A Comparative Analysis of Business Strategies between Full Service Airlines and Low Cost Carriers in Korea

• 영문명: A Comparative Analysis of Business Strategies between Full Service Airlines and Low Cost Carriers in Korea
• 발행기관: 한국유통과학회
• 저자명: Byoung-Goo KIM Boine KIM
• 간행물 정보: 『산경연구논집(JIDB)』Volume.13 No.12, 9~22쪽, 전체 14쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2022.12.31

영문 초록

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.

목차

1. Introduction

2. Literature Review

3. Current Status of Full Service Airlines (FSA) and Low-Cost Carriers (LCC) in Korea

4. Generic Competitive Strategy of Korean FSA and LCC

5. Conclusions

References

키워드

Full Service Airlines Low Cost Carriers Cost Advantage Strategy Differentiation Strategy Focus Strategy