Strategic imperatives and the pursuit of quality in the US airline industry

Abstract

Purpose The purpose of this paper is to explore the changing face of airline quality by analyzing the reported service and safety data for the traditional and low cost carriers. Design/methodology/approach Data were gathered from Department of Transportation records on service and safety quality from 1996‐2004. A safety rate was calculated for each carrier by adding accidents, incidents, near mid‐air collisions, and pilot deviations and dividing the total number by yearly departures. The service rate was calculated by adding all complaint categories and dividing by yearly departures. Averages and confidence intervals were calculated. Analysis of variance was performed on group means. Findings The findings of this study indicate that the low cost carrier group examined here has closed the gap on its traditional rivals in the area of safety quality, posting safety rates that are not statistically different from the traditional carriers over the period of this study. On the other hand, it has not as a group yet addressed the problem of basic service quality, posting a statistically lower level of quality (as measured by consumer complaints). Research limitations/implications The study did not specifically examine airline amenities such as seat pitch, schedule, meals, or in‐flight entertainment. Practical implications Low cost airlines appear well placed to continue taking market share away from their traditional rivals who continue to struggle with high costs. Originality This paper is the first to examine the changing dynamics between traditional and low cost carriers following September 11.

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