The airline has been the most profitable company for the last two consecutive years. As a result of quality service performance, UN secretary general Mr. Banki-Moon nominated the Ethiopian airline Chief Executive Officer Mr. Tewelde Gebremariam to serve as a member of his high level advisory group on sustainable transportation. (Selamta March/ April 2016,“In flight magazine of Ethiopian airline”.
1.3 Problem statement
Ethiopian airline is one of the service selling business companies. Thus, it is critically important for the airlines to measure customers’ perception and expectation of service quality because customer satisfaction is determined by many factors such as safety, punctuality, courtesy and responsiveness of the cabin, crew behaviors etc.
Fulfilling the required service quality for passengers’ is one of the value adding assets for airlines business in the
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Therefore the survival and competitiveness of the aviation industry is directly related to the profitability and profitability is a function of several qualitative and quantitative factors but one of the qualitative determining factors is that no organization can remain profitable without customers. Various strategies have been designed and implemented by Ethiopian airline to attract and retain customers, which includes introducing and timely updating with new technology, modern aircrafts, staff capacity upgrading, expansion of airports. Whatever strategy is designed and implemented profitability is the main function of the quality of services. Customer service quality is a key differentiator and a main source of competiveness in modern business environment. The cost of a poor quality is therefore unrecoverable bankrupts which is the main bottleneck for any business to
The Airline companies now a day are mainly depending on marketing to attract new customers and to maintain sustainable relationships with them by promotions, Rewards and Loyalty programs.
Customer service is a valuable influence on quality. Qantas delivers the expectations of customers by representing civil and accommodating staff members. Qantas has implemented a series of operational strategies to enhance the speed of their service. These vary from booking flights online, online check in, check in kiosks and Q Bag Tags. Dependability at Qantas is based on the consistency of on-time departures and arrivals. Flexibility is relevant to Qantas’ responses to the changes in market demand. Flexibility is demonstrated through Jetstar’s variable fare. Qantas offers customisation through its participation in the Oneworld Alliance, where it can provide its services to over 680 destinations in 134 countries. Qantas has worked on developing less costly and more efficient opportunities for its consumers by launching new discount airlines: Jetstar and Jetstar
The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B.
The Airline companies now a day are mainly depending on marketing to attract new customers and to maintain sustainable relationships with them by promotions, Rewards and Loyalty programs.
Among many organizations there are few that seem to have what it takes to be deemed as a proper company. The organization to be discussed in this paper is Southwest Airlines, one that values customer satisfaction in a changing environment and manages its organizational culture so well that it is recognized as one of the best airlines in the world. Through analysis of Southwest Airlines, the goal of this paper is to address what makes this airline so different from its competitors in multiple key areas including its culture and environment, the mission and values it holds, the work setting employees have and how they are recognized, and the management of work and life all while being creative daily to ensure Southwest is the preferred airline among others.
Service in the aviation industry is measured by on-time performance, fewest lost bags and least number of customer complaints
Customer satisfaction and service quality are the two important components that direct anyone’s attention in every concept related to marketing, services, etc. (Spreng and Mackoy, 2006). In today’s competitive era, the success lies in
result of this, no other airline in the industry’s history has enjoyed the customer loyalty and
Based on these factors, we can conclude that with the strict safety and operational rules and regulations imposed by the regulators in current political environment, stiff competition from the budget “ No Frills” carriers, the evolution of the passenger profile and airline accidents ( missing planes / air plane crashes and environmental progresses have affected the viability and profitability of the global airline industry.
From the SWOT analysis, Ryanair strength is being the leader in low cost airline industry. However this cost leadership has come at the expense of customer service. Ryanair should improve its customer service to build customer loyalty. Ryanair faces threats from competitors and substitutes mode of transportation, but should seize opportunities in the eastern European expansion.
For the engine cost, there is also a positive correlation thus; increase in this cost may also vary in the increase in average age of fleet per hour. However, on this cost, only 61% is determined in the regression equation. Like in the airframe cost, there will be additional 2.6 in cost for every hour of average age in thousands.
British Airways (BA) is a company that encountered several difficulties back in the 1970’s and 1980’s. The poor performances of the organization, was leading the company to failure. BA was offering a service that even though it accomplished the mission of the company, was not providing customer satisfaction. The organization was not taking into consideration the needs of the costumer and was not providing an acceptable customer service experience. “Productivity at BA in the 1970s was strikingly bad, especially in contrast to other leading foreign airlines” (Jick, Peiperl, 2010, p.28). Due to numerous changes, the company increased their revenues and became a respectful and well know organization.
Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and
In an airline industry, customers form the core of the organisation and this is achieved by the level of customer satisfaction by voting for the airline. This expresses confidence in the airline. The airline to meet its customers expectations needs to ensure the following is adhered to:
Service Quality as described by (William G. Zikmund, 1993) “is the degree to which the performance of service provider’s matches customer expectations. It can also be defined as those essential characteristics of a service that measures its excellence”.