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Air india Document Transcript

  • 1. EXECUTIVE SUMMARY Indian Airlines is the oldest carrier in the domestic aviation industry. It has beenthe main stay for domestic air travel in India for more than 50 years. With the arrivalof other private airlines, its interests have been hurt, but it is continuing it’s quest to bethe leader in this industry. During the research, the main objectives of the study havebeen: a) To understand the perception of travellers towards Indian Airlines. b) Also to apprehend the perceptions of travel agents towards Indian Airlines. c) To know how Indian Airlines can improve its overall performance. d) The specific objectives are to improve service quality of Indian Airlines. e) To have a better marketing strategy. f) Market image of Indian Airlines as compared to its counterparts.To find out the required information primary data was collected through self-administered questionnaire for the passengers and travel agents and secondary datafrom library and the internet. A sample size of 200 was taken including 150passengers and 50 travel agents.The passengers and travel agents felt that private airlines were better in certain servicefactors. They also could identify a change in Indian Airlines, after the arrival ofprivate airlines and believed that it was overcoming it’s ‘I care less’ syndrome.For analysis of the data, statistical tools, based on the data collected were used andcomparative analysis was done. Indian Airlines is a financially strong company and ifit carefully plans it’s strategies, with more focus on passengers, it will remain themarket leader. 1
  • 2. 1. PURPOSE OF THE STUDYThe purpose of the study was to understand the perception of travelers towards IndianAirlines, to apprehend the perceptions of travel agents towards Indian Airlines, toknow how Indian Airlines can improve its overall performance in terms of itsmarketing as well as its quality of services provided and total customer satisfactionand hence with the help of the above to assess the image of Indian Airlines in themarket as compared to its counterparts viz. Jet air and Sahara Airlines.2. REASERCH OBJECTIVES OF THE STUDY a) To understand the perception of travelers towards Indian Airlines. b) Also to apprehend the perceptions of travel agents towards Indian Airlines. c) To know how Indian Airlines can improve its overall performance d) The specific objectives are to improve service quality of Indian Airlines e) To have a better marketing strategy f) Market image of Indian Airlines as compared to its counterparts3. RESEARCH METHODOLOGY OF THE STUDYResearch Design: -There are three kinds of research designs namely;• Exploratory• Descriptive• Causative 2
  • 3. In my project, a Descriptive Research was initiated because it was generally a studywhich was carried out to describe the market characteristics of various airlines and ofIndian Airlines in particular, as well as the buying behavior of travellers.Situation Analysis: - Conducting a situational analysis means analyzing the company,its market, its competition and the industry in general. The situation analysis is abackground investigation. It involves obtaining information about the company and itsbusiness environment by means of library, research.Data collection- primary and secondary data: -Data would be collected through both primary and secondary data for carrying out theresearch project.Primary Data: - Primary data relates to data which has been collected first hand andwhich has been collected for the purpose of analysis. It is undertaken, when dataneeded by the researcher does not exist, or are dated inaccurate, incomplete orunreliable, the researcher has to collect primary data. The primary data was collectedthrough questionnaires. Sources of Primary Data: - Primary data was collected through • Corporate travellers. • Professional’s • Students. 3
  • 4. Secondary DataSecondary research invariably precedes primary research. Secondary data are data thatwere collected for another purpose and already exists somewhere. Sources of Secondary Data • Travel Magazine. • Business Travel Journals. • Brochures, • Libraries • Annual Report.Sample designDoing research via sampling was important because of impossibility of finding all of apopulation, as well as other restrictive parameters like cost, time etc. Our samplingdecision should be in-coordination with the research and data objectives. The methodopted for taking samples was `Non-probability sampling’. It was a `Purposive Non-probability sampling/ Judgment Sampling’ was used. The key assumption underlinedthis type of sampling is that, with sound judgment or expertise, and an appropriatestrategy, one can carefully and consciously choose the elements to be included in thesample, so that samples can be developed that are suitable for one’s needs. Myobjective for using `Judgment Sampling’ was that since airline travel is notexperienced by everybody, so `Judgment Sampling’ was a must to get the closest andthe correct response. 4
  • 5. Sample Size: -• 150 passengers/ respondents• 50 travel agents.Method of Data Collection:-Survey/ Personal Contact Method:- In a survey, the researcher carries out opinionpolls involving customers, sales persons, dealers, traders and experts. In the survey,the main method of interviewing was by Personal Interviews, as this gave me a betterunderstanding of the needs and preferences of the passenger. Most of the data isquantitative in nature and supported by qualitative data.Instruments for data collection: -The research instruments used for this survey were structured questionnaires. Thequestionnaires were designed to find the satisfaction levels of Domestic Airlines, inparticular, Indian Airlines.Questionnaire: -A questionnaire consists of a set of questions prepared to respondents for theiranswers. Because of its flexibility, the questionnaire is by far the common instrumentused to collect primary data. Closed Ended as well as Open Ended questionnaire wereused in my market research .Drafting of a Questionnaire: -The formulation of the questionnaire, i.e., the structure and the disguise to be used inthe questionnaire depends upon the kind of information that is desired. Questionnairewas prepared over a period of 5 days by intensive brainstorming. Valuable advice 5
  • 6. regarding changes was given by my marketing teacher, Ms. Laxmi Reddy, hasresulted in the formulation of the questionnaire through which responses werecollected and analysed. A copy of the questionnaire has been attached as an annexureto the project.Since my objective was to derive out the maximum information out of the passengerswithout making the whole exercise boring and troublesome, I decided to keepmajority of the questionnaire close-ended.In order to generate and sustain the interest of the respondents, the initial questionspertained to the gathering of simple information like the frequency of travel, thechoice of airline and the purpose of travel. Since, I had to balance the twin objectivesof gathering maximum information and at the same time retaining the interest of thecustomers, I was compelled to squeeze in a lot of questions and club them up in asingle question.The question pertaining to assessing the impact of private airlines on Indian Airlines,for this the respondents ticked in the various options under different parameters. Lastbut not the least, the respondents were asked to pen down some personal informationpurely for statistical purposes, with an assurance that it would be kept confidential. 6
  • 7. LIMITATIONS• The study could have been more comprehensive and more representative of the universe, had the sample-size been larger, but it was not possible mainly due to lack of time and some other constraints.• The areas covered were restricted to Delhi city only and as such the results of questionnaires are valid for Delhi city only.• All this report has been an individual attempt and also it involves the human process of interpretation and analysis, so there are chances of human error.• The marketing research is done on the basis of certain assumptions as regards to the future of the industry, but due to environmental changes, research results may not be valid.• Despite repeated proof-reading, there is a possibility of spelling error of otherwise, which may have been overlooked. 7
  • 8. About Aviation IndustryThe first Indian State air service began to function on 20 th Dec. 1929. All technicaland operation control was left in the hands of Imperial Airways. After that TataAirways came into existence. This airline was dealing with the taking off passengersand cargo from one place to another.There were as many as eight private airlines till 1953.• Air India Limited• Air Services of India Limited.• Air Airways (India) Limited.• The Bharat Airways Limited.• The Deccan Airways Limited.• The Himalayan Aviation Limited.• The Indian National Airways Limited.• The Kalinga Airlines. They were all having their own individual scheduled services in and around India.However, the private sector of Indian aviation industry was brought to an end in June 8
  • 9. 1953 by the introduction of an act of parliament known as Air Corporation Act 1953.This brought in the nationalization of air-transport. Consequently, all the existingeight private airlines were amalgamated to form one nationalized airline calledIndian Airlines. Indian Airlines came into existence in June 1953. Today it is well-establishedbrand name with sound infrastructure and an overwhelming size. Progress of India’s Domestic Airlines.Item 1971 1981 1990-00 2001-2010Hours flown 90 93 89 107(‘000’s)Kilometers 33.4 44.4 49.7 57.6Flown( million)Passengers 2056 5650 7484 8316carried (000’s)Freight 14.1 59.8 88.0 84.5Tonnes (km)OPEN SKY POLICYThe process of liberalization of the Indian air transport industry commenced withGovernment’s declaration of open sky policy in 1990.In fact, the first step in thisdirection was taken when Air Taxi Scheme was introduced as nonscheduledoperations in 1987. The scheme did not take off because of severely restrictiveconditions. It was modified in 1990 to remove restrictions on capacity, schedules, 9
  • 10. route selection and airfares. The import duty on aircraft was also reduced to 3% tomake airlines operations cheaper. This initiative further received impetus with theliberalization of the economy, trade and industry from 1991. The entry of privatescheduled airlines in Indian domestic skies was signaled in October 1992.As a resultof these measures a number of parties started air taxi operations on trunk and highdensity routes. As Indian Airlines began losing market share and technical staff, thegovernment took a number of steps to bolster Indian Airlines.Achievements• Air Cooperation Act, 1953, repealed on March 1st, 1994, ending the state’s monopoly of the skies.• Air Taxi Operation allowed in 1994 to seek scheduled airline status if they have at least 3 aircrafts.• Vayudoot, the third public sector airline, is merged with Indian Airlines and its infrastructure offered to private airlines.• No restrictions imposed by the government, of pricing by the private airlines and air cargo operators.• Most restrictions on types and imports of aircraft and operating routes relaxed in 1994.Private Airlines Currently Operating:• JET AIRWAYS and• SAHARA INDIA 10
  • 11. JET AIRWAYS :Jet Airways has emerged as a major competitor of Indian Airlines on the sector itoperates. It was launched on 5, May 2000 by Mr. Naresh Goyal with approximately100 employees and 2 aircrafts. It has an interline agreement with over 90 internationalairlines which facilitates ticketing and allows for convenient transfer of passengers.The crew has been trained in Malaysia Airlines and Ansett-Rankett among the leadingaviation training centers in the world. Jet airways have the most latest and modernfleet of Aircraft’s operating in India. They have a total of 50 Aircraft’s, out of which• AIRPLANES – fleet Model No. of Planes Boeing 40 A.T.R 10 Total 50The reservation system used by them is SABRE. They have an efficient and courteousground staff to take care of the needs of passengers. They have the quickest baggagesystem. 11
  • 12. Jet Airways is not just a passenger airline – an important part of their revenue accruesfrom their cargo division. They have capability of up to 2.5 tons per flight and withthe current fleet expansion the tonnage would be 35000 tons.Their basic aim is to fly more people and more cargo to more destinations faster andmore often than any other airline in the country.History Of Indian AirlinesIndian Airlines came into existence after nationalization of eight private airlines. Atthe time of nationalization, Indian Airlines inherited a fleet of 99 aircraft, consistingof various types of aircrafts. With nationalization, Indian Airlines startedmodernization in Indian civil aviation industry. Year 1964 heralded the beginning ofthe jet era in Indian Airlines, when the Caravelle Aircraft was inducted into the fleet.Airbus A320s, included it the fleet of Indian Airlines, were introduced in the 1990s.Continuous up gradation in the fleet Indian Airlines has been going on, ever since itsinception.Re-branding Of Indian AirlinesIn the year 2005, India witnessed a number of re-branding initiatives, taken by someof the big names in the corporate world. One such noted move was made by IndianAirlines Limited, which changed its name to Indian. The decision was a part of thepromotional program, done to revamp the image of the airline. The advertisingcampaign of Indian airlines was a hit amongst the common masses. The turbanedMaharaja mascot of Indian clicked the minds of the people in the country. The 12
  • 13. campaign helped Indian to become a household name in the country. In February2007, the Government of India proposed the plan of Indians merger with Air India.The merger process is currently in progress.DestinationsIndians transport network spans from Kuwait in the west to Singapore in the east andcovers 67 destinations (50 within India and 13 abroad). The destinations covered bythe airline in India include Port Blair, Hyderabad, Tirupati, Visakhapatnam,Dibrugarh, Guwahati, Silchar, Gaya, Patna, Chandigarh, Raipur, Delhi, Goa,Ahmadabad, Jamnagar, Vadodara, Rajkot, Jammu, Leh, Srinagar, Ranchi, Bangalore,Mangalore, Cochin, Calicut, Thiruvananthapuram, Bhopal, Indore, Khujraho,Aurangabad, Mumbai, Nagpur, Pune, Imphal, Aizwal, Dimapur, Bhubaneshwar,Amritsar, Jaipur, Jodhpur, Udaipur, Chennai, Coimbatore, Madurai, Trichi, Agartala,Lucknow, Varanasi, Kolkata and Siliguri. The Indian Airlines international networkcovers Maldives, Nepal, Colombo, Yangon, Kuala Lumpur, Singapore, Bangkok,Bahrain, Kuwait, Muscat, Doha, Dubai and Sharjah. Presently, Indian Airlines has afleet of 70 aircraft, including Airbus A319-100, Airbus A320-200 and Airbus A321-200.In the recent past, Indian civil aviation sector has grown manifold. Several newplayers have entered the industry and many more are about to enter the arena. Apart 13
  • 14. from the state-owned airline, a number of private companies have entered the arena,thereby providing more choices to the passenger. Today, air travel is no more themonopoly of the rich and the mighty. With the arrival of cheap airline carriers inIndia, air traveling has become simpler and cheaper. Private players includingKingfisher Red, Spice Jet, Jetlite, Indigo etc. are coming up with attractive rates fortheir passengers, thereby making civil aviation lucrative.Now, airline has become a common man’s vehicle and revolutionized the way acommon Indian traveler used to travel. The airlines are adding more and more cities totheir list of destinations covered throughout the country. Therefore, it can be said thatthe domestic airlines of India have made traveling easier for the masses. More andmore people are opting for traveling by air, because they save a lot of time intraveling, as compared to other means of transportation. Here is a brief preview ofdomestic airlines in India. This includes private airlines as well as low cost airlines inIndia.After being granted permission from government of India on 15 July 2007.indiaairlines and air India merged and started too operated as a single entity. Post mergerthe new airline will renamed as air India. This air line is also member the star alliancelargest airline alliance. 14
  • 15. Sahara India: -It was launched in 1978 from Gorakhpur. It was started with a small capital of Rs.2000/- and the establishment was one small room.The business today has reached over 2600 crores. Now they have 971 offices and thebiggest infrastructure in the private sector in India. They work force is over 70,000and the growth is over 280%. The various activities they carry out are Para banking,housing, steel, aviation and mass communication. 15
  • 16. The philosophy of Sahara India is growing emotionally and materially together like afamily i.e. Collective Materialism. They operate with Boeing aircrafts. It follows themotto of “Value Added flying”. They have a central reservation system and Gabriel IIprograms. They have in-flight entertainment through audio-visual facility. They havetaken technical assistance from British Airways and provide ratable maintenance andmaterial management support. They have special security expert team and state of theart explosive detection equipment.PROBLEMS FACED BY PRIVATE AIRLINESThese include: -• Lack of training facilities.• Poor maintenance facilities.• Low inventory of spares due to prohibitive costs of importing spares.• No proper monitoring cell for analyzing information.• Lack of skilled manpower with respect to pilots and engineering staff.• Necessity of keeping operation at a low cost.• Poor infrastructure at airport. COMPANY PROFILEThe saga of Indian Airlines began by the amalgamation of 8 private airlines, with thepassing of Air Corporation Act to nationalise the air transport industry. The journeybegan with a modest fleet as well as high aspirations and over the years, IndianAirlines innovated and upgraded its fleet to emerge as one of the largest domestic 16
  • 17. airlines in the world. Today Indian Airlines, along with its subsidiary Alliance Air,provides an extensive network which encompasses the whole of India – ageographical area equivalent to Western Europe, besides reaching out to 17international stations.In the last four decades, Indian Airlines has progressed by leaps and bounds and hasbuilt an excellent track record of manpower and infrastructural development. It hasthus emerged as a proud symbol of modern India.Some of the highlights of this glorious period of evolution include –• Increase in passenger carriage from 0.5 million in 1954-55 to 8.4 million in 1997- 98.• Spread of network from 23,000 kms in 1953 to 1,18,000 kms in 1998-99.• Growth of assets from Rs. 21 million to Rs. 30,000 million in 1998-99.• A manifold increase in system seat capacity from 3070 seats per day in 1955 to 35,700 seats per day.THE HUMAN COMPONENTIndian Airline’s success could not have been possible without its 21,990 personnel .Everyone from pilots, cabin crew and engineers to commercial and administrativestaff.Moral building communication initiatives have helped at Indian Airlines to play theirpart in the turn around. Productivity linked incentives and greater transparency in 17
  • 18. recruitment, promotion and transfer policies have greatly contributed to majorimprovements in the efficiency of the company’s service.The diverse programmes offered by the Central Training Establishment, Hyderabadvirtually a university of the air, it trains personnel in all aspects of airlines operations.Effective refresher training programmes have helped to further enhance the skillslearned at Central Training Establishment. The company also continues to providevarious welfare measures to employees, such as medical facilities, subsidisedcanteens, educational scholarships, holiday homes, sports clubs, festival advance etc.CONTINUED FLEET EXPANSION AND MODERNISATION.On its inception in 1953, Indian Airlines took to the sky with the fleet that included: -• 74 DC-3 (Dakota) • 3 Sky Master • 12 Viking •5 Sentinel• 1 Twin Beach • 1 Single Beach • 1 Auro xix •1D.H.Dove• 1 Saab Safir AircraftA phased fleet modernization programed was started by Indian Airlines with theintroduction of Viscounts in 1957, followed by Fokker Friendship Aircraft in 1961.With the arrival of the pilot friendly Caravelle turbo jet in 1963, Indian Airlines tookdomestic aviation in to the jet age. In the 60’s, the first Indian built aircraft HS- 748(Avro) was induced into Indian Airlines and the year 1971 saw the induction of 18
  • 19. Boeing 737’s. In 1976, Indian Airlines, became the first domestic airline in the worldto induct wide-bodied 273 seater Airbus A- 300 aircraft, thus setting new standards inpassenger comfort. With the introduction of the state of the art Airbus A-320 in 1989and its fly by wire technology, Indian Airlines acquired the latest in aviationequipment.1. Indian Airlines has an extensive fleet of 68 aircrafts comprisingAIRPLANES – fleet Model No. of Planes Airbus A300 15 Airbus A320 35 Boeing 737 18 Total 682. Indian Airlines flies 25000 passengers on 210 flights to 59 cities in India and 17 international destinations. Indian Airlines has the largest domestic reach in the country with the network that stretches from Leh and Srinagar to Port Blair and Dibru Garh.3. Indian Airlines bases are situated at the 4 metros. No. of bases 4 – Delhi, Mumbai, Calcutta and Chennai.CONTRIBUTION TO NATIONAL EXCHEQUER. 19
  • 20. The company has contributed Rs. 569.88 crores to the Govt. Exchequer by way ofcustoms duty, sales tax, excise duty etc., during the year.Joint Venture & Hub and Spoke Operations.Arrangements with Air India Ltd. for joint venture operations on the Indo- Gulf sectorand the Hub and Spoke operations continued during the year. The hours flown duringthe year vis-à-vis the hours previous year were as follows: - 1998-99 1997-98Joint Venture 4687 4812Hub and Spoke 538 600Jet Engine Overhaul Complex.The JEOC, functioning as a separate profit centre since May 1996, has saved thecompany expenditure to the tune of Rs. 6.70 crores, besides saving precious foreignexchange.Cargo Promotion:-With a carefully planned marketing strategy the company was able to generatesubstantially high revenue of Rs 156.83 crores on carriage as compared to Rs126.73 20
  • 21. crores in the previous year. This is due to the success of it’s new door-to-door cargoservice with M/S Gati Cargo.Capacity Production and Utilisation:-The performance of the company in terms of Capacity Production -`Available Tonne Kilometers’ (ATKms) andCapacity Utilisation -`Revenue Tonne Kilometers’ (RTKms) improved significantly. Similarly, the number ofpassengers also registered a growth, despite recession in the economy and sluggish market conditions, as results belowindicate. 1998-99 1997-98ATKms (Millions) 1296.157 1170.767RTKms (Millions) 827.553 765.209Passengers Carried 8.38 8.17(Including AllianceAir)Financial performance of Indian Airlines:-The net profit has dropped from the previous year from 47.27 crores in the year 1997-98 to 15.6 crores in 1998-99. Although in the current financial year, i.e, 2008-2009, itis expected to rise to Rs. 170 crore.Real Time Computer:- The Passenger reservation system of Indian Airlines was switched on to the newIBM ES-900 computer on the 8,March 1998 replacing the UNISYS mainframecomputer which was in use since March 1985.The improved central processingresponse time of the system has resulted in a three fold increase in the capacity tohandle queries. The new system uses the IBM hardware and software designed by thesubsidiary of British Airways. 21
  • 22. Computerised Reservation SystemIndian Airlines possesses an extensive computerised reservation system to provideonline reservations service to its clients. The reservation system is being maintainedthrough a powerful mainframe computer, which is accessed by more than EDP 2000terminals across the length and breadth of India, apart from the International Stations.Access to the reservation system is also available through several hundred travelagencies operating in the country.Indian Airlines participates in the following major CRS in the world therebyproviding access to the Reservation System to travel agents around the globe-SabreGalileoAmadeusAbacusWorld SpanGeminiInfinitiGETSAccess 22
  • 23. ANALYSIS OF PASSENGER SURVEY 23
  • 24. On collection of all the completed questionnaire from passengers and travel agents,the data was aggregated and methods of its analysis applied so as to interpret therequired information and meaning.1) Purchasing decision of tickets for the passengers:-Out of the 150 respondents surveyed, it was found most of the passengers, purchasedtheir tickets from a travel agent. Primarily because travel agents offered discounts andprovided better options. 47% of the passengers purchased their tickets from travel agents. 32% say that their company books it. 21% purchased their tickets directly from an airline counter. 100% 90% 80% 70% 60% 50% 40% 30% R N d n p o s e t f 20% 10% 0% Travel Company Airline Agents Booking Counter 24
  • 25. 2) As, air travel is more convenient and less time consuming than other modes of travelling, people with now increased purchasing power as well as due to better services in air travel are flying more often. The results show that 42% of the passengers travel every week. 40% of the passengers travel every fortnight. 16% of the passengers travel every month. Only 2% of the passengers travel every year.3) Which of the following domestic airline have you travelled by?Out of the 150 passengers surveyed, all had traveled by Indian Airlines, as it is theoldest and has better connections than rest of the airlines and it still is the leader.These results indicate the following: - 100% respondents/passengers have traveled by ‘Indian Airlines’ 96% respondents/passengers have travelled by ‘Jet Airways’. Showing that it is the main competitor of Indian Airlines. 92% respondents/passengers have traveled by ‘Sahara Airlines’. Sahara is slowly and gradually increasing it’s market share through continuos advertising, discount and better flight services. 25
  • 26. 4) Most Preferred AirlineIn accordance to the survey, the passengers are seeking better levels of service andquality than ever before. Out of the 150 respondents surveyed the results areindicating a growing preference for private airlines over Indian Airlines. But,passengers also feel, Indian Airlines is improving after being bitten in the knee.Indian Airlines - 42%Jet Airways – 44%Sahara Airlines – 16% 100% 80% 60% 40% N R d n p o e s t f 20% 0% Indian Airlines Jet Airways Sahara India Airlines 26
  • 27. Out of the 150 travelers, who prefer Indian Airlines for domestic travelling say thatthey prefer Indian Airlines because of the following reasons: - It has better connections all over India and it has a wide coverage all over the country. For it’s flight timing and improving punctuality. Since it is a Government undertaking, all the government employees travel by this airline Oldest airline, therefore goodwill.5) Purpose Of TravelThe purpose of this question No. 5 is to determine the trend of the new age traveller.Does he use the airline’s just for business/work, as was the case in 70’s and 80’s dueto high tariff and low purchasing power. The results indicate that 74% of thepassengers surveyed travel both for work as well as leisure/holiday. 20% of thepassengers only travel by air for work purposes and remaining 6% travel by air onlyfor leisure/holiday. 27
  • 28. 100% 80% 60% 40% R N d n p o s e t f 20% 0% Leisure and Work Work Only Leisure Only6) Frequent Flier ProgrammeFrequent flier programmes were started first by Indian Airlines, to promote travel withthem, as they faced threat from various private airlines. All, the airlines now have afrequent flier programme, but as of now it has not gained much popularity as theresults show.7) The number of respondents who were members of a frequent flier programme out of 150 were 38. Out of these 38 people 20 were the members of ‘Jet Privilege’, the frequent flier programme of Jet Airways and the rest ‘15’ were members of Indian 28
  • 29. Airlines frequent flier programme. 2 were members of both and 1 was a member of Sahara and Indian airlines.The travellers are mostly corporate travelers who are members of these programmes.And they get following benefits: - • Priority reservation. • Free tickets after certain mileage. • Separate check in counter. • Extra baggage allowance. • Priority waitlist. Priority on booking of international tickets, who are in collaboration with the domestic airlines.8) Factors considered important for relative influence on the ‘Choice of Airline’ In the buying process decision for an airline ticket, consumer usually goes throughthese factors viz, suitability of timings, on time performance, in – flight service, in –flight comfort, appearance and hospitality of crew, ease of reservation andcancellation, baggage handling, frequent flier benefits and airfare. In the questionnaireI have taken all these factors with a rating of 1 to 4.1) Stands for Not Important2) Least Important3) Important4) Very ImportantSuitability of timings: - in accordance to the important survey conducted, thefollowing results were achieved.(Suitability of Timings) (%) 29
  • 30. 1) Not Important 4%2) Least Important 2%3) Important 58%4) Very Important 36% Important Not Important 0% 20% 40% 60% 80% 100% No of RespondentsOn time performance: - On time performance is an important consideration forcorporate travellers but when compared on time performance standards of domesticairlines are relatively poor as compared to the west.(On time performance) (%)1) Not Important 0%2) Least Important 28%3) Important 54%4) Very important 18% 30
  • 31. Important Not Important 0% 20% 40% 60% 80% 100% No of RespondentsIn flight service: - With the recent entry of private airlines, the in flight servicestandards have improved both for national domestic carriers and private airlines.Continuos improvements seem to be a part of the programme.( In Flight Service) (%)1) Not Important 0%2) Least Important 0%3) Important 62% 31
  • 32. 4) Very Important 38% Important Not Important 0% 20% 40% 60% 80% 100% No of RespondentsEase of reservation and cancellation: - Indian Airlines, Jet and Sahara are all in therace for providing better service, and ease of reservation and cancellation is anotherimportant factor considered by the respondents(Ease of reservations And Cancellation) (%)1) Not Important 10%2) Least Important 40%3) Important 40%4) Very Important 10% 32
  • 33. Important Not Important 0% 20% 40% 60% 80% 100% No of RespondentsBaggage handling: - Baggage handling systems have improved over the few years andspecial baggage handling service are provided by Indian Airlines, Jet and Sahara forits business class travelers.(Baggage Handling) (%)1) Not important 6%2) Least Important 68%3) Important 26%4) Very Important nil 33
  • 34. Very Important Important Least Important Not Important 0% 20% 40% 60% 80% 100% No of RespondentsIn flight comfort: - In flight comfort, is a relatively new factor for consideration, so,many respondents associated it with the in-flight service. As more or less all operatorshave similar models of aircraft’s comfort was given less importance as resultsindicate.(In-flight comfort) (%)1) Not Important 0%2) Least Important 30% 34
  • 35. 3) Important 62%4) Very Important 8% Very Important Important Least Important Not Important 0% 20% 40% 60% 80% 100% No of RespondentsAppearance and hospitality of crew: - Appearance and hospitality of crew is also oneof the factors that passengers look in the relative choice of airlines.(Appearance and hospitality of crew) (%)1) Not Important 8% 35
  • 36. 2) Least Important 58%3) Important 32%4) Very Important 2% Very Important Important Least Important Not Important 0% 20% 40% 60% 80% 100% No of RespondentsFrequent Flier Benefits: - Frequent Flier benefits are now being offered by everyairline and so are also the various and varied kinds of benefits. From priority check-in’s to disco at 5-star hotels. Only a few respondents are members of frequent flierprogramme, but they agree this definitely influences their buying decision towards anairline 36
  • 37. (Frequent flier benefit) (%)1) Not Important nil2) Least Important nil3) Important 364) Very Important 64 Very Important Important Least Important Not Important 0% 20% 40% 60% 80% 100% No of RespondentsAirfare: - Airfare is also a factor, which plays a dominant role in the buying decisionof an air-ticket. Recently passengers were a witness to a major price – war in theimportant routes. And this also lead to an increase in overall demand for air travel.(Air Fare) (%)1) Not Important 0% 37
  • 38. 2) Least Important 4%3) Important 62%4) Very Important 34% Important Not Important 0% 20% 40% 60% 80% 100% No of Respondents9) Customer Satisfaction Levels of All Domestic Airlines Based On Certain ParametersCustomer service satisfaction of various airlines has been evaluated on the rating scaleof 1-3 where 38
  • 39. 1) Stands for ‘Bad Performance”2) Stands for ‘Average Performance”3) Stands for ‘Excellent Performance’It has been evaluated in terms of the following attributes viz, on time performance, in-flight service, in-flight comfort, cabin crew behavior, reservations and cancellations,baggage handling, frequent flier benefits, airfare and discounts, safety and securitymeasures and flight schedules. The first and foremost objective of the passenger’sservice survey is to measure the passenger’s satisfaction. 39
  • 40. Comparative Analysis Excellent Performance Average Performance Bad Performance IA Jet Sahara IA Jet Sahara IA Jet SaharaOn-Time Performance 22% 52% 32% 54% 44% 60% 24% -- --In-flight Service 6% 86% 54% 68% 10% 38% 26% -- --In-flight Comfort 22% 34% 24% 74% 62% 60% 4% -- 8%Cabin crew behavior 6% 80% 32% 64% 16% 58% 24% -- 2%Reservation & 20% 32% 28% 66% 60% 54% 14% 4% 10%CancellationsBaggage Handling 12% 36% 22% 62% 56% 48% 26% 4% 22%Frequent Flier Benefits 36% 24% 20% 58% 66% 60% 6% 6% 12%Air-fare and Discounts 22% 8% 44% 74% 76% 36% 4% 12% 12%Safety and Security 12% 14% 10% 64% 78% 74% 24% 4% 8%Flight Schedules 38% 16% 8% 52% 74% 56% 10% 6% 28%Comparative Analysis based on Excellent Performance 40
  • 41. 100% Indian Airlines Jet Airways Sahara India 80% 60% 40% R N d n p o s e t f 20% 0% On Time Performance In Flight Service In Flight Comfort Cabin Crew Behaviour Reservations & Baggage Handling Frequent Flier Benefits Safety and Sercurity Flight Schedules Airfare and Discounts Cancellation10) Indian Airlines has been a different ball game. Developed and groomed in an environment of monopoly, its staff had developed “ Icare less” syndrome which it will take long to overcome. Over staffing and ill discipline was another problem, with the former still 41
  • 42. existing. The earlier image of long waiting lists in popular routes of Indian Airlines, frequent delays and unsympathetic attitude isslowly beginning to change as the results may indicate. This has happened as a result of the recent induction of private airlines in thesame sector and the new pro-active board, in turn have forced Indian Airlines to become a better service oriented and customer friendlyairline. 42
  • 43. Passenger Perception of Indian Airlines BETTER SAME AS BEFORE WORSE NO OPINIONCABIN CREWBehaviour 48% 44% 4% 4%Ground StaffBehaviour 22% 60% 6% 12%In-flight service 42% 54% 2% 2% 43
  • 44. In-flight comfort 26% 68% - 6%Redressal ofComplaints 6% 50% 20% 24%On-timePerformance 26% 58% 6% 10% Better Same as Before Worse No Opinion 100% 80% 60% N R d n p o s e 40% t f 20% 0% Cabin Crew Behav iour Ground Staff Behav iour In Flight Service In Flight Comfort Redres sal of Complaints On Time Performanc e 44
  • 45. 11) Passengers are feeling the changes in Indian Airlines and it’s service level’s therefore they are now encouraged to buy the IndianAirlines ticket.The results indicate that the probability results are fair: -Definitely will buy –28%Very likely will buy –36%Probably will buy –36% 45
  • 46. 100% 80% 60% 40% R N d n p o s e 20% t f 0% Definitely will Very Likely Probably will Buy will Buy Buy12) The last question is an open-ended question with a purpose to find what passenger’s want from Indian Airlines, the way they feelimprovements can be made in it’s service standards, as well as understanding what are the requirements of a traveller. This answer hasbeen very useful to give suggestions and recommendations. 46
  • 47. ANALYSIS OF TRAVEL AGENTSAns. 1 The domestic airlines sector only has 3 major players and all 50 (i.e. 100%) travel agents stocked the tickets of all the three majorairlines (i.e. Indian Airlines, Jet and Sahara).Ans. 2 Percentage of tickets sold for Domestic Airlines out of the sample size of travel agents surveyed, the percentage of tickets for Indian Airlines sold each week has the maximum share of 52% whereas Jet Airways was second highest at 36% and Sahara third at 12%. 47
  • 48. Ans. 3 Out of the total sample size, it was found that the maximum number of Travel Agents have corporate clients are: -92% - Corporate Clients84% - Professional/ Businessmen 48
  • 49. 60% - Govt. Public Sector Clients70% - Walk in Clients72% - Foreign Clients 100% 80% 60% 40% R N d n p o s e t f 20% 0% Corp. Clients Profressional / Govt. / Public Clients Walk in Clients Foreign Clients Businessmen 49
  • 50. Because of opening up of the Indian Economy, there has been a considerable rise in corporate clients and since there is continuedencouragement to tourism by the Indian Government, the share of foreign clients (tourists) has also increased.Ans. 4Use of computer Reservation system (CRS).• Out of the total travel agents surveyed 38 travel agents use CRS (i.e. 76%).• Out of the 38 travel agents 58% use Amadeus and Sabre/Star, 42% use Galileo for the of• Domestic airline ticket. 50
  • 51. 100% 90% 80% 70% 60% 50% 40% R N d n p o s e t f 30% 20% 10% 0% Galileo Amadeus & SABRE / SITAR Frequency of Air TravelAns.5 Out of the 50, Travel agents surveyed, it was found that the private airline performance was preferred in relation to the prescribedfactors.For In-flight services: 54% of the travel agents have considered Jet Airways as best airline for in flight services and 46% haveconsidered Sahara Airlines. Sahara Airlines with it’s recent improvement in menu is already on it’s way to compete with the best. 51
  • 52. Booking/Reservation: 38% of the travel agents have considered Indian Airlines the best airline for it’s booking services, thanks to thenew reservation system, whereas 36% of the travel agents feel the same for Jet and 26% for Sahara.Check in Services: 52% of the travel agents consider Jet Airways and 48% Sahara to be the best in check-in-services to passengers. Indian Airlines Jet Airways Sahara India Airlines 100% 80% 60% A 40% n g s e ) t 20% R N T d n p o v a s e r ( t f l 0% In Flight Services Booking / Check In Services Reservations 52
  • 53. Ans. 6 The airlines in order to attract customers are resorting to short-term promotional schemes (like discounted fares on certain sectorfree stays in 5 stars) free car rental etc. This means increased customer attraction to travel by air.Out of the 50 travel agents, 74% of the travel agents feel that Sahara India Airlines offers the maximum short term promotionalschemes, followed by 26% who said Indian Airlines offers the maximum short term promotional schemes. 100% 90% 80% 70% * S.T.P – Short term Promotion 60% 50% 40% R N d n p o s e t f 30% 20% 10% 0% S.T.P Indian Airlines S.T.P Jet Airways S.T.P Sahara India Airlines 53
  • 54. 100%Q.7 The customer preference while buying an airline ticket as according to the travel agents. 90%• Out80% 50 travel agents surveyed 54% of the travel agents say that most of the customers generally look for and in-flight services of the of the airline. 70% 60%• 48% of the travel agents, feel the, that most of the customers 40 for cheap fares and discounts offered by the airline. 50%• 40% of the travel agents feel that, most of the customer look for punctuality, timing and least cancellation of flight. 40% R N d n p o s e t f 30% 20% 10% 0% Good In Flight Cheap Fares Punctuality Least Services & Disc. Cancellation 54 of Flight
  • 55. Ans. 8 Indian Airlines flies to the most destinations across India, to be precise 59, and it is ever expanding. The travel agent with theretrade knowledge, acknowledged the fact that it flies to more destination than any other airline. But, private airlines operations are alsovery rapidly expanding. The result of the question was 100% i.e. all agreed. 55
  • 56. Ans 9&10 SWOT ANALYSIS OF INDIAN AIRLINESA SWOT Analysis of Indian Airlines was conducted from the perception of the travel agents and the findings of the survey. The analysisrevealed the following dimensions.STRENGTHS• Networking and scheduling• Fleet Strength• Market Share built during the monopoly phase• Government Infrastructure which can be upgraded at a comparatively low cost.• Enjoys the strength of NRI traffic as it operates on certain international routes.Weaknesses• Bureaucratic Organization• Strict Hierarchical System followed in the organisation• Low employee morale and motivation 56
  • 57. • Customers dissatisfied with the certain aspects (as compared to competitors) in-flight service and ground staff handling.OPPORTUNITIES• To increase flight operations on those routes, which have a high tourism potential, so as to reap the benefits of an upward moving Tourism Industry.• Awareness and realisation among the employees of the growing competition.• The decision to increase the fleet strength• To gear up to the domestic competition at a time, when the majority share is still in Indian Airlines kitty.THREATS• Growing competition from the private airlines.• Customer services being redefined by private airlines.• Dissatisfied travel agents may prove to serious threat of IA existing market share. 57
  • 58. 58
  • 59. FINDINGS The Questionnaire study has provided me with the information on the levels of customer satisfaction and understanding the needsand preferences of travellers. After doing an in- depth survey of the passengers and travel agents, the following was found: -• In the travel agent questionnaire, two direct questions were asked regarding the ticket sales and number of destinations it flies (QuestionNo.8). The findings proved that, firstly in regard to ticket sales, Indian Airlines sold the maximum number of tickets than any other airline. With regard to number of destinations, Indian Airlines flies to maximum number of destinations and findings have proved that . This result hence proves the hypothesis correct, that Indian Airlines is still the largest domestic airline in the country – in terms of sales of tickets and number of destinations.• For the second hypothesis, that is, Indian Airlines is the most preferred airline by passengers a direct question was asked in (Question No.4). The response was in favour of Jet Airways. Thus proving the hypothesis wrong. According to the survey conducted, Jet Airways is the most preferred domestic airline, followedby Indian Airlines and then by Sahara Indian Airlines. Although the result was in favour of Jet Airways, it also indicated that Indianairlines was not far away in the preference results, indicating a growing trend for travelling by Indian Airlines. There were also other 59
  • 60. indirect questions for preference asked both from Travel agents as well as passengers for their opinion on the various attributes thatcome in passenger satisfaction viz. In-flight service, cabin behaviour etc. • For the third hypothesis that is, passengers are giving importance to the service levels offered by the airlines, the response has been gauged indirectly. In Question No. 8 of passenger questionnaire, the passengers were asked about the factors considered important for relative influence on the ‘Choice of Airline’. In this, questions about factors relating to service were asked viz. In- flight service, in-flight comfort appearance and hospitality of crew. Also a question relating to passenger interest was asked in travel agent questionnaire (Q. No.7). The results for both indicate that service levels have become paramount for customers along with other factors. The information gathered from passenger questionnaire indicates that these factors have been considered important or very important by majority of the passengers. While in the travel agents questionnaire (Q. No. 7) their majority response was for In-flight service, indicating that passengers are increasingly looking for better levels of service from the airlines.• From the analysis of Question 1 of the passenger questionnaire, it was found that maximum number of travellers, purchase their ticket through travel agents, followed by company bookings and airline counter. Primarily, people preferred travel agents because, travel agents offered discounts and provided better options.• According to the passengers survey conducted, (in Question No. 10 of passenger questionnaire) considering the parameters for customer satisfaction viz. On time performance, in-flight service, In-flight comfort cabin crew behaviour etc. The results based on ‘Excellent performance’ of these factors, Jet Airways was the airline which was the most preferred and provided maximum satisfaction to it’s passengers, as most people surveyed believed that Jet Airways provides the best in-flight, food, check- in services etc. to the passengers. 60
  • 61. • People feel that Jet Airways being a new airline is very professional in their approach, while dealing with passengers. Indian Airlines is considered by many as an average airline as regards to customer satisfaction but it has some of the best discounts and cheap airfares. Also, due to it’s large fleet, it’s flight schedule is also unmatchable.• The survey conducted also showed that all the passengers surveyed, had travelled by Indian Airlines, while majority of them had travelled also by Jet followed by Sahara.• Passenger’s perception about Indian Airlines is also changing, through better levels of customer service, which have been initiated by the airline and the passengers are also feeling the same. The response in Question ‘No. 10’ indicates that, efforts are being done by the airlines to uplift their standards of their service. The result chart shows that there is a good percentage of travellers who feel that the airline’s levels of cabin crew behaviour, In- flight service, Ontime performance etc. are improving and are much better than before.• Regarding the frequent flier programme, the travellers felt that not enough was being done by all the airlines to attract travellers to such a programme. Another reason why, they did feel it was not popular was the lack of much air travel by individuals to be entitled to it’s rewards.• In the travel agents questionnaire, it was found that maximum number of travel agents have corporate clients (in Question No. 3 of Travel Agent Questionnaire), but felt that with increase in purchasing power and the convenience offered by other airlines, it was also getting popular for holiday travel. 61
  • 62. • The information gathered from the questionnaire states that travel agents mostly recommend Indian Airlines, because it flies to maximum number of destinations and has goodwill in the industry, because it is the oldest airline in India.• In the opinion of travel agents, the maximum number of short-term promotional schemes is carried out by Sahara India Airlines followed by ‘Indian Airlines’. They felt Sahara does this because, it is relatively new carrier with the fewest destinations, and in order to gain customer confidence, it kept carrying out such promotional schemes. Indian Airlines primarily did it, to save its market share as well as to create a bonus for it’s Goodwill.• The survey with travel agents also indicated that the customer’s preference while buying an airline ticket were good in-flight services, cheap fares and discounts, punctuality, timing and least cancellation of flight. They felt that these factors were the most important for the customers. Travellers today are demanding higher levels of service, and comfort them ever before.• Travel agents also felt that the Private Airlines were more preferred because their service standards were believed to be higher than Indian Airlines. But, they agree that Indian Airlines is slowly and gradually improving it’s standards, and majorities of the travel agents have considered Indian Airlines as the best airline for booking services. 62
  • 63. SUGGESTIONCUSTOMER VALUE Customer delivered value is the difference between total customer value and total customer cost. Total customer value is thebundle of benefits customers expect from a given product or service. Total customer cost is the bundle of costs customer expect toincur in evaluating, obtaining and using the product or service. (Source: - Marketing Management by Philip Kotler)Customer Satisfaction: Satisfaction is a persons feelings of pleasure or disappointment resulting from comprising a product’s perceived performance (oroutcome) in relation to his or her expectations. (Source: - In Charge of Customer Satisfaction by Roger Cartwright & George Green, Preface) 63
  • 64. Indian airlines must focus on making strategies that create quality and value that will meet or exceed customer’s expectations, bycompletely satisfying the customer there is no reason for them to consider alternative airline.• IN FLIGHT SERVICE As Naresh Goyal, chairman of Jet Airways in India has written, ‘Any airline may get you from place to place, but what happensbetween take off and landing is what makes the difference’. In-flight service is being given far more importance than every before,since the arrival of private airlines. It should give on its all main routes, complementary gifts, not only for first class and business classpassengers but also to the economy class passengers. They should encourage innovative and fresh ideas for in-flight service. Overall,they should encourage and believe in service with a smile.• CABIN CREW BEHAVIOUR The ‘I care less’ attitude which was once trademark of Indian Airlines Cabin Crew, is slowly and gradually shedding away.Firstly, it calls for focussed HRD initiatives from the company itself. The company must help and teach the present staff to be morecourteous and understanding. The company, must also recruit smart, young and active people who can handle the job profile better.The major disadvantage of Indian airlines, since it is a Government undertaking the cabin crew age limit is the same as of a person inanother job, so it has a old workforce in its flight’s also, this discourages the traveller and does not give a fresh look to the airline.Indian Airlines must give encouragement to its cabin crew in every way possible, to improve their standards, as this is a service industryand behaviour does matter. 64
  • 65. • ON TIME PERFORMANCE The on time performance was a cause of concern for travellers, as we found during the survey. The on time performance of IndianAirlines is not great, as is required in this business. The private airlines are a major cause of envy on this particular factor for IndianAirlines. The major delay facts is the delay due to VVIP flights and VVIP’s travelling with the other traveller’s on the same flight. Thedelay due to this factor must be totally avoided by better co-ordination between the airline and VVIP’s agencies. Another facts of delayis considered to be, the lazy approach by the allied services staff before the take-off i.e. engineering staff, security staff etc. This musttotally be avoided by the Airline, by better training to set new standards for on time performance for the airline.• EFFECTIVE COMPLAINT HANDLING Effective complaint handling can have a dramatic impact on customer retention rates, deflect the spread of damaging word ofmouth and bottomline performance. Indian Airlines has set up few grievance cells and is setting up a few more in every area ofoperation but travellers feel that it is not much of help. The grievance cell should be more empowered, and should also find out andreport the features that customer look for and what dissatisfies them. 65
  • 66. • RELATIONSHIP MARKETING Relationship Marketing as explained earlier in literature review, should be evolved in itself by developing, maintaining andhaving more interactions with the customer. When compared with other private airlines, passengers felt that there was a lack of warmthshown by the staff. Therefore the staff must be very professional in their approach and very efficient, but the Indian passenger is used tobeing pampered, especially when they pay so much for the services. Therefore, Indian Airlines should train their staff accordingly. Indian Airlines must give calls to its regular travel agencies and maintain a good rapport with them. They should also give gifts tothe travel agents which they can keep on their counters as this will keep reminding them of the airline. The concept of ‘RelationshipMarketing’ must also be used for travel agents as they are a very influential medium between the airline and the traveller. Indian Airlines, in order to increase its market share and fight competition, must introduce short-term promotional schemes,especially in the lean season. Short term promotional schemes can offer a lot of advantage to the company, firstly it is benefiting thetraveller in every manner, so he is happy, it also gives the chance to the company to create and improve its goodwill among its traveller,and the short term promsotional schemes also offer the company better market presence. 66
  • 67. Indian Airlines can offer short-term promotion schemes because, it is a financially stronger compared to its competitors, plus it ismore experienced and therefore can offer better deals. Encouragement must also be given to low traffic sectors, and for that salespromotion measures must be used.• ADVERTISING Another major area in which Indian Airlines is weak, is advertising field. Advertising is the missing link between the brand nameand the customer’s perception. Even if the product/service has been designed to target the customer’s want with pin-point precision, it isonly the communication with the customers, in general and advertising at it’s most patent form, in particular that will inform them justhow one is trying to provide value to them. Advertising had been scarce by Indian Airlines before the private airline operators arrived• Their advertisement should be differentiated from that of competitors.• The benefits offered by their advertising must match their service usage.• Advertisements should focus on brand name• Their advertising should be designed to wake an emotional response. 67
  • 68. Indian Airlines enjoyed its monopoly, so they never felt the need to advertise. Now, it has become an altogether different ball game,with advertising forming an important part to inform the customers, so as to create more awareness about the airline, and its scheduleand its was felt by the travel agents and travellers that private operators were advertising more. Indian Airlines should develop different advertisements targeting towards different consumer i.e. international travellers, domestictravellers, corporate clients etc. The clever use of media can clean a path through the clutter for the advertising message, it must beunique enough in its own right to make a statement. Indian Airlines advertisement mix should have benefits offered by the airline and also something, which tells about the company,so as to create a better image.• FREQUENT FLIER PROGRAMME While doing the survey, travellers indicated that frequent flier programme were not very popular in India, but felt if the rightrewards/ benefits are attached, it can turn into a lucrative option for the company as well as for the traveller. The frequent flierprogramme of Jet was the most popular, therfore Indian Airlines must focus more on this scheme, this option can create more demandand happier customers for it. Since it is the largest domestic airline and carries maximum no. of passengers it can encourage repeatusage. The recent frequent flier programme must be reviewed and more benefits added. 68
  • 69. • GAINING COMPETITIVE KNOWLEDGE Since competiton has arrived the market share of Indian Airlines has declined, as it ended its monopoly, so it must formulate moreeffective strategies and knowledge about competitor’s activities must be known. For improving the service of Indian Airlines Limited, Indian Airlines should know what their competitors are doing. But to outthink them, you have to know them thoroughly. Through travel agents, travellers and other company sources, Indian Airlines shouldtrack what competitors are doing and what the company can do to create differentiated service. It will help the company to addresspreferences, service requirements of the travellers better.• MORE FOCUS ON CORPORATE CLIENTELE.Indian Airlines has all kinds of clientele, from tourists passengers to students, to corporate clients. But after the arrival to private airlines,the number of corporate clientele travellers has come down.Indian Airlines must not forget that these are, and are going to be the maximum users of the airlines, in order to counter the loss, itshould start re-focussing on corporate clients as well. This can done by promoting it’s executive and business class more as well asincreasing it’s standards of service, as well as refurnish the interiors of the plane’s in which they commute, offer better comfort and in-flight service as well as frequent flier benefits. If Indian Airlines follows this strategy of differentiated working, it will be able to re-gainits market share with corporate clients. 69
  • 70.  Indian Airlines should invest in other mediums, for promoting and creating awareness of it’s airline also. For e.g. It shouldencourage and promote for extensive use of internet website by travellers. According to the data collected, Indian Airlines should also target at those people who fall in the category of – ‘very likely to buy’and probably will buy. The people who fall in ‘very likely to buy’ is about 28%. They just need a little push in the form of an addedincentive to fly with Indian Airlines and the people who cannot decide whether to fly Indian Airlines ticket i.e probably will buy, arepotential customers/passengers and therefore they can be made permanent by offering more benefits in services and through greaterawareness about the airline. One of the major competitive advantage Indian Airlines enjoys is the best flight schedules which it offers. Now this competitiveadvantage should be further strengthened by Indian Airlines with an ever expanding air network, and more destination’s opening, IndianAirlines must continuously upgrade it’s fleet size and exploit those destinations first before the competitors do. It should focus also onproviding trunk routes, this can be done through more efficient and increased utilization of aircrafts. Indian Airlines with it’s financialstrength and Government backing should make most, by buying new planes and increasing it’s network. 70
  • 71. 71
  • 72. Research Plan:. Market Survey Type of Research Market Segment Passengers / travellers Geographical Area New Mumbai/Thane. Data Sources Secondary - Print Media - Internet -Company documentation Primary - Survey research Research Instrument questionnaire Sampling Plan Sampling Unit- Airline passengers - Travel agents Sample Size- 150 passengers 50 travel agents Sampling Procedure-Non- probability judgmental. Contact Method Personal Interviews. 72
  • 73. CONCLUSIONFrom the findings and comparative analysis of the data two of the hypothesis have been proved correct. The two which are provedcorrect are that, Indian Airlines is still the largest domestic airline in the country – in terms of sales of tickets and number ofdestinations. The other hypothesis, which has been proved correct, is that passengers are giving importance to the service levels offeredby the airlines. The one which was proven wrong was Indian Airlines is still the most preferred airline, by passengers, amongst the manycompetitors. Thus this wrong should be converted into right by Indian Airlines, and for that suggestions and recommendations havebeen given in the earlier chapter. Although the margin of preference is not much, but in today’s competitive scenario, one needs to bethe best in all aspects. It was found during the period of data collection that travel agents also agreed that Indian Airlines is still the largest domesticcarrier. Although, majority of them believed Jet Airways to be preferred than Indian Airlines. They also felt that passengers are giving 73
  • 74. importance to the service levels offered by the airlines. Travel agent’s felt that suggestive and proactive approach was required by IndianAirline’s to be the most preferred airline, and felt that it had begun to take the right approach. They also felt that they lackedinnovativeness and were only concentrating on providing air travel but did not aim for excellence in service levels. The biggest problem a travel service marketer faces is determining what to sell and to whom, thus there is a need to be bothcircumspect and selective. Over promising and under delivery of a service can lead to a loss of money and loss of client and in a tradewhich is as insular as the travel trade, the ripple effect is disastrous. While purchasing an airline ticket, about 54% of the travel agents say that most of the customers generally look for good in flightservices of the airline. Around 45% of the travel agents felt that most of the customers look for cheap fares and discounts offered by theairline and 40% of the travel agents feel that most of the customer’s look for punctuality, timing and least cancellation of flight.Therefore it can be said that In-flight service, schedules, punctuality and fare/tariff are the most important considerations that a customerkeeps in mind before deciding in purchasing an airline ticket. Indian Airlines is a financially strong company and should work on a turnaround strategy which consists of a focussed attention inimproving in-flight services, increased utilisation of aircrafts, Human Resource Development initiatives, increased internationaloperations, creations of profit centres and better commercial initiatives. 74
  • 75. REFERENCES1. `Marketing Management’ – Philip Kotler2. `Marketing Research’ – Ronald S Rubin & David J Luck 75
  • 76. 3. `Marketing Management’ – Rajan Saxena4. `Marketing Management in Indian Context’ – V S Ramaswamy & S. Namakumari5. `Marketing’ – Carol Mayall & Sally Palmer6. `Research for Marketing Decisions’ – Green, Tull & Abraham7. `Marketing of Services’ – Bijender Kumar and Bidhi Chand8. `Customer Driven Services Management – S Balachandran9. `Services Marketing’ – Ravi Shanker10. `Incharge of Customer Satisfaction’ – Roger Cartwright & George Green11. `Marketing of Service’ – Harsh V Verma12. `Services Marketing’ – Woodruffe13. `Valuing Your Customers’ – Angus Jenkison14. `Effective Management of Market’ – Angela Heatton & Mike 76
  • 77. Warson .15. `Business Standard’ – Special issue on Aviation16. `Business World’ – April 199717. `Business Today’ – October 199618. `Indian Airlines’ – Annual Report, 1997-9819. `Indian Airlines’ – Annual Report, 2009-201020. ‘Services Marketing’ – K.V.Patankar. 77
  • 78. INDEXSr. No TOPIC Page No. 1. EXECUTIVE SUMMARY 1 78
  • 79. 2. PURPOSE OF STUDY 23 AVIATION INDUSTRY 8 • ACHIVMENTS4 COMPANY PROFILE 165 ANALYSIS OF PASSENGER SURVEY 236 COMPARATIVE ANALYSIS 387 PASSENGER PERCEPTION 418 ANALYSIS OF TRAVEL AGENT 449 SWOT ANALYSIS 5110 FINDINGS 5311 SUGGESTIONS 5712 RESEARCH PLANS 6413 CONCLUSION 6514 REFRENCES 67 79