AVIATION INDUSTRY SCENARIO IN INDIA• The Indian aviation is one of the fastest growing aviation industry in the world• With the liberalization of the indian aviation sector, aviation industry in india has undergone a rapid transformation• Private airline accounts for almost 75% share of the domestic aviation market• India has 454 airports of these 16 are designated international airports
PLAYERS IN THE INDIAN MARKETPLAYERS IN THE INDIAN MARKET• Airlines at International Routes• AIR INDIA• KINGFISHER• JET AIRWAYS• INDIAN AIRLINES
Airlines at Domestic Routes• INDIGO• GO AIR• SPICE JET• AIR DECCAN
INDIAN MARKET SHARE Sales 8% 5% 8% 30% JET AIRWAYS KINGFISHER AIRLINES20% AIR INDIA+INDIAN INDIGO 29% SPICEJET OTHERS
FORMATION OF JET AIRWAYS• Mr.Naresh Goyal founded Jetair (ltd) in May 1974• In 1991 Diversification Programme• Commenced commercial operations in May
MISSION• Jet Airways will be the most preferred domestic airline in India.• Jet Airways will achieve this pre-eminent position by offering a high quality of service and reliable, comfortable and efficient operations.
CODE OF CONDUCT• Confidential information• Fair dealing• Compliance with laws and regulations• Prevention of insider trading• Encouraging reporting of unethical or illegal behavior• Record keeping
JET AIRWAYS PARTNERSHIPS• Air Canada• American Airways• Brussels Airways• All Nippon Airways• Jetlite• QANTAS
• Car rental partners• Co-Brand card• Conversion• Hotel partners
SERVICES• Check In Options :• Airport Check in Tele Check in Web Check in Kiosks Check in• • Airport Lounges • Bus Services •Cuisi nes •Entert ainment
SPECIAL SERVICES• Infant and Child Care• Wheel Chair Assistance• Unaccompanied Minors• Medical Emergencies• Traveling with Animals• Jet Mobile
TQM TECHNIQUES• Jet Airways formulated a Quality ManagementSystem for In-flight Services in February 2001 as partof a comprehensive exercise to implement ISO inselective operational areas.• They also implement KAIZEN techniques to improvethe services of their employees through continuous training programs.
SERVQUAL MODEL• Is a model to assess the gap of an organizations service quality performance against customer quality needs.• Introduced by Zeithaml, Parasuraman and Berry in 1985.• It is widely used within service industries to understand the perception of target customers regarding their service needs
• SERVQUAL was originally measured on 10 aspects of service quality : reliability, responsiveness, competence, access, courtesy, communication, credibi lity, security, understanding the customer and tangibles
Servqual Data - What can we do• We can use data on customer priorities to feed into the House of Quality (QFD)• Quality function deployment (QFD) is a “method to transform user demands into design quality, to deploy the functions forming quality, and to deploy methods for achieving the design quality into subsystems and component parts, and ultimately to specific elements of the manufacturing process.
DIMENSIONS OF SERVQUAL MODEL• Reliability: Ability to perform the promised service dependably and accurately.•Assurance:Knowledge and courtesy of employees and their ability to inspire trust and confidence.•Tangibles:Appearance of physical facilities, equipment, personnel and communication materials.•Empathy:Caring, individualized attention the firm provides to its customers.•Responsiveness:Willingness to help customers and provide prompt service
An empirical study was conducted in 2007on the Indian airline industry (FSC) using ServQual model JET AIRWAYS KINGFISHER INDIAN AIRLINES AIRLINES+AIR INDIARELIABILITY 1 2 3ASSURANCE 1 2 3TANGIBLES 2 1 3EMPATHY 1 2 3RESPONSIVENESS 1 2 3
AREAS OF QUALITY MANAGEMENT 1 On time 2 Delay information 3 Announce delay 4 Good in-flight service 5 Good in-flight food 6 Waiting time for baggage 7 Baggage lossOn time 8 Delay information 9 Announce delay10 Good in-flight service11 Good in-flight food12 Waiting time for baggage13 Baggage loss
14 Compensate baggage loss15 Good ground service16 Refreshments on delay17 Accommodation on delay18 Online booking19 Discounted fare20 Real benefits for frequent fliers21 Maintenance of Aircraft & other Equipments
YIELD MANAGEMENT OR REVENUE MANAGEMENTProcess of understanding, anticipating andinfluencing consumer behavior in order tomaximize yield or profitsfrom afixed, perishable resource (such as airlineseats or hotel room reservations).
• Yield Management involves strategic control of inventory to sell it to the right customer at the right time for the right price. This process can result in price discrimination, where a firm charges customers consuming otherwise identical goods or services a different price for doing so
EXAMPLE• In the passenger airline case, capacity is regarded fixed because changing what aircraft flies a certain service based on the demand is the exception rather than the rule. When the aircraft departs, the unsold seats cannot generate any revenue and thus can be said to have perished. Airlines use special software to monitor how seats are being reserved and react accordingly, for example by offering discounts when it appears that seats will remain unsold & vice versa
QUALITY CERTIFICATION• In flight Services, ISO 9001 : 2000 certified Certification for the product and service ranges includes Design, Development and Delivery of Customer Services that meet world-class standards• IATA Operational Safety Audit (IOSA) Registration
COST CONTROL MEASURES• Jet Airways and Kingfisher Airlines, have put aside their differences and joined hands to cut costs through code-sharing and combining ticketing and ground services.• The airline leased two of its Boeing 737s to a Japanese company, and implemented a number of workforce productivity measures.• Salary cut of employees
AWARDS• ‘airline with best first-class service in the world’ award at Business Traveler’s 20th annual ‘best in business travel’ awards gala in the USA• ‘best domestic full service airline’ award for the sixth year in a row• “Most innovative product launch” award
Customer Response through Surveys (word of mouth)Positive Aspects :• Jet travelers found its flights to be on time.• Jet usually informed their customers about delay in advance through SMS or telephone call.• In the case of a delay Jet usually provides travelers with refreshments• Jet was found to be providing good in-flight food & entertainment• Baggage loss was found to be almost never a problem with Jet Airways• Staff friendly and helpful
Negative Aspects:• The main problem with Jet however is their staff. Although they are polite and try to be helpful, they seem to be untrained and get overwhelmed easily.•Sometime there is a delay for baggage•Their catering is poor in variety and quantity