A note on the determinants of airline choice: The case of Air Asia and Malaysia Airlines

Ong, Wooi Leng; Tan, Andrew K.G.

doi:10.1016/j.jairtraman.2009.06.001

Cited by 38 publications

(40 citation statements)

References 1 publication

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“…The marginal effects at the mean 2 of each significant dependent variable have therefore also been included (Table 2). First, the results confirm earlier papers (Leng Ong and Tan, 2009), which show that a large number of socioeconomic factors do not provide an explanation for the choice of an LCC. The degree of coincidence with said earlier work, which was done using data for Malaysia, is also striking.…”

Section: Results and Conclusionsupporting

confidence: 87%

“…Neither of these papers (O'Connell and Williams, 2005;Leng Ong and Tan, 2009), with a notably smaller number of dependent variables, analysed the frequent flyer factor. The results show that a frequent flyer, who has taken over 12 flights in the previous year, is 22% more likely to choose an LCC for one's next flight, compared to an occasional flyer who has taken no other flights in the previous year.…”

Section: Results and Conclusionmentioning

confidence: 99%

“…One especially relevant topic within this field of research is an analysis of what determines the choice of LCCs over network carriers (Leng Ong and Tan, 2009) and, in short, the characteristics that define an LCC passenger (O'Connell and Williams, 2005;Barrett, 2009).…”

Section: Introductionmentioning

confidence: 99%

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Analysis of determinants of airline choice: profiling the LCC passenger

Castillo-Manzano

Marchena-Gómez

2010

Applied Economics Letters

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This article analyses the socioeconomic characteristics and trip attributes that influence or correlate with airline choice using a database of 20 000 passengers. One of the conclusions that should be highlighted is the lack of significance of socioeconomic variables except when the passenger is non-Spanish and the frequency with which one travels. And yet there are many trip attributes that condition the choice. Of these the following can be highlighted: the destination, the purpose, the need to transfer to another flight, the duration of the trip, the passenger's choice of accommodation or whether the trip is made on a weekend or not.

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Section: Results and Conclusionsupporting

confidence: 87%

Section: Results and Conclusionmentioning

confidence: 99%

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Analysis of determinants of airline choice: profiling the LCC passenger

Castillo-Manzano

Marchena-Gómez

2010

Applied Economics Letters

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“…AirAsia's core competence is its ethos of cost leadership, while it is asymmetrically positioned at the other end of the airline business model continuum to Malaysia Airlines. In addition, AirAsia is very profitable, fast-growing, entrepreneurial, and challenging (Ong and Tang, 2010). At the same time, Malindo is increasingly growing.…”

Section: Malaysia Airlinesmentioning

confidence: 99%

“…This ease is especially 4 in terms of unbundling the product; the ability to reduce costs within 30% of LCCs; travel policy agreements; increasing product differentiation; effectively targeting chosen segments; and meeting the needs and requirements of targeted customers. Research on Malaysia Airlines has concluded that the airline has adequately met the needs of the passenger requirements in terms of service quality and schedule, while Air Asia's has done so through the single entity of fares (Suki, 2014;Ong and Tang, 2010;O'Connell and Williams, 2005).…”

Section: Malaysia Airlinesmentioning

confidence: 99%

The strategic capability of Asian network airlines to compete with low-cost carriers

Pearson

O’Connell

Pitfield

et al. 2015

Journal of Air Transport Management

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a b s t r a c tNever before have network airlines been so exposed and vulnerable to low-cost carriers (LCCs). While LCCs had 26.3% of all world seats in 2013, Southeast Asia had 57.7% and South Asia 58.4% e and these figures will only increase. There are many consequences of LCCs on network airlines, including inadequately meeting the expectations of customers, so increasing dissatisfaction, and not offering sufficient value-for-money. Clearly, it is fundamentally important for Asian network airlines to respond appropriately to LCCs. This paper looks at the strategic capability of 22 of the top Asian network airlines in competing with LCCs, which is achieved by analysing questionnaire data from these airlines in terms of 37 competitive responses across six distinct response categories. It is crucial to note that this paper only concerns their capability in competing with LCCs, and it does not consider their overall strength. This paper also investigates how strategic capability varies by Asian sub-region and by airline performance, with performance examined in two respects: by perceived performance and actual performance. The results show that strategic capability varies widely, with Vietnam Airlines possessing the strongest strategic capability to compete with LCCs and SilkAir the weakest. Of others that compete heavily with LCCs, Malaysia Airlines and Garuda Indonesia have strong capabilities, while Philippine Airlines does not. However, all three need to more forcefully respond to LCCs. As a whole, network airlines within Southeast Asia have the greatest strategic capability, and Northeast Asia the weakest. There is a reasonably strong correlation between strategic capability and both actual and perceived performance, which suggests that those airlines with strong strategic capabilities should achieve strong overall performance.

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