The document discusses strategies for Air India to improve its customer service and brand image in order to become profitable again. It recommends making service tangible by focusing on appearance, empathy, responsiveness, reliability and assurance. It also suggests a proactive strategy of personalizing service through 3i (instant recognition, instant configuration, instant gratification), focusing on experience over price, building network commitment through hostmanship, nurturing relationships, validating claims, and assaulting customers' five senses. Additional recommendations include empowering and engaging employees, using authentic consultants, and planned advertising to attract new customers. The goal is to deliver a pleasurable experience that encourages customer loyalty and advocacy.
Can Air India regain customer trust with improved service
1. Can Air India Fly Again?
2015
PRODUCT& SERVICEMANAGEMENT- 2
AMEYA SONKUSALE – MSEP14CMM02
S P JAIN SCHOOL OF GLOBAL BUSINESS | 10 HYDERABAD ROAD, SINGAPORE
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Table of Contents
KEY ISSUES...........................................................................................................................................2
MAKE SERVICE TANGIBLE....................................................................................................................2
APPEARANCE ....................................................................................................................................2
EMPATHY..........................................................................................................................................2
RESPONSIVENESS..............................................................................................................................2
REALIABILITY.....................................................................................................................................2
ASSURANCE ......................................................................................................................................2
PROACTIVE STRATEGY.........................................................................................................................2
3i.......................................................................................................................................................2
SERVICE VS EXPERIENCE VS PRICE....................................................................................................3
NETWORK OF COMMITMENT ..........................................................................................................3
NURTURING RELATIONSHIP & CLAIM VALIDATION.........................................................................3
ASSULTING 5 SENSES........................................................................................................................3
EMPOWER & ENGAGE......................................................................................................................4
AUTHENTIC CONSULTANTS..............................................................................................................4
APPENDIX.............................................................................................................................................5
GRAPH: 3i..........................................................................................................................................5
GRAPH: SERVICE LEVEL.....................................................................................................................5
GRAPH: EMPLOYEE ADVOCACY........................................................................................................5
GRAPH: RELATIONSHIP.....................................................................................................................5
GRAPH: CLAIM VALIDATION.............................................................................................................5
GRAPH: NETWORK OF COMMITMENT .............................................................................................5
SERVICE PLAN...................................................................................................................................6
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KEY ISSUES:
1. Wouldthe ₹ 300 billion turnaroundplanintroduced bythe Governmentof India(GOI) inthe year2012, for
AirIndia(AI),be successful?(Bundhun,2014)
The turnaroundplanis aimedmaking AI profitable inthe nearfuture byimprovingoperational
efficiency,restructuringthe debt alongwithimprovingthe brandimage of the National Airline of
India.
2. Will AirIndiabe able to sustainitself withthe currentpractice of havingbloatedstaff numbers,ageingstaff
to serve onthe aircraft, lessthanmediocre service & poignantinternal staff problems?
AirIndiais currentlyisina dismissal state,the brandequityisclose to nothing. The turnaround plan introduced by
the GOI would be successful if and only if Air India ensures that the customers gets a pleasurable experience by
offering an insanely great product along with an insanely great service. The first step to offer a pleasurable
experience is to ensure that your service is tangible, this can be done as follows:
MAKE SERVICE TANGIBLE
APPEARANCE:AirIndia needs to change the current uniform of its staff especially the Air Hostesses, the uniform
worn by them should be smart and suave with the blend of ethnicity of India. Air India should rope in a talented
celebrity designer to design the uniform, this would bring credibility to the brand as well as will be visually
captivating for the customers experiencing the service.
EMPATHY:All the Air India employees at the front end, at every touch point facing the customer, need to give an
authenticexpressive smile assoonasthe customersisat a distance of 10 feetfromthem,andthen if required with
a genuine concerninquire asif theycanhelptheminanyway. Inthe aircraftthe air hostessesalways need to have
a smilingface andmake customersfeel welcome onboard.Wheninteractingwiththe customerswhoare seatedin
the aircraft, the air hostesses need to ensure that they bend down to the eyelevel of the customers while
interacting.All thiswill invoke positive emotionsinthe mindsof the customersandshe will wanttoexperience the
service again.
RESPONSIVENESS:Be itsolvingthe grievances while bookingticketsorfare returnsincase of a flight cancellation or
issues/requests while experiencing the service or responding to a grievance mail, Air India needs to ensure that
response by the concerned employees is instant and the issue is solved at that very moment to the customer’s
satisfaction.
RELIABILITY: On time landing and departure is a hallmark of a reliability for a great airline. In order to ensure
punctuality in terms of landing & departure, Air India needs to ensure that the turnaround time is at most 25
minutes,whichissupposedtobe bestinthe industry.Here,how AirIndiaempowers&engagesthe staff will play a
decisive role for consistently achieving that milestone.
ASSURANCE: Air India currently does not have the trust of the customers, it has near negligible commitment to
ensure thatthe flightsarrive anddeparton time,misplaced baggage is rarely compensated, missed flights/flights
cancelleddue totechnical glitches are rarely rescheduled as per customer’s convenience. This coupled Air India’s
premiumpricingstrategyhasworkedagainstAirIndia.AirIndiawill have tomake focused efforts to convert these
negatives in to positive in order to win the trust of the customers and make them assured of its service.
PROACTIVE STRATEGY
For any service to excel itisveryimportanttopersonalizeorcustomize the service asmuchaspossible in
followingway,
3i: For Instant Recognition,as soonas the customermeetsthe staff at the check-incounter,the staff personnel
shouldbe able togreetthe customerby hername.Thiswouldbe possible through a facial recognition cameras
installedatthe check-incounter.ForInstantConfiguration,passengersshouldbe allowedtoselectthe location
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of theirseat,this would be subject to availability. For Instant Gratification, the staff personnel should ensure
that the customersissatisfied,if notthe doeverythingwithinthe limitstoensure hersatisfaction thusensuring
gratification by honouring her request.
Service VsExperience VsPrice: Inorder tooffera pleasurable experience to its customers Air India should have
lounges catering to all its customers. These lounges should offer all the possible creature comforts so that the
customers of Air India can relax away from the crowd. These lounges should offer gourmet buffets, à la carte
meals,barsand fresh juice bars.Soothing spa facilities,massage& beauty treatment should be made available
to business class & first class travellers in the lounge, thus adding an aspirational appeal for its potential
customers.Complimentary chauffeur-driveservice,making useof only premium luxury sedans, should be made
available to first class & business class passengers. Inflight entertainment system should include all possible
genre & varieties of music, movies&TV shows alongwith kids’ cartoons,all thisinmultiple languages. In terms
of cabinexperience,freeWi-Fiservice should meavailableto all passengers.First class passengers should have
theirown suitwith shower spas and an access to gourmet cuisine matched with exclusive wines, business class
passengersshouldhave facilities like flat bed, global cuisine matched with fine wines, economy class will have
access to entertainment system, ample of leg room & space, free Wi-Fi along with delicious gourmet meal
inspired by the region. Families travelling with kids wouldbe allowed to board first,they would be provided with
changing tables & complimentary stroller at airports. Bassinets would be provided to families travelling with
babies.
Thisservice providedwouldbe highlycustomizedthusthe customerswill getinvolvedin the service and would
allowAirIndiatocharge a highprice as theywill be willingtopaymore for the pleasurable service.Butsince the
current brand image of Air India is on the negative side, Air India would benefit if it charges a littl e less than
whatthe customersare expecting.This would encourage the customers to experience the service of Air India
thus creating the much needed initial inflows, gradually becoming the first choice to fly.
Networkof commitment & Hostmanship:ForAirIndiatodeliverapleasurableexperience,AirIndiashould
follow hostmanship tothe hilt.All the employeesshouldbe treated asbusinesspartners,they should betreated
with samerespect,concern and caring attitudewithin the organization thatthey areexpected to sharewith the
customersof Air India.Theyshouldbe giventhe powerto do anything in their limits to servethe customer
better.Treating employeesgreaterthan customers,providing a stableenvironmentto workin with an equal
opportunity to learn & grow,iswhat wouldbringthatpassiontoserve the customerinthe bestpossible way. All
the employeeswould then pridethemselvesby being highly committed to onegoal,delivering the bestin class
customerservice withwarmth& friendliness in the spirit Air India.
Nurturing Relationship &Claim Validation:
All the AirIndiastaff,epicallythe cabincrewshouldmake effortstoestablisharelationshipwiththe customers,
by knowing thefrequentflyerspersonally and respectfully acknowledging themby theirnamefosters
relationshipwithcustomers.If the cabincrew seesanypassengeratsome kindof uneasinessorsome kindof
distress,theyshouldbythemselvesgoandinquire how theycanhelpthe customerandsolve the problemthen
and there.Thiswouldgratifythe customers&he wouldwantto be associatedwiththe service againinfuture.
AirIndiashouldalsomake sure that itdeliversthatqualityof service itpromisesthe customer,andif notit
shouldpenalizeitself evenbefore the customersasksforsome kindof compensation.Fore.g.:the flightgets
delayed,AirIndiashoulddistribute discountcouponstoall the customers thatwouldallow themtogeta hefty
discountontheirnextbookingoroffercomplimentarygourmetdishesalongwithexclusive alcoholic&non-
alcoholicdrinksfree of costonce on board.Thiswouldgainthe trust of the customersthatAirIndiais
committedtoserve theminthe bestpossible wayandthey’llbe assure of the service offeredbyAirIndiainthe
future.
Assaulting 5 Senses:
For assaultingthe visual appeal,all cabincrew should be young (preferably below 28 years of age), fit & smart.
Theyshouldprofessionallydressedintheirrespective uniform andalwayshave asmilingface.The flightsshould
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be clean & hygienic, before departure flights should be cleared of any waste left behind by the previous
passengers. The lightinginthe flight should be bright till the flight departs, once the flight departs depending
moodlightingshouldbe used. Forassaultingthe sense ofsmell,AirIndiashouldconsultaromatherapyexperts
and findoutone fragrance (signaturefragranceof Air India) which will have a soothing & pleasant smell and a
calmingeffectonthe passengersonboard.Thisfragrance shouldbe sprayedat regular intervals. For assaulting
the sense of touch, the seat fabric used and upholstery should be smooth to touch with a visually pleasant
design. For assaulting the sense of hearing, a calming music should be played till the flight departs, once
departedit should be stopped. For assaulting the sense of taste, Air India should make sure whatever food &
drinks are served to the customer have appeal to their taste buds. By assaulting the 5 senses Air India would
have repeat customers as these customers would want to relive the pleasurable experience.
Empower & Engage: In order to ‘Empower’ its employees, it is very important for the firm to set a conducive
platform for the employees. This can be done by having an exhaustive training through a fun learning
experience.The seniormanagement&companystalwartswhohave yearsof rich experience shouldbe actively
involved in the training. This would make the employees feel important & motivate them to work harder.
Employeesshouldhave autonomytodowhattheythinkis appropriate to provide the best in class service. For
e.g., A passenger is getting disturbed because of a family travelling with kids, if a seat is available in business
class the cabin crew should have the autonomy to upgrade his seat free of cost. Air India should have monthly
Feedback systemwhere inemployeesshould be made aware of areas of improvement, and if the employee’s
performance is exceptional she should be rewarded by public appreciation, one to one feedback by higher
management&growthopportunities.In order to ‘Engage’, Air India should be very stringent in their selection
criterion,forcabincrewonlywell qualified,smart,goodlooking&fitcandidatesshouldbe hired. Once selected
the employees should have a Frictionless Platform to grow within the organization. Air India should lay
emphasison Civil Behaviourof the employees,employeesshouldalwaysbe polite&respectful notjusttowards
the customer but also towards each other. Finally, Air India should ensure that it has Fair and transparent
system,incase of anygrievancesbyemployees,the managementshouldmake sure that the problem is solved
at the rootand final decisionisjust. Alsotokeepeachandemployee of the organization motivated & made to
feel that have the ownership of Air India, financial stocks should be given to each employee.
AuthenticConsultants:AirIndia(AI) employees should help customers reach their personal goals, by ensuring
thingslike flightdeparture andarrival is on schedule, providing reschedulable tickets and so on. AI should put
resources in the pocket of the customers by doing things like allowing students extra luggage free of cost or
allowingcustomerstocancel tickets10 minutesprior to departure and reuse the funds to book other Air India
flight. AI employees should say No to things that harm the quality of service, for e.g., AI should have strict
security policy & should not let any dangerous. Air India should make sure that it does not monetize every
touch point. Air India should have tie up with other airlines, if a customer has missed a flight, if there is any
flightgoingtothe customer’s location, within onehourfromthedepartureof missed flight, the ticket should be
transferred to the partner airline free of cost.
Thus by ensuring that all the services offered by Air India are though well trained & expert staff personnel, a
pleasurable experience that is high on convenience is delivered to the customers. Apart from offering a
pleasurable experience throughthe above services,thatwouldmake the customerswhohave experienced the
service wanttorelive itagain and alongwith beingafirmfollowing (Employee Advocacy)3,itis veryimportant
to attract newcustomersandmake themcustomersforlife.Thiscanbe done by plannedadvertising efforts, of
which one of the thing that would involve, is providing ample visual cues of all the aspirational products &
servicesofferedby Air India in commercials. This would appeal to the reward & pleasure centres in the brain,
making the people want to live the ‘Air India Experience’.
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GRAPHS CURRENT FOR BEING ASPIRATIONAL
3i
SERVICE LEVEL
EMPLOYEE
ADVOCACY
RELATIONSHIP
CLAIM
VALIDATION
NETWORK OF
COMMITMENT
7. SERVICE &
STANDARD
SCRIPT
Response Time Distance to
Lounge
Service
Experience
Time Time Service Experience Checking on
guests
Service
Experience
Greetingthe
guest& assisting
withthe
Checking-In
process
Guestis
directed
towardsthe
Lounge.First
class&
businessclass
guestsare
assistedwith
baggage
Seatingin
Lounge
Greetingthe
guest,
inquiring
aboutthe kind
of service they
wishto
experience.
Remindingguest
45 minutesbefore
flightdeparture,
and assistingfirst
class& business
classwith
baggage to the
departure area.
Greetingthe
guestinthe
aircraft
Guestare
directed
towardstheir
seat, firstclass
& business
classare
escortedto
theirseats/
suite
Inquiringat
regularinterval
if the guests
needanything,
providingfood&
drinksat regular
intervals.
Greetingthe
guestas she
leavesthe
aircraft.
PHYSICAL
EVIDENCE
Well groomed,
smartlydressed,
witha fluent
diction& a
smilingface;
respectfully
greetingguest
by theirname
Smartly
dressedwith
a smiling
face,a staff
assistingthe
gueststo the
lounge area.
Visually
pleasing,
luxury
décor,
withfresh
lemony
scentin
the resting
area.
SoftMusic
playedinthe
back ground,
array of
newspapers &
magazinesat
disposal,open
bars & buffets
Smartlydressed
witha smiling
face,reminding
the guestabout
the departure
time. inquiringif
he wants any
service before
leaving
Well groomed,
smartly
dressed
respectfully
greetingguest
by theirname
witha smiling
face
One of the
cabincrews
guidesthe
guestto their
seat
Mood lighting,
softMusic
playedinthe
back ground,
array of
newspapers &
magazinesat
disposal,
inquiringif they
needanyservice
Well
groomed,
smartly
dressed
respectfully
greetingguest
goodbye,
usingtheir
name witha
smilingface
LINE OF INTERACTION
CONTACT
PERSON
Staff at the
check-incounter
Chauffeur Chauffeur Entourage of
authentic
consultants
Chauffeur AirHostesses Cabincrew
staff
AirHostesses AirHostesses
LINE OF VISIBILITY
SUPPORT
PROCESSES
Facial
recognition
camera detects
the guestand
the name is
communicated
to the staff at
counter
Tellsthe
Chauffeur
througha
microphone
if the
passenger
belongsto
first,business
or economy
class.
Helpingwith
schedulingthe
luxury services
like spa,first&
business class
guestswishto
experience
If any service
requested,
puttingitin high
priority& quickly
arrangingthings
required
Facial
recognition
camera
detectsthe
guestand the
name is
communicated
to Air
Hostesses
SERVICE PLAN