Vietnamese (VN)English (UK)

Airline choice for domestic flights in Vietnam: application of multinomial logit model

(A thesis submitted in partial fulfilment of the requirements for the degree of MASTER OF ARTS IN DEVELOPMENT ECONOMICS, VIETNAM – THE NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS)

By Tran Phuoc Tho (VNP 21)

Academic Supervisor: Dr. Truong Dang Thuy

Abstract:

In 2015, Vietnam witnessed the booming of airline industry. The participation of low cost carriers makes the airline market more and more competitive. Understanding the behavior of passengers is essential for any carriers to make their strategic policies. This study employs the multinomial logit model with the data of 122 respondents to investigate the impacts of characteristics of passengers as well as attributes of airlines on the airline choice. The characteristics of passengers include age, gender, marital status, education, and income whereas the attributes of airlines consist of price, number of flights of airlines, punctuality, comfort of seat space, and quality of check in service. When comparing one airline and the based airline (Jetstar), the attributes of the third airline is also necessary to be taken into consideration. In general, a good judgment of service of an airline makes the odds ratios of that airline and the base increased. In contrast, a good evaluation of the based carrier or of the other airline makes the odds ratios declined. Besides that, income has positive association with probability of choice Vietnam Airline and Vietjet but negative relation with Jetstar, holding other variables constantly.

Keywords: airlines, passengers, air travelers

Abbreviations: VNA - Vietnam Airlines, VJ – Vietjet, BL – Jetstar

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Full version is available at Library of Vietnam- Netherland Progamme: 1A Hoang Dieu, Phu Nhuan Dist, Ho Chi Minh city, Vietnam.