Lack of proper airport infrastructure

Poor infrastructure is of grave concern since its causing congestion to the already
existing players with new entrants it will be even harder to accommodate them. "Also
the availability of slot becomes limited due to this It increases the operational
expenses in the form of extra fuel usage when there is a delay in landing due to
unavailability of landing space.The low cost carriers have to bear the high airport
charges due to unavailability of secondary airport in India.

Fussy customer with ridiculous demands and unwillingness to pay are most of the
time leading to frustration to the staff regardless ground or 30,000 feet above the air.
Facing more than a million type of attitude day in day out will relentlessly demotivate
the staff to uphold their people skills and courtesy. It will also lead to them to
stereotype certain group of customers without even starting any conversation.
Although with and AllStar values embedded by the leader of Air Asia that focus on
employee welfares, due to the cost cutting operation regime, Air Asia prefers to hire
new birds as a cheaper option. This is due to the hectic work lifestyle; most of the
crew resigns due to fatigue. With an exhausted mental, no anthropomorphic could
handle situation out the norm. How it started There are three main factors that affect
the service quality – customer service of Air Asia; workload, working environment,
and technology.

Air Asia has a high traffic operation which leads to high workload which in long term
affects the employee’s physical, mental health, performance and productivity
including customer Improving customer service and people skills in Air Asia 11
service. The stress; strains the employee into illness leading to lack of motivation and
productivity that eventually injures the customer service image of Air Asia. Lack of
communication between management and employee is also highly related to have an
impact on customer service perceived by the customers. This is largely due to
conflict of interest and conflict of instruction received and perceived by the staff that
leads to a situation out of the standard, which ruins the reputation of the organization
due to poor customer service.
Policy rules: There are certain policy regulations that a company need to
abide by. This may result in barrier for new entrants as well.

As per the Civil Aviation requirement (CAR), every domestic scheduled

operators must have a minimum of 5 aircraft and equity of INR 200 million to
500 million. Thus, airline companies that could raise this much of equity could
only fly in india.The rule of 5/20 was another barrier to entrance for a new
player. As per this rule, Indian carrier that does have an experience of 5 years
and 20 aircraft fleet size could not operate on international route. Since, this
rule was applicable on Indian carrier only, hence it affected their
competitiveness.

FDI by international was restricted to 49 percent only. There was also

prohibition with respect to accessing technology and management know-how.
The route dispersal guideline was another barrier for new entrant as as per
this policy, every airline had to deploy a minimum percentage of their capacity
on profitable routes on the other route. Thus, deployment of aircraft on
unviable route will affect their profitability.

There exists a policy on shot allocation as well. Under this policy, an

incumbent airline, based on their utilization of the slot at atleast 80 percent of
the time in the preceding season was able to retain a group of prime slots at
airports on prime routes based on historic precedence. Thus, the entrant had
no access to such pre-allotted slots, nor they could access more than 50
percent of the pool of the available slots.