| Summary: | 碩士 === 銘傳大學 === 管理學院高階經理碩士學程 === 93 === Taiwan High Speed Railway Corporation (THSRC) plans to have their traffic moving by the end of OCT. 2005. The impact of 30% loss is estimated to the domestic air carriers on the west coast routes by then. What the result could turn out to be between THSRC and Airliners after THSRC entering this battle? And should any plans making this battle turn into a win-win situation to decrease the loss and increase the most benefit for both can be a major subject to study.
Air carriers do provide consumers’ express, convenient services, but the costs are twice higher than the high-speed railway tickets, and flight schedule often changes accordingly to the weather factors. A survey indicates the ticket prices of high speed railway are commonly acceptable to the travelers, and surely also indicates the airlines industry will expect a drop of 50%-70% load on the route between Taipei-Taichung and Taipei-Chiayi, as well as 30%-50% drop of the route between Taipei-Tainan, 10%-30% drop between Taipei-Kaohsiung. Through the analysis of the game theory, the only merit of airlines is the time efficiency out of the weather factors and travel costs-especially on travel costs ( high speed railway tickets are TWD600-800/ one-way cheaper than airlines ticket) could easily turn customers to the better deals market meaning choose the high speed railway over airlines.
THRSC and Airliners have not yet release their price mark. The plan to win their customers over from the other side of market and still be able to make a profit will be low price tickets but small profit to the company. To against the low-price low-profit strategy that THRSC might use, the airlines should not have their ticket price any more than TWD500 to railway tickets in order to survive this battle especially on the route of Taipei-Kaohsiung. Airliners should negotiate a new strategy and come up with more aggressive plans that could secure the market in a long run.
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