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.

scholarly journals ANCILLARY REVENUE PRICING

2015 ◽  
Vol 6 (2) ◽  
pp. 43-62 ◽  
Author(s):  
Andreas Wittmer ◽  
Nicole Oberlin
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Performance Ratio ◽  
Major Influence ◽  
Service Network ◽  
Price Performance ◽  
Low Cost Carriers ◽  
The Individual ◽  
Buying Behaviour ◽  
Network Carrier

The airline industry has evolved from a system of long-established state owned carriers operating in a regular market to a dynamic, deregulated industry. This development – especially the emerging competition of low-cost carriers – has had a major influence on the price setting behaviour of airlines. Profitability of airlines is limited and pricing systems are reconsidered. To stay competitive, traditional full service carriers consider the implementation of ancillary revenue systems, which are similar to low-cost carriers. This paper investigates challenges of an ancillary revenue pricing approach for full service network carriers. A qualitative means-end approach is used to find attributes, which are important for air passengers, and influence their ticket buying behaviour. In addition, the study provides insight into the perception of an ancillary revenue system in the full service network carrier market. The findings present 18 ticket purchase attributes and 15 behavioural terminal values in hierarchical value maps. Based on these values, it is evident that most passengers appreciate if some services are included in the price and not offered as ancillaries. Benefits of ancillary revenue systems include the individual ticket creation, customisation, improved price-performance ratio, flexibility gains and progressive ideas. The main drawbacks of the system include a complicated and complex booking process, feelings of uncertainty, branding problems, a distortion of competitive behaviours, a system similar to that of low-cost carriers, feelings of paying extra for every service and a perceived decline in service and quality.

scholarly journals Effectiveness of National Airlines in Europe – the DEA Approach

2016 ◽  
Vol 16 (2) ◽  
pp. 103-118 ◽  
Author(s):  
Agata Żółtaszek ◽  
Renata Pisarek
Keyword(s):  
Low Cost ◽  
Air Transport ◽  
Competitive Environment ◽  
Load Factor ◽  
Data Envelopment ◽  
Eu Member States ◽  
Analysis Methodology ◽  
Low Cost Carriers ◽  
Dea Approach ◽  
Regional Airports

Abstract National airlines operate in a highly competitive environment. EU airlines face a challenge to compete with low cost carriers, as a result of the liberalization process in the sector. European flag airlines of non-EU member states, not benefiting from liberalization, are forced to compete internationally. This research is focused on national carriers, as they provide the majority of service to and from central and regional airports. Therefore, to establish the most efficient entities on the passenger air transport market, DEA (Data Envelopment Analysis) methodology, has been utilized. The purpose of this paper is to evaluate the effectiveness of 29 chosen national airlines in Europe in the year 2013, using the DEA approach, to pinpoint the subset of fully-efficient market leaders, as well as potential sources of inefficiency, among less effective carriers. The analysis incorporates information on inputs (e.g. fleet, number of employees, number of countries and airports served) and outputs (revenue, annual passengers carried, load factor). The results show that more than 40% (12 of 29) researched airlines are effective and the other 34% are near-efficient. Moreover, outcomes suggest that “going big” may not increase effectiveness. It is harder to achieve full efficiency for big carriers than small ones.

scholarly journals PERLINDUNGAN HAK KONSUMEN MENGENAI PEMBERLAKUAN TARIF BATAS ATAS DAN BATAS BAWAH JASA ANGKUTAN UDARA BERDASARKAN UNDANG-UNDANG PERLINDUNGAN KONSUMEN NOMOR 8 TAHUN 1999 (DALAM KASUS PENYEDIA LAYANAN LOW COST CARRIER (LCC) MASKAPAI LION AIR)

2019 ◽  
Vol 2 (2) ◽  
pp. 1001
Author(s):  
Nava Aprilda Wati ◽  
A.M. Tri Anggraini
Keyword(s):  
Low Cost ◽  
Air Transport ◽  
High Increase ◽  
Transport Services ◽  
Consumer Rights ◽  
Expert Interview ◽  
Low Cost Carrier ◽  
Ticket Prices ◽  
Lower Limits ◽  
Very High

In early 2019 there was a very high increase in ticket prices. Ticket prices for domestic routes in Indonesia have not gone down, which is a complaint of consumers and make complaints to government agencies such as BPKN and YLKI. However, this has become the spotlight of the Minister of Transportation, raising the lower limit tariff, but this is actually considered ineffective because it can only protect airlines. This is considered to have violated consumer rights as stipulated in the UUPK. The issue of how the regulations and government policies in terms of tariff determination from the perspective of consumer protection and how the protection of consumer rights regarding the imposition of upper and lower limits of air transport services based on Law No. 8 of 1999. The author conducts research in this issue using normative methods supported by expert interview data. The author analyzes that this problem violates the consumer rights of Article 4 regulated by UUPK and analyzes from the Minister of Transportation Regulation PM 20 of 2019 concerning Procedures and Formulation of Calculation of Tariff Limit for Passengers in Economy Class Services for Scheduled Domestic Commercial Air Transport and Minister of Transportation Decree KM 106 of 2019 concerning the Tariff Limit on Passengers of Economy Class Scheduled Domestic Commercial Air Transport Services. The suggestion that can be given by the writer is that the ministry of transportation should oversee airlines in determining tariffs and services to remain balanced and not to the detriment of consumers.

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.

scholarly journals Pengaruh Service Quality, Customer Satisfaction, dan Brand Trust di Mediasi Oleh Customer Commitment Terhadap Customer Loyalty Penumpang Maskapai Low Cost Carrier Di Bali

2018 ◽  
Vol 1 (2) ◽  
Author(s):  
Dewa ayu Alit Lakhsmidevy
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Low Cost ◽  
Operating Cost ◽  
Brand Trust ◽  
Customer Commitment ◽  
Low Cost Carriers ◽  
Low Cost Carrier ◽  
Total Indirect Effect

Kebutuhan masyarakat Indonesia atas layanan transportasi terus meningkat sesuai dengan meningkatnya pembangunan nasional. Jenis layanan transportasi udara juga terus berkembang, salah satu adalah dengan beroperasinya model penerbangan unik yaitu melalui strategi penurunan operating cost di semua lini yang mengakibatkan harga tiket dapat ditekan. Model penerbangan ini disebut low cost carrier (LCC). Kepuasan konsumen terhadap pelayanan yang diberikan oleh maskapai penerbangan di Indonesia sangat berpengaruh terhadap seberapa besar tingkat kualitas pelayanan dari sebuah maskapai penerbangan. Berbagai pelayanan yang mempengaruhi, kepuasan konsumen adalah keramahan seluruh awak kabin, fasilitas fisik yang ada, tarif penerbangan, ketepatan waktu keberangkatan kemudahan akses dan juga keselamatan penerbangan. Berdasarkan jajak pendapat dari 2.674 orang responden mengenai apa yang diinginkan dari sebuah maskapai penerbangan didapatkan hasil sebanyak 9,6% menginginkan pelayanan ramah dari awak kabin, 16,9% penerbangan yang tepat waktu, armada yang baru 18,3%, 55,2% tarif yang murah (Indopos. 2015). Maskapai penerbangan di Indonesia sering mengalami keterlambatan waktu pada saat akan terbang atau dengan kata lain sering mengalami delay. Salah satu maskapai penerbangan di Indonesia yang sering mengalami keterlambatan dalam pemberangkatan pesawat adalah penerbangan low cost carriers. Secara garis besar tujuan penelitian ini adalah : menguji pengaruh service quality, customer satisfaction, brand trust terhadap costumer commitment serta dampaknya kepada customer loyalty pada penerbangan domestik maskapai low cost carrier di Bandara Internasional Ngurah Rai, Bali. Dengan unit observasi sebanyak 250 responden yang terdiri dari beberapa kriteria responden. Metode penelitian adalah explanatory survey. Hasil pengujian menunjukkan total indirect effect paling tinggi adalah pengaruh service quality terhadap customer loyalty dengan nilai t value sebesar 4,074, selanjutnya service quality terhadap customer commitment dengan nilai t value sebesar 3,243 di ikuti dengan sisa variabel lainnya. Hasil ini menunjukkan bahwa service quality merupakan variabel yang mendominasi pada hasil penelitian yang dilakukan. Semakin baik service quality yang diberikan maskapai kepada penumpang maka akan meninggkatkan komitmen penumpang dan selanjutnya akan menggiring penumapng untuk semakin loyal kepada maskapai.

Influence of Brand Personality on Repurchase of LCC Airlines

2017 ◽  
Vol 6 (10) ◽  
pp. 99
Author(s):  
Yoon-Hee Hong ◽  
Seong-Woo Choi
Keyword(s):  
Service Quality ◽  
Low Cost ◽  
Brand Personality ◽  
Advanced Technology ◽  
Air Transport ◽  
Strategic Marketing ◽  
Brand Strategy ◽  
Single Word ◽  
Low Cost Carrier ◽  
The Relationship

Nowadays, many people live with SNS, showing their own lives to others and sharing ideas throughout the day. Thanks to the advanced technology, they need less time than ever to acquire information by using hashtag and only a single word and have no difficulties predicting others’ preferences and propensity to consume. Previous research results indicate that people having similar tendencies tend to similar kinds of brand products.The recent increase on the number of LCC(low-cost carrier) airlines has accelerated the competition in the air transport market, which makes airline companies introduce and apply a new brand strategy to their marketing. However, LCC airliners do not seem to differentiate themselves in their service quality and air-fare, in which circumstances it is not easy to attract new consumers.This paper is to suggest a new strategic marketing of LCC airliners by doing some research on the relationship between domestic LCC companies’ brand tendency and consumers’ recurring purchasing.

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