| Summary: | 碩士 === 大同大學 === 事業經營學系(所) === 102 === From the geologically position, Taiwan island is located on the southeast rim of Asia Continent along the side of west Pacific region, within this region, airplane route between northeast and southeast Asia intersect on Taiwan, this provide the best environment for developing air travel related business. According to the statistics of CAPA of Asia in 2013, Taoyuan Airport of Taiwan numbered the 10th airport on North Asia region of air-traveled customers. This provide a great potential market growth on aviation industry locally.
With the advantage mentioned above, many foreign-owned airline companies established their representative offices in Taiwan to develop the market on low-cost carrier business and these in return benefiting the customers in Taiwan with more options to select. Up to 2013, Taiwan does not have any locally owned airline companies provide low-cost carrier options for the market, the purpose of this study is to study the business models of foreign-owned low-cost carrier airlines hence to provide a more competitive strategy for local airline companies to compete in this section.
Based on my study, statistics from ICAO shows 49% of the low-cost airlines world-wide were terminated due to the management problems, among those failed ones, 51% of them were closed within five years. Above information indicated the importance of applying the correct strategy and operation management is critical to the sustainability of the business.
There are many papers been published on low-cost airlines strategy, most of them are focused on the willingness and likeness of the customers from the US and European based airlines; also some studies focused on southeast Asia airlines companies, but missed on north Asia airlines section. With the background of the above, this paper pick the north Asia airlines as the target group to study low-cost airlines strategy. My study uses the low-cost airlines of Korea as the target, they are Easter Jet、Jeju Air、Jin Air and T’way Airline, based on materials and case study information, focused on the operation management study, process control, cost reduction methods and innovation development. This research also included academic studies for business models, low-cost airlines strategies for data analysis, also evaluate the value chain and market section study concluded into charts and summary. With this study, hopefully to provide a more clear pictures for local airlines companies to develop our own local Taiwan low-cost airlines market strategy.
My study shows that ticket price is not the main factor for this market section, with more competitive airlines joined this market, to meet customer satisfaction; innovations on the service, access convenience, creating unique brand positioning and marketing segmentation becomes more important for being successful in this business.
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