Service Quality, Passenger Expectations and Profitability in the Chinese Airline Industry

Kong Wing Clement CHOW, Ka Yiu Michael FUNG

Research output: Book Chapters | Papers in Conference ProceedingsBook Chapter

1 Scopus Citations

Abstract

Service quality has become an important area for competition among Chinese carriers. This paper focuses on studying the relationship between customer satisfaction measured by customer complaints and their expectation of the on-time performance of Chinese carriers and how the customer complaints affect the financial performance of carriers. By using a quarterly balanced panel data set covering six large listed carriers, the empirical results show that an increase in actual on-time performance reduces customer complaints. However, an increase in expected on-time performance significantly raises customer complaints. An increase in customer complaint reduces the yield measured as revenue per revenue ton kilometer (RTK) of carriers.
Original languageEnglish
Title of host publicationAirline Economics in Asia
EditorsXianwen FU, James PEOPLE
PublisherEmerald Group Publishing Ltd.
Chapter9
Pages169-194
Number of pages26
Volume7
ISBN (Electronic)9781787545656
ISBN (Print)9781787545663
DOIs
Publication statusPublished - Nov 2018

Publication series

NameAirline Economics in Asia
Volume7
ISSN (Print)2212-1609

Keywords

  • Customer complaints
  • Customer expectation of service quality
  • On-time performance of scheduled flights

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  • Cite this

    CHOW, K. W. C., & FUNG, K. Y. M. (2018). Service Quality, Passenger Expectations and Profitability in the Chinese Airline Industry. In X. FU, & J. PEOPLE (Eds.), Airline Economics in Asia (Vol. 7, pp. 169-194). (Airline Economics in Asia; Vol. 7). Emerald Group Publishing Ltd.. https://doi.org/10.1108/S2212-160920180000007010