A study on determining factors influence pricing competitive for airlines in Malaysia

Abstract

The purpose of this study is to determine the factors influence pricing competitive dynamic airlines by passenger for the specific routes of Kuala Lumpur to Singapore between the Prime Carrier and Low-Cost Carrier. This research was derived in response of World’s Busiest International Air Routes report from OAG Aviation Worldwide that shows more than 30,000 flights frequency in both directions for international route Kuala Lumpur to Singapore during 12 months in 2018. This study will be understanding the influence in pricing competitive between forecast on demand, and product quality. A framework model has been proposed to determine the factors on competitive airlines pricing in Malaysia and the variables are Market Segmentation, Product Quality and Demand Forecast. This research used a quantitative data collection method to gather or to prompt information from respondents, in this case passenger who is using flights from Kuala Lumpur to Singapore. A total of 424 passengers was sampled and the set of questionnaires were distributed using the non- probability sampling technique which is convenience sampling to obtain sample data to be analyzed. The analysis in this study was conducted using descriptive statistical analysis tools. – SPSS – version 23. Results from the multiple analysis demonstrate that product quality and demand forecast as factors influencing pricing competitive.