Improving the ground service quality of vietnam airlines at noibai international airport

EVALUATING THE GROUND SERVICE QUALITY OF VIETNAM AIRLINES AT NOIBAI INTERNATIONAL AIRPORT .... SOME SOLUTIONS TO IMPROVE THE QUALITY OF GROUND SERVICES OF VIETNAM AIRLINES AT NOIBAI INTE

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2019

DECLARATION

The author confirms that the research outcome in the thesis is the result of author‟s independent work during study and research period and it is not yet published in other‟s research and article

The other‟s research result and documentation (extraction, table, figure, formula and other document) used in the thesis are cited properly and the permission (if required) is given

The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration

June 01, 2019

ACKNOWLEDGEMENT

A completed study would not be done without any assistance Therefore, the author who conducted this research gratefully gives acknowledgement to their support and motivation during the time of doing this research as a requirement of completing

First of all, I would like to express my sincere thanks and deep gratefulness

to Dr Hoang Anh Tuan for his dedication to help and guide me to carry out my research Without his motivation and instructions, the thesis would have been impossible to be done effectively I also would like to express sincere gratefulness

to the teachers who have provided me with useful knowledge in the past school years

My special thanks approve to the leadership board of Noibai Operation Center - where I am working, facilitating us during the learning process

At last, my deeply thanks come to my family, friends who have always encouraged me in the process of implementing my research thesis

Despite my efforts, due to limited knowledge and research time, the thesis is inevitable The author hopes to receive valuable comments from teachers, friends and colleagues for the thesis to be completer and more practical

TABLE OF CONTENTS

ABBREVIATION i

LIST OF TABLES ii

LIST OF FIGURES iii

THE OPENING CHAPTER 1

CHAPTER 1 THEORETICAL BACKGROUND ON THE AIRLINE‟S GROUND SERVICE QUALITY AT THE AIRPORT 7

1.1 Airline‟s ground service quality at the airport 7

1.1.1 Definition 7

1.1.2 The role of ground services of airlines at airports 8

1.1.3 Characteristics of airline’s ground services at airports 9

1.1.4 Airline’s ground service classification 13

1.2 Ground service quality of an airline at the airport 15

1.2.1 Definition of ground service quality of an airline at the airport 15

1.2.2 Some models of service quality assessment 17

1.2.3 Selecting models to evaluate the quality of ground services of airlines at airports 21

1.2.4 Criteria for evaluating the quality of ground services of airlines at airports according to model SERVPERF 22

1.2.5 Factors affecting the quality of ground services of airlines at airports 27

CHAPTER 2 EVALUATING THE GROUND SERVICE QUALITY OF VIETNAM AIRLINES AT NOIBAI INTERNATIONAL AIRPORT 34

2.1 Introduction to Vietnam National Airlines 34

2.1.1 The process of formation and development of Vietnam Airlines 34

2.1.2 Business Fields 35

2.1.3 Vienam Airlines’organizational structure 37

2.1.4 Business results of Vietnam Airlines in the period 2016-2018 38

2.2 Status of ground service quality of Vietnam Airlines at Noibai International Airport 39

2.2.1 The importance of factors constituting the quality of ground services of

Vietnam Airlines at Noibai International Airport 39

2.2.2 Reliablity 41

2.2.3 Responsiveness 44

2.2.4 Service capacity 47

2.2.5 Empathy 51

2.2.6 Tangible means 54

2.3 Evaluation of ground service quality of Vietnam Airlines at Noibai International Airport 59

2.3.1 Strength of ground service quality of Vietnam Airlines at Noibai 59

2.3.2 Weaknesses in ground service quality of Vietnam Airlines at Noibai International Airport 60

2.3.3 Causes of the weaknessess 61

CHAPTER 3 SOME SOLUTIONS TO IMPROVE THE QUALITY OF GROUND SERVICES OF VIETNAM AIRLINES AT NOIBAI INTERNATIONAL AIRPORT 68

3.1 Development strategy and the direction of ground services development of Vietnam Airlines at Noibai International Airport until 2023 68

3.1.1 Basis for business and production plans for the period 2019-2023 68

3.1.2 Vietnam Airlines’ strategic objectives for the period 2019-2023 68

3.1.3 Orientation for ground services development of Vietnam Airlines at 69

3.2 Some solutions to improve ground service quality of Vietnam Airlines at Noibai International Airport 70

3.2.1 Solution to improve reliability 70

3.2.2 Solution to improve Responsiveness 73

3.2.3 Solution to improve service capacity 74

3.2.4 Solution to improve empathy 75

3.2.5 Solution to improve tangible means 75

3.2.6 Other solutions 77

3.3 Some recommendations 83

CONCLUSION 86 REFERENCES 87

ABBREVIATION

VNA: Vietnam Airlines

NOC: Noibai Operation Centre

VIAGS: Vietnam airport ground services company limited NASCO: Northern airport services company

Party: Vietnamese Communist Party

LIST OF TABLES

Table 1.1: Table of classification according to service nature 15

Table 1.2: Criteria to evaluate the reliability of VNA's ground services at Noibai airport 22

Table 1.3: Criteria for evaluating the Responsiveness of VNA's ground services at Noibai airport 24

Table 1.4 Criteria to evaluate VNA's ground service capacity in Noibai 25

Table 1.5: Criteria for evaluating the empathy of ground services of VNA in Noibai 26

Table 1.6: Criteria for evaluating the tangible means of ground services of VNA in Noibai 27

Table 2.1 Passenger transport indicators for the period 2016-2018 39

Table 2.2 Results of production and business activities in the period of 2016-2018 39

Table 2.3: Model Summary 40

Table 2.4: Responsiveness of ground services of VNA at Noibai airport 45

Table 2.5 Satisfaction level of passengers with tangible means of VNA check-in service in Noibai 54

Table 2.6: Customer satisfaction level with tangible means of business lounge service in Noibai 56

LIST OF FIGURES

Chart 2.1 The trust level of customers with VNA's ground service in Noibai - 41 Chart 2.2 Customer satisfaction level about Staff's communication skills, professional knowledge - 49 Chart 2.3 Customer satisfaction level about Staff's politeness and frendliness - 50 Chart 2.4 Customer satisfaction level about Staff's language proficiency - 51

OPENING CHAPTER

1 Rationale

In 2019-2020, the world economy is forecasted to grow positively, more than

2018 but still implies risks such as global trade tensions, the split between the internal Europe, the instability of Chinese economy The socio-economic situation

of Vietnam in 2019 is forecasted to be positive, but in overall, it will still face many difficulties In addition to the optimistic forecasts for the domestic economic situation, the fuel price is likely to rise and the growth potential of the aviation market, the business environment are still instable and unpredictably fluctuating In particular, the competitive situation will be increasingly fierce, both in the domestic and international markets Foreign airlines will continue to dump into Vietnam, compete directly with Vietnam Airlines on both 2 hub airports: Hanoi and Ho Chi Minh City In Vietnam, low cost carriers are continuing to expand their operations and receive new aircrafts There will be no flights that Vietnam Airlines has absolute advantage and there will not be many opportunities that passengers can only choose Vietnam Airlines The battle for market share, ensuring revenue will really be vital to Vietnam Airlines over the network of international and domestic flights Due to the difficult market situation, Vietnam Airlines in general and Noibai Operation Center in particular are under high pressure of competition

Along with the development of the economy, the demand for travel of the people

is increasing, coupled with the increasing awareness and demand of customers, customers have more and more chance to choose favorite and suitable airlines

In order to survive and develop in this fierce competitive environment, the key issue facing Vietnam Airlines is to improve the quality of service to improve the level of customer satisfaction in overall and at Noibai international airport in particular

Recognizing the importance of this issue, the author decides to choose the

topic: "Improving the ground service quality of Vietnam Airlines at Noibai international airport" as a research topic for the thesis

2 Literature review

In recent years there have been studies on the quality of services and the

quality of aviation services with different perspectives, research subjects and levels They can be summerized as follows:

- The thesis of Master Tran Thi Thu Hoai: "Improving the quality of internet

services at the Data Communication Company - VDC" Code 60.34.05 Thesis was completed and defended in 2010 at the Institute of Posts and Telecommunications

Objectives of the study: Analysis and assessment of the quality of internet

services at VDC and proposing some solutions to improve the quality of internet services at VDC

Study scope: Quality of internet services at the Data Communication Company

- VDC

- The dissertation of Doctor Nguyen Thi Ngoc Bich: "Completing the law on public services in the administrative field in Vietnam" Code: 62.38.01.01 The dissertation was completed and defended in 2012 at Hanoi Law University

Objectives of the study: Proposing feasible scientific solutions to improve the

law on public services in the administrative field, limiting the shortcomings in the implementation of the law in order to provide high quality public services in accordance with the basis of law

Study scope: Studying the regulations on public services in the administrative

field in Vietnam, elaborating and improving the law, studying and evaluating the legal provisions on public administrative services

- The thesis of Master Ngo Thi Minh: "Improving the quality of legal

consultancy services provided by VIETBID Law co.,ltd"

Objectives of the study: Analysing the status of legal consultancy services at

VIETBID Law co.,ltd, on the basis of finding strengths, weaknesses and causes of weaknesses of the quality of legal consultancy services of the Company, proposing some solutions to improve the quality of legal consultancy services of the Company

Study scope: The thesis concentrated on the research and assessment of the

quality of legal consultancy services at VIETBID Law co.,ltd

- The thesis of Master Nguyen Viet Tuan: “Researching some solutions to

improve the quality of passenger transportation services - applied to Vietnam

Airlines" Code 60.84.10 The thesis was completed and defended in 2011 at the

University of Transportation

Objectives of the study: Analysing the status of passenger transportation of

Vietnam Airlines in the period 2000-2010, proposing solutions to improve the quality of passenger transportation services of Vietnam Airlines

Study scope: Situation of passenger transportation on domestic and

international flights of Vietnam Airlines

The gap of concerning theses: There were some theses studying on the general

quality service improvement, analysing a specific service type of the business such as firm‟s internet services, law consultancy services but there is no thesis styding on one arline‟s ground service quality Moreover, in Vietnam Airlines there is already a thesis studying on improving the quality of passenger transportation services However, this thesis only focused on the qualitative analysis on the overall level of all the services provided on the whole network of the company, not focused on deep research, has not built the scale of service quality assessment for the ground services of the company at

Noibai international Airport Therefore, the study of the topic of “Improving the

ground service quality of Vietnam Airlines at Noibai international airport” does not

coincide with the previous research topics that the author know and the study of this topic also has theoretical and practical significance

- Proposing some solutions to improve the ground service quality of Vietnam Airlines at Noibai international airport

The thesis will answer the following basic questions:

- What model can be used to evaluate the quality of Vietnam Airlines‟ ground

services at the airport?

- What are the criteria for Vietnam Airlines‟ground services at the airport?

- How is the quality of Vietnam Airlines‟ground services at Noibai airport?

- What to do to improve the quality of ground services of Vietnam Airlines at Noibai airport?

6 Research methodology

6.1 Theoretical framework

6.2 Data sourcess

6.2.1 Secondary data source

Secondary data will be derived from reports from Vietnam Airlines, such as Company Performance Report from 2016-2018, SkyTrax, SkyTeam and other reports

6.2.2 Primary data source

The thesis will use method of Vietnam Airlines' passenger survey, in-depth interviewing with customers, leaders and employees of some companies providing

Factors affecting the

and supervising ground services for Vietnam Airlines through surveys and in-depth questionnaires

- Investigation by the company’s customer surveys, detail as follows:

+ The survey subjects include: passengers who have been using ground services of Vietnam Airlines in Noibai airport; leaders, officers and employees of some companies providing and supervising ground services of Vietnam Airlines at Noibai airport

+ Content: Assessment of the quality of Vietnam Airlines ground services in Noibai airport by scoring on a scale of 1 to 5

+ Method of issuing surveys: via email, at the counters, or asking directly to fill in the surveys

+ Survey period: October to November 2018

- In-depth interview by questionnaires:

+ Interview location: Noibai International Airport

+ Interview method: asking directly or through telephone

+ Interview time: October to November 2018

6.3 Methods of information processing

The thesis will use analytical and synthesis methods; system analysis method; method of investigation and statistics; quantitative survey method to study the quality of ground services of VNA at Nọibai airport The main method is collecting information through survey questionnaires, interviews, analysis and team work with the managers of the companies Survey and interview results will be processed by

Exel software, SPSS The thesis will use inference, regression, generalization to make conclusions and solutions to improve the quality of ground services of Vietnam Airlines in Noibai international airport

7 Thesis structure

Beside the introduction, conclusion, list of references, the thesis consists of 3 chapters:

Chapter 1: Theoretical basis of airline’s ground services at the airport

1.1 Ground services of airlines at airports

1.2 Quality of ground services of airlines at airports

Chapter 2: Evaluating the ground service quality of Vietnam Airlines at Noibai International Airport

2.1 Introduction to Vietnam National Airlines

2.2 Status of ground service quality of Vietnam Airlines at Noibai International Airport

2.3 Evaluation of ground service quality of Vietnam Airlines at Noibai International Airport

Chapter 3: Some solutions to improve the quality of ground services of Vietnam Airlines at Noibai International Airport

3.1 Development strategy and the direction of ground services development of Vietnam Airlines at Noibai International Airport until 2023

3.2 Some solutions to improve ground service quality of Vietnam Airlines at Noibai International Airport

3.3 Some recommendations

CHAPTER 1 THEORETICAL BACKGROUND ON THE AIRLINE’S

GROUND SERVICE QUALITY AT THE AIRPORT

1.1 Airline’s ground service quality at the airport

1.1.1 Definition

When the economy grows, the role of services becomes increasingly important and services have become the research objects of many different fields: from economics to culture, law, from administrative to faculty learn management Therefore, there are many different concepts of services and different ways of understanding the meaning of services

From the economic point of view, the nature of the service is the supply to meet the needs such as tourism, fashion, health care and it is profitable

According to Philip Kotler, “ A service is an act of performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything Its implementation may or may not be tied to a physical product”

According to Article 4.2, Law on Price No 11/2012 / QH13 of the National Assembly of Vietnam dated June 20, 2012 which is effective from January 1, 2013:

“Service is intangible goods Its production process and consumption process are inseparable, including all types of services in the system of Vietnamese products in accordance with the law”

The most widely used current service concept is the concept according to ISO

9004 -2: 1991E: "Service is the result of interaction between suppliers and

customers, thanks to the activities of supplier to meet consumer needs ”

From the above definition it can be understood that, what is not cultivated, not producted is a service For example: hotels, entertainment, insurance, health care, education, finance, banking, transportation, legal consultance

* Definition of airline’s ground service quality at the airport

From the approach of ISO about service, we can give the definition of ground services of an airline at the airport as follows:

Airline’s ground services at the airport are the result of interaction between

the ground service provider at the airport of an airline and the customer, as well as the activities of the provider in order to meet the needs of consumers of airline ground services at airports

1.1.2 The role of ground services of airlines at airports

Air services during flight operation are constituted by many processes According to the supply process, air services are comprised of two main groups: ground services at airports and inflight services Boundary is used to identify the responsibilities of each division involved in the services is aircraft door

The inflight services mean the services provided on an aircraft These services include meals, newspapers and magazines, entertainment activities on airplanes such as video games, movies, wheelchairs, air plane comfort These services are significantly different between business class and economy class

Airline‟s ground services at airports have a particularly important role in getting the final service product: perfect inflight services The final product of the ground service of the airline at the airport is to satisfy all the pre-and post-flight needs of the passengers such as suitable seating for passengers on the plane, reservation of meals, baggage handling, load balancing, guide and control passengers on board, serve safe and efficient flights, passenger dissembarkation control, and get checked baggage, guide guests on related tranfer procedures If the airline's ground service is not performed, no flight will be operated This is an indispensable chain in the process of providing air services to customers

Ground service is the first stage of passengers experiencing the service of the airline at the airport It creats an initial impression to passengers during the process

of using the services A bad first impression will create a negative impact on passegers' perception of the entire service of the entire flight In particular, in the case of unusual flights, the time passengers use the ground service at the airport usually lasts longer, even more than the time the passengers take the flight The delay itself has caused passenger dissatisfaction If the airline's ground service is perfectly provided, it will be an opportunity to receive empathy from passengers and thereby build trust and loyalty of passsengers with the airline

1.1.3 Characteristics of airline’s ground services at airports

The ground service of the airline at the airport has all 5 characteristics of the service

in general and it also has its own characteristics

General characteristics of the service

Service is a special product, has many different characteristics from other goods There are five characteristics that are often given to differentiate services

from other types of goods: 1) zero loss, 2) intangibility, 3) simultaneity, 4) and 5)

 People play an absolutely important role in the quality of ground services

of airlines at airports

 The quality of ground services of airlines at airports is assessed according

to the perception of customer satisfaction

(2) Relative Intangibility

 The product of the ground service of the airline at the airport is invisible It

is the process of communicating between ground staff and passengers to carry out procedures for passengers, taking passengers to the aircraft These specific service steps customers cannot see, taste, touch, smell before using as other commodity products The results obtained from customers are usually a pleasant experience or not Due to this intangible attribute, it is difficult for users to assess the quality of ground services of the airline at the airport before, during and even after using the service

 To reduce uncertainty when using the ground services of airlines at airports, customers will have to search for information sources such as brand, reputation of the airline in the market and the cost is commensurate with the quality

of service as expected

(3) Simultaneity of production and consumption

 Production and consumption processes cannot be separated Customers will decide the production of the service An airline cannot create a service without a passenger Customers are both consumers and direct participants in the production process The production of the service ends when the consumer process ends Therefore, customers who need to use ground services from airlines at airports must contact the service provider directly to satisfy their needs

 This is a feature that clearly shows the difference between goods and services Production and consumption of goods are two separate activities Goods normally produced at a production facility are then shipped to where most customers want to buy Production and consumption of goods are considered to be separate

(4) Instability

 Airline ground services are provided by people (ground service staffs) to people (airline passengers) People may require high- or low-quality service Example: Passengers may not buy airline tickets if the service attitude of the ground staff is not professional, the check-in staff cannot guarantee the aisle seat if the passenger does not pre-reserve seat before the flight or not request at check-in counter Airline ground services at the airport are highly labor-intensive and characterized by high levels of communication between ground staffs and airline passengers The quality of these interactions affects service perception Especially human behavior, the attitude of communication with each other, the willingness to participate and meet the needs of each party, the motives and personal characteristics are interplaying in the production process and service consumption This requires managers to focus more on selecting, training, arranging and treating employees to provide high quality services

 Because customers want to be taken care of as individual people, the airline's ground services are often personalized and heterogeneous Airlines are difficult to provide service standards to satisfy all customers in all circumstances because that satisfaction depends on the perception and expectations of each customer

(5) Storage inability

 Due to the simultaneity of production and consumption of services, the ground service of the airline at the airport cannot be stored A check-in counter cannot be opened during off-peak hours and cannot be stored for additional service during peak hours Like the idle time of the check-in staff: when the passengers are absent, they cannot be reserved for the time when the passengers go east and accumulate

 Commodity products can be returned or exchanged for other products, but the ground service of the airline at the airport cannot be returned

 It is not possible to check the quality of the ground service of the airline at the airport before providing it The airline's ground staff only must comply with the laws and professional ethics, strictly follow the process, guide from the beginning to the end

The specific characteristics of the ground service of the airline at the airport

In addition to the general characteristics mentioned above, the ground services of

airlines at airports also have its own characteristics: 1) Plan nature, 2) Seasonality, 3)

various tangible element containing, 4) high service intensity, 5) safety

(2) Seasonality

 The airlines are highly dependent on consumers - a typical element of the outside environment while the demand for air transport services is markedly

seasonal Ground services of airlines at airports are not outside of that rule Because the ground services of the airlines at the airport are complex, with the participation

of many manufacturers and suppliers of intermediary services such as check-in, inflight meal and beverage providing, aircraft technical maintenance, catering services in case of irregular flights .) so seasonal changes in consumers also strongly affect the operation of these manufacturers and supplier and therefore make the ground services of airlines at the airport also seasonal

(3) Various tangible element containing

 The technical facilities for ground services at the airport require a high degree

of uniformity, corresponding to the number of flights, the number of customers and the customer's requirements The synchronization is expressed in equipment such as the system of signs, flight information screens, carpets, piles, barriers, publications, all kinds of machines serving the process of check-in like computers, boarding pass printer, baggage tag printer, boarding pass reader at boarding gate and in business class lounge, announcement system, wheelchair, radio

(4) High service intensity

 Due to the characteristics of the airport far away from the city, passengers have the habit of coming to the airport right before take-off time so the service intensity of the ground service of the airline at Noibai international airport is often high and in each specific time frame For some Northeast Asia flights, passengers often have the habit of coming early and queuing before the opening time, so the representative must coordinate with the relevant units to open the counters early to relieve passengers

(5) Safety

 More than any other industries, aviation is one of the most challenging industries Airline‟s motte is S.P.E.C: Safety, Punctuality, Economic and Comfort The media often tend to exacerbate aviation accidents stemming from the fact that plane accidents are often catastrophic and cause great losses both in human and economic terms Thus, above all, the safety motto is always set first in air transport industry Due to the characteristics of the field of passenger and baggage transport,

all employees involved in serving at all service stages are required strictly adherence to security processes, regulations and Vietnam civil aviation security program The goal is to ensure safe and efficient flights

1.1.4 Airline’s ground service classification

There are many ways to classify ground services of airlines at airports such as classification according to service objects, service stages, service nature, and consumption structure

Classification according to service objects

Depending on the passenger position, the ticket fare, the travel frequency with the airline, Vietnam Airlines has developed a set of separate service standards and ground service procedures at the airport, specifically:

- Ground service for business class passenger

- Ground service for VIP-CIP passenger

- Ground service for Lotus mile program member

- Ground service for high turnover economy passenger

- Ground service for VIP foreign passenger

- Ground service for SkyPriority passenger

Classification according to service stages

By this classification, the ground service of the airline at the airport consists of three main groups of services: check-in services, airport services, and boarding services

Check-in services include welcoming passengers at the airport, check-in procedures for passengers: economy class passengers, business class passengers, group passengers, web check-in passengers, VIP passengers, CIP passengers, Lotus mile program passengers In the process of check-in procedures for passenger, the staffs comply with the procedures: greeting, receiving tickets and relevant documents according to the regulations of the airport authorities, asking passengers about the needs of the seats, issuing the boarding pass, asking passengers about checked baggage, weighing and printing checked baggage tags, and guiding passenger for follow-up procedures (security check, boarding gate, time passenger

must be present at the boarding gate for the flight )

Service at the airport is determined from the time the passenger completes check-in procedures until boarding time This service includes 2 groups: airport services for passengers and airport services for luggage Airport services for passengers include: passenger assistance at security, border police, customs; notifying passengers on board on time; guiding and welcoming guests to the hotel; serving food or beverage in case of delayed flight, cancelled flights; welcoming and guiding passengers on international and domestic flights; transfer procedures; assisting passengers with special needs, medical services, business lounge services Airport services for luggage include: lost and found services (tracing for lost luggage, instructing passengers about luggage compensation procedures, passengers' luggage preservation and, abnormal luggage handling, special luggage service (government documents, diplomatic bag )

The boarding service is determined from the time passengers are notified to board the plane until they sit on the plane It is carried out by two ways: by aero-bridge or by bus Boarding staff will be present at the boarding gate 10 minutes before boarding time for preparation, passenger invitation, instruction and passenger control to ensure that passengers aboard the plane on time, without causing excess

or lack of passenger which affects the safety and timeliness of the flight

Classification according to service nature

Based on the nature of the service, Christopher H Lovelock (1983) classified the services into two types: tangible services and intangible services corresponding

to people and object

Table 1.1: Table of classification according to service nature

- Service for oversized and special baggages

(Source: the author synthesized)

Classification according to consumption structure

According to the consumption structure, the ground service of the airline at the airport is divided into two groups: basic services and additional services

Basic services are the main services that the airline provides to its customers

to satisfy basic, indispensable needs of customers such as check-in services, airport services, and boarding services

Additional services are services provided to customers to satisfy mandatory needs but must be available in the service business such as excess baggage service, seat upgrade service at the airport, through check-in service, destination language support service, web check-in service, kiosk check-in, transfer support service, unaccompanied minor suppoty service

non-1.2 Ground service quality of an airline at the airport

1.2.1 Definition of ground service quality of an airline at the airport

Service quality is also a concept that is interesting to researchers The definition and measurement of service quality is relatively difficult and there is no consensus on both Since the early 1980s, researchers have focused on the research

and definition of service quality

Gronroos (1984) gives two components of service quality: (1) technical quality and (2) functional quality Functional quality or production process quality implies how the process of service takes place Technical quality includes tangible aspects of the service and it is often considered unimportant and often overlooked Functional quality is also called human quality and is often considered the most important factor in service quality management

Lewis and Booms spoke that service quality is the difference between customers' expectations and feelings about services If the expectation is greater than the efficiency

of the service, the customer will not be satisfied with the quality and therefore they will not be satisfied with the service Quality of service is an emotional concept and is often associated with “feeling” and “customer satisfaction”

Parasuraman & ctg's research (1988,1991) defines service quality as the degree of difference between consumer expectations of services and their perceptions of service outcomes Thus, in the ground service of the airline at the airport, in order to know passengers' assessment of service quality, it is important to understand the customer psychology, expectations of customers when using ground services of airlines at airports

According to ISO-9000: “Service quality is an appropriate level of service

product that satisfies the specified or predetermined requirements of the buyer The quality of service is customer satisfaction determined by the comparison between the perception and expectations of the service after and before the consumer of that service Quality is the level of an inherent set of characteristics that meet requirements The main requirement is the demand or expectation that has been announced, generally understood or required Customer satisfaction is the

The quality of ground services of airlines at airports is the level of

satisfaction of passengers during the process of perceiving the ground services of the airline at airports That is the overall service of the individual, company providing airline ground services at the airport which brings the most benefits and

satisfaction to the passengers’ expectation value

The quality of ground services of airlines at the airport is the satisfaction of

passengers who use ground services at the airport This satisfaction is reflected in the passengers' evaluation of the knowledge, skills and working attitudes of service personnel through the process of providing services to passengers The successful construction of the ground service quality of the airline at the airport means meeting the expectations and satisfaction of passengers in the process of providing services

Service quality management is a concept that all business managers must consider if they do not want to reduce the competitiveness of their businesses The goal of service quality management is to continuously improve service quality within the allowable cost limits In order to well manage the ground services of airlines at airports, managers must carefully study the components of the service as well as the service delivery process On the basis of studying the needs of customers, the airline must build service standards with detailed services and related service process, deploy, control and evaluate the service quality

1.2.2 Some models of service quality assessment

In the context of increasingly fierce competition, an enterprise can only exist when it provides services that bring satisfaction to customers and is accepted by customers The quality of tangible products can be measured through clear specific provisions on standards such as shape, color, material, etc., the quality of service is more abstract because of its pro characteristics such as inseparability, invisibility, heterogeneity and inability to store The evaluation of basic product quality using experimental and expert methods, is very standardized, complete and has many evaluation methods such as ISO 9001 and ISO 22000 regulations Assessment of basic service quality using sensory and expert methods, has not been standardized

in detail and incomplete The comprehensive assessment of customer satisfaction with service quality is extremely difficult, requiring based on scientific models, consistent with reality Along with the concept of service, service quality,

assessment of service quality is also an issue that attracts much attention from researchers

Until now, there are many methods of evaluating service quality Within the scope

of this research, the author would like to introduce three models of service quality assessment: 1) Technical quality / functional quality model (Grönroos, 1984); 2) SERVQUAL Model (Parasuraman, 1988) and 3) SERVPERF Model (Cronin and Taylor, 1992)

Technical and functional quality model (Gronroos, 1984)

The model of technical and functional quality was given by Gronross in 1984 In this model, service quality is assessed by comparing the value that customers expect before using the service and value that customers receive when using the service

To measure service quality, Gronross considers three criteria: 1) functional quality (FSQ: Functional Service Quality), 2) technical quality (TSQ: Technical Service Quality) and (3) corporate image

Technical Quality (Technical Service Quality) reflects customer perception of the

output of the service delivery process It describes what the service is provided and the values that the customer actually receives from the service that the service provider provides

Functional Quality (Functional Service Quality) describes how the service is

provided and is constituted by 5 attributes: reliability, assurance, configuration factors, empathy, level of meeting the needs

Image of the service provider: The image of the corporate acts as a filter in the

process of perceiving service quality, making the relationship between customers and businesses better and more sustainable Consumers can feel the quality of service that the provider offers is high or low based on previous experiences and all their feelings to evaluate the quality of service from a certain supplier

The goal of research on service quality model is to find the attributes that constitute the quality of functional and technical quality, the image of the corporate to the perception of the quality of customer service, and then leads to customer satisfaction

SERVQUAL Model (Parasuraman, 1988)

Parasuraman is one of the pioneers in researching service quality The model name SERVQUAL is paired from Service and Quality The author thinks that the quality

of service is the distance between the expectations of customers and their perceptions (feelings) when using the service and quality perception of customers is the most objective assessment of service quality Parasuraman has modeled the gap

in service quality as a basis for standardizing services and evaluating service quality, specifically as follows:

Distance 1: the distance between the perception of the company about the

expectation of the customer with the expected service of the customer

Distance 2: the distance between the company's perception of customer

expectations with service quality criteria

Distance 3: the distance between service standards and actual services

provided to customers

Distance 4: the distance between the quality of services actually provided

with the quality of service standards that informs customers

Distance 5: the distance between the service the customer receives and the

customer's expectation of the service

 Components of service quality

To measure service quality, Parasuraman used SERVQUAL SERVQUAL measures the quality of service based on the perception of customers using the service Parasuraman & ctg (1985) said that any service, quality of service perceived by customers is formed through 10 components of service quality, which

are: 1) trust 2) response 3) service capacity 4) approach 5) courtesy 6) information

7) trust 8) safety 9) customer understanding 10) tangible means

In 1988, the authors adjusted once again SERVQUAL scale and set the scale of

service quality through 5 groups of evaluation criteria named: 1) Reliability 2)

Responsiveness 3) Service Capacity 4) Empathy 5) Tangible means

 Reliability: is the ability to ensure the service as committed in a sure

and accurate way

 Responsiveness: expresse through employees' willingness to help customers and ensure services are provided quickly, responsiveness reflect the level of fulfillment of a business's promise of service, will

and self-service of employees

 Service capacity: The capacity of the business, the politeness to customers, the knowledge and behavior of employees as well as their ability to create trust for customers

 Empathy: The level of care of the company to individual customers, placing themselves in the position of customers

 Tangible means: Service is an invisible factor Therefore, in a certain extent, customers will evaluate service judgment based on tangible

factors such as working conditions, equipment, information facilities

Scale set of SERVQUAL consists of 2 parts, each part has 5 criteria with 22 statements The first part defines customer expectations for the kind of service of the enterprise in general The second part identifies the customer's perception of the service implementation of the surveying enterprise The results of the study are to determine the distance between customer perception of service quality performed by the enterprise and customer expectations for the quality of that service Specifically, according to SERVQUAL model, service quality is determined as follows:

Service quality = Perceptibility - Expected value

SERVPERF Model (Cronin and Taylor, 1992)

SERVPERF model was developed by Cronin and partner, based on SERVQUAL model of Parasuraman and partner in 1988 This is a widely used and reliable service quality measuring instrument This scale ignores the assessment of customer expectations and only evaluates customer perceptions Customer's perception can be easily measured based on customers' beliefs about the type of service they have used Cronin and Taylor (1992) with SERVPERF suggest that the level of customer perception

of the actual service provided by the business best reflects the quality of service

According to SERVPERF Model: Quality of service = Perception level

Since originating from SERVQUAL, components and evaluation criteria of SERVPERF scale also include 5 components like components of SERVQUAL,

which are: 1) Reliability 2) Responsiveness 3) Service Capacity 4) Empathy 5)

the author found SERVPERF with 5 components 1) Reliability 2) Responsiveness

3) Service Capacity 4) Empathy 5) Tangible means are in accordance with the

reality and peculiarities of the ground services of airlines at airports Furthermore, this model goes into the analysis based on 2 main factors: Level of customer perception and Quality of service, which is very consistent with the research objectives of the topic Therefore, the author decided to select SERVPERF as the basis for standardizing and evaluating the quality of ground services of the airlines

at the airport

The purpose of the model selection: developing methods to perform assessment of

the ground service quality of airlines at airports, thereby confirming the quality of services, processes or service delivery systems of the ground service of the airline at

the airport satisfies customer requirements according to the prescribed standards

The meaning of the model selection: helping the airline capture customer demand

for ground services at the airport, through customer perception of service quality to improve quality, maintain operations and increase profits for the airline

1.2.4 Criteria for evaluating the quality of ground services of airlines at airports according to model SERVPERF

Ground services of airlines at airports include: check-in service, business-class lounge service, arrival service, transfer service, boarding service Based on SERVPERF scale and opinions of author‟s company leaders, the author builds and collects the information in the questionnaire according to Likert scale with 1-5 satisfaction level, in which:

Table 1.2: Criteria to evaluate the reliability of VNA's ground services at

1.1.1 VNA's check-in service at Noibai airport complies with all commitments with passengers

1.1.2 Fast queue-up time 1.1.3 Fast check-in time 1.1.4 Provide sufficient information about seats, boarding gate

Criteria group Specific criteria

and show-up time at boarding gate 1.1.5 Provide sufficient information about lounge 1.1.6 Provide sufficient information about inbound, outbound flights 1.1.7 Provide good priority lane service in the security area for C- VIP- Sky Priority passengers

1.2 Business class lounge service

1.2.1 Business lounge services of VNA at Noibai airport strictly follow all commitments with customers

1.2.2 Information about lounge facilities is fully provided to passengers

1.2.3 Information on the time to be on board is timely provided

to passengers

1.3 Arrival service

1.3.1 VNA arrival service at Noibai airport is provided to passengers as committed

1.3.2 On time aircraft opening 1.3.3 Luggage delivery time as committed 1.3.4 Luggage delivery order as committed 1.3.5 In case of irregular luggage, passengers receive quick instructions from employees

1.4 Transfer service

1.4.1 VNA's transfer service at Noibai airport is provided to passengers as committed

1.4.2 Transfer time as committed 1.4.3 Transfer luggage handling as committed

1.5 Boardin

1.5.5 Boarding time as committed 1.5.6 Boarding passenger on the right flight

(Source: Author synthesized) Responsiveness

The Responsiveness of the VNA's ground services at Noibai airport is

reflected in the attitude of the service staffs to help passengers and ensure the services are provided as quickly as possible This factor is measured by the following 13 criteria:

Table 1.3: Criteria for evaluating the Responsiveness of VNA's ground services

at Noibai airport

Criteria group Specific criteria

Response

2 Readiness of VNA ground service staffs at Noibai airport,

ensuring service delivery to passengers quickly

2.2.3 Timely provide irregular flight information to passengers

2.3

Arrival

service

2.3.1 Always have staff present at the door of the aircraft

2.3.2 Staffs are ready to meet the requirements of passengers

2.4.2 Staffs instruct passengers on connecting procedures in

a thoughtful and dedicated way

passengers, through polite communication with passengers, knowledge, experience and professional behavior, staff's ability to transmit trust and confidence for passengers

To evaluate passengers' feelings about the service capacity of VNA ground staffs at Noibai airport, the author conducted a survey with 16 questions:

Table 1.4 Criteria to evaluate VNA's ground service capacity in Noibai

(Source: Author synthesized)

Empathy

Empathy shows the ability to personalize the services that VNA provides to

Criteria group Specific criteria

Service

capacity

3 Knowledge and behavior of ground service staffs of VNA in

Noibai to create for passengers a sense of trust 3.1

3.2.2 Lounge staffs are polite, friendly

3.2.3 Language proficiency of lounge staffs 3.3

passengers, expressed through the following 12 criteria:

Table 1.5: Criteria for evaluating the empathy of ground services of VNA in

(Source: Author synthesized)

Tangible means

Tangible means are material facilities, equipment, people, materials used by

VNA in the process of providing ground services at Noibai airport Specifically, tangible elements are evaluated through the following 25 criteria:

Table 1.6: Criteria for evaluating the tangible means of ground services of

VNA in Noibai

Criteria group Specific criteria

Tangible

means

5 The material facilities, equipment related to ground services of VNA

in Noibai bring satisfaction to customers when using the service

5.1.3 Decoration items in the economy class check-in area 5.1.4 Decoration items in the business class check-in area 5.1.5 Kiosk check-in counters are in a good operating condition 5.1.6 The division between the check-in areas is clear

5.1.7 The signpost system is clear and easy to understand

5.2.5 VNA image in the lounge 5.2.6 Variety and layout of food and drinks in the lounge 5.2.7 Quality of food and drinks in the lounge

5.2.8 Announcement system 5.2.9 The system manages and identifies the passengers using the lounge 5.3

Arrival

service

5.3.1 The equipment for customers at the ramp is in good working condition, ensuring service quality (forklifts, ladder cars, passenger cars in the ramp area, wheelchairs )

5.3.2 Clear signpost system 5.4

Transfer

service

5.4.1 Clear signpost system 5.4.2 Transfer counters are easily identified 5.4.3 Decoration items at the transfer counter area 5.5

Boardin

g service

5.5.1 Decoration items at the boarding area 5.5.2 Announcement system at boarding area 5.5.3 The equipment in the ramp (forklift, ladder, fire truck, wheelchair, )

(Source: Author synthesized)

1.2.5 Factors affecting the quality of ground services of airlines at airports

Quality of service is created in the whole process of providing service of

enterprises, starting from the design of services to the stages of organization, deployment, supply and use Due to the complex nature of the airline's ground service concept, the creation and improvement of this service quality is influenced

by many factors including subjective factors comes from inside as well as the environment outside the airline (objective factors) These factors have a close, interrelated relationship and general impact on the quality of ground services of airlines at airports

Subjective factors

Subjective factors include: 1) Management capacity of the airline, 2) Human

resource, 3) Coordination mechanism between relevant departments in the service delivery process 4) Infrastructure

1) Management capacity of the airline

The leadership's commitment to service quality is that the leaders of the airline must support and participate in implementing the company's ground service quality management system at the airport, especially the general leadership of the company must commit to providing enough resources to perform The commitment of leaders has an important role to play, it creates a favorable environment for quality activities in the organization, expressing their concerns and responsibilities for quality activities, thereby engaging the participation of members in the organization

in the quality program The company leader is responsible for setting policies for the quality of its ground services at the airport to satisfy customers Successful implementation of that policy depends on the leadership's commitment to effectively implementing and operating the quality system Customer satisfaction can only be guaranteed when there is an interaction between leadership responsibilities and human resources, material resources and the structure of the quality system

2) Human resource

The aviation industry is a typical industry in the application and exploitation of the advances of modern science and technology in production and business activities But it is human who use and operate them Human factors affect all stages in the

production process The service quality of the airline depends very much on the professional qualifications and skills of the staff Therefore, in order to improve the quality of services in general and ground services at airports in particular, airlines need not pay attention to improving the qualifications of employees

The service staff is the one who directly creates the airline's impression Passengers know the quality of products and services of the airline through the introduction and service style of service staffs Passengers evaluate service quality not only on product quality but also on attitudes of service staffs The attentive, dedicated and thoughtful service attitude is the foundation of the service quality of the airline

3) Coordination mechanism between relevant departments in the service delivery process

In order to have a complete ground service of the airline at the airport, there must be the participation and close coordination of many functional units of the airline (catering company, airline representative, ground service company, aircraft engineering and maintenance companies, flight crews, etc.) as well as related units operating at airports (airport authorities, security centers, custom department, border police, medical center, quarantine, etc.) For each related service segment, airline representatives work with relevant units (including the internal units of the airline and the outside units) to build and unify the coordination process to perform tasks, clearly define the responsibilities of each department and appropriate coordination mechanisms, ensure the provision of services according to the standards committed

to customers, quickly and promptly solve problems often arise

4) Infrastructure

In addition to the quality of human resources, management capacity of the airline, the coordination mechanism among related ground service units in the process of service provision, facilities are also one of the basic elements that make tangible conditions help airlines achieve the best performance results, bring the highest efficiency Facilities include: work office, related equipment such as computers, printers, scanners, rooms for employees

Objective factors

It is understood that the causes arising from the factors beyond the control of the airline such as weather, airport closing, war The objective factors often arise abnormally and suddenly Therefore, objective factors are often difficult to overcome Objective factors include:

(1) Economic environment

In the economies of nations, the civil aviation industry is one of the economic sectors that contain all the characteristics of the world economy: recession, recovery, growth, crisis and bankruptcy

When the economy of a country is in crisis, the civil aviation industry is one of the largest and fastest-impacted sectors It can be seen clearly through the financial and economic crisis of 1997-1998 The economies have been deflation, investment activities have been stalled, flights have been absent, revenue has declined at a rapid pace, forcing airlines to cut services, suspend the operation of air routes with little or no benefit profit, trying to maintain key routes through difficult times When the economies

of the countries have overcome the crisis and have signs of recovery and growth is also the time when the aviation industry has grown again The airlines were able to expand their route network, reopen flight routes which have been forced to cut, and provide additional services and enhancing existing service quality

(2) Bad weather, strikes, wars, epidemics

Bad weather forced the carrier to let the flight delay or cancel This is on the one hand to ensure safety for passengers, on the other hand to minimize damage to the airline

Strikes also make the carrier's flights delay or cancel

If a war takes place in a country where the airline has a route to, in order to ensure safety, the airline may have to cancel the flight Or in case the carrier has a flight route through the war zone, the carrier is forced to fly through another route Thus, it can make the mining cost increase, the flight is longer, or the flight cannot be carried out

The bad weather, strikes or wars, epidemics are all force majeure problems faced

by airlines and it greatly affects the quality of its ground services at the airport