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Trans. Planning Journal
| Title | A STUDY ON INTERNATIONAL AIRLINE CHOICE BEHAVIOR BETWEEN LCC AND FSC－FROM TAIPEI TO SINGAPORE |
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| Author | Cheng-Min Feng, Chien-Yun Yuan, Yi-Chen Lin |
| Summary | Due to the rapid growth of international air travel demand in Taiwan, the competition between airlines has become more intense. In order to increase the load factor on flights, the airlines all actively provide a number of competitive strategies. These strategies, to name a few, include incentive pricing, convenient flight arrangement, flight safety, and priority services worldwide. Low Cost Carriers (LCCs) have joined the airline business and have had a significant impact on the airline market in the past decades. LCCs offer passengers much cheaper air fares compared to Full Service Carriers (FSCs). In response to this low-price competition provided by LCCs, many FSCs have offered differential prices, however the seats provided are still rather limited. Therefore, passenger airline choice behavior between LCCs and FSCs began to change after LCCs entered the market. At present, the only LCC in Taiwan is JetStar Asia which joined the Taipei-Singapore route in late 2004. To study the effects of this LCC on passenger airline choice behavior from Taipei to Singapore, passengers taking JetStar, Singapore Airline, China Airline and Eva Air were randomly surveyed by using questionnaires to collect their choice behavior and related information. A Mixed Logit Model is applied to investigate important factors which influence choice behavior, as well as the taste variation and heterogeneity between individuals and airlines. Finally, elasticity and sensitivity analyses are conduced to find how important variables, price, and level of service, affect market shares of these four airlines. |
| Vol. | 36 |
| No. | 3 |
| Page | 307 |
| Year | 2007 |
| Month | 9 |
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