Airlines Industry India Essay Example
Airlines Industry India Essay Example

Airlines Industry India Essay Example

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  • Pages: 15 (4078 words)
  • Published: October 16, 2017
  • Type: Research Paper
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The Airlines Sector

The aviation industry in India has experienced significant growth in recent years, both in terms of kilometers flown and customers serviced. The quality of air transport plays a major role in determining the economy of a country.

The airlines have become more popular by implementing various marketing tactics such as reducing costs for frequent flyers and eliminating the need for agents through e-ticketing. UK's low-cost carriers, Rynair and Easy jet, have completely eliminated travel agents and sell tickets online. They also sell tickets through online auctions and provide various freebies and accommodation offers at lower rates. Additionally, the airlines have improved their staff and increased aircraft capacity. These reasons contribute to the increasing popularity of airlines.

The turnover of the airlines industry in 1999 was around 44 billion, with approximately 14 mi

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llion passengers using their services. Indian Airlines previously held a monopoly in the sector until 1993 when private participation was allowed and 8 airlines were granted permission to start operations. Among these, only Jet Airways and Sahara Airlines have managed to survive. The market share of Indian Airlines compared to the private players is provided below.

Airlines Market Share Aircrafts Owned Indian Airlines 47% 55 Private Airlines* 53% 35 One can better understand the workings of airlines by looking at its marketing triangle.

Enabling Promises Making Promises Keeping Promises

There are three entities in the entire transaction:

  • Customer: He is the person who wishes to satisfy his need i. e. of transportation from one destination to another.
  • Company: This is both the dreamer and the offerer.
  • It is the various airlines, which offer its aviation services to satisfy
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the customers demand for transportation from one destination to another. For e. g. : The Indian airlines

  • Provider: these are finally the people who interact with the customers.
  • They are the ones who carry out the final transaction. The customers actually come in contact with the service provider and not the company. For e. g.
  • The company is established with the primary goal of providing a specific transport service. This gave rise to the airline industry, which includes players such as Indian airlines, jet airways, Sahara airways, and others. The company, which is the air service provider, interacts with the customer and informs them about the services offered. Advertising through various media channels is used to make promises to the customer.

    The advertisement showcases Indian airlines' new sleep-in seats. Customers who are interested in the service can approach the company to avail it and fulfill their needs. This interaction between the customer and the company is facilitated by the providers of the company. The company fulfills its promises to customers by establishing ticket and enquiry counters.

    The interaction between the provider and the customer ultimately determines the outcome of the "to be transaction." To optimize the quality of the transaction, the company's aim is to provide its providers with the necessary infrastructure and training. Sahara airlines, for example, implements yearly employee training programs and performance appraisals. The three strategic points of interaction between the provider and the customer are the marketing mix variables and the promotion mix. Creating an effective promotion mix is crucial for informing, sensing, and persuading users.

    The users of air services include business magnets, business executives, politicians, cine artists, high spending tourists, business houses

    using expensive inputs and trading the same, the Department of Posts, and domestic and international tourists. These users are generally conscious of their rights and sophisticated. However, to attract more users, creative promotional efforts are necessary. The professionals in the air services industry are responsible for effectively combining different promotion strategies to increase business. Considering the financial difficulties faced by many airways and airlines, it is important for them to make optimal use of these strategies. Advertising is a key component of the promotion mix for air transportation services, requiring creative input from professional advertising agencies.

    Due to the increased cost of inputs and the impact of global economic downturn on the air transportation industry, it is necessary to optimize the advertising budget. This is crucial for controlling excessive and unproductive expenses that contribute to higher service costs. Both television and print media play a significant role in promoting the air business. When advertising on television, it is important to consider budget constraints and allocations. Additionally, factors such as target market quality, nature, and level of expectations should be taken into account. Advertising professionals must create proactive slogans, campaigns, and messages that generate business.

    The airlines must ensure that their strategic decisions give them an advantage over their competitors' promotional efforts. They must also focus on creating a positive image. Indian Airlines and Air India have faced image problems, but advertising could help convey the truth and improve their reputation. When advertising, it is important to consider the country's image, natural scenery, tourist attractions, and cultural heritage to motivate tourists. Both domestic and international flights have low occupancy rates, so it is difficult to judge the quality

    of their products or services. Impactful advertisements should feature attractive flight moments, appealing staff including air hostesses, and attractive tourist destinations like wildlife sanctuaries and parks. Additionally, air transportation services can use broadcast media. Publicity is a form of persuasive communication that does not involve payment.

    Strengthening public relations activities is crucial for promoting the business of airlines or airways. Key individuals involved in publicizing the business include the Public Relations Officer, Receptionists, Travel Agents, Travel Guides, and the media. The cooperation of the media is particularly crucial. Marketing professionals should be aware of the magazines and newspapers preferred by their prospects or users and should establish a good relationship with the relevant correspondents.

    The Airlines must hire skilled personnel for this purpose, who possess professional excellence as well as the ability to attract users and prospects. For example, Indian Airlines organized a small outing for cancer patients as part of their public relations campaign.

    Similarly, Sahara has partnered with Close-up by featuring Hrithik Roshan. While this serves as a promotional strategy for Close-up, it provides Sahara with publicity, as it showcases the collaboration between an airline and an FMCG company. Sales promotion refers to a specific period during which measures are implemented to target customers and are withdrawn once the time period ends. This approach utilizes incentives to effectively engage users. It is crucial to prioritize the travel agents and tour operators, as they play a significant role in promoting the air transport business.

    The front-line staff in the offices of the airways and the receptionists working there also play the same role. They should be given incentives such as a holiday trip to a particular place or

    concessional services for their children or spouse. Additionally, innovative gifts that have not been offered by their competitors can be given. The nature and type of incentives will depend on the contributions of providers. If they make significant contributions, the incentives will be of higher quality and quantity.

    There are promotional incentives given based on the frequency of using the services. For example, through Jet Airways, passengers with return tickets on metro flights (both economy and business) can receive a discount at all Taj and ITC hotels in South India. Additionally, Sahara is offering a variety of gifts as part of their "Take Offer," including Braun Mixer grinders, CTVs, cameras, handycams, mobile phones, and even free holiday packages as part of their sales promotion campaign.

    ?The air transport organizations rely on personal selling, which is a part of the promotion mix, to enhance their business. Personal selling involves using various techniques to influence and stimulate impulse buying. It is important for air transport marketers to understand the behavioral profile of individuals who serve as personal promoters. Travel agents, tour operators, transport operators, travel guides, and front-line staff at booking counters and reception desks play a significant role in promoting air travel. If these individuals stop selling, airway offices would struggle to make sales. This highlights the importance of cooperation between channels for even high-quality services to attract users. To ensure continuous stimulation, it is crucial to provide incentives to these personnel.

    In order to promote business, the airlines industry must carefully choose individuals and agencies with a positive reputation. Well-established travel agencies can greatly assist and it is crucial to consider the agency's image when selecting travel agents.

    Tour and transport operators also provide substantial assistance, and it is important to consider incentives for promoters. The front-line staff at the booking or reservation counter in airlines offices play a vital role in personal selling and promoting the business. It is essential to be aware of the credentials of the individuals responsible for these tasks and continuously improve their skills as opportunities arise.

    The task of acquiring business becomes more complicated when the front-line staff behaves inappropriately. Therefore, it is crucial for individuals who work at counters and interact face-to-face with customers to have excellent communication skills and a high behavioral profile. Consequently, the training program for front-line staff is given significant importance.
    In terms of promotion, word-of-mouth plays a vital role as it serves as a hidden sales force. If an air transport organization believes that they offer world-class services, they rely on this form of promotion. In the Indian context, airlines such as Indian Airlines, Air India, Sahara India, Jet Airways, and others may utilize this promotional strategy if they observe that service providers have not compromised on the quality of promised services.

    Telemarketing is crucial for business promotion as it serves multiple purposes such as information sharing, customer sensing, and persuasion. With a telephone and skilled telemarketers, businesses can achieve results without large investments.

    The queries and questions of the users/prospects can be satisfactorily addressed and any misunderstandings, confusion, and communication gaps can be resolved by having professionally competent telemarketers. The booking counters, enquiries, reception counters, users' complaints and grievances cell, and announcers all play a significant role in promoting the air business. To achieve this, telemarketers should possess strong communication skills, an attractive

    personality, and clear audio quality.

    Pricing decisions are crucial in managing the air transportation business due to increasing operational costs, intense competition, declining occupancy ratio, demand-supply imbalances, and inflationary pressures. The Ministry of Tourism and Civil Aviation, Indian Airlines Corporation, National Airports Authority, International Airports Authority of India, and Air India Corporation are influential bodies that directly or indirectly impact the pricing decisions process.

    The main issue is ensuring competitive pricing, as even private air transport organizations are involved in the process. The key features in price include flexibility, price level, differentiation, discounts, and allowances. Although price is tactical and has localized implementation, it is temporary and therefore flexible.

    According to an article from the Business Standard dated 1st October-02, the IA is taking the fare war to Jet's territory by extending benefits to customers during the peak season. Domestic carriers have successfully filled more seats by offering passengers significant discounts, up to 50 percent in some sectors. While this has improved airlines' financial performance, it is expected to last only until the end of the lean season in most cases. Following the events of 11 September, there was a decline in passenger load, but these schemes have managed to maintain higher loads.

    Major domestic airlines in India, including Indian Airlines (I-A), Jet Airways, and Sahara, have introduced enticing schemes to attract passengers. This not only leads to a shift in passengers from one airline to another but also encourages those who usually travel by rail or road to consider air travel. There is more good news for air travelers as Indian Airlines (IA) has introduced a revised apex fare scheme, effective from November 1 to March 31,

    2003, extending the early bird scheme to the peak season. This new scheme covers 53 destinations and reduces the advance booking period from 21 days to 15 days. Additionally, cancellation and refund rules have been relaxed, allowing passengers to change their reservation plans or obtain a refund at least 15 days before the travel date for a minimal charge of Rs.

    100 per ticket. The new fares, which will take effect from November 1 of this year, result in a Rs. 520 or 13.25% decrease on the Delhi-Mumbai sector. The new IA fare is Rs.

    The cost of a Delhi-Mumbai Jet Airways ticket is Rs. 3,620, which is 6 percent higher than Rs. 3,400. On the other hand, the rail fare for an AC first class Rajdhani ticket on the same route is Rs. 4,180, reflecting a 19 percent increase compared to an IA economy ticket.

    The AC-II tier Rajdhani ticket at Rs. 2,045 is approximately 30 percent cheaper. According to officials of IA, the airline has been offering approximately 12-13 percent of the total economy class seats under the apex fares scheme. The scheme is valid in 50 destinations and offers around 2,500 seats per day out of the total 2000 economy class seats. This has enabled us to convert the first class train traffic and establish a completely new segment.

    IA officials have stated that during the peak season, the seat factors increase to 65-70%. They believe that the additional traffic during this time will contribute to a higher seat factor without much effort. The airline has been flexible with the availability of seats in this category. They vary the number of seats offered based on analysis

    of the demand-supply, traffic profile, and cost benefit. In the lean season (August-October), they have often offered close to 3,000 economy class seats out of the available 20,000 seats a day. IA has a capacity of around 34,000 seats a day when considering all categories and routes together. The revenue from business traffic is approximately 80%, while leisure traffic accounts for the remaining 20%. Jet Airways has also decided to reduce the number of seats offered under the Apex scheme.

    The airlines have reduced the number of seats available per flight under the scheme from 15% to 10%. Senior Jet officials stated that the airline will offer 40% fewer seats daily across its network compared to the August-September period. During the last two months, the airline was providing approximately 3,000-4,000 seats on its Apex scheme. IA also announced fare cuts on seven other routes, including Mumbai-Bangalore (now Rs. 2,700 from Rs.).

    The prices for flights from various Indian cities have changed. The flight from Delhi to Mumbai now costs Rs. 2,480, while the flight from Kolkata to Guwahati is now Rs. 2,000 (previously Rs. 2,205). The price for the Mumbai to Kochi flight has decreased from Rs. 3,250 to Rs. 3,200. Similarly, the flight from Delhi to Bangalore is now Rs. 4,500 (previously Rs. 5,055).

    Delhi-Kochi flight is now priced at Rs. 6530, while Delhi-Trivandrum flight is now priced at Rs. 6555. On an Airbus A-300s, Indian Airlines (IA) has 25 seats available out of a total of 212 economy class seats. On Airbus A-320s and Boeing 737s, IA offers 15 seats out of 126 and 119 seats respectively. IA officials mentioned that the number of seats per

    flight may vary by five on a daily basis.

    Air Sahara, the third airlines in the sector, has extended its Sixer and Super Sixer schemes to the peak season and is closely monitoring the situation caused by the Apex fare extension. Below is a table showing a comparison of IA, Jet, and Rajdhani train fares:

    Sector IA Jet AC–I* AC-II *
    Delhi-Mumbai 3,400 3,620 4,180 2,404
    Delhi-Bangalore 4,500 5,053 6,385 3,470
    Mumbai-Bangalore 2,700 2,839 2,943 1,954

    *Rajdhani fares
    All figures in Rs

    The PLACE MIX dimension of the marketing mix focuses on service processing and selecting location points for airways and airline offices. This is done with the ultimate comfort and convenience of the end users in mind. The processing of services involves channels, front-line staff, travel agency offices, or offices of tour operators. These are the points from where services flow and reach the ultimate users. The air transport industry ensures that prospects do not face any difficulty in purchasing tickets and making necessary arrangements for booking confirmation.

    2. It is important to ensure that users booking their luggage do not experience any inconvenience. 3. The behavioral profile of personnel working in travel agent offices and airline offices needs to be

    given proper consideration.

    It is evident that airhostesses who appear attractive, smart, and well dressed are ready to provide you with the specified services. Furthermore, the offices of travel agents are equipped with technology-driven and user-friendly information networks. Additionally, the process of security checks, custom checks for passport, visa, and income tax clearance is also ensured.

    It is crucial for all windows or counters to provide services according to the provisions and promises. Additionally, users are supplied with lunch, dinner, breakfast, and drinks during aircraft flights based on their duration and nature.

    If during the journey, you need to change planes and the layover is lengthy, it is the duty of the airport authorities and the relevant airway and airlines to provide assistance. Another aspect of the location mix pertains to the positioning and administration of airway offices, travel agents, tour operators, and transportation operators. 1. The primary consideration in selecting a location is convenient accessibility. The location should be secure, well linked by all-weather roads, and equipped with all necessary infrastructure facilities.

    2. The booking system, which is driven by technology, must be guaranteed. 3. Travel agents or airlines offices must take proper care of the water and sanitation facilities for users, as well as providing comfortable seating arrangements.

    The lighting and ventilation facilities should be provided, along with aesthetically pleasing interior decoration, furnishing, and plantation, to ensure that users have a positive opinion of the airways services. The positioning of attractive posters for airways and airlines should be carefully considered to draw the attention of users visiting the offices for chartered flights and packaged tours. It is in this context that the management of place is viewed as

    an important component of the marketing mix.

    In consideration of the above mentioned points, it should be noted that the air transportation business is associated with several related services provided by various agencies and organizations. If there is a lack of cohesion and coordination, the promised services will hardly reach the end users. THE PEOPLE MIX: ?What Airlines Look For? One of the most common questions asked before and after an interview (especially for unsuccessful candidates) is "Exactly what are they looking for?" This section aims to answer that question before discussing the selection process (which is how airlines obtain what they are looking for!). In reality, there is no definitive answer because each airline has its own unique requirements and selects employees accordingly. However, here is some insight into how cabin crew recruitment is evaluated and managed. When deciding on the employment of cabin crew, all airlines consider three main factors: Eligibility, Suitability, and Specific Requirements.

    The combination of these elements creates a "person specification" which interviewers utilize to determine the suitability of a candidate. For eligibility, information that can be verified by physical or documentary evidence is considered. Eligibility checks encompass various aspects such as possessing a passport, having permission to fly to the airline's destinations, having the necessary permits or residential status, passing medical checks, completing internal competency tests, and providing appropriate references. The candidate's ability to swim may also be assessed for safety purposes. Additionally, an airline may have additional eligibility requirements such as specific age, height/weight measurements, educational qualifications, documentation to support claimed qualifications, relevant experience in customer service or public contact roles, and proficiency in a second language.Candidates are advised to

    thoroughly examine the eligibility criteria before applying for a job in order to avoid any disappointment, as not all airlines have the same requirements. Assessing suitability is more challenging as it requires identifying the appropriate personal qualities rather than objective facts.

    The minimum requirement for cabin crew is to be reliable, presentable individuals who can provide a friendly service, interact well with people, work as part of a team, and handle difficult or emergency situations. Airlines will also consider if the disadvantages of the job will negatively affect their performance and if they are open to direction and training. Eligibility and Suitability are basic requirements that must be met by all candidates. Airlines then customize their 'person specifications' based on their own needs and standards.

    If, for example, an airline determines that they need more crew who can speak different languages, then language proficiency may be prioritized. For some airlines, having an above average appearance or presentation is essential, while others value charisma and personality. Certain airlines may find a good customer service background, nursing experience, or educational qualifications more relevant. When a new airline is starting, they may consider previous cabin crew experience as a vital requirement. Established and prestigious airlines often have the luxury to be even more selective and seek a combination of desired attributes. Some airlines prefer to hire individuals internally from ground jobs, whom they have already observed, but most also accept external candidates. Airlines must consider various factors when determining their specific requirements, such as their current crew profiles, the state of the job market, the availability and quality of candidates, the appeal and benefits of their organization, and, of course,

    the salary they are willing to offer.

    When making hiring decisions, airline managers consider the airline's current position in the market and their specific niche. Balancing supply and demand, like any other industry, is crucial for them. Additionally, they have the advantage of providing a desirable and prestigious job, particularly in certain countries. After considering these factors, the person specification is finalized. The different priorities in hiring contribute to why some individuals are successful with one airline but rejected by another. Performance at the interview stage is also a determining factor. It is common for candidates to initially fail to be recruited by an airline but succeed later on. This is often due to improved interview techniques, as well as gaining additional skills, experience, or confidence.

    It can also be because the airline itself has updated their requirements for candidates. So, in other words, airlines are seeking individuals who are suitable for their current situation. If you don't get accepted on your first try, don't be discouraged. You can always attempt again or apply to a different airline! The selection process includes an application form, preliminary selection (which involves administrative formalities, written tests, uniform trials, informal talk, presentation exercises, and group exercises), and final selection through a conventional interview.

    Common Interview Questions (Background Questions, General Motives and Perceptions, Perceptions About Customer Service, Perceptions About Teamwork And Working Relationships, Managing Adversity, Hypothetical Situations, Technical Questions). Medical Check. Training Course and Assessment. ?Airline Services Training In the airline industry, successful carriers are those that respond quickly to growth and changes. Effective, cost-efficient training ensures that employees are prepared to meet those challenges while providing quality customer service to an increasing

    number of travelers. Drawing from more than 60 years of knowledge and real-world experience at American Airlines, AMR Training Group offers the industry's most in-depth and consistent airline training programs. Our expert staff develops custom curriculum designed to provide an air carrier's workforce with the highest standards of safety and service.

    Training is offered for all aspects of air transportation, including Flight Attendant Training for both domestic and international carriers. Ground Passenger Service covers domestic and international ticketing, gate and operations, as well as international reservations and security and drug screening. AMR Group /American Airlines Foundation Training offers management training and consulting services to improve business direction and profitability. Customer Service Plan includes offering the lowest fare available, notifying customers of delays, cancellations, and diversions, and ensuring on-time baggage delivery.

    Support the increase in the baggage liability limit, as successfully petitioned by the airlines to the Department of Transportation. Each airline will now offer customers the option to hold a telephone reservation without payment for 24 hours or cancel a reservation without penalty for up to 24 hours. This will allow customers to explore other distribution systems, like travel agents or the internet, for lower fares. Additionally, each airline will provide prompt ticket refunds, with eligible ticket refunds issued within 7 days for credit card purchases and 20 days for cash purchases.

    Each airline must properly accommodate disabled and special needs passengers, and disclose their policies and procedures for doing so. They should also meet essential needs of passengers during long on-aircraft delays by providing food, water, restroom facilities, and access to medical treatment. Airlines should prepare contingency plans for such situations and work with other carriers and

    the airport to share facilities and make gates available in emergencies. Furthermore, airlines must handle "bumped" passengers with fairness and consistency by disclosing if a flight is overbooked and establishing policies and procedures for managing the inability to board all passengers.

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