Full-service Airlines Research Articles

Relationship of Covid-19 Pandemic on Performance and Internal Operation of The Airline

Abstract. Air transport business is challenged to oversee their performance and operations to preserve their business presence within the COVID-19 widespread. It is fundamental to distinguish the suitable performance and operation and their relationship with the pandemic. In this way, we used the indicators to employ a systematic literature review and experts’ point of view to select and group suitable indicators to address the literature gap. Twenty performance and internal operations indicators are identified and redefined from the review. The Delphi method’s result suggests eight indicators categorized in airline performance indicators and seven indicators categorized in internal operation indicators. We investigate the relationship of COVID-19 pandemic on the selected indicators using SmartPLS based on fifty-two weeks performance, and operation report of one of full-service airline started from 08 March 2020 until 28 February 2021. It can be deduced that the COVID-19 pandemic has a significant and negative influence on the airline’s performance. This study fills the gap by synthesizing and creating suitable and comprehensive performance and operation indicators of air transport carriers in a pandemic situation and their relationships. Finally, this study provides an invaluable point for analyzing the air transport carrier industries in a pandemic to maximize performance through profitability and load factors indicators. Keywords: Airline, Pandemic, Performance, Operation

Aircraft seat: the study of airline seat pitching and comfortable

Legroom is the most critical of the aircraft economy category that affects passenger comfort. Legroom is the most significant improvement in passenger comfort, particularly in today’s Low-Cost carrier, by reducing the legroom to 29 inches on average, whereas the usual seat pitch of the full-service airline is 31 inches. The capacity to change the seat pitch is in the range of 28 to 43 inches within the airline interior mock up. A study to investigate the function of seat pitches that affect passenger well-being during en-route flights. In the main analysis, the understanding of the various seat pitch settings and the ability to relocate seating postures for passengers during short-haul and long-haul flights are shown. In addition, during flight time, the research aims at the emotion of the passenger in the seat duration. As a result of this study, it demonstrates the role between the airline’s seating concept and seat pitch anthropometry that can be established and enhance the passenger posture feature while seating on the limited seat. In addition, the technique of seating in the minimal of seat pitches for passengers to become the flight comfort well.

Does service failure criticality affect global travellers' service evaluations? An empirical analysis of online reviews

PurposeIncreased global air travel and competition in the airline industry entail better service delivery and failure management. This study examines how airline type, failure criticality and the traveller's culture influence travellers' airline evaluations of service failure.Design/methodology/approachThe study uses a large data set of customers' online reviews and incorporates quantitative and qualitative feedback from 20 major airlines across the world. Semantic tagging, sentiment and multivariate analyses have been used to analyse the data.FindingsFailure criticality and travellers' cultural backgrounds significantly affect airline evaluations after service failures. Moreover, failure criticality influences evaluations of travellers from individualistic cultures more severely. Contrary to expectations, full-service airlines were evaluated positively after less critical service failures.Practical implicationsThe findings support that customers undergo different emotional states when they experience service failure. Understanding these internal emotional sensitivities and how services would be judged by travellers across cultures can help airlines to better manage their service recovery efforts and to strategise prioritisation of scarce resources.Originality/valueThough airline service failure has been well researched, this study examines the role of culture in service failure evaluations. The study uses a novel method to analyse a large data set of both quantitative and qualitative traveller feedback useful in service recovery management.

Lealtad e intenciones de comportamiento: Análisis de diferencias entre pasajeros de Aerolíneas Mexicanas de bajo costo y de servicio completo

En distintas industrias y sectores, las empresas tratan de lograr clientes leales, con intenciones de comportamiento asociadas a esa lealtad. En un entorno tan competido como el transporte aéreo de pasajeros es imposible escapar de esta estrategia; las empresas que en él compiten, buscan generar ofertas valiosas para sus clientes. No obstante, esta variable se ha estudiado en los pasajeros de aerolíneas, aún existen brechas por indagar, y particularmente en el contexto mexicano son exiguos los trabajos realizados. Con el propósito de avanzar en el conocimiento, el objetivo de esta investigación es establecer si existen diferencias significativas en la lealtad y en las intenciones de comportamiento de pasajeros de líneas aéreas de servicio completo y la de los pasajeros de aerolíneas de bajo costo que viajan en vuelos nacionales en México. Se utilizó un diseño de investigación cuantitativo, no experimental, transversal, en una muestra no probabilística de 434 pasajeros, en el aeropuerto de Ciudad Juárez. Como técnica estadística se utilizó el Análisis de Varianza. Los resultados indican que no existen diferencias significativas entre los grupos, es decir, no es distinta la lealtad ni las intenciones de comportamiento entre los pasajeros de las aerolíneas de bajo costo y los pasajeros de las aerolíneas de servicio completo. Ni en términos actitudinales ni comportamentales, existen discrepancias, es decir, la predisposición favorable hacia las aerolíneas y las intenciones de comportamiento asociadas a ellas, son similares. En términos estratégicos, en ambos tipos de aerolínea, la lealtad se mantiene como un reto vigente. Ambos modelos de negocio, con ofertas de valor distintas, logran que sus clientes sean leales y que tengan la intención de seguir consumiendo, recomendando y hablando bien de la aerolínea en la que viajan.

Satisfaction Determinants of Airlines Industry in Malaysia

This study provides detailed information on customer satisfaction and decision making on choosing a full-service airline in Malaysia based on the number of complaints lodged to MAVCOM. To ensure the study was done with zero-errors, the information stated in this investigation were acquired from a targeted audience which has travelled for leisure purposes only to both domestic and international destinations. This study gives the airlines and edge to refine their customer service and to scrutinize their operations to avoid giving a chance to passenger to choose an alternate airline in Malaysia to suit their itinerary due to the failure in rectifying the inability in providing convenience towards their customers. The results found that service quality, price, reliability (timeliness) and customer relationship management has a significant and positive contribution towards passenger selection of a full-service carrier in Malaysia.

Hedonic and Utilitarian Values Behind Engagement of Online Consumers

In the hyper-competitive Indian airline industry, the low-cost carriers as well as full-service airlines are in dire need of innovative marketing strategies to engage their customers. To understand the dynamics behind the process of customer engagement, the purpose of this paper is to gain insights into the lived experience of consumers about their online air-ticket bookings experiences. In total, 60 frequent air travellers were approached to participate in the study and the self-completion diary method was incorporated to record their ticket booking experiences. The responses recorded in the diaries were analyzed on the basis of their content from which eight themes were derived. The findings bring forth the importance of hedonic experiential values along with utilitarian experiential values toward the engagement of customers during the online air-ticket booking process. The current study is one of the pioneers in conceptualization of customer engagement as a third-order construct by uncovering the sub-dimensions of the second order factors—utilitarian and hedonic experiential values.

WASPAS based MULTIMOORA method under IVIF environment for the selection of hub location

PurposeLow cost carriers (LCCs) have become one of the most significantly growing parts of the airline servicing market. This new player has redesigned the whole airline industry, which was previously led by the national/international full-service airline companies. Considering such advancements, the hub locations of LCCs became an important issue than ever before. Within this concept, a guiding framework is developed for an LCC company, which is in search of a new hub airport location within Turkey to satisfy the demand and attract new passengers.Design/methodology/approachAn interval-valued intuitionistic fuzzy (IVIF) sets based weighted aggregated sum product assessment (WASPAS) and multi-objective optimization by ratio analysis (MULTIMOORA) methods are developed for decision-making processes.FindingsFive airport locations are evaluated using the developed method. Results showed that in determining hub locations for LCCs, potential number of passengers of the city, airport quality and the number of hotels within the city are obtained as the three most important criteria among 12 evaluation criteria. The best location for the LCC company is determined as Antalya Airport.Research limitations/implicationsTo apply the proposed method to a different set of alternatives, data gathered on comparing location of alternatives from experts should be updated.Originality/valueProposed hybrid framework is presented as the first time in the literature as a decision-making tool. In order to validate framework's applicability, efficiency and effectiveness, a comparison and a sensitivity analysis are conducted at the end of the study.

Impact of Environmental CSR, Service Quality, Emotional Attachment, and Price Perception on Word-of-Mouth for Full-Service Airlines

This research aimed to develop a theoretical framework relating environmental corporate social responsibility (environmentally friendly business, compliance with environmental regulations, environmentally friendly products/services, environment-related mission, environmental preservation efforts), service quality, emotional attachment, and word-of-mouth in the full-service airline industry. A quantitative approach with a survey methodology was used for attaining the research goals. Our empirical findings demonstrated that environmental corporate social responsibility plays a crucial role in eliciting airline customers’ word-of-mouth, and that service quality and emotional attached have a critical mediating effect. In addition, price perception moderated the degree of the relationship strength between environmental corporate social responsibility and word-of-mouth. The salient contribution of emotional attachment to the prediction power increase of the proposed model for word-of-mouth was also uncovered. Overall, this research presents apparent understanding of airline corporate social responsibility for the environment and its role in the process of generating word-of-mouth.

Airport capacity and entry deterrence: Low cost versus full service airlines

We study entry deterrence in air transport markets with a full-service (FS) carrier (the incumbent) and a low-cost (LC) carrier (the potential entrant). We consider a vertically differentiated product model where airlines have different operating cost and different generalized prices so they compete in ticket prices and frequencies. Thus, more frequency allows airlines to increase ticket prices without losing demand. In this context, we show that the incumbent may increase the frequency offered in order to deter the LC carrier entry. We show that if the airport capacity is low enough the LC carrier entry can be easily blocked or deterred. However, if the airport capacity is sufficiently high, the LC carrier entry must be accommodated. Regulators should take these results into account in order to promote competition among airlines.

Lovemarks and effect of in-flight product performance on airline passengers' purchase intention

We developed a theoretical model by identifying the factors that comprise the role of in-flight product performance (service encounter, physical environment, food and beverage), and brand love and respect (Lovemarks) in building passengers' behavioral intention in the fullservice airline industry. We compiled survey items and collected responses from 316 airline passengers for empirical analysis. The measurement model demonstrated a satisfactory level of reliability and validity. Quantitative analysis results show there was a second-order structure of in-flight product performance, significant relationships between all variables, a significant mediating role of Lovemarks, and comparative importance of in-flight product performance in determining passengers' behavioral intentions. Our theorization comprising the multiple dimensions of product performance and Lovemarks theory was supported. The theoretical framework sufficiently accounted for the variance in passengers' behavioral intentions regarding full-service airline products.

항공사 브랜드에 대한 기능적 일치성과 자아이미지 일치성이 브랜드 신뢰와 브랜드 애착, 브랜드 충성도에 미치는 영향

This study investigates the roles of self-image congruity and functional congruity of users in the airline brand loyalty formation process and verifies the difference between full-service airlines and low-cost carriers in the cause-effect relations of self-image congruity for airline brands, brand trust, and brand attachment. A total of 336 valid samples from consumers who had experienced flying with domestic airline companies in the previous three years were analyzed. The results of the study are as follows. First, it was found that both the functional congruity and self-image congruity had an impact on brand trust. Second, it was found that functional congruity did not affect brand attachment, while self-image congruity had an impact on forming brand attachment. Third, it was found that brand trust had an impact on brand attachment and brand loyalty. Fourth, it was found that there was no difference in the impact of self-image congruity on brand trust and brand attachment according to airline type. Based on the research results, implications on brand marketing for domestic low-cost carriers and full-service airlines are discussed.

Image congruity as a tool for traveler retention: a comparative analysis on South Korean full-service and low-cost airlines

ABSTRACT Retaining customers is irrefutably one of the top priorities in the increasingly competitive airline marketplace in South Korea. This research was an empirical endeavor to better comprehend the role of image congruence, attitude, confidence, and love in building airline customers’ repeat patronage intention by considering the moderating impact of airline type. Our result demonstrated the significant role of these constructs in determining intention. In addition, airline type had a significant effect. Moving one step further than the extant literature, this study successfully developed a meaningful conceptual framework offering a clear understanding of the convoluted customer post-purchase decision formation.

Analysis of Willingness to Pay for Ancillary Revenue of Full Service Airline (The Case of Garuda Indonesia)

Airlines are facing challenges from high cost structures and intense competition. This has made airlines universally look for opportunities to generate ancillary revenue, additional income apart from their main sources, including Full Service Carriers (FSC). Measuring consumer’s willingness to pay is pivotal in pricing and estimating ancillary revenue demand. This study analyzes whether customer’s type of journey, purpose of journey, length of flight, and type of flight class have an impact on willingness to pay (WTP) of Garuda Indonesia’s ancillary revenues which comprises of unbundled products and commission-based income. This paper uses data from a survey to Garuda Indonesia’s customer and follows quantitative studies to identify and describe the relationship between the WTP of Garuda Indonesia’s ancillary revenue and all variables involved. The study found that passengers value more the unbundled products. It is also found differences in WTP for particular ancillary products and services based on purpose of journey, length of flight, and type of flight class.
 Keywords: Ancillary Revenue, Willingness to Pay, Type of Journey, Length of Flight, Journey Purpose, Type of Cabin Class, Full Service Carriers

Contribution of airline F&B to passenger loyalty enhancement in the full-service airline industry

ABSTRACT This study examined the role of airline food and beverage (F&B) performances, and how it affects full-service airline passengers’ loyalty generation processes. The roles of passengers’ cognitive and affective appraisals of flight experiences were considered, as well as the moderating role in-flight physical environment. 302 U.S. airline passengers were sampled and results from a structural equation modeling showed that the intricate interrelationships of airline F&B performances, cognitive appraisal of flight experiences, and affective appraisal of flight experiences were significantly supported. Moreover, a metric invariance test identified that in-flight physical environment played a significant moderating role.

Organisational trust: A case application in the air transport sector

In management, it is important to know what the likely feedback effects of employee-employer relationship outcomes might be on levels of ongoing employee trust. This paper looks to apply this important question to a case application of the air transport sector by testing the impact of recent changes in a case sample of air transport companies using a modified aggregate trust model. The findings of this study suggest that occupational group (flight crew/non-flight crew), airline type (Full Service Airline - FSA, Low Cost Carrier - LCC, Charter), and level of seniority (management/non-management level) all have an important bearing on levels of trust in the employee-employer relationship. Pre-existing labour agreements and legacy arrangements with senior and certain occupational groups were found to have a more damaging effect on the trust relationship than anything else. An underlying level of resentment and defensiveness has developed due to historical labour agreements being changed and have been observed most notably among FSAs, flight-crew and middle-management staff. The mediating role of the unions in the employee-employer trust relationship was found to be insignificant among the sampled air transport organisations mainly due to the perceived weakness among the sampled employees of unions to make any meaningful interventions.

Systems of business travellers' heterogeneity in air transport

Low-cost airline development is related to the deregulation of the air transport market that began in the USA in 1978. It affected other regions in the world including the European Union (EU). The deregulation enabled new entities to enter the industry, which caused a pivotal market transformation. The reviewed literature focused on the systems of business travellers proves that low-cost carriers are used not only by leisure passengers but by business travellers as well. This research deals with the heterogeneity of business passengers who use full-service and low-cost airlines in the sample market of the Czech Republic. It focuses on factors that determine the airline selection process by business travellers. Based on the analysis of empirical results, this geographically scoped discussion complements similar studies conducted in countries such as the UK, Brazil and South Africa located outside the Central and Eastern Europe zone (CEE).

Passenger Intentions towards Halal Food in Low Cost Carriers: Key Influencing Factors

NOTE: THIS ARTICLE WAS PUBLISHED WITH THE INFORMING SCIENCE INSTITUTE. Aim/Purpose....................................................................................................................................................................................................... Low cost airline passengers are sensitive towards value for money. They also have their own preferences and perceptions on what encompasses value. This paper discusses passenger intentions to purchase halal food with a specific reference to Malaysia, which has a majority Muslim population (57%). The purpose of this study is to determine the most influential factors that explain passenger intentions to purchase halal meals when flying with low cost air-lines. Background......................................................................................................................................................................................................... In-flight meals are one of the services being offered by low cost airlines albeit at an additional price. Passengers travelling on LCC flights are required to pay for their meals. The relative importance of food choice and its availability in forming passenger satisfaction with low cost carriers is studied and examined. Although low cost carriers have proven to be a major competitor to full service airlines in Malaysia, halal food availability remains one of the major concerns for passengers flying with low cost airlines. Methodology....................................................................................................................................................................................................... A random sample approach was used to select passengers one major air- port located in Kelantan. The passengers were interviewed face-to-face using a structured questionnaire. Factor analysis was applied to explain the factors influencing passenger intentions to purchase halal food during a low cost flight. Contribution........................................................................................................................................................................................................ This paper highlights the factors which explain passenger intentions towards purchasing halal food while flying with low cost airlines. In Malaysia, halal food has been gaining popularity not only from a religious perspective but also due to other positive perceptions increasingly being held by the public that halal food is a more wholesome, hygienic and quality food choice. Therefore different groups of passengers, of various religious backgrounds are increasingly seeking halal food. Policy makers and airline managers based in the South Asia region traditionally did not place a high priority on halal food, however as halal food is becoming more popular, there is increased awareness on the importance of providing halal food to clientele. There are more efforts to study how providing a halal food service can positively impact passenger satisfaction as well as play a role in determining the behavioral intentions and motivation behind passengers choosing to fly with low cost carriers (LCC). Findings .............................................................................................................................................................................................................. The findings indicate that attitude, perceived behavioral control and subjective norms have an impact towards passenger intention to purchase halal food on LCC flights. The results of factor analysis indicate that attitude is the major factor towards influencing passenger purchase intentions. Recommendations for Practitioners................................................................................................................................................................. The findings offer meaningful implications for marketing researchers and practitioners in the low cost airline industry. It can help airline companies further understand the needs and wants of existing and potential customers. Local and international airlines need to fulfill the needs of their clientele by serving more halal options on flights. Recommendation for Researchers.................................................................................................................................................................... Progress has been made in the availability of in-flight religious ethnic foods but many important research questions and technical support needs remain. Impact on Society............................................................................................................................................................................................... The research will assist to highlight purchase intention towards halal food and the importance of religious ethnic foods (e.g. halal food in this case) to meet the passenger requirements. Future Research................................................................................................................................................................................................ Future studies can be conducted to explore local and international insights towards halal in-flight food within a broader geographical areas and locations.

The competence that satisfy us: agribusiness and airlines business management cases

The airline is one of the highly intense competition, in the meantime it is the most vulnerable industry to external environment.Importantly, the service quality is remarkably affecting to the customer’s preference choosing to fly. This study aims to assess the competencies of ground service agent that affecting passenger’s satisfaction. The quantitative method was applied. The descriptive statistic, factor analysis, multiple regression, and structural equation modelling were administered. The data collected by using questionnaires from 800 passengers. The sample group divided into two groups including 400 passengers who use low-cost airline, and 400 passengers who use full-service airline operating in Thailand. The results found that the most prefer competencies from the passenger are understanding the cultural diversity with continuous learning to achieving the career path, having service-oriented mind with ethics and morals, and having a good social interaction and teamwork.

How does service quality impact the behavioral intentions of full-service airline passengers through a hierarchical model?

How does service quality impact the behavioral intentions of full-service airline passengers through a hierarchical model?

Network Robustness of Major Asian Airlines and the Impact of Airports’ Brokerage Roles

This study aims to evaluate the network robustness of major Asian airlines and to explore which airport types have the greatest impact on robustness. We also analyze airports’ specific brokerage roles and their impacts on the robustness of the entire air route network. We select 10 major Asian full-service airlines that operate the main passenger terminals at the top-ranked hub airports in Asia. Data is collected from the Official Airline Guide passenger route dataset for 2017. The results of the network robustness analysis show that Air China and China Eastern Airlines have relatively high network robustness. In contrast, airlines with broader international coverage, such as Japan Airlines, Korean Air, and Singapore Airlines have higher network vulnerability. The measure of betweenness centrality has a greater impact on the robustness of air route networks than other centrality measures have. Furthermore, the brokerage role analysis shows that Chinese airports are more influential within China and Asia but are less influential globally when compared to other major hub airports in Asia. Incheon International Airport, Singapore Changi Airport, Hong Kong International Airport, and Narita International Airport play strong “liaison” roles. Among the brokerage roles, the liaison role has a greater impact on the robustness of air route networks.