SERVICE QUALITY AND CUSTOMER SATISFACTION IN AIRLINES A CASE STUDY OF IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN NIGERIAN DOMESTIC AIRLINES

INTRODUCTION

The airline industry stands as a cornerstone of global and national connectivity, enabling the swift movement of people, goods, and ideas, thereby driving economic growth, tourism, cultural exchange, and business expansion (Tiernan et al., 2008; Clemes et al., 2008). In Nigeria, Africa's most populous nation with over 200 million inhabitants, the aviation sector has evolved dramatically since the deregulation initiated by the Civil Aviation Act of 2000, which dismantled the monopoly of the state-owned Nigeria Airways and ushered in an era of private investment and competition (Adeola & Adebiyi, 2014; Okechukwu & Okechukwu, 2019). This transformation has led to the proliferation of domestic carriers such as Air Peace (established in 2013, boasting the largest fleet with over 30 aircraft and serving major routes), Arik Air (founded in 2006, known for its initial focus on reliability but facing recent financial challenges), and Dana Air (launched in 2008, emphasizing safety post a 2012 incident and operating Boeing 737s), which collectively handle approximately 80% of internal flights, transporting millions annually across hubs like Lagos (Murtala Muhammed Airport, processing 5 million domestic passengers yearly), Abuja (Nnamdi Azikiwe Airport, 3 million), and secondary cities including Port Harcourt, Enugu, and Kano (NCAA, 2025 annual report; Gambo, 2016).

However, this growth is tempered by systemic issues such as outdated airport infrastructure (e.g., frequent power outages and congested terminals), regulatory inconsistencies from the NCAA, volatile fuel prices influenced by global oil markets, and operational inefficiencies exacerbated by weather patterns and maintenance shortages, all of which compromise service delivery and passenger experiences (Adeyemi & Adeyemi, 2021; Wojuade & Onatade, 2020). Service quality, conceptualized as the multifaceted evaluation of how well airline services meet or surpass passenger expectations, encompasses tangible elements like aircraft cleanliness and seating comfort, reliability in terms of on-time performance and accurate information, responsiveness through prompt assistance and efficient complaint resolution, assurance via knowledgeable and courteous staff instilling confidence, and empathy involving individualized care and understanding of diverse passenger needs (Parasuraman et al., 1988; Rahim, 2016). Customer satisfaction, in turn, represents the holistic post-consumption affective and cognitive response to these service encounters, directly impacting behavioral intentions such as repurchase, positive word-of-mouth, and brand advocacy (Oliver, 1997; Hussain et al., 2015).

In the Nigerian context, where air travel often serves business professionals, tourists, and diaspora communities amid alternatives like road transport, high service quality is indispensable for fostering loyalty in a market projected to grow at 5.7% annually through 2030 (IATA, 2025 forecast). Yet, frequent complaints documented in NCAA logs—ranging from delayed flights (affecting 40% of departures) to rude staff and lost luggage—highlight pervasive dissatisfaction, with average ratings hovering at 3.2 out of 5 (Gambo, 2016; Chikwendu et al., 2012). The post-COVID-19 landscape has amplified these demands, with passengers prioritizing hygiene protocols, flexible policies, and digital check-ins, as global disruptions underscored the fragility of aviation services (Curtis et al., 2021; De Meyer-Heydenrych et al., 2022). This study empirically explores how service quality dimensions influence satisfaction among passengers of selected domestic carriers, offering data-driven insights to mitigate these challenges.

The importance of this study is multifaceted. For airline operators, it provides actionable benchmarks to enhance competitive positioning, potentially increasing market share by 15-25% through targeted improvements, as evidenced in similar emerging markets (Reichheld & Sasser, 1990; Farooq et al., 2018). Regulators like the NCAA can leverage findings to refine policies, such as mandatory service audits and consumer protection frameworks, promoting sector-wide accountability. Academically, it bridges gaps in localized research, where Western-centric models like SERVQUAL require adaptation to cultural nuances (e.g., communal values emphasizing empathy) in African settings (Mantey & Naidoo, 2017; Namukasa, 2013). Economically, boosted satisfaction could stimulate tourism (contributing 5% to GDP) and job creation (aviation supports 250,000 roles), while socially, it addresses equity by improving access for underserved demographics (Hasan et al., 2020; Law, 2022). In an era of digital reviews amplifying experiences via platforms like TripAdvisor and Google, unresolved dissatisfaction risks reputational damage, underscoring the urgency of this inquiry.

Key terms central to this discourse include: Service quality, the perceptual assessment of service delivery across five SERVQUAL dimensions, adapted for airlines to include flight punctuality and in-flight comfort (Parasuraman et al., 1988); Customer satisfaction, the discrepancy between pre-purchase expectations and post-experience perceptions, leading to loyalty or defection (Oliver, 1997); Nigerian domestic airlines, private carriers regulated by NCAA, operating internal routes with fleets like Boeing and Embraer aircraft, facing unique challenges like forex shortages for maintenance (Okechukwu & Okechukwu, 2019; Adeola & Adebiyi, 2014). These definitions form the foundation for analyzing quality-satisfaction dynamics in a resource-constrained environment.

Problem Statement

Despite deregulation spurring a 300% increase in domestic flights since 2000, Nigerian airlines grapple with entrenched service quality deficiencies: NCAA data reveal average delays of 50 minutes per flight, baggage mishandling affecting 12-15% of passengers, and customer service resolution rates below 55%, culminating in satisfaction levels as low as 52% in passenger surveys (Gambo, 2016; Rahim, 2016; Wojuade & Onatade, 2020). In key hubs like Lagos and Abuja, where 75% of traffic concentrates, these issues are exacerbated by overcrowded terminals and staff shortages, leading to perceptual gaps where expectations for reliable, empathetic service remain unmet (Adeyemi & Adeyemi, 2021; Chikwendu et al., 2012). Quantitative analyses indicate reliability and responsiveness account for 60-70% of complaints, fostering distrust and prompting 25% of passengers to switch carriers annually, with economic repercussions including NGN 100 billion in lost revenue and deterred tourism (Steven, 2012; De Meyer-Heydenrych et al., 2022).

Such distortions manifest through operational mechanisms like inadequate training (e.g., only 40% of staff receive annual updates) and infrastructural bottlenecks (e.g., runway limitations causing cascading delays), collectively undermining the sector's potential in a nation reliant on air travel for inter-state connectivity (Namukasa, 2013; Mantey & Naidoo, 2017). The problem is particularly acute post-COVID, with heightened expectations for sanitary conditions and flexibility adding layers of complexity (Curtis et al., 2021). Without systematic investigation, these gaps perpetuate a cycle of dissatisfaction, hindering Nigeria's ambition to become a regional aviation hub.

The academic justification for this inquiry stems from four critical gaps in existing scholarship. First, while service quality-satisfaction linkages are well-documented in developed markets (Hussain et al., 2015; Farooq et al., 2018), empirical studies in Nigeria remain limited, often overlooking cultural and economic moderators. Second, the focus on domestic carriers distinct from international ones necessitates targeted analysis, as local operations face unique regulatory and infrastructural constraints (Gambo, 2016). Third, post-pandemic dynamics, including digital integration, require updated frameworks beyond pre-2020 research (Curtis et al., 2021). Fourth, methodological shortcomings in prior works, such as small samples or qualitative bias, warrant robust quantitative approaches (Rahim, 2016). This study contributes to policy discourse by offering evidence-based recommendations for NCAA reforms, while advancing theoretical understanding of service management in emerging economies characterized by volatility and diversity.

Research Questions

i. To what extent does reliability in service quality influence customer satisfaction in selected Nigerian domestic airlines?

ii. How does responsiveness affect customer satisfaction in selected Nigerian domestic airlines?

iii. What is the combined influence of tangibles, assurance, and empathy on customer satisfaction in selected Nigerian domestic airlines?

Objectives of the Study

The primary objective is to examine the impact of service quality on customer satisfaction in Nigerian domestic airlines, with a case study of selected carriers.

Specific objectives include:

i. To assess the influence of reliability on customer satisfaction in selected Nigerian domestic airlines.

ii. To examine the influence of responsiveness on customer satisfaction in selected Nigerian domestic airlines.

iii. To investigate the combined influence of tangibles, assurance, and empathy on customer satisfaction in selected Nigerian domestic airlines.