CONSUMER BEHAVIOUR

Service Quality Perceptions of Domestic
Airline Consumers in India:
An Empirical Study

SUBMIITED TO:
MEENAKSHI HANDA

BY:
SAHIL MALHOTRA (13)
RAHUL KALRA (39)

Abstract

Pricing and service quality are the key variables that decide the brand equity of each player in the airline industry. Existing literature suggests that measurement and management of service quality is the key for survival of airline companies. This research paper examines the service quality delivered by four major airlines in India on the backdrop of stiff competition in the airline service sector. The process of traveling on a domestic airline was divided into pre-flight, in- flight and post-flight experiences. A survey was conducted to find out the perceived service quality of frequent fliers on each of the four airlines across a series of service performance variables. The airline brands were positioned in a perceptual space, where the perceived service attributes were also mapped. Clear differences emerged among the airlines, with two of them perceived as being similar to each other, and the other two differing in many respects.

INTRODUCTION

India at present has twelve competing airlines in the domestic market as against a single government owned airline in 1991. According to McKinsey Quarterly (2005), the Indian aircraft market is the world’s second largest commercial aircraft market. On-time performance and service levels have risen dramatically and fares have dropped. Passenger traffic is expected to grow by 20 percent annually over the next five years. Only a small percentage of India’s population travels by air partly due to the high costs of domestic flying. According to the Center for Asia Pacific Aviation (CAPA) consultancy, new players will help domestic passenger numbers. The players in the current airline market include airlines like Air