Service quality and customer satisfaction- Its impact on customer loyalty. (Passengers survey of domestic full service airlines company “Kingfisher Airlines Ltd.” in India)

The aims of research are: 1) Analyzing service quality, customer satisfaction and loyalty of full service airlines company Kingfisher Airlines Ltd., India and 2) Testing hypothesis on the influence service quality and customer satisfaction on customer loyalty of full service airlines company in India. Unit of observation are 160 passengers of ten profitable domestic routes of full service airlines company Kingfisher Airlines Ltd., India such as; Hubli-Mumbai, Hubli-Bangalore, Bangalore-Chennai, Kandla-Mumbai, Chennai-Ahmedabad, Chennai-Port Blair, Delhi-Guwahati, Chandigarh-Delhi, Delhi-Jabalpur, and Simla-Delhi. Design of research is ex post facto (non-experimental), type of research are descriptive and explanatory survey, sampling technique is convenience sampling, and method of analysis is structural equation modeling (SEM). The results of descriptive research are: 1) service quality performance of full service airlines (Kingfisher Airlines Ltd., India) is 88.76% (consists of; reliability is 88.07%, responsiveness is 86.76%, assurance 87.39%, empathy is 90.52%, tangible is 91.05%); 2) customer satisfaction performance of full service airlines (Kingfisher Airlines Ltd., India) is 80.15% (consists of; service quality 86.76%, product quality is 81.37%, price is 85.05%, personal factor is 67.97%, situational factor is 79.58%); 3) customer loyalty performance of full service airlines (Kingfisher Airlines Ltd., India) is 85.46% (consists of; cognitive loyalty is 89.95%, affective loyalty is 89.46%, conative loyalty is 82.35%, action loyalty is 80.07%). The results of explanatory research are; 1) Simultaneously, service quality and customer satisfaction influence significantly on customer loyalty (R² = 0,8115%); 2) Partially, service quality influences significantly on customer loyalty (R² = 0,0729), and customer satisfaction influences significantly on customer loyalty (R² = 0,5183). According to hypothesis testing indicate that the influence of service quality on customer loyalty is lower than customer loyalty on customer loyalty. Based on descriptive and explanatory research finding indicate that full service airlines company (Kingfisher Airlines Ltd., India) is excellence performance.