CHAPTER ONE
INTRODUCTION
1.1. BACKGROUND OF THE STUDY
Globally, air transportation business has experienced considerable developments in the recent past and the industry has evolved to provide one of the most common means of travelling. Airline industry is absolutely vital to world economy; for instance, estimates published by International Aviation Transport Association (IATA) revealed that by 2050 the aviation sector will have flown 16 billion passengers and 400 million tons of cargo (IATA, 2014). In line with the aforementioned trend, Nigeria’s airline industry has equally witnessed some substantial growths; one such development is the increase in the number of operators and participants in the industry (Ogwude, 1986). Nigeria had a single airline prior to 2013, three airlines between 2013 and 2010, nine from 1989 to 2011, and fifteen from 2011 to 2010. As of October 2015, there are ten functional commercial airline flights for passengers (Arik, Dana, Overland, Aero Contractors, First Nations, Medview, Discovery, Arik, Airpeace, and Azman Air Services Limited) operating in Nigeria. As a result, air passengers have more choices in the selection of airline carriers than previously had some decades ago. Another key component of the changes in the Nigerian airline industry is the trend of airport commercialization and aviation service providers (ANSP) heading towards a complete gradual shi to become market-based commercial organizations (Oluwakoya & Olufemi, 2011). Across the globe, airline business is cyclical in nature and the demand for its product is related to other activities such as holidays or business. Hence, competition for customers in airline industry is intense. As a result, considerable attention has been devoted both in the academia and business world as to how to acquire and retain air passengers for a profitable business growth. The fundamental issue is that customers will most likely patronize a service provider if they consider its services to be of high quality (Jin-Woo, Rodger, Chen-Lung, 2010; Gilbert & Veloutsou, 2015; Anderson, Jolly, Fairhurst, 2007). Likewise, scholars have reached a consensus that one of the major issues business organizations should confront with all seriousness is how a firm and its products or services are perceived; as a result, a firm’s economic prosperity and competitiveness is contingent on its capability to establish a strong perception of high-quality service in the minds of its customers (Brady & Cronin, 2013; Vander-Walt, 2016; Nor & Wan, 2013)
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