Evolving competition between low-cost carriers and full-service carriers: The case of South Korea. (January 2019) - Khan, Nokhaiz Tariq
Abstract: This study explores the impact of domestic low-cost carriers (LCCs) on regional tourism and aviation industries. In particular, it articulates the changing competitive dynamics between LCCs and full-service carriers (FSCs). The Lotka-Volterra (LV) model, utilising the newly proposed moving-window concept, is used for the assessment of the influence of LCCs on the South Korean and airline industry. Analysis results demonstrate that the competitive dynamics between LCCs and FSCs are not static and have evolved over time. The study proposes an efficient and effective change analysis and enables strategic planning for aviation industries. Highlights: The competitive dynamics between low-cost carriers and full-service carriers in South Korean aviation industry are analysed. Lotka-Volterra model is utilized in assessing the role of low-cost carriers in expanding aviation and tourism markets. A comparison is made between leisure and business route considering the role of low-cost carriers. A " moving window " Lotka-Volterra analysis is applied.