저비용항공사 성장에 따른 항공관광 수요변화에 대한 실증분석 - 제주노선을 중심으로 -

Abstract

Since Hansung Airline started to serve Gimpo-Jeju route in 2005 as a very first Low Cost Carrier (LCC) in Korea, domestics air transportation market has been changed because of the entrance. When LCC just entered domestic air transportation market in Korea, there are many worries such as safety, reliability, and operation. These worries have come true since there were many cancellations of air flights because poor maintenance, scheduling, and operation. Moreover, customers demand for same service to LCC with Full Service Airline (FSA) while they expect to pay low fare. Nevertheless, LCC have increased it market share in air transportation market in Korea since interests in air transportation demand for no-frills have increased. In 2013, a market share of LCC on Gimpo-Jeju route reached 59.3 percent which is the highest after its entrance in the market. LCC pursues a lower cost structure compared to FSA. LCC does not service newspapers, soda, entertainment and tries to simplify its organization, information, and service to maximize profit by reducing total costs while they offer lower fares compared to FSA. It is expected that a growth in LCC will be continued because of increases in air transportation market and in consumers' demand for LCC. Especially, seat supply for Jeju route has been increasing since Korean LCC focus on their flights in the route and there is imbalance between seat supply and demand. Low fares may increase travel demands in two ways. One is "Substitution effect" and another one is "Creation effect." Substitution effect is a effect of LCC on demand increases by who travels Jeju instead of oversea because of low fares. Creation effect is a effect of LCC on demand increases by who travels Jeju instead of inland sightseeing because of low costs of air transportation. There are only few studies empirically analyzing this issue while there are many previous studies about operation strategies of LCC. The objective of this study is to estimate effects of LCC on air transportation demands in Korea, especially in Jeju route. Two Stage Budgeting with Almost Ideal Demand System is used to estimate the effects. It is found that LCC substitutes exiting air transportation demands for FSA and create new air transportation demands for Jeju route based on lower fare than FSA. Also it is found that a market share of FSA decreases when relative fare of LCC compared to FSA decreases. A market share of FSA increases as flight frequency of FSA increases, as passenger load factor of FSA increases, as passenger load factor of LCC decreases. Entrance of LCC in the air transportation market in Korea is one of factors affecting diversification of demand for travel. The entrance affects putting back of travel demand for oversea toward to domestic travel.