IJQRM
12,2
54
A multivariate analysis of
airline flight delays
Vasanthakumar N. Bhat
Pace University, New York, USA
Introduction
Low price alone is not sufficient to compete in a deregulated airline market.
Consumers do make decisions about airlines based on their experience and
perception about an airline’s customer service. Unlike a tangible product, a
dissatisfied customer can neither ask for refund nor exchange a flight, once
performed. Therefore, the only option a dissatisfied customer has is not to fly
with that airline in future. Therefore, airlines constantly collect and monitor
data on customer satisfaction. For example, British Airways has installed video
point booths at Heathrow Airport to encourage passengers to express their
opinions about a flight on which they have just arrived. The cost of acquiring
new customers is rising. Retaining existing customers has become critical to
maintain current market share in an almost saturated market. Many airlines
have introduced frequent flyer programmes to increase brand loyalty among
passengers and reduce their defection to competitors. Long-term customers are
profitable customers. They recommend new passengers to an airline at virtually
no cost. Improving customer satisfaction, therefore, is an effective way to retain
a passenger who otherwise would have gone to a competitor.
Since deregulation in 1979 in the USA, the airline industry has been in a
continuous flux. More than 200 large and small airlines have failed. In the last
two years alone, six out of 11 major airlines were liquidated. Currently, several
airlines are financially weak. Since deregulation, airlines have changed
dramatically in terms of financial structure, number of employees, plane mix
and so on. Debate is also being waged about customer service. Policy makers
feel that weak financial conditions are forcing airlines to cut corners on
passenger service. However, a variety of factors influence customer service. The
purpose of this article is to analyse the effects of financial and operating
variables on airline delays. Several factors represent customer service. On-time
performance, schedule reliability, quality of food, fare, frequency of flights, time
of flight, baggage delivery and cabin service are some factors that represent
customer service. However, unlike other factors, airlines do not have complete
control over factors that cause delays. Bunching of flights, air traffic control
procedures, weather, and inability of air traffic control systems to keep pace
with the increased demand, are some factors beyond an airline’s control that
cause delays. However, these factors affect every airline. Therefore, if an airline
can excel over others, then it is definitely providing superior service to its
customers. Such an identification can help regulators to come up with policy
options to improve customer satisfaction.
International Journal of Quality
& Reliability Management,
Vol. 12 No. 2, 1995, pp. 54-59,
© MCB University Press,
0265-671X
Received December 1993