Customer satisfaction and loyalty in the airline industry: A case study of Malaysia Airlines (MAS) and Air Asia

This case study has been conducted for the purpose of examining the differences of customer satisfaction and customer loyalty between Malaysia Airlines (full service airline) and Air Asia (low cost airline) in Malaysia.152 usable questionnaires were obtained from respondent at two major airline terminals in Kuala Lumpur. The descriptive data analysis and statistical findings revealed that three dimensions were found to be critical in relation to customer satisfaction and customer loyalty between Malaysia Airlines (full service airline) and Air Asia (low cost airline) in Malaysia.The factors are service quality, price and services capes.Generally, respondents gave different levels of satisfaction with service quality provided by Air Asia but Air Asia was perceived better than Malaysia Airlines price wise. On the other hand, Malaysia Airlines was perceived better in service quality.Meanwhile, both airline consumers accept the services capes of both airlines.The paper highlights some of its theoretical and managerial implications of the development of airline industry