Determinants of airline choice-making: The Nigerian perspective

Abstract

This study is on choice decision-making of the Nigerian domestic air transport industry. It is aimed at determining the factors that influences air travellers’ choice of airlines to fly within Nigeria. In doing this, data was collected from air travellers using questionnaires following Likert scale of ranking. This enabled us to obtain the socio-economic characteristics and the airline attributes that helped influenced the air travellers in making their choice of airlines at the selected airports. The data collected were analysed using correlation matrix to check for multi-collinearity problems among the socioeconomic characteristics of air travellers and airline attributes. It was discovered that there exist no multi-collinearity problem. Furthermore, a stepwise regression analysis was carried out to determine the factors/attributes that were significantly influencing air travellers in airline choice decision making. To further verify the result of the regression analysis, a discrete choice-modelling analysis was done using NLOGIT. The both results showed that sex, age, marital status, income, comfort, on-board services, frequency, crew behaviour, fare and power of monopoly were significant variables and therefore influence the choice of airline by air travellers. Recommendations amongst others include airlines should use target marketing to attract more patronage from the different age groups, improve comfort and on-board services, increase frequency on major routes, charge competitive fares and apply the power of monopoly by either serving undeveloped routes or make their products distinct from others in the market and airlines should avail their air travellers more opportunities of purchasing tickets before getting to the airport.