About the authors Prof. Alok Kumar Rai (alok.fmsbhu@gmail.com ) is presently delivering his services at the Faculty of Management Studies, Banaras Hindu University, Varanasi, India. His areas of interest include marketing and customer relationship management. He has 10 books from leading publishers of the world to his credit. He has published many research papers and articles in leading national and international journals, and has made presentations in several national and international seminars and conferences. Dr. Medha Srivastava (srivastava.medha@gmail.com ) completed a PhD at the Faculty of Management Studies, Banaras Hindu University, and is presently working as Asst. Professor at United Group of Institutions, Allahabad, India. She has two books and several research publications in reputed refereed journals in the USA, Europe and Asia to her credit, and has presented papers in several international and national conferences. Asia Pacific Journal of Business and Management, 2014, Volume 5(1), 44-59 ISSN 1179-626X © A.K. Rai & M Srivastav CUSTOMER LOYALTY IN THE INDIAN AVIATION INDUSTRY: AN EMPIRICAL EXAMINATION Alok Kumar Rai and Medha Srivastav _____________________________________________________________ ABSTRACT The aviation industry in India is passing through a rough phase with its major airlines wedged with various regulatory and financial issues. In the times of such turbulence, retaining passengers as loyal patrons of the company can bring dramatic improvement in an airline’s competitive position. Thus, the present paper endeavours to explore the concept of customer loyalty and examine its relevance for the aviation industry. It subsequently carries out an empirical examination of customer loyalty and offers a new perspective to the existing loyalty practices in the Indian aviation industry. Keywords: Customer loyalty, aviation, advocacy, repurchase, customer defection. INTRODUCTION With the increased commoditization of brands and markets getting more competitive, it has become imperative for an organisation to deliver services that continue to meet customer needs and values, without failing to fulfil their own brand promise. As the economic climate is becoming increasingly uncertain, companies are finding it hard to trust and predict the buying behaviours of the customers. In order to create as well as expand fruitful customer relationships and to stay competitive without compromising on profits, companies need to focus on its customers with greater sincerity. Keeping the customers has become a challenge due to intense competition and increased customer expectations. Recent economic upheaval has made its impact on customer relationships, and the bonds of customer loyalty have been threatened as well. Loyalty demands a firm basis of trust, and as customer confidence fades trust also declines making it difficult to foster loyalty. The airlines also have noticed the changing loyalty equations and are trying to balance it by offering discounted fares and introducing customer loyalty programmes to retain their