Research on the Competitive Strategies of Full-Service Airlines and Low-Cost Airlines

Abstract

Against the backdrop of the recovery of global air passenger demand in the post-pandemic era, this paper focuses on the differences in competitive strategies between low-cost airlines (LCC) and full-service airlines (FSC). By combining the SWOT analysis method and Porter Five Forces model, it systematically analyzes the internal and external competitive environments and strategic advantages and disadvantages of the two types of airlines. The research finds that full-service airlines dominate the high-end market relying on brand reputation, quality service and the advantages of air alliances, but they face the challenges of high operating costs and short-haul customer churn. Low-cost airlines take the cost leadership strategy as the core, seizing the pricesensitive market through a single aircraft model, extreme cost reduction and flexible pricing. However, they are limited by the singularity of services and insufficient brand influence. Case analyses (Spring Airlines VS China Eastern Airlines, Ryanair VS Lufthansa) further reveal the differentiated competitive paths of the two types of airlines in terms of pricing strategies, route layouts and service models. Based on this, it is suggested that full-service airlines optimize their cost structure, strengthen high-end services and digital transformation, while low-cost airlines need to balance cost advantages and service improvements, and expand into emerging markets. This research provides theoretical references for the aviation industry to optimize resource allocation and formulate differentiated competitive strategies. Meanwhile, it points out the research directions that can deepen the impact of digital technologies, sustainable aviation and changes in consumer behavior on competitive strategies in the future.