Air India - Analysis Report

AKNOWLEDGEMENT

The making of any report calls for contribution and cooperation from many others, besides the individual alone. It is the result of meticulous efforts put in the by many minds that contribute to National Aviation Company of India the final final report report format formation ion.. Severa Severall eminent eminent people people at National

(NACIL) have made valuable contributions to this report through their inputs. I duly Limited  acknowledge my gratitude to each one of them. At last, I would like to acknowledge all those who helped, directly or indirectly, at various areas in completing my project and related study and made my training a wonderful experience.

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TABLE OF CONTENTS

S.No

1. 2. 3. 4. 5. 6.

7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Particulars

Page No.

Executive summary 3 Introduction to the topic 4-10 Introduction to Airlines Industry and company profile 11-18 Benefits provided to employees 19-32 Productivity Linked Incentives 33 Comparison of different Airline companies with34-36 AIR INDIA (NACIL) IT section in AIR INDIA (NACIL) Corporate Objectives. Research Methodology. Data Analysis Findings and Analysis Conclusion Recommendations Limitations Bibliography. Appendices

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37-39 40 41-43 44-68 69 70 71 72 73 74-76

EXECUTIVE SUMMARY This Project aims to study: the strategies that AIR INDIA (NACIL) is implementing to retain its employees, and to compare CRM strategies of NACIL with other Airlines Companies. My stud study y was was conf confin ined ed to HR and and Comm Commer erci cial al Depar Departm tmen entt of AIR AIR INDI INDIA. A. Unde Underr HR 

department I was studying all policies that NACIL is implementing to retain its employees and under Commercial Commercial department department I studied studied CRM strategies strategies related related to customers. This study has conducted to know the effectiveness of CRM strategies for internal as well as external customers of AIR INDIA (NACIL).This study focuses on improvement in existing CRM strategies of the company. It also aims to study the success of existing policies towards relationship building, internal marketing, most preferred policy, satisfaction level of employees. This project has started with study of the organization to have a fair idea about work  culture. I conducted a survey through questionnaire, interview and also got information from collecting   the   secondary   data da ta   available.   A   structured   non-disguised,   questionnaire   was formulated in order to gather primary information from the employees. The first approach to find out the right information about different policies is through verbal talking to employees whether  that person is related to my area of study or not. Then after collecting all the information employees further gone through to fill up the questionnaire. In the present time, AIR INDIA (NACIL) is a very good employer as it has just 6% attrition rate. Most of the employees are satisfied with the organization. But work culture of  NACIL should improve to overcome with so many hurdles that this company is facing now a days.

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INTRODUCTION TO THE TOPIC AIR TRAVEL INDUSTRY:

Aviation Industry in India is one of the fastest growing aviation industries in the world. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full service airlines and low cost carriers. Private airlines account for around 75% share of the domestic aviation market. Earlier air travel was a privilege only a few could afford, but today air travel has become much cheaper and can be afforded by a large

 

number

 

of

 

people.

The origin of Indian civil aviation industry can be traced back to 1912, when the first air flight between Karachi and Delhi was started by the Indian State Air Services in collaboration with the UK based Imperial Airways. It was an extension of London-Karachi flight of the Imperial Airways. In 1932, JRD Tata founded Tata Airline, the first Indian airline. At the time of  independence, independence, nine air transport companies companies were carrying both air cargo and passengers. passengers. These were Tata Airlines, Indian National Airways, Air service of India, Deccan Airways, Ambica Airways, Bharat Airways, Orient Airways and Mistry Airways. After partition Orient Airways shifted

 

to

 

Pakistan.

In early 1948, Government Government of India establish established ed a joint sector company, company, Air India Internatio International nal 4

Ltd in collaboration with Air India (earlier Tata Airline) with a capital of Rs 2 crore and a fleet of three Lockheed constellation aircraft. The inaugural flight of Air India International Ltd took  off on June 8, 1948 on the Mumbai-London air route. The Government nationalized nine airline companies vide the Air Corporations Act, 1953. Accordingly it established the Indian Airlines Corporation (IAC) to cater to domestic air travel passengers and Air India International (AI) for  international air travel passengers. The assets of the existing airline companies were transferred to these two corporations. This Act ensured that IAC and AI had a monopoly over the Indian skies. skies. A third third government-o government-owned wned airline, airline, Vayudoot, Vayudoot, which provided feeder services between smaller cities, was merged with IAC in 1994. These government-owned airlines dominated Indian

 

aviation

 

industry

 

till

 

the

 

mid-1990s.

In April 1990, the Government adopted open-sky policy and allowed air taxi- operators to operate flights from any airport, both on a charter and a non charter basis and to decide their own flight schedules, cargo and passenger fares. In 1994, the Indian Government, as part of its open sky policy, ended the monopoly of IA and AI in the air transport services by repealing the Air  Corporations Act of 1953 and replacing it with the Air Corporations (Transfer of Undertaking and Repeal) Act, 1994. Private operators were allowed to provide air transport services. Foreign direct direct investment investment (FDI) (FDI) of up to 49 perce percent nt equit equityy stak stakee and NRI (Non (Non Resi Reside dent nt India Indian) n) investment of up to 100 percent equity stake were permitted through the automatic FDI route in the domesti domesticc air transpo transport rt service servicess sector. sector. Howeve However, r, no foreig foreign n airlin airlinee could could direct directly ly or  indirectly

 

hold

 

equity

 

in

 

a

 

domestic

 

airline

 

company.

By 1995, several private airlines had ventured into the aviation business and accounted for more than 10 percent of the domestic air traffic. These included Jet Airways Sahara, NEPC Airlines, East West Airlines, ModiLuft Airlines, Jagsons Airlines, Continental Aviation, and Damania Airways. But only Jet Airways and Sahara managed to survive the competition. Meanwhile, Indian Airlines, which had dominated the Indian air travel industry, began to lose market share to Jet Airways and Sahara. Today, Indian aviation industry is dominated by private airlines and these include low cost carriers such as Deccan Airlines, GoAir, SpiceJet etc, who have made air  travel

 

affordable.

Airline Airline industry in India is plagued plagued with several problems. problems. These include high aviation aviation turbine fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid fleet expansion, and 5

intense price competition among the players. But one of the major challenges facing Indian aviation industry is infrastructure constraint. Airport infrastructure needs to be upgraded rapidly if Indian aviation industry industry has to continue its success story. Some steps have been taken in this direction. Two of India's largest airports-Mumbai and New Delhi-were privatized recently. Two Greenfield airports are coming up at Bangalore and Hyderabad in southern India. Investments are pouring into almost all aspects of the industry, including aircraft maintenance, pilot training and air cargo services. The future prospects of Indian aviation sector look bright.

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CRM IN AVIATION

“CRM is a customer-focused business strategy designed to optimize profitability, revenue and customer satisfaction."

Why should Airlines do CRM?

Anything else ? 

50  60% of customers are not profitable and customers providing less than 20% of the profit potential consume 60  80% of front office support

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The cost of acquiring a new customer is 6 times the cost of selling to a current customer 

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69% of custom customers ers leave leave becaus becausee of poo poorr servic service. e. Only Only 13% left becaus becausee of produc productt dissatisfaction and 9% because of price.

The Aviation horizon in India is becoming increasingly competitive.  Airlines need to stay more customers focused and employ effective CRM regardless of whether they are PSUs, full-service providers, Low-Cost Carriers (LCCs) or innovators. 7

Need for a Customer-focused Initiative (i)

Trav Tr avel el is beco becomi ming ng a ‘Comm ‘Commodi odity’ ty’

Increased Increased economic activity activity has meant that more and more people are travelling travelling for  business as well as leisure purposes.  The situation today is such that travel, overseas as well as domestic, has become so common and prevalent that it can be easily termed a ‘commodity’. (ii) (ii)

Mass Mass Marke Marketin ting g is ‘Dead ‘Dead’’

The vast number of options and choices available to a Customer and the explosion of  information have meant that every customer is having individualized needs which are unique and cannot be generalized.  Today, every customer expects the Marketer to cater to his / her own needs.  Hence, the era of Mass Marketing Marketing is almost almost dead.   The need of hour is one-to-one marketing wherein every customer is taken care of for his / her special needs. (iii) (iii)

Mass Mass Marketi Marketing ng is the ‘Easy ‘Easy Bit’

The comforts which Marketers have enjoyed in the earlier times were mainly because of the generali generalizat zation ionss which which were were made made while while addres addressin sing g custom customer er needs. needs.   One advert advertisi ising ng messag messagee or campai campaign gn was thought thought to be suffic sufficien ientt for reaching reaching the masses, making it easier for the Marketers.

(iv)

Its about about ‘Revenu ‘Revenue’ e’ and ‘Compe ‘Competiti titive ve Edge’ Edge’

The increasing demands of customers and the stakeholders has meant that costs as well as prices have to be contained on one hand and on the other the revenues need to be increased for gaining a sustainable competitive advantage over the competitors.

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360 Degree Customer view: Source – Magazine

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ABOUT “SIMPLIFYING THE BUSINESS” (StB)

In this rapidly changing world the biggest challenge an Industry face is to keep pace with the increasing customer’s demands for services and at the same time achieving the targets of cost reductions which are so much essential for revenue maximization.

The Aviation Industry has been both the driver as also the sector, which has been affected most by the sweeping waves of globalization.  Today, more than ever before, the passenger traffic is touching new highs as business / leisure travel is rapidly increasing.

To face the challenges, more than anything else, the Air Transport Industry needs change. Mounting losses, high oil prices and lower fares have forced Airlines to rethink current models and re-engineer the business. Efficiency is the battle cry as air transport races to become a low cost Industry.  The challenge to find cost savings in the Industries complex process, whilst, at the same time, enhancing convenience for the consumer.

As a result, in 2004 the CEOs of IATA’s member Airlines mandated its association to lead in Industry wise programmes designed to ease the transport of passenger and freight and deliver $ 6.5 billion in annual Industry savings. It’s called “SIMPLIFYING THE BUSINESS”

‘Simplifying the Business’ is comprises of five projects that together form an                 to-end simplified travel process : -

1. 100% Electroni Electronicc Ticketing Ticketing by the end of 2007 2007 (ET) (ET) 2. Common use self-service self-service kiosks for for check-in check-in (CUSS) (CUSS) 3. Bar-coded boarding boarding passes passes (BCBP) 4. Radio frequency frequency identification identification for baggage baggage handling handling (RFID) (RFID) 5. IATA e-freight e-freight – freeing freeing cargo cargo of paper by by the end of of 2010 10

Out of the five I.T. initiative taken by IATA, Electronic Ticketing (ET) is the most critical it of  huge importance to passengers, will deliver US $ 3 billion in savings, and has a fast approaching deadline.  The ease of issuing tickets changing travel plans, making last minute travel decisions and the elimination of lost tickets are compelling consumer benefits.  E-Ticketing is the basis of  other passenger services such as common use self-service check in and the ability to print bar  coded boarding passes via the internet.

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INTRODUCTION TO AIRLINES INDUSTRY AND COMPANY PROFILE

During the 1980s and 1990s, the airline industry underwent significant change. The industry, which had been heavily regulated and controlled, was liberated fro m governmental oversight and released to the vagaries of the marketplace in 1978. What followed was a period of evolution and metamorphosis that changed the nature of flying forever. At the same time, serious safety questions arose. DEREGULATION: When the firsts firsts airlines appeared after World War I, fewer than six thousand thousand passengers a year  traveled by air. By the 1930s, the Big four- Eastern Airlines, United Airlines, American Airlines, and Trans World Airlines (TWA) - dominated commercial air transport. These companies had garnered garnered exclusives exclusives rights from the federal government to fly domestic domestic airmail airmail routes, and Pan American (Pan AM) held the rights to international routes. The hold of these four airlines on their lucrative contracts was virtually unchallenged until deregulation in 1978. Even after the formation of the Civil Aeronautics Board (CAB) in 1938, formed to license new airlines, grant new routes, approve mergers, mergers, and investigate investigate accidents, accidents, the Big Four and Pan Am continued continued to be guaranteed permanent rights to these routes. Infact, no new major scheduled airline was licensed for the next four decades. In October 1978, Congress passed the Airline Deregulation Act (49 U.S.C.A. § 334 et seq.), ending the virtual monopoly held by the Big four and Pan Am. The government’s goal was to promote competition within the industry. The act gave airlines essentially unrestricted rights to enter new routes without CAB approval. The companies could also exit any market and raise and lower fares at will. The immediate effect of deregulation was a drop in fares an and increase in passengers. New cutrate, no-frills no-frills airlines, airlines, such as People Express Airlines Airlines and New York Air offered travelers travelers the 12

lowest fares ever seen in the industry. Forced to compete to fill their planes, the larger companies lowered their prices as well. Then the oil-producing countries in the Middle East formed a cartel and raised the price of jet fuel 88% in 1979 and an additional 23% in 1980. Combined with tumbling fares and increased passenger loads, the higher cost of jet fuel caused airlines’ profits to drop. Labor strike also affected the industry in the early days following deregulation. In 1981, after  years of working under stressful conditions made worse by deregulation, the professional Air  traffic controllers Organization (PATCO) called a strike, demanding shorter working hours and higher pay. The union expected support and cooperation from the Reagan administration because of a sympathetic letter President Ronald Reagan had sent to PATCO when he was campaigning for the presidency. In the letter, he pledged to whatever was necessary to meet PATCO’s needs and ensure the public’s safety. But Reagan ordered the strikers to return to work within three days or be fired. Most did not return. The Federal Aviation Administration (FAA) ordered all carriers to temporarily reduce their number of flights by one-third. Newer and smaller carriers found themselves increasingly unable to gain access to lucrative routes. Rebuilding the air traffic controller force took years during which landing slots at 5he largest airports remained restricted and small carriers unable to compete, simply abandoned their attempts to break into the larger  markets. To some extent, competitive pricing actually had the opposite effect of what the deregulators intended. When the small “upstart” companies offered extremely low fares, the larger companies responded responded aggressively. aggressively. For example, example, in 1983, People Express announced announced $99 round –trip –trip fare between Newark, New Jersey and Minneapolis-St. Paul. Northwest Airlines, which had always domina dominated ted the Twin Twin Cities Cities market market,, undercu undercutt People People by instit instituti uting ng a$95 fare for the same same destination and scheduling extra departures around People’s. As a result, people decided it could not compete and withdrew from the market. Passengers enjoyed the benefit of lower fares, but only for a short time before the competitive effect faded and high fares returned. When deregulation brought competitive pricing, the large carriers began to realize that it was not profitable for them to do business the way they had in the past. The first major change they made was to abandon the practice of crisscrossing the continent with nonstop flights to many different cities. Instead the major airlines scheduled most of their flights into and out of a central point of  hub, where passengers might need to change to different flight to complete their journey. One airline controlled most of the reservation desks and gates at a particular hub- for instance. United 13

in Chicago, Northwest in Minneapolis-St.Paul, America in Dallas–Fort worth, and Delta in Atlanta. For this reason, and because passengers tend trod is like changing carriers in the middle of a trip ,the dominant company in a hub had a tremendous advantage over the competition in influe influenci ncing ng what what carri carrier er a passen passenger ger would would choose choose .By 199 1990, 0, two-th two-third irdss of all domest domestic ic passen passenger gerss travel traveled ed though though a hub city city before before arrivi arriving ng   at their their final final desti destinat nation ion .of those passengers, eight out of ten remained on the same airline throughout their journey .By 1992 , there were at least twelve “fortress “fortress hubs” or airports airports where one airline airline controlled controlled more than 60 percent of the traffic .Passengers who flew out of these hubs paid over 20 percent more than they would have for a comparable trip out of an airport that was not a hub. After deregulation, the air lines also came to realize that needed a more efficient way to book  reservation and issue tickets. It is difficult to imagine, in these days of highly sophisticated computers and split-second communications, that until the late 1970s and early 1980s airline schedules were contained in large printed volumes, reservations were taken over the telephone and tailed manually at end of each day , and tickets were written by hand . to streamline this process the large companies initially proposed a joint computer system , listings schedules and fares   .the   justice   department   objected   on   the   grounds   that   such   a   system   would anticompetitive and would violate the Sherman Anti-Trust Act (15 U.S.C.A. §  1 et seq. [1890]). Instead, each airline developed its own computer system and entered data in a manner that unfairly biased travel agents ‘choices in favor of the carrier that owned the system. Though skillful manipulation of the data, the airlines were able to put competitors at a disadvantage. For  example, the airline that owned the system might enter the data so that all its flights to a particular destination appear on the screen before b efore any flights of a competitor. In a future attempt to win loyalty from passengers, the large airlines instituted frequent-flier  programs, which awarded free tickets to travelers after they logged a certain number of miles flown with the company. The combination of hubs, central computer reservation systems, and frequent-flier programs made the major airlines almost invulnerable in large markets. Deregulati Deregulation on also brought a period of financial upheaval and an epidemic epidemic of “merger “merger fever”. A number of companies ceased doing business between 1989 and 1992, and still other merged with stronger, more aggressive companies. Among the companies that disappeared from the skies were were Easter Eastern. n.   Pan Piedmo Piedmont nt and Midway Midway Airli Airlines nes.. USAir USAir and Northw Northwest est requir required ed cash cash infusions though cooperative arrangements with foreign airlines. Even financially strong carriers 14

such as United and American lay off employees and abandoned plans to p0urchase new aircraft, which added to the woes of the depressed aerospace industry. By 199 1993, 3, the the indus industr try y bega began n to rebou rebound. nd. Cont Contin inent ental al Airl Airlin ines es and and TWA TWA emer emerge ged d from from bankruptcy, and a few small carriers, such as Kiwi International, formed by  former Eastern Pilots, responded to the public’s demand for low fares and began to make incursions into the established markets, although they generally shied away from directly challenging the giants. Older carriers for the most part chose to stay with their hub-and-spoke systems, and several, including Northwest, Continental, and TWA, gains concessions from their unions that helped them emerge from apparently imminent financial ruin. The mergers and buyouts of the 1980s 1 980s were often accomplished in an atmosphere of hostility and distrust. Charges of predatory pricing and other unfair business practices were leveled by one carrier against another. During the 1980s, the Justice Department’s Antitrust Division made a number of grand jury investigat investigations ions into alleged alleged anticompeti anticompetitive tive activity by the major airlines, airlines, but no indictments were handed down. However, the companies that survived did not emerge unscathed. Many of the acquisitions were leveraged buyouts that left the reconstituted companies heavily in debt. With profits insufficient to cover their enormous debt loads, the companies frantically competed for business, engaging in fare wars that produced a dizzying array   of  pricin pricing g plans plans with with equall equally y numero numerous us and confusi confusing ng restri restricti ctions ons.. Some of the tactic tacticss were were questionable, but, again, not clearly illegal. In 1993, American Airlines was sued by Continental and Northwest for alleged predatory pricing during a 1992 fare war. The jury took just over two hours to return a verdict in favor of o f American. By 1993, a creative new solution to the airlines’ financial woes began to emerge. Northwest avoided bankruptcy when its unions agreed to wage concessions in return for part ownership of  the airline. Then, in1994 after seven years of negotiating, employees of United gained majority control control of their company in return for deep pay and benefits benefits cuts. Secretary of Labor Robert B. Reich commented that other financially troubled companies would undoubtedly follow suit: “From here on in, it will be impossible for a board of directors to not consider employee ownership as one potential business strategy”. However, dome industry analysts doubted that employee ownership would be effective in the long run because of inherent conflicts between labor and management, or between different labor groups. “It can’t work,” declared former  Chrysler chairman Lee A. Iacocca. “What do you think will happen when n it’s a choice between employee benefits and capital investment?” 15

Proponents of deregulation are confident that the changes accompanying it will result in a stronger, more stable, and efficient industry, better reequipped than ever to serve the needs of the flying public. Others maintain that at least some degree of regulation is needed to guarantee safety and fair competitive practices.

SAFETY:

In troubling criticism of deregulation is that aggressive competition has forced airlines to cut corners, resulting in safety lapses. In 1990, Eastern Airlines was handed a sixty-count federal indictment charging it with shoddy and dishonest maintenance practices. The indictments came after years of complaints by mechanics for the financially troubled airline who claimed that pressures pressures to cut costs led to maintenance maintenance shortcuts shortcuts and falsification falsification of maintenance maintenance records. In January 1991, Eastern ceased operation. Critics contend that Eastern was hardly alone in its cavalier approach to safety. They charge that the FAA is understaffed and poorly managed and that money shortages have caused all the airlines to relax safety standards. They point not only to increased pressured on the labor force but also to companies’ reluctance to replace their aging fleets, the congestion of airspace caused by increased air travel, crowded hub airports that create security risks ,and  overworked and sometimes poorly trained air traffic controllers. Yet, statistically, passengers are no more likely to die in a plane crash since deregulation than they were before it. Still, critics maintain that, despite the airlines’ and government’s efforts to assure the traveling public to the contrary, air  safety is in need of substantial improvements. Many critics feel that at least part of the problem lies in the dual role of the FAA. Charged simultaneously with promoting the economic health of the aviation industry and fostering safety, the agency is often at odds with itself. In addition, the FAA’s budget was cut and the number of  inspectors reduced in the 1980’s, the same period which the number of passengers multiplied and the number of air traffic controllers was reduced. Furthermore, unions, which stand to benefit from the increased scrutiny and higher standards imposed by the FAA continue to be major  instigators foe a change. However, even neutral commentators have suggested that it is time to impose some degree pf regulation in the form of stronger FAA oversight, on the industry. In fact, the FAA has been accused of suffering from a “tombstone mentality” that caused the agency to delay acting on safety concerns until negative publicity generated by a crash forces the issue. Even Even after after safety safety measur measures es are recomm recommende ended d by the Nation National al Transp Transport ortati ation on Safety Safety Board Board 16

(NTSB), the agency charged with investigating accidents, the FA has been criticized for not always following through. Aging aircraft became a major concern during the late 1980s and early l1990s. In 1988, an Aloha Airgroup Boeing 737-200, purchased in 1969, lost the top of its fuselage while flying at twentyfour thousand feet. A flight attendant was immediately sucked out of the plane and plunged to her death. The plane made a harrowing emergency landing, but not before sixty-five passengers suffered injuries, some serious. Congress responded in 1991 by passing the Aging Aircraft Safety Act (49 App.>S>C>A 1421 note), which requires airlines to demonstrate that their older  planes are airworthy. Critics claim that enforcement of the law has been lax and that it ignores other compelling reasons to replace aging aircraft, such as the availability of newer fire –  retardant seat and of updated seats designed d esigned to be more resistant to the impact of a crash. Concerns over airline safety became even more acute in the early 1990s with a series of fatal crashes. The Boeing Company, a major producer of aircraft predicts that the number of jet crashes worldwide could double by the year 2010 if accident rates of the early1990s continue. Such a projection strikes fear into the hearts of the flying public. However, according to David R. Hinson, the federal aviation administrator, flight safety is not a simplistic science that lends itself to easy solutions.” Flight safety experts point out that all and flight attendants, most airlines now prohibit smoking on all domestic flights and on many international flights as well. Air  quality was again questioned in 1993 when it was revealed that, as a cost saving measure, many airlines were circulating fresh air into their aircraft less frequently than they had in the past. This led to compla complaint intss by passen passenger gerss and crew crew of headach headaches, es, nausea, nausea, and the transm transmiss ission ion of  respiratory illnesses. Although the FAA conceded that circulating more fresh air would be beneficial, it backed off from requiring airlines to do so because of the cost involved. The Safety of babies and toddlers on airplanes was investigated after it was shown that a number  of them suffered injuries, some serious or fatal, during incidents that did not injure their parents. Unlike adults and their luggage, children under age two are not required to be secured on an airplane but rather may be held on an adult’s lap. These “lap babies” are often ripped from the adult’s grasp during turbulence or crashes. In 1994, Representatives Jolene unsoeld, D-wash., and Jim Ross Lightfoot, R-Iowa, introduced a bill that would have required the use of child safety restraints on commercial flights .however, the measure, which was supported by the Association of flight attendants. NTSB, Air Transport Association, Aviation Consumer Action Project, and Air Line Pilots Association, was opposed by the FAA and eventually defeated. An 17

FAA spokesperson, testify in opposition to the bill, said the FAA’s research indicated that if all

children  who  needed   them  were  placed  in   child  safety  seats,  the  airlines  would   approximately one life over a ten –year period, and the children’s families would save about $2.5 billion. billion. A study conducted conducted at Harvard Medical School estimated estimated that one infant a year could be saved through the use of safety seats. The sponsors of the bill vowed to continue to press for  more stringent safety standards for babies. Safety concerns will continue to plague the airline industry, even though the FAA assures the flying public that, statistically, at least, flying a major airline in the United States is far safer than driving on an interstate highway. Questions persist about the FAA’s effectiveness in overseeing air safety. And financially strapped airlines, which posted $12.8 billion in losses from 1990 to 1994, must make difficult risk-benefit analyses when contemplating new safety measures. Some critics such as Ralph Nader, who initially supported deregulation, are now calling for  limited government intervention to ensure safety. However, experts warn that the U.S airlines system system.. Which Which is alread already y extrem extremely ely safe, safe, probab probably ly can never never be comple completel tely y withou withoutt risk. risk. Accord According ing to Stuart Stuart Matthe Matthews ws , presid president ent of the fligh flightt Safety Safety Foundat Foundation ion,” ,” if the public public absolutely demands that flying be totally safe, you are going to have to ban flying.” Given the taking a calculated risk and not flying at all, Americans, who take their lives into their hands each time they drive, will probably continue to trust the statistics and take their chances. What form form the indust industry ry will will assume assume when when the deregul deregulati ation on dust dust finall finally y settle settless remain remainss an open open question.

ABOUT INDIAN AIRLINES:

HISTORY:

Indian Airlines was constituted as a corporation under Air Corporation Act, August 1953.It is wholly owned corporation of the government of India and is a product of nationalization of the existi existing ng privat privatee airlin airlines es operat operating ing schedul scheduled ed air servic services es within within India India and betwee between n India India and 18

Burma, Nepal, Ceylon, Pakistan and Afghanistan. The Airlines, which merged and integrated to form Indian Airlines, were:



Airways (India) Limited.



Air India (operating domestic service only)



Air services of India Limited



Deccan Airways Limited



Himalayan Airways Limited



Bharat Airways Limited

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Indian National Airways



Kalinga Airways Limited

Before 1953, i.e., before these Airlines merged to form Indian Airlines, there were no set rules and standards of operations of the Airlines. The operations mainly were competition oriented and the result of which was that every Airlines wanted to be the cheapest one. Thus resulted in almost all the Airlines Airlines did not have enough enough money money to mainta maintain in the Aircraft Aircrafts. s. They They were were presen presented ted an excellent example of unhealthy competition. Ultimately the Govt. took over by passing the Air  Corporation Act and Indian Airlines come into being. The affairs of the corporation are conducted by a board of Directors.

Indian Airlines is one of the public sectors corporations in India. A statutory corporation like Indian Airlines is formed with definite objectives in th interest of the public through based on preset principles. OBJECTVE FUNCTIONS OF INDIAN AIRLINES:

It shall be the function of the corporation to provide safe, efficient, and adequate, economical and properly co-ordinate air transport services whether domestic or international or both. 19

Corporation shall so exercise their power as to secure that air transport service are developed to the best advantage and in particular, so exercise their power as to secure that the services are provided at reasonable charges. The Act provides for the constitution of a Board of directors, which may exercise all such power and do all such acts and things as may be exercised or done by the corporation under this act. The Board of Directors shall consist of a chairman cum Managing Director to be appointed by the Central government and not less than eight and not more than fourteen other Directors to be appointed by the Central government.

Indian Airlines is a public utility service under the Industrial Disputes Act 1947 has to work in the interests of the public. In view of this, the corporation is accountable to the public through the Govt. and parliament for its activities. This control is two fold:



To see that corporation does not deviate from its objectives.



To have financial control because the funds of the corporation are derived from public funds.

The credit of launching the first real effective internal air services in India goes to Tata sons who from 15 October 1932 began operating air mail services between Karachi and madras once a week  with a single engine aircraft. Indian National airways established in December 1934 an air service between between Karachi Karachi and Lahore linking linking with imperial imperial airways service at Karachi. Karachi. In 1934 Tata sons doubled its weekly frequency on the Karachi-madras route and a weekly service between Bombay and Trivandrum with a halt at Goa and Cannannore in Kerela. In 1937 a bi weekly service was operated between Bombay and Delhi via Indore, Bhopal, and Gwallior. India national airways launched their venture by establishing an air link from Calcutta to Dhaka and Rangoon. A third company, air services of India came into existence ex istence in 1937-38.

In 1960, the logo for Indian airlines was selected which was based on golden section of ancient Greeks. “A” had been italicized to suggest speed and the truncation of first stroke indicates movement while the second emphasized on reliability. 20

The forward surging of the symbol was intended to show the “looking ahead” characteristic and the orange colour gave vibrancy and purity.

The Logo has now been changed and the “Wheel of konark” which is replica of the sun now symbolizes Indian Airlines.

Amalga Amalgamat mation ion of Air India India Limite Limited d and Indian Indian Airlin Airlines es Limite Limited d with with Nation National al Aviati Aviation on Company of India Limited: The Government of India, on 1 March 2007, approved the merger of Air India and Indian Airlines. Consequent to the above, a new Company viz National Aviation Company of India Limited Limited (NACIL) was incorporated incorporated under the Companies Companies Act, 1956 on 30 March 2007 with its Registered Office at Airlines House, 113 Gurudwara Rakabganj Road, New Delhi. It has been decided that post merger, the new entity will be known as “Air India” while “Maharaja” will be retained as its mascot. The logo of the new airline will be a red coloured flying swan with the “Konark Chakra” in orange placed inside it. The flying swan has been morphed from Air India’s characteristic logo “The Centaur” whereas the “Konark Chakra” was reminiscent of Indian’s logo. The Corporate Office of NACIL will be at Mumbai This new AIR INDIA is………

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……here in international and domestic market with this new image and logo.

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BENEFITS TO EMPLOYEES

National Aviation of India Limited provides benefits to its employees under two categories:

I) STATUARY STATUARY BENEFITS BENEFITS::

a) Workmen Compensation Act, 1923 :

In case of a temporary or permanent injury, caused to an employee while in service, the organization has to provide the compensation to the employee.

b) Provident Fund Act, 1925 :

This benefit is given to the employee after retirement from the organization.

c) Wages Act,1936 :

Earlier wages were not paid on time. According to this act, the wages and salaries will be paid on fixed time and all the deductions dine would be told to the employees.

Act,1947: d) Industrial dispute Act,1947: According to this act, a committee known as works committee is formed which deals with the welfare of the employees at the grass root level. The members of this committee are 50% from the employer’s side and 50% from the employee’s side.

e)  Employees State Insurance Act, 1948:

23

According to this act, if the employee or his family members are sick then the company looks after their health i.e., most of the money is given by NACIL.

f)  Factory Act, 1948: This act takes care of the service conditions, work environment etc. given to the employees. It also keeps a check on the working hours and action is taken whenever the regulations are violated.

g)  Air Corporation Act, 1953: A new enactment was made in 1953 where there was a provision for  problems regarding labor relations. Here 50% participants are employer’s side and 50% from employee’s side.

h) Provident Fund Miscellaneous Act, 1953: In the previous provident fund act, there was no provision for drawing money before retirement. According to modified act, if the money is refundable, six times of the provident fund salary can be withdrawn which can be recovered in 3 years in 36 installments.

Act,1972: i) Payment of Gratuity Act,1972: NACIL can pay a maximum of 3.5 lakhs as gratuity. This is statutory and deviation is possible.

II) NON STATUTORY BENEFITS:

24

Scholarships: a) Scholarships: These are provided to the wards of the employees. It basically starts from class II till the post graduation level e.g. MBA, Engineering etc. The amount of scholarship given to the employees for their children is on yearly basis which is shown in the table below:

Particulars

Amount (in RS.)

Class II - Class IV Class V – Class VIII Class IX – Class XII For Graduates For Diploma Holders For Engineering/MBA etc.

1 25 2 50 3 75 5 00 6 25 7 50

passage: b) Air passage: This Non-Statutory welfare facility is entitled for free and discounted passage to travel. It is given to three types of staff: 1. For Permanent staff: It starts after the completion of 1 year. Air passage for the permanent staff is shown in the table below:

Year Yearss for for serv servic icee

Free Free Air Air Tick Ticket etss

Disc Discou ount nt (95% (95%))

Disc Discou ount nt (85% (85%))

1–5 5–7 7 – 10 10 – 20 20 – 25 25 & Above

2 2 2 2 2 2

1 2 3 4 5

3 2 1 -

25

2. For Retired staff: Retired employees with minimum 15 years of service are eligible for this Air passage benefit. This non statuary benefit is shown in the table below:

Years for service

Free Air tickets

Discount (95%)

15 – 20 20 -25 25 & above

1 1 2

2 3 4

Retired Employees are also given this benefit:



Passage for SOL (Staff On Leave) This passage is for the employees and his family.



Passage for SOD (Staff On Duty) SOD is granted additional passage for the purpose of any official work.

3. For Decease Employees :



If any employee dies while service then, he will get Air Passage benefits half of what he was

actually getting while working.



If any employee dies after retirement then, he will get Air passage benefits half of what he was

actually getting after retirement.

26

For deceases employees, Air Passage benefits will be given only to employee’s spouse or children

Note: •

Family  is inclusive of spouse& children

•

Spouse- Husband/ wife

•

Children- Daughter/Son/Daughter-in-law/Son-in-law.

•

Passage year for the 2 years can be combined.

•

Passage year starts from 1st August – 31st July.

•

Food facilities are included in the passage.

c) Housing Colonies: NACIL provides Housing facilities to their employees on the basis of  their grades and as per their seniority level which is shown in the table below:

Designations

Grades

Type of flat

No. of houses

Peons/helper

½

Flat A1

20 0

A

28 8

B C D

48 88 22

Office Assistants /Sen /Senio iorr

 

assistant Superintendent Officers Directors

offi office ce 3/6 7/8 9 9A-15 15 & above

Procedure of giving the Housing Facilities: 

A notification or a form is distributed to all the employees according to their grades.

Note: 27



For the employees who came under grades 1 to 9:-

•

Employees for this grade will get Type of flat A/B as shown in the above table.



For the employees who came under grade 9A:-

•

Employees for this grade get the House facility on the basis of their Joining date for the

particular post.



For the employees who are having their grades 15 &above:-

•

Type of Flat D is given to them.

CRITERIA FOR THE OUT OF TURN ALLOTMENT:



Requesting  applications



Authority is approved by Executive Director 

For Retired Employees: After three months of retirement, employees have to vacate their houses. But if due to some reasons, they are not able to vacate their homes, then, some amount of rent is deducted from their  money as per the market rates. But after some point of time, letter A is given to them in advance for vacating their homes. But if they are still not ready to vacate their homes then Letter B is given to them. And after some point of time Letter C is given to them. If an employee is still not ready then strict action against them is taken. homes: d) Holiday homes: Holiday homes have been established at a number of hill resorts and places of tourist interest. Staff is required to pay the nominal rent for the accommodation. Holiday Home is providing in 4 different regions at different stations which is shown in the table below:

28

REGIONS

STATIONS

Northern Region

Nanital and Dharamshala

Eastern Region

Gangtok  

Southern Region

Kodai Kanal

Western Region

Goa

NOTE: 

Holiday Homes are given for the particular year only.



Facilities for the Kitchen are included.



In winters, Heater facilities are limited if an employee uses the facilities given beyond the limits

then certain amount is charged from them according to the rules and regulations of NACIL.

: AVAILABILITY FOR THE ROOMS 

Particulars

No. of Rooms

For Staff For Officers (19 A)

1 2

Deductions/Charges for the Rooms:

Grades

Amount per day (in Rs.)

½ 3-9 9A-19

25 35 75 29

 Maximum 5 days stay  is given for Dharamshala  Maximum 3 days stay is given for other stations.

Facilities: e) Medical Facilities: Employees are provided free medical facilities, both ambulatory and hospitalization. Fully equipped medical clinics are functioning at all important work places at base stations manned by competent Medical officers. The employees’ families are provided medical facilities under Contributory Scheme on payment of n ominal contribution.

Loans: f) Loans: Basically three types of loans were given to the employees. But now this facility is not given to the employees since 2003-2004 onwards. 

Housing Loans: Loans:

Employees are eligible for grant of housing loan subject to availability to availability of funds after completion of 5years of service. Maximum housing loan can be granted up to Rs. 3 lakhs. 

Vehicle Loans: Loans: Loans are granted to employees for the purchase of cars, scooters and cycles, subject to the availability of funds. Vehicle loan limits are as under:



Vehicle

Amount (in Rs.)

New car Old car New Scooter/ Motor cycle Old scooter/ Old Motor cycl cycle Cycle

75,000/50,000/15,000/6,000/600/-

Miscellaneous Loan: Loan:

30

Employees are also granted miscellaneous loans for meeting various contingencies up to a maximum of Rs. 15,000/-

g)  Group Insurance scheme: On the death of an employee while in service, his family is paid the group insurance, insurance, quantum of which depends on the pay drawn by the employee employee at the time of his demise. This is a non- contributory scheme. The insurance amount varies from Rs. 15,000/- to Rs. 1, 50,000/-

h)  Long service mementos: Employees on completion of 25 years of satisfactory service are awarded long service mementos in recognition of their service. i)  Festival Advance: Festival advance is admissible to all employees on one occasion in calendar  year on Holi/Id-ul-fitr/Dusshera/X-mas festivals. Employees with less than six years of service can avail festival advance only after they furnish a surety of another employee of NACIL who has put at least six years in service in NACIL. The advance payable is Rs. 3,000/- and Rs. 4,000/depending upon the employee’s basic pay and is recovered in 10 1 0 monthly interest free installments.

Studies: j) Financial assistance to Employees pursuing higher Studies: Employees who wish to pursue higher  studies are granted financial assistance subject to a maximum of two courses in the entire service of the employee. Employees are reimbursed tuition fee, admission fee, examination fee and an amount up to Rs. 300/- for the purchase of books.

society: k) Cooperative Thrift & Credit society/ Fair price shop/ Death benefit society:

31

The company grants various facilities, to the above societies, formed by the employees from time to time.

l) Employees working at the airports at Delhi, Delhi, Mumbai, and Kolkata are provided free/subsidized free/subsidized transport from various rallying points.

m)

Retirement gifts : A gift of worth Rs.3000/- is given to the employees at the time of their retirement only

after the completion of their 25 years of satisfactory service.

n)  Community centers: NACIL has its own community centers at IA colony (Vasant vihar). It provides community center facilities not only to the employees but also to their relatives and family members at the nominal charges mentioned below: Total charges for employee’s own family is Rs. 5250/- per day and for the other relations is Rs. 14000/- per day shown in the table below:

For employee’s own family:

Rent Electricity charges Water charges Security (refundable) Total Amount

Rs. 1250 Rs. 1000 Rs. 500 Rs. 2500 Rs. 5250/-

For employee’s other relations: Rent Electricity charges Water charges

500 0 1 000 50 0 32

Security ( Refundable) Total amount

7 500 14000/-

If an employee want community centre for 2 days or more than 2 days then he has to pay the charges doubled for what he was actually paying for one day in both the above cases. But the security amount remains the same.

A care taker is appointed for the proper supervision of the occasions. After the completion of the auspicious occasion, an employee needs a NOC i.e. No objection certificate from the welfare associations in order to prove that he has not done any harm during the time of get together. o) Types of leaves given to the employees: 

Casual leave: leave:  An employee is eligible for Casual leave to the extent of 10 days in a financial

year year eith either er for for the the priv privat atee affa affair irss or on grou grounds nds of sickn sicknes ess. s. Th This is leav leavee cann cannot ot be not be accumulated. Normally not more than 3days casual leave is granted at a time in two consecutive months months.. Casual Casual leave leave can be combin combined ed with with extrao extraordi rdinar nary y leave leave i.e. i.e. leave leave without without pay and allowances. Casual leave cannot be combining with any other kind of leave except when an employee who has exhausted the full period of sick leave due to him requires more leave on grounds of sickness he can be granted privilege/casual leave in continuation of sick leave.

Privilege

Leave: Leave:  An employee is eligible for 30 days privilege leave for every 11

months of service. This leave is accumulated upto 300 days.  The leave account of an employee is written up in the retrospect only once for each period of 11 months service by adding 30 days to the opening balance as on first day of the period and deducting there from total leave availed of during the period. Reckoning of leave on pro rata basis is permissible during the currency of period of 11 months service if the balance at the beginning of the period is less than the individual’s leave requirement. Leave on pro rata basis   is calculated at the rate of one day for every 11 days of service; fraction of a day is ignored. The carry over of leave thus worked out and is restricted only to 3oo days and the balance of leave, if any, will be lapse unless the employee has made application for  the grant of leave and the same was refused before the expiry of 11 months period. In such cases the employee may be authorized to carry forward to the next leave period the 33

full amount of leave assessed above provided the number of days of privilege leave carries over by him, and refused in writing owing to extengencies of corporation work.

An  employee  is  allowed  to  encash  Privilege  leave  in  accordance  wit the following conditions: i) The encashment of Privilege Privilege Leave is allowed allowed at the option option of an employee. employee. ii) The maximum number of days for which leave can be enchased half of the privilege leave lying at the credit of an employee on the date of encashment reduced by one years entitlement to be retained at the credit of the employee. iii)Encashment of Privilege Leave shall be allowed only once in a financial year. iv)No iv)No enca encash shme ment nt   of Priv Privil ileg egee leave leave is perm permis issi sibl blee to an empl employ oyee ee durin during g the the peri period od of  suspension from service v) The period of Privilege leave permitted to be encashed is not reckoned for the purpose of  earning privilege leave or any kind of leave. vi)The benefits  of encashment is not admissible to: a) Employees on contract b) Temporary employees c) Apprentices and training d) Employees appointed for specific period/project. e) Employees who resign or whose services are terminated on disciplinary disciplinary grounds. f) Employees on deputation.

A temporary employee although he earns his privilege leave from the date of his appointment, is eligible to avail of the leave only after he has completed 1 year’s service. For the purpose of determining privilege leave entitlement, period of absence on the following types of leave is count as service: a) Casual leave b) Compensatory leave i.e. day off in lieu of attending work on a normal ‘off’ day. c) Sick Leave d) Quarantine Leave

34

e) Special leave granted by the Managing Director to count towards service f) Accident and disability disability leave on full day. g) Special leave for injuries caused during sporting activities.



Sick leave: leave: An Employee is eligible for sick leave of 20 days on half pay, which may

be commuted at 10 days on full pay for each calendar year. Sick leave may be accumulated upto 120 days with full pay for and may be availed   of half pay p ay for double the period i.e. upto up to 240 days. In case of permanent employee who have completed 1 year of services, it is permissible to grant the full period of sick leave i.e. 20 days on half pay or 10 days on full pay, at any time during the year. Temporary Employees with less than a years service is eligible for  grant of sick leave on prorate basis. Sick leave for period exceeding two days is supported by medical certificate from either the Medica Medicall office officerr of the corpor corporati ation on or a medica medicall practi practitio tioner ner (Allop (Allopath athic) ic) duly duly approv approved ed by corporation 

Special Sick leave: leave: An employee suffering from:

a) Tuberculosis b) Leprosy Leprosy c) Cancer  d) Organic heart disease requiring hospitalization and / or prolonged rest in bed. e) Paralysis of vascular, infective or degenerative origin affecting one or more limbs ( but not including paralysis like Ball’s palsy); or  f) Significant Significant mental illness illness treated in government government mental hospital ( in such cases a certificat certificatee from the hospital superintendent or any other  Competent authority of a Govt. Mental hospital empowered to issue such certificate shall be accepted by the corporation subject to the approval of  the same by the Medical Officer of the Corporation. g) On the recommendation of the Medical Officer of the Corporation, Special Sick Leaves may also be granted in cases where the employee is suffering from the following diseases or ailments or  injury requiring hospitalization or prolonged rest in bed.

35

i) Renal (Kidney failure) ii) Hepatic (liver failure) iii) Chronic Corpulmonale iv) Empyma theracis v) Collagen diseases: 

Systemiculus reythemetosus



Polar teritis nodose



Progressive systemic disease



Ploymycsitis



Rheumatoid arthritis



Jomyelinating disease



Injuries to important internal organs



Complication of fractures requiring prolonged hospitalization or rest in bed.



Significant diseases of the nervous system.

Special sick leave on half basics pay may be granted on prorata basis for a fraction of a year4’s service e.g. an employee with one and a half year’s service is eligible for 45 days Special Sick  Leave.



Accident and disability leave: leave:

A)   An employee sustaining an injury caused by an accident arising          out of and the course of his employment or by his illness incurred: 1) during the courses and in consequence of the due performance of the duties assigned to him. 2) in the performance of any particular duty which the effect of increasing his liability of illness beyond the ordinary risk of attending the normal duties assigned to him; may on production of a

36

medical certificate in the prescribed form be granted accident and disability leave upto a maximum of 120 days.

B) During During the period of leave granted granted under sub regulation regulation (A) the employee employee is entitled to his full pay; provided that an employee who is unable to resume duty after the expiry of the leave regulation, may be granted, at the discretion of the Managing Director, an extension of such leave on dull pay for a period not exceeding 274 days, if a medical board constituted by the corporation for the purpose, recommends such extension. The grant of this leave is subject to the condition that the accident or illness is not due to the employees’ negligence or default and that the employee obeys all instructions given by the approved Medical Authority as to treatment during the period of absence. 

Study Leave: Leave: An employee may be granted study leave by the Managing director at his discretion on the merits of each case on such terms and conditions, as he may deem necessary.



Quarantine Leave: Leave: An employee may, on a quarantine certificate be issued by a medical authority approved by the Managing Director, be granted leave of absence from duty for a period not exceeding 30 days. Quarantine leave is to be granted in cases of cholera, small pox, plague, diphtheria, typhus fever, cerebrospinal meniflities and measles. Quarantine leave is not admissible in cases in which an employee himself is suffering from an infectious disease. In such cases the employee is given the normal         casual, sick, privilege leave at his credit.



Maternity Leave: Leave: A female employee is eligible for grant of Maternity Leave on full pay for a period, which may extend upto 135 days.



Paternity Leave: Leave: A male employee is eligible for grant of Paternity Leave on full pay for a period of  15 days during the confinement of o f his wife. 37



Extraordinary Leave: Leave: In exceptional circumstances to be recorded by sanctioning authority and only when other leaves are not admissible under these regulations, a permanent employee or a temporary employee who has completed one year’s continuous service may be granted Extraordinary Leaves i.e. Leave without pay and allowances , the period of which shall not exceed 90 days at a time. This leave is granted at the rate of 30 days for every completed year of service. The period of this leave shall, however not 270 days in the entire period of  service exceed. However, Managing director may on compassionate grounds permit any part or whole of such leave to be treated as leave with pay debitable to the employee’s future leave account. A temporary employee with less than one year’s service is eligible for  grant of extraordinary leave under the above circumstances upto a maximum of 15 days. Any Employee suffering from:



Tuberculosis



Leprosy



Cancer 



Organic heart disease requiring hospitalization and / or p rolonged rest in bed.



Paralysis of vascular, infective or degenerative origin affecting one or more limbs ( but not

including paralysis like Ball’s palsy); or  

Significant mental illness treated in government mental hospital ( in such cases a certificate

from the hospital superintendent or any other  Competent authority of a Govt. Mental hospital empowered to issue such certificate shall be accepted by the corporation subject to the approval of  the same by the Medical Officer of the Corporation. 

On the recommendation of the Medical Officer of the Corporation, Special Sick Leaves may

also be granted in cases where the employee is suffering from the following diseases or ailments or  injury requiring hospitalization or prolonged rest in bed. 

Renal (Kidney failure)



Hepatic (liver failure)



Chronic Corpulmonale



Empyma theracis



Collagen diseases: 38



Systemiculus reythemetosus



Polar teritis nodose



Progressive systemic disease



Ploymycsitis



Rheumatoid arthritis



Jomyelinating disease



Injuries to important internal organs



Complication of fractures requiring prolonged hospitalization or rest in bed.



Significant diseases of the nervous system.



Any other major illness or injury requiring hospitalization continuously for a period of 3 months

or more provided such hospitalization has the approval of the Medical Officer of the corporation.

PRODUCTIVITY LINKED INCENTIVE PLI is provided for the performance of main revenue generation factors, these are: 

Number of customers travel during a time period.



Number of flies.

On the basis of performance of these factors, a part of revenue is provided to its employees. According to PLI: 

Employees of same level will get same level of incentives.



It is based on service quality, timeliness and achievement of task within predetermined time. 39

Main purposes of PLI are: 

To maintain discipline



To avoid strike, walk-outs and other grievances.



To avoid unrest conditions

PLI varies varies year year by year, year, and has differ different ent criter criteria ia for differ different ent for differ different ent categor categories ies of  employees. In relation to PLI settlement, a memorandum of settlement forms time to time and also some agreements have been done periodically (around once in 3 years).These agreements consist all terms and conditions along with amount has to be paid for employees for that period. Parties signature and witness signature get putted at the end of the agreement.

These   agreements   have   been   formed   with   eight   different   unions   under   INDUSTRIAL DISPUTES ACT 1947.

COMPAR COMPARESI ESION ON OF DIFFER DIFFERENT ENT AIRLI AIRLINE NE COMPA COMPANIE NIES S WITH WITH AIR  AIR  INDIA (JET AIRWAYS,JETLITE,KINGFISHER WITH AIR INDIA)

S.NO. FACTORS 1

AIR INDIA

JET AIRWAYS

Armed rmed for force con conces cessio sion

Seni Senio or cit citizen izen con concess cessio ion n

DISCOUNTS: INDIVIDUAL TRAV TRAVE ELERS LERS

40

Blin Blind d pers person on disc discou ount nt

Yout Youth h Fare Fare

Senior citizen discount Cancer patient discount Student concession National Sports person Arjuna awardees Companion free scheme CORPORATE 2

HOUSES SCHEMES:

Corporate Super saver   Super saver scheme

Visit India Fares:

Discover India-7 days pass

Unlimited Travel with our 3 fare fare plans

Disco iscov ver Ind India

A week eek fille illed d with ith wonder nder,, for for just ust USD USD 375 375

Indi Indiaa Wond Wonder er Fair Fair

A twotwo-we week ek jour journe ney y of disc discov over ery y for for only only USD USD 750 750

Spot Fair ABN AMRO Bank Debit

Three weeks of enchantment for only USD 1,000

Card

Jet kids

Amex mex Cob Cobran rand Card ard

Jet Jet Valu alue Pass Pass

Flight Specific Fares Companion Free Scheme Bid and Fly IN-FLIGHT 3

SHOPPING:

Sky Bazaar  

4

CHECK Ins:

E-check in is available a variety of special foods

5

DINNING: IN-FLIGHT

are available available on demand demand

a variety variety of special special foods are available available on demand demand

6

ENT ENTERTA RTAINME INMEN NT:

a varie ariety ty of mus music, ic, Spec Specia iall JetSc etScrreen een 1st 1st   clas class: s:Pe Pers rson onal al Entertain Entertainment ment Appliance Appliancess music, music, movies movies,, sports sports and much more. more. Audio   Vedio   on Dema Demand nd,i ,in n few few airc aircra raft ft e-mag e-magaz azin inee Y   clas classs:Pe :Person rsonal al Entertainment device Inbound theatre

7

Outbound Theatre DIFFERENT   CLASS F, C/J, Y Classes

41

F, C/J, Y Classes

OF SEATES: LOYALTY

Friquent

 

Flier  

8

PROGRAMMES:

Programmed customizati customization on facility facility is

9

CUSTOMIZATION:

available

S.NO.

FACTORS

1

DISCOUNTS: INDIVIDUAL TRAVELERS

 

Jet Privilege Scheme customization facility is available

AIR INDIA

KINGFISHER  

Armed force concession

Group Travel

Blind person discount Senior citizen discount Cancer patient discount Student concession National Sports person Arjuna awardees Companion free scheme CORPORATE 2

HOUSES SCHEMES:

Corporate Super saver Super saver scheme

Corporate Travel Companion offer  

Discover India-7 days pass Discover India India Wonder Fair  Spot Fair  ABN AMRO Bank Debit Card Amex Cobrand Card Flight Specific Fares Companion Free Scheme Bid and Fly IN-FLIGHT 3

SHOPPING:

Sky Bazaar

Air boutique

4

CHECK Ins:

E-check in is available a variety of special foods are available on

5 6

DINNING: IN-FLIGHT

demand a variety of music,

42

a variety of special foods are avai

ENTERTAINMENT: 1st class: class:Per Person sonal al Entert Entertain ainmen mentt Applia Appliance ncess Audio Vedio on Demand,in few aircraft Y class:Personal Entertainment device Inbound theatre Outbound Theatre DIFFERENT CLASS

 

OF

7

SEATES: LOYALTY

F, C/J, Y Classes

8

PRO PROGRAM GRAMME MES: S:

Friq Frique uen nt Flie lier Pro Programm rammed ed

9

CUSTOMIZATION:

 

customization facility is available

43

music, music, movies movies,, sports sports and muc

IT SECTION IN AIR INDIA Air India has a mainframe computer to store all information whether it is related to Domestic or  international market. This IBM ES9000 system works on DB2 and gather information  related to number of passenger travelled, free baggage, excess baggage, cargo, mail, departure time, delay, cancel cancellat lation ionss etc. etc. from from every every corner corner of the world. world. These data data are entere entered d by commer commercia ciall department in on-line mode through a mask generated on daily basis. The system automatically generates messages to the stations which fail to report data. The information thus collected for  previous day is processed in IT on daily bases and made available to the user by means of a user  friendly Query system for retrieval, reference and extraction of various pre-formatted reports based on a wide range of options. This MIS system provides support for DDR( Daily Departure Report) and DFIC (Delayed flight information system). The user departments are Commercial, Finance, Planning and engineering. e ngineering. It provides information for following queries: 

Seat factor information



Load factor information



Capacity utilization



Flights delayed and cancellation



On time performance



Revenue Pax Travelled



Flight uplifted

Daily, monthly and annual reports are also generated by the system. The database is available for  previous 13 months. DATA SOURCES:

44





Commercial department 

On-line data capture based on fill-in mask in PSS system on daily basis.



Off-line data (missing data) on weekly basis.



On-line flight schedule down loaded on daily basis.

Master data maintained in system and updated as and when suggested by concerned department.



Delay codes provided by engineering department.



Rate cargo, mail, excess baggage provided by commercial department.



A/c validation table provided by commercial department. depa rtment.



Flight sector distance provided by Commercial Department.



Flight sector Distance provided by Planning department.

A hard copy of reports on monthly basis is send to user departments. ON-LINE BOOKING SYSTEM:

IBM ES9000

VHI

IB

LOAD BALANCE DBP

IB

ISP WEBSIT E

45

When a customer access to the website of AIR INDIA, through ISP he gets connected to IBE. There are two ISP and two IBE in the system to reduce redundancy. This IBE then connects to VHI Server. This VHI server has already stored data that a customer can access. On the other  hand there is a DBP server and it contains customer data such as booking details, fairs, ticket printing. Data in DBP server is variable and changes according to customers but VHI server data does not change according to customers.

LIMITED ACCESS TO MAINFRAME:

46

IBM ES9000 MAINFRAME

SNA 374 0

DBP

VHI

RESOURCE ACCESS CONTROL FACILITY

This system represents access control to mainframe database. To access Mainframe database user must contain user-id and password. This mainframe has 3740 server and then a SNA firewall to protect its data.

47

CORPORATE OBJECTIVES



To meet the demand for reliable, economic and efficient transport services through high standards of 

service customers and passengers. 

To maximize the essential and strategic communications within India in times of national emergencies

and to be reliable second line defense. 

To maximize passenger satisfaction by improving passenger/cargo services and amenities.



To enhance their period by securing a reasonable return in capital, consistent with Social Objectives.



To foster international tourism in India and contribute to national balance of payment.



To stimulate domestic tourism and internal trade in order to broaden the Indian Air market.



To participate in the development of national aircraft and ancillary industries.



To promote good image of public sector in consonance with national aspirations.

48

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problems. It has understood as a science of studying how research is being done don e scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only he research method/techniques but also the methodology. As we know that for the achievement of any goal, a proper methodology should be adopted.In the same manner for the success of o f a project, it is necessary to have a clear methodology. Therefore, in the research methodology following terms are included:

Research Design



Data at a Glance



Data Collection

RESEARCH DESIGN:

A Research design is purely and simply the framework or plan for the guide’s collection and analyzing of data.

49

Research design is a systematic way to achieve the desired objective in a right manner. It is a blue print used to guide the future course of actions. It may be worthwhile to mention here that a research design is nothing more than the framework for the study. The Research Design decisions happen to be in respect of: 

What is the study about?



What is the study being made?



What will the study are carried out?



What type of data is required?



Were can the required data be found?



How will that data be analyzed?



In what style the report is prepared.

TYPES OF RESEARCH DESIGN:

Exploratory Research Design:

All marketing research projects must start with exploratory research design. This is the preliminary phase and absolute in order to obtain a proper definition of  problem problem at hand. The Exploratory Exploratory study is particularly particularly helpful in breaking breaking broad and vague proble problems ms in to small smaller, er, more more precis precisee sub proble problem m statem statement ents, s, helpfu helpfull in the form form of  hypothesis for future research. Descriptive Research Design:

One simply describes something such as demographic characteristics of  customers who use the products. The descriptive study is typically concerns determining

frequency  with  which  something  acquires.  This  study  is  typically  guided  by  initia hypothesis.

50

Experimental Research Design:

It is defined as a process where event requires in a setting at the discretion of the   experimental and controls are used to identically of the sources in subject’s response.

DATA AT A GLANCE: Primary Data

Secondary Data

DATA COLLECTION: Observation Method Experimentation Method Survey Method

RESEARCH METHODOLOY USED RESEARCH PROBLEM:

“To study the strategies that AIR INDIA (NACIL) is implementing to retain its employees and to compare CRM strategies of  AIR INDIA (NACIL) with other Airlines Companies. OBJECTIVES: 51



To study retention strategies related to Employees.



To study satisfaction level of employees towards retention strategies.



To study CRM strategies those have been implementing for customers.



To find out the effectiveness of  those   those CRM stratégies.



To study CRM strategies of other Airlines companies.



To suggest best suitable CRM strategies after carefully analyzing its policies.



To suggest areas in which NACIL needs need s to improve in terms of customer services.

SAMPLE SIZE:

Fifty  respondents. SAMPLE AREA:

HR and Commercial Department, AIR INDIA (NACIL), Delhi. SAMPLE UNIT:

Existing employees of NACIL, Delhi. SAMPLE TECHNIQUE:

Simple Random Sampling with modification to biased responses. RESEARCH DESIGN:

Exploratory and Descriptive. DATA COLLECTION:

PRIMARY DATA: 

Through Questionnaires



Through Direct Interviews

SECONDRY DATA: 

http://www.airindia.in



http://www.flyingreturns.co.in 52



http://www.google.com



Company agreements & reports



Company brochures, Statements & Circulars.

DATA

 

ANALYSIS

 

EMPLOYEE’S RESPONCES: 1. Frequencies: Statistics

From how long are you with NACIL? N

Valid

50

Missing

0

From how long are you with NACIL?

Cumulative Valid Valid

Less Less than than two two yeares yeares

Freque quency 2

Perc ercent ent 4.0

Valid alid Percen cent 4.0

Percent 4.0

Two to Six years

3

6.0

6.0

10.0

Six to twelve years

7

14.0

14.0

24.0

More than Twelve years

38

76.0

76.0

100.0

Total

50

100.0

100.0

53

FOR 

From how long are you with NACIL? Less than two yeares Two to Six years Six to twelve years More than Twelve years

2. Frequencies: Statistics

Are you satisfied with Welfare policies and PLI scheme of NACIL? N

Valid

50

Missing

0

Mean

1.3600

Are you satisfied with Welfare policies and PLI scheme of NACIL?

Cumulative Valid

YES

Freque quency 32

Perc ercent ent 64.0

Valid alid Percen cent 64.0

Percent 64.0

NO

18

36.0

36.0

100.0

Total

50

100.0

100.0

54

Are you satisfied with Welfare policies poli cies and PLI scheme of NACIL? YES NO

3. Frequencies: Statistics

are you dssatisfied with less leaves? N

Valid

50

Missing

0

Mean

2.0000

are you dssatisfied with less leaves?

Cumulative Valid

no

Freque quency

Perc ercent ent

Valid alid Percen cent

Percent

50

100.0

100.0

100.0

55

are you dssatisfied with less leaves?

no

4. Frequencies:

Statistics

are you dssatisfied with more working houres? N

Valid Missing

Mean

50 0 2.0000

are you dssatisfied with more working houres?

Cumulative Valid

no

Freque quency 50

Perc ercent ent 100.0

Valid alid Percen cent 100.0

56

Percent 100.0

are you dssatisf dssatisfied ied with more working houres?

no

5. Frequencies:

Statistics

are you dssatisfied with less remuniration? N

Valid

50

Missing

0

Mean

1.8800

are you dssatisfied with less remuneration?

Cumulative Valid

yes

Freque quency 6

Perc ercent ent 12.0

Valid alid Percen cent 12.0

Percent 12.0

no

44

88.0

88.0

100.0

Total

50

100.0

100.0

57

are you dssatisfied with less less remuniration?

yes no

6. Frequencies:

Statistics

are you dssatisfied with lack of personal touch? N

Valid Missing

50 0

Mean

1.8400 are you dssatisfied with lack of personal touch?

Cumulative Valid

yes no Total

Freque quency 8

Perc ercent ent 16.0

Valid alid Percen cent 16.0

Percent 16.0

42

84.0

84.0

100.0

50

100.0

100.0

58

are you dssatisfied atisfied with with lack of personal touch?

yes no

7. Frequencies:

Statistics

are you dssatisfied with working environment? N

Valid

50

Missing

0

Mean

1.8000 are you dssatisfied with working environment? environment?

Cumulative Valid

yes no Total

Freque quency 10

Perc ercent ent 20.0

Valid alid Percen cent 20.0

Percent 20.0

40

80.0

80.0

100.0

50

100.0

100.0

59

are you dssatisf dssatisfied ied with with working rking environm ironment?

yes no

8. Frequencies:

Statistics

Up to what extent are you satisfied retention programs(PLI & Welfare)? N

Valid

49

Missing

1

Mean

3.0000

Up to what extent are you satisfied retention programs(PLI programs(PLI & Welfare)?

Cumulative Valid alid

Miss Missin ing g Total

Diss issatis atisfi fieed Somewhat Satisfied

Freq requenc ency 8

Percen cent 16.0

Valid Perc ercent ent 16.3

Percent 16.3

33

66.0

67.3

83.7

Highly Satisfied

8

16.0

16.3

100.0

Total

49

98.0

100.0

Syst System em

1

2.0

50

100.0

60

Up to what extent are you satisfied satisfied retention retention programs(PLI & Welfare)?

Dissatisfied Somewhat Satisfied Highly Satisfied Missing

9. Frequencies:

Statistics

Do your suggeestions and complaints get attention? N

Valid

50

Missing

0

Mean

2.5400

Do your suggeestions and complaints get attention?

Cumulative Valid alid

Never  Sometimes Frequently Always

Frequen uency 9

Perc ercent ent 18.0

Vali alid Perc ercent ent 18.0

Percent 18.0

14

28.0

28.0

46.0

18 9

36.0 18.0

36.0 18.0

82.0 100.0

61

Total

50

100.0

100.0

Do your suggeestions and complaints get attention? attention?

Never  Sometimes Frequently Always

10. Frequencies:

Statistics

Scholarship N

Valid

45

Missing

5

Mean

2.2667 Scholarship

Cumulative Valid

Miss Missin ing g

Frequen uency

Percen cent

Valid lid Perc ercent ent

Percent

Poo r  

14

28.0

31.1

31.1

Fair 

10

20.0

22.2

53.3

Good

16

32.0

35.6

88.9

Excellent

5

10.0

11.1

100.0

Total

45

90.0

100.0

Syst System em

5

10.0

62

Total

50

100.0

Scholarship

Poor  Fair  Good Excellent Missing

11. Frequencies:

Statistics

Air passage N

Valid Missing

Mean

49 1 3.0204 Air passage

Cumulative Valid

Miss Missin ing g Total

Frequen uency 4

Percen cent 8.0

Valid lid Perc ercent ent 8.2

Percent 8.2

7

14.0

14.3

22.4

Good

22

44.0

44.9

67.3

Excellent

16

32.0

32.7

100.0

Total

49

98.0

100.0

Syst System em

1

2.0

50

100.0

Poo r   Not bad

63

Air passage

Poor  Not bad Good Excellent Missing

12. Frequencies:

Statistics

Housing Colonies N

Valid Missing

Mean

48 2 2.7708

Housing Colonies

Cumulative Valid

Poo r   Fair  G oo d

Frequen uency 6

Percen cent 12.0

Valid lid Perc ercent ent 12.5

Percent 12.5

9 23

18.0 46.0

18.8 47.9

31.3 79.2

64

Miss Missin ing g

Excellent

10

20.0

20.8

Total

48

96.0

100.0

Syst System em

2

4.0

50

100.0

Total

100.0

Housing Colonies

Poor  Fair  Good Excellent Missing

13. Frequencies: Statistics

Holiday Homes N

Valid Missing

Mean

49 1 2.6939

Holiday Homes

Cumulative Valid

Poo r  

Frequen uency 5

Percen cent 10.0

Valid lid Perc ercent ent 10.2

Percent 10.2

Fair 

12

24.0

24.5

34.7

Good

25 7

50.0 14.0

51.0 14.3

85.7 100.0

Excellent

65

Miss Missin ing g

Total

49

98.0

Syst System em

1

2.0

50

100.0

Total

100.0

Holiday Holiday Homes

Poor  Fair  Good Excellent Missing

14.Frequencies:

Statistics

Medical Facilities N

Valid Missing

Mean

50 0 3.2600 Medical Facilities

Cumulative Valid

Poor   Fair

Frequ equency ncy 2 4

Perc ercent ent 4.0 8.0

Valid alid Percen cent 4.0 8.0

66

Percent 4.0 12.0

Good

23

46.0

46.0

58.0

Excellent

21

42.0

42.0

100.0

Total

50

100.0

100.0

Medical Facilities

Poor  Fair  Good Excellent

15.Frequencies:

Statistics

Group Insurance N

Valid

45

Missing

5

Mean

2.2667

Group Insurance

Cumulative Valid

Poo r   Fair

Frequen uency 11 14

Percen cent 22.0 28.0

Valid lid Perc ercent ent 24.4 31.1

67

Percent 24.4 55.6

Miss Missin ing g

Good

17

34.0

37.8

93.3

Excellent

3

6.0

6.7

100.0

Total

45

90.0

100.0

Syst System em

5

10.0

50

100.0

Total

Group Insurance

Poor  Fair  Good Excellent Missing

16.Frequencies:

Statistics

Long Service Mementos N Mean

Valid

50

Missing

0 2.3800

Long Service Mementos

Cumulative Frequ equency ncy

Perc ercent ent

Valid alid Percen cent

68

Percent

Valid

Poor  

7

14.0

14.0

14.0

fair 

19

38.0

38.0

52.0

Good

22

44.0

44.0

96.0

Excellent

2

4.0

4.0

100.0

Total

50

100.0

100.0

Long Service Mementos

Poor  fair  Good Excellent

17.Frequencies: Statistics

Financial Assistance for higher Studies N

Valid Missing

Mean

50 0 2.7200

Financial Assistance for higher Studies

Cumulative Valid

Poor

Frequ equency ncy 2

Perc ercent ent 4.0

Valid alid Percen cent 4.0

69

Percent 4.0

fair 

17

34.0

34.0

38.0

Good

24

48.0

48.0

86.0

Excellent

7

14.0

14.0

100.0

Total

50

100.0

100.0

Financial Assistance for higher Studies

Poor  fair  Good Excellent

18.Frequencies:

Statistics

Fastival Advance N Mean

Valid

50

Missing

0 2.6000

70

Fastival Advance

Cumulative Valid

Poor  

Frequ equency ncy 8

Perc ercent ent 16.0

Valid alid Percen cent 16.0

Percent 16.0

fair 

11

22.0

22.0

38.0

Good

24

48.0

48.0

86.0

Excellent

7

14.0

14.0

100.0

Total

50

100.0

100.0

Fastival Advance Advance

Poor  fair  Good Excellent

19.Frequencies:

Statistics

Facilities provided after death N

Valid Missing

48 2

71

Mean

2.7917

Facilities provided after death

Cumulative Valid

Miss Missin ing g

Poo r   fair 

Frequen uency 3

Percen cent 6.0

Valid lid Perc ercent ent 6.3

Percent 6.3

9

18.0

18.8

25.0

Good

31

62.0

64.6

89.6

Excellent

5

10.0

10.4

100.0

Total

48

96.0

100.0

Syst System em

2

4.0

50

100.0

Total

Facilities provided after death

Poor  fair  Good Excellent Missing

20.Frequencies:

72

Statistics

Retierment gifts N

Valid Missing

Mean

50 0 2.4200 Retierment gifts

Cumulative Valid

Poor  

Frequ equency ncy 6

Perc ercent ent 12.0

Valid alid Percen cent 12.0

Percent 12.0

fair 

20

40.0

40.0

52.0

Good

21

42.0

42.0

94.0

Excellent

3

6.0

6.0

100.0

Total

50

100.0

100.0

Retierment gifts

Poor  fair  Good Excellent

21.Frequencies:

Statistics

73

Community center  N

Valid

48

Missing

2

Mean

2.5417

Community center

Cumulative Valid

Miss Missin ing g Total

Poo r  

Frequen uency 4

Percen cent 8.0

Valid lid Perc ercent ent 8.3

Percent 8.3

fair 

19

38.0

39.6

47.9

Good

20

40.0

41.7

89.6

Excellent

5

10.0

10.4

100.0

Total

48

96.0

100.0

Syst System em

2

4.0

50

100.0

74

Community center  center 

Poor  fair  Good Excellent Missing

22.Frequencies:

Statistics

Different type of leaves N

Valid Missing

Mean

50 0 3.0800

Different type of leaves

Cumulative Valid

fair  

Frequ equency ncy 6

Perc ercent ent 12.0

Valid alid Percen cent 12.0

Percent 12.0

Good

34

68.0

68.0

80.0

Excellent

10

20.0

20.0

100.0

Total

50

100.0

100.0

75

Different type of leaves

fair  Good Excellent

23.Freque ncies:

Statistics

Productivity Link Incentives N

Valid

50

Missing

0

Mean

2.6000

Productivity Link Incentives

Cumulative Valid

Frequ equency ncy 5

Perc ercent ent 10.0

Valid alid Percen cent 10.0

Percent 10.0

16

32.0

32.0

42.0

Good

23

46.0

46.0

88.0

Excellent

6

12.0

12.0

100.0

Total

50

100.0

100.0

Poor   fair 

76

Productivity Link Incentives

Poor  fair  Good Excellent

24.Frequencies: Statistics

Age of the respondents N

Valid

50

Missing

0

Mean

3.1800

Age of the respondents

Cumulative Vali Valid d

18 to 25

Freque quency 1

Perc ercent ent 2.0

Valid alid Percen cent 2.0

Percent 2.0

25 to 35

7

14.0

14.0

16.0

35 to 45

24

48.0

48.0

64.0

45 and above

18

36.0

36.0

100.0

Total

50

100.0

100.0

77

Age of the respond respondents

18 to 25 25 to 35 35 to 45 45 and above

25.Frequencies:

Statistics

Designation N

Valid

50

Missing

0

Mean

1.8000 Designation

Cumulative Vali Valid d

Top leve levell Middle level Total

Frequen uency 10

Perc ercent ent 20.0

Vali alid Perc ercent ent 20.0

Percent 20.0

40

80.0

80.0

100.0

50

100.0

100.0

78

Designation

Top level Middle level

79

FINDINGS AND ANALYSIS HYPOTHESIS TESTING:

Less attention on complaints and suggestions, less will the level of satisfaction.

Correlations:

Do

 

your 

suggestions

Do

 

Up to what extent are you satisfi

complaints

retent retention ion  

get attention?

Welfare)?

your Pearson  

suggeestion suggeestionss   and Correlation compl complai aint ntss

and

 

get

1

.515(**)

attention? Sig. (2-tailed) N Up to what what exte extent nt Pearson

.000 50

49

.515(**)

1

are   you   satisfied satisfied Correlation retention progra programs( ms(PLI PLI   & 80

progra programs( ms(PLI PLI

Welfare)? Sig. (2-tailed)

.000

N

49

49

Correlation at .01 level of significance. This hypothesis says that P is less than .01 so analysis is true because if P is greater than level of  significance, null hypothesis cannot be rejected. So in the given case alternate hypothesis cannot be rejected.

CONCLUSION

Aviation Industry in India is one of the fastest growing aviation industries in the world. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. In this era where people want to get more and more facilities, AIR INDIA is here with its full carrier airline services. AIR INDIA is providing all possible services and policies for  all its customers and employees. But still the market share of this company is going down day by day. In the first quarter of this year market share of Air India was 14.7%. On the other hand many private airline companies who learned, how to make business in the field of aviation, from Air India have more market share. Such as, Kingfisher and Jet airways, they come just few years back in the market but having higher market share and market value than this company. In the first quarter of this year, market share of Jet Airways was 22.7% which is much more than the share of Air India.

81

After carefully analyzing this company I came to know the pros and corns of it and I want to point it out that first Air India should modify its work culture. Air India has all resources available with it but still they are not being utilized optimally. In terms of employees’ satisfaction, 64% respondents are satisfied, the region behind it can be job security. But as I moved further I came to know that 66% are somewhat satisfied but not fully. But among dissatisfied employees 16% are dissatisfied due to lack of personal touch, 20% are dissatisfied due to working hours and no one was dissatisfied with leaves and working hours. When I asked about attention towards complaints and suggestion 36% said frequently and 18% said said never.1 never.18% 8% among among them them respond responded ed that that their their compla complaint intss and sugges suggestio tions ns always always get attention and 28% said sometimes. 35% find Scholarship as a good policy, 44% find Air passage as a good policy, 47% find Housing colonies as a good policy, Holiday homes were rated as good by 51% respondents, 42% and 47% find Medical facility as excellent and good respectively, 375 find Group Insurance good.

RECOMMONDATIONS As most of the employees find Retirement gifts poor, so I want to suggest modifying it. Group Insurance and community centre should also be communicated among employees because I find that most of the employees are unaware with it.

82

Thus what I want to suggest that Air India should market all those facilities which are being provid provided ed by the company company to its its employ employees ees.. In this this way employee employeess will will reali realize ze what what their  their  company is giving to them and they will feel a sense of responsibility towards it. I don’t find as such any big problem with this company except lack of motivation.  So company should work in this direction. One thing for policy makers that they should assign task to employees with a deadline connected with PLI. I want to suggest something to Commercial department related to the scheme of corporate houses. Currently for different corporate houses we have a discount scheme that we revise on yearly basis. Every year new agreements form with new terms and conditions and rate of  discount, depending on the bargaining power of business house and company. We treat every customer in a same manner whether it is with us from past one year or 15 years. We should change the way of treating different customers, especially those who have been given a huge profit from last so many years. For this we can have something like BEST CUSTOMER OF THE YEAR or may be of three years. To give them honor we can display something about them in our in-flight magazine, this will be a both bo th way beneficial decision. Same award treatment we can do with employees to motivate them.

83

LIMITATION

Every research study has certain limitations. These could be due to sample size, sampling techniques, time available, money etc. this study has also certain limitations. The following are worth mentioning:-

1. As the subjec subjectt und under er study involves involves large populati population on size size so generaliz generalizati ations ons can’t be made. 2.   Due to time and financial constrains the study is is restricted to Northern region. 3. Sometimes Sometimes respondents respondents give altogether altogether biased answers in responding responding to the different different questions. 4. Lack Lack of time time 5. Lack of financial financial resources resources

Still every effort has been employed in order to reduce the impact of these limitations.

84

BIBLIOGRAPHY

BOOKS: 

Kothari C.R., Research Methodology New Age International (P) Ltd., 2005



Malhotra N.K., Marketing Research Prentice Hall, Pearson Education, 2007



Kotler

 

&

 

Keller,

A South Asian Perspective, 2007 

Gupta S.P., Business Statistics Sultan Chand & Sons, 2005

MAGAZINES: 

SWAGAT, in flight magazine of AIR INDIA. June 2008.



XPRESSIONS, in flight magazine of Jetlite. May 2008



Namaskaar, in flight magazine of AIR INDIA.

WEBSITES: 

http://www.airindia.in

85

 

Marketing

 

Management



http://www.flyingreturns.co.in



http://www.google.com

APPENDICES QUESTIONNAIRE

Note: I am a summer trainee under NACIL, Delhi, and this survey is the part of my study. I will be highly grateful if you would answer the following questions. Please tick across preferred option.

1. From how long are you with NACIL? Less than Two years Two to Six Years Six to Twelve Years More than Twelve Years

86

2. Are you satisfied with welfare policies and PLI scheme of NACIL? Yes No (If no then move to Q NO.3, if yes then move to Q NO.4) 3. What is the reason of dissatisfaction? Less leaves More working hours Less remuneration Lack of personal touch

4. Up to what extent are you satisfied with these programs? Highly dissatisfied Dissatisfied Somewhat satisfied Highly satisfied

5. Do your suggestions and complaints get attention? Always Frequently Sometimes Never 

87

6. Please, rate them according to your preference:

Policies

Excellent

Good

Fair

Scholarships Air Passage Housing Colonies Holiday Homes Medical Facilities Group   insurance insurance scheme Long Long

 

Serv Servic icee

Mementos Financial Assist Assistanc ancee

 

for 

higher studies Festival Advance Deat Death h

 

Bene Benefi fitt

society Retirement Gifts Community centers Different   type   of  leaves Productivity   Link  Incentives

7. Any Suggestion (s)?

88

Poor

Personal Details:

Designation: Age: 18 to 25 25 to 35 35 to 45 45 and above

THANKS FOR YOUR COOPERATION.

89