Formation of South Korea's Low Cost Carriers and Development Stratgies

摘要

Significant changes have been made in recent years in South Korea's airrntransportation industry as new low fare carries emerge into the domesticrnmarket such as Hansung Airlines and Jeju Air. Authorities remainrnskeptical of the future growth of these low cost carries due to frequentrnaccidents as well as financial deficits. This paper investigates whether arndistinction exists between Korea's new emerging low cost carries andrnthat of staple airlines in Korea's transforming airline transportationrnmarket, reviews new business models for the supply of domestic airrnservices in Korea. This paper contributes to the continued growth andrndevelopment of Korea's domestic airline industry by suggesting newrnstrategies needed for proper future development of this growing andrnchanging market. This study utilized the methods of descriptive analysisrnand the analysis of the patterns of technological acquisition. Nichernmarketing tactics were examined by way of interviews with airlinernindustry firms, government officials, governmental research institutes, asrnwell as airline industry research institutes.