Examining the influence of departure levy on air travel intentions: an empirical study in Malaysia

Abstract

The introduction of departure levy in the airline industry is becoming a common practice globally, intending to generate revenue and address environmental concerns. However, the impact of these levy on passengers' behaviour remains a topic of debate. To better understand the factors influencing Malaysian airline passengers' behaviour in response to departure levy, the Theory of Planned Behaviour (TPB) was employed in a survey of 412 respondents. The research employed multiple regression analysis to examine the relationships of variables. The survey revealed some insightful findings. Firstly, positive attitudes towards departure levy were found to be strongly correlated with their propensity to use airline services. Secondly, passengers perceived behavioural control strongly influenced their behaviour. Thirdly, the passenger’s perception of departure levy was found to be a key factor in determining the likelihood of using airline services. These findings provide valuable insights into the impact of taxation measures on passenger behaviour and can inform evidence-based airline economic development policies. Understanding passengers' attitudes towards departure levy helps policymakers and stakeholders identify potential revenue streams, boosting airline economic viability, especially during industry disruptions. Insights into levy perceptions impact ticket pricing strategies, helping airlines optimize revenue while staying competitive. Policymakers can use behavioural insights to design sustainable aviation policies, promoting air travel while addressing environmental concerns.