gp komal pooja

8/13/2019 Gp Komal Pooja

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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!

!
http://www.tcil.com/ca.asp#tophttp://www.tcil.com/ca.asp#tophttp://www.tcil.com/ca.asp#top


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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


* %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


* %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


* %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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