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In partial fulfillment of BBA 2007-2010
Submitted by : SUMIT PHOGAT BBA(GEN.) Roll No. : University roll no. :
Submitted to : MS. POONAM CHAWLA (PROJECT GUIDE)
Maharaja Agrasen Institute of Management Studies
(Affilated to Guru Gobind Singh Indraprastha Univrsity)
It is to certify that Mr. SUMIT PHOGAT “Studying in our institute of management studies” was allotted the project on “INDIAN AIRLINES” by Guru Gobind Singh University has successfully completed it under the guidance of Ms. POONAM CHAWLA (PROJECT GUIDE)
Ms. POONAM CHAWLA
Dr. N. K. Kakkar
I take this opportunity to express my profound sense of gratitude and respect to all those who helped me through out the duration of this project. It gives me immense pleasure to acknowledge my indebteness and sense of gratitude To Ms. POONAM CHAWLA (Project guide) for the project under taken. I also immensely thank the other faculty members of the institute under who continous support and guidance I completed the project.
4 .DECLARATION I here by declare that the project work titled INDIAN AIRLINES Is an authentic work carried out by me under the guidance of (Project guide) for the partial fulfillment of degree of BACHELOR OF BUSINESS ADMINISTRATION And this has not been submitted anywhere else for the award of any other degree or diploma.
It was a great experience in getting under such a reputed company. 5 . I was given knowledge about the way and style of their working.e. which has in it the ability to retain customer. their routine and their environment. Customer loyalty plays a significant role and today securing that loyalty requires quality right price and of course last but not the least i. creating awareness about their service.EXECUTIVE SUMMARY The current millennium has unfolded new business rules most the significant of them being that company has to constantly look into minds of the customer. As a trainee.
INDEX CHAPTER – 1 • Preface • Objective • Research methodology • Introduction • Company profile • Marketing strategy • Analysis of data CHAPTER – 2 CHAPTER – 3 CHAPTER – 4 • Limitations • Suggestion • Conclusion BIBLIOGRAPHY 6 .
This project is all about the “Marketing initiatives taken by Indian Airlines” with a rapidly changing technological. effective marketing management has become a very challenging job.PREFACE I feel great pleasure in doing my project “ EFFECTIVENESS OF VARIOUS PROMOTIONAL FARES OF INDIAN AIRLINES” with Indian Airlines. emerging of various private airlines. political-legal and the trend towards globalization of business and industry. In this project I have analyzed the different promotional fares implemented by Indian Airlines and have given feedback regarding their effectiveness and whether they should be continued or discontinued on different sectors. The whole hearted support of the executives of the Indian Airlines has enabled me to complete this project. 8 . social. economic.
9 . To study and analyze the customer perception and preference about INDIAN AIRLINE. Finally to draw the various conclusion and recommendation on the basis of study conducted.OBJECTIVE To identify the services offered by INDIAN AIRLINE.
But the perception of value is a subjective one. Analyze and interpret the data. Prepare the research report.RESEARCH METHODOLOGY Managers need information in order to introduce products and services that create value in the mind of the customer. The analysis involves the following steps: Define the problem. Rather. and what customer’s value this year may be quite different from what they value next year. the attributes that create value cannot simply be deduced from common knowledge. Determine sample plan and size. Collect the data. For the purpose of study. The goal of Marketing Research (analysis) is to provide the facts and direction that managers need to make their more important marketing decisions. Determine research design. As such. Identify data types and sources. data (information) must be collected and analyzed. data from the in-house survey conducted by the marketing department (secondary data) has been used and also for 10 .
AVIATION INDUSTRY 11 .coming out with the recommendation. The methodology adopted was to gather relevant information from the appropriate department. correlate the information obtained and to present the information in a logical and systematic manner. It was also felt that mere secondary data would not provide in-depth information for the analysis. hence it was decided that interactive discussions with the managers and the head of every department would help in an in-depth and true understanding of challenges faced by the department.
Indian Airlines suddenly saw its market share drop and its supremacy challenged. By 1996. there were seven players who were operating with a scheduled airline’s while 22 others were fling as non-scheduled or ATO. After reporting an Rs. by their market share in domestic traffic was negligible. suddenly realized that there were airlines willing to offer that little extra bit that means so much. and Indian Airlines suddenly saw its market share drop to 53 per cent from its earlier unassailable position. 12 . The scheduled airlines included EAST-WEST AIRLINES. which resulted in under utilization of its Boeing fleet. for all practical purposes. too. Passengers. Pilots let the airline in hordes to more lucrative jobs with the private operators.INTRODUCTION Though the Open Sky Policy was announced 11 years back. MODI-LUFT. Nineteen others got no objection certificates (NOC). there were 12 operators in the market. By 1999. The growing disenchantment with the services (or lack of it) of IA and the frequent agitation by its employers prompted the “decision-markets” to usher in private air-taxi operators (ATO’s).11 crore profit in 2001. the Indian aviation industry actually took off with the entry of as many as 6 companies in the first half of 1991 when the state run Indian Airlines was facing industrial strife.
passenger-friendly 13 . Obviously. when there was a mismatch between the returns and the outgo. But. With this. NEPC and ARCHANA.DAMANIA. Jammu and Kashmir and 50% to non-trunk stations. came the realization that a whole lot of overheads associated with the flying were involved and higher utilization of the leased aircraft and better route planning was essential to survive. Companies such as EAST-WEST leased several 100 plus seater aircraft and developed a large network in a short span. DAMANIA. some of them shut shop. It became mandatory for scheduled airlines to fly at least 10% of their capacity to the far flung uneconomical areas such as north-east. but established itself as the largest private sector player. Jet Airways grew slowly and not only outlived competition. the initial euphoria died out in 1997 when the Air Corporation Act of 1953 was repealed and it became obligatory for ATOs with three or more aircraft to become scheduled airlines and operate according to certain guidelines (protocol). which had created brand equity of its own as an elegant. even before the guidelines were issued in 1997. While the market share of private operators soared to 41% from 1996 to 1999 (eating into IA’s share). JET AIRWAYS.
MODILUFT in November 1999. some faltered. buckled under pressure and was purchased by NEPC in 1996. By the first quarter of 2000. and NEPC in March 2000. Indian Airlines. and prepared it to battle for its tort with the likes of Jet Airways and Sahara Airways as and when they fly. Jet Airways is on a fleet expansion spree.intensive industry. have survived and are prepared to make a comeback to this glamorous but highly capital. despite its failure to phase out older aircraft. And as aviation experts projected. is regaining lost ground. After a fairly long bout of uncertainty. they managed to shake Indian Airlines from its monopolistic complacency. only the players who understood the rules of the game. most fell by the side.airline. UB AIR and RAJ AIR followed it. but while they were there. while Sahara Airlines is preparing for a face life that should really gear up the domestic market. domestic airlines are on the upswing again. EAST-WEST in May 1999. THE RESOURCE OF DOMESTIC AIRLINE They came. 14 . three more airlines suspended their operations due to non-availability of aircraft.
Sahara Airlines and Indian Airlines to expand and grow… 15 . the Indian sky is left for Jet Airways.Today.
The passenger carriage. Alliance Air is the fully owned subsidiary of Indian airlines. Moving with time. wide bodied airbus A300s.e. Indian Airlines has been setting the standards for civil aviation in India since its inception. with a fleet of 62 aircrafts (i.78 million in 1999-2000. Today Indian Airlines 16 .5 million in 1954-55. Indian Airlines became operational since its inception in the year 1953 and celebrated its Golden Jubilee in the year 2003 completing its 50 years of transcendental service in air traveling. It has many first to its credit. Domestic shuttle service and Walk-In Flights. has grown to 7.INDIAN AIRLINES – A PROFILE Indian Airlines (IA) is the India’s largest government owned regional airline systems in Asia. including the introduction of the wide-bodied Airbus A300. Indian Airlines is one of the first organizations in the country to establish a widespread computerized network for reservations and ticketing. Boeing 737. Indian Airlines has total staff strength of approximately 19600 employees with an annual turnover of more than Rs 4000 crores (1billion USD) including that of Alliance Air. which was 0. Dornier D-228. ATR-42. one Fly-By-Wire Airbus A320s).
Ticketing. Its unique orange & white logo emblazoned on the tails of all its aircraft is perhaps the most widely recognized Indian brand symbol that has over the years become synonymous with service. Yangon and Malaysia in south-east Asia and Pakistan. Myanmar. Nepal. Oman. UAE. A320 and B737 aircrafts. Bangladesh. which includes 64 national and 16 international destinations with 35000 seats daily? Indian Airlines have been divided into four regions i. efficiency and reliability.together with its subsidiary airlines carries a total of over 7. The Indian Airlines international network spans over Kuwait. Northern region and Southern region. Message Switching and fare display. It has state-of-the-art facilities for all aspects of maintenance. Qatar and Bahrain in west Asia.e. Srilanka and Maldives in the south Asian sub-continent.8 million passengers annually. Western region. State-of-the-art full flight simulators are available for A300. Singapore. The Airlines online facility provides services like Passenger Reservation. The pilots are trained at Hyderabad where the commanders and captains are trained in all types of aircraft in the Indian Airlines fleet. Thailand. An interactive voice 17 . Eastern region.
recording system for providing flight information is also integrated with the reservation system. Airline code:IC CD Indian Airlines Alliance Air Aircraft acquisition:A300 A320 737 ATR 228 154 62 Class:C JY Business class Executive class Economy class Wide Bodied Airbus A300 Fly-By-Wire Airbus A320 Boeing 737 ATR-42 Dornier 228 TU 154 IL 62 Days:1 2 Monday Tuesday 18 .
6 - NUMBER OF SEATS IN VARIOUS AIRCRAFT 19 .5 8.7 18.3 4 5 6 7 - Wednesday Thursday Friday Saturday Sunday FLEET STRENGTH AIRCRAFT TYPE A-300 A-320 B-737 D-228 ATR-42 STRENGTH 4 41 11 2 4 AVG LIFE(YRS) 20.8 14.
AIRCRAFT TYPE BOEING-B737 AIRBUS-A320 AIRBUS-A300B2 AIRBUS-A300B4 DORNIER-D228 ATR J 20 33 32 - Y 119 125/126 215 215 19 50 TOTAL CAPACITY 119 145/146 248 247 19 50 AIRCRAFT UTILIZATION 20 .
21 .TYPE OF REVENUE FLYING HOURS UTILIZATION AIRCRAFT ANNUM(HOURS) 1999-00 2000-01 2001-02 19992000- PER PER 2001-02 2491 3178 **** AIRCRAFT A-300 A-320 B-737 24886 81680 905 24804 84346 431 19629 98042 670 00 2274 2954 **** 01 2400 3048 **** **** B-737 has been given on lease to Alliance Air.
Indian Airlines provides 5% and 7% commission on domestic and international fares respectively to the travel agents. Connectivity with the reservation centers and agents is good. 22 . Government Backing. SWOT ANALYSIS OF INDIAN AIRLINES STRENGTHS Large fleet.REVENUE FOR INDIAN AIRLINES Today nearly 80%of the customers are provided by the travel agents to the Indian Airlines and these travel agents are 2000 in number spanning the whole country. Experienced staff. Dedicated departure terminal at Delhi. People are loyal towards the national carrier. Indian Airlines has a modern and complete in-house training facility. Adequate infrastructure and large network.
Being a dedicated terminal all services rendered at the airport is presumed by passengers to be done by Indian Airlines. Inaccessibility of the staff over phone. Ageing fleet. Indian Airlines has its socio-economic responsibility of catering to the inaccessibility areas at subsidized rate affecting operational expenses. On the spot decision making flexibility not there. Job security too high. Political/Bureaucratic interference. Preconceived image of PSU’s. Ageing workforce (cabin crew). Attitude of the staff. 23 .WEAKNESSES High overheads and huge workforce resulting in lower output.
Recent world events hitting the tourism industry badly. Shelving of the privatization plans of Indian Airlines by the Government of India. Increase in the capacity of various airlines. Weakening of the dollar rate in comparison to the rupee. THREATS Perception of the better product in comparison to that of the competitor. Response to some of the promotional fares (schemes) is encouraging. Corporates are showing interest in Indian Airlines. Economic scenario is showing an upturn. 24 . Expectation of people from Indian Airlines is high. Induction of new aircrafts on lease. Falling market share of Indian Airlines to that of Jet Airways. even some of them are unrealistic.OPPORTUNITIES Tourism industry is gaining momentum.
This means that higher the seats sold more is the revenue generated. resulting in crippling results and damaging reputation. The marketing concept of building an organization around the profitable satisfaction of customer needs has helped firms to achieve success in high-growth. This product is highly perishable and costly. moderately competitive markets. this means that much space has perished. a well-developed marketing strategy is required. However. Airlines earn revenue by selling this space. Indian Airlines took resort to the Turn Around Strategy which constitutes the following: 25 . Such a strategy considers a portfolio of products and takes into account the anticipated moves of competitors in the market. Thus if the plane goes in the air with empty space. Thus the life cycle of the airline’s product begins and ends with each flight.MARKETING STRATEGY OF INDIAN AIRLINES The product that Indian Airlines sells are ‘SPACE’ it may be its seats or cargo space. AFTERMATH To rectify the melody that has been slowly but surely creeping. to be successful in markets in which economic growth has leveled and in which there exist many competitors who follow the marketing concept.
of the following: 1. lack of resources and mounting losses. Productivity Lined Agreements. were entered into. HRD Initiatives As the first step free and frank discussions with a cross section of the employees were held. A greater transparency was built into recruitment and transfer policies with a view to boosting their trust and confidence. In interactions with unions and Associations a firm but fair attitude was taken. 26 . Focus on training of personnel was enhanced to increase effectiveness. Top management undertook extensive tours of all stations to communicate the details and vision behind all major policy initiatives and to get their response to them. IA has unleashed an aggressive marketing & advertising exercise backed by service up gradation & customer friendly overturns. it had to formulate and implement a Turn Around Strategy. with marketing as a non-issue. Since the company was faced with increasing competition.TURN AROUND STRATEGY: On 1st March 1997 Indian Airlines became a Public Limited Company. The new plan consisted. where the inflows exceed the outflows despite the fact that market wages were being given. Till now IA had only emphasized on distribution. To find its place in the sun again.
Enhanced Productivity and Availability of Pilots The agreement signed with ICPA in 1996 resulted in the increase in monthly utilization of Pilots from 50 to 63 hour. With the promotion of 80 Pilots into the executive cadre monthly utilization went up further to 75 hours. Productivity of Engineers also had to be linked to the daily availability of aircraft. Increased Utilization of Aircraft With a view to increasing aircraft utilization. pilots needed to be made to put in more flying hours and steps had to be taken to increase the number of Commanders. i. Certain rationalization and changes in training patterns of Commanders. ii.2. Increased Productivity of Engineers Productivity of Engineers has also significantly increased as a result of other productivity-linked agreement thereby increasing daily availability of aircraft as follows: A-300 A-320 7-8 aircraft per day from 4-5 25-26 aircraft per day from 20 27 . due to signing of a landmark agreement with pilots’ Association resulted in increased out-turn of Commanders.
Kuala Lumpur. The organization is unable to be as nimble as it ought to be in terms of decision making. The new stations added are Doha. an integral part of turn around strategy was to hive off certain activities into separate profit centers.3. Indian Airlines’ size is strength. Bahrain and Yangon. Mumbai–Chennai. and Delhi-Bangalore. it is also a major disadvantage when it comes to operating in a fast changing and competitive environment. Creation of Profit Centers While on one hand. Consequently. Increased International Operations (a) Indian Airlines went in for increasing the number of destinations to neighboring countries. It has already started launching shuttles on the heavy Mumbai–Delhi routes. which went up to 17 stations in 1999. Also a more direct 28 . In 1997 Indian Airlines operated 12 international stations. 4. customer service and employees motivation. to make them more focused. flexible and accountable. Kuwait. (b) On the domestic front – IA is planning to start Shuttle type flights on major metro routes like Mumbai–Bangalore. It is not possible to take decisions specific to small groups of employees without reference to the 22003 strong work forces.
Sustained and 29 . The first of such profit centers was the state-of-the-art Jet Engine Overhaul Shop at Delhi. Recently the Auxiliary Power Repair Unit at Calcutta.linkage between productivity and emoluments has been created. It has also enabled the Commanders in Indian Airlines to be utilized more optimally on A-300 and A-320 fleet. 390 lakhs in 1999-97. Indian Airlines has also set up a subsidiary airline. Similarly the Central Training Establishment at Hyderabad was also converted into a Profit Centre. Alliance Air. thereby reducing problems of industrial relations. increased from Rs. On conversion as Profit Centre the earnings of CTE from outside party jobs after fully meeting the requirement of Indian Airlines. 5. 30 lakhs in 199795 to Rs. Marketing Initiatives Indian Airlines took a number of economic initiatives and brought about significant improvements in its product. the Ground Support Department and the Cargo Department has also been declared a Profit Centre. This airline has helped in increased utilization of the Boeing aircraft by inducting Commanders from the open market and focusing on regional routes.
damask linen tablecloth and napkins. tried their luck. by entering into a reciprocal arrangement with Air France and launching Joint Promotions with American Express. hot and cold towels. WIDER SEATS: Wider seats provided in Executive Class of Airbus A-320 aircraft. CHOICE OF MEALS: Introduction of a choice of meals. with lucky draws for a luxury car. bread/fruit baskets. The marketing initiatives taken were: I. It also launched a major drive to enroll more members to its FFP program. 30 . for which passengers who had flown at least five times between midDecember 2000 and mid-March 2001. Hertz Rent – a – car and the Welcome group.meaningful campaign was launched to disseminate information about these improvements. FREQUENT FLIER PROGRAMME: IA has further strengthened its frequent flyers programme (FFP). PRODUCT IMPROVEMENT 1999-00 EXTRA SEAT-PITCH: Extra seat-pitch in B-737 and Economy Class of Airbus A-300. soups.
salt. 100/. elderly and handicapped passengers. There will be a nominal refund fee of Rs. provided the reservation is cancelled one hour before the scheduled departure of the flight. DIET SPECIAL: Light. and fat free diet meals and mineral water. sugar. low fat. BAGGAGE PLUS: Baggage Allowance on all domestic flights enhanced by 10 kilograms. easily digestible recipes made by new cooking methods and mediums. Infants also allowed 10 kilograms of free Baggage Allowance. CHECK-IN PLUS: Assistance for minors.only in case the ticket is refunded /reissued. 31 .SENIOR CITIZEN DISCOUNT: Persons who have attained the age of 65 years on the date of travel land who are resident citizens of India are entitled to 50% discount on the normal rupee Adult Fare. WAIVING OF CANCELLATION CHARGES: 2000-01 Indian Airlines has waived of cancellation charges. MEAL SPECIAL: Better presented meals with weekly changes.
II. 52 stations are equipped with computerized reservation facility. • Of the 53 domestic stations where Indian Airlines flights are being operated presently. DIAL-A-CANCELLATION: Passengers and Travel Agents can now effect cancellation on telephone or through fax message. the instant reservation facility has been extended to a total number of 69 stations. through check-in of baggage and meals during transit waiting time. Bengali food on Durga Puja. REPORTING TIME: Reporting Time reduced from 75 minutes to 60 minutes at all the airports except Delhi. Srinagar.TRANSIT SPECIAL: Special Transit Desks. FESTIVAL FOODS: Passengers were served special sweets on Diwali. Avadhi food on Holi and Plum Cake on X’mas. RESERVATION FACILITIES • To facilitate reservation between any two stations of Indian Airlines network. Leh and Jammu. 32 .
who account for twothirds of the airline sales. The airlines set up an “agency help desk” to focus on problems of the trade. The guarantees were raised in proportion of increasing business. will just not respond. Incentive Schemes IA has realized that unless the distribution network is rejuvenated with generous doses of incentives. • Indian Airlines and Air India jointly under National Marketing Division (NMD) are distributing Systems Interface for Travel Agents Reservations (SITAR). The airline has introduced a three per cent sector-linked – incentive-commission. 6. which invariably discourage agents from plumping for more sales. 7.• All the 17 international stations. • Computerized reservation facilities extended to about 750 agents spread over 38 stations. Price 33 . where Indian Airlines is presently operating are equipped with CRT terminals. Even the bank guarantees were frozen at last year’s level for all the agents and not raised to match over trading. which is the state-of-the art technology from SABRE. High – speed modems are also being installed to facilitate faster transactions. which can be deducted by agents at source. the agents.
8. 34 . The General Managers in the four regions have been authorized to extend a 15% bulk discount to passenger groups depending on market conditions. slash in price for the make up of losses.In the year 1999. Promotion through Frequent Flyer Programme (FFP) To add more value to its FFP. IA started a “make up strategy” i.e. point-to-point fares have been rationalized (a special discount of 9% is offered on 135 specific routes) and excess baggage payments are accepted in credit cards. which will offer a host of benefits against ticket purchase and entertainment expenses. IA is talking to both American Express and Citibank to issue a co-branded card. It was followed up by many airlines as a quick penetrating strategy to draw in big crowds. It is also signing up a ‘flying returns’ agreement with Citibank. which will entitle users to redeem their credit card points against mileage points and free tickets thereafter.
Chennai. 11. The airline has also launched advertisement cum media 35 . 10. The pager Company will thus acquire a large chunk of customers and ‘sell advertisements’ on the pager. Touchdown boards The message to the passenger. the airline has put up “touchdown” boards at the six major metros. obviously is.000 frequent flyers at six major metros. While the pagers service will be free in the first year. promotional efforts. In order to design an ideal flight schedule. Customer Contact Programme The airline is finally laying more emphasis on customer contact programs. The pagers will enable the airline to inform the passenger about the changes in schedule. Mobilink will levy a nominal user fee. IA has hired IMRB to meet a sample group of 10. value addition schemes. “we care”. and Calcutta. Mumbai. in the subsequent years. to keep passengers informed about customer relevant developments in the airline such as the monthly product upgrade. flight delay etc. To increase customer awareness.9. Offer of Free Pagers by Mobilink It has also tied up with Mobilink to offer free pagers to some 70.000 frequent flyers at Delhi. lucky draws etc. It is also roping in a direct marketing agency to respond to passengers grievances.
infrastructure. “Indeed. now known as Enterprise Nexus Communications after its merger with Enterprise Advertising. maintenance efficiency. posters. followed by copy that read. no other airline offers such a wide choice of aircraft. picture postcards.blitzkrieg to drive home its strengths: IA’s schedule advantage. leg room. reinforcing its leadership and overall improving its image amongst business travelers. The package aims at establishing the strengths of IA. calendars and the “travel wise consumer contact programme”. extra baggage allowance. Using an almost negative creative approach. this campaign highlighted IA’s fleet size. the marketing programme is a multimedia communication module. 12. Advertisement Cum Media Blitzkrieg Designed. developed and executed by Nexus Equity Advertising. and not just a choice of seats. multiple options. as the primary target. one of the ads said: “We admit Indian Airlines does not give you the same choice as others do”. Overall. It includes press ads. 36 . The first campaign in 1998 highlighted IA’s tangible strengths. etc. same day return facility. through a confessional tone to disarm the angry passengers.
But competition is slowly IA has learnt to be a lot more flexible in its dealings with cargo agents now. the cargo cell still retains about 80% of the market. Cargo Handling In the passenger segment. a special arrangement to go global with Air France and an attempt to touch every nook and corner of the country with the Indian Posts and Telegraphs Department. Unlike the passenger segment. attempts to now bring out consumer benefits that arise from IA’s strengths that were brought out in the previous campaigns. catching up. on sheer experience”. It is also working at automation of all the cargo officers. still ongoing. the tone is more assertive. While the visuals emphasis the reach and spread of Indian Airlines. A third campaign. 13. the ad campaign launched by the cargo division seeks to highlight the changing face of business. the IA cargo division – an independent profit centre now-has launched an all-out drive to garner a large share of the business. Interestingly. 37 . its exclusive tie-up with GATI for door-to-door express service. It underscores the vast network.The second campaign in the same year was a progression of the first but it adopted an emotional approach with lines such as: “I choose my airline the same way I choose my doctor.
Productivity of pilots rises - 38 . And its communication exercise has. private airlines are not exactly sitting back on their haunches. at least.Consolidation of assorted cargo with bulk rates is now being allowed. given it a clearer face as far as the consumer is concerned. For. pilots and by increasing the number of commanders. IA is gradually trying to shed its monolithic image. Aircraft utilization increases A good average utilization of aircraft is 2600 hours per aircraft per annum. Aircraft utilization now well exceeds the desired norm of 2600 hours per annum. and freight rates are being revised instead of sticking to published tariffs. 2. Through all its efforts. What was unthinkable till some years aback has now become a distinct reality. CONSEQUENCES OF TURN AROUND STRATEGY: 1. But this public sector organization will have to keep its bootstraps pulled up if it wants to retain leadership in the market place. which was down to a low of 1600 hours in 1997. Efforts were made to increase aircraft utilization by increasing the productivity of engineers.
fifteen new international city links were added. 4. and then to 75 hours. from 20 new commanders added in 1997-95 to 67 in 1999-97. the number of new commanders added to the fleet strength each year rose dramatically. Yangon and Bahrain. Creation of Commanders Indian Airlines had lost 166 pilots to private airlines. The aircraft availability improved significantly over the last three years. Employee morale - 39 . Kuwait. Kuala Lumpur. pilot productivity rose substantially. Productivity of engineers grows The number of aircraft made available for operation per day measures engineering productivity. Also. 3. After the revised training pattern. In fact.Doha.With the implementation of the turnaround strategy. 6. the monthly average flying increasing from 50 to 63 hours initially. The availability of A300s went up from a mere 4 aircraft per day in 1997 to 8 in 2000 and A320 from 20 in 1997 to 27 aircraft in 2000. International operations After 1997 five new destinations were added. 5.
Jet Engine Overhaul Shop As a result of the creation of separate profit centre. 390 lakh during 1999-97. This increased dramatically. there was a visible upsurge in morale and productivity among employees. Central Training Establishment Prior to its setting up as a profit centre. Establishment of Alliance Air There was a dramatic increase in the utilization of B737. 2. with the revenue touching Rs. the annual revenue was around Rs. A320 and A300 aircraft with the hiring of new commanders and pilots.With increased training efforts and management-staff interaction. 7. What is significant is that no man-days were lost in the last two years. 8. Passenger perception improves - 40 . which benefited both Alliance Air and Indian Airlines. the Overhaul Shop saves the company an amount of Rs. c.85 crore in foreign exchange every year. b. Creation of profit centers a. 30 lakh.
41 . Since this is a service industry with an intangible product. Product. over the last three years. show that Indian Airlines is now ahead of the private airlines. Promotion and Place (place of distribution). promotion and place.From the ‘least preferred’ airline in 1997. why does one airline fare better than the other? This is because of the positioning of the brand in the mind of the customer. This approach is needed because consumers are bombarded with a continuous stream of advertising. The consumers mind reacts to this high volume of advertising by accepting only what is consistent with prior knowledge or experience.e. To distinguish our product from that of others we have to maneuver the 4P’s of marketing i. Image tracking studies carried out from amongst the airline passengers by the reputed market research agency IMRB. how do you market it ? Marketing the tangible aspects associated with the intangible product does it. IA has now become the ‘most preferred’ airline. Since the product of all the airlines is the same. Price. MODE and MDRA also show that Indian Airlines is the most preferred carrier presently. The tangible aspects include price. Other surveys carried out by reputed organizations such as MARG.
the first one more over has a large advantage that can make up for other shortcomings. It is very easy to remember who is first. mostly South Delhi). 42 . They feel that same is the case in the eyes of the customers (this data is based on the survey of 48 agents carried in Delhi. Indian Airlines was the first airline in the country but it is now positioned at the second place. and much more difficult to remember who is second. Even if the second entrant offers a better product. In the eyes of the agents Jet Airways is the best placed in comparison to that of Indian Airlines in the next place in the eyes of the customers.The easiest way of getting into someone’s mind is to be first.
CHOICE OF AIRLINES IC S2 9W – Indian Airlines – Jet Airways – Sahara Airlines 43 .
EFFECT OF ADVERTISEMENTS 60 50 40 30 20 10 0 Indian Airlines Jet Airways Sahara Airlines 51 27 22 DOMESTIC AIRLINES 44 .
This depicts that the effect of advertisement of is directly proportional to the uses to the airlines. This shows that people who are aware of the airline are not just verbally aware but also prefer to travel by that airline. As regards Jet Airways people are moderately aware of it and also travel by it.This shows that people are generally aware of Indian Airlines (as compared to Sahara and Jet and actually travel by it also). Most liked feature of the advertisement is the message. Hence the question arises that how IA position itself? 45 . Similarly in Sahara Airlines the feature most preferred is the media. The most preferred feature of the advertisement happens to be presentation for Indian Airlines. Besides the high percentage of Indian Airlines travelers can be attributed to the fact that for the government officials it is mandatory to travel by IA.
PROMOTIONAL SCHEMESPromotional decisions are those related to communicating and selling to potential consumers. The two types of fares are as follows: 1) USD FARE- A. USD fare is applicable for all sales made abroad for domestic travel within India. While coming out with the promotional schemes it is worthwhile to note the profile of customers served. With the implementation of promotional fares the motive is to increase the number of airline loyal passengers and of course revenue. USD fare is also applicable for all sales made in India for domestic travel within India for following categories of 46 . Indian Airlines follows dual fare policy for its domestic service. PROMOTIONAL FARESDifferent types of promotional fares are introduced to attract more and more passengers to travel in specific airlines to promote sales.Positioning of a service can be done either through promotional schemes or through the level of service provided. B.
47 . India. 2) INR FAREINR fare is applicable for all sales in India for domestic transportation wholly within India for the following category of PAX: A. Bhutanese. iii. Unless and until specified otherwise. Nepal. Foreign national studying in India and holding a resident permit. Tibetan refugees residing in India. B. Foreign nationals studying in India and who are otherwise eligible for student discount under IA rules. Nepal and Bhutan. Indian nationals permanently residing in India. ii. USD fare is applicable for all sales made worldwide including India for domestic travel within India against the following documents: i. Indian nationals residing permanently outside India. C. Foreign nationals. C. Sale against document of interlines patrons. Sale against IA international MCOs/PTAs.passengers: i. ii. D. Sale against international credit cards and UATP card.
RESERVATION The Computerized Reservation System at Delhi, a state-of-the-art Computer Main Frame, is accessible to all major computerized reservation systems of the world. This enables the valued IA passengers to make reservation on any Indian Airlines flight for any sector all over the network from a single location in its booking office at any station. Besides, there are nearly 2000 approved travel agents all over India at the service of our passengers.
Passengers can also make the reservation over telephone on time limit basis and purchase the tickets before the expiry of the indicated time limit.
While making the reservation the passengers need to indicate all there contact numbers, including their residence, business and mobile numbers, where they can be contacted at all points of their itinerary. This helps IA to inform the passengers wherever they are in case of any schedule change or delay to their flight.
Passengers also need to give their meal preference at the time of making reservations. Also special assistance is offered to the passengers who require special handling over and above the normal attention, like the disabled, those on wheel chair, stretcher or unaccompanied minors. Such requests for special attention may be made to the airline’s office while making reservations.
FARES IA domestic fares are quoted both in Indian Rupees (INR) as well as US Dollars (USD). The INR fare consists of basic fare and two governmental levied taxes, namely Inland Air Travel Tax (IATT) and Passenger Service Fee (PSF). The INR fare is applicable to resident Indians only while the dollar fare is applicable to foreign nationals and non-resident Indians.
Besides, there are some special fares and discounts for senior citizens, students, the armed forces personnel, war disabled persons and many others. Details of all concessions and special fares are available at all Indian Airlines booking offices and travel agents.
CANCELLATION CHARGES To allow flexibility to our passengers in their travel plan, we do not levy any cancellation charge provided the cancellation is effected at least one hour before the scheduled departure. Rebooking and Refund charges may be applicable on a few specified routes during peak season to avoid fictitious booking and help availability of seats to bona fide passengers.
Although there are no cancellation charges, ‘No-Show’ charges are applicable if a confirmed reservation is not cancelled at least one hour prior to departure. No refund except IATT/PSF is permissible on a ‘No-Show’ ticket. Passengers can effect cancellation on phone or fax to our main booking offices and present the ticket physically for cancellation within Twenty-four hours. Refund Administration Fee is levied while affecting the refund for unutilized tickets. The details can be obtained from the Indian Airlines offices and travel agents. Passengers must keep their tickets in safe custody, as no refund is permissible against lost tickets. However, for international travel
The promotional fares on which I had worked are as follows: Promotional One -Way Fare (POW) .Promotional one-way-fare is for travel introduced in one-way on a specific sector.where passport control is possible. DIFFERENT TYPES OF PROMOTIONAL FARESDifferent types of promotional fares are introduced to attract more and more customers to travel in a specific airline. Eg: .Delhi-Mumbai sector. International tickets are valid for one year from the date of travel on the first leg of journey. Validity of tickets issued on concessional and special fares may be different as governed by the rules applicable to that particular concession. VALIDITY OF TICKETSIA domestic tickets. duplicate tickets can be issued after completion of certain formalities. are valid for one year from the date of issue. issued on normal fare. Following table shows the number of passengers that traveled in POW promotional fare scheme out of the total number of passengers in the year 2003-2004 (April 2003–March 2004) in few sectors: 51 .
Eg: . Round Trip Promotional Fare/Return Fare (RTP) – Round trip promotional fare is for travel to & fro on a specific sector. Eg: .Delhi-Mumbai-Delhi sector. Following table shows the number of passengers that traveled in FS promotional fare scheme out of the total number of passengers in the year 2003-2004 (April 2003–March 2004) in few sectors: 52 . Following table shows the number of passengers that traveled in RTP promotional fare scheme out of the total number of passengers in the year 2003-2004 (April 2003–March 2004) in few sectors: Flight Specific Fare (FS) – Flight specific fare is introduced on that particular flight only.The Flight Specific Fare on IC-801.
Therefore. Marketing strategy of a company is indeed a closely guarded secret especially in the face of stiff competition as in the case of the airlines sector in India. etc. a larger sample size could not be chosen. 53 .LIMITATIONS OF THE STUDY Due to constraint of time. to extract information on the marketing strategy was a difficult task. Minor errors may have been introduced due to fatigue. The respondents may not have divulged their true feelings.
Personnel need to be more humane.SUGGESTION BY THE PASSENGERS Fare charges should be same for foreigners as for Indians. The present plastic tags are very easy to tamper with. Debit/Credit cards should be accepted for reservation. Check-in time should be reduced. Security checks need improvement. There should be more transparency (clarity) in the announcement of the flights. Easy information should be available to passengers regarding transit baggage. More decent. polite and cheerful staff. The baggage tags should have a solid glue system. 54 . To open separate counters for single baggage and last minute departure.
Dedicated counters should be made to handle last minute reservation. These ticket counters are to be maintained at the expense of Indian Airlines. Non-availability of help lines has been the most common complaint of agents and passengers. So Indian Airlines should emphasis on providing more efficient services both on the ground and in the air as done by Jet Airways to a large extent.RECOMMENDATION/SUGGESTION The research study and the analysis of various aspects tapped lead to the following recommendation: 141 should be outsourced to a call center to deal with the enquiries. preferably for reservations being done on the day of the flight. IVRS should be provided for the agents/passengers waiting for their call to be attended by the operator. Ticket counters can be placed at major corporate houses which have a substantial amount of travel budget: wherein all the information about the schemes is available. Some of the government organizations have successfully done outsourcing help lines. With the oncoming of the Private Airlines on the country the customer awareness and aspiration of quality of service has been enhanced considerably. 55 .
Executive class bonanza scheme should be started again. There should be internal and external audits to look in to the working of various departments. Flexibility in Smart Apex fare scheme should be increased. An incentive scheme should be launched for the people at the front desk of the agency such as the ticketing agents. Apex-7 and Apex-21 fare (scheme) should be continued on account of its popularity. 56 . This will also help in checking false ticketing. All the promotional schemes and services should be extensively advertised to bring awareness to make itself better known to the potential customers. corporate presentations and through road shows. Scheme like Smart Apex fare scheme for business class passengers can be introduced. The points would automatically credited to their account. The ticketing agents should be provided with a unique identity number that they would have to quote on the tickets. On the accumulation of certain number of points they will be given FOC’s. They should be advertised through e-mails.
Tele reservation and computerized check-in procedure should be made mandatory. Indian Airlines can introduce late bird/night bird flights between metros. Wherever there is likely to be long cues more counters should be opened. 57 . Indian Airlines as introduced by Sahara Airlines should adopt the facility of valet services and it should be extended to all classes. The check-in time should be minimal. and Kolkata as these sectors account for high Pax load. Delhi. Indian Airlines should schedule more number of flights to and from stations like Mumbai. Holiday packages should be sold only through Indian Airlines booking offices and not through agents. smooth and as flawless as possible as most of the respondent are not happy with the present ticketing procedure. Chennai. The process of ticketing and cancellation should be made more easy. as there is every chance of the agents offering parallel deals to the customers.
The flight of Alliance Air should be made more attractive that can be in the form of a booklet as it is of the Jet Airways. Alliance Air is required to add up more and more places. Indian Airlines should acquire (induct) new aircraft to upgrade product quality in order to build brand image and retain passengers. 58 . Delayed flight. Alliance Air authorities should be made in easy approach to the passengers for the grievance handling and complaints. It is necessary for Alliance Air that it should reconcile the sectors and the frequency at which it is operating so that it could reduce costs and earn more profit. which have the status of tourist places. AASL should be given more autonomy so that it could conduct some of the activities related to marketing at its own to add up innovative schemes and generate in revenues. should be attended to as top priority because the main clientage is business men and they are time bound. which is a very painful experience for the travelers.
Flight status should be made available through SMS. should be introduced to lure the passengers. in-fight mail order shopping etc. Service innovations like automated flight schedules. Indian Airlines needs to undertake aggressive marketing. over the phones. 59 . Alliance Air should consolidate its market share by further improving its service standards and adding more routes to its network Indian Airlines should undertake customer satisfaction surveys. International desk of Indian Airlines should be made more accessible. IA should make provisions to add up more financial benefits for its passengers. provision for customizing meals.
With the oncoming of Jet Airways and Sahara Airlines there is sea change in the quality of service and the pride of the job. As regards Jet Airways people are moderately aware of it and also travel by it. Previously in the monopolistic environment of Indian Airlines the quality and the desire to win over the constraints was totally dismal. Hence today it is a matter of great significance that the Indian Airlines staff now cares about the passenger comfort and take pains to see that the flight is on time.CONCLUSION The healthily competition of domestic airlines has set new trends in the quality of service. 60 . Indian Airlines so should try the high percentage 98% of on time service of Sahara Airlines is the hallmark of their quality of service. Most liked feature of the advertisement is the message. Similarly in Sahara Airlines the feature most preferred is the media. The most preferred feature of the advertisement happens to be presentation for Indian Airlines. Advertisement has brought awareness among the people regarding Indian Airlines (as compared to Sahara and Jet and actually travel by it also).
61 . This depicts that the effect of advertisement of is directly proportional to the uses to the airlines. Besides the high percentage of Indian Airlines travelers can be attributed to the fact that for the government officials it is mandatory to travel by IA. Customer grievance and prompt redressal should also be rated as top priority as this will not only provide the necessary input and the feedback but also would go a long way in improving the image of Indian Airlines.This shows that people who are aware of the airline are not just verbally aware but also prefer to travel by that airline.
airliners.indian-airlines.indiatimes.com www.in www.airsahara.indian-airlines.airsahara.indianairlines.BIBLIOGRAPHY/REFERENCES www.jetairways.com www.net www.indianairlines.com www.com www.nic.com www. ex e .com www.net 63 i .indianairlines.
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