Factors influencing competitive pricing for airlines in Malaysia

Abstract

The purpose of this study is to determine the factors that influenced competitive pricing for airlines in Malaysia. A particular route, Kuala Lumpur to Singapore has been selected as the case study whilst observing a comparison of competitive pricing between full service and low cost carriers. 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 on average in both directions for international route Kuala Lumpur to Singapore on an annual basis. This study will try to explore the influence in competitive pricing between forecast on demand and product quality. A framework model has been proposed to determine the factors on competitive airlines pricing in Malaysia. The outcome of this study is to assist airlines to develop an effective approach for competitive pricing for passengers to choose their desired air carrier for short haul flight sectors.