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A Grand Project
On
THE AIRLINE INDUSTRY
In fulfillment of the GRAND PROJECTin two year full time
MBA programme of Gujarat University.
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EXECUTIVE SUMMARY
In this project, the 1ststep was to have a knowledge about the airline industry and
also the airlines Jet Airways and Kingisher Airlines! "e wanted to have the e#act
idea o the e#isting scenario! $o to have the e#act idea we proceeded by %eeting the
travel agents! &hey helped us by giving us proper guidance and giving us inor%ation
about the current situation!
$o keeping in %ind that inor%ation we designed a 'uestionnaire!
A study o the airline industry was done! (ere a sa%ple si)e o 1*+ was taken, where
7* people answered in conte#t to the Jet Airways and the re%aining 7* answered on
behal o Kingisher Airlines! (ere a direct co%parison was not %ade between the
two airlines!
ut in general 'uestions were asked relating to the in-light services, ticketing, light
personnel, waiting ti%e, areas o dissatisaction i any, purpose o the light etc! &he
answers gave an idea about the services o both the airlines! &he other idea o the
study was to point out the li%itations o the airlines and also to highlight the positive
points! Ater pointing out the li%itations, a ew suggestions are given by us!
Kingisher and Jet Airways are both highly priced! Kingisher justiies the prices by
giving *star services to the passengers! It gives a co%pletely personali)ed touch! It
has also been ranked as the 1st
do%estic airline that has been given the * star by the$kytra#!
Jet Airways justiies the prices by giving consistency in all its services since a long
ti%e! It provides both 'uick and e#cellent services to the passengers!
Kingisher has a niche %arket! It has lights to places like .anchi, Kandla, Jaipur,
Kolkata etc! It has targeted that class o passengers to need to %ake business trips to
such places and where reaching in a short ti%e and that to lu#uriously is diicult! It is
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basically not or people who look or a high re'uency in the light nu%bers and also
at regular intervals! It has li%ited lights to the %etros like /u%bai, 0elhi!
&his is e#actly where Jet Airways diers! It has a high re'uency o lights which ly
at regular intervals! It is highly convenient to passengers who are intending to ly at
odd ti%es or also who intend to return the sa%e day!
&hus the basic dierence in both the airlines is the target %arket even though both are
highly priced!
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TABLE OF CONTENTS
Preface I
Acknowledgeen! II
E"ec#!$%e S#ar& III
Ta'le of Con!en!(
C)a*!er + Re*or! $n!rod#c!$on
bjective o the .esearch 28
.esearch %ethodology 28
C)a*!er , A$rl$ne $nd#(!r& O%er%$ew
Introduction +3
4urrent Airline scenario in India 11
Airline industry inor%ation about Kingisher and Jet Airways 57
6$& analysis o the Airline Industry 2+7 6s o the airline industry 27
C)a*!er - SURVEY CON.UCTE.
C)a*!er / 0RAP1IC PRESENTATION AN. INTERPRETATION *+
C)a*!er 2 FIN.IN0S 7+
C)a*!er 3 SU00ESTIONS AN. RECOMMEN.ATIONS 71
C)a*!er 4 LIMITATIONS 75
C)a*!er 5 FURT1ER SCOPE OF STU.Y 79
C)a*!er 6 B$'l$ogra*)& 72
Anne"#re
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6ricing and service 'uality are the key variables that decide the brand e'uity o each
player in the airline industry! #isting literature suggests that %easure%ent and
%anage%ent o service 'uality is the key or survival o airline co%panies! &he
process o travelling on a do%estic airline was divided into pre-light, in- light and
post-light e#periences! A survey was conducted to ind out the service 'uality o
re'uent liers on each o the two airlines across a series o service peror%ance
variables
INTRO.UCTION
India at present has twelve co%peting airlines in the do%estic %arket as against a
single govern%ent owned airline in 1331! According to /cKinsey :uarterly;5++*+s the ?/aharaja@, as the national lag-carrier was aectionately
known, was lying to 95 destinations ;it now lies to 2> destinations< and %aking
proits! =or %any years in India air travel was perceived to be an elitist activity! &his
view arose ro% the ?/aharajah@ syndro%e where, due to the prohibitive cost o air
travel, the only people who could aord it were the rich and powerul! In recent years,
however, this i%age o 4ivil Aviation has undergone a change and aviation is now
viewed in a dierent light - as an essential link not only or international travel and
trade but also or providing connectivity to dierent parts o the country! Aviation is,
by its very nature, a critical part o the inrastructure o the country and has i%portant
ra%iications or the develop%ent o touris% and trade, the opening up o inaccessible
areas o the country and or providing sti%ulus to business activity and econo%ic
growth! ntil less than a decade ago, all aspects o aviation were ir%ly controlled bythe Bovern%ent!
In the early ities, all airlines operating in the country were %erged into either Indian
Airlines or Air India and, by virtue o the Air 4orporations Act, 13*9 this %onopoly
was perpetuated or the ne#t orty years! &he 0irectorate Beneral o 4ivil Aviation
controlled every aspect o lying including granting lying licenses, pilots, certiying
aircrats or light and issuing all rules and procedures governing Indian airports and
airspace! =inally, the Airports Authority o India was entrusted with the responsibility
o %anaging all national and international airports and ad%inistering every aspect o
air transport operation through the Air traic 4ontrol!
"ith the opening up o the Indian econo%y in the early Cineties, aviation saw so%e
i%portant changes! /ost i%portantly, the Air 4orporation Act was repealed to end the
%onopoly o the public sector and private airlines were reintroduced! 0o%estic
liberali)ation took o in 138>, with the launch o scheduled services by new start-up
carriers ro% 1335! A nu%ber o oreign investors took an interest! /odilut closed
ater ailing to %eet inancial obligations to lessors and its technical partner,
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Duthansa! In 133>-1338, &ata and $IA tried to launch a do%estic carrier, but the civil
aviation %inister had publicly stated his opposition on nu%erous occasions ;Airline
usiness 1338
&he Indian govern%ent introduced the open sky policy or do%estic players in 1331
and partial open sky policy or international players only in Cove%ber 5++2!
Increasing liberalisation and deregulation has led to an increase in the nu%ber o
players! &he industry co%prises three types o players ull cost carriers, low cost
carriers ;D44< and %any start-up airlines that are %akingEplanning an entry!
Pre(en! Ind$an Scenar$oIt is a phase o rapid growth in the industry due to huge build-up o capacity in the
D44 space, with capacity growing at appro#i%ately 2*F annually! &his has induced a
phase o intense price co%petition with the incu%bent ull service carriers ;Jet,
Indian, Air $ahara< dis- counting up to >+-7+F or certain routes to %atch the new
entrants ticket prices! &his, coupled with costs pressures ;a key cost ele%ent, A&=
price, went up appro#i%ately 9*F in recent %onths, while sta costs are also rising
on the back o shortage o trained personnel
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growth o over *+F! &he Indian travel %arket is e#pected to triple to G*1 billion by
5+11 ro% G1>!9 billion in 5++*-+>!
7e& Pla&er( $n Ind$an Ind#(!r&
A$rl$ne( on In!erna!$onal Ro#!e(
A$r Ind$ais the national lag carrier airline o India with a network o passenger and
cargo services worldwide! It is one o the two state-owned airlines in the country, the
other being Indian Airlines! Air India has 22 world-wide destinations! &he airline has
been proitable in %ost years since its inception! In the inancial year ending /arch
91, 5++>, Air India has %ade a net proit o .s!37 %illionH earned a revenue o
.s!87,28+ %illion - representing a growth o al%ost 1* per cent over the previous
year!
A$r Sa)arais a privately owned airline operating scheduled services connecting all
%etropolitan centres in India! &he airline was established on 5+ $epte%ber1331 and
began operations on 9 0ece%ber 1339with two oeing 797-5++aircrat as $ahara
Airlines! &he uncertainty over the airlines are has caused its share o the do%estic
Indian air transport %arket, ro% appro#i%ately 11F in January 5++> to a reported
8!*F in April! $ahara Airlines was rebranded as Air $ahara on 5 ctober 5+++!
Ind$an is Indias state owned pri%arily do%estic airline, under the ederal nion
/inistry o 4ivil Aviation &he 4o%pany was or%erly known as Indian Airlines! n
0ece%ber 7, 5++* the co%pany was rebranded as Indian as a part o a progra% to
reva%p the co%pany i%age in preparation or an I6! Indian 4ivil Aviation /inister,
6raul 6atel, announced Bovern%ent o Indias plan to %erge Air India and Indian
http://en.wikipedia.org/wiki/Air_Indiahttp://en.wikipedia.org/wiki/Air_Indiahttp://en.wikipedia.org/wiki/Air_Saharahttp://en.wikipedia.org/wiki/September_20http://en.wikipedia.org/wiki/1991http://en.wikipedia.org/wiki/December_3http://en.wikipedia.org/wiki/1993http://en.wikipedia.org/wiki/Boeing_737#737-200http://en.wikipedia.org/wiki/Indian_Airlineshttp://en.wikipedia.org/wiki/December_7http://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Praful_Patelhttp://en.wikipedia.org/wiki/Air_Indiahttp://en.wikipedia.org/wiki/Air_Saharahttp://en.wikipedia.org/wiki/September_20http://en.wikipedia.org/wiki/1991http://en.wikipedia.org/wiki/December_3http://en.wikipedia.org/wiki/1993http://en.wikipedia.org/wiki/Boeing_737#737-200http://en.wikipedia.org/wiki/Indian_Airlineshttp://en.wikipedia.org/wiki/December_7http://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Praful_Patel -
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into one giant airline consisting o 19+-12+ aircrat! &his could take place anyti%e
ro% the end o 5++> to the %iddle o 5++7! I these airlines %erge then they will be
in direct co%petition with other air giants like Br$!$() A$rwa&( 8 A$r France8 A$r
Canada8 L#f!)an(a8 7LM 89AL 8 Aer$can A$rl$ne( 8and :ANTAS
9e! A$rwa&(a ?regular@ airline which oers nor%al econo%y and business class
seats! Jet Airways, along with Air $ahara, is the only airline which survived
the dis%al period o 133+s when %any private airlines in India were orced to
close down! Jet Airways is an a$rl$ne based in Ind$a serving do%estic and
international routes! &he airline operates over 9++ lights to 29 destinations
across the! It currently controls about 95F o Indias aviation %arket
A$rl$ne( on .oe(!$c Ro#!e(
S*$ce9e!is a low-costairline!&heir %arketing the%e oering low everyday spicey
ares and great guest services to price conscious travelers! &heir ai% is to co%pete
with the Indian .ailways passengers travelling in A4 coaches!
A$r .eccan is an airline based in angalore, India! It was Indias irst low-cost
carrier,and as o /ay 5++>, connects ** cities within India! Air 0eccan has grown
rapidly since it irst started air operations in 5++9, and despite its al%ost disastrous
%aiden inaugural light ;which caught ire
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reasonable air ares! Kingisher are pushing or an a%end%ent o the present Indian
govern%ent rule which re'uires an airline to ly a %ini%u% o ive years on do%estic
routes beore it can start lying overseas!
Ind$0o A$rl$ne(is a new and a private do%estic airline based in India! IndiBo placed
an order or 1++ Airbus A95+aircrat during the 5++*6aris Air $how! &he total order
was worth $ G> billionH one o the highest by any do%estic carrier during the show!
&he new low-are carrier has started operations ro% August 2, 5++>!
0LOBAL SCENARIO
At the %acro-econo%ic level Asia 6aciic growth is i%pressive! India and 4hina aregrowing between 8 and 1+F each year! 4hina is now the worlds 2th largest econo%y!
#cluding Japan, Asian econo%ic growth was 7Fdoubles the world average o
9!*F! Blobal airline traic is e#pected to rise steadily until 5++8 in line with an
anticipated good peror%ance by the world econo%y, according to the nited
Cations;C< aviation agency! &he C International 4ivil Aviation rgani)ation
ound in its %ediu%-ter% orecast that airline traic would grow >!1 per cent in 5++>,
*!8 per cent in 5++7, and *!> per cent in 5++8. And strong econo%ic growth will
continue! ut growth %eans nothing i the botto% line is red! Blobally airlines lost
$G> billion in 5++*! $ carriers lost $G1+ billion! uropean carriers %ade about
$G1!9 billion! Asian carriers led proitability with $G1!* billion! ven within Asia
it is a %i#ed picture! $o%e carriers are a%ong the %ost proitable! thers however are
struggling! In the region operating %argins averaged less than 5F, still the best
peror%ance in the world! /ost are below the 7 to 8F needed to cover the cost o
capital and give investors an acceptable return!
http://en.wikipedia.org/wiki/IndiGo_Airlineshttp://en.wikipedia.org/wiki/Airbus_A320http://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/Paris_Air_Showhttp://en.wikipedia.org/wiki/IndiGo_Airlineshttp://en.wikipedia.org/wiki/Airbus_A320http://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/Paris_Air_Show -
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I*ac! of R$($ng F#el Pr$ce( on !)e Ind#(!r&
&he high price o uel is killing the proitability! In two years the industry uel bill
%ore than doubled to nearly $G1++ billion59F o operating costs! And there is no
relie in sight! $o what are airlines to doL I%prove eiciency is the answer! 6rogress
to date has been dra%atic! &he break-even price o uel rose ro% $G55 per barrel in
5++9 to nearly $G*+ in 5++*! nortunately, uel prices are above that! Airlines will
not return to proitability until 5++7 when we e#pect a break-even uel price o
$G**! ven then the projected proit is only $G> billion! Asia will re%ain
proitable in 5++> posting $G5 billion in proit! ut do not start opening the
4ha%pagne! &hat is still less than a 5F net %argin!
0lo'al I*ac! of LCC(
Dow cost carrier co%petition is new to this region! Asian network carriers are better
prepared than %any o their $ or uropean counterparts! &heir operating costs are >
$ cents per A&K on route lengths o 1*++k%! ut the co%petition will also be
tough! Air Asias costs are the lowest in the world5!* $ cents per A&K! Dabour
costs in Asia are the lowest in world13F o operating cost! &his is a signiicant
advantage against $ and uropean carriers with an average cost o above 9+F! I we
co%pare Asian network carriers to their low cost rivals, the story changes! Average
labour costs can be up to 7 ti%es lower at low-cost startups! &here is no inish line in
the race to reduce costs and i%prove eiciency! $o%e analysts are o the view that
4ountries in the Asia-6aciic region, which entered the industry %uch later, have
e%erged as i%portant players in the past decade! In co%parison, the Indian civil
aviation industry which is %uch older still operates ro% a s%all base even though its
do%estic %arket potential and skilled %an power should have given it intrinsic
advantages to e%erge as a globally i%portant player in the civil aviation industry by
now!
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Pa!) Forward for Ind$a
&he escalating uel bill would eventually translate into costlier air tickets or the
Indian travellers, who have or the irst ti%e sa%pled air travel at ares that %atch
irst-class railway tickets!Even as some airlines hiked fares by ten per cent
and others toyed with the idea to offset their ballooning fuel bill, the
government dealt them another blow by withdrawing the withholding
tax exemption on aircraft lease agreements. In the absence of this tax
exemption, aircraft leasing cost is expected to shoot up between 20 to
6 per cent ! a move that could deter new entrants and existing players
from leasing more aircraft. Although poor airport inrastructure re%ains a
concern, we need to %aintain a positive outlook on the sector as the govern%ent
allows private participation and =0Is in construction and %aintenance o air-traic
inrastructure! &his also hints at the huge opportunity in ter%s o inrastructure
develop%ent and %aintenance in the aviation sector or oreign construction and
engineering co%panies! =or now, as %ore and %ore Indians take to the skies, thecountry is set to e%erge as the astest growing aviation %arket!
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! O%er%$ew
&he history o civil aviation in India began in 0ece%ber 1315! &his was with
the opening o the irst do%estic air route between Karachi and 0elhi by the
Indian state Air services in collaboration with the i%perial Airways, K,
though it was a %ere e#tension o Dondon-Karachi light o the latter airline!
&hree years later, the irst Indian airline, &ata $ons Dtd!, started a regular
air%ail service between Karachi and /adras without any patronage ro% the
govern%ent!
At the ti%e o independence, the nu%ber o air transport co%panies, which
were operating within and beyond the rontiers o the co%pany, carrying
both air cargo and passengers, was nine! It was reduced to eight, with rient
Airways shiting to 6akistan! &hese airlines wereM &ata Airlines, Indian
Cational Airways, Air service o India, 0eccan Airways, A%bica Airways,
harat Airways and /istry Airways!
In early 1328, a joint sector co%pany, Air India International Dtd!, was
established by the Bovern%ent o India and Air India ;earlier &ata Airline, besides the above Akade%i, 21 lying clubsEinstitutes
and their branches including nine private institutes were i%parting lying
training! =ive gliding clubs, seven gliding wings o lying clubs and a
govern%ent Bliding 4entre, 6une, were i%parting training in gliding!
!
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.e%elo*en! of C$%$l A%$a!$on
&he repeal o the Air 4orporation Act ro% 1 /arch 1332 enabled private
operators to provide air transport services! $i# operators were given the
status o scheduled operators on 1=ebruary133*!
4urrently there are ive international airports and 87 do%estic airport in the
country with 58 civilian enclaves or deence purposes!
&he Airport Authority o India plans to invest .s 9*,+++ %illion or the
construction and up gradation o airports!
udgetary support o .s 28*!*+ %illion was allocated to AAI in 133>-37!
In august 133>, in a %ajor policy decision, the govern%ent allowed the
private sector to set up air cargo co%ple#es in a bid to ensure s%ooth
%ove%ent o e#port cargo!
0o%estic and oreign investors including C.Is have been invited to
participate in the develop%ent o inrastructure support at select airports!
"ith a %arket share o 29F Indian airlines is the biggest player in aviation!
.s 52,71+ %illion have been %arked or develop%ent o the civil aviation
sector in the annual plan or 1337-38!
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T)e Ind$an A$r Cargo Marke!
&he growth o air cargo in India has also been %aniold though it %ight not
have kept pace with the progress %ade all over the world! &able 1 shows
how both international and do%estic air cargo traic has increased, relecting
an overall year on year growth!
&able 1M &rends in cargo traic at ive international airports in India!
;=igures in +++ tonnes 81 -
1385-89 1>*!2 82!> 5*+ 5+3F
1335-39 9++!* 3+!3 931!2 *>!*>F
1333-5+++ 232!5 189!+ >77!5 79F
;$ource - &ransport India 5+++ under the na%e
Air India! Ater the Independence o India, 23F o the airline was ac'uired by the
Bovern%ent o India! In return, the airline was granted status to operate international
services ro% India as the designated lag carrier under the na%e Air India
International!
&he Bovern%ent India is the %ajority stake-holder in Air India and Indian
Airlines!
/any countries have national airlines that the govern%ent owns and operates! =ully
private airlines are subject to a great deal o govern%ent regulation or econo%ic,
political, and saety concerns! =or instance, the govern%ent oten intervenes to halt
airline labor actions in order to protect the ree low o people, co%%unications, and
goods between dierent regions without co%pro%ising saety!
T$cke! Re%en#e
Airlines assign prices to their services in an atte%pt to %a#i%i)e proitability! &he
pricing o airline tickets has beco%e increasingly co%plicated over the years and is
now largely deter%ined by co%puteri)ed yield %anage%ent syste%s!
ecause o the co%plications in scheduling lights and %aintaining proitability,
airlines have %any loopholes that can be used by the knowledgeable traveler! /any o
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these airare secrets are beco%ing %ore and %ore known to the general public, so
airlines are orced to %ake constant adjust%ents!
/ost airlines use dierentiated pricing, a or% o price discri%ination, in order to sell
air services at varying prices si%ultaneously to dierent seg%ents! =actors
inluencing the price include the days re%aining until departure, the booked load
actor, the orecast o total de%and by price point, co%petitive pricing in orce, and
variations by day o week o departure and by ti%e o day! 4arriers oten acco%plish
this by dividing each cabin o the aircrat ;irst, business and econo%y< into a nu%ber
o travel classes or pricing purposes!
O*era!$ng Co(!
=ull-service airlines have a high level o i#ed and operating costs in order to establish
and %aintain air servicesM labor, uel, airplanes, engines, spares and parts, I& services
and networks, airport e'uip%ent, airport handling services, sales distribution,
catering, training, aviation insurance and other costs! &hus all but a s%all percentage
o the inco%e ro% ticket sales is paid out to a wide variety o e#ternal providers or
internal cost centers!
/oreover, the industry is structured so that airlines oten act as ta# collectors! Airline
uel is unta#ed, however, due to a series o treaties e#isting between countries! &icket
prices include a nu%ber o ees, ta#es, and surcharges they have little or no control
over, and these are passed through to various providers! Airlines are also responsible
or enorcing govern%ent regulations! I airlines carry passengers without proper
docu%entation on an international light, they are responsible or returning the% back
to the originating country!
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A$rl$ne *er(onnel
&he various types o airline personnel includeM
=light 4rews, responsible or the operation o the aircrat! =light crew
%e%bers includeM
o 6ilots;4aptain and =irst icer< so%e older aircrat also re'uire a
=light ngineer
o =light Attendants
In-light security personnel on so%e airlines
Bround crew, responsible or operations at airports! Bround crew %e%bers
includeM
o Aerospace and avionics engineers responsible or certiying the aircrat
or light and %anage%ent o aircrat %aintenance
Aerospace engineers, responsible or airra%e, power plant and
electrical syste%s %aintenance
Avionics engineers responsible or avionics and instru%ents
%aintenance
o
Airra%e and power plants technicianso lectric $yste%s technicians, responsible or %aintenance o electrical
syste%s
o Avionics, technicians, responsible or %aintenance o avionics
o =light 0ispatchers
o aggage (andlers
o .a%pers
o
Bate Agentso &icket Agents
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o 6assenger $ervice Agents ;such as airline lounge e%ployees+F o the total %anuacturing
capacity or eer in India!
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An In!rod#c!$on !o 7$ngf$()er A$rl$ne(
Kingisher Airline is a private airline based in angalore, India! &he airline is owned
by Nijay /allya o nited everages Broup! Kingisher Airlines started its operations
on /ay 3, 5++* with a leet o 2 Airbus A95+ aircrats! &he airline currently operates
on do%estic routes! &he destinations covered by Kingisher Airlines are angalore,
/u%bai, 0elhi, Boa, 4hennai, (yderabad, Ah%edabad, 4ochin, Buwahati, Kolkata,
6une, Agartala, 0ibrugarh, /angalore and Jaipur!
In a short span o ti%e Kingisher Airline has carved a niche or itsel! &he airlineoers several uni'ue services to its custo%ers! &hese includeM personal valet at the
airport to assist in baggage handling and boarding, e#clusive lounges with private
space, acco%panied with reresh%ents and %usic at the airport, audio and video on-
de%and, with e#tra-wide personali)ed screens in the aircrat, sleeperette seats with
e#tendable ootrests, and three-course gour%et cuisine!
V$($onM
&he Kingisher Airlines a%ily will consistently deliver a sae, value-based and
enjoyable travel e#perience to all our guests!@
Safe!&=
&his is an overriding value! In this line o business, there is no co%pro%ise!
Ser%$ce=
In hospitality business custo%er satisaction is very i%portant and building trust,
goodwill and loyalty o custo%ers is at pri%e ocus!
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1a**$ne((M
Kingisher seeks to build an organi)ation with people who choose to be happy, and
will endeavor to inluence their guests and co-workers to be happy too!
TeaworkM
Kingisher believes "e will succeed or ail as a tea%! ach one o us %ust respect our
colleagues regardless o their rank, and we %ust work together to ensure our %utual
success!
Acco#n!a'$l$!&M
very e%ployee in kingisher will be held accountable or the successul e#ecution o
their duties, co%%it%ents and obligations, and they will strive to lead by an e#a%ple!
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Prod#c!= Pre$# cla(( (ea!(
1! $leeperette seats with e#tendable ootrests! 28 seat pitch and a 15*O recline!
=ully-adjustable headrests!
5! Daptop and %obile phone chargers in each seat!
9! 4o%ortable pillows and snug blankets!
Pr$ce=
Initially Kingisher airlines didnt dierentiate between business class and
econo%y class! ut eventually they decreased the prices o business class and
called that seats as pre%iu% seats! =ares were very average as it had to target
%iddle class as well as pre%iu% class people!
Place= King isher airlines connects 59 cities like Ah%edabad, Boa, 0elhi,
Kolkata, (yderabad, Buwahati, Jaipur, daipur, etc!
http://images.google.co.in/imgres?imgurl=http://farm1.static.flickr.com/174/416022354_2e41b207f6.jpg&imgrefurl=http://crankyflier.com/category/airline/kingfisher/&h=333&w=500&sz=105&hl=en&start=11&tbnid=vqqSMS1R04fTTM:&tbnh=87&tbnw=130&prev=/im -
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Proo!$on=
Narious pro%otional strategies has been adopted by Kingisher airlines like
o &he@Power Fl&er@ a consu%er incentive oer targeted at the corporate
traveler
o 6assengers are oered in light entertain%ent options and contests
like7$ngf$()er fl&$ng face of !)e on!)@ anda!!rac!$%e d$(co#n!(
o branded %erchandise!
o er $n
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Kingisher Airlines Di%ited is an airline based in angalore, India! It is a %ajor
Indian airline operating 518 lights a day and has an e#tensive network to 97
destinations, with plans or regional and long-haul international services! Its %ain
bases are angalore International Airport, angalore, 4hhatrapati $hivaji
International Airport, /u%bai and Indira Bandhi International Airport, 0elhi!
Kingisher Airlines, through one o its holding co%panies nited reweries Broup,
has ac'uired 5>F stake in the budget airline Air 0eccan and has option to buy urther
o 5+F stake ro% the secondary %arket!
Kingisher is one o only > airlines in the world to have a * star rating ro% $kytra#,
along with Asian Airlines, /alaysia Airlines, :atar Airways, $ingapore Airlines and
4athay 6aciic Airways!
7$ngf$()er fl$e( !o !)e follow$ng de(!$na!$on( $n Ind$a=
Agartala ;Agartala Airport people, ie! Al%ost *+F were satisied with
the services o reservation agent!
&his shows that reservation services provided by Jet are %ore satisactory than that
provided by Kingisher!
9< &I/ 4CNCIC4
Cot at all I%p $o%ewhat I%p Nery I%portant To!al
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7$ngf$()er 29 15 5+ 42
9e! A$rwa&( 1+ 1> 23 42
To!al *9 58 >3 +2?
ut o 7* responses or Kingisher, 29 people responded that ti%e convenience was
not at all i%portant or the% whereas %ajority in Jet, i!e! 23 people, su%%ing upto
>*!99F said that ti%e convenience was very i%portant actor or the%!
&hus it shows that to the people or who% &I/ 4CNCIC4 is an i%portant
actor, preerred Jet over Kingisher!
=.:C& =DR. 6.B.A/
Cot at all I%p $o%ewhat I%p Nery I%portant To!al
7$ngf$()er *2 13 5 42
9e! A$rwa&( 28 51 > 42
To!al +2?
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ut o 7* responses, al%ost 75F, i!e! *2 people chose Kingisher irrespective o
re'uent lyer progra%! Also, Jet responses show that re'uent lyer progra% is not
%uch an i%portant actor in choosing this airline!
&his throws light on the actor that both the airlines do not have the custo%ers
because o re'uent lyer progra%!
IC=DIB(& $.NI4$
Cot i%portant $o%ewhat
i%portant
Nery i%portant To!al
7$ngf$()er 1+ 1> 23 42
9e! A$rwa&( 12 59 98 42
To!al +2?
ut o the 7* people surveyed or Kingisher, %ajority o the% i!e!23 people rated theIn-light services as very i%portant!
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"hereas out o the 7* people surveyed or Jet,98 people rated the In-light services as
very i%portant!
&hus In-light $ervices is also a %ajor actor or selecting the Airlines!
&.AND ABC& .4//C0A&IC
Cot i%portant $o%ewhat
i%portant
Nery i%portant To!al
7$ngf$()er 5+ 51 92 42
9e! A$rwa&( 1* 5+ 2+ 42
To!al +2?
ut o the 7* people surveyed or Kingisher, %ajority i!e!92 lew with it as their
travel agentE4o%pany had %ade reservations or it!
"hereas out o the 7* people surveyed or Jet, %ajority i!e!2+ lew with it as their&ravel agentE4o%pany had %ade reservations or it!
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2< "as price a %ajor actor in choosing the airlineL
7$ngf$()er 9e! To!alCo >* >8
Res 1+ +8
To!al 42 42 +2?
ut o the 1*+ people surveyed, price was not a %ajor concern or %ost o the people!
&hat is 199 people had gone or the airline irrespective o the prices!
&hus price was not a %ajor actor!
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*< "hat is your %ain purpose in taking this tripL
7$ngf$()er 9e! To!al
usiness 6urpose 21 98
6ersonalE6leasure
6urpose
92 97
To!al 42 42 +2?
&he reasons or travelling by Jet and Kingisher were or business as well as personal
and pleasure reasons! &here was not %uch dierence between the 5 reasons!
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>< 6lease indicate the a%ount o ti%e you waited or the ollowing servicesL
A$rcraf! Board$ng
7$ngf$()er 9e! To!al
* %inutes 9+ 52
1+ %inutes 9> 2+
11-5+ %inutes +3 11
To!al 42 42 +2?
ut o the 7* people surveyed or Kingisher, al%ost the sa%e a%ount o people
waited or a period o * %inutes and 1+ %inutes!
"hereas or Jet, %ajority o the people i!e! 2+ people had to wait or 1+ %inutes!
ut in both the cases, very ew people had to wait or 11-5+ %inutes!
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Board$ng
7$ngf$()er 9e! To!al
* %inutes 1+ 111+ %inutes 98 9*
11-5+ %inutes 57 53
To!al 42 42 +2?
=or oarding in Kingisher, %ajority o the people had to wait or 1+ %inutes and 11-
5+ %inutes!
$a%e was the case with Jet!
"hereas only 51 people had to wait or * %inutes!
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Sec#r$!& C)eck
7$ngf$()er 9e! To!al
* %inutes 93 9>
1+ %inutes 58 53
11-5+ %inutes +8 1+
To!al 42 42 +2?
=or $ecurity 4heck, both in Jet and Kingisher, %ajority o the people had to wait or
a period o only * %inutes and 1+ %inutes!
"hereas only 18 people had to wait or a period o 11-5+ %inutes!
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4.&$R = &( $&A==
=or Kingisher, out o the 7* people surveyed, %a#i%u% people i!e! 28 people rated
the courtesy o the sta as very good, whereas only 5 people rated it as bad!
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=or Jet, out the 7* people surveyed, %a#i%u% people i!e!22 people rated the courtesy
o the sta as very good! "hereas only > people rated it as bad!
$D= A..ACB/C& = &I4K&$
(ere we see that out o 7* people, only 28 people had %ade sel arrange%ents to ly
whereas re%aining 1+5 people had done their reservations either through an agent or
the co%pany they were working or!
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In Kingisher, out o the 7* people only 98 people had done sel arrange%ents
whereas 115 people had done their reservations through agents or the co%pany they
were working or!
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0I$A&I$=A4&IC DND
ut o the 7* people surveyed or Jet, %a#i%u% people i!e! 39 people had co%plaints
at the $ecurity 4heck, 55 people had co%plaints at the &icket 4ounter, 5+ people had
co%plaints at the #press aggage!1* people had no co%plaints at all!
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ut o the 7* people surveyed or Kingisher, %a#i%u% people i!e! 7* people had
co%plaints at the $ecurity 4heck, whereas 9> people had co%plaints at the #press
aggage, 1> people had co%plaints at the &icket 4ounter!59 people had no
co%plaints at all!
6.$CCD 4/6DAIC&$
.egarding 6ersonnel co%plaints, out o the 7* people surveyed or Jet, %a#i%u%
people i!e! *2 people had co%plaints at the $ecurity 4heck personnel, whereas 28
people had personnel co%plaints at the &icket 4ounter, 57 people had co%plaints atthe #press aggage whereas 51 people had no co%plaints at all!
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=or Kingisher, out o the 7* people surveyed, %a#i%u% people i!e!2* and 29 had
co%plaints at the $ecurity 4heck and &icket 4ounter! "hereas 98 people had no
co%plaints at all!
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6.$CAD 0&AID$
11< "hat is your occupationL
9e! 7$ngf$()er To!al
#ecutive 9* 5*
Acade%ics + +6roessionals 5+ 59
$ales%en + +
$ecretary + +
(o%e%aker +2 +7
$tudent +8 1+
$el-%ployed +7 1*
.etired + +1
To!al 42 42 +2?
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=or Jet, out o 7* people, %a#i%u% people i!e! >+ people ell in the age group o 9>-
2*, whereas *1 people ell in the age group o 5>-9*! nly 17 people were in the age
group o 18-5*!
=or Kingisher, out o 7* people, it was just vice-versa! /a#i%u% people i!e!>+ ell in
the category o 5>-9*, whereas *1 ell in the category o 9>-2*! nly 18 ell in the
category o 18-5*!
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FIN.IN0S
1
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SU00ESTIONS
1! Kingisher should increase the re'uency o lights to the %ost co%%only
preerred destinations ro% Ah%edabad!
5! Kingisher should ocus on the ti%ing o the lights and should introduce early
%orning and late evening lights specially or the usiness &ravellers!
9! $ince Jet has its co%petitor as Kingisher, Jet should also ocus %ore on
providing a personali)ed touch to the services!
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LIMITATIONS
1! &he indings o this study are li%ited to the do%estic airline industry in India!
5! &his study has not considered industry %easures to
%easure service 'uality!
9! "e have %easured only the custo%er preerence o service 'uality in
Ah%edabad!
2! &he survey could be done by taking the sa%ple si)e o just 1*+ people!
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FURT1ER SCOPE OF STU.Y
1< &his project can also be used by Jet Airways and Kingisher Airlines or
urther i%prove%ent!
5< &ravel Agencies can also use this project to know the e#isting scenario a%ong
re'uent liers!
9< &he three di%ensions o the $.:AD i!e! &angibles, .eliability and
Assurance are related here! ut the re%aining two di%ensions i!e!
.esponsiveness and %pathy can also be related and studied!
2< &his study can be urther carried on to the International Airline Industry as
well!
*< &his study can be urther e#tended to other airlines like Air 0eccan, $pice Jet,
Indian Airlines, etc!
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BIBLIO0RAP1Y
REFERENCE BOO7S
1< Seitha%l and itner ;133>
and risk in air transportation!
2< /arketing /anage%ent, 11th edition
y 6hilip Kotler!
NESPAPERS
1< &he &i%es India!;1*E+9E5++8E+9E5++8! httpMEEwww!iloveindia!co%Eecono%y-o-indiaEaviation-industry!ht%l
http://www.jetairways.com/Cultures/en-US/India/http://en.wikipedia.org/wiki/Airline#Airline_personnelhttp://www.indianchild.com/india_civil_aviation.htmhttp://kingfisherblog.wordpress.com/2008/03/17/fly-kingfisher-indias-only-5-star-airline/http://kingfisherblog.wordpress.com/2008/03/17/fly-kingfisher-indias-only-5-star-airline/http://en.wikipedia.org/wiki/Kingfisher_(beer)http://www.iloveindia.com/economy-of-india/aviation-industry.htmlhttp://www.jetairways.com/Cultures/en-US/India/http://en.wikipedia.org/wiki/Airline#Airline_personnelhttp://www.indianchild.com/india_civil_aviation.htmhttp://kingfisherblog.wordpress.com/2008/03/17/fly-kingfisher-indias-only-5-star-airline/http://kingfisherblog.wordpress.com/2008/03/17/fly-kingfisher-indias-only-5-star-airline/http://en.wikipedia.org/wiki/Kingfisher_(beer)http://www.iloveindia.com/economy-of-india/aviation-industry.html -
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0ear .espondent,
&he inor%ation provided by you will be kept conidential and will only be used or acade%ic purpose!
Ca%eM-
+G )a! $( !)e fre#enc& of fl$g)!( !aken '& &o#J
very week =ortnightly /onthly 0epends
,G Plea(e ra!e !)e (er%$ce( &o# rece$%ed fro !)e re(er%a!$on agen! w)en ak$ng &o#r !ra%el
arrangeen!( for !)$( fl$g)!D
(ighly satisied $atisied Average 0issatisied
9< Plea(e !ell #( )ow $*or!an! eac) of !)e follow$ng wa( $n ak$ng &o#r dec$($on !o c)oo(e A$rl$neGfor !oda&@( fl$g)!!
Cot at all I%portant $o%ewhat I%portant Nery I%portant
;Airlines< departure and arrival ti%e was %ore convenient
;Airlines< re'uent lyer progra%Eloyalty
;Airlines< in-light services are better ;%eals, %ovies, light attendants, etc< Plea(e $nd$ca!e )ow long &o# wa$!ed $n l$ne8 and w)e!)er !)a! wa$! wa( acce*!a'le or not!V
Co "ait * %in! 1+ %in! 11-5+ %in! 5+W %in!
Acceptable"aitLRes Co
Aircrat boarding
oarding
$ecurity check point
#press baggage check-in counter
&icket counter
4G O%erall8 )ow co#r!eo#( and )el*f#l were A$rl$ne@(G *er(onnel a! !)e a$r*or! &o# K#(! de*ar!edJ
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Nery good Bood Average ad Nery bad
5G .$d &o# &o#r(elf call !o ake !)e arrangeen!( for !)$( fl$g)!J
Res
Co
6G If &o# were *ar!$c#larl& d$((a!$(f$ed w$!) an& of A$rl$ne@(G *roced#re( a! !)e a$r*or! &o# K#(!
de*ar!ed8 *lea(e $nd$ca!e w)$c) area(GD
;Airline< ticket counter
#press baggage check-in counter
$ecurity checkpoint
oarding gate check-in counter
Aircrat boarding
+?G If &o# were *ar!$c#larl& d$((a!$(f$ed w$!) an& of A$rl$ne@(G *er(onnel a! !)e a$r*or! &o# K#(!de*ar!ed8 *lea(e $nd$ca!e w)$c) *er(onnelD
$ky 4ap
&icket counter agent
#press baggage agent
$ecurity checkpoint personnel
.ed 4arpet .oo% receptionist
oarding gate agent
=light attendant
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++G )a! $( &o#r occ#*a!$onJ
#ecutiveE/anager
Acade%ics
&echnical 6roessional
$ales%an
$ecretaryE4lerkEice worker
(o%e%aker
$tudent
$el-%ployed
.etired
+,G Are &o#=
/arried
$ingle
+-G )$c) age gro#* do &o# 'elong !oJ
18 5*
5> 9*
9> 2*
2> and above
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