A research study submitted in partial fulfillment of the requirements for the degree of Mater of Business Administration.

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1997

With the development of the economy, the demand for air transportation in Vietnam is increasing rapidly. The requirement for truly civil air transportation is very urgent. Vietnam Airlines was established from the army's air transportation operation in order to meet this demand in 1976. But until 1993, Vietnam Airlines was in full state ownership with autonomy in doing business. Because it is a young airline operation in a fast changing environment, Vietnam Airlines faces many difficulties in reaching world level in service quality and meeting competition in the global market. The best way to take off for the company now is to improve its service quality management. This research examines quality issues in the passengers service of Vietnam Airlines Corporation. Starting from investigating potential service quality models such as SERVQUAL, this research developed the passenger survey for evaluating passenger perception and expectation of service quality of the flag carrier - Vietnam Airlines. The research found that while passengers accept service quality of Vietnam Airlines, they still expect higher. Though service quality of the airlines is still in low level, the competitive advantage of Vietnam Airlines is based on its low price strategy. This study also makes recommendations for the airlines to improve its service quality within its financial and human resources. Finally, the results of this study are expected to help the airlines management and employees to improve service process performance under perception of quality management.