An integrated SWOT based fuzzy AHP and fuzzy MARCOS methodology for digital transformation strategy analysis in airline industry

Driven by business strategies, digital transformation (DT) facilitates dramatic change in air passenger behavior. This study aims to determine and analyze different DT strategies (DTSs) with the help of an integrated SWOT-based fuzzy AHP-MARCOS methodology that is proposed for the first time in the literature for this purpose. This methodology is validated with a case study concerning the airline industry in Turkey. The weights of the SWOT factors are determined with the fuzzy AHP method. The fuzzy MARCOS approach is used to select the most suitable DTS. The most appropriate strategy is obtained as “focusing on differentiated digital customer experience and service quality by the adaptation of business models to DT to provide benefits”.     

FIPIA with information entropy: A new hybrid method to assess airline service quality

This study proposes “FIPIA with information entropy” as a new, hybrid method to assess airline service quality by identifying the most important priorities for airline passengers and producing recommendations to airline management for optimal resource allocation to improve service quality and customer satisfaction. The proposed method is an improvement over IPA, IPIA and FIPA methods, through the introduction of information entropy and fuzzy logic to the analysis of importance, performance and impact dimensions of airline service quality to improve interpretability and actionability of analysis results. This study also offers airline managers a list of what they should improve in resource allocation in order to increase service quality considering customer satisfaction and create value by managing the relational capital more effectively. The new hybrid method was field-tested by administering a 26-item questionnaire to passengers of a major airline operator, analyzing the responses using the Importance-Performance-Impact Analysis (IPIA) method, fuzzy logic and information entropy. The analysis revealed four main dimensions of airline service quality, namely reliability, assurance, tangibles, empathy and responsiveness with 17 constituent attributes. The case study revealed that (1) resource allocation was adequate only on four attributes; (2) seven service quality attributes were identified as needing further management focus on resource allocation; (3) six service quality attributes received more resources than necessary which should be shifted to other attributes; (4) dimensions of reliability and tangibles needed more focus than others. The proposed hybrid method of FIPIA with information entropy can be employed for any industry where service quality depends on multiple attributes.     

A non-additive model for evaluating airline service quality

This study develops a non-additive model for evaluating and improving the service quality of airlines and compares its results with the conventional additive method. Service quality is a composite of various attributes and many in a system have inter-dependent characteristics that may not be correctly evaluated using conventional additive measures. A fuzzy integral is thus proposed. Factor analysis is initially used to extract some independent common-factors and fuzzy integral used to integrate the performance ratings of inter-dependent attributes in each common-factor. For the analytic hierarchy process a pair-wise comparative approach is adopted to determine the relative weights linking each independent common-factor. Finally, Grey relation analysis and simple additive weight method are used to find airline service quality. A study of international airlines is conducted for verification. Safety and reliability emerge as the critical factors of service quality.     

Dynamic carbon emission performance of Chinese airlines: A global Malmquist index analysis

Monitoring the carbon emission performance of Chinese airlines helps inform targeted carbon-reduction policies. This paper proposes a global Malmquist carbon emission performance index (GMCPI), which can measure dynamic changes in total factor carbon emissions performance over time using a production frontier framework. The study then applied the proposed index to evaluate carbon emission performance of 12 Chinese airlines from 2007 to 2013; the study also proposed bootstrapping GMCPI to perform statistical inferences on the GMCPI results. The empirical study generated in three meaningful findings. First, the carbon emission performance of the airlines improved by 11.93%, mainly through technological progress. Second, there were carbon emission performance differences among three different airline types; there was also a convergence of carbon emission performance. Third, the most important factor influencing carbon emission performance was the air routes distribution. Chinese airlines should consider improving carbon emission performance further, by establishing an evaluation system, enhancing communication and coordination among different airlines, adjusting the scale of airline development, and optimizing the air routes distribution.     

A voice in the skies: Listening to airline passenger preferences

This study aims to identify the impact levels and priorities in the service expectations that passengers have when identifying a preferred airline. The results are based on probabilities and impacts, and can help airlines to accurately understand the preference criteria of their passengers. The priorities of the passengers may differ according to the airline chosen; therefore, the probabilities shown in this study can inform senior airline managers about the passenger perspective. This study uses the Stochastic Multicriteria Acceptability Analysis-2 (SMAA-2) method. SMAA-2 identifies the priorities and impact levels of passengers’ expectations on airline selection, and the ranking of alternative firms according to the probability. According to the obtained results, Airline 3 (AF₃) is the most preferred airline with the highest confidence rate. This airline operates based on a low-cost model that allows passengers to choose additional services for additional charges. The passenger expectations that have the highest impact on the preference when selecting an airline are 1) ticket prices, 2) punctuality, and 3) booking convenience. Free in-flight food and beverages, the variety and quality of the food and beverages, and voyager miles programs for loyal customers are found to have no impact on the ranking of airlines. The expectations identified by the passengers in this study are related to the outcome quality dimension, with services dominated by flexible features. The findings of this study define the passenger as a rational decision maker who is price sensitive.     

The impact of an aircraft's service environment on perceptions of in-flight food quality

Airlines are currently striving to improve the quality and quantity of in-flight food, because research has shown that catering is a key attribute for a customer's satisfaction with airline service quality. But the role of an airline's service environment in forming customer perceptions about food quality has not yet been properly investigated. Using electronic word-of-mouth data from N = 3996 airline passengers, this study deploys a linear regression model at multiple levels to relate perceived in-flight food quality with both the overall service environment and its formative components. The results clearly unveil the importance of an aircraft's service environment on perceived in-flight catering quality; perceptions of food quality are primarily influenced by the quality of cabin staff service, followed by entertainment and seat quality. Instead of continuing with the current practice of signing up top chefs to improve menus, airlines may instead consider putting their management focus on service improvements.     

A novel interval-valued fuzzy MCDM method for improving airlines’ service quality in Chinese cross-strait airlines

This paper presents an effective approach based on combining VIKOR, GRA, and interval-valued fuzzy sets to evaluate service quality of Chinese cross-strait passenger airlines via customer surveys. The proposed approach can enable decision-makers to understand the gaps between alternatives and aspired levels. An empirical study is used to establish a complete service quality evaluation framework for reducing the gaps to achieve the aspired level. Based on the gaps in priorities, it can help an airline to identify its own strengths and weaknesses in specific areas of passenger service to further improve service quality.     

A hybrid approach based on fuzzy AHP and 2-tuple fuzzy linguistic method for evaluation in-flight service quality

The in-flight service is one of the most important parts in the whole air travel service process. In order to better understand the passengers' preference and obtain their perception for service quality, the paper proposed a hybrid approach based on fuzzy AHP and 2-tuple fuzzy linguistic method to evaluate in-flight service quality. This study is comprised of three stages. In the first stage, the modified version of SERVQUAL instrument was used and a hierarchy of the evaluation index system for in-flight service quality was constructed. In the second stage we use fuzzy AHP to analyze the structure of the in-flight service evaluation problem. Using linguistic variables, pairwise comparisons for evaluation criteria and sub-criteria are made to determine the weights of criteria and sub-criteria. In the third stage, the ratings of sub-criteria are assessed in linguistic values to express the qualitative evaluation of passengers' subjective opinions, and then the linguistic values are transformed into 2-tuples and the 2-tuple linguistic arithmetic mean operator is utilized to obtain the average ratings of 100 respondents. Using the 2-tuple linguistic weighted average operator to compute the aggregated ratings of criteria and the overall in-flight service quality of alternatives. Finally, we demonstrated the validity and feasibility of the proposed approach by conducting an application study of the comprehensive performance of three airlines' in-flight service quality in China.     

Passenger perceptions of service quality: Korean and Australian case studies

This paper investigates air passengers’ perceptions of 11 factors that may influence their buying behaviour namely, in-flight service, reservation-related service, airport service, reliability, employee service, flight availability, perceived price, passenger satisfaction, perceived value, airline image, and overall service quality. Analysis of variance and an independent sample t-test are applied to data collected from Korean and Australian international air passengers. The results reveal that passenger perceptions are significantly different across airlines, seat classes, and usage frequencies.     

Synergy of corporate social responsibility and service quality for airlines: The moderating role of carrier type

The potential exists for airlines' confronting challenges when providing high quality service while simultaneously adopting corporate social responsibility (CSR) in a cost efficient manner. This study explores synergistic effects of CSR and service quality on firms' performance in the U.S. airline industry. In particular, the examination involves synergistic effects according to types of air-carriers: low-cost carriers (LCCs) and full-service carriers (FSCs). Findings reveal: 1) a positive synergistic effect of service quality and CSR for FSCs, and 2) a negative synergistic effect of service quality and CSR for LCCs. These findings suggest that although improving service quality is apparently crucial, the improvement does not always increase firm performance when integrated with CSR activities. This study provides important implications for airline firms, suggesting efforts toward development and implementation of a strategy that can optimize competitive advantages.     

Service quality in a mid-sized air terminal: A SEM-MIMIC ordinal probit accounting for travel,sociodemographic, and user-type heterogeneity

Service quality of the airline industry is still unexplored, if compared to the public transport service quality literature. In this paper, we propose an analysis of the services provided by an Italian airport based on an SEM approach. Specifically, we propose a SEM-MIMIC ordinal Probit capturing the heterogeneity in perceptions of air transport passengers and identify groups of passengers with similar assessments of the services. Results suggest the presence of four constructs affecting the overall satisfaction at the terminal, namely information, control, environment, and food service. Results also suggest that there are two different user-types: accessory user (who uses ticket office, luggage trolleys, and escalator lifts), and technology user (who uses charging stations, airport website, and airport wi-fi).     

Service quality and non-salary mechanism for airline companies in Taiwan

Based on the affective events theory (AET), this study demonstrates how family-supportive organization perceptions (FSOP) and psychological detachment predict strain symptoms (the need for recovery and emotional exhaustion) and how the strain symptoms influence service quality. With data collected by convenience sampling from 206 airline employees, our results show that FSOP negatively influence strain symptoms, while psychological detachment mediates the relation between FSOP and the need for recovery. Although the need for recovery has no significant relation with service quality, emotional exhaustion does have a significantly negative association with service quality. Our contributions are more comprehensive for the literature on human resources, organizational behavior, and airline transportation. Moreover, based on the theory, our research fills the gap between FSOP and service quality by adding the strain symptoms as important mediation variables. The results can also be put to practical use on employment policies, such as retaining excellent employees in an organization and increasing an organization's competition advantages. The results may also apply to human resource management (HRM) and present that improvement in service quality is the most important competitive ability for the airline industry.     

A time–space network model for unit load device stock planning in international airline services

Unit load devices (pallets, containers, etc.) are used to move luggage and air cargo on wide-bodied aircraft. This paper examines a case study of the number of devices needed by an airline for international scheduled services. Unit load device movements between airports require planes to load and deliver. The stock of the unit load devices is thus influenced by the airline’s scheduled services. Based on a recurring weekly schedule, this study develops a time–space network to formulate mathematical programming models for minimizing device quantities. This model is applied to assess the preparation level of unit load devices for the various service networks for a Taiwanese airline.     

Investigating the effects of service recovery quality elements on passengers' behavioral intention

This study intends to analyze how the elements of restoring the quality of airline service influences the airline image, recovery satisfaction, and behavioral intentions of airline passengers. For this testing, a survey was conducted on passengers with an experience of dissatisfaction of airline services. A total of 240 responses were analyzed by using structural equation modeling. The results revealed that among the recovery quality elements, promptness had a positive influence the image of the airline. Additionally, a recovered image of the airline had a positive influence on the recovery satisfaction and behavioral intention. The findings of this study may improve our understanding of consumer responses to the airline company's efforts to recover service failure.     

Modeling aggregate air-travel itinerary shares: logit model development at a major US airline

This study reports the results of aggregate air-travel itinerary share models estimated at the city-pair level for all city-pairs in the US. These models determine the factors that influence airline ridership at the itinerary level and support carrier decision-making. The models are estimated using aggregate multinomial logit methodology and use comprehensive data. Independent variables for the models measure various itinerary service characteristics: level-of-service, connection quality, carrier, carrier market presence, fares, aircraft size and type, and time of day. The results are intuitive, and validation tests indicate that the models outperform existing methods. Finally, the impacts of changing various itinerary service attributes on carrier market share are discussed.     

Examining airline service quality from a process perspective

Airline service is composed of a set of processes. Passengers may have distinct expectations at different stages of the service chain. In this study, air travel was divided into ground and in-flight service stages. We first examined the gap between passengers’ service expectations and actual service received and the gaps associated with passenger service expectations and the perceptions of these expectations by frontline managers and employees of a Taiwanese airline. Next, importance–performance analysis was used to construct service attribute evaluation maps to identify areas for improvement. Results revealed that these gaps did exist and passengers were more concerned about the responsiveness and assurance dimensions from airline frontline staff. The tangibles dimension was considered more important when evaluating in-flight service quality than when evaluating ground service quality.     

A method for reducing information asymmetry in destination–airline relationships

We propose a measure of business risk in air travel demand at the route level that can reduce information asymmetry during route development negotiations between tourism destinations and airlines. Aviation-exposed risk (AER) conveys information about the level of uncertainty with regard to air travel demand from an airline’s perspective. Using AER, tourism destinations and air service development teams can evaluate their risks from the perspective of the airline and its network. From there, an assessment can be made as to the value of air services in certain circumstances, including whether a direct underwrite or risk share between airlines and destinations is viable and necessary. By applying a portfolio analysis to an airline’s network, we find evidence that AER does indeed mimic the actual capacity distribution of the network. This provides support for AER as a useful risk measure to be used in practice.     

Four decades of airline productivity and efficiency studies: A review and bibliometric analysis

Airline productivity and efficiency have remained an area of tremendous interest among both academics and industry analysts since the Airline Deregulation Act of 1978 was enacted in the United States. This paper provides a bibliometric analysis of airline productivity and efficiency studies during the period from 1979 to 2020. The results show that the Journal of Air Transport Management, Transportation Research Part A, and Transportation Research Part E were the top three outlets preferred for publications in this area during the study period, and productive authors were likely to produce influential works. Research interest in airline productivity and efficiency has spread to encompass more diversified geographical regions over time, and new researchers from a broad range of fields continue to become interested in this field of research. Data envelopment analysis and stochastic frontier analysis are shown to be the most popular methods used by researchers, and studies are increasingly attempting to incorporate undesirable outputs, such as carbon emissions, flight delays and accidents, into the measurement and analysis of airline performance. The results from this study can provide guidance for future research issues and directions.     

Service quality and customer satisfaction of a UAE-based airline: An empirical investigation

This paper investigates the linkages among service quality, service provider image, customer expectations, perceived value, customer satisfaction and brand loyalty in a Dubai-based airline. Initially, the determinants of service quality were identified utilizing the SERVQUAL framework with some modification. Service quality was then used as an antecedent to measure customer satisfaction, a condition which can bring about brand loyalty. In a research initiative using a quantitative approach, data from 253 questionnaires was analyzed. Using structure equation modeling, the data analysis suggests that service quality, perceived value, and brand image have a positive significant impact on customer satisfaction, which can in turn lead to brand loyalty. Theoretical and managerial implications are discussed.     

The relationship between on-time performance and airline market share: a new approach

We propose a new method of modeling the relationship between on-time performance and market share in the airline industry. The idea behind the method is that the passengers’ decision to remain (use same airline) or switch (use other airlines) at time t depends on whether they have experienced flight delays at time t−1 or not. More specifically, we posit that the passengers who experienced flight delays are more likely to switch airlines for the subsequent flight than those passengers who did not experience delays. To capture such effect, we develop an aggregate-level Markovian type model that estimates the transition probability matrices separately for the passengers who experienced flight delays at time t−1 and for those who did not experience delays. The model was calibrated with the US DOT data. The study results imply that, once experiencing flight delays, passengers are more likely to switch airlines. The results also imply that on-time performance affects a carrier’s market share primarily through the passengers’ experience, and not though the “advertisement” of performance.