The business model of hybrid LCC and market competition

2016 Fiscal Year Final Research Report

• Project/Area Number: 26380300
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Economic policy
• Research Institution: Kobe University
• Principal Investigator: MIZUTANI Jun 神戸大学, 海事科学研究科, 准教授 (60388387)
• Project Period (FY): 2014-04-01 – 2017-03-31
• Keywords: LCC / 子会社LCC / ハイブリッド戦略 / 混雑空港 / 発着枠配分 / 非航空系収入

Outline of Final Research Achievements

We empirically analyzed that effect of the hybrid airline strategies on market competition.
The first hybrid strategy is entering into a congested airport and we found that congested airports in UK with slot constraints would not have an incentive to replace the slot for FSC with LCC from the point of view of non-aeronautical revenue. We also found lower fare of LCC, Skymark could reduce the fare of the rival airlines by 1.7% at Haneda airport.
The second hybrid strategy is FSC's establishing their subsidiary LCC and both cases of Thailand and Australia suggested that FSC in cooperation with subsidiary LCC would try to compete against their rival independent LCC in networking.

Free Research Field

経済政策，交通経済学