Service Quality and Competition in the Airline Industry - Dissertation Example

The research objectives that follow provide the rationale for the direction of inquiry taken by the dissertation. . Due to the rising costs of fuel, increasing players in the aviation industry, and tightening market conditions due to economic crises and fear of terrorism, airlines are increasingly pressured into performing more effectively to attract more customers, and more efficiently to protect profit margins and ensure sustainable operations.

A key factor in courting customer loyalty is the provision of quality service to the satisfaction of customer expectations. In Europe and in the world, Norwegian has been recognized as one of the successful airlines that have combined low price and top quality in its value-for-price proposition. The Norwegian Air Shuttle ASA is the official name of the airline company which shall henceforth be referred to in this dissertation by its commercial brand, Norwegian. The company is a low-cost airline, the second-largest airline in Scandinavia, and the third-largest low-cost airline in Europe (Welcome to Norwegian, 2013).

Norwegian is based in Oslo and operates 382 routes to and from 121 destinations all over Europe, North Africa, the Middle East, Thailand, and the US. In 2012, 17.7 million passengers have flown Norwegian and were served by the 2,500 employees of the company. Norwegian is a publicly listed firm in the Oslo Stock Exchange. Through the years, Norwegian had won a number of awards and citations for its service quality and excellence in the conduct of its operations. The company website announced that in June 2013, the airline was voted Europe’s Best Low-Cost Carrier of the Year by passengers who participated in the SkyTrax World Airline Awards, over a field of 200 airlines worldwide.

As such, this distinction is described as the most prestigious award in the airline industry (Norwegian in Brief, 2013).  The consumers’ perception of Norwegian has apparently improved over the previous year when it was awarded the Second Best Low-Cost Airline in Europe by SkyTrax in the 2012 World Airline Awards.  During the same year, Norwegian won in the category of Best Inflight Connectivity and Communications Passenger Choice Awards 2012, principally due to its offer of in-flight WIFI, the first European airline to do so, with its recently installed high-speed broadband. What is remarkable about the ATW Airline Industry Achievement Awards is that it is regarded as the most prestigious award in the industry (ICAO, 2013).  The award, while citing market leadership, was apparently based on overall excellence, based on the accomplishments that helped Norwegian to win the award.