Abstract:
In today's competitive airline industry, maintaining customer loyalty is critical to long-
term success. Lion Air as one of Indonesia's largest budget airlines, faces challenges in
meeting customer expectations, especially within the millennial demographic. Increasing
customer demand, coupled with more options for air travel, makes service quality an
important factor in determining customer loyalty. The problem lies in how service quality
affects customer loyalty, especially for millennial customers in the highly competitive
Jabodetabek area. This study aims to analyse the effect of service quality on customer
loyalty at Lion Air, specifically focusing on Indonesian millennials living in the
Jabodetabek area. In the era of intense competition in the airline industry, understanding
the factors that influence customer loyalty is critical to the sustainability and growth of
airlines. This study uses quantitative research methods, using an online questionnaire
distributed to 120 respondents who have used Lion Air services. The data collection
process involved structured questions designed to measure perceptions of service quality
across multiple dimensions, including reliability, responsiveness, assurance, empathy and
physical evidence. Data analysis was conducted using Statistical Package for Social
Science (SPSS) software, using multiple linear regression analysis to test the relationship
between service quality and customer loyalty. The results showed that service quality has
a positive and significant impact on customer loyalty, highlighting that better service can
lead to higher levels of customer satisfaction and retention. The findings suggest that Lion
Air should prioritise improving service quality to foster greater customer loyalty among
its millennial customers.
