Asian-Anubhav Singh

Asian Journal of
Multidisciplinary Studies
ISSN: 2321-8819 (Online)
2348-7186 (Print)
Impact Factor: 1.498
Vol.4, Issue 6, May 2016
Available online at www.ajms.co.in 236
Future of Indian Air Travel Industry: Relation of Growth and Consumer Satisfaction
(A Study Limited with Lucknow, Uttar Pradesh, India)
Anubhav Singh
Junior Research Fellow, Faculty of Commerce,
Department of Applied Economics
University of Lucknow, Lucknow, Uttar Pradesh, India-226001
Assistant Professor, School of Business,
Lovely Professional University, Delhi-Jalandhar NH-1,
Phagwara, Punjab, India-144411
ABSTRACT: While Talking about Airlines Industry first thing comes in mind that delivering high quality
service to passengers is important so that airlines can survive and strengthen their competitiveness. Service
quality conditions influence an airline’s competitive advantage, and with it come market share, and
ultimately profitability (Mirash & Toment, 2007). Since, service quality is an important factor in customer
satisfaction; this study is basically conducted in Lucknow, India so that the level of satisfaction can be
described allowing an airline and airport management to fully recognize the deficiencies of their service
quality. The research method consisted of a survey regarding satisfaction with both airline and
airportservices. A structured questionnaire was developed using the questionnaire as benchmark.
The questionnaire was personally administered to the target population of domestic and International air
travellers From Lucknow. I have used stratified sampling procedure for this research. Each stratum
represents different levels of air service availability within the different group because of geographical
distance from the capital. A total of 100 questionnaire were distributed, 23 questionnaire per stratum, of
which were returned. Therefore, the final research sample consisted of 77 participants. After finding the
Results its show that, irrespective of Domestic Traveler , customer satisfaction is poor. This indicates that
International air service quality does not match the expectations of customers just because of less no of
International Airlines and Less no of connections of Domestic flight with International flight.
Keywords- Airlines, Airports, Customer Satisfaction, Customer Services, Future growth, Product Service
Quality etc.
INTRODUCTION
Air travel industry has been in the news frequently
for a number of reasons. There have been talks
about the feasibility of low-cost carriers with the
present marketing strategies that they employ. On
the other hand, the future of major airlines
worldwide is seen in danger by a number of
analysts, researchers, media personnel, and so on.
With all this, customer satisfaction and changing
attitude is yet another area that catches the common
eye for solid reasons.
Researchers and commentators of American
business area sometimes raged by the
dissatisfaction with which American business treats
the customers. In this regard, Maier states that
“Keeping the customer satisfied no longer is the
mantra of American businesses, as studies show a
steady decline in customer satisfaction that is
projected to continue” However, on the other hand,
low-cost carriers in India have mushroomed in both
the markets because of their effective marketing
strategies. However, it must be noted that major
airlines’ as well as low-cost carriers’ future is
unpredictable and many see both of them in danger
because of increasing oil prices ,government taxes
,increased in duties and all Overall, the growth
chances for low-cost carriers are much higher in
both India .i would more concentrate and will have
ask the question to the Air-India because it’s Local
Airlines of Government of India. It is the major
airlines from both the settings that are seen to be
facing critical challenges in the recent future. For
which supply and demand is one single area that
must be taken into serious consideration by these
airlines because it is this area that has been
historically overlooked by major airlines. Third
largest aviation market by 2020 By 2020,
passenger traffic at Indian airports is expected to
increase to 421 million from 106.45 million in
2016* The travel & tourism industry is forecast to
grow 12.79 per cent to USD475.43 billion in 2025
from USD142.65 billion in 2015 Spending on
business travel is estimated to increase to
USD36.53 billion in 2025 from USD19.34 billion
in 2015, while that on leisure travel is forecast to
rise to USD192.83 billion in 2025 from USD97.20
billion in 2015
About the Industry
Aviation plays an essential role in economic
progress of a nation as it is viewed as a necessary
link not only for international voyage and trade but
also for providing connectivity to different parts of
the country. It is a one of the vital part of the
infrastructure of the country and has outcome for

Future of Indian Air Travel Industry: Relation of Growth and Consumer Satisfaction (A Study Limited with Lucknow, Uttar Pradesh, India)
Asian Journal of Multidisciplinary Studies, 4(6) May, 2016 237
the development of tourism and trade, the opening
up of inaccessible areas of the country and for
providing stimulus to business activity and
economic growth.
History
The first commercial flight in India was made
on February 18, 1911, when a French pilot
Monseigneur Piguet flew airmails
from Allahabad to Naini, covering a distance of
about 10 km in as many minutes.
Tata Services became Tata Airlines and then Air-
India and spread its wings as Air-India
International. The domestic aviation scene,
however, was chaotic. When the American Tenth
Air Force in India disposed of its planes at
throwaway prices, 11 domestic airlines sprang up,
scrambling for traffic that could sustain only two or
three. In 1953, the government nationalized the
airlines, merged them, and created Indian Airlines.
For the next 25 years JRD Tata remained the
chairman of Air-India and a director on the board
of Indian Airlines. After JRD left, voracious unions
mushroomed, spawned on the pork barrel jobs
created by politicians. In 1999, A-I had 700
employees per plane; today it has 474 whereas
other airlines have 350.
For many years in India air travel was perceived to
be an elitist activity. This view arose from the
“Maharajah” syndrome where, due to the
prohibitive cost of air travel, the only people who
could afford it were the rich and powerful.
In recent years, however, this image
of Civil Aviation has undergone a change
and aviation is now viewed in a different light - as
an essential link not only for international travel
and trade but also for providing connectivity to
different parts of the country. Aviation is, by its
very nature, a critical part of the infrastructure of
the country and has important ramifications for the
development of tourism and trade, the opening up
of inaccessible areas of the country and for
providing stimulus to business activity and
economic growth.
Issues of the concern
 With the rise in the number of airlines and
growing passenger there is a need for
Indian airports to have their infrastructure
in place, which unfortunately at present is
the weakest link in the chain.
 Mounting losses of the airlines
 The new Ground Handling policy
 High Aviation Turbine Fuel (ATF) prices
 High airport charges
 Shortage of qualified pilots and technical
manpower
 Safety and security issues
 Closure of old airports
 Congestion at airports
 High taxation etc.
Aviation on path of game changer move
 Civil Aviation ministry is considering the
recommendation of the Department of
Industrial Policy & Promotion (DIPP) to allow
foreign carriers to pick up stake in domestic
airlines. It will communicate the decision to
the DIPP shortly. The DIPP will then prepare a
draft note with the inputs from the Aviation
Ministry. After that it will go to the Cabinet
and its approval. It will be implemented once
Cabinet approves it. Airlines have been
lobbying with the government for almost two
years now to get foreign investment in the
ailing sector that collectively reported losses of
around Rs 10,000 crore in FY11.
 Currently, foreign direct investment (FDI) is not
allowed in airlines but carriers which have
been posting losses in the past few financial
quarters have been looking at foreign investors
for a turnaround. In volatile market condition it
is very difficult for airlines to raise money,
hence if international carriers are allowed to
invest in Indian airlines; it will help to improve
operating and financial position. Civil Aviation
Ministry is expected to give its nod for up to
24% foreign direct investment (FDI) in
domestic carriers. As per current aviation
norms, FDI in aviation is allowed up to 24%,
but it is for companies, other than airline
companies. This hasn’t helped much because
nobody wants to invest in a sector that has
been bleeding and posting losses. So, this will
be a big game changer for the entire Indian
aviation space. This move will particularly aid
Indian carriers who are cash trap and will be
very happy to generate funds by equity stake
sale. Currently banks are quite reluctant to give
loans to airlines. Even oil marketing
companies are not too keen to give supply fuel
on credit.
LITERATURE REVIEW
“Air Transportation refers to a facility
consisting of the means and equipment
necessary for the movement of passengers or
goods” (Carlex, 2011).
During the ratification of the Chicago
Convention in December 1944, a prediction on
the future development of International Civil
Aviation was highlighted. It put forward the
view that the aviation industry can greatly
contribute to the stabilizing of relationships
and understanding among nations and people
globally. After 60 years this vision is now
patently evident with air transport being

accepted as a crucial part of society globally,
as necessary to our daily lives as medicine and
telecommunications, and essential for growth
and economic affluence (Colloway, 2002).
With the growing availability of affordable air
travel it has allowed the expansion of
aviation’s role in sustaining social progression
throughout remote communities as well as
internationally. Air travel is now no longer
regarded as a luxury commodity but rather a
contributor to social and economic benefits.
Air transport has given societies the
opportunity to develop their economies by
enhancing their capability for trade and
tourism which in turn contributes to the
creation of substantial benefits.
Haywood-Farmer, J. (1988), It is obvious
that customers are important stakeholders in
organizations and their satisfaction is a priority
to management. Customer satisfaction has
been a subject of great interest to organizations
and researchers alike. In recent years,
organizations are obliged to render more
services in addition to their offers. The quality
of service has become an aspect of customer
satisfaction. It has been proven by some
researchers that service quality is related to
customer satisfaction. Others used service
quality dimensions to evaluate service quality
Cronin, J. J., & Taylor, S. A. (1992), the
constructs of service quality, satisfaction and
value are discussed. Instruments are identified
and exploratory research is undertaken among
customers of an audit firm to determine
whether value plays a moderating role between
service quality and satisfaction. Results from a
moderated regression confirming such a role
for value are reported. Implications are drawn
and opportunities for further research are
highlighted.
Wicks, A. M., & Roethlein, C. J. (2009),
Service quality and customer satisfaction are
very important concepts that companies must
understand in order to remain competitive in
business and hence grow. It is very important
for companies to know how to measure these
constructs from the consumers’ perspective in
order to better understand their needs and
hence satisfy them. Service quality is
considered very important because it leads to
higher customer satisfaction, profitability,
reduced cost, customer loyalty and retention.
Research Questions
Are customers satisfied with the quality of the
service delivery of air service from Lucknow
Airport?
The study seeks to assess and analyse customer
satisfaction with the quality of service delivery of
the air service From Lucknow. Additionally, it will
compare the level of satisfaction. The study will
seek to answer the following specific research
questions:
1. How can customer satisfaction with the quality
of service delivery be measured in a domestic
airline and local airports from Lucknow?
2. What is the impact of service quality on
customer satisfaction?
Dimensions of research concepts
Dimension of customer satisfaction
Extensive studies on customer satisfaction have led
to the development of many models which explain
the components of customer satisfaction. Some
authors perceived satisfaction as an overall
component while others conceptualize satisfaction
as a product of customers’ comparison of the
perceived performance of the product/service with
some cognitive or affective standards such as
desire, expectation, perceived value or perceived
service quality (Cliver, 1980; Suman, et at..)
Dimensions for airline service quality
Check-in process Cabin staff performance
Waiting time Communication skills
Check-in efficiency Grooming and appearance of staff
Staff enthusiasm and attitudes Cabin service efficiency
Problem solving Cabin presence throughout flight
Staff grooming appearance Friendliness of staff
Staff interaction with passengers
Staff enthusiasm and attitudes
Boarding Procedures
Boarding system efficiency
Assistance during boarding Standards of performance
Boarding priority
On-board product
Overall airline performance Flight schedules
Seating comfort Airfares
Cleanliness of cabin Booking system
Value for money Product and service information

Total product consistency Communication skills
Customer service
Destination service
Staff assistance
Bag delivery time
DIMENSIONS FOR AIRPORT SERVICE QUALITY
Availability of public transportation
Staff friendliness
Easy access of public transportation
Communication skills
Terminal comfort
Toilet cleanliness
Terminal cleanliness
Smoking regulation
Seat facilities
Baggage delivery time
Check-in facilities
Airport accessibility
Terminal signage
Courtesy
Boarding call
RESEARCH METHODOLOGY
Research Strategy
I have used various techniques for search of a thorough study, valid theoretical and practical conclusions and
considered appropriate for collecting primary and secondary data were used. The secondary data was collected
through a theoretical study (Dryman & Nell, 2011). The theoretical study comprised books, articles and journals
which are related to the field under study - in this case – customer satisfaction and service quality. On the other
hand, primary data was collected through an empirical study. The empirical study was made through the
employment of a questionnaire regarding customer satisfaction on the quality of service offered by a domestic
airline and local airports within Lucknow.
Target Audience
The population of the current survey was comprised of those who have actually experienced the services offered
by a domestic airline and International Airlines from Lucknow.
Research Design
Descriptive and exploratory
Sample Size
100
Sample Technique
Convenience Sampling
Statistics of airline service quality
Dimensions Variables Mean Std.deviation Min Max
Check-in
process
Waiting time 3.77 2.46 1 5
Check-in
efficiency
4.15 1.45 1 5
Staff
enthusiasm and
attitudes
2.19 1.47 1 5
Boarding
procedures
Boarding
system
efficiency
3.06 1.23 1 5
Assistance
during boarding
2.06 2.12 1 5

Dimensions Variables Mean Std.deviation Min Max
Cabin staff
performance
Communication
skill
1.06 2.12 1 5
Grooming and
appearance of
staff
1.75 2.08 1 5
Cabin service
efficiency
1.42 2.19 1 5
Standards of
performance
1.4 -1.06 1 5
On-board
products
Seating comfort 3.94 2.47 1 5
Cleanliness of
cabin
1.95 2 1 5
Value of money 1.3 2.15 1 5
Overall
airline
performance
Flight’s
schedules
2.44 1.44 1 5
Airfares 1.36 1.36 1 5
Booking system 2.05 1.35 1 5
Product and
service
information
1.05 1.42 1 5
Statistics for airport service quality variable
Variables Mean
Std.
deviation
Min Max
Availability of public transportation 2.37 1.94 1 5
Easy access of public transportation 2.22 1.87 1 5
Terminal comfort 2.05 1.02 1 5
Terminal cleanliness 2.88 1.99 1 5
Seat facilities 1.79 0.89 1 5
Check-in facilities 1.45 0.84 1 5
Terminal signage 1.79 0.89 1 5
Baggage delivery time 3.72 2.11 1 5
Airport accessibility 1.02 0.76 1 5
Boarding call 1.99 0.74 1 5
Table 6.5: Correlation Analysis on airline dimensions
Check-in Boarding Cabin staff On-board
process procedures performance product service
Boarding
Procedures 0.656
Cabin staff
Performance 0.639 0.485
On-board
Product 0.696 0.669 0.723
Destination
Service 0.520 0.583 0.536 0.531
Overall airline
Performance 0.628 0.478 0.607 0.538
Note: Correlation is significant at 0.01 level (2 tailed-test) for all variables presented in the table

DISCUSSION
As earlier I have indicated in our description of the
sample chapter, out of the total respondents of 100,
37 were females and 63 were males indicating a
fairly balanced gender distribution. Most of them
(100) were within the age group of 21 to 45. From
our demographic information, it is evident that our
sample is quite young, employed and frequently
travels for the purpose of business and holidaying.
This could mean that our results may be more
applicable for this part of the population.
CONCLUSIONS AND IMPLICATIONS
As per the research the service dimensions for
airline and airports investigated in this study
received negative responses by the respondents as
factors that influenced their level of satisfaction
with air service from Lucknow Airport just because
of lacking of Infrastructure. The most dissatisfying
dimension or airline service quality (by mean
score) was on-board products, followed by overall
airline performance, check-in process and
destination; service appeared next, then cabin staff
performance, and boarding procedure is the least
dissatisfied dimension. As New Terminal of
Lucknow Airport started few year back so still a
lots of improvements are required. These results
may lead to suggestions for airline management
and policy-makers to consider how they might
improve customer retention in today’s competitive
air transportation environment. Results of this
analysis have also shown that comparison between
groups indicated different levels of satisfaction. In
addition, there is no significant association in
satisfaction level between gender groups. In this
regard, efforts and resources should be focused on
improving those dimensions which are found to be
most dissatisfying and would be detrimental to the
long term viability of air transport in Lucknow.
This means that a more concerted effort by
management and intensive strategies must be
geared towards improving those services for which
passengers are least satisfied.
The results of this study suggest that marketing
managers of respective Airlines should survey their
customers and work to reduce dissatisfaction on all
components of satisfaction.
Recommendations for Further Research
This study mainly assessed and analysed customer
satisfaction on the service quality of air service
within Lucknow specifically on only 01 Airport
and 8 airlines passengers only. It is, therefore,
recommended that future research should focus on
the following;
1. Include more Airport in order to get a more
general feedback on the satisfaction level of air
service quality of Domestic and International
Passengers
2. Develop and verify a model of customer
satisfaction for air service Lucknow
3. A larger sample size encompassing all
demographic categories can be improve result of
the study
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