The Effects of Airline Mergers on Consumers' Perceptions of Services and Behavioral Responses

Abstract

Prior literature focuses on customer satisfaction in the airline industry, while research on consumers' perceptions and behavioral responses to airline mergers is limited and understudied. This paper conducts a field survey on the merger between United and Continental Airlines to examine the effects of an airline merger on passenger satisfaction, service value, and behavioral intentions through perceived service quality. Data were collected from airline passengers arriving at three US airports in two phases: before and after the merger across a period of four years. The results show a noticeable increase in customer satisfaction and positive behavioral responses with the postmerger United Airlines due to the perceived improvement in service quality. This study provides insights into the role of airline mergers in improving customer satisfaction, implications for airline managers, and directions for future research.