Some potential issues of service quality reporting for airlines

Document Type

Article

Publication Title

Journal of Air Transport Management

Publication Date

11-1-2006

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. © 2006 Elsevier Ltd. All rights reserved.

Volume

12

Issue

6

First Page

293

Last Page

299

DOI

10.1016/j.jairtraman.2006.07.004

ISSN

09696997

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