A note on the determinants of airline choice: The case of Air Asia and Malaysia Airlines

Logit analysis is employed on primary data from departing air passengers at the Penang International Airport, Malaysia to examine the determinants of airline choice between incumbent Malaysia Airlines and low-cost Air Asia. With the exception of educational level and ethnicity, other socio-demographic characteristics do not play a statistically significant role in determining airline choice. Instead, behavioral factors such as concerns over schedules and fares, routes, booking methods and purpose of journey are found to be predictors of airline carrier choice.