Fuzzy QFD for LCC Strategic Decisions in Thailand: A Case Study of Nok Air and COVID-19 Recovery

Abstract

This study focuses on the impact of the Covid-19 crisis on low-cost carriers (LCCs), particularly in comparison to full-service airlines (FSAs). With a target segment of price-sensitive leisure travelers, LCCs have been significantly affected. The objective of this paper is to analyze customer requirements for Thai LCCs during the Covid-19 recovery period and identify strategic improvement decisions accordingly. Nok Air, a well-established LCC in Thailand, is used as a case study. The proposed fuzzy QFD approach is employed to prioritize customer requirements, suggest strategic decisions, and enhance operational practices for the airline’s recovery. Key findings include positioning as a premium LCC, offering premium services, increasing ancillary revenue, and improving aircraft utilization. This research is the first to apply fuzzy QFD to prioritize strategic decisions for managing LCCs during the Covid-19 recovery, aiming to enhance customer satisfaction and performance ratings set by the management team.