Brexit Impact on Wizzair's Service Quality: A Case Study

Desklib offers solved assignments and past papers to help students succeed.

Research Proposal
Topic: “Impact of Brexit on quality of services of an organisation-A case study on Wizzair”
1

Table of Contents
1.0 Introduction................................................................................................................................4
1.1 Background of the research...................................................................................................4
1.2 Organisational background....................................................................................................4
1.3 Rationale of the study............................................................................................................4
1.4 Research aim and objectives..................................................................................................5
1.5 Scope and limitations of the study.........................................................................................5
2.0 Literature review........................................................................................................................7
2.1 Theme 1.................................................................................................................................7
2.2 Theme 2.................................................................................................................................8
2.3 Theme 3.................................................................................................................................9
2.4 Literature gap.......................................................................................................................10
3.0 Methodology............................................................................................................................11
3.1 Research philosophy............................................................................................................11
3.2 Research approach...............................................................................................................11
3.3 Research design...................................................................................................................11
3.4 Data collection.....................................................................................................................11
3.5 Data analysis........................................................................................................................11
3.6 Sampling technique and size...............................................................................................12
3.7 Ethical consideration...........................................................................................................12
3.8 Time frame...........................................................................................................................12
Reference List................................................................................................................................14
Appendix........................................................................................................................................16
2

3

1.0 Introduction
1.1 Background of the research
The exit of UK from the European Union would affect the operations of the aviation industry
that spans across the European region including the UK market. It has been observed that
organisations operating in the European market have acquired the aviation market shares in the
UK market as well due to the need of conducting business on a global scale. The aspects of
globalisation have affected the business decisions framed by the organisations in the aviation
industry (Burrell and Badcock, 2017). Considering the business network that the aviation
industry has developed in the UK and European market segment, the Brexit decision would
influence their performance in multiple ways.
1.2 Organisational background
Wizzair, a leading low-cost airline operator operating from Budapest, Hungary, was established
in 2003. The airline carrier provides flight services to more than 44 countries and 33.8 million
consumers across the European and UK market (Wizzair.com, 2019). The company garners net
revenue of €1948 million through their transactional activities. As per the financial report of the
company, a net income of €276 million was recorded by the management despite the growing
disruption of the economic condition in the EU (Investegate.co.uk, 2019). Considering the
aviation market scenario that Wizzair experiences in performing their business transactions, it
can be stated that Brexit would affect the quality of services of the organisation in various ways.
1.3 Rationale of the study
The UK’s departure from European Union would majorly affect the businesses in the aviation
industry since the profitability of the organisations in the sector largely is based on the legislative
regulations within the market scenario (Iata.org, 2019).
4

Figure 1: Travel trends among customers
(Source: Goldman and Shulte-Strathaus, 2017)
As per the market demands of the aviation industry, it can be observed that the fluctuating
economy and financial situation of the European market would influence the purchasing
decisions of the customers. This would affect the profitability of the flight operators. The issue of
free trade and international travel for consumers would be affected through the Brexit
referendum (Walulik, 2018). Thus, it is essential to identify the ways Brexit could affect the
quality of services provided by airline operators in the aviation industry.
1.4 Research aim and objectives
This study aims to identify the impact Brexit would have on the service quality for Wizzair.
By completion of the study, the researcher would require to fulfil the following objectives:
 To identify the impact of Brexit on the operational functions of the company
 To observe the ways Brexit would influence the services of the organisation
 To evaluate the risks that Wizzair may experience due to Brexit
 To suggest recommendations that would reduce the hindering factors of Brexit that
affects Wizzair
1.5 Scope and limitations of the study
The data collection method derived for the study would provide relevant information regarding
the ways Brexit would affect the service quality of the organisations in the aviation industry. The
study would also examine the ways Brexit referendum could influence the operational functions
5

of organisations. Potential risks that could influence the profitability of organisations in the
aviation industry would be observed in the study.
The major limitations that could affect the findings of the study is the lack of information from
literature review and noncooperation of the staffs associated with the organisation in providing
relevant information about the issues that the company may experience due to Brexit. Repetitive,
irrelevant and backdated information acquired from academic sources could influence the
findings of the study as well.
6

2.0 Literature review
Introduction
A critical review of current academic sources would provide a detailed overview of the aspects
of Brexit and the ways the referendum could affect the business operations and services of
aviation industry operators. Reviewing relevant literary sources would allow the researcher to
develop the study efficiently and increase the authenticity of the study.
2.1 Theme 1
Brexit impact on operational functions of aviation organisations
The aviation industry operators provide services to the population based on the demand and
travel trends associated with the market scenario. The available travel and trade regulations
would change as per the referendum between the UK and EU countries. As per the opinion
derived by Goldman and Shulte-Strathaus (2017), the fluctuations in the economic and
legislative situations would reduce the purchasing ability of the organisations in the aviation
industry. The operational functions of the aviation operators would be affected through the
differences in business objectives the companies would have to frame in order to overcome the
turbulence a pro-Brexit market would present to the industry. As opined by Walulik (2018),
Brexit referendum would change the legal framework of the aviation industry and affect the
functional operations of aviation operators in the EU and UK markets.
The profitability of organisations functioning in the aviation industry of the European sector
would be affected by the Brexit decision as it influences the purchasing decision and travel
trends of the customers in the market scenario. As observed in the report generated by Iata.org,
(2019), the Brexit referendum would reduce the scope of earning profits for the aviation
operators. The purchasing and spending habits of the customers would be affected negatively due
to regulations in travelling abroad or outside the UK. The changing travel trends and regulative
policies would reduce the scope of the aviation operators in framing policies that would improve
the business operations of the organisations in the aviation industry.
According to the opinion framed by Dobruszkes (2019), aviation organisations would be affected
negatively through the fluctuating attributes of the market scenario. The legislative changes
7

within the aviation industry would be affected due to the Brexit referendum. This would
negatively affect the travel trends across the European market economy. The factors that affect
the travel and tourism industry would in reverse influence the operational functions of the
aviation operators.
2.2 Theme 2
Influence of Brexit on aviation services
The aviation services would be affected due to the Brexit referendum, as the industry operators
would change their operational functions in order to retain competitive advantage in the market
scenario. As opined by Rosewell (2017), the changes in policy and infrastructure within the
aviation industry would be modified through the changes in the pro-Brexit business environment.
The fluctuations in the business scenario enhance the opportunity of the operators in the aviation
industry to frame various services that are cost effective for the institutions and the consumers.
The ability of the consumers to acquire services from the institutional operations would be based
on the type of services and their pricing that the companies fix for achieving competitive
advantage in the market environment. As per the observations of Barrett (2019), it can be stated
that the changes in service type and quality would be observed for aviation industry. The pricing
strategies adopted by various airline industry operators would affect the quality of services
provided by the institutions in the competitive market environment.
Figure 2: Travel trend among travellers
(Source: Burrell and Badcock, 2017)
8

The Brexit referendum would influence the purchasing and travelling trends of the tourists and
consumers in the aviation industry. This provides the organisations in the industry to create
variations in their service providence. According to Kreindler et al. (2016), the gradual growth of
travellers by flights in the EU would be modified due to the changing aspects of travel
regulations through the Brexit referendum. Operators in the aviation industry need to modify
their services as per the demands of the consumer and the market scenario. The economic crisis
associated with Brexit could reduce the operational cost for the airline industry and the
companies would have to develop varied flight paths and modify their flight routes in order to
gain competitive advantage in the market scenario.
2.3 Theme 3
Risks associated with Brexit and recommended measures
As identified in various academic sources, the risks associated with Brexit would influence the
development of business operations for aviation operators and business industries in various
ways. The risks of conducting business in the aviation industry would be evident in case of
airline operators through the incessant fluctuations in legislative and travel regulations would
reduce the scope of generating profit for aviation organisations. The aviation service providers
create business plans as per the need of the consumers and external market drivers of business.
As per the tenets of environmental theory of buyer behaviour, it can be stated that buyers’ take
decisions in regards to the environmental factors, which affect the market scenario as well (Joshi
and Rahman, 2017). The aviation industry operators would experience the risk of losing
profitability and consumers due to the Brexit referendum if the companies fail to comprehend the
risks of fluctuating exchange rate. Businesses in the aviation industry would be affected
negatively through the changing travel legislations that the Brexit referendum would present.
As per the opinion framed by Moschieri and Blake (2019), the risks of changing travel trends
would influence their profitability and business operations through the referendum. The
organisations in the aviation industry would be influenced due to the risks of growing consumer
demands. Creating different flight paths could result in procurement of aviation fuels that is
expensive. Developing flight routes that are economic as well as sustainable for the environment
is a major risk for the aviation operators in order to function in the aviation sector. According to
the findings identified by Puscinska (2018), aviation operators would be able to generate profit
9

by functioning in the industry through certain of better flight paths and reducing the overall
baggage weight on flights. Increasing the number of short distance flights and utilising biofuel
effectively would provide the organisations to function efficiently in the market scenario.
2.4 Literature gap
Despite the information gathered from various academic sources, it is observed that there is a
lack of information suggesting the ways a hard Brexit could directly affect the quality of services
in the business scenario of aviation industry. The availability of repetitive information from the
academic sources affected the fluidity of the study. Considering the lack of information available
regarding the ways Brexit could influence the quality of services that aviation industry provides
to the consumers, the fulfilment of the objectives designed by the researcher would be affected
through the course of the study.
10

3.0 Methodology
3.1 Research philosophy
The choice of philosophy for conducting a research would provide the researcher with the
opportunity to identify the type of data collection and analysis method that would ensure the
objectives of the study is achieved efficiently (Saunders et al., 2012). Since this study would
utilise the tenets of primary data, it would be effective for the researcher to implement the
positivism philosophy in achieving the objectives.
3.2 Research approach
The decision to choose a research approach allows the researcher to develop the course of the
study that would enhance the progress of the study. An effective research approach ensures the
data is analysed using an existing theory or create a new theoretical framework. This study
would be developed based on the existing framework of environmental theory of consumer
behaviour; hence, the implementation of deductive approach for fulfilling the objectives of the
study is justified.
3.3 Research design
The need for framing an effective research design enables the researcher to fulfil the objectives
of the study through better provision of data analysis. Since this study would be conducted, using
data collected through primary methods that determine the effect of Brexit on service quality on
aviation operators, the implementation of causal explanatory research design is justified in
achieving the objectives.
3.4 Data collection
The process of data collection is essential in conducting a study as it ensures the fluent course of
the study in achieving the objectives framed by the researcher. This study would incorporate the
collection of primary data, as it would provide the researcher with better opportunity in fulfilling
the objectives of the study. The study will collect primary data through survey and interview.
Primary data would be collected for the study through quantitative and qualitative procedures.
11

3.5 Data analysis
The process of analysing the collected data enables the researcher to utilise the information
gathered efficiently in achieving the objectives of the study. Since this study would require
analysis of quantitative and qualitative data, the analysis method of frequency would be
implemented for quantitative information gathered through survey. The qualitative data collected
from interviews would be analysed using the constant comparison technique.
3.6 Sampling technique and size
The study would implement the probability sampling technique in selecting the sample size for
survey method of data collection. The researcher would use simple random method for choosing
the staffs of Wizzair from the employee list of the company. The implementation of purposive
sampling method of non-probability sampling technique would enable the researcher to identify
the managers for collecting qualitative data through interviews.
The sample size for survey would be 20 employees and interview would be conducted on two
managers from Wizzair.
3.7 Ethical consideration
The research would be conducted in an ethical manner by adhering to the tenets of GDPR of
2018. The participants would be provided with the scope of leaving the survey at any time they
prefer. Interviewees would have the opportunity to retract from the session. Every participant in
the research’s data collection method would have the choice of not responding to the questions.
Data collected would be utilised for educational purposes only and the respondents were not
coerced in any way to gain information.
3.8 Time frame
Activity log
Activities Start date Duration End date
Developing the topic of the research 11/5/19 3 14/5/19
Framing aim and objectives of the study 14/5/19 5 19/5/19
Conducting literature review 19/5/19 15 3/6/19
Observing the methodology of the study 3/6/19 4 7/6/19
Creating the questionnaire of primary data collection 7/6/19 6 13/6/19
12