Author(s): Nisara Paethrangsi, Tawee Jamjumrus, Ananta Rusmee
Thai low-cost airline business is facing pressure under the COVID-19 pandemic, and causing flights ban and reduction. This problem is challenging the survival of aviation industry in the kingdom. The objectives of this research were to: (1) study level of success in low-cost airline management during the COVID-19 pandemic; (2) study the management leadership, external factors, marketing strategies, and internal factors influencing the accomplishment of low-cost airlines; (3) develop a model contributes success and sustainable competitive advantage to low-cost airlines. This research employed mixed methods mainly based on quantitative technique and confirmed with qualitative technique. For the quantitative study part, the sample consisted of the managements, experts, supervisors, operation personnel and relevant authorities. Estimating sample size based on 20 times of the twenty observed variables. A sample of 400 people was drawn using a stratified method. Data were collected with questionnaires and were analyzed using a structural equation model. For the qualitative research part, conducted in-depth interviews with sixteen key informants including, the managements, managerial level employees in airlines and regulatory agencies. The research results indicated that; (1) the level of success in low-cost airline management during the COVID-19 pandemic, the management leadership, external factors, marketing strategies and internal factors were the highest levels. (2) The overall impact factors influenced on carrier’s accomplishment were determined respectively, external factor was the greatest influence. Internal factor was the second in sequence of four, followed by the factors of management leadership and marketing strategy; and (3) the model contributes low-cost airline accomplishment was a quadrilateral chart consisting of external factor as the base. Internal factor and management leadership are in the middle as intervening variables, and marketing strategies play important roles in enhancing success and sustainably competitive advantage. The accomplishment of Thai low-cost airline during the COVID-19 pandemic relates to customer relationship management, profitability, internal control and periodic evaluation. Government aid to airlines such as fund finding or low-interest loans and fees reducing, taxes and fuel subsidies are urgently needed. Additionally, airline operations must comply with safety standards, maintain a punctual itinerary, hire skilled personnel to facilitate customers, etc. The results of this research will benefit low-cost airlines and agencies involved in the aviation industry to develop and support the airlines to get through the crisis caused by the coronavirus pandemic, which directly linked to the sustainable economic growth of Thailand.