Travel Classes

•A travel class is a quality of accommodation public transportation.

•High travel classes are more comfortable and expensive.

•Three tiers available in commercialized air transportation.

Economic Class

Source: www.emirates.com

Economy Class

•Also Known As Coach Class•Lowest Level or third tier class.•Denoted by “Y” in tickets.•Fees is charged for extra service like

video on demand, headphones, blankets, meal etc.

Business Class

Source: www.lufthansa.com

Business Class

•Second tier class•Intermediate between economy and first

class•Denoted by letter “J” or “C”

First Class

Source: www.etihad.com

First Class•Highest level or third tier class•First class is the most luxurious travel

class of seats and service •Most expensive than any of the class•Denoted by “F” or “P”•Typically towards the front of the flight•Separate cabin allocated for a

passenger•Now a days first class have been

replaced by business class due to financial purpose.

Major Commercialized Airline Services in India

IndiGo

oHeadquarter – Gurgaon, Haryana, IndiaoRanking - Largest Airline in IndiaoOwned by – InterGlobe Enterprises and Caelum Investments.oCommenced Operation – August 2006oNetwork – Domestic and InternationaloRevenue - US$1.7 billion (2014)oAwards – •Best low-cost carrier by the Airline

Passengers Association of India, 2007.•The Airline Of The Year (India)

Jet Airways

oHeadquarter – Mumbai, IndiaoRanking – 2nd largest Airline in IndiaoOwned by - Tailwinds LimitedoCommenced Operation – May 1993oSlogan - The Joy of FlyingoNetwork - Domestic and InternationaloRevenue - US$2.7 billion (2012)oAwards -•Best First Class - Service in the World

award at Business Traveller's 20th annual 'Best in Business Travel' awards.

• India's Airline at the World Travel Awards, 2006

Air India

oFormerly Known As “Tata Airlines”.oHeadquarter – New Delhi, IndiaoRanking - 3rd largest Airline in IndiaoOwned by - Air India Limited (AIL)oCommenced Operation – 1932oSlogan - Your Palace in the SkyoNetwork - Domestic and InternationaloRevenue - US$2.2 billion (2013-14)oAwards -• 9th Most Luxurious First Class Cabin in the

world.• Amity Corporate Excellence Award instituted

by the Amity International Business School, Noida.

• Best South Asian Airline, 2010.

SpiceJet

oHeadquarter – Gurgaon, IndiaoRanking – 4th largest Airline in IndiaoCommenced Operation – May 2005oSlogan - Whatever We Do, We Do It

With All Our Heart oNetwork - Domestic and InternationaloRevenue - US$ 964.13 million (2013) oAwards -• India’s Best Low Cost Airline by Outlook

Traveller (2008, 2010, 2011 & 2012).•India’s Most Outstanding Airline LCC-

Domestic Award, by Travel and Hospitality. (2012).

GoAir

oHeadquarter – Worli, MaharashtraoRanking – 5th Largest Airline in India oOwned by - Wadia GroupoCommenced Operation – 2005oSlogan - Fly SmartoNetwork - Domestic oRevenue - US$1.6 million (2013)oAwards -•Best Domestic Airline For Excellence in

Quality and Efficient Service by Pacific Area Travel Writers Association (2008).

• Best Performing Airline by Airbus (2011).

 

Defunct Airlines

Kingfisher Airlines

oCommenced operations: 2005oCeased Operations: 2013oReason: Financial CrisisoHeadquarters: The Qube, Mumbai, MaharashtraoOwned by: United Breweries GroupoSlogan: Fly The Good Times

Indian

oFormerly Known As “Indian Airlines”.oCommenced operations: 1953oCeased Operations: 2011oReason: Officially merged into Air India on 27 February 2011.oHeadquarters: New Delhi, IndiaoOwned by: India’s first state-owned, Union Ministry of Civil Aviation.

Current Airline Crisis

1. Lack of Long Term Strategy:•No long term CEO or MD•Cost Conscious than a brand•Low cost carrier service rather than full

service carrier2. Multiple Unprofitable Route:•Multiple hopping due to competition

resulting in delay of flight3. Delayed Salary To The Employees :•The salary given to the employees is quite

delayed creating a bad image and an issue to be raised by DGCA.

4. Improper Returns:•Unable to generate expected returns on investment

done.5. Rising Fuel cost:•Unable to develop a new technique to overcome

fuel crisis.6. Huge investment on purchasing fleets:•The expansion of different fleets to run their

flights.7. Outrageous debts and service tax:•Some airline companies fell into the debt trap by

not paying on time.8. Airfare War:•The companies are offering the tickets at a very

low price and even at the sale making their profit less.

 

Possible Suggestions•Effective Business Model•Fuel Efficient Plans •Improved Revenue Per Person•Avoid Aggressive Expansion of Fleets