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The Airlines Sector

The Airlines Sector

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THE AIRLINES SECTOR

The aviation industry in India has grown by leaps and bounds in recent years in terms of kilometers flown as well as customers serviced. The economy of a country is substantially determined by the quality of air transport. The airlines today have made themselves more popular among its customers by various marketing tactics like: • • • • • • Reduced costs of air tickets for frequent flyers. E-ticketing i.e. virtually eliminating the need for agents. Rynair and Easy jet two of UK’s low cost carriers have eliminated travel agents completely and sell all their tickets online., Selling tickets through online auctions, Various freebies and accommodation offers provided at lower rates. Improved and interactive staff. Increase in aircraft capacity

These are a few of the many reasons for the increasing popularity of the airlines. In terms of quantity the airlines industry turnover in the year 99 was approximately 44 billion, 14 million passengers traveled using its services. Till recently, Indian Airlines had a monopoly in the sector. However, in 1993 the skies were opened for private participation and 8 airlines got the nod to commence operations. Of these, only two have survived - Jet Airways and Sahara Airlines. The market share of Indian Airlines vis-à-vis private players is given below. Airlines Indian Airlines Private Airlines* Market Share 47% 53% Aircrafts Owned 55 35

THE SERVICE MARKETING TRIANGLE
One can better understand the workings of airlines by looking at its marketing triangle.

COMPANY

ENABLING PROMISES MAKING PROMISES

PROVIDER KEEPING PROMISES
There are three entities in the entire transaction:

CUSTOMER

• •

Customer: He is the person who wishes to satisfy his need i.e. of transportation from one destination to another. Company: This is both the dreamer and the offerer. It is the various airlines, which offer its aviation services to satisfy the customers demand for transportation from one destination to another. For e.g.: The Indian airlines Provider: these are finally the people who interact with the customers. They are the ones who carry out the final transaction. The customers actually come in contact with the service provider and not the company. For e.g.: The Airhostess and the crew.

The interaction between these three parties while providing the service takes place in the following manner: • The company is established with the basic objective of providing the specific transport service. Thus the airline industry with players like Indian airlines, jet airways, Sahara airways etc came into being.

The air service provider that is the company communicates with the customer and makes him aware of the services. It makes promises to the customer through advertising through various medias.

For e.g.: the TV ad of Indian airlines advertising its new sleep in seats. • The customer who gathers knowledge about the service approaches the company for availing his service in order to satisfy his need. This interface of the customer with the company is through the customer’s interaction with the providers of the company. The company enables its promises to the customers through setting up facilities to deliver the promises that is by setting up ticket and enquiry counters. The outcome of the “to be transaction” is determined by the interaction between the provider and the customer. Hence the company aims at offering its providers with the required infrastructure and training to optimize the quality of the transaction. For eg: Yearly employee training programs and performance appraisals done by Sahara airlines. The three strategic points where the provider and the customer interact are :

• • • •

Ticket purchase at the airline counter or the ticket agency. Checking in. During boarding. During disembarkation.

MARKETING MIX VARIABLES
THE PROMOTION MIX:
The formulation of an ideal promotion mix is essential to inform, sense and persuade the users. The business magnets, business executives, politicians, cine artists, high spending tourists, business houses using expensive inputs and trading the same, the Department of Posts, domestic and international tourists are some of the users of the air services. The users appear to be more conscious, aware of their rights and in a majority of the cases are found sophisticated. However, majority of the users are sophisticated and therefore the promotional efforts are required to be more creative. The professionals engaged in the air services bear the responsibility of blending the different components of promotion in such a way that the task of increasing the business is simplified. Since a number of airways and airlines have been facing problem of financial crunch, it is pertinent that they make possible an optimal use of the different components of promotion. The various components of promotion used in the airlines industry are:

Advertising:

As any other service, the air transportation service needs creative advertisements to promote their business. This is the first component of the promotion mix, which is based on professional excellence of the advertising agencies. In view of the rising cost of inputs and increasing the impact of world wide economic depression on the air transportation, there is a need to make the advertisement budget optimistic visa- vis optimal. This is essential to regulate the multi-dimensional expenses found of unproductive nature and instrumental in making the service expensive. The telecast media and the print media are found important while promoting the air business. While advertising through the telecast media, budgetary constraints and budgetary provisions should be considered. Also the quality and nature of target market and level of expectations should be kept in mind. The advertising professional need to make the advertisement slogans, campaigns, message proactive to the generation of business. The airlines have also to make it sure that whatever the strategic decisions they make to promote the business are in a position to establish an edge over the promotional measures of the competitors. They are also required to assign due weightage to the efforts made for the projection of a positive image. The Indian Airlines as well as Air India have been facing the image problem but the advertisement may be efficacious in transmitting the facts and removing the image problem. It is essential that while advertising one has to keep ion mind the image of the country, the natural scenes, the tourist attractions, rich cultural heritage or so which would energise the process of motivating the tourists. It is said that both the domestic as well as international flights have been facing the problem of poor occupancy ratio and therefore nothing concrete or positive can be said about the products and service offerings or multi-dimensional attractions/ benefits given by them. While advertising, it is impact generating that we select an opportune moment of flight, an attractive scene of take-off, high attractiveness of personnel in general and the air hostess in particular, the landscape of an attractive tourist center, wild life sanctuaries, lake, park and so on. The air transportation services can also use the broadcast media.

Publicity:

Publicity is a process of persuasive communication for which no payment is made. Strengthening public relations activities if found essential to promote the business airlines or airways. The Public Relations Officer, Receptionists, Travel Agents, Travel Guides, Media people are some of the sensitive points of publicizing the business. The most important point in this is the co-operation of media. The marketing professionals should have an idea of magazines, newspapers preferred by the prospects or users and they develop rapport with the correspondents concerned. The Airlines need to recruit efficient personnel for that very purpose that should have professional excellence no doubt but in addition they are also required to have the potentials of attracting the users, prospects. For e.g.: Indian Airlines helped the cancer patients and took them for a for a small outing as a part of their public relation campaign. Similarly, Sahara linked up with Close- up by taking Hrithik Roshan. Here for Close-up it is a promotional strategy while for Sahara a publicity, that a airline is linking up with FMCG by using an entity.

Sales Promotion:

A component of promotion adopted for a particular period to touch the target and withdraw the measures when the time is over is known as sales promotion. The tool based on incentives is found instrumental in sensitizing the users. The travel agents contribute a lot to the promotion of air transport business and therefore we need to

think in their favour on a priority basis. The tour operators also contribute to the process and therefore need to think in their favour. The front- line-staff in the offices of the airways and the receptionists working there also play the same role. This makes it significant that they are give n some incentives which are in the form of a holiday trip to a particular place, concessional services to their children or spouse or so. Also offering them with innovative gifts, which have not been offered by their competitors, can be given. The nature and type of incentives would depend on the contributions of providers. If they make immense contributions, the incentives would be in good quality and volume. There are incentives given called the promotional incentives on the basis of the frequency of using the services. For e.g: Through Jet Airways, return ticket passengers on metro flights (both economy and business) can avail a discount at all Taj and ITC hotels in South India. Also Sahara has a crazy assortment of gifts being handed out (its’ Take Offer’). Braun Mixer grinders, CTVs, cameras, handycams, mobile phones and even free holiday packages are up for grabs as a part of their sales promotion campaign.

Personal Selling:

The air transport organizations find personal selling which is the submix of promotion mix instrumental increasing the business. An art to influence, stimulate, sensitize the impulse buying is known as personal selling. The air transportmarketing professionals are supposed to know about the behavioral profile of persons who act as personal promoters. The travel agents, tour operators, transport operators, travel guides, front-line staff on the booking counters, receptionists contribute substantially to the process of promotion. If they stop selling, the offices of airways would find it difficult to sell. This makes it clear that even the quality services fail in attracting the users, if the channels are not co-operate. This makes it essential that we offer incentives to them so that they keep on moving the process of stimulation. In promoting business, the airlines industry must select persons, agencies having a positive image. The travel agencies having a well established business can help substantially and therefore it is the prime responsibility that while selecting the travel agents one must assign due weightage to the image of the agencies. The tour and transport operators help considerably and one needs to think about the incentives to be offered to the promoters. In personal selling, the front-line staff or personnel at the booking or reservation counter of airlines office playing an incremental role in promoting the business. Here, it is essential that one is aware of the credentials of persons supposed to discharge the business responsibility and try his best to brush up their faculties as and when opportunities come. As it is based on the behavioral profile, in case of misbehavior of indecent behavior by the frontline staff, the task of getting the business is found much more complicated. Thus a person working at the counters where face-to-face communication with the users is done, the communication ability is high and high behavioral profile is essential too. Thus due weightage is given to the training programme for the front- line staff.

Word-of-mouth Promotion:

This happens to be an important constituent of promotion mix in which the promoters act as a hidden sales force. The air transport organization depends on this type of promotion if they feel that the quality of services offered by them is of world class. In the Indian perspective, the Indian Airlines, Air India, Sahara India, Jet Airways and others may use this component of promotion if they realize that providers have not been distorting the quality of services promised.

Telemarketing:

Telemarketing is playing an important role in promoting the business. The telemarketers can serve multi-dimensional purposes. They can play an outstanding role of informing, sensing and persuading the users even without making a big investment. A telephonic instrument and a well-trained telemarketer are found essential. The queries and questions of the users/prospects can satisfactorily be answered and misunderstanding, confusion and communication gap can be removed if telemarketers are professionally sound. The booking counters, the enquiries, the reception counters, the users’ complaints and grievances cell, the announcers are found playing an incremental role in promoting the air business. For this the telemarketer must have high communicative ability, attractive personality and microphonic sound.

THE PRICE MIX:
Pricing decisions play a decisive role in managing the business of air transportation. The increasing operational costs, the mounting competition, the falling occupancy ratio, the imbalances in demand and supply, the increasing pressure of inflation are some of the important factors influencing the strategic decisions for setting fare and freight rates in the air transport business. The Ministry of Tourism and Civil Aviation, the Indian Airlines Corporation, the National Airports Authority, the International Airports Authority of India, the Air India Corporation are the bodies directly or indirectly influencing the process of making the pricing decisions. The main problem is to make the pricing decisions competitive because it is found that even the private air transport organizations are involved in the process too. It is seen that the following are the features in price i.e.: 1.Flexibility; 2. Price Level; 3. Differentiation; 4. Discounts and Allowances. While price is tactical, it has localized implementation, it is temporary in nature and therefore price is flexible. The below is an article from the Business Standard issue of 1st October-02 which shows how fares have lessened and what are the additional benefits which are being provided to the customers.

IA takes fare war to Jet’s turf…extends sops to peak season
Domestic carriers have been successful in increasing their load factors, following an increase in takers for airline schemes that offer passengers huge discounts (nearly 50 percent in certain sectors). Though the bottom lines of airlines have improved, this phase will last only till the end of the lean season. (October) in most cases. There had been a decline in passenger load post-11 September, but these schemes have been able to retain loads. With all major domestic airlines – Indian Airlines (IA), Jet Airways and Sahara- announcing various schemes to lure passengers, it would not just lead to displacement of passengers from each other’s airlines but also encourage those traveling by rail or road top travel by air. More good news for air travelers. Indian Airlines (IA) has announced a revised apex fare scheme with effect from November 1 to March31 2003 thereby extending the early bird scheme to the peak season. Under the new scheme covering 53 destinations, the advance booking period has been reduced from 21 days to 15 days. Cancellation and refund rules have also been relaxed and the passengers can now change their reservation plans or get refund at least 15 days prior to the date of travel after paying a minimal charge of Rs.100 per ticket.

The new fares, to be effective from November 1 of this year see a Rs.520 or 13.25 percent drop on the Delhi-Mumbai sector. The new IA fare of Rs. 3,400 is 6 percent lower than a Delhi – Mumbai Jet Airways ticket cost Rs.3,620. The gap between an AC first class Rajdhani ticket and an IA economy ticket on the Delhi-Mumbai route had widened with the rail fare 19 percent costlier at Rs.4,180. the AC-II tier Rajdhani ticket at Rs.2,045 is, however nearly 30 percent cheaper. Till now, the airline has been offering around 12-13 per cent of the total economy class seats under the apex fares scheme, the officials of IA added. Around 2,500 seats a day was being offered under the scheme out of 2000 economy class seats in 50 destinations where the scheme is valid. “We have managed to convert the first class train traffic and create a new segment altogether. While the seat factors increase to 65-70 per cent during the peak season, the additional traffic would only contribute towards a higher seat factor without much effort,” IA officials said. The airline has been flexible on the availability of seats under this category and based on its analysis of the demand-supply, traffic profile of the route and cost benefit analysis, it has been varying the number of seats offered under the scheme. During the lean season (August-October), it has often offered close to 3,000 seats of the available 20,000 seats a day in the economy class. All categories and routes taken together, IA has a capacity of around 34,000 seats a day. The airline’s revenue from business traffic is around 80 per cent, while that from leisure traffic accounts for 20 per cent. Jet Airways has also decided to cut the number of seats offered under the Apex scheme. The airlines have slashed the number of seats offered per flight under the scheme from 15 per cent to 10 per cent. Senior Jet officials said the airline would offer 40 per cent lesser seats daily across its network, than what was offered during the August-September period. The airline was offering approximately 3,000-4,000 seats on its Apex scheme during the last two months. The other seven sectors on which IA announced a fare cut include MumbaiBangalore(now Rs.2,700 from Rs.2,480), Kolkata – Guwahati (Rs.2000 from 2205), Mumbai – Kochi (Rs.3200 from Rs.3250), Delhi –Bangalore(Rs.4,500 from Rs.5,055).Delhi-Kochi(now Rs.6530) and Delhi- Trivandrum (now Rs.6.555). On an Airbus A-300s IA offers 25 seats out of 212 economy class seats available, while on Airbus A-320s and Boeing 737s it offers 15 seats out of 126 and 119 seats available. IA officials said that on a daily basis the number of seats per flight would decrease or increase by five. Air Sahara, the third airlines in the sector, which has extended Sixer and Super Sixer schemes to the peak season is observing the situation created by the Apex fare extension. Below is table which show the comparison of IA , Jet and Rajdhani train fare:

Sector
Delhi-Mumbai Delhi-Bangalore

IA
3,400 4,500

Jet
3,620 5,053

AC–I*
4,180 6,385

AC-II *
2,404 3,470

Mumbai –Bangalore *Rajdhani fares

2,700

2,839

2,943

1,954
All figurein Rs

THE PLACE MIX
This dimension of marketing mix focuses on processing of services and selecting the location points for airways and airlines offices keeping in view the comforts and conveniences of the end users. By the processing of services, our emphasis is on the involvement of channels, front-line-staff, travel agency offices; offices of the tour operators or so from where service flow and reach the ultimate users. 1. The air transport needs to make sure that the prospects don’t face any difficulty in buying the tickets and make necessary arrangements for the confirmation of booking. 2. It is also to be confirmed that the users booking their luggage are not to face inconvenience. 3. The behavioral profile of the personnel working in offices of travel agents and in the offices of the airways and airlines require due attention. It is almost clear that airhostess looking attractive, smart, well dressed are at your disposal to make available to you the defined services. 4. It is also to be sure that the information network of the offices of the travel agents is technology-driven and user-friendly. 5. The security checking, custom checking of passport, visa, income tax clearance or so. It is essential that all the windows or the counters offer the services as per the provision and promises. 6. Keeping in view the duration and nature of flights, the users are made available lunch/ dinner, breakfast and drinks inside the aircrafts. 7. If in course of the journey, you are supposed to change the aircrafts and the duration of stay is long, it is the responsibility of the airport authorities and concerned airway and airlines to make available.

Another dimension of place mix is related to location and management of the offices of the airways, travel agents, tour operates, transport operators or so. 1. The main thing in the selection of a place is easy accessibility. The place is required to be safe, well connected with all-weather proof roads where all the required infrastructural facilities are to be available. 2. The technology-driven booking system is to be ensured. 3. The water and sanitation facilities for the users and comfortable seating arrangements need due care of the travel agents or airways offices. The lighting, ventilation facilities need to be made available. 4. The interior decoration, furnishing, plantation need aesthetic sense so that the users from a positive opinion regarding the airways services. 5. The positioning of posters of airways and airlines which look attractive and draw the attention of the users attending the offices for chartered flights, packaged tour need due care. 6. It is in this context that we find management of place an important component of the marketing mix. In view of the above, it is right to mention that air transportation business is linked with a number of allied services offered by a number of agencies and organizations. If we don’t find cohesion and coordination the promised services would hardly reach to the end users.

THE PEOPLE MIX:  What Airlines Look For?
One of the most common questions before an interview, and even afterwards (especially for candidates who have been unsuccessful) is “Just exactly what are they looking for?” This section aims to address that question before moving on to the selection process (which is how airlines go about getting what they look for!). In truth, there is no definitive answer because airlines all have their own unique requirements, and choose their employees accordingly. However, here at least is an insight into how cabin crew recruitment is gauged and managed. In making a decision about the employment of cabin crew, all airlines consider three prime elements: Eligibility - Suitability - Specific Requirements. Put together, these three elements form a ‘person specification’, which interviewers use to determine if a candidate is right or not.

1) Eligibility
These are facts that can be determined either by physical or by documentary evidence. Eligibility checks are likely to include: Does the candidate have a passport? Does the passport allow the candidate to fly to all the countries the airline operates to? Has the candidate residential status or permit to work in the country he/she will be operating from? Is the candidate fit and healthy (has he/she passed the airline medical check)? Has the candidate passed the airline’s ‘in house’ isometric / numeracy / literacy / general knowledge tests? Has the candidate provided adequate references? Can the candidate swim? (this last one for ‘ditching’ drills - not the hotel pool!). An airline may have additional eligibility tests depending upon its own specific requirements. These may include: Does the candidate meet the required age profile? Does the candidate meet the required height/weight profile? Has the candidate attained required educational (or other) qualifications? Is there documentary evidence to support the qualifications the candidate claims to have? Has the candidate acquired adequate experience in a customer service or public contact role? Can the candidate speak a second language? To what level of proficiency can the second language be spoken? Not all airlines are the same, so in order to avoid disappointment candidates are recommended to investigate eligibility criteria carefully before applying for a job.

2) Suitability
This is clearly more difficult to assess than eligibility, because instead of facts it involves identifying the right personal qualities. These have been covered in the section ‘The Role of Cabin Crew’, and airline managers will be looking for people who can best fulfill that role. To summarise, the minimum requirement is for reliable, presentable individuals, who can provide a service in a friendly way, interact well with people, work as part of a team, and cope with difficult or emergency situations. Airlines will also be looking for people whose performance will not be adversely affected by the disadvantages of the job (see ‘disadvantages’ in previous section), and will readily accept direction/training.

3) Specific Requirements

Eligibility and Suitability are relatively basic requirements, which must be met in all cases. Airlines then proceed to customise their ‘person specifications’ according to their own needs and standards. If for example an airline identifies that an increase in the number of crew language speakers is required, then language ability may be given precedence. Some airlines see above average appearance/presentation as being crucial, whilst others prefer a higher degree of charisma and personality. A good customer service background, nursing experience, or educational qualifications may be more relevant to one airline than to another. A new airline starting up may choose previous cabin crew experience as a prime requisite. A prestigious and well established airline can often afford to be even more particular, and demand a combination of preferred attributes. Some airlines put emphasis on recruiting ‘in house’ (people who have been employed in ground jobs, whom they have already had a chance to observe), but most open the job up for external candidates as well. In deciding upon their ‘specific requirements’, airlines have to take into consideration many factors. These include their current crew profiles, state of the jobs market, the number and quality of available candidates, the appeal/benefits of their organisation, and of course the salary they are prepared to pay. They will also take into account the airline’s current place or ‘niche’ in the market. For airline managers it is a careful balancing act, where the rules of supply and demand apply much like any other industry. They do have the advantage however of offering a job which is regarded as desirable (and in some countries even prestigious). Once all the above considerations are taken into account, the person specification will be completed. The different emphasis helps to explain why some people are successful with one airline, and yet get rejected by another (their performance at interview is obviously another factor, and that is something we are about to go on to!). It is also true that candidates fail to be recruited by an airline at one attempt, then succeed at a later date. This is usually because the candidate has acquired better interview technique, or (more likely) extra skills, experience or confidence. It can also be because the airline itself has revised its person specification. So how to answer “Just exactly what are they looking for?” Put simply, airlines are looking for the right people for their current circumstances. Do not be too disheartened if you do not get in at the first attempt. You can always try again - or apply to another airline!

 The Selection Process
Includes: Application Form. Preliminary Selection (Administrative Formalities, Written Tests, Uniform Trial, Informal Talk, Presentation Exercise, Group Exercise). Final Selection - Conventional Interview. Common Interview Questions (Background Questions, General Motives and Perceptions, Perceptions About Customer Service, Perceptions About Teamwork And Working Relationships, Managing Adversity, Hypothetical Situations, Technical Questions). Medical Check. Training Course and Assessment.

Airline Services Training

In the airline industry, successful carriers are those, which respond quickly to growth and changes. Effective, cost-efficient training ensures that employees are

prepared to meet those challenges while providing quality customer service to an increasing number of travelers. Drawing from more than 60 years of knowledge and real-world experience at American Airlines, AMR Training Group offers the industries most in-depth and consistent airline training programs. Our expert staff develops custom curriculum designed to provide an air carrier's workforce with the highest standards of safety and service.

 Training for every facet of air transportation:
Flight Attendant Training
Initial, transition, and recurrent training for both domestic and international carriers.

Ground Passenger Service
Domestic and international ticketing, gate and operations International reservations Security and drug screening AMR Group /American Airlines Foundation Training provides management training and consulting which can significantly improve the direction and profitability of your business.

 Customer Service Plan:
1
Offer the lowest fare available Each airline will offer the lowest fare available for which the customer is eligible on the airline's telephone reservation system for the date, flight and class of service requested.

2

Notify customers of known delays, cancellations and diversions Each airline will notify customers at the airport and on board an affected aircraft, in a timely manner, of the best available information regarding known delays, cancellations and diversions. In addition, each airline will establish and implement policies for accommodating passengers delayed overnight. A clear and concise statement of airlines' policies in these respects will also be made available to customers.

3

On-time baggage delivery

Each airline will make every reasonable effort to return checked bags within 24 hours and will attempt to contact any customer whose unclaimed, checked luggage contains a name and address or telephone number.

4

Support an increase in the baggage liability limit The airlines have successfully petitioned the Transportation to increase the baggage liability limit. Department of

5

Allow reservations to be held or canceled Each airline will allow the customer either to hold a telephone reservation without payment for 24 hours or (at the election of the carrier) to cancel a reservation without penalty for up to 24 hours, in order to give customers an opportunity to check for lower fares through other distribution systems, such as travel agents or the Internet.

6

Provide prompt ticket refunds. Each airline will issue refunds for eligible tickets within 7 days for credit card purchases and 20 days for cash purchases.

7

Properly accommodate disabled and special needs passengers Each airline will disclose its policies and procedures for handling special needs passengers, such as unaccompanied minors, and for accommodating the disabled in an appropriate manner.

8

Meet customers' essential needs during long on-aircraft delays The airlines will make every reasonable effort to provide food, water, restroom facilities and access to medical treatment for passengers aboard an aircraft that is on the ground for an extended period of time without access to the terminal, as consistent with passenger and employee safety and security concerns. Each carrier will prepare contingency plans to address such circumstances and will work with other carriers and the airport to share facilities and make gates available in an emergency.

9

Handle "bumped" passengers with fairness and consistency Each airline will disclose to a passenger, upon request, whether the flight on which the passenger is ticketed is overbooked, if, within the usual and ordinary scope of such employee's work, the information is available to the airline employee to whom the request is directed. Each airline will also establish and disclose to the customer policies and procedures, including any applicable requirements (such as check-in deadlines), for managing the inability to board all passengers with confirmed reservations.

10

Disclose travel itinerary, cancellation policies, frequent flyer rules and aircraft configuration Each airline will disclose to the customer: (i) any change of aircraft on a single flight with the same flight number; (ii) cancellation policies involving failures to use each flight segment coupon; (iii) rules, restrictions and an annual report on frequent flyer program redemptions; and (iv) upon request, information regarding aircraft configuration, including seat size and pitch

11

Ensure good customer service from code-share partners

Each airline will ensure that domestic code-share partners make a commitment to provide comparable consumer plans and policies.

12

Be more responsive to customer complaints Each airline will assign a Customer Service Representative responsible for handling passenger complaints and ensuring that all written complaints are responded to within 60 days. Each airline will develop and implement a Customer Service Plan for meeting its obligations under the Airline Customer Service Commitment. Customer Service Plans will be completed and published within 90 days and will be fully implemented within 6 months. Airline implementation will include training for airline reservation, customer service and sales personnel to enhance awareness of the responsibilities involved in implementation of the Customer Service Commitment and Plans. The Airlines will publish and make available their Customer Service Plans: (i) on airline Internet Web sites; (ii) at airports and ticket offices (upon request); and, (iii) to travel and reservation agents.

TOTAL PRODUCT CONCEPT

COMFORT/ SPACE

TICKETS CONNECTI NG FLIGHTS FOOD MULTICUISINE

AUCTION

Core TRANSPOR T BRAND NAME CONCESSIO (Air India, Jet NS Airways) COMPLEMENTA RY GFITS

CAB SERVICE

THE CORE SERVICE:
The core service of the airlines industry is to transport goods and services to various destinations. As the needs of the people increased the entire system became more organized and formal. After this stage came the formal service

THE FORMAL SERVICE:
The airline industry has many players they had a brand name like ‘Air India’,’ Jet Airways’,’ British Airways’. All of them had some common services to offer like connecting flights, through check-in, tele check in, food on board, and complementary gifts etc. Different classes like economy class, business class were introduced. Air concessions are given to school students, old people etc. Singapore airlines was the first to introduce small 8”television screen for every passenger. The freebies are actually win-win deals between airlines and other services. Sahara, for example, offers its passengers a ‘business-plan’ on two-way economy class ticket, which includes a night’s stay with breakfast, STD facility for 3 minutes and boardroom facility at the Park Hotel, New Delhi. To Delhi based fliers to Mumbai, it offers a night’s stay with breakfast, airport transfers and VIP amenities at The Orchid, Mumbai. For business class, the plan includes a stay at The Leela, with buffet breakfast and late checkout. All these added service helps the customer to decide upon which airlines he wants to travel. As competition increased and the customers wanted more the next phase evolved and that is the augmented service.

THE AUGMENTED SERVICE:
This phase is where the customer’s expectations are met, the service providers kept working on new methods to meet the ever-changing customers demands. The players introduced online booking, which was very convenient for the service users. British Airways business class has showers, its more spacious and comfortable. Sahara airlines offer its passengers six different types of cuisine like vegetarian, fat free, diabetic etc. They also have auction going on board. Virgin airlines has gambling on board, they also have body massage to offer to their passengers. Air Emirates has something called cab service, they have customized pick up and drop cab service. This phase is the most crucial one; with increased competition service will become the final differentiation.

FUTURE SERVICE:
As mentioned above the customer needs keep changing, the future is unknown.The customers may be looking in for more frequent inexpensive air travel, something like air taxis. Super sonic speed this decreases the time thus reducing the cost.

Characteristics of airline industry. INTANGIBILTY THIS IMPLIES--- That services offering cannot be felt, seen, touched and therefore can’t be tasted or sampled.  No surefire way of measuring the benefits.  No inventory, no storage.  That there may never be any ownership of service offerings of the customer. How airlines have overcome these----Visualization British airways shows in its advertisement a long chair on which even one can sleep peacefully. The mascot of Air India shows that it is always at customer’s service by bowing down. Physical representations. Color Jet airways have blue color tickets. Uniforms Air India’s staff always wears a printed blue sari. Logos and mascots Air India's centaur is the logo and maharaja is the mascot. Building Air India building at Nariman point. Documentation For airlines the sales can be measured on the basis of tickets sold. The tickets makes the service tangible. Facts and Figures PERISHABILITY Services are perishable; they cannot be stored. Therefore an empty seat on a plane, is a lost opportunity forever. OVER MARKETING Two hours check in before departure Managing demand

Negative demand The September 11 event had made an impact on the customer’s mind for negative demand.

Air-India is India's national flag carrier. Although air transport was born in India on February 18, 1911 when Henri Piquet, flying a Humber bi-plane, carried mail from Allahabad to Naini Junction, some six miles away, the scheduled services in India, in the real sense, began on October 15, 1932. It was on this day that J.R.D. Tata, the father of Civil Aviation in India and founder of Air-India, took off from Drigh Road Airport, Karachi, in a tiny, light single-engined de Havilland Puss Moth on his flight to Mumbai (then known as Bombay) via Ahmedabad.

Tata Airlines, as Air-India was then known, consisted of one Puss Moth, one Leopard Moth, one palm-thatched shed, one whole time pilot assisted by Tata and Vintcent, one part-time engineer, two apprentice-mechanics and unlimited optimism. In 1933, the first full year of its operations, Tata Airlines flew 160,000 miles, carried 155 passengers and 10.71 tonnes of mail. Tata Airlines was converted into a Public Company under the name of Air-India in August 1946. By the beginning of 1947, Air-India turned its attention to the international scene. Towards the end of the year, an agreement was reached with the Government of India for the formation of Air-India International Limited to operate international services

50Air-India's inflight service is globally recognised in the industry for its warmth and personalised service. In our endeavour to offer you luxury and service that a discernible regular flyer looks for through out the journey, we have provided conveniences that we hope will give you all the comfort you need to make your travel a pleasurable experience on board our flights.

On Boeing-747-400?
Air-India has special features just for your comfort on this state-of-the-art aircraft. Call the world from your seat- using the Inflight Sky Phone. All major credit cards are accepted for availing this facility half an hour after take-off and before landing. Our cabin crew is on hand to assist you.

Leisure Sky High
In addition to the food, the wines, the champagnes and the choicest liqueurs, we can keep you absorbed with our inflight entertainment programmes selected on the basis of passenger feedback. Namaskaar - Air-India's popular inflight magazine, is a myriad collection of features on India and popular destinations abroad.

Just for You
Colognes, moisturizers and after-shave lotions for inflight use are available in the toilets. Medicines for treatment of minor discomforts are available with the Cabin Crew. Additional pillows and blankets can be requested to make yourself comfortable.

Kids Special
Toys and games are available for children upto the age of 12 yrs. Books and comics are also available on request. Special assistance for babies and infants is available on request.

~~l Air-India flights are non-smoking flights.

Traveller's Delight
Keeping our high standards of commitment and excellence throughout, we at Air-India take pride in catering to your taste and offering you the finest cuisine onboard. .

On-Board Food Festivals
On select routes, in addition to the regular fare, our First and Executive Class flyers can look forward to our Food Festivals in the air. We invite leading restaurants in India and abroad to participate. The first in this series was The Gourmet Experience launched on the India / USA / India route in May 1988. Leading restaurants of 5-star hotels, the Taj and the Oberoi group in Mumbai, Delhi, London and New York participated in this festival, offering exclusive Continental / Indian delicacies on-board. There was a treat for lovers of Chinese food: The Chinese Food Festival, in March 1990, held in collaboration with China Garden, Mumbai's leading Chinese restaurant. Then we had the Cuisine de Fusion, presenting a unique blend of the best Indian and Continental eats, in collaboration with the Taj Group of Hotels. This was held in February / March 1993 on Mumbai / Delhi - London flights. And there have been many ever since... the Pakhtooni Dawat, Shakahari Food Festival, Goan Food Festival. These festivals come complete with special menu cards which are treasured as collectibles, swizzle sticks, match boxes and even the right ambience to add to the gourmet pleasure.

Unwind, sooth yourself or relax for a while with our captivating in-flight entertainment. You could choose from a variety of music, both traditional and western or may be catch up on some of the latest films. We offer you an exclusive peek at some of the clippings of the movie's onboard our flights or just listen in to a sample of the varied kinds of music. Look up the inbound theatre section if you are traveling into India and the outbound theatre section if you are headed from India to another country. So just sit back and enchant yourself with entertainment galore and have a pleasant flight.

Shopping is every traveler’s irresistible weakness and to make sure you have something fancy, something useful to buy till you land at your destination, we have on board an array of items to choose from. .

Jet Airways, India’s “World Class Domestic Airline”. Jet Airways operates over 245 flights daily to 41 destinations across the country. The rapid expansion of our route network has earned us the prestigious Air Transport World Award 2001 for Market Development. They also pride themselves in having the youngest fleet of aircraft in India, consisting of the modern 737-400/700/800 and the ATR 72-500.

They strive to provide service of the highest standard to our customers, both on ground and inflight. They pride themselves on having an unbeatable record of ontime flights and providing world-class frequent flyer benefits to our customers, through our alliances with British Airways, KLM Royal Dutch Airlines and Northwest Airlines. They were the first Indian airline to receive the World Travel Market Global Award, the world's premier global travel event in London. They have also won the H&FS Domestic Airline of the Year Award twice. And Citibank Diners Club has chosen them as India's best domestic airline for their excellence in service.Today, they are India's most preferred airline for their consistent performance.

We believe... Our mission statement
Jet Airways will achieve this pre-eminent position by offering a high quality of service and reliable, comfortable and efficient operations. Jet Airways will be an airline which is going to upgrade the concept of domestic airline travel - be a world class domestic airline. Jet Airways will achieve these objectives whilst simultaneously ensuring consistent profitability, achieving healthy, long term returns for investors and providing its employees with an environment for excellence and growth.

Where we started:
On May 5, 1993, Jet Airways was set up with the objective of providing high quality and reliable air travel in India. A very high percentage of the Indian domestic air traffic comprised business travellers. Therefore, our focus from the very beginning was to emerge as the "Businessman's Preferred Airline".

Our Inflight Services is now ISO 9001:2000 Certified
Jet Airways is now one of the few airlines in the world to receive the prestigious ISO 9001: 2000 certification for our Inflight Services. The ISO 9001:2000 is one of the most stringent quality management systems worldwide and is only awarded to those companies whose quality standards are impeccably high. What this means at Jet Airways, is that our Inflight Services Department is monitored for quality at every stage and at all times. What this means for you, is world class quality every time you fly with us.

ISO 9001: 2000 certification for our Inflight Services - Inspired by you.

Jet Airways Citibank Gold Card
They now offer our Jet Privilege members an opportunity to earn free flights even faster with the Jet Airways Citibank Gold Card. In association with Citibank N.A. and MasterCard International, this is the country's first co-branded credit card.

At Jet The membership fee for the primary card is Rs. 2000 p.a. You can also get addAirways we understand that our overseas passengers have special needs. So whether you on cards for up to two members of your family (above 18 years of age) at a have to catchfee connecting p.a., per card. your special a of Rs. 1000 flight, retrieve baggage, transfer between airport terminals, or even check flight schedules, we are equipped to offer you all the information and assistance that you might need to make your journey more pleasant and comfortable.

About the card

At your Service
At Jet Airways we realize that some of their passengers require special attention. Young children can get quite restless on a flight, while our senior passengers may need some assistance. We thus offer a host of services tailored to their special needs.
• • •

Senior Citizens Unaccompanied Minors Disabled Passengers

We are also proud to be the first domestic airline in India to run a special program called 'Jet Kids' for the children on our flights.

Senior Citizens
Senior Citizens can avail of travel concessions on Economy Class on all the sectors Jet Airways operates. Passengers above the age of 65 years are entitled to a concession on the basic airfare. This concession is available in Indian Rupees for Indian nationals and in US Dollars for foreign nationals.

To avail of this concession, just fill out the “Concession Form” and submit it along with a photograph and your proof of date of birth. They also have special wheelchair facilities for our elderly and disabled passengers. If you need any assistance, please do not hesitate to approach a member of our staff.

Jet Kids

Jetkids is our special programme for the younger patrons of Jet Airways. Children between the ages of 2 to 12 years need not just look forward to the excitement of flight take-off and landing, for we also have other surprises for them. There are exciting gifts for children on board, to occupy their agile minds.

Jet Elite

Your boarding pass also takes care of your lodging… Jet Airways, India’s favourite domestic airline, brings you JET ELITE, a unique offer that turns your boarding pass into a lodging pass at some of the best hotels across the country. All you need to do on your next business trip is check your schedule, and refer to our city-wise list of participating hotels. Then, just show your Jet Airways boarding pass at the reception counter of the hotel in which you choose to stay to avail of fantastic discounts and offers. They also have special offers to our JP Gold and Silver Card members.

S p e c i a l H o t e l O f f e r s for Overseas Transit Passengers
The next time you are flying to India and have to take a connecting flight from Mumbai, Delhi or Chennai to various Indian destinations, you could avail of fabulous hotel offers especially

meant for Jet Airways passengers in transit. On arrival in Mumbai, Delhi or Chennai, you could avail of special room rates at select hotels, located close to the airport and relax comfortably until ready to board your connecting domestic flight. This offer is open for overseas transit passengers staying up to 12 hours at special rates. This would facilitate paying only for a brief stay rather than having to pay for full room rates. One can avail of this offer by showing the Jet Airways ticket at the time of checking-in at the hotels in the following cities

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