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Consumer Choice of Airlines in Malaysia

Abstract Competition, coupled with air travelers' worries following the 9/11 incident has made winning customers to one's side tougher in the airline industry. It thus becomes important to know what factors determine the choice of airlines by air passengers. This paper examines these factors in the context of a developing country, Malaysia. Perspectives of airlines, travel agents, and consumers were sought through a questionnaire survey. Results show that safety record of the airlines is an overriding factor mentioned by the airlines surveyed. Consumers and agents, however, rated this factor of third/fourth importance, putting it behind discounted fares, and large number of cities served by an airline. All the three groups of market participants tend to be in harmony in rating ICT (Information Communications Technology) as the least important choice factor. Finally, consumers also mentioned other factors never alluded to by either the airlines or the travel agents. Managerial implications of these findings for airlines operating in Malaysia and similar developing countries are discussed.