Journal of Danubian Studies and Research, Vol 8, No 1 (2018)

Abstract

An increase on frequency of Low Cost Carriers operating in an airport, indicates that price factor affects the number of passengers served, competition and passenger migration from one airport to another. For any given airport there will be passengers who differ in terms of their personal preferences, trip characteristics and service valuations. The aim of this paper is, to measure the passenger’s perception about low cost carriers, by providing empirical evidence regarding the influence of price factor in demand for air travel, with objective to analyze the passengers profile and relationship of their socio demographic factors with their flying preferences. The analysis of two group proportion tests and linear regression are the main methods applied. The findings show that passengers make up a heterogeneous consumer group whose flying is influenced more by airfare and personal circumstances. By applying a linear regression analysis, we have measured how the relationship between the independent variable “price” is related to changes in the dependent variable “demand” and we have approximated changes on passenger demand for the selected airports. The findings provide new insights for airport and airline operators, policy makers and civil aviation authorities.