The Effect of Airline Service Quality on Customer Satisfaction and Loyalty in India

ABSTRACT The Indian civil aviation sector has witnessed unprecedented growth over the last decade, driven by economic expansion, liberalization, and a rising middle class. With this rapid evolution, the industry has experienced intense competition, pushing both low-cost carriers (LCCs) and full-service carriers (FSCs) to prioritize service quality to retain and grow their customer base. While price remains a major driver of consumer choice, passengers are increasingly basing their airline preferences on service delivery, reliability, responsiveness, and overall travel experience. This study investigates the effect of airline service quality on customer satisfaction and loyalty in the Indian aviation market. The research applies the SERVQUAL model, comprising five dimensions—tangibles, reliability, responsiveness, assurance, and empathy—to understand how each dimension influences passenger satisfaction and how satisfaction subsequently affects customer loyalty. A quantitative research design was adopted using a structured questionnaire distributed to 300 airline passengers across India who had flown domestically or internationally within the last 12 months. Descriptive statistics and regression analysis were employed to interpret the data. The results reveal a strong positive relationship between service quality and customer satisfaction, and between satisfaction and loyalty. Among the SERVQUAL dimensions, reliability and responsiveness were found to be the most influential. The study concludes that Indian airlines must invest in consistent and responsive service delivery, not just competitive pricing, to foster customer satisfaction and long-term loyalty. Recommendations include improving staff behaviour, timeliness, cleanliness, and personalization of services. These findings are expected to support airline managers in shaping more customer-centric service strategies that enhance brand loyalty and profitability in a competitive environment.