Choice between Full-Service Carriers and Low-Cost Carriers – Assessment of Relative importance of Attributes using Analytic Hierarchy Process

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V V Subrahmanyam, Dr. R Satish Kumar

Abstract

US Congress  was the first to deregulate and liberalize aviation sector way back in 1978. The concept spread to other countries soon after. This has changed outlook of aviation industry across the world. A by-product of these initiatives is the birth of Low-Cost Carriers (LCCs) pioneered by Southwest airways in USA. With innovative ideas and dynamic business practices, LCCs ushered an era of wider network, high competition, improved efficiencies, and affordable  airfares. While the Low-Cost Carriers achieved a major market share across the world, India has the distinction of being among the top.


Studies have been carried out to identify factors which influence the passengers while choosing an air carrier. While numerous articles and research papers are published on this subject across the globe, unfortunately, there is hardly any comprehensive study carried out in Indian context.


To fill this gap, the authors have carried out a Pilot study to identify factors which influence passengers while choosing an air carrier and rank them in the order of importance. Analytic Hierarchy Process (AHP) has been chosen to analyse the data. The hierarchy consists of Goal i.e., choice between Full-Service Carriers & Low-Cost Carriers at level-1, five Dimensions at level-2, and 21 Attributes at level-3. The Pilot study revealed that, Safety Record followed by Brand image, Reliability, Response to Customer complaints, Schedule convenience, and Punctuality are the top five important attributes in that order.

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How to Cite
V V Subrahmanyam, Dr. R Satish Kumar. (2023). Choice between Full-Service Carriers and Low-Cost Carriers – Assessment of Relative importance of Attributes using Analytic Hierarchy Process. European Economic Letters (EEL), 13(1s), 144–172. Retrieved from https://www.eelet.org.uk/index.php/journal/article/view/518
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