Dr Chris Baumann contributed a piece to Aviation Business
Publication: Aviation Business
Topic: Airlines challenging marketing wisdom
Date: March 2014
Dr Chris Baumann from the Department of Marketing and Management wrote a piece for Aviation Business.
Dr Chris Baumann has some interesting takes on airline service levels and their associated costs. His perspective helps to understand why legacy carriers such as your own Qantas struggle to compete with the late-comers to the global scene.
"In most airline industry we seem to find almost a reverse relationship, where the legacy carriers in the US and Europe, and indeed here, have some of the highest service delivery and overall costs; but in actual fact, when we look at the customer satisfaction rankings, it seems that the more cost effective carriers in the Middle East and the strong emerging brands in Asia get much better rankings by the consumers."
Baumann suggests that this is so despite the fact that the cost differentiation between the full service airlines and the low cost carriers is actually shrinking.