IDEAS home Printed from https://ideas.repec.org/a/ids/ijecbr/v20y2020i2p168-191.html
   My bibliography  Save this article

Service quality and financial performance analysis in low-cost airlines: an integrated multi-criteria quadrant application

Author

Listed:
  • Emrah Durmaz
  • Şahap Akan
  • Mahmut Bakır

Abstract

This study aims to evaluate the financial performance and service quality of major low-cost carriers (LCCs) operating in Europe. For this purpose, 6 LCCs were evaluated based on 7 service quality and 10 financial attributes. Due to the multidimensional nature of the performance phenomenon, integrated multi-criteria decision making (MCDM) methods, including the criteria importance through intercriteria correlation (CRITIC), technique for order preference by similarity to ideal solution (TOPSIS), and evaluation based on distance from average solution (EDAS); were adopted in the study. After the performance evaluation, the airlines were positioned on the Quadrant matrix according to their performance in two measurements. The study shows that Ryanair is located in region A, which is the best region in the matrix. In addition, it is found that the increase in service quality has an adverse effect on financial performance. Finally, a sensitivity analysis was conducted to test the robustness of the calculation and the stability of the ranking. As a result of the analysis, the applicability of the proposed approach was confirmed.

Suggested Citation

  • Emrah Durmaz & Şahap Akan & Mahmut Bakır, 2020. "Service quality and financial performance analysis in low-cost airlines: an integrated multi-criteria quadrant application," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 20(2), pages 168-191.
    • Handle: RePEc:ids:ijecbr:v:20:y:2020:i:2:p:168-191
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=109149
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijecbr:v:20:y:2020:i:2:p:168-191. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=310 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.