledge its limitations and recognize the avenues for future research to further enhance our understanding of this complex and evolving industry landscape. While this study contributes valuable insights into the impact of LCCs on high-quality producers in the aviation industry, it is essential to recognize its limitations and identify opportunities for future research to expand our understanding of this complex and dynamic landscape. By addressing these limitations and exploring new avenues of inquiry, we can continue to advance our knowledge and inform evidence-based decision-making within the industry.

This study pioneers an exploration into the intricate tapestry of factors molding the future of the aviation sector. Through its groundbreaking analysis, it furnishes indispensable insights for industry stakeholders, policymakers and the discerning traveling public, setting a new benchmark for understanding and navigating the aviation landscape.

There is a strong academic and professional interest in the changing business model of LCCs in Europe. Recently, even Ryanair which is often considered a European LCC role model has departed from the point-to-point paradigm by offering transfers within its own network. We first provide a general overview of recent changes in the business model of airlines that used to be categorized as LCCs. We then add to existing studies on LCC network strategies toward building connections. While we distinguish different approaches to accommodate transfer passengers, our analysis focuses on mesh networks as an airline network topology other than hub-and-spoke networks to provide online connections. A schedule analysis of Ryanair’s direct and indirect services at its base at Porto airport exemplifies that a mesh network might allow LCCs to go beyond stand-alone operations to become network carriers without requiring a complete transition of the generic LCC business strategy.

The purpose of this paper is to explore the changing face of airline quality by analyzing the reported service and safety data for the traditional and low cost carriers.

Data were gathered from Department of Transportation records on service and safety quality from 1996‐2004. A safety rate was calculated for each carrier by adding accidents, incidents, near mid‐air collisions, and pilot deviations and dividing the total number by yearly departures. The service rate was calculated by adding all complaint categories and dividing by yearly departures. Averages and confidence intervals were calculated. Analysis of variance was performed on group means.

The findings of this study indicate that the low cost carrier group examined here has closed the gap on its traditional rivals in the area of safety quality, posting safety rates that are not statistically different from the traditional carriers over the period of this study. On the other hand, it has not as a group yet addressed the problem of basic service quality, posting a statistically lower level of quality (as measured by consumer complaints).

The study did not specifically examine airline amenities such as seat pitch, schedule, meals, or in‐flight entertainment.

Low cost airlines appear well placed to continue taking market share away from their traditional rivals who continue to struggle with high costs.

This paper is the first to examine the changing dynamics between traditional and low cost carriers following September 11.

This chapter examines the issues of the low-cost carriers (LCCs) in Japan and their impact on the domestic and international aviation markets. “Genuine” LCCs, such as Peach Aviation and Jetstar Japan, began their operations in 2012 to follow the new movement of low-cost and low-fare airlines, which are different from the “new emerging” airlines, such as Skymark and AIRDO that appeared in the late 1990s. We discuss the recent history of LCCs in Japan, the characteristics of each LCC, the competitiveness of the high-speed railway in the domestic market, the impact of open sky policies, and the contribution of inbound foreign visitors to the international passenger volume increase. As LCCs in Japan have recently begun operations, they can continue to play a significant role in the Japanese aviation market.

This study aims to analyze low-cost-carrier (LCC) passengers’ comments about their flight experience on Asian LCCs.

A netnography approach was used to review and content analyzed 230 LCC passengers’ negative feedback on the TripAdvisor website.

LCC service failures generated 17 different negative emotions; among them, shock, disappointment and surprise were the most frequent emotions felt by passengers.

Maintaining a high level of customer service and ensuring easy access to information reduces LCC passenger’s negative emotions and meets LCC passengers’ service expectations and satisfaction. This study provides guidelines for the LCCs management who want to implement a netnography technique as a marketing research strategy.

A better understanding of this concept will help the LCCs industry to build a robust business model than competitors, maintain their competitive advantages in the global market and develop effective marketing strategies to attract more passengers.

本文旨在分析低价航空公司乘客对他们在亚洲低价航空飞行体验的评价。

本研究使用网络志方法审查和内容分析了230名低价航空乘客在TripAdvisor网站上的负面评价。

低价航空公司的服务失误共产生了17种不同的负面情况。其中, 震惊、失望、惊讶为乘客最常感受到的情绪。

保持高水平的客户服务并确保其轻松获取有效信息可以减少低价航空公司乘客的负面情绪, 提高他们的服务期望和满意度。本研究为拟实施网络志技术作为营销研究策略的低价航空公司管理人员提供了指导意见。

更好地理解这一概念将有助于低价航空行业建立起比竞争对手更稳健的商业模式, 保持其在全球市场的竞争优势, 并制定有效的营销策略以吸引更多乘客。

Sevicio de aerolineas: problemas con provedores de bajo costo y experiencias emocionales de pasajerosResumen

Este estudio analizó los comentarios sobre la experiencia de vuelo de los pasajeros de las aerolíneas de bajo costo (LCCs, por sus siglas en inglés) de Asia.

Se utilizó un enfoque de netnografía para revisar y analizar el contenido de los comentarios negativos de 230 pasajeros de LCCs en el sitio web de TripAdvisor.

Las fallas en el servicio de las LCCs generaron 17 emociones negativas diferentes; entre ellas, conmoción, decepción y sorpresa fueron las emociones más frecuentes que sintieron los pasajeros.

Mantener un alto nivel de servicio al cliente y garantizar un acceso fácil a la información reduce las emociones negativas de los pasajeros de las LCCs y cumple con sus expectativas de servicio y satisfacción. Este estudio proporciona pautas para los gerentes de las LCCs que desean implementar una técnica de netnografía como estrategia de investigación de mercados.

Entender mejor este concepto ayudará a la industria de las LCCs a construir un modelo comercial más sólido que el de sus competidores, mantener sus ventajas competitivas en el mercado global y desarrollar estrategias de mercadotecnia efectivas para atraer a más pasajeros.

Aerolíneas de bajo costo (LCC), emociones negativas, falla en el servicio, destino turístico

A new marketing definition was issued by AMA in 2007. However, the new definition has argued that marketing covers a set of activities that guide organizations to achieve their business objectives. Perhaps, exploring the new insight of service practitioners would enhance the understanding of how the new marketing definition is universally applicable, especially in a developing country. This paper seeks to focus on the issues.

The qualitative research was conducted on a sample of managers who worked in a low‐cost carrier (LCC) airline. Four managers of ten LCCs agreed to participate in the study. The interviewees had to comment on their business challenges and current practices. The researcher then classified the interviewees' comments and opinions into sub‐topics.

There are some future agenda and implications for practitioner and service marketing researchers to develop service quality in the Indonesian LCC industry. The factors are corporate image, employees' capabilities, and a strong bonding with reliable suppliers.

In the LCC industry, the combination of internal and external supplier capabilities to deliver service quality is a business strategy to gain service breakthroughs.

This is preliminary investigation to identify a new research agenda in service marketing and to improve the quality of LCC service in Indonesia.

Low cost carriers (LCC) in the Asia Pacific are pursuing a strategy of marketing the aesthetic qualities of their cabin crew in order to differentiate their “value proposition”. This strategy concentrates on the physical dispositions of employees, thus mobilising the concepts of aesthetic and sexualised labour for commercial purposes. This paper aims to investigate some of the practical and ethical issues of such a strategy. In addition, the paper seeks to explore the boundary between the theoretical concepts of aesthetic and sexualised labour.

Presents two vignettes from the emerging LCC industry in the Asia Pacific. The first vignettes is of Virgin Blue, a LCC operating in the Australian domestic airline industry; the second vignette is of Air Asia, first established as a domestic LCC in Malaysia, but has now expanded to international short‐haul routes within the region.

The strategic deployment of aesthetic and sexualised labour in LCCs is ethically problematic on a number of levels. Concomitantly, this strategy is potentially undermined by the contradictory focus on cost minimisation, essential for LCC survival. Thus, the use of aesthetic and sexualised labour as a commercial strategy has the potential to become unstable over time because of the competitive dynamics and the somewhat paradoxical need to reduce costs while improving service standards.

The conceptual boundary between aesthetic and sexualised labour is explored in the new LCC industry in the Asia Pacific. The ethical and practical consequences, and the sustainability of such a strategy in this new environment are considered.

No‐frills carriers have revolutionized Europe's aviation market and have changed the airline business in a dramatic way. Having entered most of the countries in Central Europe, the wave has also reached the Baltics. The purpose of this paper is to reveal how a Scandinavian carrier entered the market with a subsidiary airline, by combining elements of low‐cost and traditional carriers.

The paper starts by giving a brief overview of the different airline operating philosophies. It is followed by an introduction into the Nordic airline market. The main focus will be on the operating strategy of Air Baltic and its relation towards the extension policy of Scandinavian Airlines.

The paper provides an independent and structured analysis about the strategy of Air Baltic. Theory was applied to determine how much the airline was influenced by the “low‐fare wave” of the aviation branch and its implications. The hybrid character of Air Baltic reflects the Central European/Baltic business environment.

Research is partly limited to the information published by the airline itself. Because international aviation journals have not yet covered Air Baltic, newspapers and popular journals were used as a base of information. To fill this gap, two semi‐structured interviews with Air Baltic executives were carried out.

The study is a useful source of information for scientists and managers dealing with the airline industry or/and the Baltic Sea region. Lecturers might use the paper for case‐based courses.

This paper is one of the first comprehensive publications in the English language about Air Baltic and the Baltic aviation market.