Research Proposal

Customer preference in domestic airlines in India Assignment 1

Submitted to:Miss. Kanika Jhamb Executive Summary

1

Submitted by:Ramandeep kaur RA17B2A14 7450070076

This research proposal is being made to research about factors that affect customer in case of airlines when they buy the air ticket. Every consumer prefers good service quality. Factors affecting customer to buy ticket:1. Price 2. Good service quality 3. Schedule 4. Seating planning 5. Faclities 6. Status in the society 7. Brand

Objectives:1. To know about peoples preferences towards airlines. 2. To know what kind service they want. 3. To study the relationship between Service Quality, Customer Satisfaction and
Behavioral responses in airlines.

Introduction:- An airline provides air transport services for passengers. Airlines lease or own
their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit. Generally, airline companies are recognized with an air operating certificate or license issued by a governmental aviation body. Passengers can now choose from one government owned full service airline, three privately owned full service airlines, and five privately owned low cost carriers.

India's domestic airlines are:Indian Airlines:- Indian Airlines is India's government owned, full service domestic airline, based in Mumbai. The airline was merged with Air India, the government owned international airline, in 2007 but still retains its name. Its market share has dropped significantly, to around 14%, in recent years. Jet Airway:- Jet Airways is widely regarded as India's biggest and best airline. It's a privately owned, full service airline that commenced operating in mid 1993. It's now captured almost 23% of the market, and has bases in Delhi, Mumbai, Pune, Kolkata, Hyderabad, Chennai, and Bangalore. Kingfisher Airlines:- Kingfisher Airlines is another highly regarded full service airline. The airline, which has the same "King of Good Times" owner as India's Kingfisher beer, started operating in mid 2005 and has a 15% market share. Its headquarters are in Bangalore, with bases in Mumbai, Hyderabad, and Delhi. In total, the airline covers almost 40 destinations across India. The average age of its fleet is less than two years. Indigo Airlines:- Indigo Airlines is based in Delhi and flies to around 15 destinations all over India. This privately owned airline started operating in mid 2006, and has a market share of almost 11%. It's considered to be India's best low cost carrier. SpiceJet:- SpiceJet is another decent, privately owned, low cost carrier. The airline, which is based in Delhi, started operating in mid 2005. It has just over 10% share of the market, and services most capital cities in India.
3

Kingfisher Red:- Kingfisher Red, originally called Air Deccan, is a privately owned low cost airline based in Bangalore. It started operating in mid 2003 and was India's first low cost carrier. Kingfisher Airlines took over the airline, which has captured just under 15% of the market, in early 2008. The average age of its airplanes is four and a half years JetLite:- JetLite used to be Air Sahara until Jet Airways successfully took the company over in mid 2007. The low cost airline focuses on providing flights that connect India's capital cities, and it has a 7% share of the market. In addition to its headquarters in Delhi, it also has bases in Mumbai and Hyderabad. Many passengers report poor service and baggage handling. Go Air:- Go Air is a small privately owned, low cost airline that started operating in late 2005. It has almost a 5% market share and operates a fleet of brightly colored airplanes to twelve cities in India. Its remote destinations include Jammu, Srinagar, and Guwahati. Go Air now has the youngest fleet of aircraft in India, with the average age of its eight A320 Airbus airplanes being approximately seven months. Go Air has some of the cheapest domestic fares available in India.

2. Literature Review
Article 1 The effect of airline service quality on passengers behavioural intentions Author- Jin-Woo Park, Rodger Robertson ,and Cheng-Lung Wu was published Department of Aviation, University of New South Wales, Sydney, Australia. On 20 July 2004,This paper seeks to improve our understanding of air passengers decisionmaking processes by testing a conceptual model that considers service expectation, service perception, service value, passenger satisfaction, airline image, and behavioural intentions simultaneously. Article 2

Some Aspects of Market Dynamics and Customer Satisfaction in the Indian Domestic Airlines Sector This article is written by R. Sarkar is at Whirlpool, New Delhi and Rajat K. Baisya is Professor, Department of Management Studies, IIT, Delhi in 2005. This article examines two areas related to the domestic airlines industry: the market dynamics of the industry and some aspects of customer satisfaction. The changing market dynamics over the last few years and its various causal factors are also seen. In India, the domestic airlines industry is going through an interesting phase with three-way competition among Indian Airlines, Jet Airways and Air Sahara and the possibility of emerging competition from budget airlines in the future. Article3 Dr. Sherry Robert (2007), in his research paper Liberalization of the Indian aviation Industry, discussed that India's airline passengers began enjoying the benefit of choice because Indian carriers quadrupled in number. As if that was not enough, the country recorded a twenty two percent increase in passenger traffic. Article4 India Flies to the Top League in Aviation Author- V. JAYANTH Monday, Jul 23, 2007 According to the study most of the Airlines in India placed orders for Airbus of different models. To meet their current market demand, most airlines have taken aircraft on lease. At a time when mergers and acquisitions have become the market trend even in the aviation sector, Air India and Indian Airlines integrate to become potentially one of the largest airlines in the world.

Article5 Transformation of Indias domestic airlines

5

Author- John F. OConnell and George Williams Published on 18 October 2006 A case study of Indian Airlines, Jet Airways, Air Sahara and Air Deccan, where through a large passenger survey conducted in Mumbai the authors found that there is ahomogenous set of flight products required by leisure passengers, travelling on both full service and low cost airlines, however there is a considerable dissimilarity overall between the requirements of passengers using a full service airline and a low cost carrier. Article 6 Passenger Service Behavior Author- Rogelberg S.G., Barnes-Farrell J.L., and Creamer V September, 1999 The Interaction of Service Predisposition and Job Characteristics The achievement of passenger satisfaction in service operations depends to a great extent on employee passenger service behavior (CSB). In this study, 123 service providers responded to a survey assessing service predisposition and job characteristics. Analyses suggest that job characteristics did not moderate the relationship between service predisposition and CSB Article 7 Corporate planning in domestic airlines Author- S. Subramaniam and C. K. Sharma Indian Institute of Management, Bangalore 26 April 2002 In this article the author considers the problems of planning in the airline industry, drawing specifically on experience in the domestic Indian airline. The article seeks to examine some of the strategic issues relevant to domestic airlines which, while related here to the Indian environment, may be seen to be pertinent in most developing countries. Article 8
6

As passenger service is taking on an ever-increasing level of importance in today's global economy, another article Measuring Passenger Service Orientation: An Examination of The Validity Of The Passenger Service Profile written by Baydoun R., Rose D.,Emperado T. has been studied with keen interest. In this study, the authors collected validity evidence using passenger related (vs. supervisor) ratings, an area relatively neglected in the service literature. Evidence suggests that passenger ratings are viable and an important criterion for use in the validation of passenger service instruments

3. Research design
3.1 Sample Size: 100-150 3.2 Sample Unit: LPU and Model Town Jallandhar 3.3 Research Methodology: Descriptive Research 3.4 Tools for research: Questionnaire

Bibliography
Books and Magazines Marketing Research, Naresh K Malhotra

Websites:http://gbr.sagepub.com http://www.bizresearchpapers.com/ http://goindia.about.com/od/air/tp/india-domestic-airlines.htm http://www.bharat-rakshak.com/IAF/History/Aircraft/AviationIndia.pdf http://en.wikipedia.org/wiki/Airline http://www.indiatravelite.com/airway/domestic1.htm http://www.sciencedirect.com/ 7