An empirical assessment of willingness to accept “low-cost” air transport services: Evidence from the Middle East

  • Sanaz Vatankhah Department of Management, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran
  • Mansour Zarra-Nezhad Department of Economics, Shahid Chamran university of Ahvaz, Ahvaz, Iran
  • Ghanbar Amirnejad Department of Management, Shushtar Branch, Islamic Azad University, Shushtar, Iran
Keywords: Low-cost carrier, stated preference, choice experiment, willingness to accept, Iran

Abstract

Despite the rapid growth of low-cost airlines in the U.S. and Europe, yet little is known about the feasibility of such services in developing and less developed countries. In such a region, hence, the purpose of this study is to investigate passengers’ preferences and willingness to accept low-cost air transport services. Accordingly, a choice experiment was applied to examine passenger choices associated with a bundle of service attributes applicable to low-cost air transport service. Results of multinomial logit models defined fare, frequent flyer program, food and beverage services, ground services, flexibility, frequency and punctuality as determining factors affecting passengers’ air transport choice in Iran. Results further demonstrated that passengers’ preferences and their willingness to accept low-cost air transport service are associated with their socio-economic characteristics and travel behavior. This study contributes to the relative body of knowledge through offering willingness to accept calculation as a strategic tool to assess the feasibility of low-cost air transport provision in a region where such services are yet scarce.

Author Biographies

Sanaz Vatankhah, Department of Management, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran

Sanaz Vatankhah is a PhD. candidate in business administration, specializing in marketing management. She is currently based in Islamic Azad University, Ahvaz branch, Iran.  She holds Master of Science in tourism management and Bachelor of Science in tourism and hospitality management. Her area of research includes service marketing, Aviation and transportation business and operation, high-performance work practices, organizational deviant behavior. She has publications in journal of Air Transport Management, Tourism management, Tourism review and the journal of human resources in hospitality and tourism.

Mansour Zarra-Nezhad, Department of Economics, Shahid Chamran university of Ahvaz, Ahvaz, Iran

Mansour Zarra-Nezhad is a professor of economics and the dean of the Faculty of economics and social sciences, Shahid Chamran University, Iran. His research mainly focuses on economicseconometricsIslamic Economics and  Financial Economics. He has several publications in The International Journal of Applied Economics and Finance, Journal of Hospitality and Tourism Management, Tourism management, Journal of Social Science and Asian Economic and Financial Review.

Published
2019-05-29