scholarly journals The Peculiarities of Low-Cost Carrier Development in Europe

Energies ◽  
2020 ◽  
Vol 13 (3) ◽  
pp. 639
Author(s):  
Jolanta Sabaitytė ◽  
Vida Davidavičienė ◽  
Gerard Frederick Van Kleef
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Current Situation ◽  
Ideal Solution ◽  
Contemporary Research ◽  
Low Cost Carriers ◽  
Fishbone Diagram ◽  
Low Cost Carrier ◽  
Southwest Airlines

Low-cost carriers (LCCs) have been growing by 11.4% in revenue passenger kilometers over 2017 and changed the airline industry radically. It drove down prices in the industry. Southwest Airlines (USA) designed the LCC blueprint model, and Ryanair copied it within Europe, followed by other airlines. This research aims to fulfill the gap in contemporary research upon LCC successfulness in Europe by a description of the current situation within Europe (2018 and January 2019) and the development issues it faced, which are mapped by the Ishikawa fishbone diagram. Furthermore, to rank the airlines on strength and vulnerability, The Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methodology was used for meeting LCC characteristics and airline success. By comparison of meeting the LCC characteristics and the rank of the successfulness, the results of the TOPSIS analysis showed that the airlines meeting the most LCCs characteristics are seemingly less vulnerable to the development issues that airlines are facing, as Wizz Air and Ryanair are meeting most characteristics and are the most successful. Concluded is that airlines meeting the most LCC characteristics are the least vulnerable to current issues. However, major disruptions can still form an issue and limit growth. This research can be useful for comparing and positioning airlines in the market, based on issues and operational choices.

scholarly journals Customers’ Experiences of Compassion and Brand Attitude: Evidence From Low-Cost Carriers

2021 ◽  
Vol 12 ◽  
Author(s):  
Sung-Hoon Ko ◽  
Yongjun Choi ◽  
Jongsung Kim
Keyword(s):  
Airline Industry ◽  
Positive Emotion ◽  
Positive Relationship ◽  
Brand Image ◽  
Low Cost ◽  
Brand Attitudes ◽  
Competitive Strategies ◽  
Low Cost Carriers ◽  
Low Cost Carrier ◽  
To Come

The purpose of this study is to examine the effect of compassion experienced by low-cost carriers customers on their brand attitudes. Specifically, this study aims to unbox the mechanisms through how the customers’ experiences of compassion influence the formation of positive brand attitudes. Using the data from 423 low-cost carriers customers in South Korea, this study found that the more low-cost carriers’ customers experience compassion, the more positive their brand attitudes are toward the low-cost carriers. Notably, this study demonstrated that the positive relationship between compassion and brand attitudes is serially mediated by positive emotion and positive brand image. The results from this study contribute to the literature on the airline industry by examining the roles of compassion, which is relatively new to the field, and also provide practical insights for a low-cost carrier to come up with competitive strategies to achieve a competitive advantage over its competitors in the industry.

Evaluating and Exploring Successful Disruptive Innovation in the Aviation Industry From the Perspective of Consumers

2021 ◽  
Vol 13 (4) ◽  
pp. 105-119
Author(s):  
Gang-Hoon Seo
Keyword(s):  
Word Of Mouth ◽  
Low Cost ◽  
Disruptive Innovation ◽  
Point Of View ◽  
Aviation Industry ◽  
Basic Service ◽  
Low Cost Carriers ◽  
Content Analyses ◽  
Southwest Airlines

Since Southwest Airlines' disruptive innovation was introduced, low-cost carriers (LCCs) have had a prominent impact on the aviation industry. Therefore, considerable attention has been paid to the LCC model. However, it is still not clear whether it is a successful disruptive innovation, or what factors and differentiation points for successful LCC service exist from the passengers' perspective. As this study's methodology, quantitative and qualitative content analyses are conducted using the word-of-mouth data of 1,854 passengers of 20 airlines. This study found that the LCC model is perceived as a successful disruptive innovation from the passengers' point of view. For successful LCC service, LC airlines should offer higher quality services than passengers' expectations using basic service elements. Also, good staff characteristics, leaving a professional impression, and providing good optional services could play a role as differentiation tools.

scholarly journals Time-Series Statistical Model for Forecasting Revenue and Risk Management

2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Mihir Kelkar ◽  
Cosmin Borsa ◽  
Lina Kim
Keyword(s):  
Time Series ◽  
Low Cost ◽  
Moving Average ◽  
Business Strategies ◽  
Annual Reports ◽  
Fiscal Year ◽  
Sarima Model ◽  
Autoregressive Integrated Moving Average ◽  
Low Cost Carrier ◽  
Southwest Airlines

Following a Low-Cost Carrier (LCC) model, Southwest Airlines has consistently demonstrated growing annual revenues up until the start of the COVID-19 pandemic. Southwest’s quarterly revenue shows that there exists a strong seasonal component with the revenue in the first quarter of the fiscal year (September) significantly higher than other quarters. Using the quarterly revenue data we constructed a time-series model: a seasonal autoregressive integrated moving average (SARIMA) model to forecast Southwest’s revenue over 2020. We then performed a cost and solvency risk analysis using the company’s financial results from its annual reports to analyze Southwest’s financial performance due to COVID-19, and proposed business strategies to keep Southwest financially stable.

scholarly journals THE EVOLUTION OF LOW COST CARRIERS IN AUSTRALIA

Aviation ◽  
2014 ◽  
Vol 18 (4) ◽  
pp. 203-216 ◽  
Author(s):  
Panarat Srisaeng ◽  
Glenn S. Baxter ◽  
Graham Wild
Keyword(s):  
Low Cost ◽  
Air Travel ◽  
Air Transport ◽  
Market Segment ◽  
Service Network ◽  
Air Transport Industry ◽  
Low Cost Carriers ◽  
Low Cost Carrier ◽  
Network Carrier ◽  
Second Wave

Due to the vast distances across the country as well as between urban centres, Australia is heavily reliant upon its air transport industry. Following deregulation of Australia's domestic air travel market on the 30th October, 1990, low cost carriers have entered the market. Australia's LCC market has had three discrete phases. The first wave occurred between 1990 and 1993 and was subsequently followed by a duopoly period in 1994–1999. The second wave occurred between 2000 and 2006 and the final wave has been in the post-2006 period. This paper examines the evolution of Australia's domestic low cost carrier airline market and finds that by 2010, low cost carriers had captured around 64 per cent of the market. Following the evolution of the “Virgin Australia” business model from a low cost carrier to a full service network carrier, commencing in 2011, the low cost carrier's market share has declined significantly and is now around 31 per cent. “Jetstar” and “Tiger Airways” are the two major carriers presently operating in this market segment.

Hedonic and Utilitarian Values Behind Engagement of Online Consumers

2021 ◽  
pp. 1242-1263
Author(s):  
Farrah Zeba ◽  
Musarrat Shaheen ◽  
Raveesh Krishnankutty
Keyword(s):  
Lived Experience ◽  
Airline Industry ◽  
Low Cost ◽  
Marketing Strategies ◽  
The Self ◽  
Customer Engagement ◽  
Third Order ◽  
Diary Method ◽  
Low Cost Carriers ◽  
Order Construct

In the hyper-competitive Indian airline industry, the low-cost carriers as well as full-service airlines are in dire need of innovative marketing strategies to engage their customers. To understand the dynamics behind the process of customer engagement, the purpose of this paper is to gain insights into the lived experience of consumers about their online air-ticket bookings experiences. In total, 60 frequent air travellers were approached to participate in the study and the self-completion diary method was incorporated to record their ticket booking experiences. The responses recorded in the diaries were analyzed on the basis of their content from which eight themes were derived. The findings bring forth the importance of hedonic experiential values along with utilitarian experiential values toward the engagement of customers during the online air-ticket booking process. The current study is one of the pioneers in conceptualization of customer engagement as a third-order construct by uncovering the sub-dimensions of the second order factors—utilitarian and hedonic experiential values.

Europe's airlines will see more restructuring

2016 ◽  
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Terrorist Attacks ◽  
Content Type ◽  
Underlying Condition ◽  
The Past ◽  
Low Cost Carrier ◽  
The Eu

Subject Europe's airline industry. Significance Despite good performance over the past year, the underlying condition of the European airline industry has not changed. Major carriers are still facing competitive challenges from long-haul airlines based in the Gulf, especially Emirates, Qatar Airways and Etihad Airways, and from the European low-cost carrier (LCC) sector. Impacts The fallout from recent terrorist attacks could hit the industry's fragile recovery. Labour unrest in France will affect Air France, as its pilots voted on May 30 to go on strike over pay conditions. A UK exit from the EU would force its airlines, some of the most efficient in Europe, to reconsider the focus of their operations. New opportunities may arise from the Commission's efforts to negotiate aviation agreements with such countries as Brazil as well as ASEAN.

Ailing Kenyan carrier will face more competition

2016 ◽  
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Air Travel ◽  
Recovery Strategy ◽  
East African ◽  
Content Type ◽  
Profit Margins ◽  
Low Cost Carriers ◽  
Fuel Costs ◽  
Air Carriers

Significance Despite low fuel costs and the global airline industry running profitable operations, Kenya Airways has recorded multiple years of losses, leading the company to consider a recovery strategy that includes selling aircraft and shedding jobs. Impacts East African air carriers could benefit from industry rationalisation, but domestic political concerns could obstruct regional reforms. Low-cost carriers have emerged in Africa but struggle to make headway against publicly owned airlines. Once Kenya Airways exits fuel-hedging commitments, lower prices should improve profit margins. Without airline liberalisation and local carrier rationalisation, foreign airlines will benefit most from growing African air travel. Government protectionism, high taxes and regulation will restrict competition, especially from low-cost carriers.

scholarly journals Overview of the developments in the domestic airline industry in South Africa since market deregulation

2013 ◽  
Vol 7 (1) ◽  
Author(s):  
Rose Luke ◽  
Jackie Walters
Keyword(s):  
South Africa ◽  
Airline Industry ◽  
Structural Changes ◽  
Low Cost ◽  
Air Traffic ◽  
Air Transport ◽  
Load Factors ◽  
Low Cost Carriers ◽  
Global Impacts ◽  
Domestic Airline

Deregulation or liberalisation of air transport has had major global impacts on the domestic air transport markets, with effects ranging from stimulation to changes in the structure and functioning of these markets. In South Africa, deregulation has had wide-reaching effects on the domestic market. The purpose of this article was to investigate the current domestic air transport market. A literature review was performed to examine the effects of deregulation in other domestic air transport markets around the world. This was followed by a review of the South African domestic air transport market prior to deregulation in order to determine the changes that were made following deregulation. The ten-year period immediately following deregulation was also examined; this period was characterised by relatively large numbers of market entries and exits. A database was obtained from the Airports Company South Africa; air traffic movements, passenger numbers and load factors were evaluated. The study showed that the market is still characterised by regular market entries and exits. Also that the entry of the low-cost carriers has stimulated the market, resulting in increased air traffic movements, higher passenger numbers, higher load factors in general and the opening of a secondary airport in Gauteng, Lanseria International. Deregulation and, more specifically, the entry of the low-cost carriers has resulted in structural changes in the market and more choice for passengers.

Sign in / Sign up

Export Citation Format

Share Document