Privatization and Passenger Perceptions: Analyzing Brand trust and Brand loyalty in the Transformation of National Airlines

Purpose: This research looks into effect of brand trust, and brand loyalty in the national airlines on customer’s tenure after privatization particularly focusing on national airlines. The study aims at synthesizing existing literature and investigate how brand trust and brand loyalty influences passenger retention after the privatization. Problem: While many studies have focused on the effects of post privatization passenger retention, relatively little is known about the effects within the framework of national airlines. Although privatization is supposed to improve efficiency, competitiveness, and financial performance, its effects on passenger perceptions and brand loyalty are inadequately understood for policymakers and airline executives. Methodology: The research is based on a comprehensive methodological review of research papers about the privatization of the government owned airlines worldwide. This paper investigates the common patterns and specific difficulties in retaining customer brand trust and brand loyalty during and after privatization, through comparative analysis. Particular issues and opportunities are highlighted through the detailed case of national airlines. Findings: As an outcome, the importance of building a brand that has a strong brand trust and loyalty throughout the process of privatization is accentuated by the findings. Indeed, case studies demonstrate that the ability to maintain consistent service quality, safety standards, and a presence in passengers are all necessary for the effective building of brand trust and brand loyalty. On the contrary, the failure of such privatization attempts shows the disastrous effect of poor investment, political meddling and the inability to conform to market norms. Originality and Value: These results add to the general understanding of the dynamics of brand trust and brand loyalty in the aviation industry. The study provides practical insights and recommendations that policymakers and airline executives can use to cope with the complexities of privatization as they strive to ensure that national airlines retain their long-term competitiveness and success. As a national airlines case study, the paper provides a unique example of an airline privatization that enriches the existing literature on airline privatization.