A Comparative Analysis of Low Cost Carriers and Full Service Carriers in terms of the Competitiveness of Financial Characteristics by Regional Markets

정숙엽; Yoon Ji-Hwan

doi:10.17086/JTS.2016.40.5.145.163

Comparison of various characteristics between Full service carriers and Low cost carriers has always been one of the most relevant issues of the current airline industry. This study addresses the differences in the financial characteristics between FSCs and LCCs in the global market, the Korean market, and markets in the Asian Pacific, America, Europe respectively. This was done by analyzing 10 financial ratios (CR, QR, STDR, LTDR, TDR, AT, FAT, ROA, ROE, NPM) from a total of 34 carriers including 20 FSCs and 14 LCCs worldwide for the last 9 years (2005 through 2014). Results indicate that there appear to be no significant differences between the two groups of carriers in terms of profitability in all markets, while LCCs exhibit higher liquidity and asset management (turnover) ratios than FSCs in financial characteristics in the global and Korean markets. This study inceptively includes a wide range of FSCs and LCCs from a total of 34 companies from various markets including Korea, and shows comparison in financial characteristics between the two groups of carriers within the whole market, Korean market, and 3 area markets respectively. As a result, practical references are presented for statistical business decision making in the airline industry.

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REFERENCES (52)
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* 2021년 이후 발행 논문의 참고문헌은 현재 구축 중입니다.

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