Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines
Introduction
The aim of this paper is to compare passengers’ selection criteria between a full service airline and a low cost carrier in a mature European market and in a rapidly growing Asian economy. Surveys have been undertaken to ascertain why passengers are choosing one particular airline over another. This paper contributes to the literature by examining the differences in passengers’ perceptions between the two airline models in contrasting geographical markets.
The paper begins by examining the background of the selected carriers including traffic carried and operating cost performance. It then concentrates primarily on the surveys that were conducted in Europe and Asia, highlighting key findings such as passenger characteristics, journey purpose, booking methods, fares, connecting traffic, carrier choice criteria and types of trips undertaken in the previous 12 months.
Section snippets
Background of the airlines surveyed
Low cost carriers have reshaped the competitive environment within liberalised markets and have made significant impacts in the world's domestic passenger markets, which had previously been largely controlled by full service network carriers. In Europe, 14% of available seat miles are now provided by low cost airlines, with the two largest players easyJet and Ryanair accounting for nearly 9%. These carriers have pursued simplicity, efficiency, productivity and high utilization of assets to
Methodology
Using a similar methodology to that adopted by Mason (2001) and Turner (2003), data was collected in each of the two regions from two large groups of passengers, one flying with a low cost carrier and the other an incumbent. Both groups were travelling to the same city destination, but not necessarily to the same airport. There has been no previous research on passengers’ perceptions of low cost carriers in Asia.
The airlines surveyed were Aer Lingus and Ryanair operating in the mature European
Survey findings
As expected, the low-cost carriers attracted a high number of younger people, with 24% of the Ryanair passengers surveyed and 47% of Air Asia's being in the under 24 years age group. Eighty-seven percent of this age group were travelling for non-business purposes that included visiting friends/family and trips to/from places of education. Parents mostly paid for these trips. For the 25–58 year age group, which represented 84% of those surveyed, passenger choice changed considerably in favour of
Concluding comments
Two contrasting markets have been examined in this paper; the first, a mature Europe, where liberal skies have allowed low cost carriers to establish traffic hubs across international boundaries, and the second, an Asian economy, where strict bilaterals act to constrain such network developments.
The survey has revealed that while there are differences between passengers travelling on a low cost carrier and those on a full service airline, there appears to be no difference in the attitude and
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