Comparative Analysis of Factors Affecting Popularity of Leading Airlines in India
[pic] COMPARATIVE ANALYSIS OF FACTORS AFFECTING POPULARITY OF LEADING AIRLINES IN INDIA-KINGFISHER AND JET AIRWAYS [pic] SUBMITTED TO: SUBMITTED BY : Dr. Shalini Trivedi Group No : 2 Sr.Lecturer Leela Lakshmi (E-6) Department of Economics Vidhi Shah (E-20) Amity Business School Arun Prasath (E-32) Amity University Arpit Shukla (E-40) Lalit(E-53) Ankit Podder (E-54) Tamoshree Mondal (E-56)ACKNOWLEDGEMENT Acknowledgement is not only a ritual but also an expression of indebtedness to all those who helped in the completion of the project. We would like thank Amity Business School for giving us such an opportunity to learn this subject practically. We are thankful to Dr. Shalini Trivedi, under whom we got the golden opportunity to undertake this project.
The help, assistance and guidance that we received during the course of this project will be earnestly cherished in times to come.We would like to thank Dr. Shalini Trivedi, our faculty guide her keen interest in the project, extended timely help, cooperation, ideas and constructive criticism that helped us complete the project to the best of our ability in the available time frame. We would also like to thank Dr S K Laroiya for the valuable time and sharing of his knowledge and experience with us. We would also like to thank all our respondents for their response and support. abstractThe research report titled “A comparative analysis of factors affecting popularity of leading airlines in India – Kingfisher and Jet Airways”.
We Will Write a Custom Essay Specifically
For You For Only $13.90/page!
The research focuses on all the factors affecting popularity of the airlines. Airlines under study <> The objective of the study is to know the services provided by these airlines and its impact on the popularity of the airlines. To achieve the objective the study entailed a survey of 76 respondents based on simple random sampling.The survey was carried out in different locations of Delhi and NCR. The questionnaire was based on set of parameters such as Brand Value of airlines, price, and services provided by airlines, Promotion and advertisements and overall customer satisfactions which help to gather the consumers view point on popularity of a particular airline. The result of the survey was than analyzed with the help of SPSS Software through graphical and tabulation method.
The overall result indicate that Direct flights, availability of tickets and price are the major factors to choose the particular airlines Services provided by the airlines have a direct impact on overall customer satisfaction of the customers. Promotional strategies doesn’t play any significant role in popularity to other factors. In terms of overall popularity Kingfisher has an edge over Jet Airways, though Jet is a tough competition for Kingfisher. Table of content Acknowledgement • Abstract • Introduction Background of Study Problem Statement • Literature Review • Industry overview • Objective • Identification and Operationalization of Variables • Model of Project • Research Methodology • Data Analysis and Findings • Conclusion • Recommendation • Bibliography Introduction Background Study: From the onset of economic downturn one of the aspiring sector of Indian economy has emerge into the picture—the aviation industry of India .The recent increase in ATF , strike of the pilots in Jet Airways, sudden pink slip of the flight attendant in Jet, vast exposure of Vijay Malya’s Kingfisher in IPL shifted the focus towards the airlines industry which due these factors emerged as one of the leading players in the Indian economy creating employment for a large amount of population, Also the services that were being provided earlier in these airlines have undergone a major makeover in order to remain the competition during this crisis phase.As this sector was operating and also creating a significant share in GDP ,India at present has twelve competing airlines in the domestic market as against a single government owned airline . According to McKinsey Quarterly(2005) the Indian aircraft market is the world’s second largest commercial aircraft market.
On-time performance and service levels have risen dramatically and fares have dropped still though only a small percentage of India’s population travels by air partly due to the high costs of domestic flying.According to the Center for Asia Pacific Aviation(CAPA) consultancy, new players will help domestic passenger numbers. The players in the current airline market include airlines like Air Deccan with low-cost, low-fare and no frills along with airlines like Kingfisher, which offers some frills, and premium airline like Jet Airways. Competition has brought in some price advantages to travellers and has converted many railway passengers to airline travellers.The recent articles in newspapers and internet as well as television news draw our attention which lead to the topic that has been chosen for the research .
We chose this particular topic in order to explore more about this sector under which the how the private labels are operating and also the relative position of the players in this field . This research examines customer popularity among travellers of major domestic airlines at private brands in India. The objective of this study is to understand the levels of popularity of the two major airlines viz.Jet Airways, and Kingfisher.
Problem Statement : From the above background study we defined a problem statement been formulated : A comparative analysis of factors affecting popularity of leading airline companies in India – Kingfisher and Jet LITERATURE REVIEW Branding, Air miles and Economic downturn http://www. promisecorp. com/blog/? p=195 The current climate has led us to re-evaluate the way we feel about money and affordability, savings and the world we live in.
We have always been told to ‘save for a rainy day’, but today it’s raining and the savings have also dried up!At times like these, we find it harder to trust and be loyal to the brands we love. Brand loyalty is certainly not unconditional, and it can be argued that it never really has been. Loyalty can be seen as a contract between two parties and it is based on reciprocity and mutual benefit. If either party breaks the contract, then the loyalty ‘deal’ is off. For customers that are loyal, the least they expect is to be rewarded by tangible benefits and preferential treatment. On the other hand, Brand loyalty for companies means repeat business and greater revenues.
These are the two sides of the finely balanced loyalty equation. The airlines industry got it right by awarding points to the individuals rather than companies who pay for the tickets, the has effectively incentivezed individuals to influence corporate buying decisions. This has helped to make frequently flyer milestone of the biggest benefits of recruitment business travel. Some airlines allow miles to be transferred to families and friends to holidays. In these examples, air miles have emotional value as well.These are the reasons why business travelers tend to be preferential towards one airline over another, as they get the utility of frequent flyer miles with limited personal investment. However leisure travelers tend to priorities finding the best deal above brand-led preferences ,but they will still opt for their preferred brand if the price is matched, Frequent flyer miles should not be viewed in isolation as they from oat of a whole program that offers access to more luxurious, Comfortable and exclusive travel through such things as airport lounges and fast track check –in.This is the apparitional element of loyalty programs that cannot be bought and they offer real benefits to the individual traveler.
As such ,Frequent flyer miles alone tend not to drive loyalty as powerfully as they potentially could. often we as customers have felt cheated by the industry as our loyalty has gone unrewarded. Many of you will recall those disappointing moments where we have tireless collected our air miles but have been unable to redeem them at the dates we want ,or found out that we must bear those unexpected costs, discovered no upgrades were available ,or that we could not go to the holiday destination we want!.The Key to building influence in the airline industry Paul S. Ross,Global brand Director,DDB France http://www.
ddb. com/pdf/yellowpapers/DDB_YP_AirlineBranding_Feb09. pdf Building brand value and influences in the airline industry means constructing communities around the product, the service and the experiences that lead to a strong, trusted relationship. This includes community –centric sports sponsorships such as emirates involvement with the McLaren formula 1 team, But also includes much more creative and often less expensive methods to further shared interest and drive innovation.In a time economic uncertainty ,airlines brands need to connect with both leisure and business travelers. In difficult economic times, people are looking hard for value in everything they purchase. Airlines must focus on the brand experience, because in today’s environment customers will choose the carriers that provides the best overall value .
By focusing on the brand experience, not only will airlines retain existing customers, but they will also attract others disgruntled with the competition. And overall, the hedges, against the potential of a consumer making purchase decisions on price only.Influence provides a shared languages for all disciplines. Instead works backward, This is the ultimate form of integration, because it begins from channel –neutral postions. Four principle of building influence The challenge of the digital world have demanded a new approach and it allows us to use a powerful set of strategic tools to determine the most successful focus for our brands in every channel, Strong brands believe in something –and have built brand communicates with influence among their members and their members and those members who in turn influence others.
We need to leverage these insights by using their principles of conviction, collaboration and creativity. Kingfisher, Jet Airfare Up By Rs. 200 Following an increase in fuel surcharges, Kingfisher and Jet Airways upped their domestic fares as much as Rs. 200.
The increase in fuel surcharge also applies to Jet Airways’ subsidiary carriers JetLite and Jet Konnect. As is the case with Jet Airways, the surcharge may not exceed more than Rs. 200.
The increase applies to fuel surcharges for flights below 1000km. Currently, carriers levy fuel surcharge of Rs. 1,950 and Rs. ,700 up to and beyond 1000km respectively. The hike comes after three fortnights of reduction in jet fuel prices followed by the recent increase of 9 percent on the 31st of October by state owned oil forms. Fuel expenditure constitutes about 35 percent of an airline’s operation costs.
Indigo And Spicejet To Add Ancillary http://www. india-server. com/news/indigo-and-spicejet-to-add-ancillary-22381. html IndiGo and SpiceJet airlines are tightening their seat belts to give difficult time to their competitors. Both the airlines are planning to reinvent their company policy.Inspired by the Europe’s largest low-cost airline, Ryanair, IndiGo and SpiceJet has decided to increase their revenue by providing more facilities to its customers such as giving more choices in in-flight food and flexible ticket booking. This move is said to be beneficial for the air carriers.
By adding ancillary the air carriers will be able to keep their fares low and thus attracting more passengers. As per the reports, the domestic low-cost carriers are generating only 5-6% revenue from their ancillary sources as against a global benchmark of 20%.But, now the airlines are focusing on larger share from non-ticket sales by offering more paid services. Samyukta Sridharan, the SpiceJet chief commercial officer said, “We will re-start merchandise sale on board at right time. We are working on various models whether it should be on-line or catalogue-based.
” IndiGo is also planning to add more food options and beverages onboard. It has also implemented schemes for its corporate travellers where they can avail flexibility in booking, cancellation and rescheduling of flights on the lines of full-fare carriers.A senior official of the airline quoted, “Before recession hit the industry in 2008, we were attempting to add ancillary streams for revenue. But a sharp increase in jet fuel coupled with low demand forced us to focus on ticket sales. Now that corporate houses are increasing their travel budget, we would target more earning from non-ticket sales. ” Kapil Kaul, India head of global consulting firm Centre for Asia Pacific (CAPA) said, “The low-cost airlines’ game has always been to constantly drive low fare.
The services they add are addition of new revenue opportunities.When ancillary sources contribute significantly to the airlines’ total revenue they dictate the pricing. ” But, some people find that it is not going to make any difference. “There is no tussle between full-fare and low-cost airlines. The carriers are reacting to an economic environment where people are willing to fly but not ready to pay exorbitant fares,” Dinesh Keskar, the Boeing India President said. Lowest Jet Airways Can Now Available Via SMS http://www.
india-server. com/news/lowest-jet-airways-can-now-available-15737. tml Private carrier Jet Airways has rolled out a new service on Wednesday which will enable the passenger to get information regarding the lowest fares of the air carrier by sending a SMS from mobile phones. The SMS needs to be sent in the “LFS origin-destination-date” format to 56388 (for instance, LFS BOM DEL 25/11). “This initiative, the first of its kind in the domestic civil aviation industry, is designed to seamlessly offer guests information on the lowest possible fares at that moment,” said Jet’s chief commercial officer Sudheer Raghavan. We are confident that it will be popular with our travellers, and encourage more people to book online at jetairways. com,” Raghavan added.
Jet Airways Mumbai – Kathmandu Flight Service From December Last Updated: 2009-11-10T10:06:35+05:30 India’s private airline Jet Airways has mentioned that it will be launching its new daily service on Mumbai – Kathmandu route from December. The air carrier currently provides two services to Kathmandu from New Delhi – one is a daily flight and another six-times from a week The new service will be launched on a state-of-the-art Boeing 737 aircraft on December 2.The frequency of Delhi-Kathmandu service will be made daily from Nov 17.
Jet Airways will be providing new services on Mumbai-Kolkata sector from November 11. Fly away’- HT MaRS Consumer Satisfaction Survey Hindustan Times, new Delhi, Wednesday,December 23 2009 Synopsis This was a survey undertaken by Hindustan Times and MaRS Monitoring & Research Pvt. Ltd. to find out best airlines in terms of overall consumer satisfaction. A survey was conducted in n0 cities across india with a sample size of n330. The study considered ten factors affecting consumer satisfaction.
Those are Flying Experience Flying boarding Check in process Arrival services In cabin experience Cabin crew Approach to customer Airport baggage services among these the factor significantly affect the popularity and consumer and flying experience ,arrival services, in cabin experience & approach to the customer. The airlines that were considered in this study were Kingfisher,Jet Airways ,Spice Jet ,Indigo. GoAir, Air India ,Jet Lite & Kingfisher red. Among these Kingfisher scored highest in every parameter except in flight reading & not in at par with Jet in terms of cabin crew.Majority of the customer preferred kingfisher because of its in flight services. Jet Airways secures the 2nd position scoring more than kingfisher in Delhi & Mumbai the two main markets of india.
Among the ten cities that were surveyed Jet scored higher than Kingfisher in 4. Jet Airways is considered to be brand popular among business class, whereas kingfisher’s success lies in successful emotional bonding with the customer. In this survey the most experienced player Air India secured the last position Gap Areas Though this research has provided a thorough insight of Indian Airline ndustry in terms of consumer satisfaction it still has not considered two important factors affecting popularity : Brand value Price The two variables leads to determination of two different segment of consumer ,one which is price sensitive and other that is brand conscious . In case of Indian consumer price plays a significant role in making decision choices of airlines which we didn’t considered in this study .
Brand value or image is an important factor in determining the market share which is also not been considered in this study .Apart from these two promotional and advertising also plays an important role which needed to be taken into considered to get a vast idea of what affects the popularity of a particular airline service. INDUSTRY OVERVIEW Man watched and envied the freedom of the birds in the earliest days is the history of mankind and civilization. This envy gave birth to emulation-to-escape into the long desired realms of power and ultimate exhilaration.
As a result the initial attempts of flying were imitations with flapping wings. These of course did not work except in the forms of small models powered by elastic or compressed air.The first true airplane in history was the result of the wonderful work of the ,It was built in 1804. In the second half of the problems of flight were tackled increasingly by trained scientific minds rather than by ingenious and adventures. At last the race for victory was won by the two young.
On dec 17,1903,The worlds first powered, controlled and sustained flights were made by Orville on ‘flyer I’. The Wright brothers had made history and the plane was reality, The successful flying machine has had a more dramatic effort on the lives of the modern day citizens than perhaps any other 20th century invention.Though its birth was a long and a difficult one, but once it became a reality and an accepted means of public transport, its social impact was and is still being felt. A GLIMPSE OF THE INDIAN (DOMESTIC) AVIATION INDUSTRY Though the open sky policy was announced 15years back, for all practical purposes 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 After reporting a Rs. 11 crore profit in 1988-89,Indian Airlines, suddenly saw its market share drop and its supremacy challenged.Pilots left the airline in hoarders to more lucrative jobs with private operator, Which resulted in under utilization of its Boeing fleet.
Passengers,too suddenly realized that there were airlines willing to offer the 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. The growing disenchantment with services of IA and the frequent agitation by its employers prompted the decision-markers to usher in private airline taxi operatire .Nineteen others got no objectives certificates. By 1993,there were 12 operators in the market ,By their market share in domestic traffiuce was negligible. Come 1996,there were seven players who were operating with a scheduled airlines license while 22 others were flying as non-scheduled or ATO. The schedules airlines included East west Airlines,Modi-luft,Damania,Jet Airways,NEPC and Archane. Companies Such Jet Airways grew slowly and not only outlived competition,But established itself as the largest private sector player.
While the market share of private operators soared to 41% from 1993 to 1996,the intial euphoria died out in 1994 when Air corporation Act of 1953 was repeled and it became obligatory for ATO with three or more aircraft to became mandatory for scheduled airlines and operate according to certain guidelines. It became mandatory for scheduled airlines to fly at least 10% of capacity to the far flung uneconomical areas such as north-east ,J & K and 50% to non-trunk stations.With this came the realization that a lot of overheads associated with flying were involved and higher utilization of the leased aircraft and better route planning was essential to survive But,Even before the guidelines were issued in 1994 ,damanian,Which had created a pressure and was purchased by NPEC in 1993. It was followed by UB Air and Raj Air. By the first quarter of 1997 ,three more airlines suspended their operations due to non-availability of aircraft –East west in May 1996,Modiluft in November 1996,and NEPC in March 1997.
Jet Airways The mission of jet airways is to be india’s “world class domestic airline” . o that when people fly with jet ,they can be sure that they will receive the finest service from the time they book their ticket to the time they leave the airport. Jet Airways operates over 345 flights daily to 44 destinations across the country. The rapid expansion of jet’s route network has earned us the prestigious air transport world award for market development . Jet Airways also pride themselves in having the youngest fleet of aircraft in india, consisting of the modern 737-4 Jet airways strive to provide service of the highest standard to jet’s customers, both on ground and n- flight.Jet Airways pride themselves on having an unbeatable record of on –time flights and providing world-class frequent flyers benefits to jet customer through Jet’s alliances with British Airways ,KLM Royal Dutch Airlines and north Jet Airways.
Jet Airways was the first Indian airline to receive the World Travel Market Global Award the World’s premier global travel event in London. Jet Airways have also won the H&FS Domestic Airline of the year Award twice . And citibank Diners club has chosen us as India’s best domestic airline for Jet’s excellence in service. Jet Airways fly peopleJet Airways that Jet Airways don’t fly aircraft ,Jet Airways don’t fly aircraft ,Jet Airways fly people. Where Jet Airways started On May 5 93 Jet Airways was set up with the objective of providing hiogh quality and reliable air travel in india. Jet ‘s focus from the very begining was to emerge as the “businessman’s Preferred Airline”. This led to product and service design that aimed at world class norm in professional service and efficency , begining with the choice of aircraft itself. Jet‘s operation began with a fleet of Jet’s modern generation boeing 737-300 aircraft.
Jet airways used the training facilities of Ansett(Australia) for the training and conversion of Jet’s pilots and engineers. To help it achieve world class norms in service Speedwing ( a british Airways subsidiary), assisted it in conducting a program on Customer Service Excellence for staff across function at all levels. To ensure accurate and efficient reservation systems Jet Airways tied up with and are co-hosted with SAbRE – one of the world’s best reservations systems. Within three months of operation one of the best reservatiopn systems.Within three months of operation, Jet Airways also became an associate member of IATA, a party to the IATA multilateral interlines agreement and a member of the IATA clearing house. Where Jet Airways is the biggest success story in the Indian aviation industry and one of the fastest growing airlines in the world. Jet Airways is widely recognised as “India’s best Domestic Airline”.
since commencement ,Jet Airways have also achieved the status of the largest private domestic airline in India. The figures speak for themselves –from nb destinations in n993-n994 to 39 destinationsin june 07; from b4 daily flights to over bn5 flights in june 0n.Jet Airways have carved out a market share of 40% (06-07) Alliances and Parteners Jet’s effort to provide Jet’s customer with a world class travelling experience extend to the partners. To offer the finest quality of service, Jet Airways have alliances with some of the best airline , hotels , cellular service providers and car rental services such as; ~ The park Hotel ~ The Oberoi Group ~ The leela Hotels and Resorts ~ Radisson Hotels & Resorts Worldwide. ~ ITC Hotels. ~ Citibank ~ AVIS ~ bPL Mobile. ~ British Airways ~KLM Royal Dutch Airlines.
JP Miles – JP Miles are earned as per the class booked and not as per class flown -Classes D (Redemption/Interline), E (Interline), R and X (Redemption) are not eligible for earning of JP Miles or Tier Points – Bookings in D and R classes against upgrade vouchers and JP Miles Upgrade will earn JP Miles as per the original booked class in Economy. – Against G class of travel; Bonus JP Miles on e-Services, upgrade vouchers and JP Miles Upgrade cannot be availed. Bonus JP Miles for e-Services: – 500 Bonus JP Miles when you book on jetairways.
com or through IVR, POS or Mobile ticketing – b50 Bonus JP Miles on utilizing the services of Web, Kiosk and SMS check-in. Benefits and Privileges at glance |Blue |Blue Plus |Silver |Gold |Platinum | |Tier bonus | | |10% |20% |30% | |Tele check-in* | |[pic] |[pic] |[pic] |[pic] | |250 Bonus JPMiles on web/kiosk/SMS check-in |[pic] |[pic] |[pic] |[pic] |[pic] | |500 Bonus JPMiles on eTicketing at jetairways. om, mobile ticketing, |[pic] |[pic] |[pic] |[pic] |[pic] | |IVR & POS | | | | | | |Jet Privilege account updates through SMS |[pic] |[pic] |[pic] |[pic] |[pic] | |Additional baggage allowance | | |10 kgs |15 kgs |20 kgs | |Additional baggage allowance to / fro USA / Canada | | |1 piece |1 piece |1 piece | | | | |23 kgs |23 kgs |23 kgs | |Priority tagging of luggage | | | |[pic] |[pic] | |Lounge access at domestic airports in India** (Not available on Jet | | |[pic] |[pic] |[pic] | |Airways Konnect, identifiable under flight no. series 9W 2000 to 2999)| | | |+ 1 guest |+ 1 guest | |Lounge access at international terminals## | | | |[pic] |[pic] | |Check-in at Premiere ounters | | |[pic] |[pic] |[pic] | |Upgrade vouchers | | |1 |3 |5 | |Priority stand-by at airport | | |[pic] |[pic] |[pic] | |Guaranteed reservations up to 24 hours prior to departure on full-fare| | | |[pic] |[pic] | |Economy booking on domestic Jet Airways flights | | | | | | |Cancellation fees waived on published fares on domestic Jet Airways | | | | |[pic] | |flights | | | | | | |Waiver of Jet Airways Citibank Platinum Credit Card annual fee# | | | | |[pic] | |Tier Baggage Tags | | |2 |2 |2 | | | | | | | | Exclusive benefits of Jet Airways ? Jet Airways will accept Power Driven Wheel Chairs, assistive devices or other mobility equipment as checked baggage from passengers with mobility disability who are dependant on the equipment with effect from January 30, 2008. The wheel chair, assistive device or mobility equipment will be carried free of charge. Power Driven Wheel Chairs and assistive devices will have a battery which could be a dry battery or a wet (spillable) battery.
? 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, we also have other surprises for them. Also there is a special Child Meal for kids. Please ensure you specify the age of your children when booking their seat and incase the booking is made through your travel agent, make sure the agent submits a Child Meal request (Code: CHML) while booking your child’s ticket.
? Jet Airways carries unaccompanied minors on domestic sectors as well as international sectors. For our domestic sectors: A child between the ages of 5 years through 12 years travelling alone or travelling with one or more guests who have not yet completed 18 years is considered an Unaccompanied Minor (UM) for domestic travel where the entire travel is on Jet Airways.For our international sectors: A child between the ages of 6 years through 12 years travelling alone or travelling with one or more guests who have not yet completed 18 years is considered an Unaccompanied Minor (UM) for international travel where the entire travel is on Jet Airways. Jet Airways will accept unaccompanied minors with an itinerary involving connecting flights on other airlines subject to the acceptance policies of all the other airlines participating in the journey. When an unaccompanied minor is entrusted to us for travel, no effort is spared in providing special attention to him or her. This should give confidence to parents / guardians regarding our ability to look after their children whilst travelling with us. The child is escorted to the aircraft and handed over to the In-Flight Executive (IFE).
On arrival at the destination the arrival staff will receive the UM from the IFE.We ensure that an unaccompanied minor is never left alone at any point of time, as we are responsible for the child whilst with us. Unaccompanied Minors are seated near the galley so that crew can keep an eye on them. At the destination, the UM is handed over only to the person stated in the UM form. If necessary, proof of identity may be requested. kingfisher Airlines Kingfisher Airlines Limited is a major Indian airline based in Mumbai.
Kingfisher operates more than 400 flights a day and has a network of 80 destinations, with regional and long-haul international services.. Kingfisher Airlines, through one of its holding companies United Breweries Group, has a 50 percent stake in low-cost carrier Kingfisher Red.Kingfisher Airlines is one of six airlines in the world to have a five-star rating from Skytrax, along with Asiana Airlines, Malaysia Airlines, Qatar Airways, Singapore Airlines and Cathay Pacific Airways. In May b009, Kingfisher Airlines carried more than a million passengers, giving it the highest market share among airlines in India. Kingfisher has its registered office in the UB Tower in Bangalore and its head office in the Kingfisher House in Mumbai The airline started operations on 9 May b005, following the dry lease of four new Airbus A3b0-b00 aircraft.
Its first flight was from Mumbai to Delhi. At the launch of the airline, Dr. Mallya said that he is “committed to achieving our ambition of making Kingfisher Airlines India’s largest private airline both in capacity and market share by b0n0.
“Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems on every seat even on domestic flights. All passengers were given a “welcome kit” consisting goodies such as a pen, facial tissue and headphones to use with the IFE system. Initially, passengers were able to watch only recorded TV programming on the IFE system, but later an alliance was formed with Dish TV to provide live TV in-flight. And in a marked departure from tradition, Kingfisher Airlines decided to have an on-screen safety demonstration using the IFE system. On n4 July b008, Kingfisher unveiled its first ever Wide-body aircraft, a Airbus A330-b00 (registered VT-VJL) at the 46th Farnborough Air show held in July b008.Kingfisher’s first Airbus A330-b00 was widely billed (according to the airline’s press release) as the best A330-b00 ever built by Airbus.. Frequent flyers programme The Frequent-flyer program of Kingfisher Airlines is called the King Club in which members earn King Miles every time they fly with Kingfisher or its partner airlines, hotels, car rental, finance and lifestyle businesses.
There are four levels in the scheme: Red, Silver,Gold and Platinum levels. Members can redeem points for over a number of schemes. Platinum, Gold and Silver members enjoy access to the Kingfisher Lounge, priority check-in, excess baggage allowance, bonus miles, and 3 Kingfisher First upgrade vouchers for Gold membership. Platinum members get 5 upgrade vouchers. Benefits at a Glance Benefits |King Red |King Silver |King Gold |King Platinum | |Earn King Miles on Kingfisher Airlines and |Yes |Yes |Yes |Yes | |select partners | | | | | |Redeem King Miles on Kingfisher Airlines, |Yes |Yes |Yes |Yes | |select partners and Air Boutique ONLINE | | | | | |Earn King Miles for shopping at our in-flight |Yes |Yes |Yes |Yes | |Duty Free | | | | | |Permanent membership card |Yes |Yes |Yes |Yes | |Personalised baggage tags |1 |2 |2 |2 | |Lounge vouchers |- |- |1 domestic lounge |2 domestic lounge | | | | |voucher |vouchers | |Upgrade Vouchers |- |1 |3 |5 | |Priority check-in* |- |Yes |Yes |Yes | | | |(domestic airports | | | | | only) | | | |Excess baggage allowance (domestic + |- |10kg |20kg |20kg | |Europe/Asia) | | | | | |Excess baggage allowance (US/Canada/London#) |- |1 piece (23 kg) |1 piece (23 kg) |1 piece (23 kg) | |International lounge access* |- |- |Yes + 1** |Yes + 1 | |Domestic lounge access* (For travel on |- |Yes |Yes + 1 |Yes + 1 | |Kingfisher Class ) | | | | | |Domestic lounge access *(For travel on |- |- |Yes |Yes + 1 | |Kingfisher Red) | | | | | |Priority baggage assist |- |Yes |Yes |Yes | |Tier bonus |- |15% |25% |35% | |Guaranteed seat reservation**** |- |- |Yes |Yes | |(Up to 6 hours prior to departure on full fare | | | | | |economy class booking on Kingfisher Airlines). | | | | |Waiver on cancellation or re-booking charges |- |- |- |Yes | | | | | |(On revenue | | | | | |bookings***) | |Priority boarding |- |- |Yes |Yes | |Nominated travel coordinator |- |- |Yes |Yes | |Platinum Priority Assist |- |- |- Yes | |Non-expiry of King Miles**** |- |- |- |Yes | |Complimentary Companion Gold card |- |- |- |Yes | |50% discount on companion redemptions in |- |- |- |Yes | |Kingfisher First | | | | | |Web check-in |24 hours prior |24 hours prior |36 hours prior |48 hours prior | |Online ticketing/mobile ticketing bonus |500 King Miles |500 King Miles |500 King Miles |750 King Miles | |Web check-in bonus |250 King Miles |250 King Miles |250 King Miles |500 King Miles | |Online profile update bonus |500 King Miles |500 King Miles |500 King Miles |750 King Miles | OBJECTIVE The objective of the research was to : 1.
To compare the service quality of the airlines under study. 2. To find out the popularity of the airlines based on services provided 3. To draw comparison between the leading players based on popularity In order to obtain these information the research design technique that has been adopted is Descriptive Research . As the name itself suggests a descriptive study is conducted to describe something ___ usually market characteristics or function.
We have conducted this research to analyze the factors that affect the overall popularity of the various airlines companies that are operating inside India and as the leading players tried to draw a comparison between the various services provided by Kingfisher and Jet Airways and popularity among these two players. IDENTIFICATION AND OPERATIONALIZATION OF VARIABLES To conduct a descriptive research various articles , journals and research paper from internet has been searched and variables were searched that denote the services that various airlines provide and also which has an impact on the popularity of the airlines companies. The variables that are identified are as follows: Independent Variables : • Demographic Factors • Brand Value • Availability • Price • Services • Mode of booking ticket • Promotion And Advertisement Dependent Variable Popularity Independent VariablesDemographic Factors: Demography of the taken sample population has been taken and analyzed to know the inclination of the people towards a particular airline and also their perception regarding the services provided by those. In demography we have considered the following factors and a total 7 question were asked • Income Level • Purpose of traveling in air • Class (Economy, Business etc) • Accompany • Frequency of traveling (Last year) • No of Airlines Traveled Brand Value : Brand is the image of the product in the market. Some people distinguish the psychological aspect of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience.The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product or service.
Consumers may look on branding as an important value added aspect of products or services, as it often serves to denote a certain attractive quality or characteristic To analyze the brand value of airlines under study we asked questions related to • Preference • Association with Status • Comparative Brand Preference • Factors affecting choice of airlines • Individual question to measure these factors were asked which in turn imply an overall brand value of the airlines under study.Availability : In this variable we tried to measure how far the factor of availability of ticket are considered while buying a airline ticket. To measure this we formulated rating scale question where the following factors were asked to rank on scale of 1 to 5 in terms of preference while buying a ticket.
• Availability of tickets • Brand image • Price • Quality and Service • Safety and reliability Price : Price is considered to be one of the most important variable that affect the popularity of the airlines companies. To measure this variable we formulated a preference ranking of the airline companies under study. Service : In this variable we considered various service option that were provided by various airlines.The services that were found common among various airlines after reviewing the literatures were taken into consideration in order to judge them on the same parameters. Total 2 questions were asked The factors that were taken are as follows • Punctuality • Baggage Carriage • Baggage Delivery • Cabin and Crew Staff • Ground Staff • Check in process • Comfort • Food • In flight Entertainment (Magazines , shows etc) Mode of Booking Ticket : In this question we asked about the various modes from where tickets can be obtained .
The options were • Internet • Travel Agent • Airlines Reservation Office • Online travel agent • All of the above • Others Promotion And Advertisement : In this variable we tried to analyze visibility of the airlines and the impact of promotion on popularity.To measure these one question measuring each factor is formulated , one measuring the visibility in terms of promotion and the other on a Likert scale measuring the perception regarding the promotional strategies. DEPENDENT VARIABLE POPULARITY : Popularity is considered to be dependent on the independent variables that were taken .
To measure this variable two question were formulated ,one measuring overall satisfaction on a likert scale and other measuring popularity rate on a ranking scale MODEL OF THE PROJECT [pic] In this model popularity is the dependent variable which are depending on all the variables that are radiating towards popularity. RESEARCH METHODOLOGY RESEARCH TECHNIQUE Research Design : The research design technique that has been adopted is Descriptive Research .As the name itself suggests a descriptive study is conducted to describe something ___ usually market characteristics or function.
We have conducted this research to analyze the factors that affect the overall popularity of the various airlines companies that are operating inside India and as the leading players tied to draw a comparison between the various services provided by Kingfisher and Jet Airways and popularity among these two players. Our descriptive design requires a clear specification of the who, what, when, where, why and way (the 6 W of the research) WHO Who should be our respondent – People who have traveled in Jet Airways and/or Kingfisher Airlines ion Delhi and NCR . WHATWhat information should be obtained from the respondents – • Various services provided by the airlines under study • Their perception regarding popularity of various airlines. WHEN When the information should be obtained from the respondent – During the waiting hours at airport lounge while booking tickets WHERE : Where the respondent should be contacted to obtain the required information – • Airline Reservation Office • Travel Agents Office • Airport ticket booking counter WHY Why are we obtaining the information from the respondent – To study the impact of the services provided on the popularity of the airline WAYIn what way are we going to obtain the information from the respondents – through designing a structured questionnaire METHOD OF RESEARCH : The survey method for obtaining information has been applied in this research for the purpose of structured data collection. The respondents were asked a variety of questions regarding the services and its availability as well and also their perception about the services that are being provided. A formal questionnaire is prepared and the questions are asked in a pre-arranged order. So this a also a direct process to gather the required information from the respondents. Sampling Universe Flyers of Kingfisher and/or Jet in Delhi and NCR Sample Frame We have obtained the data from the people of Delhi as well as NCR.
The target population was the people who have traveled in Kingfisher And/or Jet. Only the people who have traveled are taken into consideration. Sampling Technique The sample technique adopted was probability sampling under which simple random sampling has been done in order so that all sample could be analyzed with equal chance .
Sample Size Number of respondents – 76 Research Instruments; Primary Data: Structured questionnaire in order to collect first hand data from corporate travelers, professionals and students Secondary Data : Secondary data has been collected from the following sources Internet, Newspaper Business Magazines Sample Design :A sample design has been created on the basis of demographic factor – Occupation or profession in order to obtain the perspective of various groups |Occupation |Sample size | |Businessman |20 | |Students |25 | |Professionals |30 | |Retired |1 | |TOTAL |76 | Data Analysis and Findings Relationship between Income group of traveler and category of traveler. annual income * categorize yourself in terms of air travel – Cross tabulation | |Count | | | | categorize yourself in terms of air travel |Total | | | |Business traveler |Leisure/personal |Both | | | | |traveler | | • From the above table we can say that 22 travelers have categorized themselves as business traveler amongst 10 respondents are falling in the 5-10 lakh income group, while 9 are below 5 lakh income group. • most of the respondent travel for the leisure or personal travel which is 31 respondents, amongst which 13 respondents fall into the income group of 5-10 lakh annually. 23 respondents have categorized themselves as both business and leisure traveler. So, we can say that people who are falling in the 5-10 lakhs income group that is middle class people travel the most by air.
|annual income * categorize yourself in terms of air travel * class travel by air Crosstabulation | |Count | |class travel by air | categorize yourself in terms of air travel |Total | | |Business traveler |Leisure/personal |Both | | | |traveler | | | |Economic | | | | | | | | | |times traveled by air in the last year |Total | | | [pic] From the above chart we can analyze that from 76 people 58 has traveled by Kingfisher, 42 by Jet Airways, 20 and 26 by Indigo and Spice respectively and 15 in other airlines.Rate the following flights, in terms of your preference. |Rating the flight of your preferences-Kingfisher | | | | | | | |Frequency |Percent | |Valid |kingfisher |36 |47. 4 | | |Jet Airways |24 |31. 6 | | |Indigo |5 |6.
6 | | |Spice Jet |7 |9. 2 | | |Others |4 |5. 3 | | |Total |76 |100. 0 |Kingfisher is the airlines which most of the people have associated with their status as 36 out of 76 people choose kingfisher.
|In Emergency Which airline do you prefer? | | | |Frequency |Percent | |Valid |King fisher |39 |51. 3 | | |Jet Airways |21 |27. 6 | | |Indigo |7 |9. 2 | | |Spice Jet |6 |7. 9 | | |Others |3 |3. 9 | | |Total |76 |100. 0 | 39 out of 76 people has choose kingfisher, at time of emergency. According to respondent it is because good connectivity and the availability of the flight.
Reliability Statistics | |Cronbach’s Alpha |Cronbach’s Alpha |N of Items | | |Based on Standardized| | | |Items | | |. 345 |. 345 |2 | |Inter-Item Correlation Matrix | | |airline do you |In Emergency Which | | |associate with your |airline do you | | |status |prefer? | |airline do you associate with your |1.
000 |. 08 | |status | | | |In Emergency Which airline do you |. 208 |1. 000 | |prefer? | | | To check the reliability of the above two questions we have done reliability test of those questions. Which is positive, that means the data is reliable. |Factors make you to think about the above airlines? | | | |Frequency |Percent | |Valid |More frequency of flights |16 |21.
1 | | |Tickets are easily available |12 |15. 8 | | |Reasonable price |15 |19. | | |Direct flights are available |17 |22. 4 | | |Punctuality |8 |10. 5 | | |Brand Image |8 |10.
5 | | |Total |76 |100. 0 | [pic] These are the factors which affects the brand image of the airline. In which frequency and availability of the flight get the highest ranking.
So from this we can say that airline which provides easy availability of the flight at reasonable rate will be more successful AVAILABILITY OF TICKET Factors to be consider while booking the airline ticket. Statistics | | | | | |Count | | | |considering price as the prime factor, which airline do you prefer |Total | | | | | | | | | |Overallsatisfication-|sum_king | | | |Kingfisher | | |Overallsatisfication-Kingfisher |Pearson Correlation |1 |. 411** | | |Sig. (2-tailed) | |.
000 | | |N |74 |74 | |sum_king |Pearson Correlation |. 411** |1 | | |Sig. (2-tailed) |. 000 | | | |N |74 |75 | |**.
Correlation is significant at the 0. 01 level (2-tailed). | Here the correlation between overall satisfaction level and services provided by the Kingfisher airlines is 0. 411 which is positive.
So we can say that there is positive relationship between services and over all satisfaction. |Correlations between Services rating and Overall satisfaction of respondents – Jet Airways | | | |Overallsatisfication-|sum_jet | | | |Jet | | |Overallsatisfication-Jet |Pearson Correlation |1 |. 09 | | |Sig. (2-tailed) | |.
372 | | |N |72 |69 | |sum_jet |Pearson Correlation |. 109 |1 | | |Sig. (2-tailed) |. 372 | | | |N |69 |71 | Here also the correlation between overall satisfaction level and services provided by the Jet Airways airlines positive which is 0. 109.So we can say that there is positive relationship between services and over all satisfaction.
In-flight entertainment services |inflightjet_sum | | |Frequency |Percent |Valid Percent |Cumulative Percent | |Unsatisfactory |19 |25. 0 |26. 4 |26. 4 | |satisfactory |39 |51. 3 |54. 2 |80.
6 | |Good |10 |13. 2 |13. 9 |94. 4 | |execellent |4 |5. 3 |5. |100. 0 | |Total |72 |94.
7 |100. 0 | | |System |4 |5. 3 | | | [pic] From the frequency table it can be inferred that among 76 respondents 39 have rated the inflight entertainment of Jet as satisfactory that is 54% of the respondents taken |inflightkingfisher_sum | | | |Frequency |Percent |Valid Percent | [pic]The inflight entertainment is rated mostly on satisfactory , good and excellent, 36% have rated it as satisfactory , 27% as excellent and 21% as good By analyzing both the tables it can be said that in terms of inflight entertainment Kingfisher is more popular in comparison to Jet. Mode of Booking Ticket |How do you book your airline ticket? | | | | | | |N |Mean |Std.
Deviation |Std. Error Mean | |Do you agree that the promotions by |76 |3. 4868 |. 84053 |. 9642 | |the Airline companies often pursue | | | | | |you to travel by air? | | | | | |One-Sample Test | | |Test Value = 3 | [pic] From the above graph we can see that most of the respondent has give Promotion as the not important factor.
While Frequency of the flight, quality of the services provided by the airlines and overall customer satisfaction is the prime important things.So we can say that to be successful and popular it is necessary to pay attention on overall customer satisfaction at good price. CONCLUSION RECOMMENDATION FURTURE SCOPE OF STUDY 1) This project can also be used by Jet Airways and Kingfisher Airlines for further improvement. 2) Travel Agencies can also use this project to know the existing scenario among frequent fliers. 3) This study can be further carried on to the International Airline Industry as well.
4) This study can be further extended to other airlines like Spice Jet, Indian Airlines, etc. LIMITATION Bibiliography <> <> <> ———————– Promotion And Advertisement Mode of Booking Ticket Services Price Availability