A study on passenger loyalty by using system thinking approach

Market shares and profitability are the most important elements that a business company needs to obtain in order to survive and continue operation in a competitive market environment. Airline sector is a high competitive and growing industry and through new entrants and customers? slightly changeable behavioural intentions, airlines operate in a high rated risky environment. Customer loyalty plays the key role in these circumstances for airlines to stabilize their financial position. Although airlines have tools of service quality, on-flights, fleet modernization, routes served, ticket agencies and some more to affect customer choice, loyalty at air transportation is dependent on other determinants such as security, capability of the destinated airport, market conditions including; competitiveness among new entrants and existants, fuel costs and government regulations.Defining the variables of loyalty that affect on airline travellers? choices and drawing causal loop diagrams with the information gathered will help to form a perspective for airline management to a healthy organizational environment. In Turkey, this study is aimed to pull competitiveness between airlines to an optimum level that will support both passengers and firms with more benefits than the current conditions.