Yes / Low cost carriers (budget airlines) have a significant share of the air travel market, but little research has been done to understand the distributional effect of their operation on key tourism indicators such as length of stay and expenditure. Using data on European visitors to the United Kingdom we demonstrate how counterfactual decompositions can inform us of the true impact of mode of travel. Passengers on low cost carriers tend to spend less, particularly at the upper end of the distribution. Budget airline users typically stay longer, though differences in characteristics of observed groups are important to this result. Counterfactual techniques provide additional valuable insights not obtained from conventional econometric models used in the literature. Illustrating an application of the methodology to policy we demonstrate that enabling respondents to extend their stay generates the greatest additional expenditure at the lower end of the distribution. We also show nationality is a significant characteristic, with important impacts across the expenditure distribution.

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.

While 3.3 billion people flew worldwide in 2014 a large number of these were from developed countries. It is emerging countries which offer the greatest potential for future air traffic growth, with forecasts suggesting that 7.3 billion people will fly by 2034. The greatest proportion of this traffic will be in the Asia-Pacific region where there is already high low-cost carrier penetration. Given increasing price-based competition within short-haul markets, there are many significant challenges in terms of how Asian network airlines respond to LCC competition, and a popular response is the use of low-cost subsidiaries. Thus, the aims of this research are to establish the sources of competitive advantage of Asian airlines generally, and to examine the competitive responses of Asian network airlines and the strategic capabilities of them in competing with low-cost carriers, with a particular focus upon the use of low-cost subsidiaries. This research is underpinned with competitive advantage theory, particularly the resource-based view which concerns the internal environment of firms where each firm possesses a collection of unique resources and capabilities that provide the foundation for competitive strategy. For this research, data were collected from 49 senior airline management personnel using questionnaire surveys, resource surveys, and semi-structured interviews. The data were then analysed using VRIN analysis, the importance and difficulty of 37 competitive responses, strategic capability analysis, and the product and organisational architecture model. The results found that both a strong strategy and stable leadership are crucial. The strategies of Asian network airlines must be flexible to respond appropriately to competitive threats as they materialise, with this responsiveness contributing to the attainment of competitive advantage. Out of an analysed 36 intangible resources, the top resources for competitive advantage and responding to competitive threats for Asian airlines generally are slots, brand, and product and service reputation, with the importance of these based more on being hard to copy than valuable. Each analysed airline business model has a relatively distinct core bundle of intangible resources which explains the internal sources of their competitive advantage. The need for Asian network airlines to strengthen their competitive advantage and their ability to compete is because low-cost carriers impact them in many ways, most notably through a reduction in market share and reduced yields given the key motivation of customers within short-haul markets and economy class is now price and value-for-money. Asian network airlines are most likely to respond to low-cost carriers if they focus upon their core markets, grow their market share, and target the core higher-yielding passengers on which network airlines rely. In such instances, Asian network airlines should respond by focusing more on their brands and meeting the needs of their core targeted market segments. There is a strong positive correlation between profit margin and the strategic capability to compete with low-cost carriers. Yet, Asian network airlines have relatively weak capabilities overall. While Vietnam Airlines, Malaysia Airlines, and Garuda Indonesia are reasonably well placed to compete, network airlines from Northeast Asia, in particular, must strengthen their capabilities especially as Japan, China, and Taiwan are witnessing fast low-cost carrier growth. However, the possession of a strong capability does not mean it is fully or properly leveraged. To compete more effectively with low-cost carriers, the most important competitive responses, based upon analysis of 37 responses, are the ability of management to quickly introduce changes, leveraging brand strength, and increasing aircraft utilisation. Based on the relationship between the importance and difficulty of responses, the most crucial responses for competitive advantage of Asian network airlines are reducing costs to within 30% of LCCs and increasing aircraft utilisation. If achieved, these should lead to meaningful sustained advantage. Low-cost subsidiaries are easier to implement than for network airlines to significantly reduce costs, change to one fleet, or reduce the use of direct distribution, which may explain their popularity within Asia and them being a borderline very essential competitive response. For network airlines, low-cost subsidiaries are a more effective way to compete with low-cost carriers, to participate in the growth of the budget segment, a means of operating uneconomic routes, and to remove unprofitable customers. Network airlines can then focus upon their core market segments and their core competencies. However, their creation is reactive and not proactive which undermines their effectiveness, likewise that low-cost subsidiaries suffer from poor profitability, higher costs, and much smaller size and scale than their key low-cost competitors. This research recommends that Asian network airlines strengthen their existing and primary sources of competitive advantage while pursuing new sources of advantage. While the strategic capabilities of Asian network airlines have strengthened over time, it is essential that they are further strengthened and fully acted upon given increasing competitiveness. The use of low-cost subsidiaries will continue, but it is crucial for themselves and their parent network airlines that they improve their ability to compete and thereby their performance.

Background: Since the airline deregulation was completed in 1997, a new business model has emerged in the European civil aviation industry. It has caused a shift in the way people travel within Europe. The airlines operating under this new business model known as point-to-point, have created a new outlet for commercial passenger travel and raised concerns for established flag carriers. Problem: This study is of great importance due to the fact that people are traveling more frequently and wish to do so quicker and more efficiently. With so many options to choose from and cost being an important decision maker for both companies and consumers, a study of this industry in terms of competition, price and service quality is of great impor-tance. Purpose: The purpose of this thesis is to investigate and describe whether or not changes in the competitive landscape of the European civil aviation industry are related to the movement of economy class prices. The thesis also looks at whether or not changes in the competitive landscape are related to changes in service quality in the same industry. Both flag-carriers and low-cost carriers in terms of their business models will be investigated. Method: The method chosen for this study was of an integrated approach based solely on secondary data due to the sheer size and scope of this industry. This study investigated the two major business models of this industry through routes to the major cities and capitals of Western Europe from Stockholm Arlanda airport and Stockholm Skavsta airport. A literature study coupled with a comparative analysis has also been done. Conclusions: Dramatic change is occurring in the industry. Competition is increasing not only between companies but between two competing business models. Increased competition is leading to better on-time performance but lower in-flight and ground service quality. Aggregate price level has risen for flag carries with the opposite happening for low-cost carriers. The increased competition is threatening the ill-performing flag carriers and will most likely transform the industry.

<p>Background: Since the airline deregulation was completed in 1997, a new business model has emerged in the European civil aviation industry. It has caused a shift in the way people travel within Europe. The airlines operating under this new business model known as point-to-point, have created a new outlet for commercial passenger travel and raised concerns for established flag carriers.</p><p>Problem: This study is of great importance due to the fact that people are traveling more frequently and wish to do so quicker and more efficiently. With so many options to choose from and cost being an important decision maker for both companies and consumers, a study of this industry in terms of competition, price and service quality is of great impor-tance.</p><p>Purpose: The purpose of this thesis is to investigate and describe whether or not changes in the competitive landscape of the European civil aviation industry are related to the movement of economy class prices. The thesis also looks at whether or not changes in the competitive landscape are related to changes in service quality in the same industry. Both flag-carriers and low-cost carriers in terms of their business models will be investigated.</p><p>Method: The method chosen for this study was of an integrated approach based solely on secondary data due to the sheer size and scope of this industry. This study investigated the two major business models of this industry through routes to the major cities and capitals of Western Europe from Stockholm Arlanda airport and Stockholm Skavsta airport. A literature study coupled with a comparative analysis has also been done.</p><p>Conclusions: Dramatic change is occurring in the industry. Competition is increasing not only between companies but between two competing business models. Increased competition is leading to better on-time performance but lower in-flight and ground service quality. Aggregate price level has risen for flag carries with the opposite happening for low-cost carriers. The increased competition is threatening the ill-performing flag carriers and will most likely transform the industry.</p>

abstract: In 2004 the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia joined the European Union (EU) as part of the EU's greatest enlargement to date. These countries were followed by Bulgaria and Romania in 2007. One benefit of joining the EU was the freedom for residents in the new EU member states to migrate to western European nations, notably the United Kingdom (UK). A result of this new freedom was an increased need for air travel. The intersection of the expansion of the EU with the introduction of low-cost airline service was the topic addressed in this study. Yearly traffic statistics obtained from the UK Civil Aviation Authority were used to formulate a trend line of passenger volume growth from 1990 to 2003. Through a time series regression analysis, a confidence interval was calculated that established that, beginning with the year 2004, passenger volumes exceeded the probable margin of error, despite flat population growth. Low-cost carriers responded to these market conditions through the introduction of new flights across the region. These carriers modeled themselves after Southwest Airlines, a strategy that appeared to be more effective at meeting the needs of the post-accession travel boom. The result was a dramatic rise in both passenger volumes and low-cost airline routes in an east-west direction across the continent. / Dissertation/Thesis / M.S.Tech Technology 2012

No description available.

This thesis is divided into 5 chapters. In the fist chapter is generally described marketing of services and contemporary situation of air transport on the Czech market. Next chapters discuss the history, SWOT analysis and marketing strategies of low cost carriers, Lufthansa and ČSA. In the last, fifth chapter, is accomplished the comparison of the above-mentioned airlines according to their marketing strategies and Skytrax Research and is forshown the future development.

Over the past 20 years, there were several low-cost airlines identified as the most successful airlines in Europe according to the number of transported passengers. Theoretical part of the thesis has several objectives. It is an analysis of the airlines success it selves as well as an analysis of their gradual development in low cost air travel within Europe and description of the low-cost aviation market in Europe in terms of the history and competitiveness. The practical part which is the main objective of the thesis is an overall analysis of the differences in business models of low-cost carriers and the impact of these differences on the development of their economic and operational performance.

台灣自1987年開放天空政策以來，各大小航空公司紛紛成立。低成本航空(LCC)也開始積極進入台灣市場。台灣與日本於2011年11月10簽屬日航空協定，此後，捷星(Jetstar)、樂桃(Peach)等低成本航空如雨後春筍般進入台灣，進而激起了許多低成本航空對於傳統航空(FSC)衝擊之討論。然而，低成本航在日本航載客率上是否真的對傳統航空造成影響？具體影響的程度為何？鮮有文獻深入探討。 本文針對大阪、成田、名古屋、琉球四條航線，透過敘述性統計、相關分析、多元迴歸分析之方法，將產業變數之、總體環境變數分別對華航、長榮載客率2011年至2016年之月資料進行分析。並進一步透過BCG矩陣歸納出兩家航空公司四條航線的成長率與市占率分布情形。 研究結果顯示，在日本四條航線上，低成本航空皆沒有與傳統航空載客率造成負向影響，反觀整體旅日市場上升，兩者市場區隔，形成二種經營型態共榮共存的局面。攸關日本線最顯著之變數為淡旺季、次者為消費者信心指數。在BCG矩陣研究結果顯示，中華航空四條航線市場占有率高、成長率低的情形；長榮航空相對市場佔有率低於中華航空，但是大阪線與琉球線的成長率卻高。 根據研究結果，分別對中華航空、長榮航空四條航線上提出各項建議，供航空業者、相關研究人員未來研究之參考。 / Since Taiwan agreed to initiate its Open-skies Policy in 1987, various airline companies began to form, including low-cost carriers (LCC) which eagerly entered Taiwanese markets. Taiwan and Japan reached aviation agreements on November 10, 2011; many LCCs such as Jetstar and Peach emerged as rising competitors in Taiwan, sparking a discussion about their impact on other full-service carriers (FSC). Do LCCs really pose a threat to FSCs in air travel between the two countries? To what extent do they affect those companies? Few sources have explored in detail. This research focuses on four destinations - Osaka, Tokyo Narita, Nagoya and Okinawa - based on descriptive statistics, correlation analysis and multiple regression analysis (MRA), while taking a close look at marketing and overall environmental factors in travel data between China Airlines and EVA Air (2011-2016, monthly). The growth and market share distributions of these four routes, operated by both companies, can be furthermore described using BCG matrices. The research concludes that, with respect to these four Japanese travel routes, LCCs did not create a negative impact on FSCs. Increasing traffic between Taiwan and Japan, in fact, facilitated prosper coexistence between the two types of carriers. Among the most significant factors are peak and low seasons, in addition to consumer confidence. BCG matrix analyses indicate that China Airlines had greater market shares and smaller growth rates; although EVA Air possessed fewer market shares than China Airlines, their Osaka and Okinawa routes grew at a rapid rate. The results of these observations may serve as suggestions to China Airlines and EVA Air, as well as references for aviation professionals and future researchers.