Accompanying with the huge potential growth, the aviation market of Vietnam is becoming more severe because of the harsh competition between domestic airlines and the rivalry of foreign rivals. It is necessary for low-fare carriers to enhance their competitive ability. However, the specific researches about this subject are still limited or unpublished. This study conducted an empirical investigation to identify which factors have effects on customer satisfaction, service quality and customer loyalty within Vietnam low-fare airlines. The conceptual framework is provided in which customer expectation, perceived value, reliability and subjective norms are tested if they have positively impacts on customer satisfaction. Similarity, four variables including assurance, responsiveness, tangible and empathy are considered as predictors of service quality. Subsequently, the interrelationship between service quality, customer satisfaction and customer loyalty is examined. The data of this research is collected by questionnaires from those who had flying experience with Vietnam low-fare airlines in the past. Descriptive analysis, factor analysis, reliability test and multiple regression analysis are adopted to test the objective research hypotheses. The results showed that customer satisfaction leads to customer loyalty, the offering service quality also helps to upgrade customer loyalty. Besides, four suggested variables (except customer expectation) and service quality have positively impact on customer satisfaction. Service quality is able to be improved through responsiveness and empathy - two variables have positively influence on it.
