Assessing airlines: quality as a competitive variable

Abstract

Price is no longer the sole variable affecting consumer choice in the airline sector. Service quality, which has been analyzed from a range of perspectives, is of increasing importance in this market. Airlines provide a transportation service (typically for purposes of tourism) and so analyzing passenger assessments has become crucial in this competitive industry. This paper seeks to determine the factors that account for airline passengers' perceptions of the quality of service they receive. Drawing on data from a survey of more than 35 airlines worldwide in two years, we find that perceived quality increases for larger companies that concentrate their operations on a few routes. Regional airlines receive the worst assessments, while we find no marked differences between low-cost and network airlines. The weak financial conditions of a company are also found to reduce the perceived quality of the airline.