Low-cost Carriers Research Articles

The Liberalisation of Air Transport and the Impacts on Travel and Tourism: The Case of the Azores Archipelago

This paper intends to fill a gap by analysing the changes wrought by full air liberalisation and its impacts on travel and tourism in the Azores archipelago. This study examines the Tourism Planning Plan of the Autonomous Region of the Azores (POTRAA), the new air transport model and several statistics related to air transport and tourism dynamics before and after the liberalisation, which took place in 2015. Time series analyses were used, and the period under analysis was defined (2013–2022). The results show that the entry of low-cost carriers (LCCs) resulted in flag carriers having to change to keep being competitive. Furthermore, a more extensive exposure of the destination through the LCCs created opportunities for all airlines. The results directly related to tourism include tourist numbers increasing in inter-island, national, and international flights, new routes opening to Europe and the USA, higher accommodation occupancy, and market diversification.

저비용 항공사(LCC)의 SNS 마케팅이 브랜드 이미지와 관계지속의도에 미치는 영향

The purpose of this study was to verify the effects of SNS marketing on brand image and relationship continuation intention through consumers who experienced low cost carriers SNS marketing in the situation where the competition is intensifying and the influence of SNS is growing. The results are as below. First, SNS marketing of Low Cost Carriers had a positive effect on brand image. It means that the use of the SNS marketing Characteristics which are information, interactivity, and multimedia properties affect brand image. Second, SNS marketing of low cost carrier has a positive effect on relationship continuation intention. Especially the interactivity has a significant effect on relationship continuation intention, which means that the interaction through SNS marketing is important. Third, brand image was found to have a statistically significant effect on relationship continuation intention. This study raises the necessity for a marketing strategy with effective marketing tools and competitivenes, in which low-cost carriers respond to trends and customers needs by using SNS marketing in a rapidly changing aviation industry environment.

An experimental study of ammonia decomposition rates over cheap metal catalysts for solid oxide fuel cell anode

Solid oxide fuel cell (SOFC) is an electrochemical device for power generation with high efficiency and low emission. Ammonia is a low-cost and carbon-free hydrogen carrier that can be directly used as a fuel for SOFC. To further improve the performance and stability of SOFC fueled by ammonia (NH3–SOFC), the design of NH3–SOFC anode for efficient and stable utilization of NH3 is critical. In this paper, the decomposition rates of NH3 over four kinds of cheap metal catalysts (nickel, iron, copper and 304 stainless steel) were tested based on metal flakes with known fixed dimensions, and the empirical correlations of the decomposition rate over different catalysts were derived. These correlations are independent of catalyst structure parameters and only related to the catalyst material and the decomposition temperature, which are important basis for realizing the oriented design of NH3–SOFC anode.

ANTI-CRISIS MARKETING IN THE SYSTEM OF FORMING AIRPORT`S COMPETITIVE STRATEGY

Goal. Research of anti-crisis marketing in the system of formation airport`s competitive strategy in the conditions of dynamic changes of the air transportations market. Method. To achieve this goal used a wide range of general and special methods of scientific knowledge: scientific abstraction, deduction, analysis and synthesis to determine the place of anti-crisis marketing in the system of formation airport`s competitive strategy. Results. The key factors influencing the formation of the airport 's competitive strategy are studied. The peculiarities of the airports` activity in different segments of the air transportation market are determined, indicating the need to give priority to the diversification of services before operating in certain market segments. The importance of having a developed infrastructure to ensure the competitiveness of services provided by a concrete airport is determined. The expediency of airports` cooperation with low-cost carriers in the context of forming a competitive strategy is determined. The importance of integrating the "experience" strategy into the overall competitive strategy of the airport in order to form a unique image is emphasized. It is established that it is impossible to develop a universal competitive strategy, which may be the use by airports of different forms of ownership due to a number of differences in the conditions of their activities. It is offered to structure means of anti-crisis marketing in relation to stages of anti-crisis management development. An algorithm for the use of anti-crisis marketing in the formation of an airport`s competitive strategy has been developed. Scientific novelty. The necessity of anti-crisis marketing algorithm development and application it in the formation of the airport`s competitive strategy for maintenance of intensification its exit from crisis situations and preservation of competitive advantages is theoretically substantiated. Practical significance. The formulated and proposed results and practical conclusions of the article are that the proposed algorithm of applying anti-crisis marketing in the formation of the airport`s competitive strategy can be adapted to analyze the operation of a particular airport in pre-crisis or crisis state, in order to minimize the negative consequences and speed up the exit from the crisis, to promote the preservation of competitive advantages.

Price reaction in New Zealand’s duopolistic airline market

This study investigates the price reaction in a duopolistic market where two airlines (a full-service and a low-cost carrier) dominate the domestic aviation market. Utilising a rich dataset of 53,463 matched airfares for Air New Zealand and Jetstar in New Zealand from September to December 2019, we found a U-shaped relationship (from Jetstar to Air New Zealand) and an inverted U-shaped relationship (from Air New Zealand to Jetstar) between the two airfares. While distinguishing their different business models, such behaviour has not been empirically discussed in the literature. This study can be extended to larger and more complex markets.

Sustainable Development Strategy of Low-Cost Airlines: Empirical Evidence for Indonesia Based on Analysis of Passenger Loyalty

The rapid progress in the competitive business environment has increased customer expectations and demands, thus leading to a situation where many companies are competing fiercely, especially low-cost airline companies or low-cost carriers (LCCs). The company carries out a strategy of providing satisfaction for its passengers to generate great loyalty. The purpose of this study is to find out what factors can affect passenger loyalty, such as service quality (SQ), price (P), customer satisfaction (S), and perceived value (PV) on LCC airlines in Indonesia. This study used quantitative methods through surveys which were conducted on 313 respondents in Indonesian, via online questionnaire data collection in July–August 2021. To test the relationship between variables, this study used statistical analysis with LISREL structural equation modelling (SEM). The present study was conducted concerning LCC companies in Indonesia and refers only to Indonesian consumers. There are 7 hypotheses in this study, of which 4 hypotheses are confirmed and 3 are invalidated. Some results obtained show that, in this case and with reference to Indonesian consumers only for the substitution service offered by LCCs, we have to discuss atypical manifestations of consumer behaviour (good SQ does not necessarily lead to increased S and lower price does not necessarily lead to increased S, etc.). At the same time, this study shows that consumer loyalty remains the essential factor for the survival of LCCs in the market.

Airline brand image, passenger perceived value and loyalty towards full-service and low-cost carriers

Purpose This study aims to examine the mediating and moderating processes that link airline brand image to passenger loyalty through perceived value. Design/methodology/approach The research participants were Taiwanese passengers with experience travelling abroad by air. Structural equation modelling and multigroup analysis were used to investigate the effect of airline brand image and perceived value on the loyalty of passengers using full-service and low-cost carriers. Findings For both airline types, airline brand image had a significant and positive effect on passenger perceived value. Perceived value had a significant and positive effect on passenger loyalty, perceived value was a crucial mediator and airline type was not a key moderator in the model. Originality/value In this study, focusing on the perspective of Taiwanese passengers, a conceptual model of the factors that lead to passenger loyalty, with a focus on brand image, was developed. This paper contributes to the literature and application field by examining the mediating effect of perceived value and the moderating role of airline type in the aviation industry; on the basis of the results, potential recovery strategies for airlines in the post-COVID-19 era are provided.

PENGARUH PENERAPAN BAGASI BERBAYAR DI MASKAPAI WING AIR TERHADAP MINAT PENUMPANG DI BANDAR UDARA H. HASAN AROEBOESMAN NUSA TENGGARA TIMUR

Wings Air is one of the airlines operating in Indonesia. Wings Air (PT Wings Abadi) is a domestic airline based in Jakarta, Indonesia. Wings Air has won the trust of air transportation users with its Low cost Carrier and can accompany transportation users to routes that are not covered by other airlines. The purpose of this study was to determine the effect of the application of paid baggage at Wings Air on the interest of passengers at H.Hasan Aroeboesman Ende Airport.
 This study uses quantitative research methods. Data collection techniques used questionnaires and literature studies. The instrument used as a data collection tool was in the form of a questionnaire, for indirect interview and observation guidelines. Data analysis using Validity Test, Reliability Test, Hypothesis Testing, Simple Linear Regression, Coefficient of Determination.
 The results of this study indicate that Ha is accepted and Ho is rejected, which means that there is an effect of the application of paid baggage by Wings Air on the interest of H.Hasan Aroesboeman Ende Airport passengers, as evidenced by hypothesis testing, it is known that the value of t count > t table, namely 12.999> 1.98422 with sig. 0.000 < 0.05 . The percentage based on the coefficient of determination test is known that R square is 0.633, this means that the influence of the application of paid baggage for Wings Air on the interest of passengers at H.Hasan Aroesboeman Ende Airport is 63.3%.

A product and organisational architecture analysis of the performance of Southeast Asian airlines

In this study, the operating environment's attributes and its influence on the performance of airlines in Southeast Asia are assessed through a comprehensive literature review and performance analysis. As a first step, a Pareto Analysis is performed to assess the capacity contribution of registered airlines in the Southeast Asia region, totalling 65 in 2019. Then, seven of the largest Southeast Asian airlines, representing 80% of total capacity in the region, are taken forward into an in-depth benchmarking and Product and Organisational Architecture (POA) performance analysis. The research pinpoints key differences between Full-Service Carriers and Low-Cost Carriers in the region through a series of 13 metrics applied in the POA. It was found that the region's FSCs scored better at Product Architecture, which includes convenience, comfort and connectivity, whilst the LCCs strength was in the Organisational Structure component, namely fleet and labour productivity, sales and distribution, and airport attractiveness, especially in the case of AirAsia.

The Effect of Service Quality, Price Fairness and Corporate Image to Customer Retention Mediated by Customer Satisfaction on LowCost Carrier Airlines

This research aims to analyze the effect of service quality, price fairness, and corporate image on customer retention of low-cost carrier airlines mediated by customer satisfaction. The research was conducted by quantitative research and testing hypothesis with a purposive sample of low-cost airline passengers. A Google form was used to collect 203 responses, which were then analyzed using the Partial Least Square method of the Structural Equation Model from the Statistical Package for Social Science. The results of the study found that the effect of the independent variables on the dependent variable was as follows: Service quality to customers retention has no effect; Price fairness on customer retention has no effect; Corporate image on customer retention has no effect; customer satisfaction on customer retention has an effect. In addition, service quality, price fairness, and corporate image have effect on customer satisfaction. For the indirect hypothesis, service quality, price fairness, and corporate image influence on customer retention mediated by customer satisfaction were accepted. The research concluded that there are 3 hypothesis that have no effect and 7 hypothesis that have an effect consisting of 4 direct effects and 3 indirect effects. The implication of this research, there is the important rule of customer satisfaction as a mediating variable from service quality, price fairness, and corporate image to customer retention of low-cost carrier airlines. The placement of customer satisfaction as a full mediation variable on the research model became a Novelty in this study.

The Effect of Service Quality, Price Fairness and Corporate Image to Customer Retention Mediated by Customer Satisfaction on Low-Cost Carrier Airlines

The Effect of Service Quality, Price Fairness and Corporate Image to Customer Retention Mediated by Customer Satisfaction on Low-Cost Carrier Airlines

KUZEY KIBRIS TÜRK CUMHURİYETİ'NDEKİ DÜŞÜK MALİYETLİ TAŞIYICILARIN MÜŞTERİ HİZMET BEKLENTİLERİ VE HİZMET KALİTESİ ALGILARI ÜZERİNE KARŞILAŞTIRMALI BİR ARAŞTIRMA

Bu çalışma, KKTC'ye uçan havayollarının yolculara sunduğu hizmetleri yolcular açısından değerlendirmeyi amaçlamıştır. KKTC merkezli bir havayolunun olmaması, Türkiye merkezli Low Cost Carrier modeliyle uçan iki havayolunun pazara hakim olmasına neden olmuştur. Sektörde sadece bu iki havayolunun verdiği hizmetler baz alınarak bir değerlendirme yapılmış ve bu havayollarıyla uçuş tecrübesi olan 402 yolcuya anket uygulanmıştır. Ankette toplam 44 soru oluşturulmuş olup bu soruların 22'si hizmet beklentisini, diğer 22'si ise hizmet algısını ölçmek için tasarlanmıştır. Yolcuların hizmet beklentileri ve algıları Servqual Ölçeği yöntemi ile analiz edilmiştir. Elde edilen sonuca göre müşterilerin hizmet algısı müşteri beklentilerinin altında kalmıştır. Havayollarının müşteri memnuniyetini sağlayabilmesi için hizmet kalitesini gözden geçirmesi ve hizmet kalitesini artıracak önlemler alması gerekmektedir.
 
 
 This study aimed to evaluate the services offered to passengers by airlines flying to the TRNC in terms of passengers. The absence of an airline based in the TRNC has caused two airlines to dominate the market, flying with the Turkey-based Low Cost Carrier model. An evaluation was made on the basis of the services provided by only these two airlines in the sector, and a survey was conducted on 402 passengers who had flight experience with these airlines. In the survey 44 question were generated; 22 of these questions were designed to measure service expectation and the other 22 were designed to measure service perception. The service expectations and perceptions of the passengers were analyzed with the Servqual Scale method. According to the result, service perception of customers remained below customer expectations. Airlines need to review their service quality and take measures to improve service quality in order to make costumer satisfaction.

Thainess in airlines services strategy: a case from Thailand

The Thainess is embedded in Thais. And, it is more clearly can be seen when a person was cultivated in the school system. In this academic paper highlights the symbiosis of Thainess in hospitality industry, as such hotel comparatively to the air transport as strategy. The authors have studied researches, books, and airlines’ website strategies. Thainess is a unique customer experience offering, specifically the full-service airline “Thai Airways” as national flag carriers propose the service ‘Thai Touch’ through human six senses namely; seeing, smelling, savoring of teste, sounding, touching, and heartfelt feeling. While, Bangkok Airways represents the uniqueness of Thai culture symbiosis with products and services, such as airport terminal, aircraft decoration, and snack serving in all its lounges. On the other hand, low-cost carriers are commonly practicing the Thai culture in welcoming passengers as “wai”. Additionally, the low-cost carriers are presenting and blending their organizational culture in service, for instance fun, energetic, and friendly. Besides, low-cost airlines stress on price competition rather than Thainess. As an illustration, ThaiVietair excels on keen and dedicated workforces, prompt, reliable, and competitive price. As well as, Thai Lion Air presents the kebaya uniform which was originally from Indonesia.

How airline service post COVID-19 pandemic? Domestic LCC passenger perception in Indonesia

Domestic Low-Cost Carrier (LCC) airlines are the primary choice for travelers when traveling during the post-pandemic COVID-19. Indonesia is a country with quite a lot of flight routes with various LCC services. This research was conducted on domestic LCC services in Indonesia during the Post COVID-19 pandemic, completed in December 2022 and January 2023. Data were obtained using a questionnaire with 100 respondents using a Linkert scale. Analysis of the data was carried out using Importance Performance Analysis and Customer Satisfaction Index. The research results show exciting things. Based on the results of the CSI calculation, it is 74.72%. This result means that domestic LCC passengers consider the airline's service Fair. The results of mapping the level of importance and performance of domestic LCC obtained two attributes included in the main priority: Information to passengers in the event of a delay and maintenance and availability of cleaning facilities on the plane. In addition, the Convenience dimension is a priority that must be considered by domestic LCC airlines in Indonesia.

Enhancing air transport confidence in data security management

In the modern landscape of air travel, the confidence of passengers in the security of their data is paramount. This study delves into the intricate realm of data security management within the air transport industry which aims to identify areas of improvement and provide recommendations to strengthen data security management within the air transport industry especially low-cost carriers in Thailand. The findings of this research will provide valuable insights into the current state of data security management in the air transport industry. The findings not only shed light on the current state of confidence but also offer insights into potential avenues for enhancing data security measures. As air travel continues to digitized, understanding managing data security is necessary in order to maintain a robust and reliable air transport industry.

Ru-based monolithic catalysts for the catalytic oxidation of chlorinated volatile organic compounds.

A series of cordierite monolithic catalysts with Ru species supported on different available low-cost carriers were prepared and investigated for the elimination of CVOCs. The results suggest that the monolithic catalyst with Ru species supported on anatase TiO2 carrier with abundant acidic sites exhibited the desired catalytic activity for DCM oxidation with the T 90% value of 368 °C. In addition, a pseudo-boehmite sol used as binder was introduced into the preparation of the monolithic catalysts to further improve the adhesion between the powder catalysts and cordierite honeycomb carrier. The results suggest that although the T 50% and T 90% of the Ru/TiO2/PB/Cor shifted to higher temperature of 376 and 428 °C, the weight loss of the coating for the Ru/TiO2/PB/Cor catalyst was improved and decreased to 6.5 wt%. Also, the as-obtained Ru/TiO2/PB/Cor catalyst exhibited ideal catalytic properties for the abatement of ethyl acetate and ethanol, indicating that the catalyst can meet the demand for the treatment of actual multi-component industrial gas.

The Content Scope of Airline Sustainability Reporting According to the GRI Standards—An Assessment for Europe’s Five Largest Airline Groups

The aviation industry is facing pressure from stakeholders to transform towards greater sustainability. From a managerial and marketing perspective, not only the actual implementation and achievements of sustainability measures, but also their communication to stakeholders is likely to be crucial—and in many cases even legally required. This research evaluates the scope of sustainability and corporate social responsibility (CSR) reporting of Europe’s five largest airline groups for or from the year 2019, just prior the COVID-19 crisis. For this, dedicated sustainability reports and non-financial statements of Air France-KLM, easyJet, International Airlines Group, Lufthansa Group and Ryanair are evaluated and compared in a qualitative content analysis, using the Standards of the Global Reporting Initiative (GRI) as reference categories. The results indicate that the sustainability publications differ by airline business model, as the two low-cost carriers report less content in non-financial statements only, without publishing any standalone sustainability reports. Independent of the business model, most airlines surprisingly neglect the economic dimension of sustainability. The airline sector could improve its sustainability marketing by reporting both their economic, environmental, and social impacts and achievements.

Financial conditions and incumbent quality responses to entry: Evidence from airlines' on-time performance

This paper examines if and how incumbent firms may adjust their quality provisions in response to entry, with particular attention to the role of financial conditions. Data comes from the U.S. aviation industry where Southwest Airlines, a leading low-cost carrier, has actively entered a large number of routes in the past decades. Using on-time performance to proxy for service quality, I find robust evidence that financial pressure significantly affects the quality changes of incumbents. While incumbents in good financial health enhance quality when responding to entry, those experiencing financial distress exhibit a different tendency and deteriorate quality. These findings highlight the impact of financing on product market competition and shed light on why previous research has found mixed results regarding the link between competition and service quality in the airline industry.

Were Fleet Planning Problems Responsible for the Collapse of Thai Air Carriers?A Preliminary Case Study of One-Two-Go Airlines

The unprecedented growth of the Thai air transport sector that commenced in the early 2000s attracted at least 30 new air carriers into the country’s airline market. However, a substantial number of them went bankrupt even before the COVID-19 pandemic disrupted the world aviation industry. This study hypothesised that flawed fleet planning was behind the collapse of many carriers in Thailand. One-Two-Go Airlines, the “low-fare” carrier owned by Orient Thai Airlines, was used as a case study. The hypothesis was initially tested by evaluating whether the One-Two-Go fleet of aircraft was in line with the low-cost airline business model and aircraft selection principles commonly adopted by many low-cost carriers worldwide. The preliminary findings indicated that the way the airline planned, acquired, and managed its aircraft did not appear to be the key factor behind its collapse. Rather, a negative brand image derived from safety concerns after the crash of Flight 269 was a key factor causing the airline to cease operations

The Effect of Value for Money on Travel Anxiety and their Impact on the Behavioural Intention of Passengers Low-Cost Carrier Airlines

The purpose of this study was to analyze the mediation function of travel anxiety on the effect of value for money and service quality on the behavioral intention of passengers on low-cost carrier airlines Citilink and Lion Air. The population used in this study were passengers of low-cost carrier airlines entering Banda Aceh, namely Wings Air and Citilink. The sampling technique used is non-probability sampling with a convenience sampling approach. The respondents in this study were all passengers of low-cost carrier airlines entering Banda Aceh, namely Wings Air and Citilink. The number of sampling in this study is the multiplication of the number 5 with the number of existing indicators (Ferdinand 2010), namely 5 x 31 indicators = 155 people. Data processing is done using SPSS and Smart PLS software. Of the five direct influence hypotheses tested, namely the Effect of the Value of Money on Travel Anxiety, the Effect of the Value of Money on Behavioral Intention, the Effect of Travel Anxiety on Behavioral Intention, the Effect of Service Quality on Travel Anxiety, and Effect of Service Quality on Behavioral Intention, there is one that is not significant, namely the effect of Value for Money on Behavior Intention. The meaning is in encouraging someone to travel, even though in the case of Low-Cost Carrier it turns out that at the 5% alpha level the effect is not significant. But if we use 10% DF, then all direct hypotheses in this study have a significant effect. As for the indirect effect, the two hypotheses of the Effect of the Value of Money on Behavioral Intention through Travel Anxiety and the Effect of Service Quality on Behavioral Intention through Travel Anxiety, do not of them produce a significant effect. Only the influence of Service Quality on Behavioral Intention through Travel Anxiety is significant, although the role of travel anxiety in linking service quality variables to behavior intention is only a partial intervention.