An Evaluation of Network Competitiveness and the Effects of LCCs on South Korea’s Network Connectivity: Using Aviation Market Data

Abstract

LCCs (low cost carriers) are expanding their routes, which is affecting airport network connectivity. The subsequent increases in market competition and the number of airlines operating in air network routes have made the centrality analysis more significant because it can be used to identify airport network connectivity competitiveness. This study analyzes the network connectivity competitiveness of South Korea among Asian airports using the MIDT (marketing information data transfer) dataset provided by OAG Traffic Analyser, which provides data collected from regional Asian airports since 2011. The network centrality of individual airports is estimated to compare network connectivity competitiveness in Asia. Measures for overall network centrality include degree, closeness and betweenness centrality. This network centrality analysis may be helpful for South Korean airports in identifying their network performance and competitive position in Asia and confirming the effects that LCCs have on airport network connectivity. The results indicate that South Korea's aviation market needs to expand its network via a strategy that prioritizes the strengthening of airport connectivity and the pursuit of liberalization. In addition, LCC operations will support Korea's network growth via the various strategies that they employ. Consequently, this in turn will bolster the overall market competitiveness of South Korean airports.