Customer Satisfaction and the Service Quality at Fly Dubai

The aviation industry is an industry that attracts investors with huge investment capital. It is an industry that is very competitive. Major aviation players in the United States are private investors unlike in most countries where the government has a significant share in the ownership of major airlines. Major capital investments in terms of air capacity, technology, leasing or purchase of aircraft and route facilities are required, thus the high capital requirement is a barrier to entry. I prefer the airline industry because it is diverse and has redefined the transport industry. Air transportation was costly until the introduction of low-cost airlines such as Ryan Air and Fly Dubai. Up to 2016, Fly Dubai had been profitable for four years in a row.It was founded by the government of Dubai and the airline operates entirely out of Terminal 2 at Dubai International Airport. Even though Fly Dubai is owned by the government just like Fly Emirates and is chaired by the same chairman as Fly Emirates, they are run independently and serve very different or distinct markets. Fly Dubai has discovered new routes to serve destinations that were non-existent before such as the home countries of the emigrant labor force in the emirates. In addition, Fly Dubai serves alternative low cost destinations.

SWOT Analysis

SWOT Analysis is an auditing tool used to determine an organization’s strengths, weaknesses, opportunities, and threats.

For this project I intend to research on the need for a Quality Management System at flydubai airlines. For this research the objectives will be to show the relationship between service quality, customer satisfaction, and perceived value. In the airline industry these variables have proven to be a source of competitive advantage (Hernandez 2014). For my study I will simultaneously analyze post-purchase behavior against the backdrop of these variables. By developing an integrative model and testing it utilizing data gathered from the airline industry, it can be proven that customer satisfaction and the perception of value influence or play an important role in post-purchase behavior.

So, what is a Quality Management System and why do I think it is required at flydubai airlines? Quality Management System is a set of business policies, processes, and procedures designed to meet customer requirements consistently and enhance their satisfaction. The perception of value influences the satisfaction level of clients after consumption of service and determines their behavior afterwards. Research has shown that some of the merits of high quality service include cost reduction, the enhancement of corporate brand as well as the differentiation as service from that of rivals. Ultimately, this is the source of competitive power and sustained profitability.

Flydubai has long been criticized for its poor customer service but has remained profitable for four consecutive years up to 2016. 2017, however has flydubai reporting losses amounting to Dh142 in the first-half of the year. This has been attributed to lower yields and higher costs. This is despite reporting higher earnings. Operators had to slash fares against a backdrop of higher fuel prices (Dobson 2013).

Questionnaires and interviews will be the primary method that’ll be used to gather data from consumers. In addition, I will also look at customer reviews on travel websites such as trip advisor and so on. Some of the tasks that’ll need to complete include collection of raw data from interviews, questionnaires and various sources found online. Once this information has been recorded it will be analyzed to identify patterns, trends and all manner of relationships between service quality, service perception and customer satisfaction. Last but not least the variables will be examined to determine how they influence post-purchase behavior of consumers.

Some of the course learning objectives that’ll be an integral part of my research include BUS 4533 - International Quality Management System, BUS 4543 - Quality Management Tools and, BUS 4553 - Strategic Supply Chain Management. I believe are the most relevant CLO to my project since it is a project centered on the quality management of an international company airline company where knowledge of logistics is very important.

In conclusion, my proposal is based on the supply chain management theory that a logistics firm’s competitive advantage comes from its ability to cut down on cost as well on its customer responsiveness.

References

Hernandez, Manuel A.; Wiggins, Steven N.Nonlinear Pricing Strategies And Competitive Conditions In The Airline Industry. Economic Inquiry.Apr2014, Vol. 52 Issue 2, p539-561.

Dobson, Paul w.; Piga, Claudio a.The impact of mergers on fares structure: evidence from European low-cost airlines. Economic Inquiry.Apr2013, Vol. 51 Issue 2, p1196-1217. 22p.

Westgard, J. O.The need for a system of quality standards for modern quality management. Scandinavian Journal of Clinical & Laboratory Investigation.12/1/99, Vol. 59 Issue 7, p483-486. 4p.