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Introduction
Airline industry is one of the major industry sectors in United Kingdom. In a year around two
hundred thirty five million passengers travel by Air. (www.dft.gov.uk/pgr/aviation/). In
services, airline sector plays a predominant role. It promotes tourism, international
investments and globalisation which contribute to the economic growth of a country.
Customer satisfaction is one of the foremost major processes in aviation industry and is
established as most vital to the success of business competition. The terms customer
satisfaction and service quality have been both explained as meeting the expectation of the
service with that which is really experienced by the end user (Sureshchandar, 2010). As a
result, when consumers practices meet or exceed their expectations, the service is observed
as a quality service and the recipients are usually satisfied customers. On the other hand,
when the service experienced by customers is below than their expectations, the perception of
service quality is affected and customers are usually not satisfied.
Customer satisfaction has turn out to be an important goal in service operations as it brings
good reputation to firms in airline sector (Ranaweera and Prabhu, 2003). Dennett and Colgate
(2000) supported that as competition created by deregulation has become more intense,
service quality in the airline industry has also received more attention. (Clemes et al. (2008)
stated that in the airline companies especially meeting excellent level of quality of service
became a promotion activity in the beginning of 1990s due to high end competition. In
service sectors such as the airlines industry, the unique characteristics of services involve that
top management realize what customer desires and expects, and meets them(Aksoy, et al.,
2003).

Customer Satisfaction
According to Dahlsten (2003) Customer satisfaction may be described as the notion which
customers may encounter about the products or services of a specific brand or business firm
when the customer expectations have been reached or surpassed the existence of that
particular goods or service. As per (Kotler, 2003) satisfaction is an individuals feeling of
pleasure or dissatisfaction obtained from comparing a goods possible outcome in contrast to
the customers demands. According to Siadat (2008) an organisation may increase it sales
and customers loyalty by offering excellent satisfaction by the customer. Therefore customer
satisfaction has happened to be one of the focal point for all business especially those in
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service industry. According to Parahoo (2006) customer satisfaction is gauged to sustain
existing customers and as a result, effectiveness and growth of business.

Benner (2009) argued that to maintain customer expectation and customer loyalty in order to
gain higher long-term performance of the company, customer satisfaction is one of the
important factors. Its certain that customer expectation meets the customer satisfaction, this
will be the driving force to build the strong relationship between client and a company as per
Russell (2007) also supported this will directly lead to more and more profitable to the
organization. Parker and Mathews (2001) argued that there are two key analysis of
satisfaction, Satisfaction itself a course of action as well as an end results.

Customer satisfaction is constantly the outcome of the observation processes. Customer
satisfaction may be implied as a decision relied on the growing practice through a distinct
goods or service relatively than a business event (Hossain, 2006). Customer satisfaction may
be explained as an individuals complete assessment of the performance of a product or
service till now. According to Mququ (2005) customer satisfaction as a post purchase
thoughts framed through a rational evaluation of the quality that a customer expected to
obtain from an exchange and the intensity of quality the customer notices actually receiving
from the trade. To be specific it is the state of customer perceptions and expectations. As per
(Parahoo, 2006) customer satisfaction is a fundamental factor in improving production
process and end user relationship. The importance of customer satisfaction and its use for
determining the quality from the customers outlook have been highlighted by many
researchers in airline industry (Berry, 2005).

Customer contentment is the emotion or outlook of a client towards a goods or service
following it had been consumed. Customer happiness is the significant end result of
endorsement activity, where it operates as a link between various levels of consumer
purchasing activities.

Customer satisfaction is the effect of the customers awareness, assessment and emotional
reaction to the spending experience with goods or service (Anthony, 2005). The hypothesis of
customer satisfaction has fascinated the interest of intellectuals and research analysts for
more than three decades in the occasion of the fact that clients are the foremost source of
most organisations revenue. Savitz (2009) explained customer satisfaction as an result of
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obtain and use as a consequence from the purchasers evaluation of the benefits and expenses
of the purchase and utilize drawn from the buyers assessment of the payments and
expenditure of the acquisition relative to the probable end results. Many research studies were
prevalent on consumer satisfaction and many analysts had conducted research on the
evaluation of quality of service in airline sector. For the first time in the year 1986 Kearney
was the first author who assessed service quality of airline business with the perspective of
airline customers in his research study by Venkatesh and Nargundkar (2006).


Customer Satisfaction in Airlines Sector United Kingdom
Airline sector in United Kingdom (UK) is considered to be major industry. In the year 1988,
the sector contributed 10.2 billion to GDP (CBI, 2006). The services offered by the industry
are at par with the international standards catering to the needs of both domestic and
international passengers. The airline sector is very significant to the United Kingdoms
tourism as 1.8 million citizens in the country are engaged in this sector report by (CBI, 2006).

Satisfaction of a customer is a purpose of observed quality and notions of degree to which
remarked quality unsuccessful to counterpart customer expectations. Customers will
constantly evaluate the remarked performance of goods or service with little performance
mark. Karma (2004) believed that Consumers will only be contented when the estimated
performance is more than the target; conversely dissatisfaction happens when the
performance is below the expectation. As per Rachel and Andy (2010), those customers are
merely satisfied and they find it simple to shift when other firm is providing a better cost or
package while the importance of customer satisfaction is highlighted in business where
competition is severe by the Kotler (2000).

The primary objective of airline sector is to provide excellent service and competency.
Rachel and Andy (2010) argued that excellent service is vital while the number of absolutely
contented customers segment is an important factor as assessed by some analysts for high
profits. A business organization must regularly gauge consumer satisfaction in order to
analyse and identify whether clients were delighted or not. According to Torbica and Storh
(2001), particularly in the airline sector the degree of customer happiness is plainly
recognized off late in the process, whilst the majority of the customers spent the cash by now.
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When firms study on which characteristics of a service or products affect consumer
satisfaction, their duty is to adapt their current strategies in a manner that would lead to
utmost consumer contentment.

According to the literature, outstanding service is achieved through committed and loyal
staff. To provide a reasonable level of service and quality, Rhoades (2008) stated that a firms
approach should be focused in improving the skills and ensuring efficiency, motivation and
commitment of the employees even supported by (Benner , 2009). As the personnel are vital
to service delivery, there is a necessity to have employment protection, training and dispersed
decision making. According to (Chitnis, 2007) Airline industry should assess and determine
the demands of its passengers and their satisfaction levels. Satisfaction may be described as
what the organisation provided to its customers and whether the company met the customers
demands (EUPAN, 2008). Airline sector may develop the scope of achievements if they
allow its workforce to take individual responsibility and go an extra mile to make the
customers happy and contended (Chitnis, 2007). Customer satisfaction is when the consumer
is delighted with the service delivered by the airline sector that meets the client desires, wants
and expects.

In this research, we examine thoroughly about the several segments of expectations. It is been
observed that it costs five times as much to advertise and convince a new client as to retain
the existing one. They should analyse the current market trends, customer preferences and
should be innovative and flexible. Airline industry should focus on making customers happy
and should allocate finances on providing excellent customer service.

British Airways United Kingdom
In United Kingdom British Airlines is the largest Airlines offering both domestic and
International services and occupies fifth position Worldwide covering 550 destinations. The
company employs 47000 workforce across the World out of which 85 percent of them was
based in United Kingdom generating an annual income of 7.8 billion
(www.britishairways.com). Caleo (2005) believed that British Airways is popular across the
World for their premier service and World class facilities, having been marked in various
articles and feedbacks by airlines as well as passengers.

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Many believe that British airlines not only provide State of art facilities to its passengers but
also maximises its efforts in providing excellent service by its personnel who are dedicated
and committed (www.thetimes.co.uk). According to Caleo (2005) British airlines was started
as Aircraft Transport and Travel in 1919 with its voyage from Le Bourget to Honslow in
August 1919. After its alliance with few other airlines it was known as Imperial Airways
operating with only eighteen crafts and two hundred fifty personnel. The British airways have
progressed within a century and became major flight carrier in Great Britain
(www.Britishairways.com). The British airlines was very popular not only for offering
largest international flights but also for providing excellent facilities such as extensive leg
room for passengers in economy class cabins, special lounges at par with International
standards and excellent on-board catering services maintaining good hygiene. In addition to
this, it offers many value added services for instance, valet services, online checking, travel
advice, online personal bookings, British airways had introduced e-ticketing system wherein
the passenger may provide an evidence for personal identification and may check-in without
holding the air ticket physically. Of late, the company has introduced one of the excellent
services through online mechanism, where flights may be altered up to thirty minutes prior to
exit time Caleo (2005). Consequently, all of these excellent complimentary services work
mutually with great customer service department attributed fame and glory to the prominent
airlines British Airways.


Customer Satisfaction at British Airlines
In United Kingdom British Airways Limited are the most popular airlines as it offers World-
class facilities and excellent customer service to its passengers and its the most preferred
airlines in United Kingdom. In the year 2008-2009 British airlines lay down the target to
improve consumer experience, persist to improve business profits by making it cost effective,
enhance its operations and make commercial accountability a major part of the trade. Many
business analysts believed that high fuel costs and the economic slowdown has urged the
British Airlines top management to alter the plans and amend the course of action. Yet, it
strived to make considerable growth against primary objectives, leading to further success. In
addition to this, the galleries lounges at Terminal 5 and 3 had a fabulous reception. They have
received record scores of customer service at Terminal 5 due to their redesigned services
related to luggage and punctuality. The Facilities for premium passengers has been renewed
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with the new club world goods in several flights. The British airways intend to offer the
excellent connectivity to its passengers across the world. Apart from their long distance
routes from London city to New York JFK and they are planning to widen their network of
flights to Johannesburg, Dubai and Saudi Arabia. The British Airways is believed to be the
Worlds most excellent Airlines in the market and they have a strong base in London as the
Heathrow airport provides world class facilities to both domestic and international
passengers. By improving profitability ancillary services that provide passengers immense
value and strengthen their brand image. Their motive is to develop their mileage business and
increase revenues from outsourced engineering, in-flight sales, and through their company
online website. On their website they have introduced a variety of great value restaurants and
car hire options package with their aircraft.

The British airways have continued to rise inspire of severe competition in the airline
industry. The airlines had initiated new destinations from London to Hyderabad and St.Kitts
and in the year 2008 they launched open skies and auxiliary flying from Europe to North
America and bought Lavion in the year 2008 and in the year 2009 the first flight from city of
London to New York JFK service was commenced.

Service Quality
In the early 1980s the significance of service quality in goods and services were completely
understood by several companies. The term Service quality is a vital tool in gauging
customer satisfaction. Quality of goods and services may be simply ascertained by customer
on the other hand it is often believed that Service quality is much more complex. According
to Lewis and Booms (1983), Service quality is an evaluation of how good the product or
service offered by the firm matches customer anticipations. Offering excellent service quality
means being conventional to customer expectations on a regular basis. To ensure excellent
customer satisfaction every company should focus on rendering best customer service which
may make the customer contented and cheerful. Therefore many authors believed that the
concept of customer satisfaction if often associated with service quality (Rhoades, 2008). The
word service quality may be cited as the focus on reaching the customers desires and needs
and how well the service provided is received by the customers. Berry and Zeithamal (2005)
argued that concept of service quality has been associated to costs, effectiveness, better
customer satisfaction, sustaining existing customers (Parahoo, 206).
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The concept of Service Quality has been termed as a tool of customer satisfaction. Customer
happiness is a feeling or mindset of a client towards a particular product or service after it is
been consumed. A satisfied buyer helps in promotion of sales of goods, hence customer
satisfaction acts as an inter-link between several stages of behaviour of prospective clients.
For instance, a customer may repurchase a product if he is more satisfied with that. The brand
or image of an organisation is often improved based on the number of satisfied customers
because a satisfied customer may bring in new customers. Customer satisfaction may be
measured by significant customer perceptions of service quality, fondness and prospects
(Godwin and Petter, 2010). To be precise satisfaction or dissatisfaction is the difference
between how a customer expects to be concerned and how he or she thinks being cared for.
Ayob (2005) states service quality as the level to which the service, the service procedure
and the service establishment can meet the outlook of the user. Some popular definitions
include suitability to utilize (Rhoades, 2008), or one that pleases the customer
(Kandampully, 2008)

Firms produces goods and offer services to its customers such as space storage, distribution,
product insurance, customer service and promotion. A production unit has both tangible and
intangible aspects. Service quality has more intangible factors than produced goods. The term
service quality may be distinctive as the focal point on meeting the customers wants and
desires, and how well the service delivered reaches the customers (Anthony, 2005). Service
quality may be stated as customer perception of how better a service reaches or go beyond
their expectations (Godwin and Petter, 2010). The service activities are really critical for the
financial system to function and to improve the quality of our life. The author James
Fitzsimmons defines service as unpreserved, subtle experience carried out for a customer
performing in the role of co-producer. Services are often described as ideas and concepts;
goods as products or commodities. Consumers experience physical products such as talcum
powder and leather goods which is different than intangible service such as air travel. Buyers
may physically experience the features of talcum powder and leather products whereas the
services are generally subtle. Services are widely carried out openly for buyers. The study of
Service Quality concept is more complex as it often deals with intangible and consumable
elements. Every firm expect their Motivated and dedicated personnel to make their
consumers happy by offering excellent service. This will result in bringing in new customers.
8

Hence the need to identify and understand the distinctive nature of services, its function and
impact of its services in our everyday life is very significant.

It is often argued that there exists ten determinants to gauge service quality but author Savitz
(2009) classified these determinants into five. Firstly Reliability, this entails the stability in
performance and fairness. In simple words, it may be described as acting as per the customer
demands and delivering what is promised by the firm, for example, delivering services to the
customer within the stipulated time. Secondly, Responsiveness means optimistic and
enthusiastic personnel in the organisation ready to provide quick and prompt service to
customers. If a passenger has a problem, how the customer service department staffs attend to
his queries and take necessary action and resolve them with the turnaround time. Here in
airline industry the ability to respond well to the customer is assessed. Thirdly Assurance, it
implies that every organisation should try to attract the customer by its brand value/image; on
the contrary it should win consumers by its honesty and creditability. Next determinant may
be explained as Empathy meaning being polite, thoughtful and friendly to the clients. Every
firm expects its workforce to give respect to its customers. In service industry especially in
airline sector every company expects its staff to be soft-spoken, polite and courteous. Lastly
Tangibles as it incorporates the proof of the service physically in terms of facilities, outer
appearance of the staff, the tools and machinery used to render the service.

Dimensions of Service Quality
Customer satisfaction is also considered as the perceptions of services obtained by the
customer. When customer expectations are surpassed, the quality of service is rated as
excellent on the other way round then it will be rated as very poor. The bridge between actual
services delivered and expected it can be stated as service quality. According to
(Sureshchandar, 2010) service quality process may be divided into diverse aspects, Firstly,
technological secondly practical or process quality.

Sedatole (2003) believed that there exist three different aspects of service quality which
affect customers awareness which may be studied as mentioned below: Firstly Technical
quality, second one is known as Functional quality and last one is Outcome quality.

Technical quality attributes, firstly the staff should be very much efficient and systems or
procedure should be simple and should provide excellent service to the client as per their
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expectations. In airline industry, this aspect plays a vital role as providing safety and
excellent service to all the customers is important as this will be experienced directly and
may be reviewed by the customer. Rhoades (2008) believes that technical quality is a
fundamental but not a suitable provision for higher levels of service quality. Integrative
quality deals with how the various divisions of the service delivery process function
collectively. This is fundamental in airline sector as the passenger ought to have a better
flight practice. The third feature is functional quality which may be determined by the
process in which the service is rendered to the passengers. It may be used to create a cut-
throat edge by concentrating on the personal traits of the service met.

According to (Sureshchandar, 2010) Service Quality is one of the major factors for any
airlines sector. Providing superior service quality has been accepted as the best well-
organized method to make sure that a firm's contributions are exclusively placed in a business
consisted with similar reasonable contributions (Savitz, 2009). As per Narasimhan (2011)
supported firms that carry out a customer focused approach based on quality of service vary
typically from especially those firms that does noting, and it is clear that the previous
organisations are generally more booming. In the airline sector, quality of service is vital as
offering excellent service quality to customers is significant for airlines' existence. Airline
quality of service is the main factor of customer satisfaction, consistency and passenger's
preference of airline (Mazzeo, 2011). In the airline industry, undertaking studies on service
quality is ample (Kandampully, 2008). The importance of different modes of assessing
service quality series from standard service ratings by customers through in-flight reviews to
assess appraisals, market revisions, grievance and feedback monitoring (Russell, 2007).

Determinants of Service Quality
As studying the literature it is been understood that customers exercise similar criteria in
gauging service quality in service industry. These measures falls fewer than 10 key groups
branded as dimensions of service quality: 1.Consistency: It means steadiness in performance
and reliability 2. Approachable: This may be explained as the eagerness and friendly nature
of personnel to offer excellent service. 3. Competencies: Implies term of the requisite skills
and information to carry out the service 4.Convenience: This represents convenience and
affability 5.Consideration: This may be explained as the admiration, politeness, compassion
and sociable nature of staff 6.Transparent: Indicate to communicate with passengers in
language they can easily understand to attract diverse customers 7. Reliability: denotes
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integrity and loyalty 8. Safety: means free from risk, danger or threat 9. Know your customer:
Its an attempt to identify with the needs and desires of the consumers 10. Tangible: It deals
with the physical circumstances and image of the product or service.

Customer Satisfaction and Service Quality Measurement in British Airways
The significance of consumer satisfaction and service quality in airline sector is improving
drastically as it is necessary for its survival in todays global economy. According to
(Sedatole, 2003) quality of service delivered to the customer by any service oriented
company is understand by the customer is feeling superiority or inferiority. Savitz (2009)
stated that providing excellent quality in the service sector has been accepted as the major
useful means of guarantying that a firms contributions are outstandingly placed in market
packed with similar one. Parahoo (2006) also explained that firms should be alerted about the
service quality problems as these can decline the customer reliability by twenty percent.
Grayson (2001) cited that the SERQUAL mechanism highlighted the bottom line of what
service quality actually signifies, i.e. an assessment of service excellence by the end user.

British Airways is very popular in providing excellent customer satisfaction among the
aviation sector across the World (www.BBC.com). It is the top rated airlines in United
Kingdom. The Company conducts annual surveys interviewing about one million passengers
every year, collates all the feedback received and understands and analyses the needs &
desires of the consumers and drafts out action plan accordingly (www.britishairways.com).
The business analysts will use this feedback of customer satisfaction to understand the
customers requirements and their preferences. After examining the reports thoroughly it may
be understood that there exists a link between excellent customer service and firms fiscal
performance and these may be cited as the critical tools in measuring and improving
companys profits.






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