CHAPTER-1

CHAPTER-1 RESEARCH METHODOLOGY 1.1 RESEARCH OBJECTIVES The research carried out during the project had many objectives related to the s ervice quality of the Indian airline industry. Some of the objectives of the res earch carried out are listed below: To study the concept of service quality and dimensions governing service quality . To study the service quality of different service providers in the Indian aviati on industry. To measure the service quality with the help of the service quality dimensions f or the service providers. To compare the service quality of different service providers with Kingfisher ai rlines and to find the airline service provider with the best service quality. To understand the knowledge gap or the gap between the managements perception abo ut the customer expectations and the customer expectations. To measure the knowledge gap for the service providers of the Indian aviation in

dustry. 1.2 RESEARCH METHODOLOGY The research methodology gives an idea about the type of research design, the sa mpling techniques, the process of data collection and the instrument used for da ta collection. Let us try to understand all the portions in detail. 1.3 RESEARCH DESIGN The research design in this project was descriptive research design. A descripti ve research design describes marketing characteristics or functions. Also it is qualitative in nature. The project carried out involves measuring service qualit y with the help of service quality dimensions which are the attributes for that service provider or the brand. Hence the project includes describing marketing c haracteristics or functions and thus it is a descriptive research design. 1.4 DATA COLLECTION The data collection in this project was through both the primary and secondary s ources. The primary sources include the customers of the service provider who pr ovided the primary data. Textbooks, journals, internet websites and other magazi nes provided the secondary data for the project. Hence both primary and secondar y data were collected during the project. 1.5 QUESTIONNAIRE The instrument used for the collection of the primary data was a structured ques tionnaire. The questionnaire is to be filled up by the customers of an airline s ervice provider. The questionnaire will have closed ended questions or multiple choice questions.

1.6 SAMPLING TECHNIQUE AND SAMPLE SIZE The sampling technique used in this project was a non-probability sampling. A no n-probability sampling relies on the personal judgment of the researcher rather than chance to select samples. The sampling technique in a non-probability sampl ing was that of a convenience sampling. Convenience sampling attempts to obtain a sample of convenient samples. The selection of the samples is left primarily t o the interviewer. Often the respondents are selected because they happen to be in the right place at the right time. The sample size was kept 200 for the proje ct purpose. 1.7 LIMITATIONS The limitations of the research carried out for the project are as follows: Only 4 service providers are taken into consideration while studying the service quality of the service providers and measuring and comparing them. Hence the wh ole industry was not covered. Moreover only domestic airline services are taken into consideration because of the constraint of time and accessibility. Sample size was 200. Hence it cannot be generalized to a larger population.

CHAPTER-2

SERVICES 2.1 WHAT IS A SERVICE?

In economics and marketing, service is the non-material equivalent of a good. It is claimed to be a process that creates benefits by facilitating a chang e in customers, a change in their physical possessions, or a change in their intangible assets. Service provision has been defined as an economic activity that does not result in owner ship, and this is what differentiates it from providing physical goods.

Service has certain characteristics which differentiates it from products or goo ds. The features or characteristics of services are as follows: Intangibility - Services are intangible in nature and this is the bas ic feature or characteristic of a service that differentiates it from the products or physical goods. For example, a student renders educational services cannot see or feel the knowledge provided by the instructor or the teacher. Simultaneity - Services are simultaneously produced and consumed. The production of the service and the consumption of the service take place at the same time. H ence the services have a characteristic of simultaneity. Perishability - Services are also perishable in nature which means tha t if not sold then cannot be regained. Hence services cannot be stored. In case of an airplane seats not taken up would remain empty during the entire flight. The service capacity of th is flight has perished and cannot be recouped. Services cannot be returned or resold.

Inseparability - The services cannot be separated from the people prov iding the services. The service can never be separated from the service provider . Hence services also have the characteristics of inseparability.

Hence these are the characteristics of services. There are many types of services available. The services can be classified on a particular appropriate basis. Let us try to classify the service on the basis of industry and target effects.

Heterogeneity - Services are heterogeneous because a service is modifie d for each client or each situation. The service delivered can never be the same if deliver ed again. Hence mass production of services is difficult. Both inputs and outputs to the p rocesses involved providing services are highly variable, as are the relationshi ps between these

processes, making it difficult to maintain consistent quality.

Labour intensive - Services are labour intensive. Services usual ly involve considerable human activity, rather than a precisely determined process. Human r esource management is important. The human factor is often the key success fa ctor in service industries.

2.2

TYPES OF SERVICES

There are many types of services and to understand them better, they need to be classified. The services are broadly classified on the following basis: CLASSIFICATION OF SERVICES BY TARGET EFFECTS Services aimed at physical care such as health care, beauty salons , gymnasiums and restaurants Services for intangible assets such as banking, legal consultation, accounting, brokering, insurance and securities services. Services aimed at the mind of the customer such as education, bro adcasting, information, entertainment and amusement. Services aimed at physical possessions and tangible assets such as transport, repair and maintenance, cleaning and janitorial, laundry, gardening and veterina ry services.

CLASSIFICATION OF SERVICES BY INDUSTRY

Services can be classified on the basis of the industry as shown in the table be low:

2.3

TANGIBILITY SPECTRUM

The dichotomy between physical goods and intangible services should not be given too much credence. These are not discrete categories. Most business theorists see a continuum with pure service on one terminal point and pure commodity good on the other terminal point. This continuum is kn own as a tangibility spectrum. For example, a restaurant provides a physical good (the food), but al so provides services in the form of ambience, the setting and clearing of the table, etc. An d although some utilities actually deliver physical goods like water utilities which actual ly deliver water utilities are usually treated as services. Hence there is a pure service a nd there is a pure product on the other side of the tangibility spectrum. Figure 2.3 shows a tangibility spectrum. In the table we can see tha t salt is a pure product whereas teaching is a pure service. The fast food outlets can be conside red as a combination of services and products as food provided is tangible and service pr ovided in terms of hospitality and service delivery is intangible. The airline services are not pure services and not pure products. Airline servic es are somewhere in the middle of the tangibility spectrum as shown in the figure by fa st food outlets. From this we can also conclude that services are different from the products and hence the marketing of services is also different from that of produc ts. Let s try to understand the marketing mix for services which is different f rom the traditional marketing mix of products.

2.4

EXPANDED MARKETING MIX

1. 2. 3. 4.

Product Price Place Promotion

The above given marketing is given for products and is also known as 4 P s of marketing. In case of services the marketing mix is extended. Services have 7 P s of marketing as follows: 1. 2. 3. 4. 5. 6. 7. Product Price Place Promotion People Physical evidence Process

The additional P s of marketing for services have an important role to play. Eac h of them has high level of significance in case of services. Lets us try to understand the expanded marketing mix of services one after the other in detail with suitable e xamples.

PEOPLE The frontline or service-provider employee plays a key role in the servic es delivery process since it is this category of employee that executes the serv ice promise to the customer. The important points about people are as follows: People are the visible face of the service provider. They are the only ones who are seen and heard by the service recipient. For example, the receptionist at th e tax office receives the returns at the counters. We are not allowed to go in a ny further or meet with the taxation officers.

All elements within the control of the firm that communicate the firm s capabilities and image to customers or that influence customer satisfaction with th e firm s products are as follows:

 In many cases, they are the only link between the service provider and the custo mer. As frontline employees, who are in touch with the customers, they carry out the function of marketing of the service to the current and potential customers. Customer satisfaction can be brought about these employees. Therefore, their sat isfaction and motivation are of crucial interest to the service provider. Only the employees promise enables the service provider to make the marketing pro mise to the customer. More importantly, the employees deliver this service promi se to the customers. Thus, they are the crucial element around which the entire performance of the service provider revolves. Hence from this we can say that the service provider employee is the kingpin in the services delivery. They are also known as internal customers. If a service o rganization takes good care of internal customers then only they can ultimately satisfy the external customers. Hence we need to pay greater importance to their psychological and mental make up rather than mere qualifications.

PHYSICAL EVIDENCE the physical evidence of a service comes in different forms an d guises. These include the physical aspects of the location of the service deli very such as the design, functionality, and aesthetics of the place. The air flo w, dcor, temperature, etc. create the right atmosphere for the service delivery. The dress, uniform, appearance, and facial expressions of the frontline employee s form a crucial part of this physical evidence. DIFFERENT PHYSICAL EVIDENCE IN DIFFERENT SERVICE SETTINGS There are essentially three types of encounters between the customer and the ser vice provider. These are: The remote to face but achines such , enquiries, encounter: This type of encounter does not bring the two parties face they may be in touch through letter, e-mail, mail order, delivery m as ATM, etc. Railway reservations through Internet, theatre booking etc. are some examples of this type of encounters.

The indirect personal encounter: This type of encounter occurs on telephone, on Internet, etc. The two parties are not in face to face contact but have some mea ns of instantaneous communication. The examples are after sales service phone nu mbers and helplines for credit cards and bank accounts. The direct personal encounter: This is the most common encounter for the service s provision. The customer is in face to face contact with the service provider. The appearances of the employees, uniforms, settings, etc. all contribute to the perception of the service quality. Internal and external environment and tangible elements together constitute the physical evidence of a service.

PROCESS This means procedures, mechanism and flow of activities by which a servi ce is acquired. Process decisions radically affect how a service is delivered to customers.

For example, at a restaurant the process involves certain steps as following: 1. Providing information with the help of a menu 2. Consulting 3. Order taking 4. Delivering the service as per the order 5. Billing 6. Payment This is a basic and simple process at a restaurant. There can be sses for different services. A process if changed can change the y and hence can also change the service quality perceived by the e process is supposed to be designed properly. It is also a very f marketing in services. many such proce service deliver customers. Henc important mix o

CHAPTER 3

SERVICE QUALITY 3.1 CONCEPT Quality is defined as "Degree to which a set of inherent characteristic fulfils requirements" by ISO 9000. Quality is also defined as Fitness for use by Joseph M. Juran. Fitness in this def inition is defined by the customer. Quality can also be defined in simple words as Conformance to Requirements as defi ned by Philip B. Crosby. The difficulty with this is that the requirements may n ot fully represent what the customer wants; Crosby treats this as a separate pro blem. Quality has particular parameters or dimensions of measurement. The quality of a product can be measured on the basis of certain parameters or dimensions as fol

lows: 1. 2. 3. 4. 5. 6. 7. 8. Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived Image, reputation, brand name, etc.

The dimensions of service quality are different from that of product quality. Th e determinants of service quality are as follows: 1. Reliability 2. Assurance 3. Tangibles 4. Empathy 5. Responsiveness Initially there were 10 dimensions of service quality which were then reduced to only 5 dimensions later. Assurance is a combination of competence, courtesy, cr edibility and security. Empathy is a replacement of access, communication and un derstanding the customer. Hence the previous model of 10 dimensions is reduced t o model of 5 dimensions.

3.2 SERVICE QUALTIY DIMENSIONS The service quality dimensions are already listed earlier and now let us try to understand each and every dimension in detail. RELIABILITY DELIVERING ON PROMISES Reliability is the ability to perform the promised services dependably and accur ately. Normally this may be turned as No excuses service delivery. In its broadest

sense, reliability means that the company delivers on its promises promises abo ut delivery, service provision, problem resolution and pricing. One company that effectively communicates and delivers on the reliability dimension is Federal E xpress (FedEx). Federal Express a courier service organization has positioned it self as a reliable organization in terms of handling and delivering the packages . All firms need to be aware of customer expectations of reliability. Firms that d o not provide the core service that customers think they are buying fail their c ustomers in the most direct way. ASSURANCE INSPIRING TRUST AND CONFIDENCE Assurance is defined as employees knowledge and courtesy and the ability of the f irm and its employees to inspire or convey trust and confidence. This dimension is likely to be particularly important for services that the customer perceives as involving high risk and/or about which they feel uncertain about their abilit y to evaluate outcomes, for example, banking, insurance, and brokerage, medical and legal service. Airlines also need to provide an assurance to the customers as flying is conside red as a high risk as compared to railways or road transport. Also ships and cru ises have to provide an assurance to the customers. TANGIBILITY REPRESENTING THE SERVICE PHYSICALLY Tangibles are defined as the appearance of physical facilities, equipment, perso nnel, and communication materials. All of these provide physical representations or images of the service that customers, particularly new customers, will use t o evaluate quality. While tangibles are often used by service companies to enhan ce their image, provide continuity, and signal quality to customers, most compan ies combine tangibles with another dimension to create a service quality strateg y for the firm. EMPATHY TREATING CUSTOMERS AS INDIVIDUALS Empathy is defined as the caring, individualized attention the firm provides its customers. Empathy means treating the customers as individuals. The essence of empathy is conveying, through personalized or customized services, that customer s are unique and special. Customers want to feel understood by and important to firms that provide service to them. Building relationships is the key factor and helps in building the service quality. RESPONSIVENESS BEING WILLING TO HELP Responsiveness is the willingness to help customers and to provide prompt servic e. This dimension emphasizes attentiveness and promptness in dealing with custom er requests, questions, complaints and problems. Responsiveness is communicated to customers by the length of time they have to wait for assistance, answers to questions, or attention to problems. Responsiveness also captures the notion of flexibility and ability to customize the service to customer needs.

3.3 MOMENTS OF TRUTH Each and every point where a customer comes in contact with the service organiza tion is known as a service encounter. These points of contact create an image or

impression in the customers mind about the service provider. This service encou nter is also known as moment of truth. Such points of contact thus form moments of truth for a service provider. This concept was used and formulated by Jan Carlz on who was the CEO of SAS (Scandinavian Airline Services) during the period 1981 -1993. For example, among the service encounters a hotel customer experiences are check ing in to the hotel, being taken to a room by a bell person, eating a restaurant meal, requesting a wake-up call, and checking out. In a hospital context, a stu dy of patients revealed that encounters with nursing staff were more important i n predicting satisfaction than were encounters with meal service or patient disc harge personnel. Side from common key encounters, there are some momentous encou nters that like the proverbial one bad apple simply ruin the rest and drive the cu stomer away no matter how many or what type of encounters have occurred in the p ast. The Disney Corporation estimates that each of its amusement park customer experi ences about 74 service encounters and that a negative experience in any one of t hem can lead to a negative overall evaluation. Mistakes or problems that occur i n early levels of the service cascade are particularly critical, because a failu re at one point results in greater risk for dissatisfaction at each ensuing leve l.

3.4 GAPS MODEL OF SERVICE QUALITY The service quality has five dimensions as explained earlier. Also the service q uality has a gaps model in which we can understand different types of gaps in th e service quality which can be filled or closed so as to provide a zero defect s ervice. Different people have developed different model for the gaps in service quality. The most extensively used and accepted gaps model of service quality is known as SERVQUAL. SERVQUAL model consists of five gaps in the service quality. One of the five gap s is customer gap and the other four gaps are service provider gaps. The central focus of the gaps model is the customer gap, the difference between customer ex pectations and perceptions. Hence this gap is also known as Expectations Gap. Fi rms need to close this gap between what customers expect and receive in order to satisfy the customers and build long term relationships with them. The four 1. Gap 1 2. Gap 2 3. Gap 3 4. Gap 4 provider gaps are as follows: Knowledge Gap Standards or Design Gap Delivery Gap Communications Gap

CUSTOMER GAP OR EXPECTATIONS GAP The difference between customer expectations and customer perceptions creates th e customer gap. While customer perceptions are subjective assessments of actual service experiences, customer expectations are the standards of, or reference po ints for, performance against which service experiences are compared. Customers perceive that they get what they think they will and should. In practice, a cust omer gap typically exists. The Gap 5 shown in the following figure of service quality is customer gap or ex pectations gap

GAPS MODEL OF SERVICE QUALITY

KNOWLEDGE GAP NOT KNOWING WHAT CUSTOMERS EXPECT This gap is the difference between customer expectations of service and company understanding of those expectations. Management perceptions about the customer e xpectations can be different from the customer expectations. There can be many r easons behind this gap. Some of them are as follows: Provider may not interact d irectly with customers, be unwilling to ask about expectations, or be unprepared to address them. The key factors leading to this type of gap are as follows: o o o o o o o o o Inadequate marketing research orientation Insufficient marketing research Research not focused on service quality Inadequate use of market research Lack of upward communication Lack of interaction between management and customers Insufficient communication between contact employees and managers Too many layers between contact personnel and top management Insufficient relationship focus Lack of market segmentation Focus on transactions rather than relationships Focus on new customers rather than relationship customers

Inadequate service recovery o Inevitable service failures o Not understanding the importance of service recovery

STANDARDS/DESIGN GAP NOT HAVING RIGHT STANDARDS/DESIGN The difference between company understanding of customer expectations and develo pment of customer driven service designs and standards is known as the standards gap or the design gap. Customer driven standards are different from the convent ional performance standards that most services companies establish in that they are based on pivotal customer requirements that are visible to and measured by c ustomers.

The key factors leading to this type of a gap are as follows: Poor service design o Unsystematic new service development process o Vague, undefined service designs o Failure to connect service design to service positioning Absence of customer defined standards o Lack of customer defined standards o Absence of process for setting service quality goals o Absence of process management to focus on customer requirements Inappropriate physical evidence and servicescape o Inappropriate tangibles and physical setting DELIVERY GAP NOT DELIVERING TO SERVICE STANDARDS This type of gap is the difference between the service standards or the service design and the service delivery. It is the discrepancy between development of cu stomer driven service standards and actual service performance by company employ ees. Thus even when standards accurately reflect customers expectations, if the c ompany fails to provide support for them if it does not facilitate, encourage an d require their achievement standards do no good. The key factors leading to this type of gap are as follows: Deficiencies in human resource policies o Ineffective recruitment o Poor employee-technology job fit o Inappropriate evaluation and compensation systems Failure to match supply and demand o Inappropriate customer mix o Over reliance on price Customers not fulfilling roles o Customer lack knowledge of their responsibilities o Customers negatively affect each other

COMMUNICATIONS GAP PROMISES DONT MATCH PERFORMANCE The difference between service delivery and the service providers external commun ications is known as the communications gap. Promises made by a service company through its media advertising, sales force, and other communications may potenti ally raise customer expectations that serve as the standard against which custom ers assess service quality. The discrepancy between actual and promised service

therefore has an adverse effect on the customer gap. The key factors leading to this type of gap are as follows: Lack of integrated services marketing communications o Not including interactive marketing in communications plan o Absence of strong internal marketing program Ineffective management of customer expectations o Not adequately educating customers Over promising o Over promising in advertising o Over promising in personal selling o Over promising through physical evidence cues Inadequate horizontal communications o Insufficient communication between sales and operations

CHAPTER 4

CHAPTER-4 AIRLINE INDUSTRY IN INDIA 4.1 INTRODUCTION Airlines vary from those with a single airplane carrying mail or cargo, through full-service international airlines operating many hundreds of airplanes. Airlin e services can be categorized as being intercontinental, intracontinental, regio nal or domestic and may be operated as scheduled services or charters. DELAG, Deutsche Luftschiffahrts-Aktiengesellschaft (German: acronym for "German Airship Transport Corporation") was the world s first airline. It was founded on November 16, 1909 with government assistance, and operated airships manufacture d by Zeppelin Corporation. Its headquarters were in Frankfurt.

The airline was set up under Air Corporations Act, 1953 with an initial capital of Rs.32 million and started operations on 1 August 1953. It was established aft er legislation came into force to nationalize the entire airline industry in Ind ia. At the time of independence, the number of air transport companies, which were o perating within and beyond the frontiers of the company, carrying both air cargo and passengers, was nine. It was reduced to eight, with Orient Airways shifting to Pakistan. These airlines were: Tata Airlines, Indian National Airways, Air s ervice of India, Deccan Airways, Ambica Airways, Bharat Airways and Mistry Airwa ys. The Open-sky policy came in April 1990. The policy allowed air taxi- operators t o operate flights from any airport, both on a charter and a non charter basis an d 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 taxi-operators carried 15,000 passengers. This number increased to 4.1 lakh in 1992, 29.2 lakh in 1993, 36 lak h in 1994 and 48.9 lakh in 1995. There has been a revolution in air travel in India in the last decade. Ever sinc e the government launched its open sky policy and allowed private players to ent er the arena there has been a sea change in the airline industry in India. Air t ravel has become cheaper and more affordable and the number of people traveling by air has gone up drastically. Consequently, Indian Airports too have changed f or the better. Airports in India have become more swanky and passenger friendly. In the recent past Indian civil aviation sector has grown manifold. The rapid gr owth of Indian economy has resulted in a spillover effect on the airline industr y in India. Several new players have entered the industry and many more are abou t to enter the arena. The arrival of cheap airline carriers in India has spiced up the whole affair. Suddenly the air travel is no more the monopoly of the rich and the mighty. Now it has become a common mans vehicle and revolutionized the w ay a common Indian traveler used to travel. Here is a brief preview of domestic airlines in India. This includes private airlines as well as low cost airlines i n India. A low-cost carrier or low-cost airline (also known as a no-frills or discount ca rrier / airline) is an airline that offers generally low fares in exchange for e liminating many traditional passenger services. The first successful low-cost ca rrier was Pacific Southwest Airlines in the United States, which pioneered the c oncept when their first flight took place on May 6, 1949. Often, this credit has been incorrectly given to Southwest Airlines which began service in 1971 and ha s been profitable every year since 1973. Air Deccan, SpiceJet, GoAir, IndiGo airlines and paramount airways are some of t he low cost carriers in India. Jet airways, Kingfisher airlines and Air Sahara, Air India, and Indian are not considered as the low cost carriers.

Air India was founded as Tata Airlines in 1932, a division of Tata Sons Ltd. (no w Tata Group) by J. R. D. Tata. On October 15, 1932 the founder, J. R. D. Tata f lew a single engined De Havilland Puss Moth registered VT-and carrying air mail (postal mail of Imperial Airways) from Karachi s Drigh Road Aerodrome to Bombay s Juhu Airstrip via Ahmedabad. The aircraft continued to Madras via Bellary pilo ted by Royal Air Force pilot Neville Vincent . Following the end of World War II, regular commercial service was restored in In dia and Tata Airlines became a public limited company on 29 July 1946 under the name Air India.

4.2 AIRLINE INDUSTRY IN INDIAPLAYERS The airline industry in India has a lot of private players as open-sky policy wa s given by government in 1990. After this policy many foreign players entered th e airline industry of India. Also government companies like Air India and Indian airlines were a part of the airline industry of India. The list of existing pla yers in airline industry is as follows: 1. Air India 2. Indian 3. Jet airways 4. SpiceJet 5. Air Deccan 6. Kingfisher airlines 7. Air Sahara 8. GoAir 9. IndiGo 10. Paramount airways 11. Jagson Airlines There are many low cost airlines which are going to enter the industry within a year or so. The list of those players which are waiting to take a wing in 2009/2 010 is as follows: 1. 2. 3. 4. 5. 6. 7. 8. Dev airlines Omega Air Mega airways Magic Air Indus East West Premier Star Air MDLR airlines

4.3 AIRLINE INDUSTRY(INDIA)-CURRENT SCENARIO The airline industry in India today is facing a huge loss. According to an artic le in Businessworld Jan06, for every passenger flying today in India, airlines ar e losing on an average roughly $15 i.e. the gap between the revenue and costs; s ome airlines are losing than others. At 32 million passengers expected to fly in 2008-09, that works out to $480 million or Rs 2,200 crore. In September 2009, a total of 100,000 seats were available per day. By December that went to 120,000 . Since April 2008, the industry has added 120 aircraft. Airlines are buying pla nes like they were peanuts and adding capacity at a frenetic pace. Industry lead er Jet Airways has clocked a loss of over Rs 100 crore in the first half. That Indian industry suffers from the herd mentality is quite evident by the trend s in telecommunications, information technology, BPOthe list is long. Airline has been no different. Everyone worth his salt has jumped into it at the same time, so there is too much capacity. Traffic is growing but capacity is growing faste r. So to break even, airlines have to achieve higher load factors than before. T hat means severe competition and very low fares. Making matters a lot worse is t he obsession with one or two routes. For example, Delhi-Mumbai has close to 44 f lights operating one way

4.4 MARKET SHARE OF MAJOR PLAYERS(DOMESTIC)

Source www.wikipedia.com

4.5 OVERVIEW OF MAJOR PLAYERS

4.5.1 INDIAN AIRLINES Indian Airline is an airline based in Mumbai, India, and focuses primarily on do mestic routes, along with several international services to neighbouring countri es in Asia. Indian Airlines is state-owned, and is administered by the Ministry of Civil Aviation. It is one of the two flag carriers of India, the other being Air India. Though the company that owns and operates the airline continues to be named Indi an Airlines Limited, on 7 December 2005, the airline was rebranded as Indian for advertising purposes as a part of a program to revamp its image in preparation for an initial public offering (IPO). The airline operates closely with Air Indi a, India s national carrier. Alliance Air, a fully-owned subsidiary of Indian Ai rlines, was renamed Air India Regional. In 2007, the Government of India announced that Indian Airlines would be merged into Air India. As part of the merger process, a new company called the National Aviation Company of India Limited (NACIL) was established, into which both Air India (along with Air India Express) and Indian Airlines] (along with Alliance A ir) will be merged. Once the merger is complete, the airline - which will be cal led Air India - will continue to be headquartered in Mumbai and will have a flee t of over 130 aircraft. History The airline is set up under the Air Corporations Act, 1953 with an initial capit al of Rs. 32 million and started operations on 1 August 1953. It was established after legislation came into force to nationalise the entire airline industry in India. Two new national airlines were to be formed along the same lines as happ ened in the United Kingdom with British Overseas Airways Corporation (BOAC) and British European Airways (BEA). Air India took over international routes and Ind ian Airlines Corporation (IAC) took over the domestic and regional routes. Seven former freedom domestic airlines, Deccan Airways, Airways India, Bharat Ai rways, Himalayan Aviation, Kalinga Airlines, Indian National Airways and Air Ser vices of India, were merged to form the new domestic national carrier. Indian Ai rlines Corporation inherited a fleet of 99 aircraft including 74 Douglas DC-3 Da kotas, 12 Vickers Vikings, 3 Douglas DC-4s and various smaller types from the se ven airlines that made it up.

Vickers Viscounts were introduced in 1957 with Fokker F27 Friendships being deli vered from 1961. The 1960s also saw Hawker Siddeley HS 748s, manufactured in Ind ia by Hindustan Aeronautics Limited, join the fleet. The jet age began for IAC with the introduction of the pure-jet Sud Aviation Car avelle airliner in 1964, followed by Boeing 737-200s in the early 1970s. April 1 976 saw the first three Airbus A300 wide-body jets being introduced. The regiona l airline, Vayudoot, which had been established in 1981, was later reintegrated.

Old orange logo of Indian Airlines until the mid-2000s By 1990, Airbus A320-200s were introduced. The economic liberalisation process i nitiated by the Government of India in the early 1990s ended Indian Airlines do minance of India s domestic air transport industry. Indian Airlines faced tough competition from Jet Airways, Air Sahara (now Jet Lite), East-West Airlines, Sky line NEPC, and ModiLuft. As of 2005, Indian Airlines was the second largest airl ine in India after Jet Airways while Air Sahara controlled 17% of the Indian avi ation industry. East-West Airlines, Skyline NEPC and ModiLuft discontinued flight operations but the entry of several low-cost airlines in India, such as Air Deccan, SpiceJet, IndiGo (Interglobe Enterprise) and others like Kingfisher Airlines continue to g ive competition in its market, forcing Indian to cut down air-fares. However, as of 2006, Indian Airlines was still a profit making airline. Indian Airlines Limited is wholly owned by the Government of India through a hol ding company and has 19,300 employees as of March 2007 Its annual turn-over, tog ether with that of its subsidiary Alliance Air, is well over Rs.4000 crores (aro und US$ 1 billion). Together with its subsidiary, Alliance Air, Indian Airlines carries a total of over 7.5 million passengers annually. In December 2007, Air India was invited to join the Star Alliance. Since Indian Airlines is in the midst of merging with Air India, it too will effectively be a member.

4.5.2 INDIGO INTRODUCTION IndiGo is a private domestic low-cost airline based in Gurgaon, Haryana, India. It operates domestic services linking 20 destinations. Its main base is Delhi s Indira Gandhi International Airport. It was awarded the title of Best Domestic Lo w Cost Carrier in India for 2008. 5.3.2History IndiGo Air is owned by an Indian named Mr Rahul Bhatia. The airline commenced op erations on 4 August 2006 with a service from Delhi to Imphal via Guwahati. The airline is owned by InterGlobe Enterprises. It took delivery of its first Airbus A320 aircraft on 28 July 2006 and received six aircraft during 2006. Nine more aircraft were delivered in 2007 taking the total to 15. Former US Airways Execut ive Vice-President, Marketing and Planning Bruce Ashby joined IndiGo as their Ch ief Executive Officer. The airline has also acquired 3 parking spots in Indira G andhi International Airport and Chhatrapati Shivaji International Airport. IndiGo placed an order for 100 Airbus A320 family aircraft during the 2005 Paris Air Show. The total order was worth US $6 billion, one of the highest by any do mestic carrier during the show. The carrier has set a target of serving approxim ately 30 Indian cities by 2010 with a fleet size of 40 A320 aircraft. The airlin e will receive all 100 A320 family aircraft by 2016. The Indian Government has a pproved the airline s aircraft import plan "in principle".

4.5.3 JET AIRWAYS INTRODUCTION Jet Airways is an airline based in Mumbai, India. It is India s second largest a irline after Air India and the market leader in domestic sector. It operates ove r 400 daily flights to 80 destinations worldwide. In July 2008, Which? magazine ranked Jet Airways as the world s best long-haul a irline after Singapore Airlines.In a poll conducted by SmartTravelAsia.com in Se ptember 2008, it was voted as the world s seventh best airline overall. Jet Airw ays has also won a survey award for the quality of its catering from Which? maga zine. Jet Airways also operates two low-cost airlines, namely JetLite (formerly Air Sahara) and Jet Airways Konnect. History Jet Airways was incorporated as an air taxi operator on 1 April 1992. It started Indian commercial airline operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft. In January 1994, a change in the law enabled Jet Airway s to apply for scheduled airline status, which was granted on 4 January 1995. It began international operations to Sri Lanka in March 2004. While the company is listed on the Bombay Stock Exchange, 80% of its stock is controlled by Naresh G oyal (through his ownership of Jets parent company, Tailwinds, and has 10,017 emp loyees (at March 2007) Jet Airways Airbus A340-300E at London Heathrow Airport in 2005 with the 1993-20 07 liveryNaresh Goyal, who already owned Jetair (Private) Limited, which provide d sales and marketing for foreign airlines in India, set up Jet Airways as a ful l-service scheduled airline to compete against state-owned Indian Airlines. Indi an Airlines had enjoyed a monopoly in the domestic market between 1953, when all major Indian air transport providers were nationalised under the Air Corporatio ns Act (1953), and January 1994, when the Air Corporations Act was repealed, fol lowing which Jet Airways received scheduled airline status. Jet Airways Boeing 777-300ER at San Francisco International Airport in the airli ne s new livery introduced in 2007Jet Airways and Air Sahara were the only priva te airlines to survive the Indian business downturn of the early 1990s. In Janua ry 2006, Jet Airways announced that it would buy Air Sahara for US$500 million i n an all-cash deal, making it the biggest takeover in Indian aviation history. T he resulting airline would have been the country s largest] but the deal fell th rough in June 2006. On 12 April 2007, Jet Airways agreed to buy out Air Sahara for 14.5 billion rupe es (US$340 million). Air Sahara was renamed JetLite, and was marketed between a low-cost carrier and a full service airline. In August 2008, Jet Airways announc ed its plans to completely integrate JetLite into Jet Airways. In October 2008, Jet Airways laid off 1900 of its employees, resulting in the la rgest lay-off in the history of Indian aviation. However, later, the employees h ave been asked to return to work. Civil Aviation Minister Praful Patel said that the management reviewed its decision after he analyzed the decision with them.[ 9][10] In October 2008, Jet Airways and rival Kingfisher Airlines announced an alliance which primarily includes an agreement on code-sharing on both domestic and inte rnational flights, joint fuel management to reduce expenses, common ground handl ing, joint utilization of crew and sharing of similar frequent flier programs.[1 1] On 8 May 2009, Jet Airways launched another low-cost airline, Jet Airways Konnec t. The new airline uses spare aircraft from Jet Airways routes that were discon tinued due to low passenger load factors. It also uses the same operator code as Jet Airways. The decision to launch a new brand instead of expanding the JetLit e network was taken considering the regulatory delays involved in transferring a ircraft from Jet Airways to JetLite, as the two have different operator codes.[1 2] Starting 8 September 2009, several Jet Airways pilots went on a simulated strike by reporting sick and failing to turn up for duty. The stated reason for the pi lots action is that the pilots "are protesting against the dismissal of two sen

ior pilots last month by the airline." [13] On 9 September 2009, the airline had to cancel over 160 domestic flights due to this reason.[14]. The five-day strik e by pilots ended on 13 September 2009. It led to a cancellation of 800 flights where more than 400 of the company s pilots called in sick. According to Indian media reports, the strike cost the airline some $8m (4.79m) a day.[15] Services Cabin classes With the arrival of its new Boeing 777-300ER and Airbus A330-200 aircraft, Jet A irways has introduced a new cabin with upgraded seats in all classes. The Boeing 777-300ER aircraft has three classes of service: First, Premire (Business), and Economy. The Airbus A330-200 aircraft have two classes: Premire and Economy. All Airbus A330-200 and Boeing 777-300ER aircraft have this feature. Boeing 737 airc raft are configured differently. Jet Airways has a three-star rated Business and First Class, and is in the top twenty-five business classes reviewed by Skytrax . Economy class has been reviewed as a three-star product by Skytrax.Jet Airways First Class Suite on board a Boeing 777-300ER. First Class First class is available on all Boeing 777-300ER aircraft. All seats convert to a fully-flat bed, similar to Singapore Airlines first class seat but much smalle r. It was the twenty-second airline in the world to have private suites All seat s in First have a 21-inch widescreen LCD monitor with audio-video on-demand syst ems (AVOD), in seat power supply, and USB ports etc. Jet Airways is the first In dian airline to offer fully-enclosed suites on its aircraft; each suite has a cl osable door, making for a private compartment. Skytrax consumer airline reviewer s recently rated Jet Airways First Class as being 14th best in the world. Premire Premire (Business Class) on the Airbus A330-200 and Boeing 777-300ER internationa l fleet has a fully-flat bed with AVOD entertainment. Seats are configured in a herringbone pattern (1-2-1 on the Boeing 777-300ER, and 1-1-1 on the Airbus A330 -200), with each seat offering direct access to the aisle. Premire seats on the A 330-200s leased from ILFC are configured differently in a 2-2-2 non-herringbone pattern. Each Premire Seat has a 15.4-inch flat screen LCD TV with AVOD. USB port s and in-seat laptop power are provided. On the short-haul/domestic Boeing 737-700/800, all new aircraft are equipped wit h AVOD. All seats are standard recliner business-class seats with a few newer ai rcraft with electronic recline and massager. Economy Class Economy class on Jet s Airbus A330-200, Boeing 737-700/800 and Boeing 777-300ER aircraft has 32-inch seat pitch. Seats on the Boeing 777-300ER/Airbus A330-200 h ave a "hammock-style" net footrest. The cabin is configured in 3-3-3 abreast on the Boeing 777-300ER, 2-4-2 on the Airbus A330-200, and 3-3 in the Boeing 737. E ach Economy seat on the 777-300ER/A330-200 has a personal 10.6-inch touch screen LCD TV with AVOD. Some recently acquired Boeing 737-700/800 aircraft also feature Personal LCD scr eens with AVOD. All three classes feature Mood lighting on the Airbus A330-200 and Boeing 777-30 0ER, with light schemes corresponding to the time of day and flight position.

4.5.4 SPICE JET INTRODUCTION SpiceJet is a low-cost airline based in Delhi, India. It began service in May 20 05 and by 2008, it was India s second-largest low-cost airline in terms of marke

t share. SpiceJet was voted as the best low-cost airline in South Asia and Central Asia r egion by Skytrax in 2007. Rising fuel costs and increasing competition resulted in SpiceJet posting a loss in the first quarter of 2008-09. In August 2008, Spic eJet announced plans to raise US$100 million through foreign investment. History SpiceJet was earlier known as jadoo airlines , a reincarnation of ModiLuft. It i s promoted by Ajay Singh and the Kansagra family. SpiceJet marked its entry in service with Rs. 99 fares for the first 99 days, wi th 9,000 seats available at this rate. This deal was followed it up with a Rs. 999 promotional scheme on select routes. Their marketing theme "offering low everyday spicy fares and great guest serv ices to price conscious travelers. Their aim is to compete with the Indian Railw ays passengers travelling in air conditioned coaches. On 15 July 2008 Billionaire Wilbur Ross suggested he would invest $80 million (a bout Rs 345 crore) in the low cost airline. The board of directors of SpiceJet a ccepted an offer in-principle from the US-based PE firm that would make availabl e about Rs 345 crore to SpiceJet, a joint statement issued by SpiceJet and WL Ro ss & Co. Spicejet names their airlines as the Modi family owns the group which is called the Spice Group and also have GSM mobile services in India called Spice Telecom 4.6 Fiscal Issues in Aviation Industry Airlines are an important part of the Indian economy. Apart from contributing co nsiderably to the national exchequer and providing significant employment opport unities, a whole host of industry sectors from tourism to hospitality. The high operating-cost environment in India, coupled with the competitive natur e of the Airline business, has resulted in a continued strain on the health of t he airlines in India.

Fiscal

Issues: Rationalizing ATF Prices to International Benchmarks Withholding tax on leased aircraft Fringe Benefit Tax Service Tax Sales Tax Cenvat Credit on ATF Hedging of Aviation Turbine Fuel (ATF)

ATF Fuel currently accounts for close to 40% of the total operating costs for airlin es in India. The estimated annual fuel bill for the industry is around USD 1.7 b illion, based on September 2006 rates. There is also a tremendous wastage of fue l in the air & at the tarmac, due to traffic congestion in Delhi and Mumbai that the airlines have to bear. Current ATF prices in India (Dec 2009)

Domestic Flights Rs. 39,000 / kilolitre Following the dismantling of the Administered Price Mechanism (APM) effective Apri l 1, 2001, the prices of ATF in India are based on the International Import Parit y Prices, and directly linked to the benchmark of Platts publication of FOB Arabia n Gulf ATF prices (AG); and do not relate to the actual cost of producing ATF in India. ATF prices for domestic operations also include Freight charges from Gul f to India, Customs Duty of 10%, domestic transportation and other charges, Exci se Duty of 8.16% (including cess). Even though the ATF supplied at Indian airports (both for domestic and internati onal operations) is not imported into India but is the product of crude refined in Indian refineries from imported crude, the 10% Customs Duty is taken into acc ount in fixing .

Withholding tax on leased aircraft Section 10(15A) of IT Act of 1961 provides exemption from payment of withholding tax on lease rental incomes on aircraft and engines earned by a non-resident Le ssor from an Indian company, subject to respective agreements being approved by the Indian Government. This exemption is currently valid only for lease agreemen ts which have been signed prior to 31 March, 2007. The non-availability of this exemption subsequent to March 2007 will significantly increase fleet acquisition costs of Indian carriers, particularly in a market where demand for aircraft is greater than supply. The aircraft leasing finance companies have a gross up clause in their agreement s whereby the WHT is paid not by the lessor (lease company), but by the lessee ( Indian Airline). The vast majority of countries too, impose no withholding tax o n lease rentals. The few countries that do impose a WHT, have allowed planning and structural alternatives to minimize the taxes, such as leasing the aircraft through our existing foreign subsidiaries. Previously, Australia and Japan had w ithholding tax laws, but those. The leasing route is an established industry practice for airlines globally. Maj or international leasing companies indicate that the vast majority of countries do not impose withholding taxes on lease rentals payable. In all cases, the less ors require the leasing companies to assume the liabilities for any withholding taxes imposed as also of all indirect taxes applicable such as value added and p roperty taxes. All aircraft and engine lease agreements thus inevitably contain clauses that require the lessee to gross-up the payments. The non-availability of this exemption will significantly increase the fleet acq uisition costs of Indian carriers, particularly in a market where demand for air crafts is greater than the supply. Fringe Benefit Tax This tax has also been made applicable on free / concessional passages granted to airline executives and family expenses for crew hotel accommodation provided to passengers due to delays & cancellations; and expenses on catering and inflight entertainment. None of these items can be considered as fringe benefits. There is thus a need to

remove these from the coverage of FBT. Service Tax F& J Class tickets: This tax is not global practice, and therefore puts Indian c arriers potential as International network carriers in jeopardy as it increases t he total amount a passenger connecting through India must pay as compared to con nections via any other point. Service tax on landing, airport & air navigation fees: India has imposed a 10.2% service tax fee on landing, airport and air navigation fees. This greatly reduc es the competitiveness of India s air transport sector. Sales Tax There is a disparity in the fuel sales tax between Turbo Props and Regional Jets (less than 100 seaters). While Turbo Props enjoy substantially lower sales tax concessions, Regional Jets which are also deployed on the same routes are charge d higher sales tax for their fuel needs. This is not helpful for the promotion a nd good health of Indias Regional Carriers. Sales Tax / VAT are payable on all supplies meant for international voyages irre spective of the jurisdiction of its consumption. There is a need for extending t he same benefit to the airlines as in the case of exporters where they are exemp t from payment of any Excise Duty / Sales Tax on their inputs on all its procure ments dedicated for its international operations. Cenvat Credit on ATF Non-allowance of credit to the airlines on ATF is against the fundamental princi ple of the CENVAT provisions resulting in the cascading effect of taxes.

Hedging of Aviation Turbine Fuel (ATF) De-regulation of Commodity Hedging is proceeding on a slow path. Domestic airlin es have to procure ATF only through domestic refineries at International Prices. Since they are not physically importing the commodity, the airlines are not per mitted to hedge the commodity. In a upward moving oil regime, the airlines have no option but to see their inpu t costs explode and whenever possible, pass on the same to passengers. A similar situation was faced by local refiners on hedging their refinery margins where t he Government and RBI came out with a notification permitting national oil compa nies to hedge their refinery margins without having physical import/exports. At a time when there are concerns of crude continuing to be floored at USD 50-55 wi th no apparent ceiling in sight. An urgent re-look at the present oil/petro products hedging regulations is neede d. Domestic airlines should be permitted to hedge their ATF price risk. Many glo bal airlines have used fuel hedging for effective risk management for themselves .

CHAPTER 5

CHAPTER-5 KINGFISHER AIRLINES Kingfisher Airlines Limited is a major Indian airline. Kingfisher operates more than 400 flights a day and has a network of 80 destinations, with regional and l ong-haul international services.[1]. Kingfisher Airlines, through one of its hol ding companies United Breweries Group, has a 50 percent stake in low-cost carrie r Kingfisher Red. Kingfisher Airlines is one of six airlines in the world to have a five-star rati ng from Skytrax, along with Asiana Airlines, Malaysia Airlines, Qatar Airways, S ingapore Airlines and Cathay Pacific Airways. In May 2009, Kingfisher Airlines c arried more than a million passengers, giving it the highest market share among airlines in India. Kingfisher has its registered office in the UB Tower in Bangalore and its head o ffice in the Kingfisher House in Mumbai. 5.1History: Kingfisher Airlines registered office at the UB Group Towers in Bangalore, India The airline started operations on 9 May 2005, following the dry lease of four ne w Airbus A320-200 aircraft.[7] Its first flight was from Mumbai to Delhi. At the launch of the airline, Dr. Mallya said that he is "committed to achieving our a mbition of making Kingfisher Airlines India s largest private airline both in ca pacity and market share by 2010." Kingfisher was the first Indian airline to have in-flight entertainment (IFE) sy stems on every seat even on domestic flights. All passengers were given a "welco me kit" consisting goodies such as a pen, facial tissue and headphones to use wi th the IFE system. On 14 July 2008, Kingfisher unveiled its first ever Wide-body aircraft, a Airbus A330-200 (registered VT-VJL) at the 46th Farnborough Airshow held in July 2008. On 3 September 2008, Kingfisher started its international operations by connecti ng Bangalore with London. On 15 September 2009 the London service was withdrawn. On 23 February 2010 Kingfisher announced that it would be joining the Oneworld a irline alliance by 2011 subject to regulatory approval 5.2 Cabin classes: Domestic

Kingfisher First The domestic Kingfisher First seats have a 48 inch seat pitch and a 125 degree s eat recline. There are laptop and mobile phone chargers on every seat. Passenger s can avail of the latest international newspapers and magazines. There is also a steam ironing service on board Kingfisher First cabins. Every seat is equipped with a personalized IFE system with AVOD which offers a wide range of Hollywood and Bollywood movies, English and Hindi TV programmes, 16 live TV channels and 10 channels of Kingfisher Radio. Passengers also get BOSE noise cancellation hea dphones. Domestic Kingfisher First is only available on selected Airbus A320 family aircr aft.

Kingfisher Class The domestic Kingfisher Class has 32-34 inch seat pitch with footrests. Every se at is equipped with personal IFE systems with AVOD on-board the Airbus A320 fami ly aircraft. As in Kingfisher First, passengers can access the latest movies, En glish and Hindi TV programmes, live TV and Kingfisher Radio. On-board the ATR 72-500s there are 17 colour LCD drop-down screens mounted along with loudspeakers for audio in the cabin overhead, a head-end unit to handle CD s and DVDs, and a crew control panel. The screens measure 12.7 cm by 9.3 cm, wei gh 0.2 kg each and are spaced every two or three seat rows along both sides of t he cabin.Economy class meal on-board a Kingfisher Airlines domestic flight Kingfisher Red After Kingfisher Airlines acquired Air Deccan, its name was changed to Simplifly Deccan and subsequently to Kingfisher Red. Kingfisher Red is Kingfisher Airline s low-cost class on domestic routes. Passengers are given complimentary in-flig ht meals and bottled water. A special edition of Cini Blitz magazine is the only reading material provided. Kingfisher Airlines is the first airline in India to extend its King Club freque nt flyer program to its low-cost carrier as well. Passengers can earn King Miles even when they fly Kingfisher Red, which they can redeem for free tickets to tr avel on Kingfisher Airlines or partner airlines.

International Kingfisher First The international Kingfisher First has full flat-bed seats with a 180 degree rec line, with a seat pitch of 78 inches, and a seat width of 20-24.54 inches.[15] P assengers are given Merino wool blankets, a Salvatore Ferragamo toiletry kit, a pyjama to change into, five-course meals and alcoholic beverages. Also available are in-seat massagers, chargers and USB connectors. Every Kingfisher First seat has a 17 inch widescreen personal television with AV OD touchscreen controls and offers 357 hours of programming content spread over 36 channels, including Hollywood and Bollywood movies along with 16 channels of live TV, so passengers can watch their favorite TV programmes live. There is als o a collection of interactive games, a jukebox with customisable playlists and K ingfisher Radio. Passengers are given BOSE noise cancellation headphones. The service on board the Kingfisher First cabins includes a social area comprisi ng a full-fledged bar staffed with a bartender, a break-out seating area just ne arby fitted with two couches and bar stools, a full-fledged chef on board the ai rcraft and any-time dining. A turn-down service includes the conversion of the s eat into a fully-flat bed and an air-hostess making the bed when the passenger i s ready to sleep. Both Kingfisher First and Kingfisher classes feature mood lighting on the Airbus

A330-200 with light schemes corresponding to the time of day and flight positio n.

Kingfisher Class The international Kingfisher Class seats offer a seat pitch of 34 inches, a seat width of 18 inches and a seat recline of 25 degrees (6 inches). Passengers get full length modacrylic blankets, full size pillows and business class meals. The re are in-seat chargers and USB connectors. Each Kingfisher Class seat has a 10.6 inch widescreen personal television with A VOD touchscreen controls. The IFE is similar to that of the international Kingfi sher First class. In-flight entertainment Kingfisher s IFE system is the Thales TopSeries i3000/i4000 on-board the Airbus A320 family aircraft, and Thales TopSeries i5000 on-board the Airbus A330 family aircraft provided by the France-based Thales Group.[16] Kingfisher Lounge Kingfisher Lounges are offered to Kingfisher First passengers, along with King C lub Silver and King Club Gold members. Lounges are located in: India Bangalore Chennai Delhi Hyderabad Mumbai King Club The Frequent-flyer program of Kingfisher Airlines is called the King Club in whi ch members earn King Miles everytime they fly with Kingfisher or its partner air lines, hotels, car rental, finance and lifestyle businesses. There are four leve ls in the scheme: King Club Base, Red, Silver and Gold levels. Members can redee m points for over a number of schemes. Gold and Silver members enjoy access to t he Kingfisher Lounge, priority check-in, excess baggage allowance, bonus miles, and 2 Kingfisher First upgrade vouchers for Gold membership.

Chapter 6 Findings and analysis Q. How Often Do You Fly? This question gave an idea about the frequency of traveling through airlines for a particular respondent. This question gives an idea whether the respondents ha ve a past experience or are new to the services or are frequent users of airline services. 20% of the respondents used the airline service once a year which is the lowest in the category. 12.5% of the respondents used the airlines for trave ling once in every 6 months. 15% of the respondents used the airlines for travel ing once in a month. 52.5% of the respondents used the airline services frequent ly.

FREQUENCY OF TRAVELING THROUGH AIRLINES DEMOGRAPHICS OF THE RESPONDENTS The questions related to the demographics of the respondents are explained in th is section. The questions were related to the age, gender, occupation and income . All the important factors of demographics are covered in these characteristics . The demographics of the respondents are shown in the following charts which gi ve us an idea about the customer profile or the respondents profile.

Age group of Respondents: 14% of respondents fall between the age group of 0-18 years, 26% of respondents f alls between the age of 18-23 years, 30% of respondents falls between the age gro up of 31-45 years, 20% of respondents falls between the age group of 45-60 years , 10% of respondents falls between the age group above 60 years.

GENDER: INCOME Income level of people varies from 0-2 lakhs to 10 lakhs and above where maximum respondents falls between the income level of 2-5 lakhs where as there are almo st equal number of respondents from 0-2 lakhs , 5-10 lakhs and 10 lakhs and abov e. The remaining questions in the questionnaire were related to the service quality dimensions which are taken together for a single service provider. Then the tot al service quality of all the Service providers is compared. Also the service qu

ality dimensions are found for individual service providers. As there were certain constraints in carrying out the project only 4 service pro viders were taken into consideration for calculating the service quality. The se rvice providers taken into consideration during the project are as follows: 1. SpiceJet

2. Jet Airways 3. Indian Airlines 4. Kingfisher Airlines For all the service providers mentioned above every service dimension was calcul ated and a total score for service quality is measured. This total score of all the service providers is compared and then the service provider with the best se rvice quality is found. Now the data for the service providers for the service quality dimensions are an alyzed and the results are given in the next section. The section gives the deta ils about the service quality dimensions in individual service provider. Then a comparison of the total score of service quality is carried out for all the serv ice providers which are explained in the later portion of the analysis. Let us first try to measure the knowledge gap of all the service providers and t hen we can measure the dimensions of service quality and compare the overall ser vice quality of all the service providers. KNOWLEDGE GAP This was the only gap which could have been calculated in the project as far as the gaps in service quality are concerned. The knowledge gap is the gap between the managements perceptions about the customers expectations and the customers expe ctations. Given below is a chart which gives an idea about the knowledge gap exi sting in all the service providers taken into consideration. KNOWLEDGE GAP FOR ALL SERVICE PROVIDERS From this chart we can conclude the following: Kingfisher has the least gap and hence it understands the customers expectations very well. It is the best service provider in terms of understanding the custome rs expectations. Indian Airlines has the highest gap and hence it does not understand the custome rs expectations as compared to other service providers. Jet airways are the next best to Spice Jet in terms of knowledge gap. Service Quality Dimensions To measure the Service Quality dimensions we have kept several parameters in the Questionnaire in which the respondents have to tick on likert scale ranging fro m excellent to bad. Then by measuring the mean of all parameters we found out th e score of the Service Quality Dimension. For Tangibility the parameters are Seat comfort, Cleanliness of cabin, Cleanline ss of toilets, Newspapers/magazines, pillows/blankets, Quality of entertainment, Quality of beverages, handling of luggage, appearance and clothing of cabin cre w. For Responsiveness the parameters are punctuality of timing, politeness/courtesy , friendliness and language skills of cabin crew

 For Reliability parameters are Staff provides service without making fumbles, re sponds quickly to problems, response happens at promised time. For Assurance parameters are Cabin crews safety drill, courtesy of staff, efficie ncy of check-in staff, and service efficiency of cabin crew. For Empathy parameters are individual attention to customers, flight timings con venient to customers, long term relationship with customers.

Service Quality Dimensions 1) Tangibility

Analyzing the tangibility factor of each of the airlines it is very clear from t he above graph that tangibility of kingfisher airlines compared to rest of the a irlines is definitely high. Kingfisher airlines is having such a significant increase in response towards ta ngibility compared with the other flights is due to many factors that are playin g important role for such a shift in the above graph. Comparing Tangibles such as seat comfort, Cleanliness of cabin, Cleanliness of t oilets and many other factors such as availability of newspapers and magazines, Pillows and blankets etc. plays an most important role in shifting peoples respo nse more towards kingfisher compared with other airlines. Though Indian airlines is public sector undertaking airlines but then also as fa r as the question of tangibility is concern it was rated as second most preferab le after kingfisher. Only the difference in response of kingfisher and Indian ai rlines was that there was comparatively less seat comfort in Indian airlines com pared to kingfisher airlines. Now talking about jet and spice jet they both were rated at lowest level by the respondents and comparing these two airlines there was almost equal grading to b oth of the airlines as far as tangibility is concern. So from above graph it is clear that kingfisher has got more preference and posi tive response of people on tangibility criteria.

2)

Responsiveness

 Now comparing Responsiveness of the above airlines, it was remarkable that kingf isher has majority of people rating it highest also in the factor of responsiven ess followed by Indian airlines. As kingfisher is five star rated airlines it is obvious thing that staff of king fisher will be more responsive towards the facilities to be provided on time and also problems to be solve at time. But position of Indian airlines in minds of people holds second place in responsiveness criteria is remarkable.

Factors included in Responsiveness, such as friendliness, language skills, waiti ng time to check in and courtesy of check in staff played very important role fo r shifting the above graph in favor of kingfisher. Now talking about jet and spice jet they both were rated at lowest level by the respondents and comparing these two airlines there was almost equal grading to b oth of the airlines as far as responsiveness is concern.

3)

Assurance

Analyzing the assurance factor, of each of the airlines it is very clear from th e above graph that assurance of kingfisher airlines compared to rest of the airl ines is definitely high. Kingfisher airlines is having such a significant increase in response towards as surance compared with the other flights is due to many factors that are playing important role for such a shift in the above graph. Comparing assurance factors such as seat politeness/courteous, service efficienc y, efficiency of check in staff and safety of cabin crew drill plays an most imp ortant role in shifting peoples response more towards kingfisher compared with o ther airlines.

In case of assurance Indian airlines was rated as second most preferable after k ingfisher. Only the difference in response of kingfisher and Indian airlines was that there was comparatively less service efficiency and efficiency of check in staff in Indian airlines compared to kingfisher airlines. Now talking about jet and spice jet they both were rated at lowest level by the

respondents and comparing these two airlines there was almost equal grading to b oth of the airlines as far as assurance is concern. So from above graph it is clear that kingfisher has got more preference and posi tive response of people on assurance criteria.

4)

Reliability

While comparing reliability of all the above mentioned airlines the result was s ame as it was in the case of tangibility, assurance and responsiveness. It was k ingfisher which was as most reliable airlines by most of the people from the sam ple. Reliability of kingfisher compared with other three airlines is very high and co mparing the other three airlines that is Spice jet, Jet airways and Indian Airli nes its almost same in all the three airlines.

Reliability factors such as Service without fumbles, Quick response towards prob lem and Response towards problem in promised time plays very important role in g auging reliability factor of any of the airlines and kingfisher is able to provi de the above mention services to the expectation of people this the reason of hi ghest Reliability level of kingfisher by the respondents. From the above graph it can be clearly interpreted that kingfisher compared with other three airlines is more reliable.

5)

Empathy

Empathy also seems to be in the favor of kingfisher, from the above graph it can be clearly interpreted that Empathy of kingfisher airlines compared to other ai rlines is defiantly very high followed by spice jet. Empathy factors such as Individual attention, Convenience of flight timings and Long term relations affects response of the people up to an extent. Kingfisher i s having highest level of empathy level in the minds of the people. This time instead of Indian Airlines, Spice jet is following Kingfisher in this criteria so it can be interpreted that Empathy of spice jet is more then tangibi lity, reliability, assurance and responsiveness of itself. An Indian airline is having lowest Empathy after Jet airway which is having seco nd lowest Empathy level

Service providers 1) Spice Jet The scores of the service quality dimensions of spice jet are given in the chart below. Here we have kept 1 as excellent and 5 as poor , Service quality dimensi on which shows lower rating in graph means its better than one showing higher ra ting in graph.

GRAPH FOR SERVQUAL DIMENSIONS FOR INDIAN AIRLINES The scores in the above chart conclude the following.

Empathy has the lowest score in all the service quality dimensions so its better than rest of service quality dimensions. This shows that employees i.e. people are contributing more in the service quality. Tangibility and responsiveness are having the high scores and hence the physical evidence is not good. Moreover they are not much reliable in services and lack assurance as well. This shows that the service provider is not able to provide reliable services or not able to inspire trust and confidence for the service.

2)

JET AIRWAYS

The scores of the service quality dimensions for Jet Airways are given below in the form of a chart. Here we have kept 1 as excellent and 5 as poor , Service qu ality dimension which shows lower rating in graph means its better than one show ing higher rating in graph. The chart can easily give idea about the conclusions .

GRAPH FOR SERVQUAL DIMENSIONS FOR JET AIRWAYS The scores in the above chart conclude the following:

The service quality dimension of Tangibility has the highest contribution in the overall service quality. Reliability and Empathy dimensions are close to each other in terms of the scor e. Hence these 2 service quality dimensions are contributing equally in the overall service quality in case of Jet Airways. This shows that physical evidence and other tangibles and intangibles are all c ontributing in an equal manner to achieve the overall service quality. Responsiveness of the people is not up to the mark which staff must be given mor e training to serve to customers efficiently. 3) Indian Airlines

The scores of the service quality dimensions for Indian Airlines are given below in the form of a chart. Here we have kept 1 as excellent and 5 as poor , Servic e quality dimension which shows lower rating in graph means its better than one showing higher rating in graph. The chart can easily give idea about the conclus ions.

GRAPH FOR SERVQUAL DIMENSIONS FOR KINGFISHER AIRLINES The scores in the above chart conclude the following:

Empathy as a service quality dimension is the Poor. Hence it means that the staf f does not provide individual attention to customers. Also the dimensions assurance and reliability are good are almost equal and the y contribute equally to the overall service quality. As the tangibility is poor so the physical evidence of the service provider is n ot upto mark. 4) Kingfisher Airlines The scores of the service quality dimensions for Kingfisher Airlines are given b elow in the form of a chart. . Here we have kept 1 as excellent and 5 as poor , Service quality dimension which shows lower rating in graph means its better tha n one showing higher rating in graph. The chart can easily give idea about the c onclusions.

GRAPH FOR SERVQUAL DIMENSIONS FOR SPICEJET The scores in the chart above conclude the following:

 Responsibility scores the poor in all the other dimensions of service quality. The tangibility is excellent which means the physical evidence of the service pr ovider is also good. Quality of entertainment provided by kingfisher is the best . Empathy score is also not too good as compared to other service quality dimensio ns. Assurance and Reliability are good which means staff assures customers about their safety and service provider is very reliable Punctuality of Flights Now talking about punctuality of flight timings it can be clearly interpreted fr om graph that Kingfisher is highest number of rating from the respondents toward s excellent side, it is Indian airlines and the Spice jet who are having minimum number of responses in their favor. Considering the fair side of performance is concern it is Jet airways which tops the chart from its responses being maximum on fair side.

Considering poor and bad performance then it is very clear from the graph that p unctuality of Indian Airlines and Spice Jet is not up to the mark as expected of the travelers so they both have strong point to be think up on regarding its pu nctuality Seat comfort As far as seat comfort is concern it can be clearly interpreted from graph that Kingfisher is highest number of rating from the respondents towards excellent si de, it is Indian airlines and the Spice jet who are having minimum number of res ponses in their favor. Considering the fair side of performance is concern it is Jet airways which tops the chart from its responses being maximum on fair side.

Considering poor and bad performance then it is very clear from the graph that s eat comfort of Indian Airlines is not up to the mark as expected of the traveler s so Indian Airlines have strong point to be think up on regarding its seat comf ort. Quality of beverages Quality of beverages plays most important role in deciding satisfaction level of travelers and beverages is only important factor that indicates strong tangibil ity of any of air line service provider. It can be clearly interpreted from the above graph that kingfisher is having hig hest responses as excellent followed by Spice Jet. Indian Airline and Jet Airways is having most of the responses as poor and bad s o there is strong point to be think upon for these both airlines. Quality of Entertainment As far as quality of entertainment is concern it can be clearly interpreted from graph that Kingfisher is highest number of rating from the respondents towards excellent side, it is Indian airlines and the Spice jet who are having minimum n umber of responses in their favor.

Considering the fair side of performance is concern it is Jet airways which tops the chart from its responses being maximum on fair side.

Considering poor and bad performance then it is very clear from the graph that q uality of entertainment of Indian Airlines and Spice Jet is not up to the mark a s expected of the travelers so Indian Airlines have strong point to be think up on regarding its quality of entertainment. Cross Tabulations: By which airlines do you travel the most Vs If price reduced then ready to switc hover Cross tabulation By which airlines do you travel the most * If price reduced then ready to switch over Cross tabulation Count If price reduced then ready to switchover Total Yes Probably Yes Maybe Probably No No By which airlines do you travel the most Spice jet 20 15 8 5 2 50 Jet airways 15 21 8 2 4 50 Indian Airlines 18 14 11 5 2 50 Total 53 50 27 12 8 150 From the above graph it can be clearly interpreted that people are having strong preference towards kingfisher but not able to travel in kingfisher due to its h igh ticket prices compared to other airlines in domestic as well as in internati onal. In the above graph it is shown that around 80% of Spice Jet user are ready to sw itch themselves to Kingfisher, If Kingfisher reduces its prices in comparison wi th rest of the players in the industry.

Now considering Jet Airways it also has most of the responses towards yes and prob bly yes options so it can be interpreted that Jet also has its target audience lo yal to kingfisher but attracted to price factor of Jet Airways. Now Indian Airlines has around 76% of people who are ready to shift themselves t o Kingfisher if Kingfisher reduces its price up to an extent so its is remarkabl e thing that even public sector Airlines is not able to give stiff fight to King fisher as far as preferences of people are concern. The respondents who are not ready to shift from there Airline service providers are minimum and can be counted on figures. So it is clear that Kingfisher has st rong preference and loyalty of people.

How often do you fly Vs Service provider maintains long term relationship Cross tabulation Count Service provider maintains long term relationship Total Strongly Agree Agree Neutral Dis Agree Strongly Disagre e How often do you fly Once in a year 2 10 11 8 9 40 Once in 6 months 0 9 4 7 5 25

Total

Once in a month 4 Frequently 39 45 79 21

16 44 23

0 6 32

1 7 200

9 9

30 105

When asked respondents about maintenance of relationships from the side of Airli ne service provider it was expected and obvious that most of the respondents who were the frequent traveler of particular Airline service provider responded pos itively. Respondents who travel once in a month also had positive view point towards main tenance of relationship by the service providers as they can be also counted und er the head of frequent traveler. Respondents who were not the frequent flyers that is they travel once in six mon ths or once in a year they responded negatively towards the question asked to th em, from them around 85% of people responded as disagree and strongly disagree. So it can be clearly interpreted that frequent flayers enjoys more privilege on side of service provider compared no flayer who is not a frequent flayer.

HYPOTHESIS H0: There is no association between Age and people ready to shift to Kingfisher airlines if Kingfisher reduces its rates. H1: There is association between Age and people ready shift to Kingfisher airlin es if Kingfisher reduces its rates. If price reduced then ready to switchover * age group Cross tabulation Count Age group Total 0-18 18-30 31-45 45-60 60 and above If price reduced then ready to switchover Yes 12 27 10 0 5 54 Probably Yes 0 15 25 5 0 45 Maybe 6 0 10 5 0 21 Probably No 0 0 0 15 0 15 No 0 0 0 5 10 15 Total 18 42 45 30 15 150

Chi-Square Tests Value df Asymp. Sig. (2-sided) Pearson Chi-Square 184.281a 16 Likelihood Ratio 178.571 16 .000 Linear-by-Linear Association 59.309 1 N of Valid Cases 150

.000 .000

From above output of SPSS window we can see that Significance value of pearson c

hi-Square is 0.000 which is less than 0.05 ,this means that H0 is rejected and H 1 is accepted because pearsons Chi-square significance value is less than 0.05. It means shift to kingfisher is dependent on age group . From the above graph we can see that people from age group between 0-18 and 18-3 0 have replied yes or probably yes when asked that are they ready to shift to ki ngfisher airlines if it reduces its rates.They said they are ready to shift to k ingfisher airlines. People between age group 31-45 said probably yes or may which means they may or may not shift to kingfisher airlines. People between age group 45-60 and 60 & above said NO which means they are not r eady to shift to kingfisher , they are loyal to their respectiver airlines.

HYPOTHESIS H0: There is no association between Gender and people ready shift to Kingfisher airlines if Kingfisher reduces its rates. H1: There is association between Gender and people ready shift to Kingfisher ai rlines if Kingfisher reduces its rates. If price reduced then ready to Count Gender Total Male Female If price reduced then ready to Probably Yes 34 Maybe 12 9 Probably No 0 No 6 9 Total 100 50 150 switchover * Gender Cross tabulation

switchover 11 45 21 15 15 15

Yes

48

54

Chi-Square Tests Value df Asymp. Sig. (2-sided) Pearson Chi-Square 49.257a 4 .000 Likelihood Ratio 54.354 4 .000 Linear-by-Linear Association 36.627 1 N of Valid Cases 150

.000

From above output of SPSS window we can see that Significance value of pearson c hi-Square is 0.000 which is less than 0.05 ,this means that H0 is rejected and H 1 is accepted because pearsons Chi-square significance value is less than 0.05. It means shift to kingfisher is dependant on Gender.

From the above graph we can see that most males have replied yes or probably yes when asked that are they ready to shift to kingfisher airlines if it reduces it s rates.They said they are ready to shift to kingfisher airlines. There were only few male swho said NO, which means only few are not ready to shi ft.

 Females have given uniform answers, the graph for females is almost equal for al l categories, which means females may shift or may not shift.

HYPOTHESIS H0: There is no association between Income and people ready to shift to Kingfish er airlines if Kingfisher reduces its rates. H1: There is association between Income and people ready to shifting to Kingfish er airlines if Kingfisher reduces its rates. If price reduced then ready to Count Income Total 0-2 Lakhs ve If price reduced then ready to 0 54 Probably Yes 31 Maybe 1 11 Probably No 0 No 0 1 Total 50 64 15 switchover * Income Cross tabulation 2-5 Lakhs switchover 14 6 2 4 21 0 3 5 10 150 5-10 Lakhs Yes 0 21 8 15 18 45 15 10 Lakhs and Abo 36 0

Chi-Square Tests Value df Asymp. Sig. (2-sided) Pearson Chi-Square 138.586a 12 Likelihood Ratio 145.771 12 .000 Linear-by-Linear Association 77.199 1 N of Valid Cases 150

.000 .000

From above output of SPSS window we can see that Significance value of pearson c hi-Square is 0.000 which is less than 0.05 ,this means that H0 is rejected and H 1 is accepted because pearsons Chi-square significance value is less than 0.05. It means shift to kingfisher is dependant on Income.

From the above graph we can see that people with income level between 0-2lakhs a nd 2-5lalkhs have replied yes or probably yes when asked that are they ready to shift to kingfisher airlines if it reduces its rates.They said they are ready to shift to kingfisher airlines.This maybe because they have low salary so they ar e price concious. People with Income level between 5-10lakhs and 10lakhs & above said NO which mea ns they are not ready to shift to kingfisher , they are loyal to their respectiv er airlines.The salary of these people is high so they are not price concious ,t hey need luxury and comfort.Price doesnot matter much to the affluent class.

CHAPTER 7

CONCLUSIONS The conclusions of the project are listed below on the basis of the graphs and c harts explained earlier. Following are the conclusions of the research: The service quality of Kingfisher Airlines is the best, followed by Indian Airli nes and Spicejet. Kingfisher Airlines has a higher rank on empathy and tangibility. Hence the poli teness and friendliness of the employees which form the people of the service or ganization is high in case of Kingfisher Airlines. Also its physical evidence is higher as it scores high on tangibility. Jet Airways has the lowest service quality in all the service providers. Though Jet Airways has a poor score in empathy and tangibility it scores well in assura nce and responsiveness. Indian Airlines is the second best in terms of the service quality.

Spice jet is in the middle of all the service providers. It neither has high qua lity nor a low quality in services. It is rated average. If Kingfisher reduces its price than people between age group 0-45 and income le vel 0-5 lakhs are ready to shift from their preferred airlines o Kingfisher Airl ines. The knowledge gap which shows how better the service provider knows the customer s expectations is the best in Kingfisher. Hence Kingfisher is able to understand customers expectations very well as compared to other service providers.

CHAPTER 8 SUGGESTIONS From the project under taken it can be recommended to Kingfisher to reduce its p rice up to an extent to attract passengers of other airlines in domestic destina tions. In many of the responses it is marked by researchers that kingfisher, though lea ding in all parameters of service quality but then also respondents are some wha t not comparatively satisfied in Empathy factors so kingfisher has to work on th is factor to convert responses into positive one. Spice jet should increase its punctuality of flight timings as around 75% of res ponse was negative towards its punctuality and responses showed very negative at titude of respondents. Indian Airlines should work on its seat comforts as most of the travelers who ar e also frequent flyers of Indian Airlines were having complain about seat comfor t and it is also its drawback for not attracting travelers. Jet airways service efficiency is low compared to other airlines and also its pu nctuality of flight timings is poor comparatively so they have question to be th ink up on to attract customers. As far as Jet airways is concern they are falling in least satisfied criteria in almost all of the parameters of service quality, so there is ample of work requ ired to be done by Jet airways to shift responses from not satisfied to satisfie d. BIBLIOGRAPHY Books N.K. Malhotra(2007). Marketing research-5th edition An applied orientation.delhi Dorling Kindersley (India) pvt. Ltd, licenses of pearson education in south asi a . Cooper & sehindler (2007). Business research methods 9th- edition , new delhi: T ata McGraw-hill publishing company ltd. Levin & Rubin (2008). Statistics for management- 7th edition New Delhi, Prentice Hall of India Pvt. ltd Services Marketing: The India Context - Page 1 by R. Srinivasan 2004

Journal of services marketing - Page 183 by Michael La Roche Tsaur, SH, Chang, T Y and Yen, CH (2002), "The evaluation of airline service quality by fuzzy MCDM", Tourism Management, Vol. 23 No. 2, pp. 107-15

 Foster, S. Thomas, Managing Quality: An Integrative Approach. Prentice Hall, 20 01: pg. 132-134, 231-234. SERVQUAL, an instrument for measuring quality service developed by Zeithaml, Par asuraman & Berry and described in their book, Delivering Quality Service; Balanc ing Customer Perceptions and Expectations, Free Press, 1990.

Websites Aviation Industry of India,(2008) global market for Airlines:star ratings: New D elhi,2008. www.airlinequality.com/StarRanking/ranking.htm Indian Airlines.(2009) History:Services: New Delhi,2009. www.indianairlines.com Spicejet Airlines.(2009) History: Quality, New Delhi,2009. www.spicejet.com Jet airway,(2009) History:Services: New Delhi,2009. www.jetairways.com Skytrax ratings,(2007) 5-Star rating of Airlines www.skytrax.com Service Quality Dimesnsions.(2009) SERVQUAL of Airlines ,Mumbai,2009. www.service-quality.com Kingfisher Airlines.(2009) Cabin Classes:Quality:Banglore,2009. www.kingfisherairlines.com

ANNEXURE QUESTIONNAIRE Dear sir/madam We are the students of NRIBM Ahmedabad, presently working on a project on SERVQU AL Analysis of Aviation Industry. We request you to kindly fill the questionnair e. We assure you that your data will be confidential.

1.

How often do you fly? Once in a year Once in 6 months Once in a month Frequently

2. By which airlines do you travel the most? _____________________________________________

3. 4.

In which class do you normally fly? Economy class Business class What type of flight do you normally take? One hour flights/short haul Medium haul Long haul

5. How much do you think the service provider understands your expectatio ns? Rate on a scale of 1-5 (1: Meets expectation and 5 does not meet expectations) _______

6. Rate your onboard experience for the service provider on following parame ters Excellent Good Punctuality of flight Timings Seat comfort Cleanliness of cabin Cleanliness of toilets Newspapers /Magazines Pillows, blankets Quality of entertainment Quality of beverages Fair Poor Bad

7. Rate the cabin crew of the service provider on following parameters Excellent Politeness/Courteous Friendliness Language skills Appearance Clothing Service efficiency Good Fair Poor Bad

8. Rate the airport services for the service provider on following parameters Excellent Good Waiting time at check in Courtesy of check in staff Efficiency of check in staff Handling of luggage Fair Poor Bad

9. The staff provides the service without making fumbles or without any defects. 1. Strongly agree ngly disagree 2. Agree 3. Sometimes 4. Disagree 5.Stro

10. When there is a problem the service provider (employees/staff) responds quic kly to solve it. 1. Strongly agree 5. Strongly disagree 2. Agree 3. Sometimes 4. Disagree

11. If a response is promised in certain time, it does happen by the promis ed time. 1. Strongly agree trongly disagree 2. Agree 3. Sometimes 4. Disagree 5.S

12. You feel safe about your travel by performance of cabin crew safety dri ll. 1. Strongly agree rongly disagree 2. Agree 3. Sometimes 4. Disagree 5.St

13. You get individual attention by the cabin crew. 1. Strongly agree rongly disagree 2. Agree 3. Sometimes 4. Disagree 5.St

14. The airline has flight timings convenient to you. 1. Strongly agree rongly disagree 2. Agree 3. Sometimes 4. Disagree 5.St

15. Service provider maintains long term relations with the customers. 1. Strongly agree rongly disagree 2. Agree 3. Sometimes 4. Disagree 5.St

16. If Kingfisher reduces its rates as compared to rest of the players then are you ready to switchover from your preferred airlines to Kingfisher airlines . (Not applicable for Kingfisher airlines customers) 1. Yes No 2. Probably Yes 3. May be 4. Probably No 5.

Name: ______________________________________________________ Age group: 0-18yrs 60 & above 18-30yrs 31-45yrs 45-60yrs

Gender:

Male

Female Govt. Service Student

Occupation: Business Private Service Others________ Annual Income (in Rs.): <2 lakh 2-5 lakhs above

5-10 lakhs

10 lakhs &