Journal of the Korean Society for Aviation and Aeronautics (한국항공운항학회지)

The Korean Society for Aviation and Aeronautics (한국항공운항학회)
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A Case Study of Oversea's Low Cost Carrier Terminal (LCCT) for Hub Network Competitiveness

허브경쟁력 강화를 위한 해외 저가항공사 터미널(LCCT) 활용 사례연구

  • 황성연 (한국항공대학교 항공경영학과) ;
  • 김종현 (인천국제공항공사 해외사업처) ;
  • 박성식 (한국교통대학교 항공운항학과) ;
  • 김기웅 (한국항공대학교 경영학과)
  • Received : 2014.10.13
  • Accepted : 2014.10.29
  • Published : 2014.12.31
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Abstract

Low Cost Carrier(LCC)s in Asia Pacific market are expected to record high growth due to the expansion of Open Sky Policy among Korea, Japan, China and South East Asia. As everybody is aware of, LCC is not only saving flight cost but also creates differentiating business model by reducing unnecessary services such as F&B and in-flight duty free sales services. Booming LCCs in Asian market will cause not only Incheon airport but also other local airports in Korea to compete heavily to attract LCCs. For example, Air Asia Group with more than 200 fleet has expanded its alliance network throughout Asia. Therefore this paper has researched a new business model operating a LCC terminal for the hub airport competitiveness. According to analysis result of case study, it was found out, considering increasing airline demand next decade, Incheon airport and other domestic airports in Korea had better change an existing terminal into a LCC Terminal(LCCT) to differentiate airport services and expand its hub network. That is because of economic feasibility, first of all, of securing hub and spoke networking capabilities with airlines and finally of developing commercial facilities customizing LCC passengers' demand.

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References

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