Passengers’ perceptions of low cost airlines andfull service carriers: A case study involving Ryanair, Aer Lingus, Air Asia andMalaysia Airlines

Passengers’ perceptions of low cost airlines andfull service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines

Journal: Air Transport Management

Author: John F. O’Connell
, George Williams

Published: 2005

Abstract

Direct competition between full service airlines andno-frills carriers is intensifying across the world. US and European full service airlines have lost a significant proportion of their passengers to low cost carriers, the experience now being repeatedin the domestic markets of Asia. This paper attempts to provide answers to a number of critical questions: What are the key drivers of each type of airline’s business model? Is there a difference in passengers’ perceptions between low cost carriers and full service incumbents in a mature European market and in a rapidly developing Asian economy? What are the principle reasons why a passenger chooses a particular airline model? How could a legacy carrier encourage passengers to return and so regain their domestic market share? These questions are addressed using information obtained in passenger surveys that were recently conducted in Europe and Asia.

Keywords: Full service airline; Low cost carrier; Passenger perceptions

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