Application of Conjoint Analysis in Establishing Aviation Fuel Attributes for Air Travel Industries

摘要

With oil being a non-renewable energy source, buyers of aviation fuel are more inclined to purchase Jet-A1 from oil companies that offer the best jet fuel. But the fact of the matter is that, aviation fuel has the same content even when you purchase it from halfway across the world. Although price is an apparent factor that airlines consider when deciding which oil company to choose for as a supplier, there are ambiguous factors that need to be established so that continuous product development can be made by aviation fuel organizations. This study used conjoint analysis as a tool to establish the attributes considered by airlines in deciding which oil company will best meet their needs. As a result, the following six attributes of aviation fuel were identified: availability, price, accessibility, manpower, equipment and facilities, and fuel quality and safety. The results indicate that fuel quality has the greatest influence on the respondents' purchasing intentions, followed by price, availability, equipment and facilities, and accessibility. Manpower was the least important attribute with regard to the airlines' buying intention. Based on the results from data analysis, it is concluded that conjoint analysis is an appropriate tool to identify the key attributes of aviation fuel. Using the results presented in this study, aviation fuel companies can better tailor their fuel services to meet the needs of airlines and thus increase sales.