The Southwest Airlines created the low-cost airline business model in 1970s, after aviation liberalization and opening up policies in the U.S. and European, the booming of low-cost airlines. This makes the people who didn¡¦t use aircraft in the past began to take air travel. Many secondary airports in the area caused the travelers a lot of growth by low-cost airlines flight, and promote the region¡¦s tourism, economy and employment opportunities. In view of this, started the study idea of the influence of low-cost carriers on air travel related industry in Taiwan. The Asia¡¦s largest low-cost airline ¡V AirAsia is the subject of this study. Historical data on the low-cost carriers business were collected. Questions for conducting in-depth interviews with experts in air travel industries were devised from the study of these historical data. In addition, a survey of government¡¦s air, tourism data, the influence of low-cost carriers on air travel related industry was developed finally. The results show, the AirAsia to open Taipei route, on the Taoyuan International Airport, retail, hotels and other travel related industries have brought real benefits. The home base of AirAsia is Malaysia, which people came to Taiwan to engage in substantial growth in tourist numbers and to create a substantial growth in tourism foreign exchange earnings. Finally, the results of this study were compared with historical data. It is hope that the results would be able to provide any other countries planning to develop low-cost carriers, some practical reference in planning their air and tourism industries strategies.

This study attempted to establish the travel behaviours and choice criteria of the South African domestic air passenger and how they differed between low-cost carriers (LCCs) and full-service carriers (FSCs). The study was quantitative and used structured questionnaires to collect data via personal interviews. Descriptive and inferential techniques were used to analyse the data, including a binomial logistic regression to identify predictors of model choice. Analysis This study attempted to establish the travel behaviours and choice criteria of the South African domestic air passenger and how they differed between low-cost carriers (LCCs) and full-service carriers (FSCs). The study was quantitative and used structured questionnaires to collect data via personal interviews. Descriptive and inferential techniques were used to analyse the data, including a binomial logistic regression to identify predictors of model choice. Analysis showed that passengers had a limited understanding of the functioning of the models. This results in consumer perceptions and expectations being discordant with the true differences. In distinguishing between models, LCC passengers rate LCCs more favourably than FSC passengers, but both rate FSCs higher than LCCs. This shows the need of consumers to have the features and services of the FSCs. Amongst the key findings was the absolute importance of price to the passengers on both models when purchasing the ticket. The analysis showed that LCC passengers are highly price sensitive and show loyalty to the lowest price (not airline model). It was apparent that frequent flyer programmes (FFP), or linkages to 3rd party loyalty programmes, for LCCs need to be reconsidered. Younger LCC passengers especially, indicated a need for a simple FFP to receive some form of ‘reward’, as well as benefits traditionally only offered by FSCs. FSC passengers show a greater degree of loyalty and less fare sensitivity. This provides the FSCs with a degree of fare flexibility and the opportunity to move their loyal, less price-sensitive consumers up the price curve to maximise revenue. It was shown that, in distinguishing themselves from FSCs, it is important that LCCs are perceived as being more affordable than FSCs and are offering a value-for-money service. In essence, LCCs have to defend their positioning by (i) ensuring that their fares are not perceived to be as high as a FSCs and (ii) watching that the FSC fares are not declining to a level where FSCs are perceived as being as cheap as a LCC. For LCCs, brand building strategies around issues other than fare need to be devised, with attention paid to identifying determinant factors. / Business Management / D. Com (Business Management)