This study evaluates the feasibility of the Taiwanese airline STARLUX operating new long haul routes to the United States and Europe in the post-pandemic period.
A Quality Service Index (QSI) model, one of the multiple criteria decision-making methods, was developed to forecast the market share and compare demand on each candidate route. The variables included in this study were selected based on a literature review of airline route selection factors and passenger preference, mainly focusing on business travellers, including flight frequency, the number of competitors, aircraft size, arrival and departure times, connection opportunities, and the share of first and business class. Separate models were established for the American and European markets based on the datasets from MIDT and OAG, followed by the profitability analysis was also conducted by estimating costs, revenues and load factors.
The results indicate significant opportunities for expansion to the US, with 8 of 9 analysed routes being profitable, especially the destinations Vancouver, Seattle, Ontario, Toronto and Chicago. In contrast, only 2 of 10 prospective European routes proved viable, including the routes to Amsterdam and Milan. Additionally, the regression analysis revealed post-pandemic shifts in business passenger preferences in the US market compared to the European market.
Overall, the study has made significant contributions by developing an improved model and identifying variables that align with the luxury airline's strategy, facilitating evidence-based recommendations for the airline's international expansion.
Keywords
- airline route development
- quality of service index
- post-pandemic
- luxurious airline
- Taiwan
06 91΄σΙρ 2024