Overall on-time performance and baggage problems account for
more than 60% of all customer complaints received. Behn and Riley
(1999) and Steven et al. (2012) included this variable in their
customer satisfaction analysis. As a result, we include the variable
of the overall on-time performance of scheduled flights, ONTIMEit,
of carrier i in quarter t in our analysis. It is measured in terms of
percentage of on-time arrivals and departures of scheduled flights.
Flights are considered as on-time when they land or depart within
15 min of the scheduled time shown in the carriers’ computerized
reservation system. According to Table 2, the overall on-time performance
of all carriers was steadily improving from 79.9% in 2004
to 83.12% in 2007.
However, from 2008 it has been decreasing. In 2009, the CAAC
separated carriers into large and small carriers when reporting
their on-time performance. Large carriers are usually state-owned
carriers such as the big three state-owned carriers, while small
carriers include all non-state controlled or private carrier