Postulates that the use of some key ideas from statistical control thinking can improve service quality. Explores the identification and analysis of gaps in perceptual differences between service customers and service providers as a way of adopting a statistical control philosophy in a service environment. Argues that such a method provides excellent information for creating a true customer‐centred approach to service delivery, being practical, simple in operation and useful for both immediate and long‐term strategic impact.

Education Counselor. Dr. Bowen has authored/co-authored numerous successful grand proposals totaling awards exceeding $25 million and has in excess of 300 publications, papers and professional program appearances to his credit. His research interests focus on aviation applications of public productivity enhancement and marketing channels, specifically in the areas of service quality evaluation, benchmarking, safety and security. Dr. Bowen is an active industry consultant, pilot, and former fixed-base operator and scheduled air carrier operator. Dr.

ABSTRACT

Enhancing competitiveness in the global airline industry is at the forefront of attention with airlines, government, and the flying public. The seemingly unchecked growth of major airline alliances is heralded as an enhancement to global competition. However, like many mega-conglomerates, mega-airlines will face complications driven by size regardless of the many recitations of enhanced efficiency. Outlined herein is a conceptual model to serve as a decision tool for policy-makers, managers, and consumers of airline services. This model is developed using public data for the United States (U.S.) major airline industry available from the U.S. Department of Transportation, Federal Aviation Administration, the National Aeronautics and Space Administration, the National Transportation Safety Board, and other public and private sector sources. Looking at historical patterns of Airline Quality Rating results provides the basis for establishment of an industry benchmark for the purpose of enhancing airline operational performance. Applications from this example can be applied to the many competitive environments of the global industry and assist policy-makers faced with rapidly changing regulatory challenges.

This article presents a brief summary of the Airline Quality Rating (AQR) methodology, AQR results for 1991 and 1992, an oveIView of the Statistical Process Control (SPC) method, and its application to AQR data. Due to the AQR monthly quantitative data, AQR scores can be used to create an SPC chart that, in tum, provides a means for developing standard levels of quality for individual airlines and for the industry.The AQR was developed and first announced in early 1991 as an objective method of comparing airline performance. The AQR combines multiple quality factors important to consumers into a single numerical score. Development history and calculation details for the AQR rating system are detailed in The AQR