Abstract
<p><em>The airline industry is characterized by a number of business models with the most prominent being the Full Service Network Carriers (FSNC) and Low Cost Carriers (LCC) models. The main difference between full service network carriers and low cost carriers is how the airline companies operation their revenue and cost.</em></p><p><em>The advanced developments in telecommunications, air pollutions and the competition of high rail are three new challenges for the airline industry globally while an increasing passengers and the government policies are two big issues for Asia/Pacific regional airline companies. The fuel price and human-related costs are two big issues affecting the company’s cost. Code-sharing and advertising are two possibly ways in increasing company’s revenue, cutting down the fuel cost, advertising costs, controlling the human cost and cooperating with airports are four possibly ways in reducing company’s cost.</em></p>
Highlights
In 2017 the world’s airlines carried around 3.2 billion passengers
This paper reports on a study that investigate and identifies the revenue and cost structures of both full service network and low cost carriers, the challenges by the airline industry globally as well as within the Asia/Pacific region, identifies some key factors affecting revenue and costs with the Asia/Pacific regional airline market, discusses some of the approaches taken to maximize revenues and reduce costs and selects Singapore airlines as an example in analyzing its revenues and cost structures
The Revenue and Cost Structures of Full Service Network Carriers and Low Carriers The revenue-generating ability of an airline depends on many factors (Radnoti, 2002, p. 11)
Summary
In 2017 the world’s airlines carried around 3.2 billion passengers. The industry is characterized by a number of business models with the most prominent being the full service network and low cost carriers models. This paper reports on a study that investigate and identifies the revenue and cost structures of both full service network and low cost carriers, the challenges by the airline industry globally as well as within the Asia/Pacific region, identifies some key factors affecting revenue and costs with the Asia/Pacific regional airline market, discusses some of the approaches taken to maximize revenues and reduce costs and selects Singapore airlines as an example in analyzing its revenues and cost structures
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
