East-West Air LinesA Failed Experience

Major Private Players • East-West Airlines • Large network of efficient air service • Damania Airways • First class service at economy fare • Jet Airways • International standards of service • Modiluft • Personalized service .

• Customer airline preference based on • Check in system • In-flight service • Overall rating of East-West was fair or rarely good • 3% rated East-West’s service prior to boarding as best • 33% rated East-West’s inflight service as good .Survey Results: • Damania Airways most preferred.

1.What went wrong: • The major problem was the marketing strategy • Positioned themselves as “a large network of efficient air service” • Customers were attracted towards private airlines for • East-West could not provide customer satisfaction as it was not customer oriented • As per the survey customers did not prefer EastWest based on • Check-in system[3%] • In-flight service[33%] • Better services • Value for money .

• Implementation Issues: • Two types of aircrafts uneconomical in a small fleet • Rapid expansion created more problems as Load Factor was only 75-80% • Absence of frequent flyer miles • Absence of interline arrangements for foreign tourists • Absence of no standard way to get Agents Feedback .) : • The target segment of East West was people who need efficient air service which leads to business class travelers but they are concentrated mainly on the trunk routes and thus the strategy to provide a large coverage leads to a contradiction.What went wrong(cont.1.

New Air Taxi Operator(ATO): • Government regulations limiting • • • • Publishing of departure schedule in print media Space and facilities in airports Lift domestic air cargo Routes to include non-profitable ones • Intense competition and excess capacity leading to lower profit margins • Customer Oriented • Better service quality through • Hospitality • Speedy grievance handling • Aircraft interiors • Controlled Growth .3.

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