Marketing strategy of the subsidiary LCCs and its effects for market competition

通过对捷星航空的案例分析，分析了其子公司LCC(低成本航空公司)的网络战略。为了应对独立的维珍澳大利亚LCC，澳航于2004年成立了子公司LCC，Jetstar。Jetstar是全方位服务航空公司(FSA)最成功的子公司LCC，而许多FSA未能运营其子公司LCC。我们利用2004年至2012年的数据，采用描述性和计量经济学方法考察了Jetstar进入对竞争结构的影响。我们发现，捷星的进入主要是为了与维珍竞争，但也产生了副作用，促进了澳航和捷星之间的蚕食。然而，捷星航空似乎试图通过精心安排航班安排来放松与澳航的竞争。

We analyzed networking strategies of the subsidiary LCC (low cost carrier) by the case study of Jetstar Airways. Qantas Airways countered the independent LCC, Virgin Australia by establishing its subsidiary LCC, Jetstar in 2004.Jetstar is the most successful subsidiary LCC of the full service airline (FSA) while many FSAs failed to operate their subsidiary LCCs.We conducted descriptive and econometric approaches to examine the effects of Jetstar's entry on competition structure using data from 2004 to 2012. We found that entry by Jetstar was mainly aimed at competing against Virgin but it also induced side effects which promoted cannibalizations between Qantas and Jetstar. However, Jetstar seems to be trying to relax competition with Qantas by the careful arrangement of flight scheduling.