The strategic capability of Asian network airlines to compete with low-cost carriers

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dc.contributor.authorPearson, James
dc.contributor.authorO'Connell, John F.
dc.contributor.authorPitfield, David
dc.contributor.authorRyley, Tim
dc.date.accessioned2016-10-27T17:00:19Z
dc.date.available2016-10-27T17:00:19Z
dc.date.issued2015-03-30
dc.description.abstractNever before have network airlines been so exposed and vulnerable to low-cost carriers (LCCs). While LCCs had 26.3% of all world seats in 2013, Southeast Asia had 57.7% and South Asia 58.4% – and these figures will only increase. There are many consequences of LCCs on network airlines, including inadequately meeting the expectations of customers, so increasing dissatisfaction, and not offering sufficient value-for-money. Clearly, it is fundamentally important for Asian network airlines to respond appropriately to LCCs. This paper looks at the strategic capability of 22 of the top Asian network airlines in competing with LCCs, which is achieved by analysing questionnaire data from these airlines in terms of 37 competitive responses across six distinct response categories. It is crucial to note that this paper only concerns their capability in competing with LCCs, and it does not consider their overall strength. This paper also investigates how strategic capability varies by Asian sub-region and by airline performance, with performance examined in two respects: by perceived performance and actual performance. The results show that strategic capability varies widely, with Vietnam Airlines possessing the strongest strategic capability to compete with LCCs and SilkAir the weakest. Of others that compete heavily with LCCs, Malaysia Airlines and Garuda Indonesia have strong capabilities, while Philippine Airlines does not. However, all three need to more forcefully respond to LCCs. As a whole, network airlines within Southeast Asia have the greatest strategic capability, and Northeast Asia the weakest. There is a reasonably strong correlation between strategic capability and both actual and perceived performance, which suggests that those airlines with strong strategic capabilities should achieve strong overall performance.en_UK
dc.identifier.citationJames Pearson, John F. O'Connell, David Pitfield, Tim Ryley, The strategic capability of Asian network airlines to compete with low-cost carriers, Journal of Air Transport Management, Volume 47, August 2015, Pages 1-10en_UK
dc.identifier.issn0969-6997
dc.identifier.urihttp://dx.doi.org/10.1016/j.jairtraman.2015.03.006.
dc.identifier.urihttps://dspace.lib.cranfield.ac.uk/handle/1826/10898
dc.language.isoenen_UK
dc.publisherElsevieren_UK
dc.rightsAttribution-Non-Commercial-No Derivatives 3.0 Unported (CC BY-NC-ND 3.0). You are free to: Share — copy and redistribute the material in any medium or format. The licensor cannot revoke these freedoms as long as you follow the license terms. Under the following terms: Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. Information: Non-Commercial — You may not use the material for commercial purposes. No Derivatives — If you remix, transform, or build upon the material, you may not distribute the modified material. No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.en_UK
dc.subjectCompetitionen_UK
dc.subjectCompetitive responsesen_UK
dc.subjectCompetitive advantageen_UK
dc.subjectAsiaen_UK
dc.subjectNetwork airlinesen_UK
dc.subjectLow-cost carriersen_UK
dc.titleThe strategic capability of Asian network airlines to compete with low-cost carriersen_UK
dc.typeArticleen_UK

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