Abstract
What is the critical issue for the implementation of LCCs in japan market? This is a study to identify the constraint in terms of air ticket distribution and regulatory issues, and consider idea for smooth implementation of LCC in Japan. Comparative study between actual users of LCC and general travelers conducted to identify travelers' preference in selecting airline for overseas travel. LCC users significantly give priority for 'low fare'. Meanwhile general travelers think highly of 'Airline brand image', 'high standard in-flight services' which traditional major airlines have despite highly sensitive of prices. Educating the market of LCC's price strategy seems to be critical to expand the market. Regulation of the government filing of international tariffs has constraint in Japan compared to other countries which LCCs have grown. Airlines have no full freedom of pricing to maximize its capability particularly for LCCs. This study recommends further liberalization of government filing of tariffs.
