Following Behn and Riley (1999), Dresdner and Xu (1995), Sim
et al. (2010) and Steven et al. (2012), we develop a simple empirical
model for studying the relationship between customer services
and satisfaction. The variable of customer complaints, COMPLit, for
the Chinese carrier i in the period t received by the CAAC is used as a
proxy for measuring the customer satisfaction for the services
offered by the Chinese airlines. Following Steven et al. (2012), we
also consider the presence of non-linear relationships between
customer satisfaction and the service q