Vietnam Airlines


Vietnam Airlines is the flag bearer of Vietnam, the state with population of 85 million and 330 000 square metre. It was established in January 1956 by the Government and marked the birth of air power industry in Vietnam, and served merely domestic flights ( Vietnam Airline, 2008 ) . After the terminal of Vietnam War, from 1976, Vietnam Airlines started international flights, including South East Asiatic states and China. Another turning point of Vietnam Airlines is twelvemonth 1993 when this air hose became the national flag Airlines of Vietnam. Nowadays, Vietnam Airlines connects 19 metropoliss throughout the state and 42 international finishs ( including code-sharing services ) in Asia, Europe, US and Australia, .

Mission: As a flag bearer, Vietnam Airline wants to be the span between Vietnam and other states in the universe and “bring Vietnam cultural to the world” ( Vietnam Airline, 2008 ) .

The International Air Transport Association ( as cited by Chan ( 2000 ) ) predicts air travel in Asian Pacific will account for 40 % in 2010. The potency of this air hose market additions due to the fact that the attractive of touristry, the emerging economic systems and the addition figure of middle-class. Unlike in Western state, surface transit, such as railroads, main roads in Asia is non good and hence, it can make chances for air hose transit as the lone and the faster manner.

Like other states in Asia, the potency of Vietnam market is high and untapped. In 2007, 4.2 million foreign visitants travelled to Vietnam, 16 per cent more than in 2006 ( Sydney Morning Herald, 2008 ) . And harmonizing to Sydney Morning Herald ( 2008 ) , Vietnam is ranked as figure 4 by The World Travel and Tourism Council on its list of the universe ‘s fastest turning travel finishs.

Vietnam ‘s domestic market is besides extremely possible due to the fact that surface transit substructure is non competitory. It takes more than 30 hours to go by train, from Hanoi to Ho Chi Minh City, much higher than about 2 hours of normal flight. Other alternate is managers which besides take clip and inconvenient. Although mean income per capita of Vietnamese is merely 835 US Dollars ( in 2007 ) ( General Statistics Office of Vietnam, 2008 ) , lower than other neighbour states, such as Thailand, Malaysia, Singapore ; the income additions bit by bit in the last few old ages increase 7 % per annum, shows the touristry potency of this air hose in Vietnam market. Furthermore, due to high population denseness and concern chances in two largest economic hubs of Vietnam: Hanoi and Ho Chi Minh City, travel demand for concern intent is really high.

However, air power service quality in Vietnam is far behind the international criterion. It is really easy to happen dozenss of articles of clients ‘ ailments about all three domestic air hoses in Vietnam: Vietnam Airlines, Indochina Airlines, Jetstar Pacific. Even in Vietnam Airlines, the national flag bearer and full service air hose, service bringing is chiefly product-oriented which has set the head of direction board to be far apart from customer-oriented. Customer dissatisfaction varies from booking services, hapless catering, the pique of air crew to luggage bringing services.

Broad purpose of the research:

Use SERVQUAL theoretical account to measure client satisfaction and service quality of Vietnam Airlines.

Research inquiries:

How can the client satisfaction with Vietnam Airlines be described?

How satisfied of Vietnam Airlines client with its services?

How can Vietnam Airlines directors improve the service satisfaction among Vietnam Airlines clients?

The chief intent of this survey is to look into client satisfaction in air hose industry. In the chosen air hose, Vietnam Airlines, the writer aims to research what client satisfaction is in the perceptual experiences of the air hose riders and happen the solutions to better client satisfaction. By analysing questionnaires and interview of clients, client satisfaction grade will be examined and after that, new schemes and recommendations will be given for Vietnam Airlines to heighten service quality. This survey aims to assist Vietnam Airlines direction to better name the clients ‘ demands and outlooks. It will besides play a function in placing the present state of affairs of this flag bearer and suggest hereafter schemes for better clients ‘ service.

Conceptual model:

To look into the service quality and client satisfaction of Vietnam Airlines, I will utilize the SERVQUAL theoretical account ( Parasuraman et al, 1985, as cited by Chau and Kao ( 2009 ) ) which the Delaware


The importance of client satisfaction:

Thank to good services and client satisfaction is met, behavioural Acts of the Apostless of client can impact the profitableness and market portion of a house through three chief behaviour: word-of-mouth, repurchase purpose and positive feedback.

The first client behaviour is “word of mouth” , defined by Saha and Theinge ( 2009 ) as a flow of information about merchandises and services that passes from one client to other and can be used as trustable beginning of information to measure recommendations ( oral cavity to talk selling ) . In all instance, client satisfaction does non ever make mouth-to-mouth selling but it is a necessity that satisfaction is met for positive word-of-mouth. Research conducted by Babin ( 2005 ) shows that non merely pleased clients generate world-of-mouth but besides highly disgruntled clients causes negative feedback and commanding two flows of information is necessary for sellers.

Second, good services besides lead to buy back purpose or client trueness. It is really necessary to derive trueness because it is cheaper to maintain old clients than lure new 1s from other service suppliers. Airline bearers frequently use “frequent circular scheme” but it is non frequently applied for budget air hoses due to the high cost. Merely by services and low-cost monetary value, low cost bearers can keep the figure of clients.

Another behaviour of clients as mentioned above, client behaviour, refers to transmittal of ailments and regards to service providers. Soderlund ( 1998 ) shows that disgruntled clients tends to bring forth negative feedback than positive one from satisfied clients. The figure of feedback can non be the most precise method for client analysis but it is utile to calculate consumer tendencies and better services.

Customer satisfaction in air hose industry:

Tai and Chan ( 2002 ) define service satisfaction as the station purchase rating of ingestion experience. Unlike stuff merchandises or pure services, air hose service- like other cordial reception services is combination of touchable merchandises and quality of service offered to riders. For illustration, satisfaction with cordial reception service- such as a eating house repast is merger of the nutrient or drink ( material merchandise ) , the behaviour of servers or waitresses, and the environment of the eating house ( ornament, illuming ) .

In air power industry, the nucleus merchandises are merely physically transport clients and their baggage between two finishs. Other services in a flight, such as doing question and engagement, place allotment, in-flight services and luggage handling are merely secondary undertakings but they can make dissatisfaction if it is performed severely.

Service quality and client satisfaction becomes critical in the sustainability of air power industry, establishing on following standards: fiscal informations, menus, rider burden factors, service related issues ( Sultan and Simpson, 2000 ) . Sultan and Simpson ( 2000 ) suggest selling schemes for air hose industry focal point on client satisfaction, instead than company net income. Airline service can besides be rated in footings of five dimensions: overall public presentation, comfort, service, nutrient and web site ( Rhoades, 2006 ) . On the other manus, Rhoades and Waguespack ( 2005 ) points out the operational steps of air hose service qualities: the figure of flight holds, mishandled luggage, overbooks flights and consumer ailments.

Merely a few air hoses ( including Singapore Airlines, British Airways and American Airlines ) can set up the repute of high service quality ( Chan, 2000 ) . These air hoses are successful in positioning themselves, non by offering the cheapest monetary values but presenting first-class service quality. Supplying consistent service quality is a challenge for all companies in service sector, including air hose industry. In these yearss, to maintain the high degree of choice criterion, mega bearers and little air hoses are collaborating instead than viing with others by sub-contracting, codification sharing and planetary selling web. ( Nejati et al, 2008 ) . The formation of these confederations increases the benefit of economic systems of graduated table by heightening flight handiness and output from clients. However, to work in effectual manner, two air hoses must offer similar service degree and place themselves in the same manner in the market.

Customer satisfaction Measurement

SERVQUAL -the spread theoretical account which is foremost proposed by Parasuraman ( 1985 ) ( as cited by Nejati, 2008 ) is a widely used theoretical account and has been applied for plentifulness of service industries: public services ( Bryland ( 2001 ) and Wisniewski ( 2001 ) ) , constabulary services ( Donnelly et al, 2006 ) , heath attention ( Kilbourne, 2004 ) , nomadic communicating ( Lai et al, 2007 ) , etc. SERVQUAL is based on the premise that the service quality is measured by the spread between the clients ‘ demands and wants of service and the existent service quality that clients receive from service supplier ( Donnelly, 2006 ) . If the service is over clients ‘ outlook, it is assessed as first-class service ; otherwise, the service becomes unacceptable. It is a utile method because service quality is assessed from clients ‘ positions, and by comparing and contrasting the difference between the each clients groups and the differences between the company and its rivals, directors know where they are in the market, how to place the service and which group will be the mark clients. Zeithaml ( 1990 ) ( As cited by Donnelly et Al, 2006 ) identifies five dimensions of service quality direction:

-Tangibles: the being of modern equipment and installations, professional employees, and communicating stuffs.

– Dependability: executing the service as promised, transporting out the service right at the first clip and pull offing to work out client services ‘ jobs.

– Responsiveness: willingness to assist clients, provide prompt service and preparedness to clients ‘ petition.

– Assurance. The cognition and courtesy of employees and their ability to convey trust and assurance.

– Empathy: understanding clients ‘ demand and wants and giving client ‘s single attending, convenient concern hours.

Among the five spreads of SERVQUAL, this research concentrates on Gap 5- the difference between clients ‘ outlook and perceptual experience. The ground for this restriction of the research due to the fact that it is the lone spread that can be investigated entirely by the informations provided by clients while other spreads need information from direction board and the company itself.


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