Low-cost carriers (LCCs) in Saudi Arabia operate in a competitive, highly demanding environment. Customer-related attributes may be influenced by the levels of service quality in a no-frills airline, which might impact satisfaction and loyalty. Given the unique traveler and market characteristics of the aviation sector in the kingdom, we sought to investigate the impact of service quality of LCCs on customer satisfaction and loyalty and the perceived airline image. A total of 299 passengers at two international airports were approached using a modified SERVQUAL scale. Results revealed that service quality was a significant predictor of customer satisfaction (β = 0.46, p < 0.0001), airline image (β = 0.55, p < 0.0001), and customer loyalty (β = 0.16, p = 0.006). The responsiveness dimension was the most important dimension of service quality, since it predicted all other constructs (satisfaction, loyalty, and brand image). Airline tangibles and reliability were independently associated with brand image and loyalty, respectively. Based on these results, LCCs should tailor future strategic plans that rely heavily on improving different service quality measures, particularly the responsiveness domain.
Keywords: brand image; customer loyalty; customer satisfaction; low-cost carriers; service quality.