COVID-19 and the Airline Business: A New Decision-Making Process for Employee Loyalty and Job Insecurity

Abstract

ABSTRACT Objective This study is designed to present a decision-making process forming airline crews’ loyalty intention to their company, comparing this process before and after the COVID-19 outbreak. Background Under the threat of COVID-19, the airline industry experienced unprecedented challenging times. Specifically, job security among airline employees was increasingly uncertain. Method Using survey methods, we developed the theoretical framework based on the theory of planned behavior and tested it using structural equation modeling and multigroup analysis. Results The results successfully embraced the process of volitional and non-volitional behaviors from its constituents. In addition, airline crew loyalty intention was influenced by company image and subjective well-being through attitude and job satisfaction. Lastly, perceived job insecurity moderated the relationships between variables, and the impact of employee attitude on job satisfaction and loyalty intention differed before and after COVID-19. Conclusion The developed theoretical framework sufficiently accounted for airline employees’ loyalty intentions. As a result, the findings of this research help researchers and practitioners find efficient ways of boosting airline crews’ positive attitude and loyalty in the post-COVID-19 era.