ORGANIZATIONAL STRUCTURE ENHANCING AIRLINES EFFIECEINCY AMID THE PANDEMIC: LOW-COST CARRIERS IN THAILAND AS A CASE

The pandemic of COVID-19 has extreme impact than the intense competitors in airlines industry that never turn up in history. It derailed all airlines’ operations, company’s structure, strategy, and its markets which is highly impact to Thailand’s tourism industry. The purpose of this study is to assess the managerial practices of low-cost carriers (LCCs) to enhance the organization’s performance during COVID-19. The managerial practices concern with strategic human resources management, organizational culture, high competence personnel, and risk management affect to organizational structure. The quantitative was administered to four anonymous low-cost airlines operating in Thailand. Questionnaires were used to collect data from 150 person of each airline, hence there were 600 samples in total. The descriptive statistic and path analysis were applied. The results found that LCCs stressed greatly on the high competence personnel, followed by organizational culture, risk management, and strategic human resource management affecting organizational structure that led to efficiency and competitiveness of organization. To investigate the effect of management issues of strategic human resources management (SHRM), organizational culture (OC), high competence personnel (HQP), and risk management (RM) on low-cost carriers (LCC) in Thailand toward organizational structure (OS) which result to the competitiveness of high-performance organization (CHPO). The quantitative approach was employed by using structural equation modelling for path analysis. The data was collected by using questionnaires. There were 600 samplings from four anonymous low-cost airlines. The results found that LCCs stressed greatly on the high competence personnel, followed by organizational culture, risk management, and strategic human resource management affecting organizational structure that led to competitiveness of organization. The authors would recommend LCCs to refocus its practices to strategic human resource management during the crisis. Since, the human resource management is dealing with organization changes through the leadership and organizational culture. Finally, researchers have developed the model creating organizational structure.

Impact of Service Quality of Low-Cost Carriers on Airline Image and Consumers’ Satisfaction and Loyalty during the COVID-19 Outbreak

Low-cost carriers (LCCs) in Saudi Arabia operate in a competitive, highly demanding environment. Customer-related attributes may be influenced by the levels of service quality in a no-frills airline, which might impact satisfaction and loyalty. Given the unique traveler and market characteristics of the aviation sector in the kingdom, we sought to investigate the impact of service quality of LCCs on customer satisfaction and loyalty and the perceived airline image. A total of 299 passengers at two international airports were approached using a modified SERVQUAL scale. Results revealed that service quality was a significant predictor of customer satisfaction (β = 0.46, p < 0.0001), airline image (β = 0.55, p < 0.0001), and customer loyalty (β = 0.16, p = 0.006). The responsiveness dimension was the most important dimension of service quality, since it predicted all other constructs (satisfaction, loyalty, and brand image). Airline tangibles and reliability were independently associated with brand image and loyalty, respectively. Based on these results, LCCs should tailor future strategic plans that rely heavily on improving different service quality measures, particularly the responsiveness domain.

The mediating role of passenger satisfaction on the relationship between service quality and behavioral intentions of low-cost carriers

PurposeBy extending the existing service quality dimensions and reflecting the low-cost carriers (LCCs) context, the purpose ot this study aims to develop the research model to examine whether passenger satisfaction mediates the relationship between service quality and behavioral intentions of LCCs across low- and high-experience passengers.Design/methodology/approachData collected from 320 passengers (180 for low-experience passengers and 140 for high-experience passengers) to test the research model. The partial least square structural equation modeling approach was used to perform the path modeling and multi-group analysis.FindingsThe results confirm that passenger satisfaction mediates the relationship between four service quality constructs (tangible features, service reliability, quality of personnel and online ticketing service) and behavioral intentions (repurchase and recommendation intentions) for both low- and high-experience passengers. However, convenient flight schedule has a significant influence on passenger satisfaction only for low-experience passengers.Practical implicationsThe results of multi-group analysis indicated that passenger satisfaction exerts stronger effect on recommendation intentions for low-experience passengers. LCCs managers' priority should be placed on providing satisfying service experiences to less experienced passengers. Improved passenger satisfaction through superior service quality motivates low-experience passengers to recommend LCCs, thus increasing the positive word-of-mouth promotion.Originality/valueTheoretically, this study is first considering both low- and high-experience LCCs passenger perceptions to examine how passenger satisfaction mediates the relationship between service quality and post-purchase intentions. From the managerial perspective, the findings can provide useful management insights into developing multi-faceted strategies that allow LCCs firms to restore passenger confidence and retain their repurchase intentions.

Mind the Gap: Examining the Gap in International Passenger Expectations and Perceptions of Service Quality in Low-cost Carriers

Meeting or exceeding passengers' service quality expectations has become a critical factor for lowcost carriers (LCC). Still, only limited efforts have been made to date to investigate the differences (gap) in LCC passengers' expectations and perceptions. A comprehensive 25-item SERVQUAL framework for LCC was first developed through an extensive literature review and insights obtained from exploratory interviews and focus groups with passengers and industry experts. Using survey data of LCC passengers, the validity and reliability of the framework were first established, and then the differences in the expectations and perceptions were understood. The results indicate that none of the service quality attributes of LCCs have met, let alone exceeded, expectations, and the most significant gaps were found for "reliability" and "responsiveness" dimensions. With the growing global demand for budget travel and new LCCs entering the market, the study provides timely insights for LCCs to narrow the expectation–perception gap and achieve competitive advantage.

Seat assignment problem with the payable up-grade as an ancillary service of airlines

The de-bundling and re-bundling of service products offered by low cost carriers from service innovation have become 'à-la-carte' services and chargeable ancillary services to generate additional revenues in the airline industry. In this paper, we focus on the payable upgrade option in airlines to increase revenue when customers' demands are uncertain. This study is as an extension of planned upgrade, which guarantees the use of low-quality services at a low price, but requires customers to pay to use upgraded benefits. In this paper, we focus on the seat assignment problem with the payable upgrade option to maximize revenue. Also, we set the condition under which payable upgrade options can generate more revenue. Furthermore, applying Belobaba's EMSR approach, we suggest an effective seat assignment method for multiple fare classes with a payable upgrade option to increase the total revenue. With a simple numerical example, we find that introducing a payable upgrade option can increase the revenue. Our method for allocating seats for multiple fare classes with a payable upgrade option can contribute effectively to revenue increases in airlines' branded fare products, as well as in other service industries.

Evaluating and Exploring Successful Disruptive Innovation in the Aviation Industry From the Perspective of Consumers

Since Southwest Airlines' disruptive innovation was introduced, low-cost carriers (LCCs) have had a prominent impact on the aviation industry. Therefore, considerable attention has been paid to the LCC model. However, it is still not clear whether it is a successful disruptive innovation, or what factors and differentiation points for successful LCC service exist from the passengers' perspective. As this study's methodology, quantitative and qualitative content analyses are conducted using the word-of-mouth data of 1,854 passengers of 20 airlines. This study found that the LCC model is perceived as a successful disruptive innovation from the passengers' point of view. For successful LCC service, LC airlines should offer higher quality services than passengers' expectations using basic service elements. Also, good staff characteristics, leaving a professional impression, and providing good optional services could play a role as differentiation tools.

The Effect of Retail Mix on Passengers’ Motivation to Shop at AirportTerminal Outlets

Retailing represents one of the commercial activities contributing to the non-aeronautical source of revenue to most airport operators. In this research, Kuala Lumpur International Airport 2 or better known as KLIA2 represents the focus of the study. KLIA2 is built to cater to low-cost carriers and the airport is built on the concept of ‘a mall in the airport'. There are two commercial areas designated for passengers to shop: gateway@KLIA2 and terminal outlets. These create more choices for passengers to shop and at the same time increase competition among the retailers. Focusing on the terminal outlets, this study aims to examine the influence of airport retail mix elements on passengers’ motivation to shop. The factors examined were the location of the outlets, promotion, personnel, atmosphere of the outlets, product mix and price. The study utilized survey method and questionnaire was designed to gather data from departing passengers for both domestic and international sectors. The self-administered questionnaires generated a total of 307 usable responses. Data were analyzed using SPSS. The result of multiple regression analysis showed that the key airport retail mix element which motivates passengers to shop is the location of the outlet, followed by promotion and product mix. Recommended strategies for airport retailing were highlighted