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Appraisal Ofpassenger Satisfaction with Air Transportation Servicesat the Domestic Terminals of Murtalamuhammed Airport, Lagos

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Appraisal Ofpassenger Satisfaction with Air Transportation Servicesat the Domestic Terminals of Murtalamuhammed Airport, Lagos American Journal of Social Science Research Vol. 3, No. 5, 2017, pp. 25-34 http://www.aiscience.org/journal/ajssr ISSN: 2381-7712 (Print); ISSN: 2381-7720 (Online) Appraisal ofPassenger Satisfaction with Air Transportation Servicesat the Domestic Terminals of MurtalaMuhammed Airport, Lagos Samuel Sunday Eleboda * Department of Administration and Management, College of Business and Social Sciences, Crawford University, Faith City, Nigeria Abstract Service expectationis widely recognized as a key influencer ofcustomer/passenger satisfaction and the formation of customers’ future purchase intentions which have implications for the firm’s bottom lines. Despite this fact, previous studies have largely focused on funding and its utilization in the air transportation sub-sector, coupled with recent and past operational challenges faced by airline operators, and the fear of air transportation by many Nigerians due to previous air crashes, there is the need to gauge the current level of passenger satisfaction vis-à-vis their service expectations as a means towards better performance. This study therefore investigatedthe current level of passenger satisfaction and the impact of expectation on satisfaction. Primary data were used for the study. These were collected through the adaptation of the SERVQUAL instrument. From the targeted population of 302,869 passengers, multi-stage sampling technique was used to select 268 passengers of airlines operating atdomestic terminals of the Murtala Mohammed Airport, Lagos. Of the 268 copies of the questionnaire distributed, 232 (86.6%) were retrieved. Data collected were analyzed using tables, frequencies, percentages, and multiple regression. The study found that that the industry as a whole has 82.61% satisfied passengers, though with varying degrees of satisfaction, while individual airlines ranked as follow: Medview airline, Aero Contractor, Dana Air, Azman Air, Arik Air, Air Peace, First Nation, and Overland. There is alsoa narrow gap between customers’ expectation of service and their level of satisfaction. It also found that expectation has low (about 12%) but significant impact on passenger satisfaction (R 2=0.115, p< 0.05). However, not all the dimensions of expectation have significant effect on passenger satisfaction. While Tangible, Reliability, Empathy, and Assurance have significant effect on passenger satisfaction and ranged from Tangible (β = 0.163; P< 0.05) to Assurance (β = 0.204; P< 0.05), Responsiveness has nosignificanteffect on passenger satisfaction (β =0.092; t = 0.763; P > 0.05). The study concluded that passengers are satisfied with the level of services they currently receive from the airline operators and the level of passenger satisfaction is above average. The study recommends that airline managers/operators should pay greatest attention to Assurance because it has the highest contribution to passenger satisfaction. They should also endeavour toinspire trust and confidence in their passengers through the knowledge and courtesy displayed by their employees, which are the key ingredients of the Assurance dimension. Keywords Passenger Satisfaction, Aviation Industry, Air Transportation, Domestic Airlines, Service Quality Received: August 20, 2017 / Accepted: September 19, 2017 / Published online: October 30, 2017 @ 2017 The Authors. Published by American Institute of Science. This Open Access article is under the CC BY license. http://creativecommons.org/licenses/by/4.0/ significantly to the Nigerian economy, and to her economic 1. Introduction activities and growth, by boosting trade, connecting cities and regions of the country, and providing jobs directly and As a service industry, air transportationcontributes * Corresponding author E-mail address: [email protected] 26 Samuel Sunday Eleboda: Appraisal of Passenger Satisfaction with Air Transportation Services at the Domestic Terminals of Murtala Muhammed Airport, Lagos indirectly. These submissions are exemplified by the report There have been many air crashes in Nigeria in the last that in 2010, the aviation industry contributed over N119 twenty years such that the fear of air travel appears to have billion (0.4%) directly to the Nigerian Gross Domestic engulfed the aviation industry and continues to scare Product (GDP) and additional N78 billion in ‘catalytic’ customers from air transportation. Besides, owing to a benefits through tourism, and also created about 160,000 jobs combination of several factors, including paucity of directly, and an additional 130,000 jobs through tourism investment, aviation policy inconsistency, low patronage and, (Oxford Economics, 2012). low margin and profitability, most Nigerian airlines may not The industryhas witnessed diverse changes in recent times have been able to satisfy local consumers let alone break into global markets, with the exception of Arik air which whichhave made customer satisfaction a major concern for currently operates international routes but currently airlines and their passengers (Ostrowski, O’Brien, & Gordon, 2013). For instance, in the last decade, additional airports experiencing operational difficulties due to debt overhang have been built or re-modeled, tickets are now (Ibah, 2017). Only recently, some airlines, such as Aero Contractors, Overland, and Arik have had to halt their accessibleonline, and airline traffic continues to fluctuate, operations, while others such as Bellview, Sosoliso, etc, have primarily as a result of the current economic situation of the simply closed shop. Today there are only 8 domestic airlines country. The situation has brought with it a high prospect for business losses, and has engendered fierce competition for still plying the Nigerian air space namely; Arik, Medview, the customer’s meager disposable income. The current dire Air peace, Azman, First Nation, Dana, Overland, and Aero Contractors. economic situations in Nigeria have further exacerbated the already dim industry circumstances. This is evidenced by the In a bid to improve the industry, between 2013 and 2014, fact that many domestic airlines have closed shop and several under the leadership of the former Aviation Minister are struggling to survive. Even recently, Arik Air, arguably (Princess Stella Oduah), the Aviation industry spent billions the industry leader, was taken over by the Asset Management of dollars (trillions of Naira) on revamping the infrastructural Company of Nigeria (AMCON) largely due to poor decay in the Nigerian airports (FAAN, 2015). Several operational statistics and debt overhang (Ibah, 2017). As a airports were re-modeled and upgraded. These were geared result, today, “airline business is intensely, vigorously, towards maintaining and possibly improving on the growth in bitterly, savagely competitive" (Zellner, 2013), and one major the industry. These may however not yield maximum benefits element for fighting this competitive battle is passenger to the final consumers unless a proper (customer) satisfaction, which directly or indirectly investigation/diagnosis, based on the customers’expectation determines passengers’ patronage, retention, andrepeat and perception, is first carried out. The reason is that if gap in patronage, and which in turn determine profitability, growth, quality exists (as it often does), it may actually not be related and survival. to infrastructures, and even if it is, it may not constitute the Competition is expected to be especially harsh within the ‘dimension’ with the widest gap requiring the most and Nigerian aviation sector because of the lean purchasing immediate attention, and may not have the power of the average Nigerian traveler. Airlines that intend to desired/anticipated impact on customer satisfaction. survive and grow must therefore be able to deliver quality Also, in solving the challenges of the industry, great service through a commitment to excellent service deliveryto emphasis appears to be placed on availability of funds enhance customer satisfaction. According to Aksoy, Atilgan, (especially for the purchase of new air buses) (Corporate and Akinci (2003), customer satisfaction is one of the most Guides Int. Ltd, 2011) without a similar focus on the important factors in the airline industry and is considered the utilization of available funds in terms of directing such funds heart of business success in today’s competitive world. to area(s) of operations where they are mostly needed. The Today there are over 13 million passengers traveling through judicious and appropriate application of this scarce resource is a paramount and sensitive decision area, and a prior Nigerian airports annually (National Bureau of Statistics knowledge of customer level of satisfaction and quality (NBS), 2016), and of this figure, about a quarter patronize gap(s) derived from a diagnosis of each operator’s service domestic airlines. For instance, there were 2,475,448 domestic passengertraffic in the first quarter of 2016, and offering would yield a more judicious use of the funds. This evaluative knowledge may be lackingpresently. 2,411,251 in the second (NBS, 2016), and Murtala Muhammad Airport (MMA) Domestic Terminals I & II, Aside these, between 2011 and 2012, there was a 4.9% Ikeja, Lagos (one of the oldest, recentlyre-modeled by the increase in passenger traffic globally (ICAO, 2016) and the federal government) accounts for the largest chunk. The number of passengers travelling through the air for both airport is also the aviation hub of majority of the domestic business and leisure purposes rose to
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