INTRODUCTION India at present has twelve competing airlines in the domestic market as against a single government owned airline in 1991. According to McKinsey Quarte Quarterly rly(20 (2005) 05) the Indian Indian aircra aircraft ft marke markett is the world world’’s second second larges largestt commercial aircraft market. On-time performance and service levels have risen dramatically and fares have dropped. Passenger traffic is expected to grow by 20 percent annually over the next five years. Only a small percentage of India’s population travels by air partly due to the high costs of domestic flying. According to the Center for Asia Pacific Aviation(CAP Aviation(CAPA) A) consultancy, consultancy, new players will help domestic passenger numbers. The players in the current airline market include airlines like Air Deccan with low-cost, low-fare and no fril frills ls alon along g with with airl airlin ines es like like King Kingfi fish sher er,, whic which h offe offers rs some some fril frills ls,, and and premium airline like Jet Airways. Competition has brought in some price advantages to travellers and has converted many railway passengers to airline travellers. This article examines customer satisfaction among travellers of four major domestic airlines in India. Because of proliferated number of players in the airline industry, airlines may enjoy new business opportunities along with high competitive threats. The objective of this study is to understand the customer satisfaction levels of the two major airlines viz. Jet Airways, and Kingfisher. A comparison of customer satisfaction based on service quality was done among the two major airlines based on responses from frequent fliers. A flying experience was divided into three stages- namely, pre-flight, in-flight and post-flight experience. A questionnaire was designed in such a way that the
same sets of variables were measured among the customers of the two airlines under study. Fliers who had flown any of the two airlines could answer the questions pertaining to those airlines. The objective of this study was to understand the satisfaction levels of the airline customers.
The Indian In dian Aviation Aviation Industry Introduction
Air India was set up by J.R.D. Tata, who ran it successfully until it was nationalized in 1953. In the 1960s the “Maharaja”, as the national flag-carrier was affectionately known, was flying to 32 destinations (it now flies to 46 destinations) and making profits. For many years in India air travel was perceived to be an elitist activity. This view arose from the “Maharajah” syndrome where, due to the prohibitive cost of air travel, the only people who could afford it were the rich and powerful. In recent years, however, this image of Civil Aviation Aviation has undergone a change and aviation is now viewed in a different light - as an essential link not only for international travel and trade but also for providing connectivity to different parts of the country. Aviation is, by its very nature, a critical part of the infrastructure of the country and has important ramifications for the development of tourism and trade, the opening up of inaccessible areas of the country and for providing stimulus to business activity and economic growth. Until less than a decade ago, all aspects of aviation were firmly controlled by the Government. In the early fifties, all airlines operating in the country were merged into either Indian India n Airlines Airlines or Air India and, by virt virtue ue of the Air Corporatio Corporations ns Act, 1953 thiss mon thi monopo opoly ly was per perpet petuat uated ed for the nex nextt for forty ty yea years. rs. The Di Direc rector torate ate General of Civil Aviation controlled every aspect of flying including granting flying licenses, pilots, certifying aircrafts for flight and issuing all rules and
proce procedur dures es gov govern erning ing Ind Indian ian air airpor ports ts and air airspa space. ce. Fin Finall ally y, the Air Airpor ports ts Author Aut hority ity of Ind India ia was ent entrus rusted ted wit with h the re respo sponsi nsibil bility ity of ma manag naging ing all nation nat ional al and int intern ernati ationa onall ai airpo rports rts and adm admini iniste sterin ring g eve every ry asp aspect ect of air transport operation through the Air traffic Control. With With the opening up of the Indian economy in the early Nineties, aviation saw some some import important ant change changes. s. Most Most import important antly ly,, the Air Air Corpor Corporati ation on Act was repealed to end the monopoly of the public sector and private airlines were reintroduced. Domestic liberalization took off in 1986, with the launch of scheduled services by new start-up carriers from 1992. A number of foreign invest investors ors took took an intere interest. st. Mod Modilu iluft ft closed closed after after failin failing g to meet meet financ financial ial obligations to lessors and its technical partner, Lufthansa. In 1996-1998, Tata and SIA tried to launch a domestic carrier, but the civil aviation minister had publicly stated his opposition on numerous occasions (Airline Business 1998). The Indian government introduced the open sky policy for domestic players in 1991 and partial partial open sky policy policy for internationa internationall players players only in November November 2004. Increasing liberalisation and deregulation has led to an increase in the number of players. The industry comprises three types of players full cost carr carrie iers rs,, low low cost cost carr carrie iers rs (LCC (LCC)) and and many any star startt-up up airl airlin ines es that that are are making/planning an entry.
Present Indian Scenario
It is a phase of rapid growth in the industry due to huge build-up of capacity in the LCC space, with capacity growing at approximately 45% annually. This has induced a phase of intense price competition with the incumbent full service carriers (Jet, Indian, Air Sahara) dis- counting up to 60-70% for certain routes routes to match match the new entrants entrants ticket ticket price prices. s. This, This, couple coupled d with with costs costs
pressures (a key cost element, ATF price, went up approximately 35% in recent months, while staff costs are also rising on the back of shortage of trained personnel), is exerting bottom-line pressure. The growth growth in supply supply is oversh overshado adowed wed by the extrem extremel ely y strong strong demand demand growth, led primarily by the conversion of train/bus passengers to air travel, as well as by the fact that low fares have allowed passengers to fly more frequently. There has, therefore, been an increase in both the width and depth of consumption. However, the regulatory environment, infrastructure and tax policy have not kept pace with the industry’s growth. Enactment of the open sky policy between India and Saarc countries, increase in bilateral entitlements with the EU and the US, and aggressive promotion of India as an attractive tourism spot helped India attract 3.2 million tourists in 2004-05. This market is growing at 15% per annum and India is expected to attract 6 million tourists by 2010. Also, Also, increasing per capita income has led to an increase in disposable incomes, leading to greater spend on leisure and holidays and business travel has risen sharply with increasing MNC presence. Smaller cities are also well connected now. now. Passenger traffic has increased and over 21 million seats have been sold, resulting in a growth of over 50%. The Indian travel market is expected to triple to $51 billion by 2011 from $16.3 billion in 2005-06.
Key Players in Indian Industry
Airlines on International Routes
Air India is the national flag carrier airline of India with a network of
passenger and cargo services worldwide. It is one of the two state-owned airlines in the country, country, the other being Indian Airlines. Airlines. Air India has 44 worldwide destinations. The airline has been profitable in most years since its inception. In the financial year ending March 31, 2006, Air India has made a net net prof profit it of Rs.9 Rs.97 7 milli illion on;; earn earned ed a reve revenu nuee of Rs.8 Rs.87, 7,48 480 0 mill millio ion n representing a growth of almost 15 per cent over the previous year.
Airlines on Domestic Routes
SpiceJet is a low-cost airline airline.. Their marketing theme "offering low 'everyday
spicey fares' and great guest services to price conscious travelers". Their aim is to compete co mpete with the Indian Railways passengers travelling in AC coaches.
Air Deccan is an airline based in Bangalore, India. It was India's first low-
cost carrier, and as of May 2006, connects 55 cities within India. Air Deccan has grown rapidly since it first started air operations in 2003, and despite its almost disastrous maiden inaugural flight (which caught fire), it continued to grow. The growing Indian economy and the increasing number of middleclass people in India has greatly helped its growth.
GoAir The People’s Airline, Airline, a low cost carrier promoted by The Wadia Group
is a domestic budget airline based in Mumbai Mumbai,, India established in June 2004. It’s It’s a relatively small player as compared to other low cost airlines.
Kingfisher Airlines is an airline based in Bangalore Bangalore,, India India.. Services started
on 9 May 2005 2005,, following the lease of 4 Airb Airbus us A320 aircraft. It initially operates only on domestic routes. The airline promises to suit the needs of air travellers and to provide reasonable air fares. Kingfisher are pushing for an amendment of the present Indian government rule which requires an airline to fly a minimum of five years on domestic routes before it can start flying overseas.
IndiGo Airlines is a new and a private domestic airline based in India. IndiGo
placed an order for 100 Airbus A320 aircraft during the 2005 Paris Air Show. Show. The total order was worth US $6 billion; one of the highest by any domestic carrier during the show. The new low-fare carrier has started operations from August 4, 2006. Indian is India's state owned primarily domestic airline, under the federal
Union Ministry of Civil Aviation Aviation The Company was formerly known as Indian Airlines. Indian Civil Aviation Minister, Praful Patel, announced Government of India's plan to merge Air India and Indian into one giant airline consisting of 130-140 aircraft.
Jet Airways Airways a “regular” airline which offers normal economy and business
class seats. Jet Airways, along with Air Sahara, is the only airline which survived the dismal period of 1990s when many private airlines in India were forced to close down. Jet Airways is an airline based in India serving domestic and and inte intern rnat atio iona nall rout routes es.. Th Thee airl airlin inee op oper erat ates es ov over er 30 300 0 flig flight htss to 43 destinations across the. It currently controls about 32% of India's aviation market
GLOBAL SCENARIO
At the macro-economic level Asia Pacific growth is impressive. India and China are growing between 8 and 10% each year. China is now the world's 4th largest economy. Excluding Japan, Asian economic growth was 7%—doubles the world average of 3.5%. 3.5%. Global Global airline traffic traffic is expected expected to rise steadily steadily unti un till 20 2008 08 in line line with with an anti antici cipa pate ted d go good od perf perfor orma manc ncee by the the worl world d economy, according to the United Nations'(UN) aviation agency. The UN International Civil Aviation Organization found in its medium-term forecast that airline traffic would grow 6.1 per cent in 2006, 5.8 per cent in 2007, and 5.6 per cent in 2008 . And strong economic growth will continue. But growth means nothing if the bottom line is red. Globally airlines lost US$6 billion in 2005. US carriers lost US$10 billion. European carriers made about US$1.3 billion. Asian carriers led profitability with US$1.5 billion. Even within Asia it is a mixed picture. Some carriers are among the most profitable. Others however are struggling. In the region operating margins averaged less than
2%, still the best performance in the world. Most are below the 7 to 8% needed to cover the cost of capital and give investors an acceptable return.
Impact of Rising Fuel Prices on the Industry The high price of fuel is killing the profitability. profitability. In two years the industry fuel bill more than doubled to nearly US$100 billion—23% of operating costs. And there is no relief in sight. So what are airlines to do? Improve efficiency is the answer. Progress to date has been dramatic. The break-even price of fuel rose from US$22 per barrel in 2003 to nearly US$50 in 2005. Unfortunately, fuel prices are above that. Airlines will not return to profitability until 2007 when we expect a break-even fuel price of US$55. Even then the projected profit is only US$6 billion. Asia will remain profitable in 2006 posting US$2 billion in profit. But do not start opening the Champagne. That is still less than a 2% net margin. Global Impact of LCCs
Low cost carrier competition is new to this region. Asian network carriers are bette betterr prepa prepared red than than many many of their their US or Europe European an counte counterpa rparts rts.. Their Their operating costs are 6 US cents per ATK on route lengths of 1500km. But the competition will also be tough. Air Asia's costs are the lowest in the world— 2.5 US cents per ATK. Labour costs in Asia are the lowest in world—19% of operat operating ing cost. cost. This This is a signif significa icant nt advant advantage age agains againstt US and Europe European an carriers with an average cost of above 30%. If we compare Asian network carriers to their low cost rivals, the story changes. Average Average labour costs can be
up to 7 times lower at low-cost startups. There is no finish line in the race to reduce costs and improve efficiency. Some analysts are of the view that Countries in the Asia-Pacific region, which entered the industry much later, have emerged as important players in the past decade. In comparison, the Indian civil aviation industry which is much older still operates from a small base even though its domestic market potential and skilled man power should have given it intrinsic advantages to emerge as a globally important player in the civil aviation industry by now. Path Forward for India
The escalating fuel bill would eventually translate into costlier air tickets for the Indian travellers, who have for the first time sampled air travel at fares that match first-class railway tickets. Even as some airlines hiked fares by ten per cent and others toyed with the idea to offset their ballooning fuel bill, the government dealt them another blow by withdrawing the withholding tax exemption on aircraft lease agreements. In the absence of this tax exemption, aircraft leasing cost is expected to shoot up between 20 to 67 per cent - a move that could deter new entrants and existing players from leasing more aircraft. Although poor airport infrastructure remains a concern, we need to maintain a positive outlook on the sector as the government allows private p par arti tici cipa pati tion on and and FDIs FDIs in cons constr truc ucti tion on and and main mainte tena nanc ncee of air air-tra -traff ffic ic infrastructure. This also hints at the huge opportunity in terms of infrastructure development and maintenance in the aviation sector for foreign construction and engineering companies. For now, as more and more Indians take to the skies, the country is set to emerge as the fastest growing aviation market.
Overview The history of civil aviation in India began in December 1912. This was with the opening of the first domestic air route between Karachi and Delhi by the Indian state Air services in collaboration with the imperial Airways, UK, though it was a mere extension of London-Karachi flight of the latter airline. Three years later, the first Indian airline, Tata Sons Ltd., started a regular airmail service between Karachi and Madras without any patronage from the government.
At the time of independence, the number of air transport companies, which were operating within and beyond the frontiers of the company, carrying both air cargo and passengers, was nine. It was reduced to eight, with Orient Airway Airwayss shifti shifting ng to Pakist Pakistan. an. These These airlin airlines es were: were: Tata Airli Airlines nes,, Indian Indian National Airways, Air service of India, Deccan Airways, Ambica Airways, Bharat Airways and Mistry Airways.
In early early 194 1948, 8, a joint joint sector sector compan company y, Air India India Intern Internati ationa onall Ltd., Ltd., was established by the Government of India and Air India (earlier Tata Airline) with a capital of Rs 2 crore and a fleet of three Lockheed constellation aircraft. Its first flight took off on June 8, 1948 on the Mumbai (Bombay)London London air route. At the time of its nationaliza nationalization tion in 1953, 1953, it was operating operating
four four weekly weekly servic services es betwee between n Mumbai Mumbai-Lo -Londo ndon n and two weekly weekly servic services es between Mumbai and Nairobi. The joint venture was headed by J.R.D. Tata, a visionary who had founded the first India airline in 1932 and had himself pilot edits inaugural flight.
Significance of Air Transport
Air transport transport is the most modern, the quickest and the latest latest addition addition to the modes of transport. Because of speed with which aero planes can fly, fly, travel by air is becoming increasingly popular. As far as the world trade is concerned it is still dominated by sea transport because air transport is very expensive and is also unsuitable for carrying heavy, bulky goods. However, transportation of high value light goods and perishable goods is increasingly being done by air transport. Foreign Airlines
Foreign airlines carrying international passenger traffic to and from India existed long before Independence. Their operations are governed by bilateral agreements signed from time to time between the Government of India and the governments of respective countries. In 1980-81, the number of such airlines
was
35.
It
rose
to
49
in
1996-97.
The share of foreign airlines in India's scheduled international traffic has increased. In 1971, their share was 55.58 per cent which went up to 65 per cent and declined to 58 per cent during 1972-75. It fell to 55.72 per cent in 1976 and further to 55.02 per cent in 1977. Between 1978 and 1990 it
gradually increased and rose to 75.93 per cent. In 1996, the share was nearly 72 per cent.
Open-Sky Policy Thee Open Th Open-s -sky ky po poli licy cy came came in Apri Aprill 19 1990 90.. Th Thee po poli licy cy allo allowe wed d air air taxi 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. The operators were, however, required to use aircraft with a minimum of 15 seats and conform to the prescribed rules. In 1990, the private air taxioperators carried 15,000 passengers. This number increased to 4.1 lakh in 1992, 29.2 lakh in 1993, 36 lakh in 1994 and 48.9 lakh in 1995.
The 199 1996, 6, privat privatee air taxi taxi operat operators ors carrie carried d 49.08 49.08 lakh lakh passen passenger gerss which which amounted to a 41.14 per cent share in the domestic air passenger traffic. Seven operat operators ors viz NEPC NEPC Airlin Airlines, es, Skylin Skylinee NEPC, NEPC, Jet Air, Air, Archan Archanaa Airway Airways, s, Sahara India Airlines, Modiluft and East West West Airlines have since acquired the status of scheduled airlines. Besides this there were 22 nonscheduled private operators and 34 private operators holding no-objection certificate in 1996. The number of plus 120 category aircraft in the private sector was 34 and the total fleet strength was 75 in June, 1996. Two out of seven scheduled air taxi operators operators suspended suspended their their operation operationss in 1996 because of the non-avai non-availabil lability ity of aircraft.
Infrastructure Infrastructure and Related Facilities Airport Authority of India:
set up on April 1,1995 by amalgamating the international Airport Authority of India and the National Airport Authority Authority of India, the Airport Auth Authority ority of India was to handle all matters relating to infrastructure for civil air traffic t raffic and transport at the international and the domestic do mestic airports and enclaves in the country.
Indira Gandhi Rashtriya Uran U ran Akademi:
It was set up at Fursatganj to standardize and improve the flying training training facilities in the country. Till Till January 1997 it had trained 289 pilots on fixed wing aircraft and 20 pilots on rotary wing aircraft.
Flying/gliding training clubs:
On December 31,1996, besides the above Akademi, 41 flying clubs/institutes and their branches including nine private institutes were imparting flying
training. Five gliding clubs, seven gliding wings of flying clubs and a government Gliding Centre, Pune, were imparting training in gliding.
Development of Civil Aviation The repeal of the Air Corporation Act from 1 March 1994 enabled private operators to provide air transport services. Six operators were given the status of schedule doperators on 1February1995. Currently there are five international airports and 87 domestic airport in the country
with
28
civilian
enclaves
for
defence
purposes.
The Airport Authority of India plans to invest Rs 35,000 million for the construction and upgradation of airports. Budgetary support of Rs 485.50 million was allocated to AAI in 1996-97. In august 1996, in a major policy decision, the government allowed the private sector to set up air cargo complexes in a bid to ensure smooth movement of export cargo. Dome Domest stic ic and and fore foreig ign n inve invest stor orss incl includ udin ing g NRIs NRIs have have been been invi invite ted d to particip participate ate in the developmen developmentt of infrastru infrastructur cturee support support at select select airports airports.. With a market share of 43% Indian airlines is the biggest player in aviation. Rs 24,710 million have been marked for development of the civil aviation sector in the annual plan for 1997-98. 1997-98 .
The Indian Air Cargo Market The growth of air cargo in India has also been manifold though it might not have kept pace with the progress made all over the world. Table Table 1 shows how both international and domestic air cargo traffic has increased, reflecting an overall year on year growth. Table 1: Trends in cargo traffic at five international airports in India. (Figures in '000 tonnes) Period 1972-73 1982-83 1992-93 1999-2000
International Cargo Domestic Cargo Total Percentage Increase 47.4 33.6 81 165.4 84.6 250 209% 300.5 90.9 391.4 56.56% 494.2 183.0 677.2 73%
(Source - Transport India 2000)
Future Outlook Of The Industry Future projections reflect that the air cargo industry both in the domestic sector and the international sector will continue in its upward trend of growth. Fig.1 reflects that the domestic air cargo will continue at a somewhat steady rate of growth whereas the international air cargo movement as illustrated in Fig.2 shows a steeper rate of growth indicating that international air cargo trade will flourish at a higher rate of growth growth.. Both Both Domest Domestic ic cargo cargo and International cargo are poised to grow according to the projections. The major reasons, which can be attributed to this increase, are Increase in overseas trade Indian economic policies Customer service orientation Inventory concerns E-commerce development An airline provides air transport services for passengers or freight, generally with a recognized operating certificate or license. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit. Airlines vary vary from from thos thosee with with a sing single le airp airpla lane ne carr carryi ying ng mail mail or car cargo go,,
thro throug ugh h full full-s -ser ervi vice ce inte intern rnat atio iona nall airl airlin ines es op oper erat atin ing g many many hu hund ndre reds ds of
airpla airplanes nes.. Airlin Airlinee servic services es can be catego categoriz rized ed as being being interc intercont ontine inenta ntal, l, intracontinental, or domestic and may be operated as scheduled services or chartered planes. Ticket Revenue
Airlines assign prices to their services in an attempt to maximize profitability. The pricing of airline tickets has become increasingly complicated over the years years and is now largel largely y determ determine ined d by comput computeri erized zed yield yield manage manageme ment nt systems. Beca Becaus usee of the the com complic plicat atio ions ns in sche schedu duli ling ng flig flight htss and and maint aintai aini ning ng pro profi fita tabi bili lity ty,, airl airlin ines es have have many any loop loopho hole less that that can can be used used by the the knowledgeable traveler. Many of these airfare secrets are becoming more and more known to the general public, so airlines are forced to make constant adjustments. Most airlines use differentiated pricing, a form of price discrimination, in orde orderr to sell sell air air serv servic ices es at vary varyin ing g pric prices es simu simult ltan aneo eous usly ly to diff differ eren entt segmen segments. ts. Factor Factorss influe influenci ncing ng the price price includ includee the days days remai remainin ning g until until departure, the booked load factor, the forecast of total demand by price point, competitiv competitivee pricing pricing in force, force, and variatio variations ns by day of week of departure departure and by time of day. Carriers often accomplish this by dividing each cabin of the aircraft (first, business and economy) into a number of travel classes for pricing purposes.
Operating Cost
Full-service airlines have a high level of fixed and operating costs in order to establish and maintain air services: labor, labor, fuel, airplanes, engines, spares and parts, IT services and networks, airport equipment, airport handling services, sales distribution, catering, training, aviation insurance and other costs. Thus all but a small percentage of the income from ticket sales is paid out to a wide variety of external providers or internal cost centers. Moreover, Moreover, the industry is structured so that airlines often act as tax collectors. Airline fuel is untaxed, however, due to a series of treaties existing between countries. Ticket Ticket prices include a number of fees, taxes, and surcharges surcharges they have little or no control over, and these are passed through to various providers. Airlines Airlines are also responsible for enforcing government regulations. If airlines carry passengers without proper documentation on an international flight, they are responsible for returning them back to the originating country. country. Airlines follow a corporate structure where each broad area of operations (such as maintenance, flight operations, 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 employs lawyers to deal with regulatory procedures and other administrative ad ministrative tasks. The headquarters of Air India are in Mumbai, India.
Introduction to UB group UB group based in Bangalore, is a conglomerate of different companies companies with a major major focus focus on the brewer brewery(b y(beer eer)) and alcoho alcoholic lic bevera beverages ges indust industry ry.. The company markets most of its beer under the Kingfisher brand. The group is headed by Dr.Vijay Mallya. The UB Group was founded by a Scotsman, Thomas Leishman in 1857. Kingfisher, Kingfisher, the Group's most visible and profitable brand, made a modest entry in the sixties. During the 1950's and 60's, the comp compan any y expa expand nded ed grea greatl tly y by acqu acquir irin ing g othe otherr brew brewer erie ies. s. Firs Firstt was was the the addition of McDowell as one of the Group subsidiaries, a move which helped Unit United ed Brew Brewer erie iess to exte extend nd its its po port rtfo foli lio o to wine winess and and spir spirit itss bu busi sine ness ss.. Strategically, Strategically, the Group moved into agro-based industries and medicines when Mallya acquired Kissan products and formed a long-term relationship with Hoechst AG of Germany to create the Indian pharmaceutical company now known as Aventis Pharma , the Indian subsidiary of the global pharma major Sanofi-Aventis.
The logo
The Pegasus, which is the symbol of the United Breweries, first found its place as the Group logo in 1940. The UB Group’s Brewing Entity - called
United Breweries Limited (UBL) - has also assumed undisputed market leadership with a national market share in excess of 50%. Through a process of aggressive acquisition and market penetration, The UB Group today controls 60% of the total manufacturing capacity for Beer in India.
`
An Introduction to Kingfisher Airlines
Kingfisher Airline is a private airline based in Bangalore, India. The airline is owned by Vijay Mallya of United Beverages Group. Kingfisher Airlines Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320 A320 aircrafts. The airline currently operates on domestic routes. The destinations covered by Kingfisher Airlines Airlines are Bangalore, Mumbai, Mu mbai, Delhi, Goa, Chennai, Hyderabad, Ahmedabad, Cochin, Guwahati, Kolkata, Pune, Agartala, Dibrugarh, Mangalore and Jaipur. In a short span of time Kingfisher Airline has carved a niche for itself. The airline offers several unique services to its customers. These include: personal valet at the airport to assist in baggage handling and boarding, exclusive lounges with private space, accompanied with refreshments and music at the airport, audio and video on-demand, with extra-wide personalized screens in the aircraft, sleeperette seats with extendable footrests, and three-course gourmet cuisine. Vision:
The Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel experience to all our guests.” Safety:
This is an overriding value. In this line of business, there is no compromise.
Service:
In hospitality hospitality business business customer satisfaction is very important and building building trust, goodwill and loyalty of customers is at prime focus. Happiness:
Kingfisher seeks to build an organization organization with people who choose to be happy, happy, and will endeavor to influence their guests and co-workers to be happy too. Teamwork :
Kingfisher believes We We will succeed or fail as a team. Each one of us must respect our colleagues regardless of their rank, and we must work together to ensure our mutual success. Accountability:
Every employee in kingfisher will be held accountable for the successful execution of their duties, commitments and obligations, and they will strive to lead by an example. Product: Premium class seats 1. Sleeperette seats with extendable footrests. 48" seat pitch and a 125°
recline. Fully-adjustable Fully-adjustable headrests. 2. Laptop
and
mobile
phone
chargers
in
each
seat.
3. Comforta Comfortable ble pillows pillows and and snug snug blankets. blankets.
Price:
Initially Kingfisher airlines didn’t differentiate between business class and economy class. But eventually they decreased the prices of business class and called that seats as premium seats. Fares were very average as it had to target middle class as well as premium class people. Place: King fisher airlines connects 23 cities like Ahmedabad, Goa,
Delhi, Kolkata, Hyderabad, Guwahati, Jaipur, Udaipur, etc. Promomtion:
Various promotional strategies has been adopted by Kingfisher airlines like o
The 'Power Flyer' a consumer incentive offer targeted at the corporate traveler
o
Passen Passenger gerss are offe offered red in fligh flightt enter entertai tainm nment ent option optionss and `Kingfi fish sher er flyi flying ng face face of the the month month'' and contests like `King attractive discounts of branded merchandise.
o
in-flight silent auctions auctions for lifestyle lifestyle products products and inOffer in-flight flight sales of dry packaged p ackaged food and beverages
o
The marketing department showcased the airlines as “The new flying experience”.
. o
KINGF KINGFIS ISHER HER Airli Airlines nes has has announ announced ced specia speciall fares fares for for all per perso sonn nnel el serv servin ing g in the the Indi Indian an Arme Armed d Forc Forces es,, the the Unio Union n Government, State governments, and employees of all public sector units in the country. The immediate families of these personnel.
o
The company has just launched Kingfisher First, which is a pri print nt cam campaig paign n to prom promot otee its its firs firstt clas classs serv servic ice. e. It is a personalized campaign, which has Vijay Mallya, signing off by saying, "I have created a product which is better than what I would have created for myself."
Kingfisher Airlines Limited is an airline based in Bangalore, India. It is a major Indian airline operating 218 flights a day and has an extensive network to 37 destinations, with plans for regional and long-haul international services. Its main bases are Bangalore International Airport, Bangalore, Chhatrapati Shivaji International Airport, Airport, Mumbai and Indira Gandhi International Airport, Airport, Delhi. Delhi. Kingfi Kingfishe sherr Airlin Airlines, es, throug through h one of its holdin holding g compan companies ies United United Breweries Group, has acquired 26% stake in the budget airline Air Deccan and has option to buy further of 20% stake from the secondary market.
Kingfisher is one of only 6 airlines in the world to have a 5 star rating from Skyt Skytra rax, x, alon along g with with Asia Asian n Airl Airlin ines, es, Mala Malays ysia ia Airl Airlin ines es,, Qata Qatarr Airw Airway ays, s, Singapore Airlines and Cathay Pacific Airways.Kingfisher Airlines, through one of its holding companies UB holdings Ltd, has acquired 26% stake in the budget airline Air Air Deccan and has option to buy further of 20% stake from the secondary market.
Introduction to Jet Airways Jet Airways is India’s premier private airlines. Naresh Goyal is currently the chairman of Jet Airways. Jet Airways operates over 320 flights daily to 43 destinations in India and currently controls about 40% of India's aviation market. Jet Airways was the first private airline of India to fly to international destinations. It operates daily international flights to Colombo, Kathmandu, Singapore, Kuala Lumpur and London (Heathrow). Jet Airways has won a number of awards in recognition of standards of its service and has also received the ISO 9001:2000 certification for its In-flight Services. Jet Airways was established on 3 May 1991 with a fleet of 4 Boeing 737-300 aircraft, with 24 daily flights serving 12 destinations. Jet Airways presently operates 55 aircrafts and is now a public limited company. Jet Airways (India) Ltd. is an airline based in Mumbai, India, operating
domestic and international services. It operates over 330 daily flights to 50 destinations across the country and 6 overseas. Its main base is Chhatrapati
Shiv Shivaj ajii Inte Intern rnat atio iona nall Airp Airpor ort, t, Mu Mum mbai, bai, with with hu hubs bs at Indi Indira ra Gand Gandhi hi Intern Internati ationa onall Airpor Airport, t, Delhi, Delhi, Anna Anna Inter Internat nation ional al Airpo Airport, rt, Chenna Chennai, i, Netaji Netaji Subhash Chandra Bose International Airport, Airport, Kolkata, Bangalore International Airport, Bangalore and Brussels Airport, Brussels. According to the latest available figures, its share of India's domestic aviation market has increased to over 43% (up from less than 27% a few months ago), and this is still greater than any other Indian domestic operator's market share. Jet Airways was incorporated as an "air taxi" operator on 1 April 1992. It started commercial airline operations on 5 May 1993 with a fleet of 4 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 to Sri Lanka in March 2004. Plans to acquire rival Air Sahara, announced in January 2006, after some rough patches deal got through. The airline is owned by Tailwinds (owned by Naresh Goyal) (80%) and public shares (20%) and has 10,017 employees. On April 12, 2007 Jet Airways agreed to buy out its smaller rival Air Sahara for 14.5 billion rupees ($340m).Air Sahara would be renamed as Jet Lite hereafter and it has been placed between a low cost carrier and full fledged airliner. It may be noted that Jet Airways with the acquisition of Air Sahara is all set to refurbish refurbish the fleet fleet and crew with new livery livery and uniform uniform and plans are in pipeline to start a freighter by the year end. The deal will give the airline a combined domestic market share of about 32%. Jet Airways serves 52 destinations, including 6 cities outside India.
Jet Airways sought to take maximum advantage of this ruling by adding new international scheduled routes to destinations within the commercially viable flying range of its growing fleet of "Next Generation" Boeing 737-700/800 series narrow bodied jets, such as Singapore and Kuala Lumpur. This first led to a decisi decision on to lease lease three three Airbus Airbus A340A340-300 300E E wide-b wide-bodi odied ed from from South South Africa African n Airway Airwayss
to enable enable it to commenc commencee non non-st -stop op flights flights to London London
Heathrow in the UK and to subsequently place a large order for a fleet of brand-new Airbus A330-200 and Boeing 777-300ER wide-bodied airliners to permit further expansion, especially to additional destinations in Europe and North America. In 2006 Jet Airways has international services to Kathmandu, Colomb Colombo, o, Singap Singapore ore,, Kuala Kuala Lumpur Lumpur,, London London Heathr Heathrow ow,, operat operating ing from from Mumbai, Delhi, Chennai and Amritsar.
Jet Airways started three times-a-week service from Ahmedabad to London Heathrow on April 3, 2007 to cater to the travel requirements of the ethnic Gujarati community in the UK. The airline is using its recently delivered Airbus A330-200s A330-200s on both the Amritsar and Ahmedabad services while "Next
Generation" Boeing 737-800s equipped with winglets are used on all Bangkok sectors. It also claimed that its international operations were profitable, with the sole exception of its long-haul flights between India and London-Heathrow. London-Heathrow.
Airline Agreements
Jet Airways has commercial agreements with the following airlines: •
Air France
•
American Airlines
•
Austrian
•
British Airways
•
Brussels Airlines
•
Gulf Air
•
KLM
•
Lufthansa
•
•
Northwest Airlines Qantas
•
South African Airways
•
Swiss International International Airlines
•
Thai Airways International International
Jet Airways Airways is proud that we are one of the few airlines in the world to receive the ISO 9001 certification for our in-flight services.
PEST Analysis: The Indian Airline Industry
A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technol echnologi ogical cal factor factorss of the extern external al macro macro-en -envir vironm onment ent.. Such Such extern external al fact factor orss usua usuall lly y are are beyo beyond nd the the firm firm's 's cont contro roll and and some someti time mess pres presen entt themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. Let us look at the PEST analysis of the Indian aviation sector:
Political Factors
In India, one can never over-look the political factors which influence each and and ever every y indu indust stry ry exis existi ting ng in the the coun countr try y. Like Like it or no not, t, the the po poli liti tica call interference has to be present everywhere. Given below are a few of the political factors with respect to the airline industry:
o
Thee airl Th airlin inee indu indust stry ry is ver very susc suscep epti tibl blee to chan change gess in the the po poli liti tica call environment as it has a great bearing on the travel habits of its customers. An unstable political environment causes uncertainty in the minds of the air travellers, regarding travelling to a particular country.
o
Overall India’s recent political environment has been largely unstable due to international events & continued tension with Pakistan.
o
The Gujarat riots & the government’s inability to control the situation have also led to an increase in the instability of the political arena.
o
The most significant political event however has been September 11. The events events occur occurrin ring g on Septem Septembe berr had specia speciall signif significa icance nce for the airlin airlinee industry since airplanes were involved. The immediate results were a huge drop in air traffic due to safety & security concerns of the people.
o
Intern Internati ationa onall airlin airlines es are greatl greatly y affec affected ted by trade trade relati relations ons that that their their country has with others. Unless governments of the two countries trade with each other, there could be restrictions of flying into particular area leading to a loss of potential air traffic (e.g. Pakistan & India)
o
Another aspect is that in countries with high corruption levels like India, bribes have to be paid for every permit & license required. Therefore
cons consta tant nt lias liason onin ing g with with the the mini minist ster er & othe otherr go gove vern rnme ment nt offi offici cial al is necessary.
The state owned airlines suffer the maximum from this problem. These airlines have to make several special considerations with respect to selection of routes, free seats to ministers, etc which a privately owned airline need not do. The state owned airlines also suffers from archaic laws applying only to them them such such as the the reti retire reme ment nt age age of the the pu purs rser erss & ho host stess esses es,, the the labo labour ur regulation regulationss which which make the management management less flexible flexible in taking taking decision decision due to the presence of a strong union, & the heavy control &interference of the government. This affects the quality of the service delivery & therefore these airlines shave to think of innovative service marketing ideas to circumvent their problems & compete with the private operators.
Economic Factors
Business cycles have a wide reaching impact on the airline industry. During recession, airline is considered a luxury & therefore spending on air travel is cut which leads to reduce prices. During prosperity phase people indulge themselves in travel & prices increase. After the September 11 incidents, the world economy plunged into global recession due to the depressed sentiment of consumers.. The loss of income for airlines led to higher operational costs not only due to low demand but also due to higher insurance costs, which increased after the
WTC bombin bombing. g. This This prompt prompted ed the indust industry ry to lay lay off off employ employees ees,, which which furt furthe herr fuel fuelle led d the the rece recessi ssion on as spen spendi ding ng decr decrea ease sed d du duee to the the rise rise in unemployment. Even the Indian carriers like Air India was deeply affected as many flights were were canc cancel elle led d du duee to inte intern rnal al (emp (emplo loye yeee rela relati tion ons) s) as well well as exte extern rnal al problems, which has been discussed later. Social Factors
The changing travel habits of people have very wide implications for the airline industry. industry. In a country like India, there are people from varied income groups. The airlines have to recognize these individuals and should serve them accordingly. accordingly. Air India needs to focus on their clientele which are mostly low income clients & their habits in order to keep them satisfied. The destination, kind of food etc all has to be chosen carefully in accordance with the tastes of their major clientele. Especially, since India is a land of extremes there are people from various religi religions ons and castes castes and every every indivi individua duall travel travellin ling g by the airlin airlinee would would expect customization to the greatest possible extent. For e.g. A Jain would be satisfied with the service only if he is served jain food and it should be kept in mind that the customers next to him are also jain or at least vegetarian.
Technological Factors
The increasing use of the Internet has provided many opportunities to airlines. For e.g. Air Sahara has introduced a service through the internet, wherein the
unoccupied seats are auctioned one week prior to the departure. Air India also provides many internet based services to its customer such as online ticket booking, updated flight information & handling of customer complaints. USTDA (US trade & development association) is funding a feasibility study and workshops for the Airports Airports Authority Authority of India as part of a long-term effort to promote Indian aviation infrastructure. The Authority Authority is developing modern communication, navigation, surveillance, and air traffic management systems for India's aviation sector that will help the country meet the expected growth and demand for air passenger and cargo service over the next decade. A proposal for restructuring the existing airports at Delhi, Mumbai, Chennai and Kolkata through long-term lease to make them world class is under consid considera eratio tion. n. This This will will help help in attrac attractin ting g invest investme ments nts in impro improvin ving g the infrastructure and services at these airports. Setting up of new international airports at Bangalore, Hyderabad and Goa with private sector participation is also envisaged. A good example of the impact of technology would be that of AAI, wherein with the help of technology it has converted its obsolete and unused hangars into profit profit centers centers. AAI is now leasing these hangars to international airlines and is earning huge profits out of it. AAI has also tried to utilize space that was previously wasted installing a lamination machine to laminate the luggage of travelers. This activity earns AAI a lot of revenue. These technological changes in the environment have an impact on Air India as well. well. Better Better airpo airport rt infras infrastru tructu cture, re, means means better better handli handling ng of airpla airplanes nes,, which can help reduce maintenance cost. It also facilitates more flights to such destinations.
Segmentation: The Airline Industry Most airlines use a very traditional segmentation strategy, strategy, dividing passengers into business travelers and economy travelers (mostly leisure travelers). The common strategy is to squeeze as much profit as possible from business class passengers who are attracted by superior services and corresponding high prices and, at the same time, to try and fill the rest of the seats and ensure growth by attracting economy class passengers with lower fares.
Business passengers
They are crucial for airlines' profitability. With less spare time and more cash in their pockets, they agree to pay a premium price for a premium service. Today business passengers account for approximately 48% of passengers, and these 48% contribute 66% of airlines' revenue. The premium prices they pay provide wider and more comfortable seats, better choice of meals and seats, luxurious lounges. Airlines can choose from a multitude of premium services to offer to business travelers. Some of these extras range from seats equipped with faxes and telephones, to gambling machines, showers, massage services and suit ironing services in the recently introduced arrival lounges. Business passengers believe it is worth extra money if they can save time and arrive looking fresh for an important meeting. Business passengers will avoid transit flights even if a longer flight could save them money. But amongst other perks, flexible reservation services are probably the most important to them. Reservations for business trips are often made just a couple of days in
advance. A no penalty cancellation policy is also very important to business passengers. The best way to reach business travelers is through printed advertising Many airlines design special promotional programs that target corporate bookers and meet meetin ing g plan planne ners rs,, who who are are resp respon onsi sibl blee for for bu busi sine ness ss trip tripss rese reserv rvat atio ions ns.. Frequent flyer programs are an added bonus for business passengers.
Leisure Travelers
They represent a totally different market. The most important consideration for most of them is the price. price. The lower lower the airfare, airfare, the more people will fly the respective airline. By and large, with the exception of wealthy travelers, this segment will not pay extra for premium services and will agree to change several planes during their trip if this option costs less than a direct flight. Despite lower margins provided by this segment, leisure travelers are very important to an airline's bottom line. Part of the reason is that technological progress in the area of tele-conferencing and increased use of the internet for busin business ess commu communic nicati ations ons is expect expected ed to reduce reduce the number number of busine business ss travelers. Thus, airlines are counting on the leisure segment to provide further growth. How can airlines benefit from the growth opportunities in the leisure segment without losing immediate profit opportunities in the business segment? This is a tough issue in airline marketing management. By improving services and
reducing prices for economy class passengers, airlines risk that some business passengers will switch to economy class. Since business class passengers are not many, a company relying mostly on busin business ess trave traveler lerss will will often often end up flyin flying g half-e half-empt mpty y planes planes,, losing losing the potential revenue generated by lower priced economy seats. On the other hand, few airlines catering solely to economy class passengers can be successful because a low fare carrier must fill the entire plane if it is to generate revenue from its low-margin low-margin operations. Thus he/she tries to sell early, the economy seats at a cheaper price, while keeping enough seats reserved for business travelers, who usually book at the last last minute minute.. Keepin Keeping g just just the right right amount amount of busine business ss seats seats reserv reserved ed is important: selling too few economy seats in advance may result in a less-thanfull plane while selling too many economy seats may result in a full plane, but with insufficient revenue to gain a profit. 7 P‘s of Jet Airways and Kingfisher Airlines Product
• Business Class, Economy class
Price
• Price Mix, Discount as per frequent flyer program
Place
• It is connected to maximum cities
Promotion
• TV ads, Hoardings, Internet, Calendars
People Well trained crew members • Well
Process
• On Ground, simpler process for Boarding the Flight
Physical Evidence
• Good seats, Dinning facilities, Entertainment facilities RESEARCH OBJECTIVES
1. To study the custome customerr preferenc preferencee of service service quality quality of each of the two airlines under study. 2. To compare compare the service service quality quality of the airline airliness under study study. 3. To find out the dissatisfaction among the passengers if any. any.
4. After findin finding g out the areas of dissatisfac dissatisfaction, tion, to give give related related suggestions suggestions to the Airlines company.
RESEARCH METHODOLOGY Questionnaire Design
The respondents were asked to evaluate the service quality of the service provided by the airline, which they have travelled. For example, the on-time services of the airline was measured through the question.
Similarly, other good ground service – in-flight service and post-flight service were measured. The questionnaire also had a question to check the response to the the loya loyalt lty y prog progra rams ms prov provid ided ed by the the airl airlin ines es to freq freque uent nt flie fliers rs.. Othe Other r questions relating to the Ticket Counter, Security Check, Express Baggage, Delay of thee Flights etc were asked. Also the frequency and purpose of the flights was asked. Also the reason for travelling by that flight were asked.
A sample size of 150 respondents was taken who have travelled by both, Jet Airways and Kingfisher Airlines. Further 75 questionnaires were filled by people on behalf of Jet Airways whereas 75 questionnaires were filled by people on behalf of Kingfisher Airlines.
After the survey, a thorough analysis was done. Respective tables and pie charts charts were were formed formed according accordingly ly.. Various arious percentag percentagee were also found found out. Analysis of each question was done. After that findings, and limitations were given. Also the suggestions were given.
FINDINGS/ANALYSIS 1) FREQUE FREQUENCY NCY OF FLIG FLIGHTS HTS
Every week Fortnightly Monthly Depends Total
Jet Airways 25 23 14 13 75
Kingfisher 17 40 15 3 75
Total 42 63 29 16 150
Out of 75 responses for Kingfisher, Kingfisher, 40 people had flights every fortnight.
And out of 75 responses for Jet, 25 replied for every week which was highest in it and 23 in fortnightly 2) SERVICES SERVICES BY RESERV RESERVATION AGENT AGENT
Highly satisfied Satisfied Average Dissatisfied Total
Jet Airways 12 36 18 9 75
Kingfisher 19 29 17 10 75
Total 31 65 35 19 150
Out of 75 responses for Kingfisher, majority of people, i.e. 29 were satisfied with the services services of reservation reservation agent. agent. Whereas Whereas 36 people, ie. Almost Almost 50% were satisfied with the services of reservation agent. This shows that reservation services provided by Jet are more satisfactory than that provided by Kingfisher.
3) TIME TIME CONV CONVEN ENIE IENC NCE E Not Kingfisher Jet Airways Total
Imp 43 10 53
at
all Somewhat Imp 12 16 28
Very
Total
Important 20 49 69
75 75 150
Out Out of 75 resp respon onse sess for for King Kingfi fish sher er,, 43 peop people le resp respon onde ded d that that time time convenience was not at all important for them whereas majority in Jet, i.e. 49 people, summing upto 65.33% said that time convenience was very important fact factor or for them. hem. Th Thus us it show showss that hat to the the peop people le for who hom m TIME IME CONVENIENCE is an important factor, preferred Jet over Kingfisher.
FREQUENT FLYER PROGRAM Not
at
all Somewhat
Very
Total
Imp Imp Important Kingfisher 75 54 19 2 Jet Airways 48 75 21 6 Total 102 40 8 150 Out of 75 responses, almost 72%, i.e. 54 people chose Kingfisher irrespective of frequent frequent flyer flyer program. program.
Also, Also, Jet respon responses ses show that frequen frequentt flyer flyer
program is not much an important factor in choosing this airline.
This throws light on the factor that both the airlines do not have the customers because of frequent flyer program. INFLIGHT SERVICES
Kingfisher Jet Airways Total
Not
Somewhat
Very
Total
important 10 14 24
important 16 23 39
important 49 38 87
75 75 150
Out of the 75 people surveyed for Kingfisher, majority of them i.e.49 people rated the In-flight services as very important. Whereas out of the 75 people surveyed for Jet,38 people rated the In-flight services as very important. Thus In-flight Services is also a major factor for selecting the Airlines.
TRAVEL AGENT RECOMMENDATION
Kingfisher
Not
Somewhat
Very
Total
important 20
important 21
important 34
75
Jet Airways Total
15 35
20 41
40 74
75 150
Out of the 75 people surveyed for Kingfisher, majority i.e.34 flew with it as their travel agent/Company had made reservations for it. Whereas out of the 75 people surveyed for Jet, majority i.e.40 flew with it as their Travel agent/Company had made reservations for it.
4) Was Was price a major factor in choosing the airline?
No Yes Total
Kingfisher 65 10 75
Jet 68 07 75
Total 133 17 150
Out of the 150 people surveyed, s urveyed, price was not a major concern for most of the people. That is 133 people had gone for the airline irrespective of the prices. Thus price was not a major factor.
5) What is your main purpose in taking this trip?
Jet 38 37
Total
Business Purpose Personal/Pleasure
Kingfisher 41 34
Purpose Total
75
75
150
The reasons for travelling by Jet and Kingfisher were for business as well as personal and pleasure reasons. There was not much difference between the 2 reasons.
6) Please indicate the amount of time you waited for the following services? Aircraft Boarding
5 minutes 10 minutes 11-20 minutes Total
Kingfisher 30 36 09 75
Jet 24 40 11 75
Total
150
Out of the 75 people surveyed for Kingfisher, almost the same amount of people waited for a period of 5 minutes and 10 minutes. Whereas for Jet, majority of the people i.e. 40 people had to wait for 10 minutes. But in both the cases, very few people had to wait for 11-20 minutes.
Boarding
5 minutes 10 minutes 11-20 minutes Total
Kingfisher 10 38 27 75
Jet 11 35 29 75
Total
150
For Boarding in Kingfisher, majority of the people had to wait for 10 minutes and 11-20 minutes.
Same was the case with Jet. Whereas only 21 people had to wait for 5 minutes.
Security Check
5 minutes 10 minutes 11-20 minutes Total
Kingfisher 39 28 08 75
Jet 36 29 10 75
Total 75 57 18 150
For Security Check, both in Jet and Kingfisher, majority of the people had to wait for a period of only 5 minutes and 10 minutes. Whereas only 18 people had to wait for a period of 11-20 minutes.
COURTESY OF THE STAFF
For Kingfisher, Kingfisher, out of the 75 people surveyed, maximum people i.e. 48 people rated the courtesy of the staff as very good, whereas only 2 people rated it as bad.
For Jet, out the 75 people surveyed, maximum people i.e.44 people rated the courtesy of the staff as very good. Whereas only 6 people rated it as bad. SELF ARRANGEMENT OF TICKETS
Here we see that out of 75 people, only 48 people had made self arrangements to fly fly wher wherea eass rema remain inin ing g 10 102 2 peop people le had had do done ne thei theirr rese reserv rvat atio ions ns eith either er through an agent or the company they were working for.
In Kingfisher, Kingfisher, out of the 75 people only 38 people had done self arrangements wher wherea eass 112 peop people le had had do done ne thei theirr rese reserv rvat atio ions ns thro throug ugh h agen agents ts or the the company they were working for.
DISATISFACTION LEVEL
Out of the 75 people surveyed for Jet, maximum people i.e. 93 people had complaints at the Security Check, 22 people had complaints at the Ticket Counter, 20 people had complaints at the Express Baggage.15 people had no complaints at all.
Out of the 75 people surveyed for Kingfisher, maximum people i.e. 75 people had complaints at the Security Check, whereas 36 people had complaints at the Express Baggage, 16 people had complaints at the Ticket Counter.23 people had no complaints at all. PERSONNEL COMPLAINTS
Regard Regarding ing Person Personnel nel compla complaint ints, s, out of the 75 people people survey surveyed ed for Jet, Jet, maxim maximum um peop people le i.e. i.e. 54 peop people le had had comp compla lain ints ts at the the Secu Securi rity ty Chec Check k personnel, whereas 48 people had personnel complaints at the Ticket Counter, 27 people had complaints complaints at the Express Express Baggage whereas 21 21 people had no complaints at all.
For Kingfisher, out of the 75 people surveyed, maximum people i.e.45 and 43 had complaints at the Security Check and Ticket Counter. Whereas 38 people had no complaints at all.
PERSONAL DET DE TAILS
11) What is your occupation?
Executive Academics Professionals Salesmen Secretary Homemaker Student Self-Employed Retired Total
Jet 35 0 20 0 0 04 08 07 0 75
Kingfisher 25 0 23 0 0 07 10 15 01 75
Total 60 0 43 0 0 11 18 22 1 150
For Jet, out of 75 people, maximum people i.e. 60 people fell in the age group of 36-45, whereas 51 people fell in the age group of 26-35. Only 17 people were in the age group of 18-25.
For Kingfisher, out of 75 people, it was just vice-versa. Maximum people i.e.60 i.e.60 fell in the category category of 26-35, 26-35, whereas 51 fell in the category category of 36-45. 36-45. Only 18 fell in the category of 18-25.
FINDINGS 1) More of fortnight flights were taken in Kingfisher and almost equal in every week and fortnight in Jet. The T he maximum maximum number of people who flew every week or fortnightly fortnight ly were Businessmen, Executives, Professional. Whereas people who flew monthly flew for rare business trips or for pleasure purpose.
2) The dissatisfaction with the reservation agent was mostly due to t he failure in informing about the delay of flights.
3) It shows that to the people for whom TIME CONVENIENCE is an important factor, preferred Jet over Kingfisher.
4) Both the airlines do not have the customers because of frequent flyer program. 5) In-flight Services is a major major factor for selecting the Airlines. Almost Almost all the respondents were highly satisfied with the in-flight services of the airlines. 6) Price was not a major factor for selecting the airlin e as both the airlines are at par and are both highly priced.
7) Waiting time was not a major issue by almost all the respondents. The average waiting time did not exceeded 10 minutes minutes in both bot h of the airlines.
8) Very few of the respondents were discontent with the courtesy of the flight attendants.
9) Maximum respondents had dissatisfaction at the Security Check-point level.
SUGGESTIONS
1. King Kingfi fish sher er shou should ld incr increa ease se the the freq freque uenc ncy y of flig flight htss to the the most most commonly preferred destinations from Ahmedabad. Ahmedabad.
2. King Kingfi fish sher er shou should ld focu focuss on the the tim timing ing of the the flig flight htss and and shou should ld intro introduc ducee early early morni morning ng and late late evenin evening g flight flightss specia specially lly for for the Business Travellers. Travellers.
3. Since Since Jet has its competitor competitor as Kingfish Kingfisher er,, Jet should also also focus more more on providing a personalized touch to the services.
LIMITATIONS
1. The findings findings of this this study are limited limited to the domestic domestic airlin airlinee industry industry in India.
2. This study has not considered industry measures to measure service
quality.
3. We have have measu measured red only the custome customerr prefer preferenc encee of service service quality quality in Ahmedabad.
4. The survey survey could could be done done by taking taking the sample sample size of just just 150 people. people.
FURTHER SCOPE OF STUDY
1) This project project can also be used by Jet Airways Airways and Kingfisher Kingfisher Airlines Airlines for further improvement.
2) Travel Travel Agenci Agencies es can also use this project project to know the existing existing scenario scenario among frequent fliers.
3) The three dimensions dimensions of the SERQUAL SERQUAL i.e. Tangi Tangibles, bles, Reliabili Reliability ty and Assura Assurance nce are relate related d here. here. But the remain remaining ing two dimens dimension ionss i.e. i.e. Responsiveness and Empathy can also be related and studied.
4) This study can be further carried carried on to the International International Airline Industry Industry as well.
5) This This study study can be further further extende extended d to other other airlin airlines es like Air Air Deccan Deccan,, Spice Jet, Indian Airlines, etc.
BIBLIOGRAPHY REFERENCE BOOKS
1) Zeithaml Zeithaml and Bitner Bitner (1996), (1996), Servic Services es Marketing, Marketing, Tata McGraw Hill, New Delhi Venkatesh et al, Service Quality.
2)
Parasuraman, A., Zeithaml, V. A.,& Berry, L. L. (1985).A conceptual model of service quality and its implications for future research.
3) Cunningham, L. F., F., Young Young C. E., & Lee, M. (2002). (2002). Cross-cultural perspectives of service quality and risk in air transportation.
4) Marketin Marketing g Managemen Management, t, 11th 11th editio edition n By Philip Kotler.
NEWSPAPERS
1) The Times Times Of India.(15 India.(15/03/2 /03/2008) 008) 2) Gujarat Gujarat Samach Samachar ar.(15 .(15/03/5 /03/5008) 008)
3) Divya Divya Bhaskar Bhaskar.(16 .(16/03/2 /03/2008) 008)
WEBSITES
1. http://w http://www ww.jeta .jetairwa irways.com ys.com/Cult /Cultures/e ures/en-US n-US/Ind /India/ ia/ 2. http://en http://en.wiki .wikipedia pedia.org .org/wik /wiki/Ai i/Airline rline#Air #Airline line_per _personne sonnell 3. http://www.indianchild.com/i http://www.indianchild.com/india_civil_aviat ndia_civil_aviation.html ion.html
4. http://kingfisherblog.wordpre http://kingfisherblog.wordpress.com/2008/03/17/fl ss.com/2008/03/17/fly-kingfisher y-kingfisher-indias-indiasonly-5-star-airline/ 5. http://en http://en.wiki .wikipedia pedia.org .org/wik /wiki/Ki i/Kingfish ngfisher_% er_%28bee 28beer%29 r%29 6. http://www.iloveindia.com/ec http://www.iloveindia.com/economy-of-indi onomy-of-india/aviation-indu a/aviation-industry stry.html .html
THANK YOU
