Service Sector in India

Service Sector in India today accounts for more than half of India's GDP. According to data for the financial year 2006-2007, the share of services, industry, and agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent respectively. The fact that the service sector now accounts for more than half the GDP marks a watershed in the evolution of the Indian economy and takes it closer to the fundamentals of a developed economy.

Services or the "tertiary sector" of the economy covers a wide gamut of activities like trading, banking & finance, infotainment, real estate, transportation, security, management & technical consultancy among several others. The various sectors that combine together to constitute service industry in India are:

Trade Hotels and Restaurants Railways Other Transport & Storage Communication (Post, Telecom) Banking Insurance Dwellings, Real Estate Business Services Public Administration; Defence Personal Services Community Services Other Services

There was marked acceleration in services sector growth in the eighties and nineties, especially in the nineties. While the share of services in India's GDP increased by 21 per cent points in the 50 years between 1950 and 2000, nearly 40 per

cent of that increase was concentrated in the nineties. While almost all service sectors participated in this boom, growth was fastest in communications, banking, hotels and restaurants, community services, trade and business services. One of the reasons for the sudden growth in the services sector in India in the nineties was the liberalisation in the regulatory framework that gave rise to innovation and higher exports from the services sector.

The boom in the services sector has been relatively "jobless". The rise in services share in GDP has not accompanied by proportionate increase in the sector's share of national employment. Some economists have also cautioned that service sector growth must be supported by proportionate growth of the industrial sector, otherwise the service sector grown will not be sustainable. In the current economic scenario it looks that the boom in the services sector is here to stay as India is fast emerging as global services hub.

Aviation Industry in India

Aviation Industry in India is one of the fastest growing aviation industries in the world. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full service airlines and low cost carriers. Private airlines account for around 75% share of the domestic aviation market. Earlier air travel was a privilege only a few could afford, but today air travel has become much cheaper and can be afforded by a large number of people.

The origin of Indian civil aviation industry can be traced back to 1912, when the first air flight between Karachi and Delhi was started by the Indian State Air Services in collaboration with the UK based Imperial Airways. It was an extension of London-Karachi flight of the Imperial Airways. In 1932, JRD Tata founded Tata Airline, the first Indian airline. At the time of independence, nine air transport companies were carrying both air cargo and passengers. These were Tata Airlines, Indian National Airways, Air service of India, Deccan Airways, Ambica Airways, Bharat Airways, Orient Airways and Mistry Airways. After partition Orient Airways shifted to Pakistan.

In early 1948, Government of India established a joint sector company, Air India International Ltd in collaboration with Air India (earlier Tata Airline) with a capital of Rs 2 crore and a fleet of three Lockheed constellation aircraft. The inaugural flight of Air India International Ltd took off on June 8, 1948 on the Mumbai-London air route. The Government nationalized nine airline companies vide the Air Corporations Act, 1953. Accordingly it established the Indian Airlines

Corporation (IAC) to cater to domestic air travel passengers and Air India International (AI) for international air travel passengers. The assets of the existing airline companies were transferred to these two corporations. This Act ensured that IAC and AI had a monopoly over the Indian skies. A third government-owned airline, Vayudoot, which provided feeder services between smaller cities, was merged with IAC in 1994. These government-owned airlines dominated Indian aviation industry till the mid-1990s.

In April 1990, the Government adopted open-sky policy and allowed air taxi- operators to operate flights from any airport, both on a charter and a non charter basis and to decide their own flight schedules, cargo and passenger fares. In 1994, the Indian Government, as part of its open sky policy, ended the monopoly of IA and AI in the air transport services by repealing the Air Corporations Act of 1953 and replacing it with the Air Corporations (Transfer of Undertaking and Repeal) Act, 1994. Private operators were allowed to provide air transport services. Foreign direct investment (FDI) of up to 49 percent equity stake and NRI (Non Resident Indian) investment of up to 100 percent equity stake were permitted through the automatic FDI route in the domestic air transport services sector. However, no foreign airline could directly or indirectly hold equity in a domestic airline company.

By 1995, several private airlines had ventured into the aviation business and accounted for more than 10 percent of the domestic air traffic. These included Jet Airways Sahara, NEPC Airlines, East West Airlines, ModiLuft Airlines, Jagsons Airlines, Continental Aviation, and Damania Airways. But only Jet Airways and Sahara managed to survive the competition. Meanwhile, Indian Airlines, which had dominated the Indian air travel industry, began to lose market share to Jet Airways and Sahara. Today, Indian

aviation industry is dominated by private airlines and these include low cost carriers such as Deccan Airlines, GoAir, SpiceJet etc, who have made air travel affordable.

Airline industry in India is plagued with several problems. These include high aviation turbine fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid fleet expansion, and intense price competition among the players. But one of the major challenges facing Indian aviation industry is infrastructure constraint. Airport infrastructure needs to be upgraded rapidly if Indian aviation industry has to continue its success story. Some steps have been taken in this direction. Two of India's largest airports-Mumbai and New Delhi-were privatized recently. Two greenfield airports are coming up at Bangalore and Hyderabad in southern India. Investments are pouring into almost all aspects of the industry, including aircraft maintenance, pilot training and air cargo services. The future prospects of Indian aviation sector look bright.

Kingfisher Airline is a private airline based in Bangalore, India. The airline is owned by Vijay Mallya of United Beverages Group. Kingfisher Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts. The airline currently operates on domestic routes. The destinations covered by Kingfisher Airlines are Bangalore, Mumbai, Delhi, Goa, Chennai, Hyderabad, Ahmedabad, Cochin, Guwahati, Kolkata, Pune, Agartala, Dibrugarh, Mangalore and Jaipur.

In a short span of time Kingfisher Airline has carved a niche for itself. The airline offers several unique services to its customers. These include: personal valet at the airport to assist in baggage handling and boarding, exclusive lounges with private space, accompanied with refreshments and music at the airport, audio and video on-demand, with extra-wide personalised screens in the aircraft, sleeperette seats with extendable footrests, and three-course gourmet cuisine.

Kingfisher Airlines currently operates with a brand new fleet of 8 Airbus A320 aircraft, 3 Airbus A319-100 aircraft and 4 ATR-72 aircraft. It was the first airline in India to operate with all new aircrafts. Kingfisher Airlines is also the first Indian airline to order the Airbus A380. It placed orders for 5 A380s, 5 A350-800 aircrafts and 5 Airbus A330-200 aircrafts in a deal valued at over $3 billion on June 15, 2005. Delivery of the A330s is due to start in late 2007, followed by the A380s in 2010 and the A350s in 2012.

 

ENTERTAINMENT

Kingfisher First puts on quite a show for your in-flight entertainment. Every seat is equipped with the world's most advanced personal in-flight entertainment system, which offers audio and video on demand, via extra-wide 8.4" LCD swivel wide-screens and noise-cancelling stereo headphones. Surf your way through Hollywood and Hindi blockbusters, and pick your favourite movie or best-loved scene. Tune into Fun TV, Kingfisher Radio, music videos & concerts, news, business, infotainment, sporting action, a moving map, and plenty more. Entertain yourself with our engaging video games. Or pit your skills against fellow guests in a virtual tournament with the multi-player gaming option.

World class in-flight service

It is always the little things that make a difference. Kingfisher First offers you a delightful range of thoughtful services on-board that no Business Class ever will. Exclusive Kingfisher First stationery in case you need to catch up on your correspondence. A wealth of national and international news, business & lifestyle magazines and newspapers, to stay in touch with the world below. An elegant executive restroom with premium toiletries to pamper you. For anything else you may require, our warm and thoroughly professional handpicked cabin crew is on call to anticipate your every need, and take care of your every whim.

Our Vision “The Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel experience to all our guests.”

Our Values

Safety This is our overriding value. In our line of business, there is no compromise.

Service We are all in the hospitality business; we must always seek to serve our guests and gain their trust, goodwill and loyalty.

Happiness We seek to build an organisation with people who choose to be happy, and will endeavour to influence our guests and co-workers to be happy too.

Teamwork We will succeed or fail as a team. Each one of us must respect our colleagues regardless of their rank, and we must work together to ensure our mutual success.

Accountability Each one of us will be held accountable for the successful execution of our duties, commitments and obligations, and we will strive to lead by example.

8 P’S OF KINGFISHER AIRLINES

product

Kingfisher Airlines, India's fastest growing airline and the first Indian carrier to offer Full Service at True value, including a personalized in-flight entertainment system on every seat on domestic routes, today added yet another feather in its cap with the announcement that it has been bestowed the 2006 Award for 'Service Excellence for a New airline' by Skytrax, a UK based specialist global air transport advisor.

The SKYTRAX AWARDS for AIRLINE EXCELLENCE provide the most prestigious recognition of outstanding Quality Excellence for product and customer service delivery across today's global airline industry. A true mark of airline Quality Achievement, the SKYTRAX AWARDS are the result of the most comprehensive analysis of product and service standards.

we quantify that quality of product and service levels are at their best - and are consistent. These independent Awards honour outstanding Product and Service Excellence for across the air travel experience. These awards are based on 'real' Quality standards - in other words, the actual quality of product and service being delivered, every hour of every day, to an airline's customers.

It is this level of Quality consistency which is our primary objective in the Awards programme. Not the glossy photos or temptations that may be portrayed by an airline marketing campaign, but the front-line service realities."

"Aside from the fascinating description of their aircraft fleet as "Funliners", Kingfisher Airlines has developed and implemented a new and higher level of customer service across much of the Indian subcontinent", Skytrax carries out the 'world's largest airline passenger survey' that covers areas of the airline industry that provide the passenger with an above average standard for innovation, quality, product and service achievement. Free of outside or financial influences, it is the only airline survey that achieves a truly worldwide audience - comprising more than 94 different respondent nationalities in 2005. Assessment for Awards applies a detailed Product and Service agenda - covering up to 800 different rating items.

Kingfisher Airlines currently operates 70 flights a day. In keeping with its growth plans, Kingfisher Airlines recently placed a fresh order for 15 additional ATR 72-500 aircraft in a deal valued at US$270 million. Kingfisher Airlines is also the first Indian carrier to have placed an order for five Airbus super jumbo A380s, five A350s and five A330s. The deliveries of A330s are expected to begin in 2007 while the A380s and A350s arrive in 2010 and 2012 respectively.

place:

Termed as the “first full frills - true value carrier”, Kingfisher Airlines was the first carrier to introduce first-class premium cabins onboard its flights. It started with just four flights daily and now, it offers 108 flights daily connecting 17 key Indian destinations and has won several prestigious awards.

Price:

'Kingfisher Airlines will fly at janata fares'

The airline will offer one single Kingfisher Class for all. There'll be no business class. The front and the back rows will be treated royally, in the same way, but charged janata fares.

All the seats will have individual TV sets. You have noticed that companies are encouraging their executives to travel in the economy class. Everybody from Azim Premji downwards

at Wipro travels economy. My fares will be 25 per cent lower than Jet Airways.

Promotion:

Vijay mallya is the brand ambassador and he has done many promotional activity like sponsoring tennis open;formula1; cricket;& his own kingfisher calendar. Kingfisher Airlines is an official sponsor of the Panasonic Toyota F1 Team.Kingfisher Airlines has entered a 2 year agreement to be a sponsor of Toyota F1 beginning in 2007. The "Fly Kingfisher" logo appears on the sides of the Toyota F1 Car and on the driver's overalls and helmet

Process:

Job Description:

Defining and documenting Service Delivery Processes

Analysis of data, creation of MIS Reports and working on Process Improvements and driving Corrective Actions

Facilitate Service Excellence by enhancing and streamlining Service Delivery Processes through initiative such as - Process Blueprinting/Quality Certifications, including monitoring of Process Metrics

Conducting Process Audits (ISO internal Audits)and ensuring that the Quality Management Systems are being implemented consistently and effectively in a Service Environment

Support business and functional teams to achieve respective Quality Objectives.

Desired Profile:

Certified ISO 9001 Internal Auditor (essential) / Six Sigma Green Belt/ COPC Internal Auditor.

MBA desirable with 4-5 Yrs exp in business process mapping, documentation, process compliance audits

* Exposure to Six Sigma/ ISO Deployment

* Knowledge of quality tools/Minitab etc.

Excellent communication skills.

Good in process documentation & Process improvement skills.

Experience in implementation of Six Sigma projects.

High levels of energy to drive initiatives.

Matured in handling people.

Data Driven

People:

A proper dress code is maintain. people are properly trained so that they give good hospility to their customers.

Physical evidence:

Kingfisher airlines have high profile standards like their seats;hospility;Lcd screen to personal seat; comfort level.

The airline was established in June 2004 . On 9 June 2005 GoAir announced that it intended to launch operations in October 2005 with a fleet of 20 leased Airbus A320 aircraft. Initial flights would be in the southern and western areas of India with the first nine A320s, the remaining 11 aircraft being added in the second year. At the time the airline was in discussion with both Airbus and Boeing on the purchase of between 20 and 40 new aircraft, with a contract to be in place by the end of 2005 and with deliveries to start by 2007 . It started operations on 4 November 2005.[1] An order for 10 aircraft from the Airbus A320 family (with options for 10 more) was announced in July 2006.[2] GoAir announced in mid-January 2007 that it plans to sell a large minority ownership position to assist it with funds for continued expansion as well as to improve chances for the sale and leaseback of additional A320 aircraft.[citation needed]

Go Air is wholly owned by the Wadia Group[1], Mumbai based and majority owners of Bombay Dyeing and Britannia Industries. On 18 January 2007, GoAir Chairman Nusli Wadia was found to be carrying a revolver and bullets aboard an Air India flight to Dubai. Though undetected by baggage screeners upon departure, they were detected and confiscated upon his arrival at Dubai.[3]

GoAir and airline reservations system provider Radixx International of Orlando, Florida on January 24, 2007, jointly

announced that Radixx had taken over all reservations and passenger management functions from GoAir's previous vendor. It is the first time that a non-Indian technology company is providing a critical operational function as a third-party provider to an Indian airline

Company Mission and Philosophy

One-Two-Go Airlines’ Mission

Our mission is to operate an airline business based on the principle of “Service with a Thai heart” This means that we always remember our Thai heritage and will apply it across our business and services.

One-Two-Go Airlines’ Philosophy

Our philosophy incorporates the above mission intothese four principles:

- Affordable airfares - Service with a heart - Convenience for customers - Ethical and fair business practices and services

The Service

GoAir - The People's Airline will provide our passengers experienced service with a smile. Our management team has been selected from the best in the industry to ensure that we provide our passengers with Quality Service. Being a low fare carrier, we will never compromise on safety or security. This ensures our passengers that they are in safe hands and can fly hassle-free. The GoAir team is not just professionally inclined but has been personally groomed to provide the best service. Our Pilots, Cabin Crew, Technical and Maintenance Staff have been carefully taken on keeping the industry standards in mind, thereby ensuring superior quality in all our services

8 P’S OF GO AIR

product:

GoAir Airlines Director, is looking at 'commoditising air travel' by offering airline seats at marginally higher train prices to all cities in India. The airlines theme line is “Experience The Difference” and its objective is to offer its passengers a quality consistent, quality assured and time efficient product through affordable fares. GoAir's business model has been created on the 'punctuality, affordability and convenience' model.

Place:

GoAir's route network spans prominent business and leisure destinations, across India. Currently it covers 13 destinations. These are Ahmedabad, Bangalore, Chennai, Cochin, Coimbatore, Delhi, Goa, Hyderabad, Jaipur, Jammu, Mumbai, Pune, and Srinagar. Go Air operates with state-of-the-art Airbus A320 aircraft fleet.

Promotion:

GoAir Airlines is a low-cost budget airline based in Mumbai, India. The airline is promoted by Wadia Group, which has been synonymous with leading Indian companies, through its brands Britannia and Bombay Dyeing. Go Air Airlines has been showcased as “The People's Airline” and is the

brainchild of Jeh Wadia, who is the Managing Director of GoAir Airways.

" price"

     

  We take pride in our simple fares that are easy on your pocket and easy to fly with. One-Two-GO Airlines offers everyday low, flat fares. So say good bye to fares-hunting and snatching, and hello to our everyday low fares-without the hassle.

PEOPLE:

Management Team Jeh Wadia, Managing Director - GoAir Jeh Wadia, MD, GoAir is a multi-faceted individual who dons varied responsibilities.an example is GoAir a low fare airline in India, started operations in October 2005. The strategic investments have been in the financial services, retail and real estate arena.

His tremendous drive and enthusiasm coupled with an innovative approach to doing business has resulted in the creation of successful companies providing considerable shareholder value.

G.P. Gupta, Chief Financial Officer G.P. Gupta, a young and energetic Fellow Member of the Institute of Chartered Accounts of India, brings with him excellent insights and proven track record in Finance function across various facets like Accounting, Banking, Leasing, Treasury and Taxation with large international companies. He has held responsible and challenging assignments in highly competitive environments across various industrial sectors including Aviation Babu Peter, Executive Vice-President - Engineering Babu Peter (EVP – Engineering), a first class Engineering Graduate has 35 years of aviation exposure in Air India and Indian Airlines. Prior to being Functional Director, Indian Airlines, he was Director, Engineering in Air India. He has served the National carrier in Various Capacities during his long and successful tenure with them and was instrumental in improving punctuality, quality of the fleet and made significant changes in Jet Engine Overhaul Complex to improve engine production.

Babu Peter has over the years held many responsible and prestigious positions in various forums. He represented Air India in the IATA Engineering and Maintenance committee, was Theme Leader for European Union India Civil Aviation Project appointed by Ministry of Civil Aviation, Fellow and Vice President of Aeronautical Society of India and Council Member of Society of Aerospace technology and Industry.

Capt. V. K. Sharma, Vice-President - Flight Operations (Chief of Operations)

He is one of the most experienced and known personality in the aviation industry. With total flying experience of approximately 15000 hours and instructional experience on aircraft and simulator about 4000 hours, he has held various positions both in public sector and the private airlines. Fleet Captain - Boeing 737 - Indian Airlines. Fleet Captain - Boeing 737 - Indian Airlines. Chief of Operations / Technical Advisor to CEO - Air Sahara. Chief of Operations / Technical Advisor to CEO - Air Sahara.

Member of Committees:Licensing committee for Pilots, Flight Engineers, Flight Navigators and Flight Despatchers. Control Tower committee of Mumbai, Chennai and Delhi. Committee on Flight Operations/Standardisation and Training norms.

His Organisational Capabilities:Organised an international conference of FAI in Delhi. Delegates from 73 countries attend this aviation conference including Mr. Neil Armstrong. Organised an Air Race from Paris to Peking under aegis of Aero Club of India. Total Aviation Management experience of 27 years. Raju Srinivasan, Vice-President - Planning Wing Commander Raju Srinivasan, VM, IAF (Retd.) is the Vice President (Planning) of GoAir. Raju has over 25 years of experience in military and civil aviation. A former military pilot and qualified flying instructor, he has nearly 5000 hours of flying experience in varied terrain and operating conditions. He has served as a pilot in the prestigious VVIP Squadron of the Indian Air Force. He is the recipient of a Presidential gallantry award on 26th January 1996 for his role in flying operations on the

Siachen Glacier. Raju was a member of the core team that set up Air Deccan in 2003. As its first Chief Business Coordinator, he oversaw the start-up activities of the airline across all departments and functions. A post-graduate in Business Administration, Raju is a M.Sc., M.Phil. from Madras University and a Life Member of the Aeronautical Society of India and the Rotary Wing Society of India. Neeraj Kapoor, Vice President - Marketing Neeraj Kapoor is a highly vibrant and enthusiastic Marketing professional with a MBA in Marketing from a premiere Indian Management institute.

Ashish Kapadia, Vice-President - Business Development Ashish has been an entrepreneur for most part of his career., which are spread across a wide spectrum of industries, will bring great value to GoAir.

Group Captain AK Sachdev, General Manager Flight Safety Group Captain AK Sachdev has more than three decades of aviation and Flight Safety experience with the IAF. He is an alumnus of the National Defence Academy, the Air Force Academy, the College of Air Warfare and the Royal Air Force Staff College (UK). He has flown fixed wing (including twin jets) and helicopters and has worked as Chief Operations Officer in two busy nodal transport bases of the IAF. He has also commanded an Air Force Station, a combat squadron, and an independent helicopter detachment as part of the IPKF in Sri Lanka. He holds an MBA in HRM, an MPhil, an MSc and an MA.

He has published two books and several articles in professional journals on aviation related subjects.

. Lalitha Deshpande , VP- HR & Training Lalitha has rich and proven track record spanning around 30 years in the field of HR and Training. She has done her Business Management from IIM – Bangalore, besides graduating in B.Sc and B.Ed.

She has worked in organizations like Thermax, Smithkline, Reckitt & Coleman, Maruti Udyog, National Thermal Power Corp, Inter Globe Enterprises among others. Senthil Kumar, VP - Customer Service Senthil Kumar has done his Masters in Tourism Management and Post graduate diploma in Computer applications. He is a fast track growth professional with an airline industry experience of over 14 years. He leads the functions such as Customer service, call center, airport services, and in-flight services.

PHYSICAL EVDIENCE:

THE Service which they provide and the facilities available in the plane the comfortbality level given to their customer.

Jet Airways was incorporated as an "air taxi" operator on 1 April 1992. It started commercial airline operations on 5 May 1993 with a fleet of 4 Boeing 737-300 aircraft. In January 1994 a change in the law enabled Jet Airways to apply for scheduled airline status, which was granted on 4 January 1995. It began international operations to Sri Lanka in March 2004. Plans to acquire rival Air Sahara, announced in January 2006, after some rough patches deal got through. The airline is owned by Tailwinds (owned by Naresh Goyal) (80%) and public shares (20%) and has 10,017 employees (at March 2007).[1]

Naresh Goyal, who already owned Jetair (Private) Limited (which provided sales and marketing for foreign airlines in India) set up Jet Airways as a full-service scheduled airline that would give competition to state-owned Indian Airlines. Indian Airlines had enjoyed a monopoly in the domestic market between 1953, when all major Indian air transport providers were nationalised under the Air Corporations Act (1953), and January 1994, when the Air Corporations Act was repealed, following which Jet Airways received scheduled airline status. [citation needed]

Jet Airways and Air Sahara were the only private airlines to survive the Indian business downturn of the early 1990s. In January 2006, Jet Airways announced that it would buy Air Sahara making it the biggest takeover in Indian aviation history. The resulting airline would have been the country's largest[3] but the deal fell through in June 2006. However, a modified deal did go through eventually in January 2007.

Lower wages in India compared with the West are not the only explanation for Jet Airways' relatively low cost base by international standards. The company has also been able to lower its costs by "sweating its assets", i.e. getting the maximum utilisation out of its aircraft fleet by minimising turnaround times between flights, similar to the leading European/North American low-cost, "no frills" carriers. This has partly helped it to offset the high costs of the airport infrastructure as well as jet fuel in India, which are higher in India than the international average.

Brand ownership:

Jet Airways does not own its brand. The brand is owned by Jetair Enterprises Ltd., a separate company substantially owned by Naresh Goyal, which licenses the brand to the airline in return for an annual payment. This arrangement is very similar to the terms governing the use of the "easy" brand by the easyJet Airline Company Limited (the name under which easyJet has been incorporated). Under the aforesaid arrangement, Sir Stelios Haji-Ioannou, the founder and largest individual shareholder of easyJet Airline Co. Ltd. has sole ownership of the "easy" brand and licenses it to that airline for a specified payment. This kind of arrangement is of vital importance should the concerned airlines become the subject of a hostile takeover bid because the bidder[s] will not automatically acquire ownership of their takeover target's brand and without access to the brand the takeover target will be less valuable.

Place:

The airline operates over 340 flights daily across 44 destinations within India and also operates flights to Nepal, Sri Lanka, Singapore, Malaysia, United Kingdom, Thailand, Belgium, United States of America & Canada on one of the youngest and best maintained fleets. Jet Airways plans to extend its international operations further in North America, Europe, Africa & Asia in the coming years with the induction of wide-body aircraft into its fleet.

JET AIRWAYS