An empirical assessment of willingness to accept “low-cost” air transport services: Evidence from the Middle East

Abstract

Despite the rapid growth of low-cost airlines in the U.S. and Europe, yet little is known about the feasibility of such services in developing and less developed countries. In such a region, hence, the purpose of this study is to investigate passengers’ preferences and willingness to accept low-cost air transport services. Accordingly, a choice experiment was applied to examine passenger choices associated with a bundle of service attributes applicable to low-cost air transport service. Results of multinomial logit models defined fare, frequent flyer program, food and beverage services, ground services, flexibility, frequency and punctuality as determining factors affecting passengers’ air transport choice in Iran. Results further demonstrated that passengers’ preferences and their willingness to accept low-cost air transport service are associated with their socio-economic characteristics and travel behavior. This study contributes to the relative body of knowledge through offering willingness to accept calculation as a strategic tool to assess the feasibility of low-cost air transport provision in a region where such services are yet scarce.