Summary: | 碩士 === 中華科技大學 === 航空運輸研究所在職專班 === 102 === This case details the raise and expansion of Low-cost Carrier has been operating with great success in Europe, America etc. for several years. In the 21st century, a model in the face of increasing Low-cost Carrier has established in Asian countries. With the growing prominence of AirAsia in Malaysia, there are a lot of low-cost carriers followed the successful applications and models, operating through 13 main stream airlines amid Taipei and each majority of Asia cities. In this way, the working model of traditional airline in domestic airlines must be faced the market turbulence and challenges. China Spring Airline expanded to Taiwan and knocked the fierce competition between Taiwan and China in the October of 2013.
The cross straight of route network has been grown dramatically, 223,000 flights and 35440, 000 carriage of passenger is sustainable growth. The study documents “Case Study of Competitive Strategy of LCC” and discusses its approach towards successful applications and models, examining from global low-cost airlines business models. This dissertation follows a case-study design, with in-depth analysis of relevant literature for Low-cost Carrier’s industry to conduct research and evaluation based on secondary data collection. The essay aims to conclude the findings are to illustrate some of the ways in which low-cost Carrier successful applications and business strategy come together.
1. Utilize China high-speed rail’s network and strive for its hub services and then build multi-transportation system.
2. Take an competitive advantage of Taiwan’s geographic location to facilitate “ the hub-and-spoke system” to link by frequent service using larger aircraft, with smaller, nearby airports connected to the hubs by shorter routes using smaller aircraft.
3. Offer no-frills flights to keep security, simplicity, and minimal service beyond a low threshold for cost-saving measure.
4. To avoid the conflict between LCC strategy and normal working model, LCC airport should be established to fulfill LCC market. Intensification of higher punctuality rate and usage rate can lead to enhance highly efficient cost structures.
Keywords: Low-cost Carrier, Cross-strait direct, Case study
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