What drives passenger loyalty to traditional and low-cost airlines? A formative partial least squares approach

Based on a case study involving passengers from Lufthansa, Croatia Airlines and Germanwings, we examine the determinants of passenger loyalty among users of traditional full-service airlines and of low-cost carriers. In particular, using formative modeling the study analyzes the effects of service quality and price on carrier choice and loyalty. ► The paper offers a case study of customer loyalty for two traditional European airlines and a low-cost carrier. ► It makes use of a survey of passengers, supported by a Delphi analysis of experts to develop a formative model of loyalty. ► The studies find that pricing strategies and service quality dominate thinking regarding continued use of a carrier.