The Problem

Private domestic airline operators raised their airfare in December 2000. Indian Airlines, the government-owned carrier, was the only domestic airline which did not follow suit. Information available (source – Economic Times) showed that people still prefer to fly Jet Airways. The reasons for the above preference had to be ascertained, as according to Indian Airlines officials domestic flyers are price-conscious customers.

This study consisted of 20 respondents who had recently flown with Jet Airways. They were asked to indicate on a seven point scale (1 = completely agree, 2 = moderately agree, 3 = slightly agree………7 = completely disagree), their agreement or disagreement with the set of 10 statements relating to their perceptions and attributes of the airline. The statements were selected based on qualitative interviews with a couple of customers flying on Jet Airways.

The 10 statements were as follows:

1. They (Jet Airways are always on time).2. The seats are very comfortable.3. I love the food they provide.4. Their air-hostesses are very beautiful.5. My boss/friend flies with the same airline.6. The airline has younger aircrafts.7. I get the advantage of a frequent flyer program.8. It (the flight timing) suits my schedule.9. My mom feels safe when I fly Jet.10. Flying Jet compliments my lifestyle and social standing in the society.

Use the factor analysis technique to find underlying factors which would be fewer than 10 in number. Name these factors.