Specific to the airline industry, deregulation has greatly affected the routes and the business philosophy of the companies, who have had to base their success solely on the quality of their service and their relevant organizational cultures which support their philosophy.
The Singapore Airlines organizational culture revolves around customer satisfaction, innovation and service quality in order to operate in a competitive environment. . “SIA’s commitment to satisfying and motivating its staff lies at the heart of its corporate philosophy. Investment in human resource development is one area of the airline’s operations that has remained sacrosanct, despite the vagaries of cyclical financial conditions. It is simply too important.” (Quinlan, et al. 1991)
Research undertaken by scholars and industry professionals depicts that “safety, convenience and service quality have a major influence on the choice decision of air passengers. Passengers respond strongly to decreases in price, increased safety, service comprehensiveness and increases in convenience.” (Jou, et al., 2008) This is largely due to the increase in the number of airline sin the industry and the choice available to the customer, which drives the cost of a package down for the customer while forcing the airlines to be more cost effective and efficient in terms of their operations while simultaneously providing high quality services to the customers
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