IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v42y2015icp297-305.html
   My bibliography  Save this article

Evaluation of airport conditions to attract foreign low cost carriers: A case study of Taiwan

Author

Listed:
  • Lu, Hua-An
  • Mao, Yun-Ru

Abstract

Low cost operation models are developing rapidly in the airline industry. However, Taiwan had no national low cost carriers (LCCs) until 2014, although the first foreign LCC began operating in Taiwan in 2004. Currently, most foreign LCCs operate at the Taoyuan International Airport (TPE), which is a primary gateway airport in Taiwan and handles a large number of passengers. This study aims to explore the determinants, beyond demand, that influence the airport choice of foreign LCCs. A hierarchical framework is applied to examine experts' opinions with a rank pair-wise comparison (RPC) approach. A fuzzy analytic hierarchy process (FAHP) is used to evaluate the relative weights of all factors and this finds that the airport authority's promotion policy is the key factor. Based on an evaluation of three potential airports in Taiwan (TPE), Taipei Songshan Airport (TSA) and Kaohsiung International Airport (KHH), the airports' individual strengths and weaknesses can be easily distinguished. TPE remains the most contestable airport to attract foreign LCCs because of its corporatized operations.

Suggested Citation

  • Lu, Hua-An & Mao, Yun-Ru, 2015. "Evaluation of airport conditions to attract foreign low cost carriers: A case study of Taiwan," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 297-305.
    • Handle: RePEc:eee:jaitra:v:42:y:2015:i:c:p:297-305
    DOI: 10.1016/j.jairtraman.2014.12.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699714001513
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2014.12.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lawton, Thomas C. & Solomko, Stanislav, 2005. "When being the lowest cost is not enough: Building a successful low-fare airline business model in Asia," Journal of Air Transport Management, Elsevier, vol. 11(6), pages 355-362.
    2. de Wit, Jaap G. & Zuidberg, Joost, 2012. "The growth limits of the low cost carrier model," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 17-23.
    3. Tufan Demirel & Nihan Çetin Demirel & Cengiz Kahraman, 2008. "Fuzzy Analytic Hierarchy Process and its Application," Springer Optimization and Its Applications, in: Cengiz Kahraman (ed.), Fuzzy Multi-Criteria Decision Making, pages 53-83, Springer.
    4. Adler, Nicole & Berechman, Joseph, 2001. "Measuring airport quality from the airlines' viewpoint: an application of data envelopment analysis," Transport Policy, Elsevier, vol. 8(3), pages 171-181, July.
    5. Warnock-Smith, David & Potter, Andrew, 2005. "An exploratory study into airport choice factors for European low-cost airlines," Journal of Air Transport Management, Elsevier, vol. 11(6), pages 388-392.
    6. Barrett, Sean D., 2004. "How do the demands for airport services differ between full-service carriers and low-cost carriers?," Journal of Air Transport Management, Elsevier, vol. 10(1), pages 33-39.
    7. Ho, William, 2008. "Integrated analytic hierarchy process and its applications - A literature review," European Journal of Operational Research, Elsevier, vol. 186(1), pages 211-228, April.
    8. Vaidya, Omkarprasad S. & Kumar, Sushil, 2006. "Analytic hierarchy process: An overview of applications," European Journal of Operational Research, Elsevier, vol. 169(1), pages 1-29, February.
    9. Gillen, David & Lall, Ashish, 2004. "Competitive advantage of low-cost carriers: some implications for airports," Journal of Air Transport Management, Elsevier, vol. 10(1), pages 41-50.
    10. Gardiner, John & Ison, Stephen & Humphreys, Ian, 2005. "Factors influencing cargo airlines’ choice of airport: An international survey," Journal of Air Transport Management, Elsevier, vol. 11(6), pages 393-399.
    11. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    12. Aydemir, Resul, 2012. "Threat of market entry and low cost carrier competition," Journal of Air Transport Management, Elsevier, vol. 23(C), pages 59-62.
    13. O’Connell, John F. & Williams, George, 2005. "Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines," Journal of Air Transport Management, Elsevier, vol. 11(4), pages 259-272.
    14. Graham, Anne, 2013. "Understanding the low cost carrier and airport relationship: A critical analysis of the salient issues," Tourism Management, Elsevier, vol. 36(C), pages 66-76.
    15. Francis, Graham & Fidato, Alessandro & Humphreys, Ian, 2003. "Airport–airline interaction: the impact of low-cost carriers on two European airports," Journal of Air Transport Management, Elsevier, vol. 9(4), pages 267-273.
    16. Klophaus, Richard & Conrady, Roland & Fichert, Frank, 2012. "Low cost carriers going hybrid: Evidence from Europe," Journal of Air Transport Management, Elsevier, vol. 23(C), pages 54-58.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shetty, Pavithra Kumari & Aithal, Sreeramana, 2020. "Growth & Fate Analysis of Mangalore International Airport – A Case Study," MPRA Paper 102878, University Library of Munich, Germany.
    2. Nghiêm-Phú, Bình & Suter, Jillian Rae, 2018. "Airport image: An exploratory study of McCarran International Airport," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 72-84.
    3. Pandey, Mukesh Mohan, 2020. "Evaluating the strategic design parameters of airports in Thailand to meet service expectations of Low-Cost Airlines using the Fuzzy-based QFD method," Journal of Air Transport Management, Elsevier, vol. 82(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pandey, Mukesh Mohan, 2020. "Evaluating the strategic design parameters of airports in Thailand to meet service expectations of Low-Cost Airlines using the Fuzzy-based QFD method," Journal of Air Transport Management, Elsevier, vol. 82(C).
    2. Dziedzic, Marcin & Njoya, Eric T. & Warnock-Smith, David & Hubbard, Nick, 2020. "Determinants of air traffic volumes and structure at small European airports," Research in Transportation Economics, Elsevier, vol. 79(C).
    3. Malighetti, Paolo & Paleari, Stefano & Redondi, Renato, 2016. "Base abandonments by low-cost carriers," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 234-244.
    4. Loh, Hui Shan & Yuen, Kum Fai & Wang, Xueqin & Surucu-Balci, Ebru & Balci, Gökcay & Zhou, Qingji, 2020. "Airport selection criteria of low-cost carriers: A fuzzy analytical hierarchy process," Journal of Air Transport Management, Elsevier, vol. 83(C).
    5. Choo, Yap Yin & Oum, Tae Hoon, 2013. "Impacts of low cost carrier services on efficiency of the major U.S. airports," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 60-67.
    6. Stephen Pratt & Markus Schuckert, 2019. "Economic impact of low-cost carrier in a saturated transport market: Net benefits or zero-sum game?," Tourism Economics, , vol. 25(2), pages 149-170, March.
    7. Dobruszkes, Frédéric & Givoni, Moshe & Vowles, Timothy, 2017. "Hello major airports, goodbye regional airports? Recent changes in European and US low-cost airline airport choice," Journal of Air Transport Management, Elsevier, vol. 59(C), pages 50-62.
    8. Fageda, Xavier & Suau-Sanchez, Pere & Mason, Keith J., 2015. "The evolving low-cost business model: Network implications of fare bundling and connecting flights in Europe," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 289-296.
    9. Zuidberg, Joost, 2017. "Exploring the determinants for airport profitability: Traffic characteristics, low-cost carriers, seasonality and cost efficiency," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 61-72.
    10. Lin, Eliver & Mak, Barry & Wong, Kevin, 2013. "The business relationships between LCCs and airports in Southeast Asia: Influences of power imbalance and mutual dependence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 50(C), pages 33-46.
    11. Jimenez, Edgar & Suau-Sanchez, Pere, 2020. "Reinterpreting the role of primary and secondary airports in low-cost carrier expansion in Europe," Journal of Transport Geography, Elsevier, vol. 88(C).
    12. Clavé, Salvador Anton & Saladié, Òscar & Cortés-Jiménez, Isabel & Fernandez Young, Anita & Young, Robert, 2015. "How different are tourists who decide to travel to a mature destination because of the existence of a low-cost carrier route?," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 213-218.
    13. Jimenez, Edgar & Claro, João & Pinho de Sousa, Jorge & de Neufville, Richard, 2017. "Dynamic evolution of European airport systems in the context of Low-Cost Carriers growth," Journal of Air Transport Management, Elsevier, vol. 64(PA), pages 68-76.
    14. O'Connell, John F. & Avellana, Raquel Martinez & Warnock-Smith, David & Efthymiou, Marina, 2020. "Evaluating drivers of profitability for airlines in Latin America: A case study of Copa Airlines," Journal of Air Transport Management, Elsevier, vol. 84(C).
    15. Budd, Lucy & Francis, Graham & Humphreys, Ian & Ison, Stephen, 2014. "Grounded: Characterising the market exit of European low cost airlines," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 78-85.
    16. Madjid Tavana & Mariya Sodenkamp & Leena Suhl, 2010. "A soft multi-criteria decision analysis model with application to the European Union enlargement," Annals of Operations Research, Springer, vol. 181(1), pages 393-421, December.
    17. Morandi, Valentina & Malighetti, Paolo & Paleari, Stefano & Redondi, Renato, 2015. "Codesharing agreements by low-cost carriers: An explorative analysis," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 184-191.
    18. John Francis O’Connell & David Connolly, 2017. "The strategic evolution of Aer Lingus from a full-service airline to a low-cost carrier and finally positioning itself into a value hybrid airline," Tourism Economics, , vol. 23(6), pages 1296-1320, September.
    19. Paweł Karczmarek & Witold Pedrycz & Adam Kiersztyn, 2021. "Fuzzy Analytic Hierarchy Process in a Graphical Approach," Group Decision and Negotiation, Springer, vol. 30(2), pages 463-481, April.
    20. J Aznar & J Ferrís-Oñate & F Guijarro, 2010. "An ANP framework for property pricing combining quantitative and qualitative attributes," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(5), pages 740-755, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:42:y:2015:i:c:p:297-305. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.