Assessing the Impact of Service Quality Dimensions on Customer Satisfaction in Budget Airlines
Abstract
In the highly competitive airline industry, budget carriers must focus on customer satisfaction as a critical strategy to sustain loyalty and differentiation. This study aims to investigate the factors influencing customer satisfaction with AirAsia in Malaysia, specifically examining the roles of price, service quality, food service, assurance, and empathy. A quantitative approach was employed using survey data collected from AirAsia passengers, and regression analysis was conducted to assess the influence of these variables. The results reveal that empathy, assurance, and food service significantly affect customer satisfaction, with empathy emerging as the strongest predictor (? = 0.480, p < 0.01). Assurance also demonstrated a positive influence (? = 0.203, p < 0.05), followed by food service (? = 0.178, p < 0.1). Together, these variables explained 66.1% of the variance in customer satisfaction (R² = 0.661). In contrast, price (? = 0.059) and service quality (? = 0.069) showed no significant impact. These findings underscore the importance of prioritizing empathetic service, trust-building, and food quality enhancements over pricing strategies alone. The study provides both theoretical insights into customer satisfaction determinants in low-cost aviation and practical guidance for airlines seeking to strengthen customer experiences and maintain competitiveness.
Full Text:
PDFReferences
Abdul Jamal, A. (2023, February 3). Despite ministerial soundbites, AirAsia passenger complaints continue. MalaysiaNow. https://www.malaysianow.com/news/2023/02/03/despite-ministerial-soundbites-airasia-passenger-complaints-continue
Adenigbo, A., Mageto, J., Makan, H., & Luke, R. (2023). Service quality of e-hailing taxi services in Johannesburg. Acta Logistica, 10(4), 537–548. https://doi.org/10.22306/al.v10i4.429
Ahn, T.-H., & Lee, T. J. (2011). Service quality in the airline industry: Comparison between traditional and low-cost airlines. Tourism Analysis, 16(5), 535–542. https://doi.org/10.3727/108354211X13202764960582
AirAsia. (2023). About us. Airasia Newsroom. Retrieved from https://newsroom.airasia.com/about-us#gsc.tab=0
AirAsia Newsroom. (2022, January 12). AirAsia launches four new domestic routes in time for festive season. AirAsia Newsroom. https://newsroom.airasia.com/news/2022/1/12/airasia-launches-four-new-domestic-routes-in-time-for-festive-season#gsc.tab=0
Aryani, D. N., Singh, P., Khor, Y. X., Kee, D. M. H., Selvia, K., Lee, C. W., Lee, Y. H., & Anantharavoo, L. (2022). Factors influencing consumer behavioral intention to use food delivery services: A study of Foodpanda. Journal of the Community Development in Asia, 5(1), 69–79. https://doi.org/10.32535/jcda.v5i1.1386
Aziz, N., & Rahman, S. (2024). Enhancing tourism through sustainable practices. Journal of Hospitality and Tourism Writing, 6(2), 45–60. Retrieved from http://journal.umk.edu.my/index.php/jhtw/article/view/1439/852
Ban, H.-J., & Kim, H.-S. (2019). Understanding customer experience and satisfaction through airline passengers’ online review. Sustainability, 11(15), Article 4066. https://doi.org/10.3390/su11154066
Chew, W., Leong, J. S., Qian, M., Ng, P. Q., & Siew, G. S. (2018). Customer satisfaction level towards service quality in credit cards: In the urban area of Malaysia. UTAR e-prints. Retrieved from https://eprints.utar.edu.my/2890/1/fyp_FN_2018_CWJ_-_1501237.pdf
Crossman, A. (2019). Is secondary data right for your research project? ThoughtCo. Retrieved from https://www.thoughtco.com/secondary-data-analysis-3026536
Eng, A. J., Lee, S. C., Tan, P. P., & Yeoh, C. Y. (2012). A study of consumer satisfaction toward service quality in Airasia Malaysia. UTAR Institutional Repository. Retrieved from http://eprints.utar.edu.my/720/1/A_STUDY_OF_CUSTOMER_SATISFACTION_TOWARDS_SERVICE_QUALITY_IN_AIRASIA_MALAYSIA%2D_Eng%2C_Lee%2C_Tan%2C_%26_Yeoh_(2012).pdf
Hidayat, M. A., Rasyid, A., & Pasolo, F. (2024). Service quality on customer loyalty: Mediation of customer satisfaction. Advances in Business & Industrial Marketing Research, 2(3), 150–163. https://doi.org/10.60079/abim.v2i3.158
Idris, R. bin, Feisal, A., Amer, A., Othman, H., & Ibrahim, I. (2022). Halal service quality and customer satisfaction of airlines company: A conceptual framework. [Journal/conference unspecified], 6(4), 9762–9770. Retrieved from https://www.researchgate.net/publication/361480741_Halal_Service_Quality_and_Customer_Satisfaction_of_Airlines_Company_A_Conceptual_Framework
Iqbal, A., Muhammad Sufyan, Salalm, A., Muhammad Ali Shaikh, & Muhammad Faizan Khan. (2023). When satisfaction takes flight: Unraveling the impact of passenger satisfaction on passenger loyalty with the moderating role of price sensitivity in airline industry. Research Journal for Societal Issues, 5(3), 73–95. https://doi.org/10.56976/rjsi.v5i3.138
Irdina, I., Kee, D. M. H., Reddy, V., Izzati, Z., Sri, K., Perez, M. G., Restrepo, C. A. P., Lopez, C. A., Das, A., Malhotra, K., & Pandey, R. (2020). AirAsia’s efforts in maintaining good workplace environment for its employees during Covid-19. International Journal of Tourism and Hospitality in Asia Pasific, 3(3), 22–32. https://doi.org/10.32535/ijthap.v3i3.941
Kee, D. M. H., Wawi, M. H. H., Zohri, M. H., Mok, H. X., Mok, M. N., Rafif, M. I., Lutfiani, L. S., Hafizh, U., & Priyambodo, H. G. (2023). Are you satisfied with Shopee? A study of customer satisfaction towards Shopee. International Journal of Tourism & Hospitality in Asia Pasific, 6(2), 102–115. https://doi.org/10.32535/ijthap.v6i2.2342
Lim, J. (2023, July 28). The story of AirAsia. AirportMY. Retrieved from https://airportmy.com/the-story-of-airasia/
Lin, D. J. L. J., Ling, D. H. L., Liem, D. G. S., Batul, M. A., Shamsudin, N. A. S. B., Abidin, N. A. B. Z., Farid, N. A. A. B. M., Shuhaimi, N. A. U. B. M., Kurniawan, E., Dutta, D., & Hasani, B. K. (2023). Service quality on customer satisfaction and its impact on customer loyalty at KFC in South and Southeast Asia. International Journal of Tourism and Hospitality in Asia Pasific (IJTHAP), 6(3), 42–56. https://doi.org/10.32535/ijthap.v6i3.2593
Man, M. K., & Justine, J. B. (2011). AirAsia in the Malaysian domestic airline market: Empirical analysis of strategy. International Business & Economics Research Journal (IBER), 4(12). https://doi.org/10.19030/iber.v4i12.3643
Sahadah, N., & Maulana, H. A. (2024). The influence of service quality, facilities, and price on passenger satisfaction at Bandar Sri Junjungan Dumai–Rupat. J-MIND: Jurnal Manajemen Indonesia, 9(1), 1. https://doi.org/10.29103/j-mind.v9i1.11092
Shukri, S. M., Ab Yajid, M. S., & Tham, J. (2020). Role of responsiveness, reliability, and tangibility on customer satisfaction. Systematic Reviews in Pharmacy, 11(1), 1007–1013. https://doi.org/10.5530/srp.2020.1.127
Oh, Z. J., Lew, T. Y., Saw, W. T., Sarveena, Shen, Z. B., Shoo, Y. W., & Kee, D. M. H. (2023). Factors that influence university students toward customer satisfaction and customer loyalty at Starbucks in Malaysia. International Journal of Tourism & Hospitality in Asia Pasific, 6(2), 51–61. https://doi.org/10.32535/ijthap.v6i2.23
Osman, F., Warisadi, A. M., Yeo, W. M., Keni, K., & Wilson, N. (2024). The role of service quality and customer satisfaction in predicting customer retention intention. Jurnal Bisnis dan Akuntansi, 26(1), 101–122. https://doi.org/10.34208/jba.v26i1.2472
Pérez-Morón, J., Madan, S., Cheu, J. Y., Kee, D. M. H., Cheong, L. C., Chin, R., Cheng, J., & García, A. P. M. (2022). Effect of service quality and customer satisfaction on customer loyalty: A case study of Starbucks in Malaysia. International Journal of Tourism and Hospitality in Asia Pasific (IJTHAP), 5(1), 62–74. https://doi.org/10.32535/ijthap.v5i1.1402
Seong, C., & Salleh, R. (2022). Customer satisfaction analysis using quality function deployment: A case study on Malaysian domestic airlines. Journal of Engineering and Science Research, 2(1), 56–68. https://doi.org/10.30880/ekst.2022.02.01.007
Singh, M., & Band, G. (2021). Effect of factors of physical environment on customer satisfaction with reference to restaurant industry in Nagpur City. Elementary Education Online, 20(2), 116–126. https://doi.org/10.17051/ilkonline.2021.02.116
Stewart, L. (2024). Primary data | Definition, examples & collection methods. ATLAS.ti. Retrieved from https://atlasti.com/research-hub/primary-data
Sukati, I., Ban Khiang, T., & Isnurhadi, D. (2015). Customer satisfaction level provided by Air Asia. Asian Social Science, 11(13), 174–183. https://doi.org/10.5539/ass.v11n13p174
Suki, N. M. (2014). Passenger satisfaction with airline service quality in Malaysia: A structural equation modeling approach. Research in Transportation Business & Management, 10, 26–32. https://doi.org/10.1016/j.rtbm.2014.04.001
Teoh, K. B., Gan, K. H., Darishini, L., Umamageswari, U., Neoh, K. Y., Jivega, N., Low, Y. L., Lu, S., Mah, E. T., & Ma, Y. Q. (2023). A study on customer satisfaction of AirAsia Berhad. International Journal of Tourism and Hospitality in Asia Pasific (IJTHAP), 6(3), 133–147. https://doi.org/10.32535/ijthap.v6i3.2170
Uhuegho, K., Bakare, K., Ajisola, A., & Akume, A. A. (2022). A review of literature on service quality, safety perception, and customer satisfaction in the airline industry. Advances in Multidisciplinary and Scientific Research Journal Publication, 10(1), 73–92. https://doi.org/10.22624/AIMS/DIGITAL/V10N1P8
Vizologi. (2025). A business model tool with examples of Business Model Canvas [Web platform]. Retrieved from https://vizologi.com/
Wedberg, C. (2019, November 17). AirAsia: My experience of flying with AirAsia. Christine Abroad. Retrieved from https://www.christineabroad.com/flying-with-airasia/
Wei, C., Xuan, D., Cui, Z., Cui, J., & Kushwah, V. S. (2023). GrabFood - The impact of electronic coupons on consumer’s purchasing power. Asia Pacific Journal of Management and Education, 6(3), 58–74. https://doi.org/10.32535/apjme.v6i3.2666
Zamani, N., Bahrom, N. A., Meor Fadzir, N. S., Mohd Ali @ Mohd Fauzy, N. S., Anuar, N. F., Rosman, S. A., Sivam, S., Muthutamilselvan, K., & Isai, K. I. A. (2020). A study on customer satisfaction towards ambiance, service and food quality in Kentucky Fried Chicken (KFC), Petaling Jaya. Malaysian Journal of Social Sciences and Humanities, 5(4), 84–96. https://doi.org/10.47405/mjssh.v5i4.346
Zhong, Y., & Moon, H. C. (2020). What drives customer satisfaction, loyalty, and happiness in fast-food restaurants in China? Perceived price, service quality, food quality, physical environment quality, and the moderating role of gender. Foods, 9(4), 460. https://doi.org/10.3390/foods9040460
DOI: https://doi.org/10.32535/jcda.v8i3.4171
Refbacks
- There are currently no refbacks.
Copyright (c) 2025 Kok Ban Teoh, Yee Huei Lok, Lidwina Yi Ming Kee, Xuanting Li, Yinglan Li, Yuxin Li, Zhongkai Liao, Fahad Neyaz, Anees Jane Ali, Daisy Mui Hung Kee

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Journal of The Community Development in Asia (JCDA)
ISSN 2685-8819 (Print) | ISSN 2654-7279 (Online)
DOI Prefix: 10.32535 by CrossRef
Published by AIBPM Publisher
JL. Kahuripan No. 9, Hotel Sahid Montana, Malang, Indonesia
Email: journal.jcda@gmail.com
Phone: +62 341 366222
Website: https://aibpmpublisher.com/
Governed by
Association of International Business and Professional Management
Email: admin@aibpm.org
Website: https://www.aibpm.org/
Licensing Information
Journal of The Community Development in Asia (JCDA) is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License .