Service quality and customer loyalty in the commercial airline industry

The study examines issues related to service quality and customer loyalty in the com-mercial airline industry. The results of an empirical study, using data collected on two air carriers, indicate that current levels of perceived service quality are below potential and that customer loyalty to airlines is low. A significant relationship was found to exist between service quality (carrier image) and retained preference, a measure of customer loyalty. Over the course of recent history, the service sector has grown at a phenomenal rate, now accounting for over 71 % of the nation’s GNP and 75 % of its employment (Batson 1989; Quinn 1988). Coinciding with the explosive growth of this economic sector, increasing emphasis has been placed on the continued development of knowledge related to service organizations, particularly the role service quality plays in creating a satisfied and continuing customer. Despite a growing abundance of service quality literature