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    ECONOMETRICS REPORT

    A comparative analysis of services provided by the airline industry

    in India (kingfisher vs. jet airways)

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    Reading seminar report on comparative study between jet airways

    and kingfisher on the basis of their services provided

    VS

    Submitted to:- submitted by:-

    MR. Sunil Kumar Amber chourasia

    MBA Energy Trading [2nd sem]

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    LETTER OF TRANSMITTAL

    This report has been under taken for assessment in Econometrics during pursuing the MBA degree at

    UPES, Dehradun.

    This report was executed in 2nd sem. under the supervision of Mr. Sunil Kumar

    Further, I Amber Chourasia, Student of MBA ET 2nd Sem. Hereby declare that this report is my original

    work and the analysis and findings are for academic purpose only. This report has not been presented in

    any seminar or submitted elsewhere for the assessment or for the award of any diploma or degree.

    First of all I would like to thank Mr. Sunil Kumar, my Econometrics lecturer, for giving me the

    opportunity to do the report on A comparative analysis of services provided by the

    airline industry in India.

    I would like to thanks all my friends and many website that helped me to collect my information for this

    report.

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    CONTAIN:-

    EXECUTIVE SUMMARY

    CURRENT SCENARIO OF INDIAN AVIATION INDUSTRY

    MAJOR PLAYER IN INDIA

    OBJECTIVE

    SECONDARY OBJECTIVE

    DATA

    RESEARCH DESIGN

    SAMPLE DESIGN

    COMPANY PROFILE-

    JET AIRWAYS

    KINGFISHER

    STRENGTH AND WEAKNESS

    PRIMARY DATA ANALYSIS

    ANNEXURE I

    REGRESSION ANALYSIS

    ANNEXURE II

    QUESTIONNAIRE

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    Executive summary:-

    The aim of the project is to comparatively analyze the services provided by jet airways and

    kingfisher to its customers in the industry. An exploratory research has been done for the purpose

    of critically evaluating the various aspects of customer relationship.

    The required data has been gathered by a comparative questionnaire based on the

    services such as reservation on ticket, delay of flight and baggage handling and about the meal

    provided in the aircraft, it is filled by people who have their own experience. Besides that that

    various books, magazines and websites are also consulted.

    Current scenario of Indian aviation industry:-

    Current Scenario of Indian Aviation Industry The Indian aviation industry is one of the fastest

    growing aviation industries in the world. India has 454 airports and airstrips; of these, 16 are

    designated international airports. 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 per cent share of thedomestic aviation market.

    There has been phenomenal growth in the Indian aviation sector in 2007-08. India has jumped to

    9th position in world's aviation market from 12th in 2006 As per the Ministry of Civil Aviation,

    the airline business is growing at 27 per cent per annum in India. During 2007, the domestic

    airline passenger traffic has shown a growth of 32.51 per cent. Further, the scheduled domestic

    air services are now available from 82 airports as against 75 in 2006.

    Market Size Domestic and international traffic is up 45 per cent and 15.1 per cent, respectively.

    Between May 2007 and May 2008, airlines have carried 25.5 million domestic and 22.4 million

    international passengers. over 135 aircraft have been added in the past two years alone. Centre

    for Asia Pacific Aviation (CAPA) estimates domestic traffic to grow 25-30 per cent annually and

    international traffic 15 per cent until 2010.

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    Air Traffic Domestic air traffic is likely to more than double and touch 86.1 million passengersby 2010, up from 32.2 million passengers in 2007, states the market research firm PhoCus.According to data compiled by the Airports Authority of India (AAI), 24.62 million people flewon international routes to and from India during April-January 2007-08. This was a growth of16.2 per cent over the same period last fiscal. The growth of domestic air passengers was at an

    even faster rate of 26.1 per cent, with 72.60 million people availing aircraft services.Simultaneously, freight traffic on both domestic and international routes increased by a healthy8.2 per cent and 12.6 per cent, respectively.

    Airport Infrastructure :

    Airport Infrastructure Of the 454 airports and airstrips in India,16 are designated internationalairports. Currently 97 airports are owned and operated by the Airports Authority of India (AAI).India's Civil Aviation Ministry aims at 500 operational airports in the next 12 years, as per areport by Centre for Asia Pacific Aviation (CAPA). The government aims to attract private

    investment in aviation infrastructure. Mumbai and Delhi airports have already been privatizedand are being upgraded at an estimated investment of US$ 4 billion over 2006-16. A Greenfieldairport is already operational at Bangalore and Hyderabad. These are built by private consortia ata total investment of over US$ 800 million. A second Greenfield airport being planned at NaviMumbai is going to be developed using public-private partnership (PPP) mode at an estimatedcost of US$ 2.5 billion.

    35 other city airports are proposed to be upgraded. The city side development will be undertakenthrough PPP mode where an investment of US$ 357 million is being considered over the next 3years. Over the next five years, AAI has planned a massive investment of US$ 3.07 billion - 43per cent of which will be for the three metro airports in Kolkata, Chennai and Trivandrum, andthe rest will go into upgrading other non-metro airports and modernizing the existingaeronautical facilities.

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    Objective:-

    To study the customer satisfaction level for various services provided by jet airways and

    kingfisher.

    Secondary objective:-

    y To find out the preferences of customer of airlinesy To find out the services in which the customer want improvement

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    Data:-

    Primary: has gathered by a comparative questionnaire based on the servies such as

    reservevation of tickets,delay of flight and behavior of the staff,baggage and handling about the

    meal provided in the aircraft.

    Secondary data: has been gathered by the help of various websites and books.

    Research design:-

    The research design which is used in this project is of exploratory nature. The comparative study

    on the service provided by jet airways and kingfisher is made.for this purpose questionnaire is

    made to know the customer preferences between the airways.

    Sample design:-

    A proper questionnaire has been prepared based on various facilities provided by the airways.this

    questionnaire have been filled by customers who have their own experiences with these

    airlines.the sample size is taken as 20.

    Company profile:-

    Jet airways:-

    et Airways, which commenced operations on May 5, 1993, has within a short span, established

    its position as a market leader. The airline has had the distinction of being repeatedly adjudged

    India's 'Best Domestic Airline' and has won several national and international awards.

    Jet Airways currently operates a fleet of 96 aircraft and with an average fleet age of 4.97 years,

    the airline has one of the youngest aircraft fleets in the world.

    Flights to 71 destinations span the length and breadth of India and beyond, including New York(both JFK and Newark), Toronto, Brussels, London (Heathrow), Milan, Johannesburg, Hong

    Kong, Singapore, Kuala Lumpur, Colombo, Bangkok, Kathmandu, Dhaka, Kuwait, Bahrain,

    Muscat, Doha, Abu Dhabi, Dubai, Jeddah, Sharjah, Riyadh and Dammam. With over 70

    destinations, we connect a place every 5 minutes.

    Jet Airways' Konnect service operates over 170 flights daily on key domestic routes and is

    designed to meet the needs of the low-fare segment with value-for-money fares.

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    JetLite is a subsidiary of Jet Airways India Ltd. and was acquired by Jet Airways in April 2007.

    Positioned as an all-economy, no-frills airline, JetLite operates a fleet of 19 aircraft and flies to

    27 domestic & 1 international destination (Kathmandu), operating over 110 flights a day, on

    average.

    Jet Airways, Jet Airways Konnect and JetLite have a combined fleet strength of 115 aircraft and

    operate over 500 flights daily.

    Kingfisher:-

    Kingfisher Airlines is Indias first and only Five Star airline, rated by Skytrax and the only one to

    offer a premium first class. Besides being the first and only airline in India to offer in-flight

    entertainment on every seat, Kingfisher offers LIVE TV with 16 channels of live and exciting

    content. The airline has received numerous awards for innovation, customer responsiveness andwas voted the Best New Airline of the Year, within months of its launch. Kingfisher Airlines is

    a part of the UB Group that is one of Indias largest conglomerates with diverse interests and a

    global presence. The UB Group is also the largest Indian alcoholic beverages (beer and spirits)

    company and the second largest drinks group in the world. .

    Kingfisher Airlines covers all segments of air travel from low fares to premium service and

    offers most flights by any single airline network in India. With a fleet of 66 aircraft, Kingfisher

    Airlines connects 69 domestic and international destinations and operates over 330 flights a day.

    Kingfisher Airlines has partnered with British Airways to give you seamless connectivity toAmsterdam, Brussels, Paris, Manchester, Glasgow, Edinburgh, Lisbon, Aberdeen and Dusseldorf

    via London.

    Now, you can through check-in to your final destination and earn King miles on all these sectors.

    All you need to do is select your European destination and let the combined might of the worlds

    two renowned airlines take care of the rest. Bookings open for travel beginning 15th September

    2010 onwards.

    We invite you to fly Kingfisher Airlines and experience a journey we strive to create everyday.

    A journey like never before.

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    Strength and weakness:-

    Jet's Strengths

    y A phenomenal and well-developed network both of the airline and the chairmany Goyal's knowledge of the sectory A massive pool of loyal customersy Excellent lobbying skills and ability to leverage connections within governmenty Ability to survive downturns earliery Financing raised on strength of own balance sheety Has built a professional organisation

    Jet's Weaknesses

    y A perceived drop in service standards when pitted against Kingfishery Struggling with the carcass of Air Saharay

    Poor people management skills of chairmany Inability to raise money for the last two years

    Kingfisher's Strengths

    y Superior product on ground; in the air Jet business class is being equated withKingfisher's economy

    y UB group backing for raising financingy Well capitalised airline, prepared to take lossesy Better handling of employees and staff; less centralised style of functioningy Chairman Mallya's grand vision where it is looking to be among the best in the worldy

    The Deccan deal - which gives it market share, a new market segment and was cheap

    Kingfisher's Weaknesses

    y Kingfisher is yet to build itself into an organisation; structures yet to fall in placey Not as professionally run as Jet; yet to build a professionally competent teamy Mallya's knowledge of the sector does not parallel Goyal'sy Chairman's people skills are better but employees have to work very erratic hoursy Unable to leverage connections to the same extent while lobbyingy Kingfisher's loads are lower than Jet's, which could be a reflection of its marketing and

    sales ability.

    Primary data analysis:-

    The research approach was a combination of survey research and a focus group research. The

    research instrument used was of questionnaire. The sample size was taken as 20. The sample

    composition was mainly of airways customers i.e. who used the airline facilities.

    Out of 20 airways customer most of them use airline facilities often.

    According to the analysis we can say that the preference of the customer is kingfisher because of

    Their service provided in the flight, meal provided, checking procedure, timely information etc.

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    We ask the customer about their:-

    y Preference to travel by.y Lesser time for reservationy Check in procedure is more convenienty Better information on delay and other thingsy Provides better handling facilities, timely and carey More systematic seating arrangementy Good quality mealy Services provided according to the customer expectation

    And also we ask what more facilities do you expect from airlines. Majority of customer said that

    they what more of the flights for shorter route and more timely information.

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    Annexure I

    response

    questio

    n

    jet airways kingfisher

    2 6 9 6.22352

    9

    3 5 9 6.54902

    4 4 10 6.87451

    5 3 14 7.2 slope -0.32549

    6 5 8 6.54902 intercep

    t

    8.176471

    7 7 10 5.89803

    9

    8 5 7 6.54902

    9 6 8 6.22352

    9

    SUMMARY OUTPUT

    Regression Statistics

    Multiple R 0.557248

    R Square 0.310525

    Adjusted R

    Square

    0.195613

    Standard

    Error

    1.117888

    Observation

    s

    8

    ANOVA

    df SS MS F Significan

    ce F

    Regression 1 3.37696

    1

    3.37696

    1

    2.70227

    5

    0.15131

    Residual 6 7.49803

    9

    1.24967

    3

    Total 7 10.875

    Coefficient

    s

    Standar

    d Error

    t Stat P-value Lower

    95%

    Upper

    95%

    Lower

    95.0%

    Upper

    95.0%

    Intercept 8.176471 1.89789

    3

    4.30818

    2

    0.00504

    7

    3.532493 12.8204

    5

    3.53249

    3

    12.8204

    5

    X Variable 1 -0.32549 0.19800

    4

    -

    1.64386

    0.15131 -0.80999 0.15900

    7

    -

    0.80999

    0.15900

    7

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    Annexure II

    Questionnaire:-

    Objective:-comparative study of kingfisher and jet airways on the basis of the service provided.

    Customers name:-

    Age:-

    Sex:-

    1. How often you travel by airways?a)very frequently b)often c)rarely d)never

    2.You prefer to travel by?

    a.jet airways b. kingfisher c. other specify_______________

    3.which airlines consumes lesser time for reserving ticket

    A jet airways b.kingfisher c. other specify_______________

    4. which airlines check in procedure are more convenient that the other airlines

    a.jet airways b.kingfisher c. other specify_______________

    5. which airlines provides you better information in case of delay of flight?a. jet airways b. kingfishers c. other specify_______________

    6. which airways provides you better handling facilities, timely and with care/

    a. jet airways b. kingfisher c. other specify_______________

    7. Which airlines seating arrangement in more systematic?

    a. jet airways b. kingfisher c. other specify_______________

    8. which airline according to you provides good quality of meals?

    a. jet airways b. kingfisher c. other specify_______________

    9. which airlines provides you best in flight entertainment?

    a. jet airways b. kingfisher c. other specify_______________

    10. what more facilities do you expects from airlines?

    ____________________________________________________-