Indian Airline Sector Analysis Essay

INDIAN AIRLINE SECTOR ANALYSIS Ever since the aviation sector opened up the skies to private carriers, air passenger travel in India has been expanding at about 25% a year. The Airline industry has experienced a drastic increase in number of passengers, driven by privatization of aviation industry and introduction of low cost carriers like Deccan Airlines, Go Air, and Spice Jet etc. It is said that Indian Aviation Industry is one of the fastest growing Aviation Industry in the entire globe. Due to economic growth and increasing link with global businesses, it has resulted in an increase in passenger traffic.

However, the current global economic slowdown and dramatic rise in aviation fuel prices continues to negatively impact the Aviation Industry across the whole globe. According to government estimates, growth in this sector will outpace the global average until 2025. The Indian aviation market is on a boom. The estimated growth of domestic passenger segment is at 51% per annum and growth for international passenger segment is 26%. The international cargo is likely to grow at a rate of 13%. Here we have taken following Airlines on Domestic Routes as a whole representing the industry to measure the Customer Satisfaction in Airlines Industry. Spice Jet is a low-cost airline. Their marketing theme “offering low ‘everyday spicy fares’ and great guest services to price conscious travelers”. Their aim is to compete with the Indian Railways passengers travelling in AC coaches. * Go Air The People‘s Airline, a low cost carrier promoted by The Wadia Group is a domestic budget airline based in Mumbai, India established in June 2004. It‘s a relatively small player as compared to other low cost airlines. * Kingfisher Airlines is an airline based in Bangalore, India. Services started on 9 May 2005, following the lease of 4 Airbus A320 aircraft.

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It initially operates only on domestic routes. The airline promises to suit the needs of air travellers and to provide reasonable air fares. Kingfisher are pushing for an amendment of the present Indian government rule which requires an airline to fly a minimum of five years on domestic routes before it can start flying overseas. * Indi Go Airlines is a new and a private domestic airline based in India. IndiGo placed an order for 100 Airbus A320 aircraft during the 2005 Paris Air Show. The total order was worth US $6 billion; one of the highest by any domestic carrier during the show.

The new low-fare carrier has started operations from August 4, 2006. SURVEY FINDINGS & ANALYSIS * The main objective of the study was to understand the perception and satisfaction criteria of the customer towards the specific airline out of the above stated airlines. * Sample size is of 100 samples * Following is the questionnaire and its analysis: QUESTIONNAIRE 1. What is your occupation? Businessman: 48 ,Professional: 7, Salaried: 36 Retired: 9, Others: 0 Out of the sample size of 100, 48% were businessmen, 7% were professionals, 36% were salaried and 9% were retired. . Are you Male or Female ? Male| Female| 67| 33| Out of the sample size of 100, 67% were Male and 33% were Female. 3. Are You Married or Unmarried ? Married| Unmarried| 56| 44| Out of the sample size of 100, 44 were Married and 56 were Unmarried. 4. What is your main purpose in taking this trip? Professional or Pleasure . Professional| Pleasure| 42| 58| Out of the sample size of 100, 58 Person said that the trip was for the Pleasure Purpose and 42 said that trip was for the professional purpose. 5.

Please rate the courtesy of Front Desk (Ticket Counter) Officer/Agent Worst Bad Not Good Not Bad Good Best Criteria| Spice Jet | Go Air| Kingfisher Airlines | Indi Go Airlines | Worst| 8| 18| 1| 22| Bad| 23| 14| 8| 23| Not Bad Not Good| 33| 23| 12| 24| Good| 28| 12| 34| 12| Best| 8| 33| 45| 19| In terms of courtesy, here Kingfisher Airlines stood in the criteria of Best and Good, Spice Jet stood in the category of Good and Not Bad-Not Good, Go Air and Indi Go Airlines stood in the criteria of Average. . Accuracy of Fare information( through various form of information) Accurate Non Accurate . Accurate| Non Accurate| 89| 11| The information obtained from various form of information e. g. newspaper, Agent, Website of the airlines, office of the airlines etc. plays important role in customer satisfaction. Some times the detail given from the above mentioned sources is not accurate which can cause dissatisfaction in the customer. Here 89% samples were agree on the point of accuracy, i. e. he information provided by the above sources is accurate and 11% said that the detail given by above sources is ambiguous. 7. Rank the following having accuracy in departure and arrival on time. Rank| Spice Jet | Go Air| Kingfisher Airlines | Indi Go Airlines | 1| 24| 22| 39| 15| 2| 29| 18| 33| 20| 3| 15| 28| 20| 37| 4| 19| 38| 17| 26| The above data states that Kingfisher airline stood first in terms of accuracy in departure and arrival of flight, the second airline in terms of accuracy comes Spice Jet, the Third is Indi Go Airlines and fourth is Go Air. . Please tell us that which Airline’s flight had fewer stops or better connections was in making your decision to choose that (Airline) flight. Spice Jet | Go Air| Kingfisher Airlines | Indi Go Airlines | 14| 29| 37| 20| The above data clearly shows that Kingfisher Airlines are the most preferred airline when it comes to make decision on the basis of flights having fewer stops or batter connection. The least preferred is Spice Jet in this category. 9. Please tell us that which Airline’s ground services are better (ticketing, baggage handling, check-in, etc. Spice Jet | Go Air| Kingfisher Airlines | Indi Go Airlines | 24| 19| 46| 11| In terms of Airline’s ground services Kingfisher Airline stood first and the least preferred was Indigo Airlines. 10. If you were particularly dissatisfied with any of (Airline’s) personnel at the airport you just departed, please indicate which personnel [ Tick the Name of the airline in given in table]  | Spice Jet | Go Air| Kingfisher Airlines | Indi Go Airlines | Ticket counter agent | 32| 28| 9| 31| Express baggage agent | 29| 32| 18| 21|

Security checkpoint personnel | 43| 23| 12| 22| receptionist | 23| 18| 19| 40| Boarding gate agent(s) | 46| 34| 13| 7| Flight attendant | 37| 35| 15| 13| Other| 39| 33| 13| 15| As per the above data Kingfisher Airline faces criticism of customer in baggage agent and receptionist, the highest criticism of the customer is faced by Spice jet in each and every category of personnel, Go Air needs to improve in the boarding gate agent and flight attendants and with Indi Go airlines customers having problem in front desk receptionist.

This data also states tat the performance of employee can be described best for the kingfisher Airlines and the worst one is Spice Jet. 11. Please give the ranking to the following airlines on the basis of ‘The Service Factor’ Rank| Spice Jet | Go Air| Kingfisher Airlines | Indi Go Airlines | 1| 12| 28| 43| 17| 2| 19| 22| 33| 26| 3| 29| 23| 23| 25| 4| 12| 23| 43| 22|

The most preferred in terms of service is the Kingfisher Airlines, the second one is Indi Go Airlines, the third one is Spice Jet Airlines, and the fourth one is Go Air. 12. Rank| Spice Jet | Go Air| Kingfisher Airlines | Indi Go Airlines | 1| 23| 18| 19| 40| 2| 29| 32| 18| 21| 3| 29| 23| 23| 25| 4| 12| 23| 43| 22| The most preferred airlines in terms of price factor is Indi Go Airlines, the second one is Go Air, the third one is Spice Jet Airlines and the fourth one is Kingfisher.

Though it is most preferred in terms of service, but in terms of Price of the tickets it is far behind than other low cost airlines. 13. On the basis of on board product, please rank the airline service. (On board Products: Seating Comfort, Cleanliness of Cabin, Cleanliness of Toilets, Newspaper service, Airline Magazine, Pillow, Blankets etc, and Onboard Catering etc. ) Rank| Spice Jet | Go Air| Kingfisher Airlines | Indi Go Airlines | 1| | | | | 2| | | | | 3| | | | | 4| | | | |


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