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Some potential issues of service quality reporting for airlines

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  • Sim, Khim Ling
  • Koh, Hian Chye
  • Shetty, Shekar

Abstract

Prior studies have examined the value relevance of operating measures in the airline industry. These indicators, however, have been evaluated in isolation. This study adds to the extant literature by investigating the interactive effects of service quality (e.g., on-time arrivals, flight delays, mishandled baggage, and complaints) and aircraft productivity on the firm's future performance as measured by one-quarter-ahead Return on Assets or Return on Sales. Overall, results show that negative factors such as more complaints and more mishandled baggage interact with aircraft productivity to further reduce one-quarter ahead Return on Assets or Return on Sales, with the results of complaints being more pronounced. On the other hand, there is no support for the interaction between on-time arrivals and aircraft productivity.

Suggested Citation

  • Sim, Khim Ling & Koh, Hian Chye & Shetty, Shekar, 2006. "Some potential issues of service quality reporting for airlines," Journal of Air Transport Management, Elsevier, vol. 12(6), pages 293-299.
    • Handle: RePEc:eee:jaitra:v:12:y:2006:i:6:p:293-299
    DOI: 10.1016/j.jairtraman.2006.07.004
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    References listed on IDEAS

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    1. Ittner, Christopher D. & Larcker, David F. & Nagar, Venkatesh & Rajan, Madhav V., 1999. "Supplier selection, monitoring practices, and firm performance," Journal of Accounting and Public Policy, Elsevier, vol. 18(3), pages 253-281, September.
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    5. Riley, Richard Jr. & Pearson, Timothy A. & Trompeter, Greg, 2003. "The value relevance of non-financial performance variables and accounting information: the case of the airline industry," Journal of Accounting and Public Policy, Elsevier, vol. 22(3), pages 231-254.
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    Cited by:

    1. Wittman, Michael D., 2014. "Are low-cost carrier passengers less likely to complain about service quality?," Journal of Air Transport Management, Elsevier, vol. 35(C), pages 64-71.
    2. Kim, Yu Kyoung & Lee, Hyung Ryong, 2011. "Customer satisfaction using low cost carriers," Tourism Management, Elsevier, vol. 32(2), pages 235-243.
    3. Chen, I-Shuo, 2016. "A combined MCDM model based on DEMATEL and ANP for the selection of airline service quality improvement criteria: A study based on the Taiwanese airline industry," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 7-18.
    4. Chandra Mahapatra, Subas & Bellamkonda, Raja Shekhar, 2023. "Higher expectations of passengers do really sense: Development and validation a multiple scale-FliQual for air transport service quality," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    5. Liou, James J.H. & Yen, Leon & Tzeng, Gwo-Hshiung, 2010. "Using decision rules to achieve mass customization of airline services," European Journal of Operational Research, Elsevier, vol. 205(3), pages 680-686, September.

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