Indian Aviation Industry

TITLE PAGE NAME OF STUDENT: SRI BALLABH RATHI SEMESTER: 5 TH ROLL NUMBER: 180 SUPERVISOR: ANUPAM PURKAIT DATE DATE OF SUBBMISSION: 16.11.2016 TITLE: THE INDIAN AVIATION INDUSTRY.

TERM PAPER TO BE SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE TH E GRADUATE GRADUATE DEGREE BACHELOR OF BUSINESS ADMINISTRATION ADMINISTRATION  .D. BIRLA BIRLA INSTITUTE INSTITUTE AFFIILIATED AFFIILIATED TO ADAVPUR ADAVPUR UNIVERSITY  UNIVERSI TY 

SIGNATURE OF THE STUDENT THE SUPERVISOR

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SIGNATURE OF

DECLARATION I !"#$%&" '(" )*$$*+,-: T(" +*&! #*/-' ,-  T"& %"& ,3 4288 T(" %'"&,%$ #*-'%,-"! ,- '(" '"& %"& ,3 '(" "-! &"3/$' *)  *+- +*&.D/" %#-*+$"!""-' (%3 ""- ,7"- ,- '(" ,$,*&%( ,$,*&%( %-! &")"&"-#"3 '* %$$ 3*/&#"3 " '(" &,-'"! "$"#'&*-,# *& "&3*-%$. I % %+%&" '(%'  '"& %"& % " 3/,''"! '* % $%,%&,3 !"'"#',*- 3"&7,#" +("&" ,' +,$$ " 3'*&"! ,- % !%'%%3" %-! #*%&"! %%,-3' '(" +*& 3/,''"! )&* '(,3 ,-3','/'" *& )&* %- *'("& ,-3','/'". I- '(" "7"-' '(%' '("&" ,3 % (,( !"&"" *) 3,,$%&,' ,- #*-'"-' !"'"#'"! )/&'("& ,-7"3',%',*- % $"%! '* !,3#,$,-%& %#',*,-#$/!,- #%-#"$$%',*#%-#"$$%',*- *)  !"&"" %##*&!,- '* %!%7/& U-,7"&3,' &/$"3 %-! &"/$%',*-3. I !"#$%&" '(%' "'(,#%$ ,33/"3 (%7" ""- #*-3,!"&"! "7%$/%'"! %-! %&*&,%'"$ %!!&"33"! ,- '(,3 &"3"%&#(. I %&"" '* %- "-',&" "$"#'&*-,# #* *& 3"#',*-3 *) '(" !,3#/33,*- '* ",- $%#"! *- '(" "9$"%&-,- *&'%$ ,) !"""! %&*&,%'" '* %$$*+ )/'/&" 3'/!"-'3 '(" **&'/-,' '* 3"" "%$"3 *) '(" %3' !,33"&'%',*-3; !,33"&'%',*-3; %-! '* " %$" '* &,-' %-! !*+-$*%! #*,"3 ,) '(" 3* !"3,&".

SIGNED : S&, B%$$%( R%'(, DATE :16.11.2016 NAME : SRI BALLABH RATHI ROLL NO : 180 SUPERVISOR : ANUPAM PURKAIT

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DECLARATION I !"#$%&" '(" )*$$*+,-: T(" +*&! #*/-' ,-  T"& %"& ,3 4288 T(" %'"&,%$ #*-'%,-"! ,- '(" '"& %"& ,3 '(" "-! &"3/$' *)  *+- +*&.D/" %#-*+$"!""-' (%3 ""- ,7"- ,- '(" ,$,*&%( ,$,*&%( %-! &")"&"-#"3 '* %$$ 3*/&#"3 " '(" &,-'"! "$"#'&*-,# *& "&3*-%$. I % %+%&" '(%'  '"& %"& % " 3/,''"! '* % $%,%&,3 !"'"#',*- 3"&7,#" +("&" ,' +,$$ " 3'*&"! ,- % !%'%%3" %-! #*%&"! %%,-3' '(" +*& 3/,''"! )&* '(,3 ,-3','/'" *& )&* %- *'("& ,-3','/'". I- '(" "7"-' '(%' '("&" ,3 % (,( !"&"" *) 3,,$%&,' ,- #*-'"-' !"'"#'"! )/&'("& ,-7"3',%',*- % $"%! '* !,3#,$,-%& %#',*,-#$/!,- #%-#"$$%',*#%-#"$$%',*- *)  !"&"" %##*&!,- '* %!%7/& U-,7"&3,' &/$"3 %-! &"/$%',*-3. I !"#$%&" '(%' "'(,#%$ ,33/"3 (%7" ""- #*-3,!"&"! "7%$/%'"! %-! %&*&,%'"$ %!!&"33"! ,- '(,3 &"3"%&#(. I %&"" '* %- "-',&" "$"#'&*-,# #* *& 3"#',*-3 *) '(" !,3#/33,*- '* ",- $%#"! *- '(" "9$"%&-,- *&'%$ ,) !"""! %&*&,%'" '* %$$*+ )/'/&" 3'/!"-'3 '(" **&'/-,' '* 3"" "%$"3 *) '(" %3' !,33"&'%',*-3; !,33"&'%',*-3; %-! '* " %$" '* &,-' %-! !*+-$*%! #*,"3 ,) '(" 3* !"3,&".

SIGNED : S&, B%$$%( R%'(, DATE :16.11.2016 NAME : SRI BALLABH RATHI ROLL NO : 180 SUPERVISOR : ANUPAM PURKAIT

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 ACKNOWLEDGEMENT   ACKNOWLEDGEMENT  T(,3 &*en'ra Narg-n'%ar 8In'ian Instit-te o+  Manage(ent In'ore In'ore< In'ia! ?$@@.7  :hey have e8a#ined that "riing and servie Muality are the (ey variables that deide the brand eMuity of eah "layer in the airline industry. :he artile suggests that #easure#ent and #anage#ent of servie Mualityis the (ey for survival of airline o#"anies. :his researh "a"er e8a#ines the servie Muality delivered by four #a+or airlines in India on the ba(dro" of sti* o#"etition in the airline servie setor. :he "roess traveling on a do#esti airline was divided into "re$0ight! in$0ight and "ost 0ight e8"erienes. A survey was onduted to nd out the "ereived servie Muality of freMuent 0iers on eah of the four airlines aross a series of servies "erfor#ane variables. :he airline brands were "ositioned in a "ere"tual s"ae! where the "ereived servie attributes were also #a""ed. Dlear di*erenese#erged a#ong the airlines! with two of the# "ereived as being si#ilar to eahother! and the other two di*ering in #any as"ets.

assengers er#eption o+ Retention Strategies  A'opte' b0 Do(esti# Airlines in Coi(batore Distri#t  Page | 1%

8b0 Mrs! H! -nitha 8 Assistant ro+essor< Dept! o+  Co((er#e CMS College o+ S#ien#e an' Co((er#e ?A-tono(o-s7 Coi(batore  .*"@*1< Ta(il Na'-< In'ia an' Dr! N! Ta(il#hel/i 8 Asso#iate ro+essor an' 9ea'< Dept! o+ Co((er#e T!S!A! Arts< S#ien#e an' Ta(il  College< er-r< Coi(batore  .*"@@1< Ta(il Na'-< In'ia ?$@")7 Dusto#er retention is dened as the #ar(eting goal of "reventing usto#ers fro# going to the o#"etitor. Dusto#er retention is the way in whih organizations fous their e*orts on e8isting usto#ers in an e*ort to ontinue doing business with the#. Airlines are realizing that retention strategies are the #agi bullet that hel"s the# to build stronger and #ore "rotable relationshi"s with the "assengers. :he study is arried out to nd out the e*et of retention strategies ado"ted by do#esti airlines in Doi#batore distrit. A total of & res"ondents have been ta(en by a""lying non$"robable onveniene sa#"ling #ethod and ,ulti"le -egression is used to test the hy"otheses. indings of the study reveal that the "assengers "ereived that the retention strategies ado"ted by the do#esti airlines are e*etive. atisfation is a #easure of how "roduts and servies su""lied by a o#"any #eet or sur"ass usto#er e8"etation. Dusto#er satisfation is what guarantees the future of airlines and it is ahievable by an ado"tion between their servie and "assenger needs. :he study has tried to nd out the level of satisfation on the servies o*ered by do#esti airlines in Doi#batore distrit. :otal of 3 res"ondents have been ta(en by a""lying non$"robable onveniene sa#"ling #ethod and hi$sMuare test is used to test the hy"otheses. indings of the study reveal that the "assengers are fairly satised with the servies o*ered by do#esti airlines.

Ser/i#e -alit0 an' C-sto(er Satis+a#tion in the  Airline In'-str0: A Co(parison bet&een Lega#0   Airlines an' Lo&8Cost Airlines 8 Da/i' M#! A Ba%er  Depart(ent o+ Manage(ent< 9ar(on College o+  B-siness an' ro+essional St-'ies< 3ni/ersit0 o+  Central Misso-ri< Warrensb-rg< MO< 3SA!?$@")7 Page | 19

 :he "ur"ose of this study was to e8a#ine the servie Muality and usto#er satisfation of airlines between 2%$ 211 using data fro# the 7e"art#ent of :rans"ortation Air :ravel -e"orts. :he ob+etives of this study were to o#"are usto#er satisfation and servie Muality with res"et to airlines Muality di#ensions and subseMuently to deter#ine the relationshi"s between the di#ensions of servie Muality and "assengersQ satisfation on airlines servies. A ritial review of the literature revealed that the airline industry has been struggling with #any hallengesB utting osts! #anaging 0utuating de#and! (ee"ing u" with tight Muality reMuire#ents while trying to #aintain su"erior servies and satisfy the needs of various usto#er grou"s. 7ata were olleted fro# the 7e"art#ent of :rans"ortation'eep Gre&al8 ro+essor o+  Mar%eting an' Deans ;a#-lt0 ;ello& at the S(eal  College o+ B-siness< enn State 3ni/ersit0< 3ni/ersit0 ar% Aet an' Air egas-s! CHART2 ATFCONSUMPTI ONOVERTHEDECADE

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The Air T-rbine ;-el ?AT;7 #ons-(ption gro&th in In'ia has been (o/ing in tan'e( &ith the gro&th o+ air tra6#! In the 0ear $@",8".< AT; #ons-(ption &ent -p b0 Q!P &hi#h is #onsistent &ith in#rease in air#ra+t  an' air tra6# (o/e(ent! CHART ?9FOREIGN TOURIST ARRIVAL  INTERNATIONAL INBOUND PA TRAFFIC

 An i(portant aspe#t o+ international tra6# to an' +ro( In'ia pertains to tren' in +oreign to-rist arri/als in In'ia! In $@",< ;oreign To-rist   Arri/als a##o-nte' +or ))!. o+ inbo-n' international tra6# in In'ia!

TABLE @9PERSONNEL STATISTICS OF SCHEDULED INDIAN OPERATORS FOR THE YEAR 201@915.

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O-t o+ the total airline sta o+ ,.,.@< )P!P is e(plo0e' b0   Air In'ia Lt' +ollo&e' b0 et Air&a0s ?$)!Q7< In'iGo ?"Q!.7 an' Spi#eet ?P!*7! CHART @9FREIGHT TRAFFIC CARRIED BY SCHEDULED CARRIERS OVER THE PAST DECADE

 Air #argo #arrie' b0 s#he'-le' airline operators< both 'o(esti# an'  international &itnesse' a positi/e gro&th in $@",8".! The 'o(esti# #argo tra6# registere' a gro&th o+ P!. ?CAGR7 o/er the perio'  +ro( $@@.8@P to $@",8". &hile International #argo tra6# gre& at   *!P ?CAGR7 '-ring the sa(e perio'! IE C9ART8 ) *

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;reight tra6# is #o(ing to In'ia in al(ost e4-al proportion +ro( aro-n' the Worl' e2#ept the +reight tra6# +ro( the A(eri#as &hile +ro( In'ia< (ore than hal+ o+ the +reight tra6# is #arrie' to the #o-ntries in the A+ri#a  Mi''le East! CHART 59COMPARISON OF PASSENGER LOAD FACTOR PLF AND BREAK9EVEN LOAD FACTOR BELF 201@915

 A higher L; i(plies that an airline is s-##ess+-l in selling a/ailable seats! 9o&e/er< higher L; (a0 not res-lt in higher operating  pro5t! When L; is less than brea%8e/en loa' +a#tor< the airline in 4-estion is r-nning losses! E/i'entl0< in the 0ear $@"*8",< onl0 Air In'ia E2press< In'iGo an' Go Air &ere operating at a L; higher than brea%8e/en loa' +a#tor ?BEL;7 IE C9ART 8 , .

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In the 0ear $@",8". both in ter(s o+ passenger #arrie' an' RK< In'iGo ha' the (a2i(-( (ar%et share +ollo&e' b0 et Air&a0s< Air  In'ia an' Spi#eet!

TABLE ,8;inan#ial S-((ar0 O+ All In'ian S#he'-le' Carriers

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 ;IG3RE ": ORTERS , ;ORCES

;IG3RE $ : SWOT ANALFSIS 

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 :he o""ortunities for the aviation setor

;IG3RE ): Hario-s Strategies

;IG3RE *: Hario-s Opport-nities

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