This document provides a synopsis for a project report comparing Jet Airways and Kingfisher Airlines in India. The summary includes: 1) The project will analyze the growth, strategies, efficiency, and marketing practices of Jet Airways and Kingfisher Airlines to provide strategic lessons for future airline operators in India. 2) Primary research will include surveys of 30 travel agents and 100 passengers to understand perceptions of the two airlines. Secondary research will analyze annual reports and government data on efficiency and market share. 3) The analysis will evaluate how liberalization of India's aviation sector contributed to the success of private airlines like Jet and Kingfisher, and what strategic lessons can be learned from their approaches to operations and competition

1. AIMA (PGDM IV): Project Report Synopsis (GM 100)AIMA (PGDM IV): Project Report Synopsis (GM 100)
Aviation Revolution in India:Aviation Revolution in India:
Comparative Study of Jet Airways and Kingfisher AirlinesComparative Study of Jet Airways and Kingfisher Airlines
Rajat ChadhaRajat Chadha
October 2008October 2008
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2. PROJECT REPORT SYNOPSIS
Name : RAJAT CHADHA
Institute : All India Management Association (AIMA)
Title of the Project : Aviation Revolution in India: Comparative Study
of Jet Airways and Kingfisher Airlines
Email ID : rajat38@hotmail.com
Contact Number : 9818354537
Names of the Project Guides/Advisors:
1. Prof. (Dr.) Vijay K. Kaul, Professor of International Marketing, Business Policy and
Strategy, Department of Business Economics, University of Delhi.
Research Interests: Strategic Changes at Firm Level, Economic Transition and
Performance, Economy and Labour and Knowledge Economy in Global Context.
Prof. Kaul has lead many research projects at national and international levels. He has
been associated with ICICI Bank, the Institute of Company Secretaries, European
Commission and the University of Alberta, Canada among others.
He has supervised a large number of M.Phil. and Ph.D. students on diverse topics and has
many papers published in reputed national and international Journals. He has teaching
and research experience of more than 30 years.
E-mail: kaulvijay@yahoo.com1
2. Mr. Rajesh Sharma is currently Manager - Midwest for Trans Am Travel,
a U.S. based travel company. In his present capacity, Mr. Sharma is responsible for
sales development and overall management of company's interests in Midwest U.S.
Mr Sharma began his career with Swissair in New Delhi in 1977. In his over 25 years
tenure with Swissair / Swiss International Airlines, Mr. Sharma served in different
capacities. His last assignment was as Manager - Direct Sales for North India. He left
Swiss in 2003 to join Trans Am Travel in Chicago.
A graduate in Physics from Delhi University, Mr. Sharma participated in
a number of professional leadership and management training programs.
E-mail: rajeshsharma1955@hotmail.com2
1
To provide inputs on strategic and analytical aspects of this research project
2
To guide on issues relating to efficiency and marketing issues of airlines operations

3. -1-
MY BELIEF:
“BELIEVE IN YOURSELF”
IF YOU THINK YOU are beaten; you are:
If you think you dare not; you don’t,
If you would like to win, but think you can’t,
its almost a cinch you won’t.
If you think you’ll lose, you are lost,
For out in the world we find ...
SUCCESS BEGINS WITH a fellow’s will:
It’s all in a state of mind.
Life’s battles don’t always go
to the stronger or faster man:
But sooner or later
the man who wins
IS THE ONE WHO THINKS HE CAN!

4. -2-
I. Working Title:
Aviation Revolution in India:Comparative Study of Jet Airways and Kingfisher Airlines
II. Background and Purpose of the Study:
II.1 Background
Civil aviation is a sunrise sector of the Indian economy and has grown at rapid rate during the
last 15 years. There has been impressive increase in Indian passengers travelling on domestic
as well as international sectors. While there were international airlines, along with Air India,
flying in and out of the country the competition on domestic sectors was limited due to the
monopoly of state owned airline services.
It was through the Air Corporations Act (ACA), 1953 that the Government of India
nationalised the airline industry in May 1953. This led to establishment of two air
corporations, viz. Indian Airlines Corporation and Air India International. The assets of all
the then existing nine airline companies were transferred to the two new Corporations. The
operation of scheduled air transport services was made a monopoly of these two Corporations
and the Act prohibited any person other than the Corporations or their associates to operate
any scheduled air transport services from, to, or across India.
It was in 1986 that private airlines were allowed to operate chartered and non-scheduled
services under Air Taxi Scheme (ATS). However, they could not publish their own time
schedules or issue tickets to passengers. It was after the open skies policy declared for
domestic players in 1991 that private operators commenced their operations thus giving
competition to the state owned monopolist Indian Airlines. In May 1994 the Air
Corporation Act, 1953 was repealed, which ended the monopoly of the Corporations on
scheduled air transport services. The air transport in India was opened up to any carrier which
fulfils the statutory requirements for operation of scheduled services.
II.2 Purpose of the Study
The news of the likely alliance between the two major private airlines of India, viz. Jet
Airways and Kingfisher Airlines, made major news headlines on 14 October 2008. The two
airline companies announced their intentions of creating an alliance for working together in

5. -3-
seven areas including joint fuel management, common ground handling and cross-selling of
flight inventories. It was two days later that Jet Airways laid off 1,900 employees only to be
absorb them back within the next three days. The Indian aviation sector is visibly passing
through troubled times. High fuel prices along with international financial crisis and
economic slowdown have hit the Indian aviation sector quite seriously.
The troubles have been further compounded since the Monopolies and Restrictive Trade
Practices Commission (MRTPC) ordered an inquiry on 17 October 2008 into the
operational alliance formed by two leading private carriers Jet Airways and Kingfisher
Airlines. The Director General of Investigation and Registration of the MRTPC has been
asked to probe whether the alliance would result in monopoly and submit a report within 60
days.
Jet Airways commenced its operations as an Air Taxi Operator in May 1993 and was granted
the Scheduled Airline status in January 1995. It had started with 4 aircraft, 24 flights per day
and 12 destinations. It achieved unprecedented success during the last 15 years and now owns
more than 63 aircraft, 326 flights per day including 18 international takeoffs. It flies to 49
destinations including 5 international ones. It took over Air Sahara in April 2007 and named
it JetLite. While Jet Airways is a full-service carrier (FSC) JetLite is a low-cost carrier
(LCC).
Kingfisher Airlines started its operations in May 2005. It had started with 4 aircraft.
Kingfisher Airlines now operates more than 218 flights daily to 37 destinations across India.
Together with its sister airline Kingfisher Red, formerly known as Air Deccan, it operated
570 flights daily connecting 69 Indian cities. It has commenced its international operations in
September 2008. While Kingfisher Airlines is FSC carrier Kingfisher Red is LCC.
Given that the Indian aviation sector has suddenly entered into unforeseen turbulence after
having undergone a major successful revolution during the last 15 years it is highly relevant
and timely to undertake a comparative study of the two major private airlines, viz. Jet and
Kingfisher which have suddenly turned from being major rivals to friendly allies albeit under
duress. Such study would be based on three major aspects related to the two airlines:
a) growth and development;
b) strategic economic and operational efficiency; and

6. -4-
c) marketing practices.
This study would be focused on domestic operations of the two airlines, viz. Jet Airways and
Kingfisher Airlines.
The growth and development component would be drawn from published reports and
documents. Secondary data from the Annual Reports of the two airline companies and the
Directorate General of Civil Aviation (DGCA) would be used to study economic and
operational efficiency aspects of Jet Airways and Kingfisher Airlines. Primary survey of about
30 travel agents from Delhi and the national capital region (NCR) and 100 passengers flying
on domestic sectors would help in building an understanding the comparative aspects of Jet
versus Kingfisher. The main focus would be on FSC segments of the two airlines, viz. Jet
Airways and Kingfisher Airlines.
A study on “The Best Service Providers in India” conducted by the All India Management
association (AIMA) in collaboration with Yellowjobs.com was released on 16 May 2008. The
Kingfisher Airlines has won the top spot while Jet Airways achieved the third rank. However,
while the Kingfisher Airlines has achieved top ranks in customer service, performance and
security, Jet Airways comes out on top spot for its accessibility and brand awareness.
III Aim
To analyse the comparative performance of Jet Airways and Kingfisher Airlines through
analysing their strategies of economic and operational efficiency along with their marketing
practices so as to provide strategic lessons for the upcoming airline operators.

7. -5-
IV. Objectives
1. To understand the role of India’s Civil Aviation Policy in promoting private
airlines operators;
2. To lay out the evolution and growth of Jet Airways and Kingfisher Airlines in
domestic aviation sector;
3. To compare and contrast strategic, economic and operational efficiency factors of
the two airline companies;
4. To evaluate and differentiate marketing strategies adopted by the two airline
companies;
5. To understand their moves from mutual competition to bilateral alliance; and
6. Outline strategic lessons for other existing and forthcoming airline companies.

8. -6-
V. Key Questions
1. What are the major policy changes in India’s civil aviation which promoted private
airlines to rise up in India’s domestic skies?
2. Has the economic success of India’s growth and development post 1991 economic
reforms contributed to aviation revolution in India?
3. What have been the vision perspectives and strategic goals of the two
entrepreneurs: Mr. Naresh Goyal and Mr. Vijay Mallya?
4. Do liberalised domestic markets encourage airline companies to operate at
economically efficient frontiers? Have Jet Airways and Kingfisher Airlines been
successful in achieving such goals?
5. What is the role of recent advances in information technology in making airline
operations efficient and customer friendly?
6. What role do the marketing practices play in successful operations of the airline
companies? What are the comparisons and contrasts between Jet and Kingfisher
marketing policies?
7. What are the customers’ rankings about their perceptions and experiences about
the two airline companies?
8. What have been the recent factors which have led to the two rivals shaking their
hands in friendly manner?
9. What are the strategic lessons offered by a comparative study of Jet Airways and
Kingfisher Airlines for existing and upcoming airline companies?

9. -7-
VI. Hypothesis
Liberalised policy environment encourages private airline companies to become successful
provided they use strategic management along with efficient economic and innovative
marketing policies.
VII. Methodology
1. Backdrop: The study would provide a backdrop of detailed information on the
relevant issues. Classified secondary information about the civil aviation policy is
available from Annual Reports of the Ministry of Civil Aviation, Government of
India and various documents of the Planning Commission of India. The Eleventh
Five-Year Plan (2007-2012) document estimates a growth rate of 16 per cent for
domestic passengers and 20 per cent for international passengers during the Plan
Period. Indian airports are expected to handle 2,054 lakh passengers (54 million
international and 151 million domestic) in 2011-12. Cargo traffic is expected to
touch 2,684 thousand metric tonnes (TMTs) including 1,823 TMTs international
and 861 TMTs domestic cargo by 2011-12. India would need 45 major airports
by the end of the Eleventh Plan.
2. Literature Review: This section would undertake a comprehensive review of
existing literature on the subject. Unfortunately there is dearth of published work
on the precise topic of this study. An attempt would be made to collate the bits of
information published in economic newspapers, business magazines, annual
reports of government and private airlines and other related documents.
3. Analytical Tools: The study would use the latest tools of policy analysis including
PESTE, SWOT, RCPS and CRM for better understanding of the subject under
study.3
Economic efficiency aspects would be analysed based on detailed database
published by the Directorate General of Civil Aviation in “India Air Transport
3
PESTE: Political, Economic, Social, Technological and Environmental Marketing Model (Stephen Shaw);
SWOT: Strengths, Weaknesses, Opportunities and Threats (technical analysis); RCPS: Reliability, Choice,
Price and Service (Hari World); CRM: Customer Relationship Management (IBM Study on Travel and
Transport)

10. -8-
Statistics” 2006-07. It provides details on operative data on the major Scheduled
Airlines including state-owned as well as private. In order to keep the analysis
manageable, the major focus would be on economic efficiency aspects relating to
the last three years. It would be pertinent to analyse issues relating to market
shares, passengers carried, employees per aircraft (both ground staff and cabin
crew) and profits / losses incurred.
4. Primary Survey: In order to gauge the success path of Jet Airways and Kingfisher
Airlines a primary survey of 30 Travel Agents operating in Delhi and NCR would
be undertaken to solicit their views along with the views of 100 Passengers who
have flown on these two airlines in the past on all the above mentioned aspects of
this study. This would include 10 Travel Agents from each of the three categories,
viz. small, medium and large. The Questionnaires would be designed primarily to
cover domestic airlines with a view to comparing marketing strategies and other
incentive policies adopted by various airline companies. This would provide
insights into how Jet Airways and Kingfisher Airlines have come to dominate
Indian skies with their major shares. The Agents’ perception and passengers’
experiences would be major inputs for analysis of this study.
5. Concluding Remarks: Nothing succeeds like success! This proverb expresses the
idea that success breeds further success. Is this true in real life? If it was true then
Indian Airlines should have been the most successful domestic airline since it had
no competitor till the early 1990s. However, it did not since markets were not
working. It ended up as an inefficient state monopoly with losses being incurred
year after year. This became a drag on the state exchequer. It is only after the
Indian economy was liberalised in 1991 and domestic aviation sector was opened
up in 1994 that the markets started operating. Even today, besides the Indian
(joint venture of Indian Airlines and Air India)4
there is a duopoly of two major
private companies namely Jet Airways and Kingfisher Airlines. However, the two
are trying to work out a mutual operational alliance. Nevertheless private
competition is breeding efficiency and also providing choice to the consumers.
4
A new company National Aviation Company of India Limited (NACIL) was incorporated on 30 March 2007
with headquarters in Mumbai. Air India and Indian Airlines were merged with NACIL on 22 August 2007.
NACIL has been invited to become a member of the Star Alliance network established in 1997.

11. -9-
Finally the industry has reached a stage where mergers and acquisition have
started playing their role like Jet Airways-Sahara and Kingfisher-Air Deccan and
some more. India has already entered the era of having the Low Cost Carriers
(LCC) along with the Full Service Carriers (FSC). Jet Airways and Kingfisher
Airlines have again kept their companies updated through being FSC as well as
LCC (JetLite and Kingfisher Red). The study would outline major lessons from
the experience of the two airline companies so that the upcoming private airlines
can adopt and adapt policies that would enable their efficient operations as well as
benefit consumers (passengers) by providing them with ample choices.

12. -10-
VIII. Proposed Contents of Dissertation
Chapter 1 : Introduction
Chapter 2 : Literature Survey
Chapter 3 : Civil Aviation Policy
Chapter 3 : Company Profiles of Jet Airways and Kingfisher Airlines
Chapter 3 : Analysis of Strategies and Economic and Operational Efficiency
Chapter 4 : Compare and Contrast marketing Techniques
Chapter 5 : Observations and Findings
Chapter 6 : Policy Lessons on Future Operational Strategies
References
Annex-1: Glossary
Annex-2: Abbreviations

13. -11-
IX. Work Plan
It would take about three months to complete this report after the approval of this
Synopsis. I shall be in continuous touch with two of my project Guides: Prof. Vijay Kaul
for strategic and analytical issues and Mr. Rajesh Sharma for efficiency and operational
issues related with airline companies.
Work plan will be as follows:
1. Month 1: Collection of secondary information on civil aviation policy; Annual
Reports of Jet Airways and Kingfisher Airlines, DGCA, Travel magazines,
Internet search and newspapers;
2. Month 2: Preparation of two Questionnaires: One for 30 travel agents and the
other for 100 passengers; Pre-testing of the Questionnaires; Primary data
collection; Analysis based on tools mentioned in Section VII.3 of the
Methodology as given above; and Analysis based on information provided by
primary data
3. Month 3: Report writing; Comments to be received from project guides;
Write final report for submission to AIMA