採低成本航空公司在台灣營運之可行性分析

國

立

交

通

大

學

管理學院管理科學學程碩士班

碩

士

論

文

採低成本航空公司在台灣營運之

可行性分析

A Study of Low-Cost Carriers Implementing

in Taiwan

- Benchmark to AirAsia Airline

研 究 生：汪 坤 發

指導教授：黃仁宏教授

中 華 民 國 九 十 四 年 六 月

採低成本航空公司在台灣營運之可行性分析

A Study of Low-Cost Carriers Implementing in Taiwan –

benchmark to AirAsia Airline

研 究 生：汪坤發 Student：KernHuat Ang

指導教授：黃仁宏博士

Advisor：

Dr.Jen-Hung Huang

國立交通大學

管理學院管理科學學程碩士班

碩士論文

A Thesis

Submitted to Master Program of Management Science College of Management

National Chiao Tung University in partial Fulfillment of the Requirements

for the Degree of

Master of Business Administration In

Management Science

June 2005

Hsinchu, Taiwan, Republic of China

中華民國九十四年六月

採低成本航空公司在台灣營運之可行性分析

學生：汪

坤

發

指導教授：黃仁宏

博士

國立交通大學管理科學系碩士班

摘 要 低成本航空公司(LCC)，廉價航空公司或者折價航空公司在全世界包括北美洲，歐 洲和許多其他國家已經被證實是一個很好的商業模式。 相同的商業模式正在東南亞國 家如雨後春筍般盛行，特別是馬來西亞，新加坡和泰國。 這篇論文主要是在研究低成 本航空公司在台灣營運之可行性， 研究基礎主要是來自 AirAsia 航空公司的訪談以 及台灣地區相關要素之研究。 在考量台灣地區之相關人口統計，社會經濟，地理環境，航空法規，以及AirAsia 航空公司的內部策略後， 本論文斷定台灣是一個營運低成本航空業務的高潛在市場區 域。 本論文重要之研究結論如下； 1. AirAsia 航空公司的案例︰任何有意進入低成本營運的台灣航空公司最好遵循低 成本航空公司的模式， 它包括了單一的乘客艙等， 同型的班機，短程且點對點 的高頻率飛行班次， 機上的服務需收費，直接在網際網路上售票以及鼓勵員工在 工作上從事多角色扮演。 2. 在社會經濟方面︰ 台灣是一個平均國內生產總值高的國家,且城市化的比例以及 旅客的成長率也高，這些都是營運低成本航空公司的有利因素。 3. 在地理及人文統計方面︰ 台灣位於亞太的地理及貿易中心，在這個區域內以飛行 旅程六小時來計算,大約有三十五億的人口可能成為台灣的潛在航空旅客，這個要 素非常适合低成本航空公司的發展。 4. 在航運的自由化及法規方面︰台灣並没有任何的航空法規禁止低成本航空公司的 發展。同時，低成本航空公司可以對两岸直航先做準備。 關鍵字：低成本航空，廉價航空，折價航空，商業模式，西南航空公司，瑞安航空公 司，亞洲航空公司 III

A Study of Low-Cost Carriers Implementing in Taiwan –

benchmark to AirAsia Airline

Student:

KernHuat

Ang

Advisor:

Dr.Jen-Hung

Huang

MBA Program of Department of Management Science

National Chiao Tung University

ABSTRACT

Low-Cost Carriers (LCC), budget Airlines or Discount Airlines have been proven to be a profitable business model globally. This business model has been successfully implemented in Southeast Asian countries, especially in Malaysia, Singapore and Thailand.

This dissertation studies the possibility of implementing low-cost carriers in Taiwan. This proposition was supported by a comparative study, SWOT analysis and interview with AirAsia as well as a review of the demography, geography, aviation regulations relevant to AirAsia and Taiwan.

Following this, this paper concludes Taiwan is a suitable and potentially profitable industry to implement a low cost carrier service.

This conclusion is detailed as follows:

1. Based on research of AirAsia, it is recommended airlines considering low cost flights should minimise operating costs, offer one passenger class, use a single model of aircraft, offer frequent, and if possible direct flights, offer a no frill service’, encourage employee to work in multiple roles and offer direct ticket sales. 2. A positive relationship was found between high GDP and regular return flights. It

was also found increased urbanization was related to more travel destinations and this in turn was related to increased demand for travel.

3. It is suggested Taiwan has potential as a hub for Asia with 3.5 billion people within a six hour flight of Taipei. Limited land and sea transport has helped develop the international flight industry. It was also found the standard of airport facilities in Taiwan is comparable to Malaysia, where AirAsia is based.

4. With regard to regulations and liberalisation, Taiwan is well suited to take advantage of direct flights to China. Similarly, current aviation regulations do not affect the implementation of a low cost flight service.

Key Words：Low-cost Carriers，Low fares Airlines，Discount Airline，Budget Airlines， Business model，Southwest Airline，Ryanair，AirAsia Airline

ACKNOWLEDGEMENTS

I would like to thank my advisor Dr. Jen-Hung Huang and also the presentation committee, 楊千博士, 沈聰益博士 and 何淑熏博士, whose guidance has contributed to the quality and timeliness of this paper.

I would also like to thank my wife, Chiu Wan Ting, who has supported and understood my interest in learning.

Finally, I want to give special thanks to my mother, Lim Moo Ying, without whose help to take care my 10 months old son I would not have been able to complete this study on time.

目 錄

中文摘要 ---I 英文摘要 ---II 誌謝 ---III 目錄 ---Ⅳ Tables --- Ⅵ Figures ---Ⅶ GLOSSARY --- Ⅷ CHAPTER 1 INTRODUCTION---1

1.1 Background and Motivation --- 1

1.2 Objectives --- 2

1.3 Scope---3

1.4 Organization of the Dissertation---3

CHAPTER 2 LITERATURE REVIEW ---5

2.1 History of Low-Cost Carriers---5

2.2 Literature of Low-Cost Carrier Model ---8

2.3 Low-Cost Carriers in USA --- 12

2.4 Low-Cost Carriers in Europe --- 15

2.5 Low-Cost Carriers in Southeast Asia --- 21

CHAPTER 3 METHODOLOGY --- 31

3.1 Research Procedure --- 31

3.2 Research Method --- 32

3.3 Research Framework --- 32

CHAPTER 4 OPERATION STRATEGIES OF AIRASIA AIRLINE --- 34

4.1 Strategy --- 35 4.2 Competitive Strengths --- 37 4.3 Operation weaknesses --- 41 4.4 Opportunities --- 44 4.5 Threats --- 47 4.6 Summary --- 49

CHAPTER 5 LOW-COST CARRIERS IMPLEMENTING IN TAIWAN --- 50

5.1 Socioeconomics --- 50

5.2 Geography--- 57

5.3 Aviation Development and Regulation --- 61

5.4 Potential Constraints --- 66

CHAPTER 6 CONCLUSIONS AND SUGGESTIONS --- 69

6.1 Conclusions --- 69

6.2 Contributions of the Research --- 70

6.3 Limitations of the study --- 70

6.4 Future Research Directions --- 71

LIST OF REFERENCE--- 72

APPENDICES --- 76

Tables

Table 2-1: The regional top three LCC in term of Scheduled Available Seats per Week ---8

Table 2-2: The expenses comparison between LCC and conventional carriers in U.S. --- 12

Table 2-3: Ryanair’s record in customer service--- 17

Table 2-4: Major Airlines List of low cost carriers in Asia--- 21

Table 2-5: The requirement of success low-cost carriers in Asia --- 23

Table 2-6: Major Low cost carriers in Southeast Asia --- 24

Table 4-1: LCC Implement status in AirAsia, Southwest Airline and Ryanair (2004)--- 41

Table 4-2: The urbanization of select countries in Asia--- 47

Table 4-3: SWOT summarized table for AirAsia --- 49

Table 5-1: The Population and Growth rate comparison among Asia’s countries--- 51

Table 5-2: The GDP and GDP/Capita in Asia’s countries --- 52

Table 5-3: The Air Passengers amount of R.O.C --- 54

Table 5-4: Current Low-Cost Carriers Market Share in Southeast Asia (estimated)--- 55

Table 5-5: The urbanization and population growth in selected Asia Countries--- 56

Table 5-6: World’s population lives within a six hour flying radius from Taipei--- 59

Table 5-7: The major airports and facility around Taiwan--- 61

Table 5-8: A list of Taiwan’s airlines and its function--- 62

Table 5-9: A list of Taiwan’s airlines with its amount of aircraft --- 63

Table 5-10: The forecast of air passenger growth rates in selected region (international and domestic)--- 64

Figures

Figure 2-1: LCC are at Different Stages of Maturity in the world ---6

Figure 2-2: Interesting advertisement by Southwest --- 14

Figure 2-3: Interesting advertisement by Ryanair --- 18

Figure 2-4: Growth and expansion of Ryanair --- 19

Figure 2-5: AirAsia’s revenue --- 26

Figure 3-1: Research procedure--- 31

Figure 3-2: Research framework --- 33

Figure 4-1; AirAsia corporate structure and principal operating companies of the group -- 34

Figure 4-2: The relationship between GDP and air travel in Asia-Pacific countries --- 46

Figure 5-1: The Population Bar Chart among Asian countries --- 51

Figure 5-2: The Growth rate of Population among Asian countries--- 52

Figure 5-3: The GDP in selected Asian countries --- 53

Figure 5-4: The GDP/Capita in selected Asian countries--- 53

Figure 5-5: The relationship between Per Capita GDP and Air Travel (include Taiwan) --- 55

Figure 5-6: The flying radius from Taipei within 4 and 6 hours --- 58

Figure 5-7: Total airport count in selected countries --- 60

Figure 5-8: The price of Crude Oil (2005 April)--- 68

GLOSSARY OF ABBREVIATIONS AND DEFINED TERMS

AirAsia - AirAsia Berhad and its consolidated subsidiaries APEC - Asia-Pacific Economic Co-operation ASA - Air services agreement

ASK - Available seat kilometers, which is the total number of seats available on scheduled flights multiplied by the number of kilometers those seats were flown

Baht - Thailand Baht, the lawful currency of Thailand CAA - Civil Aeronautic Administration, ROC

CAAGR - cumulative average annual growth rate CEO - Chief Executive Officer

GDP - Cross Domestic Product

DMA - Don Muang International Airport in Bangkok IATA - International Air Transport Association ICAO - The International Civil Aviation Organization IPO - Initial public offering

JATM - Journal of Air Transport Management

KLIA - The Kuala Lumpur International Airport in Malaysia LCA - Low-cost Airlines

LCC - Low-cost Carriers MOT - Ministry of Transport of Malaysia

RM - Malaysia Ringgit, the lawful currency of Malaysia

RPK - Revenue passenger kilometers, which is the number of paying passengers carried on scheduled flights multiplied by the number of kilometers those passengers were flown

S-A-P - Strategic Airport Planning, a San Francisco-based consulting firm that

XI

provides financial, strategic, and physical planning advisory services for airports worldwide

Senai - Senai International Airport in Johor Bahru, Malaysia SWOT - An analysis in strength, weakness, opportunity and threat U.S. The United States of America

U.S.$ or USD - United States Dollar, the lawful currency of the U.S. WTO - World Tourism Organization