passenger satisfaction in airline industry

8/2/2019 passenger satisfaction in airline industry

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CHAPTER - I

INTRODUCTION

1.1 The Airline Industry- Overview

An airline provides air transport services for travelingpassengers and freight.

Airlines lease or own their aircraft with which to supply these services and may form

partnerships or alliances with other airlines for mutual benefit. Generally, airline

companies are recognized with an air operating certificate or license issued by a

governmental aviation body.

Airlines vary from those with a single aircraft carrying mail orcargo, through full-

service international airlines operating hundreds of aircraft. Airline services can be

categorized as being intercontinental, intra-continental, domestic, regional, or international,

and may be operated as scheduled services or charters.

Few inventions have changed how people live and experience the world as deeply

as the invention of the airplane. World War II, like World War I, brought new life to the

airline industry. During the both World Wars, government subsidies and demands for new

airplanes vastly improved techniques for designing and building them. World War II

brought tremendous long run gains for the development of the air transportation industry

including, a large body of experienced pilots, a large collection of aircrafts used in the war

field and above all the increased public interest to fly due to the motivation given by the

experienced military personnel. Following the Second World War, the first commercial

airplane routes were set up in Europe. The next dramatic step in commercial aviation was

the adoption of jet liners during the 1950s. This provided increased travel speeds,

smoother flights and enlarged passenger-seating capacity.

The airline industry again leaped forward in the 1970s with the introduction of

wide-bodied aircrafts like Douglas DC-10, Boeing 747s. The advantage was the increase in

passenger comfort and seating and freight capacity. The 1980s witnessed still further

improvements in aircraft technology.
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The industry has progressed to the point now where it would be hard to think of life

without air travel. It has shortened travel time and altered our concept of distance, making

it possible for us to visit and conduct business in places once considered remote. Many

airlines foresaw a future explosive demand for civil air transport, for both passengers and

cargo. The global airline industry, counting both domestic and international carriers, is a

giant industry. As the airline industry grew, new brands of airlines started coming up and

so did the travel industrys dependency on it. If the airline industry could be described in

three words, they would be "intensely competitive market."

Air transport forms a unique global network linking people, countries and cultures

and lays a vital role in the further integration and development of the world. It is

increasingly accessible to a greater number of people who can now afford to travel by air

for leisure and business purposes.

Some of the salient features of air transport are:

Over 1.8 billion passengers use the worlds airlines for business and leisure travel.

Research indicates that by 2012, this number cold exceed 2.3 billion

Air transport is essential for world business creating jobs and opening p new

market opportunities by attracting businesses to locations in the developed and

developing world. It moves products and services quickly over long distances

enabling economic and social participation by outlying communities.

Air transport provides 28 million direct, indirect and induced jobs worldwide, a

figure that is expected to rise to 32 million by 2012.

The combined direct, indirect and induced employment created at airports is 4000

jobs per million passengers served. The location of the airport creates an economic

ripple effect, attracting other industries and business activities, and secondary

support functions.


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Over 40% of world trade of goods (by value) is carried by air.

Aviation is directly linked to the tourism industry, generating receipts of 700

million euro per day, and creating considerable employment in the aircraft and

engine manufacturing industries and related activities.

The airline industry is classified into four categories by the Department of

Transportation (DOT):

International - 130+ seat planes that have the ability to take passengers just about

anywhere in the world. Companies in this category typically have annual revenue

of $1 Billion or more. National - usually these airlines seat 100-150 people and have revenues between

$100 million and $1 billion.

Regional - companies with revenues less than $100 million that focus on short-haul

flights.

Cargo - these are airlines whose main purpose is to transport goods.

1.1.1 Major challenges facing the airline industry

Airport capacity, route structures, technology, and costs to lease or buy the physical

aircraft are significant in the airline industry. Other large issues are:

Weather - The problem is that weather is variable and unpredictable. Extreme heat,

cold, fog, and snow can shut down airports and cancel flights (which costs money).

Weather is also the second-largest cause of flight accidents.

Fuel Cost - on average, fuel can make up 14-16% of an airline's total costs,

although efficiency among different carriers can vary widely. Short haul airlines

typically get lower fuel efficiency because take-offs and landings consume high

amounts of jet fuel.

Labor - it is estimated that 40% of an airline's expenses are used to pay pilots,

flight attendants, baggage handlers, dispatchers, customer service, and others.


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As a result of globalization the government opened the sky to many new airlines.

Consequently, the monopolists are facing competition from newcomers. In many ways, the

biggest winner in the deregulated environment was the air passenger. Indeed, the U.S.witnessed an explosive growth in demand for air travel, as many millions who had never or

rarely flown before became regular fliers, even joining frequent flyer loyalty programs and

receiving free flights and other benefits from their flying. New services and higher

frequencies meant that business fliers could fly to another city, do business, and return the

same day, for almost any point in the country. The result of liberalization was customer

delight. Since there are many options for the customers they will go for the best. So every

firm tried to make their products best to attract new customers at the same time maintain

existing customers.

Another reason why airlines want to retain customers is the cost. The commercial

aviation industry as a whole was affected by the September 11th incident and the crisis in

the Middle East. This led to the reduction in passenger traffic. As a result many airlines

could not survive. Due to high fuel prices and other taxes many airlines wound up their

services.

Historically, air travel has survived largely through state support, whether in the

form of equity or subsidies. Today, the pace of change in the airline industry is faster than

ever before. The industry is becoming increasingly liberalized. The former blanket of

regulatory protection is being swept away and airlines are being forced to compete in all

the aspects of product, price and service. Its structure is changing, with airlines grouping

together through strategic alliances, equity swaps and franchising arrangements into so-

called mega-carriers. The segmentation of the market is evolving, with airline customers

becoming more demanding and, often, more price- sensitive as well. Airline industry is one

of the most competitive and growing industries in the world as it leads to economic growth,

world trade, international investment and tourism. In the last decade, it has grown strongly

by 7% per year for both business and leisure purposes.


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Airline industry is considered as one of the fastest expanding sectors of the world

with growth rates 2.4 times above the GDP rates on average. It is also predicted to grow by

an average of 5 % a year from 2000 to 2010 (INTERNATIONAL AIR TRANSPORT

ASSOCIATION).It is affected by the economical growth, trade and political factors. As an

economical factor, the increase in oil prices destroyed the profitability of the global airline

industry, accordingly it losses around $6 billion in 2005 (INTERNATIONAL AIR

TRANSPORT ASSOCIATION).

Due to the unstable political and economical situation, many airlines companies

started to modify their strategies and services to survive and succeed in the airline industry.

For example, many companies invested heavily in the quality of services they provide by

offering, e-booking system, new interactive entertainment systems, more comfortable seats,

low cost carriers and many technological techniques..

Overall, the airline industry will recover as the number of passengers seems to be

doubled by 2010 to exceed 2.3 billion due to the tourism, trade and economic development

(INTERNATIONAL AIR TRANSPORT ASSOCIATION). Thus, Successful airlines will

be those that continue reducing their costs and improving their services by differentiating

from competitors to secure a strong position in the aviation market.

1.1.2 Airline personnel

The various types of airline personnel include: Flight operations personnel including flight

safety personnel.

Flight Crew, responsible for the operation of the aircraft. Flight crew members

include:

o Pilots (Captain and First Officer: some older aircraft also required a Flight

Engineer and or a Navigator)

o Flight attendants, (led by apurseron larger aircraft)

o In-Flight security Personnel on some airlines

Ground crew, responsible for operations at airports. Ground crew members include:
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o Aerospace and avionics engineers responsible for certifying the aircraft for

flight and management of aircraft maintenance

Aerospace engineers, responsible for airframe, powerplant and

electrical systems maintenance

Avionics engineers responsible for avionics and instruments

maintenance

o Airframe and power plant technicians

o Electric System technicians, responsible for maintenance of electrical

systems

o Avionics technicians, responsible for maintenance of avionics

o Flight Dispatchers

o Baggage Handlers

o Ramp Agents

o Gate Agents

o Ticket agents

o Passenger service agents (such as airline lounge employees)

o Reservation agents, usually (but not always) at facilities outside the airport.

Airlines follow a corporate structure where each broad area of operations (such as

maintenance, flight operations (including flight safety), and passenger service) is

supervised by a vice president. Larger airlines often appoint vice presidents to oversee each

of the airline's hubs as well. Airlines employ lawyers to deal with regulatory procedures

and other administrative tasks.

1.2 Problem of the Study


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Increasing competition from private players

Due to less man power the airlines in Coimbatore international airport are unable to

manage the passenger.

Response towards the passenger by Coimbatore international airport is less because

of limited airlines.

The quality level is low when comparing to other international airports.

Continuous shifts in regulatory environment which has led to the growing

passenger sophistication.

1.3 Aim and Objectives of the Study

The primary aim of this research is to examine the passenger satisfaction levels in

airline sector with special reference to Coimbatore international airport.

To acquire a vibrant knowledge about airline industry and get through awareness

regarding customer satisfaction.

To examine passenger satisfaction in airline industry with reference to Coimbatore

international airport.

To understand and analyze the role of quantity of service in affecting passenger

satisfaction in airline sector in context with Coimbatore international airport.

To delineate the most important current issues surrounding passenger satisfaction.

To assess the passenger satisfaction of service quality of airlines.


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1.4 Scope of the Study

This study includes direct interaction with the passengers and this help us to

know the passenger satisfaction level to great accuracy. This study is of great

importance to the airlines which will know about the passengers preference to

travel in airlines. The airlines will gain information about passengers preference

depending on their response. So, the scope of the study is to achieve passenger

satisfaction.

1.5 Period of study

The study conducted during the period of December - 2011 to April - 2012.

1.6 Research Methodology

Research comprises defining and redefining of problem, collecting, organizing

and evaluating data, making deductions and reaching conclusions.

The study required both primary and secondary data.

1.6.1 Sources of Data


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The data for this study is collected from primary and secondary sources. The

secondary data and the relevant material were collected from the magazines, company

profiles, broachers, etc. The primary data source for the study is the passengers of Airlines

in Coimbatore International Airport.

1.6.2 Primary data

Since primary data is collected at hand it calls for a decision making on research

approaches, Questionnaire method has been used to collect the data. For this project the

datas were collected by Questionnaires.. The main advantages with this primary data's arethat they give more information in greater depth and have greater flexibility.

1.6.3 Secondary data

Secondary data consist of information that already exists somewhere, having been

collected for another purpose. It is obtained more quickly and at a lower cost. Secondary

data provides the necessary information to do the work. Generally the different sources of

secondary data are internal sources, prior research reports, government publications which

provide summary data on demographics, economic, social and other aspects. Periodicals

and books, commercial data and international data are the other sources of secondary data.

The secondary data for this study were collected from different sources like books,

magazines, journals, newspapers and websites.

1.6.4 Sample Size

Here the sample size for this study was 100 questionnaires.

1.7 Data Analysis


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The collected data was analyzed by using both quantitative and qualitative

techniques. Under the qualitative techniques, the collected data was converted into

numerical format in appropriate tables with percentage and diagrams. Each numerical

format was described by using qualitative techniques used in this research

1.8 Tools Used For Data Analysis

As a tool or as a device used for the research a well structured questionnaire is

adopted. The questionnaire consists of closed-ended questions where the respondent is

forced to select an answer from the given choices. Under closed-ended questions there are

multiple choices, so that the RESPONDENTS dont have any problem to answer. By using

the questionnaire, face to face interview were also possible. SPSS and MS-EXCEL are also

used to analyze the primary data. The mathematical tool used in this study is Simple

Percentage analysis.

1.9 Limitations of the Study

Every study has its limit, so does this study the major limitation was the time

constraint. Another limitation of primary data is that they are very much time consuming

and the researcher cannot be sure whether the information received is relevant, accurate,

current and unbiased.We will get only a vague idea about the work. Another limitation of

the study relates with the security of the airport in Coimbatore. Due to the security reason,

Airport authorities cant issue pass. That affects the independence of doing work. So

researcher could only get limited amount of primary data. Hence this research mainly

depends upon secondary data. But secondary data may not always provide all the necessary

data that is required for the project.


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Chapter II

THEORETICAL FRAMEWORK

2.1 Introduction

Aviation sector plays crucial role in moving passengers or goods from one place to

another either it may be domestic or international, due to economic globalization and technical

advancements, the airline industry is facing stiff competition. According to in the industry like

airline, quality of service is significant because providing excellent quality of service to

customers is necessary for the continued existence of the sector. Quality of service in

airline industry is the focal point of satisfaction by travelers, travelers loyalty, and travelers

choice of airline. Therefore, offering better service quality may deliver more customer

satisfaction which will result in attracting more customers and increasing profits in

business. Customer satisfaction is assessed to play a vital role in every business model

especially in service industries such as tourism, hospitality and airlines. The high level of

customer satisfaction will directly leads to high returns by reducing expenditure like marketing,

and word-of-mouth.

It is clearly evident that customers who are happy and delighted will attract

the new customers by word of mouth; this will impact on increase in sales, thus

resulting in profits to the firm. Hence customer satisfaction proves to be an important

aspect in airlines sector. Customer satisfaction derives from assessing customer

perceptions and performance.

2.2 Customer Satisfaction

Customer satisfaction may be described as the notion which customers may encounter


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about the products or services of a specific brand or business firm when the

customer expectations have been reached or surpassed the existence of that particular

goods or service. The satisfaction is an individual's feeling of pleasure or dissatisfaction

obtained from comparing a good's possible outcome in contrast to the customer's demands.

An organization may increase it sales and customer's loyalty by offering excellent

satisfaction by the customer. Therefore customer satisfaction has happened to be one

of the focal point for all business especially those in service industry. Customer

satisfaction is gauged to sustain existing customers and as a result, effectiveness and

growth of business. To maintain customer expectation and customer loyalty in order to gain

higher long-term performance of the company, customer satisfaction is one of the important

factors. Its certain that customer expectation meets the customer satisfaction, this will be

the driving force to build the strong relationship between client and a company andalso this will

directly lead to more and more profitable to the organization. There are two key analysis of

satisfaction, Satisfaction itself a course of action as well as an end results.

Customer satisfaction is constantly the outcome of the observation

processes. Customer satisfaction may be implied as a decision relied on the growing

practice through a distinct goods or service relatively than a business event. Customer

satisfaction may be explained as an individual's complete assessment of the performance ofa product or service till now. Customer satisfaction as a post purchase thoughts framed

through a rational evaluation of the quality that a customer expected to obtain from an

exchange and the intensity of quality the customer notices actually receiving from the

trade. To be specific it is the state of customer perceptions and expectations. Customer

satisfaction is a fundamental factor in improving production process and end user

relationship.

The importance of customer satisfaction and its use for determining the

quality from the Customers outlook has been highlighted by many researchers in airline

industry. Customer contentment is the emotion or outlook of a client towards a goods or

service following it had been consumed. Customer happiness is the significant end result

of endorsement activity, where it operates as a link between various levels of consumer


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purchasing activities.

2.3 Customer Satisfaction in Airline Sector

Airline sector is considered to be major industry. In the year 1988, the sector

contributed $10.2 billion to GDP. The services offered by the industry are at par with the

international standards catering to the needs of both domestic and international

passengers. The airline sector is very significant to the tourism as citizens in the country are

engaged in this sector. Satisfaction of a customer is a purpose of observed quality

and notions of degree to which remarked quality unsuccessful to counterpart

customer expectations. Customers will constantly evaluate the remarked performance

of goods or service with little performance mark. The customers are merely satisfied

and they find it simple to shift when other firm is providing a better cost or package while

the importance of customer satisfaction is highlighted in business where competition is

severe.

The primary objective of airline sector is to provide excellent service and

competency. The excellent service is vital while the number of absolutely contented

customers segment is an important factor as assessed by some analysts for high

profits. A business organization must regularly gauge consumer satisfaction in order to

analyze and identify whether clients were delighted or not. In the airline sector the degree

of customer happiness is plainly recognized off late in the process, whilst the

majority of the customers spent the cash by now.

According to the literature, outstanding service is achieved through

committed and loyal staff. To provide a reasonable level of service and quality stated that

a firms approach should be focused in improving the skills and ensuring efficiency,


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motivation and commitment of the employees. Airline sector may develop the scope of

achievements if they allow its workforce to take individual responsibility and go an

extra mile to make the customers happy. Customer satisfaction is when the consumer is

delighted with the service delivered by the airline sector that meets the client desires, wants

and expects. Airline industry should focus on making customers happy and should allocate

finances on providing excellent customer service.

CHAPTER III

PROFILE OF THE AIRLINES

3.1 COMPANY PROFILE

3.1.1 INDIGO AIRLINES

Indigo Airlines was an American airline headquartered in Chicago, Illinois. It is

generally regarded as the worlds first business jet airline. It was founded in 1997 by

aviation veteran and University of Chicago graduate Matt Anderson; business executive

and Embry-Riddle Aeronautical University alumnus John N. Fenton and McKinsey

consultant and MIT PhD Tom. During its life, its headquarters were at first located in the

Near North side area of Chicago, while later in its life its headquarters were at Chicago

midway Airport.

IndiGo is built for people with things to do, places to be, people to see - who don't

want to waste time, money or energy in the process. By minimizing the cost/time/tension of

air travel, IndiGo opens up a country full of opportunities. With IndiGo, you've got abillion reasons to fly! The IndiGo team uses all of these resources to design processes and

rules that are safe and simple, that make sense, and that cut waste and hassles, which in

turn ensures a uniquely smooth, seamless, precise, gimmick-free customer experience at

fares that are always affordable. IndiGo focuses on doing one thing, and doing it well. Our


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aircraft are brand-new Airbus A320-200s, with a single-class configuration consisting

of 180 passenger seats.

One type of airplane - brand-new Airbus A320s

One type of fare - low

One type of customer service - professional

One way to deal with delays and cancellations - honestly

We believe that we can offer the lowest fares by staying focused, which keeps our costs

down without cutting corners or compromising on things that matter.

3.1.1.1 Citizen's Charter

IndiGo is built for people with things to do, places to be, people to see who dont want to

waste time, money or energy in the process. By minimizing the cost, time and tension of air

travel, IndiGo opens up a country full of opportunities. With IndiGo, youve got a billion

reasons to fly!

IndiGo incorporates the best hardware, software, interface design and personnel

from around the world. The IndiGo team uses all of these resources to design processes and

rules that are safe and simple, that make sense, and that cut waste and hassles, which in

turn ensure a uniquely smooth, seamless, precise, gimmick-free customer experience at

fares that are always affordable.

3.1.1.2 History

Indigoor "individuals on the go", for the first time allowed individual travelers

the ability to reserve and purchase a single seat on a traditional corporate or business jet

which then flew a "scheduled" flight like a traditional airline. Prior to Indigo the only

business jet services available to consumers consisted of jet ownership or charter, both


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expensive options to regular airline travel. Indigo is regarded as the originator of two new

categories of corporate jet air travel service: per seat, high frequency and the public or

commercial corporate jet.

Indigo priced its service between its first city pair Chicago and New York City

close to a so-called unrestricted coach fare. This allowed travelers an affordable travel

option while greatly expanding Indigo's addressable market, growth potential and

investment thesis.

Indigo's inventory was marketed and sold through American Express Travel

Related Services as well as through the American Express Platinum Card program. Indigo

was the first business jet airline to list its seat inventory in major Global Distribution

Systems such as Sabre and Apollo, under the carrier code "I9" which allowed travel agents

easy access to Indigo's services. The Indigo project was also supported by management

consultants McKinsey and Company and was additionally advised by corporate identity

firm Interbrand (an Omnicom company), public accountants and business advisors Arthur

Anderson, public relations firm The Dilenschneider Group and investment bank and

financial advisory firm Merill Lynch and Company.

Indigo management also argued that the company helped advance the state ofgeneral aviation security and pointed to its advanced security procedures that were unique

to the industry.

Indigo employed its own security personnel and was the first jet charter company to

operate sterile flights between general aviation, non-airline facilities. Indigo customers,

employees and vendors cooperated with comprehensive identity, background and screening

procedures that were unprecedented in the private jet industry. Indigo submitted to

numerous TSA security audits and was fully approved by relevant U.S. Government

agencies. Comprehensive general and private aviation security continues to be an

unresolved public policy issues.

By 2004, Indigo had voluntarily idled its operations after challenges in securing

additional capitalization. The Indigo concept continues to resonate strongly with the


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traveling public and in 2005 the Net jets company, backed by Warren Buffett's, Berkshire

Hathaway announced its intention to begin scheduled business jet service between

Chicago, New York and Los Angeles. Other projects mimicking the Indigo business model

include Geneva, Switzerland based Club Airways, started by World Economic Forum

founders the Schwab family. Other notable ventures borrowing on the Indigo "per seat"

inventory, distribution and pricing strategy include the Dayjet company, Linear Air and

various jet membership programs offering "shared per seat charter" services. Several North

Atlantic services (sometimes referred to as the "Indigo of the North Atlantic") also directly

applied the Indigo concept of a commercial corporate jet but in larger traditional airline

aircraft and included Maxjet, Eos and Silver jet. In 2008, a new company called Green jets

began non-scheduled per-seat or shared-ride private jet service between major eastern US

metropolitan markets.

3.1.1.3 Fleet

Indigo's initial fleet consisted of four French-built Dassalut Falcon jets fitted with:

large executive style leather seats; a full hot galley; private bathroom; and laptop power

outlets. Indigo was headquartered in Chicago, Illinois at Chicago Midway International

Airport in the former Ameritech corporate hangar facilities. This was a comprehensive,

220,000-square-foot (20,000 m2) co-located hangar, office complex, private passenger

terminal and maintenance facility.

Indigo was a fully vertically integrated aviation company and fully owned,

employed and controlled its own aircraft fleet, pilots, dispatchers and maintenance services.

The company operated as a Federal Aviation Administration FAR 135 commercial

operator and additionally was certified by the United States Department of Transportation

under parts 41101 and 380 as a public charter operator. Indigo was the first business jet

commercial operator to receive an additional DOT fitness approval and was granted a

Certificate of Public Convenience and Necessity.

As part of its overall planning and growth objectives, Indigo early in its initial

operations distributed a request for proposal to several global aerospace manufacturers for


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a next generation regional business jet to eventually replace its initial aircraft. Brazilian

manufacturer Embraer both embraced Indigo's business model and responded strongly to

the RFP in its efforts to introduce its new corporate shuttle aircraft, the "Legacy" jet. Indigo

was the first U.S. certified commercial operator of the Legacy and launched service with

this new, environmentally advanced stage 4 aircraft in 2003 in a 16-seat all business-class

service.

3.1.2 JET AIRWAYS

Jet Airways is the largest Indian airline based out of Mumbai, Maharashtra. It

operates over 400 flights daily to 76 destinations worldwide. Its main hub is Mumbai, with

secondary hubs at Delhi, Kolkata, Chennai, Cochin, Ahmedabad, and Bengaluru. It has an

international hub at Brussels Airport, Belgium. Jet Airways is owned by Naresh Goyal.

3.1.2.1 History

Early years

Jet Airways was incorporated as an air taxi operator on 1 April 1992. It started

commercial operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft.

In January 1994 a change in the law enabled Jet Airways to apply for scheduled airline

status, which was granted on 4 January 1995. It began international operations from

Chennai to Colombo in March 2004. The company is listed on the Bombay Stock

Exchange, but 80% of its stock is controlled by Naresh Goyal (through his ownership of

Jets parent company, Tailwinds). It has 10,017 employees (as at March 2007).

Naresh Goyal who already owned Jet Air (Private) Limited, which provided sales

and marketing for foreign airlines in India set up Jet Airways as a full-service scheduled

airline to compete against state-owned Indian Airlines. Indian Airlines had enjoyed a

monopoly in the domestic market between 1953, when all major Indian air transport

providers were nationalized under the Air Corporations Act (1953), and January 1994,


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when the Air Corporations Act was repealed, following which Jet Airways received

scheduled airline status.

Air Sahara buyout

In January 2006 Jet Airways announced that it would buy Air Sahara for US$500

million in an all-cash deal, making it the biggest takeover in Indian aviation history. It

would have resulted in the country's largest airline but the deal fell through in June 2006.

On 12 April 2007 Jet Airways agreed to buy out Air Sahara for INR14.5 billion

(US$340 million). Air Sahara was renamed JetLite, and was marketed between a low-cost

carrier and a full service airline. In August 2008 Jet Airways announced its plans to

completely integrate JetLite into Jet Airways.

Present

In October 2008 Jet Airways laid off 1,900 of its employees, resulting in the largest

lay-off in the history of Indian aviation. However the employees were later asked to return

to work; Civil Aviation Minister Praful Patel said that the management reviewed its

decision after he analyzed the decision with them.

In October 2008 Jet Airways and rival Kingfisher Airlines announced an alliance

which primarily includes an agreement on code-sharing on both domestic and international

flights, joint fuel management to reduce expenses, common ground handling, and joint

utilisation of crew and sharing of similar frequent flier programmes.

On 8 May 2009 Jet Airways launched its low-cost brand, Jet Konnect. The decision

to launch a new brand instead of expanding the JetLite network was taken after considering

the regulatory delays involved in transferring aircraft from Jet Airways to JetLite, as the

two have different operator codes. The brand was launched on sectors that had 50% or less

load factor with the aim of increasing it to 70% and above. Jet officials said that the brand

would cease to exist once the demand for the regular Jet Airways increases.


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According to a PTI report, for the third quarter of 2010, Jet Airways (Jet+JetLite)

had a market share of 26.9% in terms of passengers carried, thus making it a market leader

in India, followed by Kingfisher Airlines with 19.9%.

3.1.2.2 Subsidiaries

JetLite

JetLite was a wholly owned subsidiary of Jet Airways. It was established as Sahara

Airlines on 20 September 1991 and began operations on 3 December 1993 with two

Boeing 737-200 aircraft. Initially services were primarily concentrated in the northern

sectors of India, keeping Delhi as its base, and then operations were extended to cover all

the country. Sahara Airlines was rebranded as Air Sahara on 2 October 2000. On 12 April

2007 Jet Airways took over Air Sahara and on 16 April 2007 Air Sahara was renamed as

JetLite. JetLite operated a fleet of mixed ownedleased Boeing 737 next generation aircraft

and Bombardier CRJ-200 ER. JetLite ceased operations on 25 March, 2012 after merger

with Jet Konnect.

Jet Konnect

Jet Konnect is the low-cost brand of India-based Jet Airways. It was launched on 8

May 2009, and shares the same airline designation as Jet Airways. It operates a mixed fleet

of ATR 72-500s and Boeing 737-800.

The rationale for launching Jet Airways Konnect was to close down loss-making

routes and divert the planes to more profitable routes with higher passenger load factor. Jet

already ran a low-cost airline named JetLite. According to Jet Airways, the decision to

launch a low-cost brand instead of expanding the existing JetLite was taken to avoid the

regulatory delays associated with moving excess aircraft and assets from Jet Airways to

JetLite, which have separate operating codes. Jet Konnect offers a no frills flight where

meals and other refreshments have to be purchased on board. To identify if the flight is a

full service or Konnect the flight numbers for Konnect are in the series 9W 2000-2999. Jet

Airways merged the JetLite brand into Jet Konnect on 25 March 2012.


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3.1.2.3 Fleet

Jet Airways Boeing 777-300 ER at San Francisco International Airport.

The Boeing customer code for Jet Airways is 5R. The airline is known forconstantly maintaining its average fleet age below 10 years with regular phasing out of

aircraft which are over 10 years of age.

As of May 2011, the Jet Airways fleet consists of the following aircraft with an

average age of 5.4 years:

Table No: 3.1.2.3.1

Jet Airways Fleet

AircraftIn

ServiceOrders

PassengersNotes

P J Y Total

Airbus A330-200 12 50 30 190 226

2 owned

10 dry leased

0 18 236 254

Airbus A330-300 5 TBA

All leased from Intrepid Aviation

Group

Deliveries starting 2011

ATR 72-500 20 0 0 62 62 6 owned

14 dry leased0 0 68 68

Boeing 737-700 11 0 16 102 1183 owned

8 dry leased

Boeing 737-800 45 270 16 138 154 12 owned

34 dry leased0 8 162 170Boeing 737-900 2 0 28 138 166 Both owned

Boeing 777-

300ER

10 2 8 30 274 312 1 owned

8 dry leased

5 re-leased toThai Airways
http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A330-300http://en.wikipedia.org/wiki/ATR_72#ATR_72.E2.80.93500http://en.wikipedia.org/wiki/Boeing_737_Next_Generationhttp://en.wikipedia.org/wiki/Boeing_737_Next_Generationhttp://en.wikipedia.org/wiki/Boeing_737-900http://en.wikipedia.org/wiki/777-300ERhttp://en.wikipedia.org/wiki/777-300ERhttp://en.wikipedia.org/wiki/Thai_Airways_Internationalhttp://en.wikipedia.org/wiki/Thai_Airways_Internationalhttp://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A330-300http://en.wikipedia.org/wiki/ATR_72#ATR_72.E2.80.93500http://en.wikipedia.org/wiki/Boeing_737_Next_Generationhttp://en.wikipedia.org/wiki/Boeing_737_Next_Generationhttp://en.wikipedia.org/wiki/Boeing_737-900http://en.wikipedia.org/wiki/777-300ERhttp://en.wikipedia.org/wiki/777-300ERhttp://en.wikipedia.org/wiki/Thai_Airways_International


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International

Boeing 787-8 10 TBA Deliveries starting 2014

Total 100 49

Source: www.Jetaiways.com

3.1.2.4 Incidents and Accidents

On 1 July 2007, Jet Airways Flight 3307, an ATR 72-212A (registered VT-JCE)

which was flying on the Bhopal-Indore route was involved in an accident which was

caused by a storm. There were no fatalities amongst the 45 passengers and 4 crew on

board, however the aircraft suffered damages beyond repair.

3.1.3 KINGFISHER AIRLINES
http://en.wikipedia.org/wiki/Thai_Airways_Internationalhttp://en.wikipedia.org/wiki/Thai_Airways_Internationalhttp://en.wikipedia.org/wiki/Boeing_787_Dreamlinerhttp://en.wikipedia.org/wiki/Thai_Airways_Internationalhttp://en.wikipedia.org/wiki/Boeing_787_Dreamliner


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Kingfisher Airlines Limited is an airline group based in India. Its head office is in

Andheri (East), Mumbai and Registered Office in UB city, Banglore. Kingfisher Airlines,

through its parent company United Breweries Group, has a 50% stake in low cost

Kingfisher Red. The airline has been facing financial issues for many years. Until

December 2011, Kingfisher Airlines had the second largest share in India's domestic air

travel market. However due to the severe financial crisis faced by the airline, it has the fifth

largest market share currently, only above GoAir.

Kingfisher Airlines was the holder (along with only seven other airlines) of the 5-

star rating by Skytrax along with Cathay Pacific, Qatar Airways, Asiana Airlines, Malaysia

Airlines, Singapore Airlines, and Hainan Airlines. However, in light of the current turmoil

of the airlines, Skytrax ranking for Kingfisher Airlines has now been suspended. Kingfisheroperates 120 daily flights with regional and long-haul international services. In May 2009,

Kingfisher Airlines carried more than 1 million passengers, giving it the highest market

share among airlines in India. Kingfisher also won the Skytrax award for India's best airline

of the year 2011.

Kingfisher Airlines is also the sponsor of F1 racing outfit, Force India, which Vijay Mallya

also owns.

3.1.3.1 History

Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based

United Breweries Group. The airline started commercial operations in 9 May 2005 with a

fleet of four new Airbus A320-200s operating a flight from Mumbai to Delhi. It started its

international operations on 3 September 2008 by connecting Bengaluru with London.

The airline is currently going through some bankruptcy problems, forcing the

airline to ground many destinations and aircraft.


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3.1.3.2 Financial difficulties

Ever since the airline commenced operations in 2005, it has been reporting losses.

After acquiring Air Deccan, Kingfisher suffered a loss of over 1,000 crore (US$199.5

million) for three consecutive years. By early 2012, the airline accumulated losses of over

7,000 crore (US$1.4 billion) with half of its fleet grounded and several members of its staff

going on strike. Kingfisher's position in top Indian airlines on the basis of market share had

slipped to 5 from 2 because of the crisis. As response, Dr. Vijay Mallya called on the

Chairman of Central Board of Excise and Customs and offered to pay up the dues by 13

December 2011. The Kingfisher bank accounts were unfrozen on 14 December 2011. Due

non-payment, several Kingfisher's vendors had filed winding up petition with the High

Court. As on November 2011, winding up petition of seven creditors was pending beforethe Banglore High Court. In the past Lufthansa Technik and Bharat Petroleum Corporation

Limited (BPCL) had also filed winding up petition against Kingfisher Airlines.

During late February 2012, Kingfisher Airlines started to sink into a fresh crisis.

Several flights were cancelled and aircraft were grounded. The cash-strapped airline

claimed that the disruptions will continue for four days due to unexpected events including

bird strikes which rendered aircraft out of service. The airline shut down most international

short-haul operations and also temporarily closed bookings. Out of the 64 aircraft, only 22

were known to be operational by 20 February. With this, Kingfisher's market share clearly

dropped to 11.3%. The cancellation of the flights was accompanied by a 13.5% drop in the

stocks of the company on 20 February 2012. The CEO of the airlines, Sanjay Agarwal was

summoned by the Directorate General of Civil Aviation to explain the disruptions of the

operations.

In March 2012, the airline was suspended by the International Air Transport

Association from using its inter-airline fund clearing system, the suspension means the

airline will have to deal directly with other airlines when sharing revenue on services.


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Due to the ongoing financial crisis, an Airbus A330-200 aircraft was impounded at

London Heathrow Airport in the United Kingdom under Court Orders due to unpaid fees to

aircraft leasing companies and RBS.

3.1.3.3 Fleet

Current

Due to the financial problems of Kingfisher Airlines, the fleet was drastically

reduced from 63 to 23. A majority of the fleet was repossessed by lessons in March 2012.

Although Airbus has not cancelled/suspended the orders yet, but it is unlikely that

Kingfisher Airlines will start taking the deliveries in near future. The Kingfisher Airlines

fleet consists of the following aircraft (as of April 2012):

Table No: 3.1.3.3.1

Kingfisher Airlines Fleet

Aircraft In Fleet Notes

Airbus A319-133 1 VIP for UB Group

Airbus A320-232 5

Airbus A321-232 1

Airbus A330-223 1

ATR 42-500 2 Dry leased

ATR 72-500 12

Boeing 727-044 1 VIP for UB Group

Total 23

Pre-2012 Fleet

Kingfisher Airlines' fleet mainly consisted of ATR 42, ATR 72 and Airbus A320

family aircraft for domestic and short haul services and Airbus A330-200s for international

long-haul services. The average age of its fleet as of January 2009 was 2.3 years. All ATR's

and a few aircraft from the A320 family are used for Kingfisher Red service.
http://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/UB_Grouphttp://en.wikipedia.org/wiki/Airbus_A320_family#A320http://en.wikipedia.org/wiki/Airbus_A320_family#A321http://en.wikipedia.org/wiki/Airbus_A330#A330-200http://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/ATR_72#ATR_72.E2.80.93500http://en.wikipedia.org/wiki/Boeing_727http://en.wikipedia.org/wiki/UB_Grouphttp://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/UB_Grouphttp://en.wikipedia.org/wiki/Airbus_A320_family#A320http://en.wikipedia.org/wiki/Airbus_A320_family#A321http://en.wikipedia.org/wiki/Airbus_A330#A330-200http://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/ATR_72#ATR_72.E2.80.93500http://en.wikipedia.org/wiki/Boeing_727http://en.wikipedia.org/wiki/UB_Group


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Table No: 3.1.3.3.2

3.1.3.4 Cargo

Kingfisher Xpress is a new Door-to-Door cargo delivery service from Kingfisher

Airlines. Kingfisher Xpress same day service will be India's first and only same day

delivery by air service.

3.1.3.5 Accidents and Incidents

On 10 November 2009, Flight 4124 operated by ATR 72-212R VT-KAC, skidded

off the runway after landing at Chatrapathi Shivaji International Airport. The aircraft

Kingfisher Airlines Fleet

Aircraft Total Orders Options

Passengers

NotesP Y Total

Airbus A319-

1003 0 144 144 All dry-leased

Airbus A320-

200

10

67

20 114 134 11 dry-leased

Deliveries were throughout up

until 2016

3 0 174 174

8 0 180 180

Airbus A321-

200

6

32 119 1512 dry leased

2 0 199 199

Airbus A330-

2004 15 30 187 217

Deliveries were throughout up

until 2015

Airbus A350-

800 5 TBA Deliveries were planned: 2015

Airbus A380-

800 5 5 0 0 800 Deliveries were planned: 2014

ATR 42-500 2 0 48 48 All dry leased

ATR 72-50017

- 200 66 66

8 0 72 72

Total 63 92 25
http://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/Airbus_A320_family#A320http://en.wikipedia.org/wiki/Airbus_A320_family#A320http://en.wikipedia.org/wiki/Airbus_A320_family#A321http://en.wikipedia.org/wiki/Airbus_A320_family#A321http://en.wikipedia.org/wiki/Airbus_A330#A330-200http://en.wikipedia.org/wiki/Airbus_A330#A330-200http://en.wikipedia.org/wiki/Airbus_A350http://en.wikipedia.org/wiki/Airbus_A350http://en.wikipedia.org/wiki/Airbus_A380http://en.wikipedia.org/wiki/Airbus_A380http://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/ATR_72#ATR_72.E2.80.93500http://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/Airbus_A320_family#A320http://en.wikipedia.org/wiki/Airbus_A320_family#A320http://en.wikipedia.org/wiki/Airbus_A320_family#A321http://en.wikipedia.org/wiki/Airbus_A320_family#A321http://en.wikipedia.org/wiki/Airbus_A330#A330-200http://en.wikipedia.org/wiki/Airbus_A330#A330-200http://en.wikipedia.org/wiki/Airbus_A350http://en.wikipedia.org/wiki/Airbus_A350http://en.wikipedia.org/wiki/Airbus_A380http://en.wikipedia.org/wiki/Airbus_A380http://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/ATR_72#ATR_72.E2.80.93500


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suffered substantial damage, but all 46 passengers and crew escaped unharmed. In

November 2010, the Directorate General of Civil Aviation released its final report into the

accident. It revealed that the cause of the accident was pilot error, with the aircraft landing

at too high a speed and too far down Runway 27A, which was the designation given to

Runway 27 whilst it was being operated at a reduced length due to the closure of Runway

14/32 for maintenance.

3.1.4 AIR INDIA

Air India is the flag carrier airline of India. It is part of the government of India

owned Air India Limited (AIL). The airline operates a fleet of Airbus and Boeing aircraft

serving Asia, Europe and North America. Its corporate office is located at the Air India

Building at Nariman point in South Mumbai. Air India has two major domestic hubs at

Indira Gandhi International Airport and Chatrapathi Shivaji International Airport. An

international hub at Dubai International Airport is currently being planned.
http://en.wikipedia.org/wiki/File:Air_India_Logo.svg


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Air India has the third largest share in India's domestic air travel market, behind Jet

Airways and IndiGo. Following its merger with Indian, Air India has faced multiple

problems, including escalating financial losses, discontent amongst employees, and poor

customer service. Between September 2007 and May 2011, Air India's domestic market

share declined from 19.2% to 14%, primarily due to stiff competition from private Indian

carriers. In August 2011, Air India's invitation to join Star Alliance was suspended due to

its failure to meet the minimum standards for the membership. In October 2011, talks

between the airline and Star Alliance have resumed. In April 2012, the Indian government

granted another bailout package to Air India, including Rs300 billion ($5.8 billion) of

subsidies.

3.1.4.1 History

Early years

Air India was founded by J. R. D. Tata in July 1932 as Tata Airlines, a division of

Tata Sons Ltd. (now Tata Group). On 15 October 1932, J. R. D. Tata flew a single-engine

De Havilland Puss Moth carrying air mail (postal mail of Imperical Aiways) from

Karachi's Drigh Road Aerodrome to Bombay's Juhu Airstrip via Ahmedabad. The aircraft

continued to Madras via Bellary piloted by former Royal Air Force pilot Nevill Vintcent.In 1932 Air India was based out of a hut with a palm thatched roof at Juhu Aerodrome and

had 1 pilot and 2 apprentice mechanics along with 2 piston engined aircraft, one Puss Moth

and one Leopard Moth aircraft.

Early 1990s

In 1993, Air India took delivery of the flagship of its fleet when the first Boeing

747-400 named Konark (registered VT-ESM) made history by operating the first non-stop

flight between New York City and Delhi. In 1994 the airline was registered as Air India

Ltd. In 1996, the airline inaugurated service to its second US gateway at OHare

International Airport in Chicago. In 1999, the airline opened its dedicated Terminal 2-C at

the renamed Chatrapathi Shivaji International Airport in Mumbai.


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2000 Present

In 2000, Air India introduced services to Shanghai and to its third US gateway at

Newark Liberty International Airport in Newark. In May 2004, Air India launched a

wholly owned low cost airline called Air-India Express. Air India Express connecting cities

in India with the Middle East, Southeast Asia and the Subcontinent. In 2004 Air India

launched flights to its fourth US gateway at Los Angeles International Airport in Los

Angeles (which has since been terminated) and expanded its international routes to include

flights from Ahmedabad, Amritsar, Banglore and Hyderabad.

On 1 December 2009, Air India introduced services to its fifth US gateway at

Washington Dulles International Airport in Washington D.C., accessed via a stopover at

JFK Airport in New York City. This service has been terminated.

3.1.4.2 Merger with Indian Airlines

In 2007, the Government of India announced that Air India would be merged with

Indian Airlines. As part of the merger process, a new company called the National Aviation

Company of India Limited (NACIL) was established, into which both Air India (along with

Air India Express) and Indian Airlines (along with Alliance Air) will be merged.

On 27 February 2011, Air India and Indian Airlines merged along with their

subsidiaries to form Air India Limited.

3.1.4.3 Financial crisis

Around 20062007, the airlines began showing signs of financial distress. The

combined losses for Air India and Indian in 2006-07 were 770 crores ( 7.7 billion). After

the merger of the airlines, this went up to 7,200 crores ( 72 billion) by March 2009. This

was followed by restructuring plans which are still in progress. In July 2009, SBI Capital

Markets India Ltd was appointed to prepare a road map for the recovery of the airline. The

carrier sold three Airbus A300 and one Boeing 747-300 M in March 2009 for $18.75

million to survive the financial crunch.
http://en.wikipedia.org/wiki/Indian_rupee_signhttp://en.wikipedia.org/wiki/Indian_rupee_signhttp://en.wikipedia.org/wiki/Indian_rupee_signhttp://en.wikipedia.org/wiki/Indian_rupee_sign


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As of March 2011, Air India has accumulated a debt of Rs. 42,570 crore

(approximately $10 billion) and an operating loss of Rs. 22,000 crore, and is seeking Rs.

42,920 crore from the government. For the past three months (June, July, August 2011), the

carrier has been missing salary payments and interest payments and Moodys Investor

Service has warned that missing payments by Air India to creditors, such as the State Bank

of India, will negatively affect the credit ratings of those banks. A report by the

Comptroller and Auditor General (CAG) blamed the decision to buy 111 new planes as one

of the major causes of the debt troubles in Air India; in addition it blamed on the ill timed

merger with Indian Airlines as well. Due to high fuel and loan costs, Indian government

has already pumped 32 billion rupees into Air India since April 2009 and in March 2012

government bailed out Air India Ltd. with 67.5 billion rupees ($1.4 billion) which the

amount almost double of the federal government has spent on new hospitals over the past

three years.

Air India's corporate headquarters is located at the Air India Building at Nariman

Point in South Mumbai. The airline moved there in 1970. The Air India Building also

serves as a regional office for Indian.

Return to profitability plans

The new Chairman and Managing director wants to change the order of some of the

111 planes ordered in 2006 to get narrow-body aircraft instead of the wide-body aircraft.

3.1.4.4 Subsidiaries

Air India Cargo

In 1954, Air India Cargo started its freighter operations with a Douglas DC-3

Dakota aircraft, giving Air India the distinction of being the first Asian airline to operate

freighters. The airline operates cargo flights to many destinations. The airline also hasground truck-transportation arrangements on select destinations.

A member of INTERNATIONAL AIR TRANSPORT ASSOCIATION, Air India

carries all types of cargo including dangerous goods (hazardous materials) and live

animals, provided such shipments are tendered according to INTERNATIONAL AIR


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TRANSPORT ASSOCIATION Dangerous Goods Regulations and INTERNATIONAL

AIR TRANSPORT ASSOCIATION Live Animals Regulations.

At the warehouse in Mumbai, Air India has developed a system of inventory

management for cargo handling of import/export functions. This takes care of the entire

management of cargo, supports Electronic Data Interface (EDI) messages with Indian

Customs and replaces to a great extent existing paper correspondence between Customs,

Airlines, and the custodians. This also replaces manual handling and binning of cargo at the

warehouse in Mumbai by Air India.

Air India Express

Air India Express is the airline's low-cost subsidiary which was established in 2005

during the aviation boom in India. It operates scheduled passenger services primarily to the

Persian Gulf and South East Asia. Air India Express is currently the only airline in Air

India Limited which posts profits. It operates a fleet of Next Generation Boeing 737-800

aircraft. Cochin International Airport is the main hub of the airline from which it has

connections to almost all the Gulf countries.

3.1.4.5 Fleet

The Boeing customer code for Air India is 37, meaning a model name of, for example, a

747-437 (an Air India747-400). As of May 2010, the average age of the Air India fleet is

9.5 years.

New aircraft orders


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On 11 January 2006, Air India announced an order for fifty eight jets - eight Boeing

777-200LR World liners, twenty-three Boeing 777-300ER and twenty seven

Boeing 787-8 Dream liners

The airlines received its first Boeing 777-200LR aircraft on 26 July 2007 and

Boeing 777-300ER on 10 October 2007.

In April 2010, the airline has ordered three Boeing 777-300ERs.

Air India expects to get its first Boeing 787 Dreamliner in at the end of May 2012.

3.1.4.6 Accidents and incidents

Ten Air India flights have fatally crashed, including those due to terrorist attacks.

Air India has a record of 6.82 fatal events per million flights.

1950s

On 3 November 1950 Air India Flight 245 Malabar Princess a Lockheed L-749

Constellation (registered VT-CQP) carrying 48 people (40 passengers and 8 crew),

flying on the Bombay-Cairo-Geneva-London route, crashed onMony Blanc,

France, killing all on board.

On 11 April 1955 Kashmir princess a Lockheed L-749A Constellation registered

(VT-DEP) carrying 19 people (11 passengers and 8 crew) was bombed in midair,

killing 16 of the 19 on board.

On 19 July 1959 Rani of Aera a Lockheed L-1049G super Constellation (registered

VT-DIN) carrying 46 people (39 passengers and 7 crew) approached Santacruz

Airport in conditions of poor visibility due to rain. The captain was using an

altimeter with the barometric pressure set at 29.92". An overshoot was delayed and

the aircraft crashed and suffered damage beyond repair. There were no fatalities.

The Air India Memorial in Toronto, Canada dedicated to the victims of Air India Flight

182


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1960s

On 24 January 1966 Air India Flight 101 Kanchenjunga a Boeing 707-420

(registered VT-DMN) carrying 117 people (106 passengers and 11 crew) crashed

on Mont Blanc, France, on the border between France and Italy, killing all on

board. Among the dead was the noted Indian scientist, Homi J. Bhaba.

1970s

On 1 January 1978 Air India Flight 855 Emperor Ashoka a Boeing 747-237B

(registered VT-EBD) crashed into the Arabian Sea after takeoff from Sahara

International Airport (now Chatrapathi Shivaji International Airport) in Mumbai,

killing all on board (213 persons; 190 passengers, 23 crew).

1980s

On 21 June 1982 Air India Flight 403GouriShankar a Boeing 707-420 (registered

VT-DJJ) carrying 99 passengers and 12 crew from Kuala Lumpur International

Airport via Madras (now Chennai) crashed at Sahara International Airport after a

heavy landing during a rainstorm. The fuselage exploded after starting a late go-

around. Two crew members and 15 passengers were killed.

On 23 June 1985 Air India Flight 182 Emperor Kanishka a Boeing 747-347B

(registered VT-EFO) was blown up in mid-air, mid-flight by a suitcase-bomb

planted by Babbar Kalsa Terrorists allegedly as revenge for the Indian

Government's operation on the Golden Temple on June 1984. The flight was on the

first leg on its Montreal-London-Delhi-Bombay flight when it exploded off the

coast of Cork, Ireland. The plane crashed into the Atlantic Ocean. All 307

passengers and 22 crew on board died. After this incident Air India suspended all

services to Montreal.

1990s
http://en.wikipedia.org/wiki/Air_India_Flight_855http://en.wikipedia.org/wiki/Air_India_Flight_855http://en.wikipedia.org/wiki/Air_India_Flight_403http://en.wikipedia.org/wiki/Air_India_Flight_403http://en.wikipedia.org/wiki/Air_India_Flight_182http://en.wikipedia.org/wiki/Air_India_Flight_182http://en.wikipedia.org/wiki/Air_India_Flight_855http://en.wikipedia.org/wiki/Air_India_Flight_403http://en.wikipedia.org/wiki/Air_India_Flight_182


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On 24 December 1999, Friday Indian Airlines Flight 184 (VT-EDW) had 178

passengers on board (most of whom were Indian nationals) that were coming to

India after vacationing in Nepal was hijacked, shortly after the aircraft entered

Indian airspace at about 17:30 Indian Standard Time. The aircraft was hijacked by

gunmen. After touching down in Amritsar, Lahore and Dubai, the hijackers forced

the aircraft to land in Kandhahar, Afghanistan. The hijackers released 27 of 176

passengers in Dubai but fatally stabbed one and wounded several others. The

hijacking lasted for seven days and ended after India released three militants

Mushtaq Ahmed Zargar, Ahmed Omar Saeed Sheikh and Maulana Masood Azhar.

2000s

On 4 September 2009, Air India Flight 829 Konarka Boeing 747-437 (registered

VT-ESM) flying on the Mumbai-Riyadh route caught fire at Chhatrapati Shivaji

International Airport. The fire started in number one engine while the aircraft was

taxing to Runway 27 for take-off. An emergency evacuation was carried out with

no injuries among the 228 people (213 passengers and 15 crew) on board.

3.1.5 SPICE JET

Spice Jet is a low-cost airline headquartered in Gurgaon, India. It began service in

May 2005 and by 2008, it was India's second-largest low-cost airline in terms of market

share. Spice Jet was voted as the best low-cost airline in South Asia and Central Asia

region by Skytrax in 2007 and 2009. Spice Jet was reported to be far ahead of other low-

cost carriers in India like IndiGo, JetLite, Kingfisher Red and GoAirand also full service

carriers like Jet Airways and Kingfisher.
http://en.wikipedia.org/wiki/Mushtaq_Ahmed_Zargarhttp://en.wikipedia.org/wiki/Ahmed_Omar_Saeed_Sheikhhttp://en.wikipedia.org/wiki/Maulana_Masood_Azharhttp://en.wikipedia.org/wiki/Boeing_747-400http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Riyadhhttp://en.wikipedia.org/wiki/Chhatrapati_Shivaji_International_Airporthttp://en.wikipedia.org/wiki/Chhatrapati_Shivaji_International_Airporthttp://en.wikipedia.org/wiki/Low-cost_airlinehttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Central_Asiahttp://en.wikipedia.org/wiki/Skytraxhttp://en.wikipedia.org/wiki/JetLitehttp://en.wikipedia.org/wiki/Kingfisher_Redhttp://en.wikipedia.org/wiki/GoAirhttp://en.wikipedia.org/wiki/Jet_Airwayshttp://en.wikipedia.org/wiki/Kingfisherhttp://en.wikipedia.org/wiki/File:SpiceJet_logo.svghttp://en.wikipedia.org/wiki/Mushtaq_Ahmed_Zargarhttp://en.wikipedia.org/wiki/Ahmed_Omar_Saeed_Sheikhhttp://en.wikipedia.org/wiki/Maulana_Masood_Azharhttp://en.wikipedia.org/wiki/Boeing_747-400http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Riyadhhttp://en.wikipedia.org/wiki/Chhatrapati_Shivaji_International_Airporthttp://en.wikipedia.org/wiki/Chhatrapati_Shivaji_International_Airporthttp://en.wikipedia.org/wiki/Low-cost_airlinehttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Central_Asiahttp://en.wikipedia.org/wiki/Skytraxhttp://en.wikipedia.org/wiki/JetLitehttp://en.wikipedia.org/wiki/Kingfisher_Redhttp://en.wikipedia.org/wiki/GoAirhttp://en.wikipedia.org/wiki/Jet_Airwayshttp://en.wikipedia.org/wiki/Kingfisher


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However, services have been riddled by delays. Some passengers have been left

stranded after repeated delay announcements followed by abrupt cancellations. According

to reports, more than 17,480 passengers of Spice Jet have been affected by delays of more

than two hours in January 2011 alone. That Spice jet is the worst hit among low cost

carriers is exemplified by the fact that this number stays unabated at a staggering 15,629 in

July 2011.

In 2012, the airline again hit the headlines for its debacle in the disabled passenger

handling issue for which it has been issued a notice by the Supreme Court.

3.1.5.1 History

Early years

MODILUFT logo

The origins of Spice Jet track back to February 1993 when ModiLuft, one of

India's first post-deregulation airlines that was launched by the Indian industrialist S K

Modi, in technical partnership with the German flag carrierLufthansa. The airline project

was started in February, 1993 by S K Modi, Ashutosh Dayal Sharma and Kanwar K S

Jamwal and on 5 May 1993 took the first flight from New Delhi to Mumbai. The airline

actually started operations within three months of its conception - a record of kinds in

itself. It maintained very high standards in flight safety, ground maintenance and on-time

performance, owing to a strong support from Lufthansa AG. The team consisting of Indian

and German technical staff and pilots was built by Kanwar K S Jamwal, General Manager

Projects, a thorough professional himself, was responsible for setting up the Airline and its

operations. Captain R L. Kapur and Retired First officer Cdr. S. Raj along with a team of

able Airline experts helped further, in meeting the highest standards in the aviation industry

and in conforming to the Indian Aircraft Rules set by the Director General Civil Aviation.

The first two batches of the cabin crew were extensively trained at the flight crew training

facility at Frankfurt. Modiluft was perhaps the only Airline to achieve an average aircraft

utilization of a minimum 12 hours per day in Indian Skies. This was no ordinary feat, as it
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required constant supervision, resources and a team of through professionals at every level

to make this possible.

3.1.5.2 Emergence as Spice Jet

ModiLuft was the only airline in India to fly a three class configuration compared

to others Airlines, It had a First, Business and an Economy Class and an incident free track

record of flying. It used Boeing 737-200 Aircraft leased from Lufthansa. ModiLuft did not

last very long specially because the business parity of the German and Indian partners was

not the same and problems arose. Then the cooperation was broken off and ModiLuft

acquired Boeing 737-400 aircraft to replace the 737-200s from Air U K, but the future of

ModiLuft was already sealed and the airline ceased operations in 1996. However, the air-

operating certificate (AOC) of ModiLuft did not lapse and the airline due to lack of funds

changed hands and renamed Royal Airways. Thus, was born Spice Jet following the low

cost model. Spice Jet leased 3 Boeing 737-800 Next Generation jet aircraft. Spice Jet chose

to buy in modern Boeing NGs after an year long research and study. On March 7, 2005, the

Airports Authority of India approved three overnight parking slots (for aircraft) to Spice

Jet, with two in Delhi and one in Mumbai. They announced that flights will commence in

May after the first of the 30 Boeing 737-800 aircraft arrive in April. Spice Jet opened

bookings on May 18, 2005 and results followed immediately as over 37,000 were booked

out in just one day, setting a new record in the Asian continent. Red Hot Special Fares were

introduced ranging from 99 (US$1.98) to 799 (US$15.94). The first flight was flagged

off by the Union Minister of Civil Aviation, Shri. Praful Patel. The first Boeing 737-800

aircraft left Delhi for Mumbai via Ahmedabad on May 24, 2005. It was very successful and

by 2008, it was India's second-largest low-cost airline in terms of market share. On 15 July

2008 billionaire Wilbur Ross suggested he would invest 345 crore (US$68.83 million) in

the airline. Indian media baron Kalanidhi Maran acquired 37.7% in the business in June

2010. After completing 5 years of flying, Spice Jet was allowed to commence international

flights by the Airports Authority of India on September 7, 2010. Spice Jet launched flights

from Delhi to Kathmandu and Chennai to Colombo. The first international flight took off

on October 7, 2010 from the Delhi airport. On December 9, 2010, Bombardier Aerospace

announced that Spice Jet placed a firm order for 15 Q400 NextGen turboprop airliners and
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has also placed an option to buy another 15 of those. Spice Jet used their fleet of Q400's for

short-haul operations.

3.1.5.3 Fleet

Table No: 3.1.5.3.1

Spice Jet fleet

AircraftIn

ServiceOrders Options

Passengers

(Economy)Notes

Boeing 737-800 26 21 189

15 dry leased, 11 owned

New deliveries since

December 2010

Boeing 737-900ER 6 212

Bombardier Dash 8

Q4007 8 15 78

New deliveries since

August 2011

Total 39 29 15

3.1.5.4 Spice Jet Cargo

Along with passenger services, Spice Jet also offers cargo services on the same

flight. The service is available on flights connecting Ahmedabad, Agartala, Bagdogra,

Bangalore, Chennai, Coimbatore, Delhi, Goa, Guwahati, Hyderabad, Jaipur, Kochi,

Kolkata, Madurai, Mumbai, Pune and Visakhapatnam. Between 2 to 3.5 tons of cargo is

ferried on each flight ensuring maximum utilization of the aircraft.

3.1.5.5 Incidents

1. On the evening of September 8, 2010 at around 06:40 PM IST, the pilots of flight

SG 219 noticed fire on one of the engines while taxiing towards the runway on

Delhi's Indira Gandhi International Airport. The plane called for emergency

services and the problem was fixed. The plane took off at 08:20 PM with all the

passengers safe. However, just 15 minutes into the flight, the pilots reported a steep
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fall in cabin pressure and made an emergency landing back at the same airport. All

the passengers were safe and the plane was grounded for repairs.

2. On February 20, 2012, a lady named Jeeja Ghosh - a teacher at the Indian Institute

ofCerebral Palsy in Kolkata was forcefully offloaded from a flight to Goa. Though

a frequent air traveler, the lady was forced to stay back because the pilot - Utprabh

Tiwari - claimed that she wasn't fit to fly even though the Spice Jet rules say that

disabled people can fly. Jeeja issued a complaint against the pilot and claimed that

action be taken since the entire differently-abled community was at stake. The

airline later relented to the demand and issued a statement apologizing for the

inconvenience caused to the passenger and that the issue will be taken seriously.

Notwithstanding, Ghosh filed a plea with the apex court. Supreme Court has issued

a notice to Spice Jet for causing this mental trauma to a differently-abled woman.

Ghosh claimed that pilots like that do not deserve to hold the job and be suspended.

3.1.6 SILKAIR

SilkAir (Singapore) Private Limited (Chinese: Shngn Hngkng) is an airline

based in Singapore. It is a wholly owned subsidiary of Singapore Airlines and operates

scheduled passenger services from Singapore to 31 cities in Southeast Asia, South Asia and

China. It has its head office on the fifth storey of Super hub 1. As the regional wing of

Singapore Airlines, it serves 31 out of 50 short-haul destinations in the Singapore Airlines

Group network, and flew 1.56 million passengers in 2006. It made a profit ofS$30 million,

as turnover rose 20.4% to $415 million.

As of 31 March 2010, SilkAir employs 278 staff.

3.1.6.1 History
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The airline had its roots as a regional air-charter company in the form of Trade

winds Charters, formed in 1976, and using planes predominantly leased from parent

company Singapore Airlines serving leisure destinations. Scheduled services were

introduced as Trade winds Airlines on 21 February 1989, when it leased McDonnell

Douglas MD-87 airplanes for services to six destinations, namely Bandar Seri Begawan,

Pattaya, Phuket, Hat Yai and Kuantan from Singapore's Changi Airport and Tioman from

Singapore's Seletar Airport. As the carrier matured, regional business destinations such as

Jakarta, Phnom Penh and Yangon were added to its network, thereby broadening the

airline's appeal beyond the holiday-maker to include the business traveler. SilkAirA319-

100 at Singapore Changi Airport, with a Singapore Airlines (parent company) Boeing 777

in the background.

A major marketing overhaul was started in 1991, culminating on 1 April 1992, by

giving the airline its present name and logo as a new corporate identity. The re-branded

airline utilized up to six of the new Boeing 737-300s introduced just a year earlier. The

mid-1990s saw two Airbus A310-200 aircraft in use and the expansion of services to India

as well as mainland China. It was the first Asian carrier to offer handheld portable video-

on-demand (VOD) in-flight entertainment in the form of theDigEplayer5500, available on

flights to selected countries.

3.1.6.2 Fleet

SilkAir Airbus A320 at Davao International Airport,Philippines

SilkAir began operations with 2 leased McDonnell Douglas MD-87 aircraft in

1989, before investing in its own fleet of six Boeing 737-300s, the first of which began

operations in 1991. It operated two Airbus A310-200s for a brief period from 1993 to 1995

before they were transferred to Singapore Airlines, and two Fokker F70 from 1995 to 2000.

It began replacing its Boeing fleet with Airbus aircraft when the first Airbus A320-200

arrived in 1998, and retired all Boeing aircraft a year later. On 20 December 2006, SilkAir

signed an agreement to purchase 11 Airbus A320-200 aircraft with nine more on option.

These aircraft will be delivered between 2009-2012.
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The SilkAir fleet consists of the following aircraft (as of 29 February 2012)

Table No: 3.1.6.2.1

SilkAir Fleet

AircraftIn

ServiceOrders Options

Passengers

J Y Total

Airbus

A319-

100

1

12 106 118

2 8 112 120

3 8 120 128

Airbus

A320-200

5

4 4

16 126 142

9 12 138 150

Total 20 4 4

3.1.6.3 Incidents and accidents

On 19 December 1997, SilkAir Flight 185, operated by a Boeing 737-300 and

piloted by Captain Tsu Way Ming, plunged into the Musi Riverin Sumatra during a routine

flight from Jakarta to Singapore, killing all 104 people on board. The crash was

investigated by various groups, with different results. The Indonesian NTSC, who were

lead investigators, stated that they were unable to determine the cause, while the U.S.

NTSB concluded that the crash resulted from an intentional act by a pilot, most likely the

captain.
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3.1.7 AIR ARABIA

Air Arabia is a low-cost airline with its head office in the Sharjah Freight Center,

Sharjah International Airport, in Sharjah, United Arab Emirates.

The airline is the first and largest low cost airline in the Middle East, Air Arabia

operates scheduled services to 46 destinations in the Middle East,North Africa, the Indian

subcontinent, Central Asia and Europe to 22 countries from Sharjah, 11 destinations in 10

countries from Casablanca and 5 destinations in 5 countries from Alexandria.

Its main base is Sharjah International Airport where it functions as a low cost

conduit base, similar to low cost airport bases in Europe such a

passenger satisfaction in airline industry

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