You are on page 1of 74

A PROJECT REPORT ON

EMERGING TRENDS IN AVIATION INDUSTRY GIVING SPECIAL REFERENCE TO JET AIRWAYS


SUBMITTED BY:

AMIT DEVPURA
T.Y.BMS (SEMESTER V)

UNDER THE GUIDANCE OF: PROF. VINAY PANDIT

LALA LAJPATRAI COLLEGE OF COMMERCE AND ECONOMICS MAHALAXMI, MUMBAI- 400034


SUBMITTED TO:

UNIVERSITY OF MUMBAI
ACADEMIC YEAR: 2010 2011 UNIVERSITY SEAT NO: 76

Page 1 of 74

DECLARATION
I student of LALA LAJPATRAI COLLEGE of commerce and economics T.Y.B.M.S semester V there by declare that I have completed the project on Emerging trends in aviation sector giving special reference to Jet Airways in the academic year 2010-2011.

The information submitted is true and to the best of my knowledge.

Signature of student. Date: Place: Mumbai

Page 2 of 74

CERTIFICATE
I Prof Vinay Pandit, hereby certify that Amit Devpura student of Lala Lajpatrai College of Commerce and Economics of third year bachelors of management studies have completed the research on EMERGING TRENDS IN AVIATION INDUSTRY GIVING SPCIAL REFERENCE TO JET AIRWAYS in the academic year 2010-2011. To the best of my knowledge the report is original and has not been copied or been submitted from anywhere else.

Signature of Project co-ordinator

Signature of Course co-ordinator

Principal

Page 3 of 74

PREFACE
This project gives insight of the Indian aviation industry. It helps us to understand the position of Indian aviation sector in todays time with reference to previous years. It gives a clear picture about performance of air traffic in India and to study the trends thereof. The research helped us to know about the evolution of aviation sector. The project also focuses on the role of aviation industry in economy of India. It also helps us to understand the perception of travelers towards the industry. Lastly the study made clear how changes in policies and regulations bring about a change in the aviation sector.

Page 4 of 74

ACKNOWLEDGEMENT
As I complete my project titled on EMERGING TRENDS IN AVIATION INDUSTRY GIVING SPECIAL REFERENCE TO JET AIRWAYS. I extend heartiest thanks to my internal guidance PROFESSOR VINAY PANDIT for contributing his valuable time and knowledge to my project, to make it complete and successful eventually. I consider myself fortunate enough to have a veteran like him as a torchbearer.

I would also like to acknowledge all the people directly or indirectly involved in the research and survey work for removing their valuable time and support with whom the project would not have been a reality.

Page 5 of 74

CONTENT OF PROJECT
SR. NO. CHP 1 1.1 1.2 CHP 2 2.1 2.2 2.3 2.4 CHP 3 CHP 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 CHP5 CHP 6 6.1 6.2 CHP 7 7.1 7.2

CONTENTS
INDUSTRY PROFILE COMPANY PROFILE PRODUCT PROFILE SCOPE OF THE STUDY STATEMENT OF THE PROBLEM OBJECTIVE STATEMENT OF HYPOTHESIS LIMITATIONS REVIEW OF LITERATURE METHODOLOGY RESEARCH DESIGN RESEARCH INSTRUMENT SOURCES OF DATA SAMPLE SIZE SAMPLING UNIT SAMPLING FRAME SAMPLING METHOD STATISTICAL TOOL USED DATA ANALYSIS AND INTERPRETATION TABLES, CHARTS AND INFERENCES FINDINGS SUGGESTIONS CONCLUSION ANNEXURE QUESTIONAIRE BIBLIOGRAPHY GLOSSARY

PAGE NO. 8-17 18 19-21 22 23 24 25 26 27-42 43-44 45-46 47 48 49 50 51-52 53 54 55-64 65 66 67 68-69 70 71

Page 6 of 74

EXECUTIVE SUMMARY
The aim of this project is to analyze whether Indian Aviation Industry has improved in overall performance and how government has helped towards the same. It also helps us to determine how Indian Aviation Industry has evolved from the past decade. An exploratory research has been done for the purpose of critically evaluating various aspects of Indian Aviation Industry. The required data has been collected by comparative questionnaire based on services by airlines, government policies, security at airports, choice of airlines and financial status etc, it is filled by way of random sample method by frequent travelers . Besides various blogs and websites are taken for reference. Based on the data SPSS Analysis is used and according to analysis further suggestions and inferences are given.

Page 7 of 74

CHP 1 : INDUSTRY PROFILE


HISTORY OF CIVIL AVIATION INDUSTRY
Travel by air in the modern sense began in India only in 1877, when Joseph Lyna took off from the Lalbagh Gardens in Bombay, and ascended to an altitude of about 7,500 feet and landed at Dadra. In the years that followed, there was a tremendous development of air transportation in India as in any other countries due to technological advances and cooperation from the government. India also has the distinction of organizing the first flight by an aero plane in the world in February 1911. This flight piloted by French pilot M. Picquet flew from Allahabad to Naini. However, it took more than 20 years for the country to have its own airline. In October 15, 1932, Tata Sons Ltd which later become Air India International commenced weekly airmail service with a Puss Moth aircraft between Karachi and Madras via Ahmedabad and Bombay, covering over 1300 miles. Later two more airlines Indian National Airways in 1933 and Air Services of Indian in 1937 came up. At the time of independence, the number of air transport companies, which were operating within and beyond the frontiers of the company, carrying both air cargo and passengers, was nine. It was reduced to eight, with Orient Airways shifting to Pakistan. These airlines were: Tata Airlines, Indian National Airways, Air service of India, Deccan Airways, Ambica Airways, Bharat Airways and Mistry Airways. In early 1948, a joint sector company, Air India International Ltd., was
Page 8 of 74

established by the Government of India. Its first flight took off on June 8, 1948 on the Mumbai (Bombay)-London air route. The joint venture was headed by J.R.D. Tata, a visionary who had founded the first India airline in 1932 and he had himself piloted its inaugural flight. The Government then nationalized the airlines industry in 1953, with enactment of Air Corporation Act, and assets of nine existing air companies were transferred to the two new corporations Air India International and the Indian Airlines. After 40 years, in 1994 Air Corporation Act was repealed ending the monopoly of the national air corporations and enabling entry of private operators. Today, with new entrants in the airline sector particularly with the modus oprandi of being low-cost airlines, the airline industry is in for a major shake-up. The new 5-10 years will decide and shape-up the future for the Indian aviation industry.

Page 9 of 74

IS INDIAN AVIATION SECTOR REALLY IN TROUBLE?


Indian aviation industry has been under pressure ever since oil prices started spiraling upwards in 2006-07. With intense competition in the market, they were not able to increase the prices of their tickets. They were thus forced to suffer losses, and raise fuel surcharge to reduce them. This had detrimental impact on the number of passengers. Many people switched back to the railways and other means. This started worsening the situation for airline players. The situation went from bad to worse with the onset of the global slowdown, which is still not yet over. With India showing relatively better signs of a quicker economic recovery, coupled with low oil prices, seemed bringing back better times for the carriers, but upwards curve of oil prices has come as dampener once again. ATF price have hiked by close to 12 percent, and consequently, Kingfisher and Jet Airways have decided to raise fuel surcharge. Passenger load factor of planes are not as desired, and is quite unimpressive for the largest player Air India. Situation is grim, and the Indian aviation minister Praful Patel did ask the airline companies to change their business models to adjust to the new environment. However, there is one insider who does not feel all hell have broken loose on the aviation sector. The man is the chief executive officer of SpiceJet Sanjay Aggarwal. He has been quoted saying in a media report that typically aviation sector globally grows at 1.2 to 1.8 times that of GDP. It means aviation sector should grow at anything around 13 percent. But it was growing at 25-30 percent, something Aggarwal says was unable to sustain in the long run. Aggarwal says the industry should continue growing at 13-14 percent, and when industry grows at this rate, low cost carriers like SpiceJet would grow at 16-17 percent.
Page 10 of 74

He has been quoted saying: "The sky is definitely not falling." Sky should not be falling, but aviation sector seems definitely not in good shape. Salaries of the staff of Air India have been delayed to ensure the carrier has funds in its kitty to sustain its daily operations. Jet Airways is planning to shelve some employees and raise some resources through leasing off its aircraft. Almost all players has postponed plans for taking the delivery of new aircraft. Kingfisher is desperately looking to raise new resources, and is lobbying hard to allow foreign carriers to buy stakes in the Indian ones. Perhaps the cue should be taken from what the Minister said about revamping of business models. Paramount Airways, for instance, remained healthy despite toughest of times. Probably, SpiceJet CEO is already working on new business models. This is, in a way, visible the way the carrier has increased its market share from 8 percent in 2007 to over 12 percent in 2008. Perhaps this gives him confidence even in this hour of crisis. Aviationplayers must realize they need their flights at maximum capacity to make a profit. At the moment this is not happening. They need to strike a balance of ensuring people come in more numbers. The day they get it, it will be the "business model" they should adopt. Overall we can say that Indian aviation sector was in trouble but now is recovering slowly but gradually from the meltdown and up scale of oil prices.

Page 11 of 74

CURRENT SCENARIO OF AVIATION SECTOR


The civil aviation sector in India has been growing at a dramatic rate in 2008, however the global economic recession in 2009 negatively affected this growth. During fiscal year 2005-06 (April 1, 2005 to March 31, 2006), the sector experienced a 22 percent increase in domestic air travel. International air travel grew 15 percent, while air cargo grew at an annual rate of 20 percent. During fiscal year 2006-07, total passenger traffic grew at 27.2 percent while cargo traffic grew at 11.2 percent. This year total aircraft movements increased 27.5 percent. However, in fiscal year 2008-09, the global economic slump and higher fuel prices adversely impacted growth, resulting in a 5 percent decline in domestic passenger traffic. Domestic air cargo continued to grow at 14.5 percent. With the economy now stabilizing, domestic air traffic is projected by various sector experts and observers to grow by up to 180 million passengers and international traffic is expected to increase by 50 million passengers by 2020. International traffic is expected to grow at an average annual rate of 8 percent by 2013 and by 7 percent from 2014 to 2023. Domestic traffic will experience as slower growth rate of 3.4 percent annually until 2013 and increase to an average rate of 8 percent until 2023. International passenger growth will average 10 percent until 2013 and 9 percent until 2023. Annual growth in domestic and international cargo operations is estimated to increase by 4.5 percent and 12 percent annually until 2013.

Page 12 of 74

In the last few years, the sector experienced tremendous growth for a number of new air carriers providing domestic services. Starting from a relatively small base, the civil aviation sector in India faces the prospect of significant expansion as the overall economy recovers and India retains the second-highest growth rate worldwide. Some 639 new commercial jet aircraft were ordered by November 2008 and the number of General Aviation (GA) aircraft is projected to grow to 1,000 by 2020. With a growth rate of 18 per cent per annum, the Indian aviation industry is one of the fastest growing aviation industries in the world. The government's open sky policy has led to many overseas players entering the market and the industry has been growing both in terms of players and number of aircrafts. Today, private airlines account for around 75 per cent share of the domestic aviation market. India has jumped to 9th position in world's aviation market from 12th in 2006. Increasing liberalization and deregulation has led to an increase in the number of private players. The aviation industry comprises of three types of players: Full cost carriers Low cost carriers (LCC) Other start-up airlines

Page 13 of 74

POTENTIAL FOR GROWTH


The Indian Civil Aviation market grew at a compound annual growth rate (CAGR) of 18 per cent. The Centre for Asia Pacific Aviation (CAPA) has forecast that domestic traffic will increase by 25 per cent to 30 per cent till 2010 and international traffic growth by 15 per cent, taking the total market to more than 100 million passengers by 2010. India's civil aviation passenger growth, presently at 20 per cent, is one of the highest in the world. By 2020, 400 million Indian passengers are likely to be airborne. By 2020, Indian airports are expected to handle more than 100 million passengers including 60 million domestic passengers and around 3.4 million tonnes of cargo per annum. Aviation growth in India has been tremendous in recent years. Aircraft movements, consisting of one aircraft arrival or one departure, have grown 50 percent in the last three years. Starting from a total of less than 838,000 movements per year in fiscal year 2005-06, total aircraft movements in India are estimated at 1.24 million in 2008-2009. Approximately 400 commercial aircraft operated those scheduled movements. Figure 1 shows the expected future growth of aircraft movements in India until 2017.

Page 14 of 74

Note: The graph is given on the following page.

Figure 1: Aircrafts Movement in India

Source: Airports Authority of India (AAI)

Liberal Environment: Indias airlines operate in a liberal environment in both domestic and international spheres. Carriers are free to operate on any domestic route without seeking permission from the government, and without restriction on pricing.

Page 15 of 74

Growing Tourism: Due to the growth in tourism, there has been an increase in number of the international and domestic passengers. The estimated growth of domestic passenger segment is at 50% per annum and growth of international passenger segment is 25%. Indias touris sector has grown by 6% with 5.3 million arrivals in 2008 and the number is expected to reach a target of 10 million in 2010.

At the opening ceremony of the Aero India conference, the Honorable Mr. Praful Patel, Minister of Civil Aviation, said, Not long ago we were spectators to the world of aviation. Today, the clock has turned full circle and the whole world wants to know what's happening in IndiaI wouldn't be surprised if that number increases to 100 million [number of domestic passengers] in a few years. For a country of more than one billion people with a sizeable middle class (200-250 million) that can afford air travel, the size of the aviation sector is relatively small. While the U.S. has, on average, 50,000 commercial scheduled aircraft movements per day, India has a little over 2,200 each day. Furthermore, much of the traffic flow is located in the five major cities of the country: Mumbai in the West; Delhi in the North; Bangalore and Chennai (Madras) in the South; and Kolkata (Calcutta) in the East.

Page 16 of 74

INDIAN AVIATION GOES ECO FRIENDLY


Indian aviation industry has taken an initiative to work towards a green ecofriendly environment. The civil aviation regulator in India, also known as Directorate General of Civil Aviation (DGCA) has directed all the inbound domestic airlines and airports to open up Aviation Environment Cells through which measures can be taken to work on the aviation environmental issues which the aviation industry goes through on a daily basis. In a view of this, the Indian government has also setup an Aviation Environment Unit (AIU), which would be dedicated towards addressing environmental issues. A notification was sent to all the airlines and airports and air traffic providers via a circular by the DGCA, and it speaks about the protocol they need to follow which includes up-gradation of the aircraft, use of biofuel in the place of aviation turbine fuel. Norms have also been set for the airport authorities as they have been directed to use gas, electric or any other eco powered ground vehicles which reduces air pollution. CNG driven vehicles can be found in plenty in India especially at airports like New Delhis Indira Gandhi International Airport, though you can still find a few petrol or diesel run vehicles which means implementation work
Page 17 of 74

is in progress. Public utility vehicles have also been advised to be introduced so that the use of private vehicles is reduced.

1.1 COMPANY PROFILE


KEY PLAYERS IN INDUSTRY

Page 18 of 74

These are some of the passenger airlines which are efficiently working in Indian Aviation.

1.2 PRODUCT PROFILE


JET AIRWAYS
Jet Airways is an airline based in Mumbai, India. It is Indias third largest airline after Air India and Kingfisher Airlines. It operates over 400 daily flights
Page 19 of 74

to 62 destinations worldwide. In February 2009, Jet Airways had 846,000 passengers, making it the second largest airline in India behind Kingfisher Airlines. Jet Airways was incorporated as an air taxi on 1st April 1992. It started Indian commercial airline operations on 5th may 1993 with a fleet of four leased Boeing 737-300 aircraft. In January 1994, a change in the law enabled Jet Airways to apply for scheduled airline status, which was granted on 4 th January 1995. It began International operations to Sri Lanka in March 2004. While the company is listed on the Bombay Stock Exchange, 80 % of its stock is controlled by Naresh Goyal (through his ownership of Jets company, Tailwinds) and has 10,017 employees.

SWOT ANALYSIS OF JET AIRWAYS Strengths


Market leader- It had a market share of 27% in FY09. It has been repeatedly adjudged as Indias Best Domestic Airline.

Page 20 of 74

Experience exceeding 14 years- Jet airways began its operations on 4th January 1995. Its international operations commenced from March 2004. Membership of IATA- Active Member and a member of the IATA Clearing House. Also a participant of the IATA Multilateral Agreement for Passengers and Cargo Traffic.

Largest fleet size- Jet airways currently operates a fleet of 85 aircraft. Kingfisher operates a fleet of 75 aircrafts.

Weaknesses
Loosing domestic market share- The entry of various low cost carriers like Spice Jet, Go Air, Kingfisher Red, etc in the domestic segment has resulted in the decrease in its market share. Lesser fleet age- Jet airways old fleet with average age of 4.79 years as compared to Kingfisher airlines with 6.1 years, & others with 5.3 years.

Scope for improvement in flight service- It can make efforts to provide five star services.

Weak brand promotion- They have not hired big brand ambassadors, also the frequency of TV advertisements is very low.

Opportunities

Page 21 of 74

Untapped air cargo market. Scope in international service & tourism- Presently it is operating on 20 international destinations this number can be increased in the near future. Integrate more long haul aircrafts. Increase in domestic flight density- Jet airways flew 24.4% passengers in 2008 which is expected to increase in the coming years.

Threats Stiff competition in the Economy class from the Low Cost Carriers. Competition in the Business class from newcomers like Kingfisher. Huge investment blocked in future fleet expansion.

CHP 2: SCOPE OF THE STUDY


As our topic is emerging trends in aviation industry giving special reference to jet airways, we have targeted several locations and places all over south
Page 22 of 74

Mumbai. We came across different types of people with different answers and targeted different age groups.

a) We targeted the and travel agencies for booking airline tickets throughout South Mumbai such as Classic travel Agencies, Stop n Shop, SOTC, Thomas Cook, Kuoni etc for filling our questionnaire.

b) We even outside corporate houses and offices where working class people are there as they do a lot of travelling to get the better idea.

c) We went outside numerous colleges to get our questionnaire filled by random students.

d) We even visited famous hangouts places and coffee shops for the same.

2.1 STATEMENT OF PROBLEM

Page 23 of 74

Through the questionnaire filled by us throughout South Mumbai including travel agencies, corporate houses, colleges and cafs etc we came across certain issues and problems which we faced by our viewers. Emerging trends in Aviation Industry is a very broad subject to ask common man as this subjective concept is the least bothered by the people except those who have interest in it. Some other factors that created problems are as follows: a) The questionnaire was mostly filled by college going people which rarely travel by airlines and if they do, then they dont have much insight on the industry. b) Another problem here was the working people as they might be frequent traveler but they dont know technical know-how of the Aviation Industry. c) People might have just answered the questionnaire based on certain reviews they have heard about the Airlines which may be a rumor and not by their analytical knowledge. d) Aviation is macro subject matter and it is very difficult to get out proper inference from the relatively limited reach of the survey.

2.2 OBJECTIVE

Page 24 of 74

The objective of our Research Methodology project is: To understand the perception of travelers towards Indian Aviation Industry. To determine the role of Aviation Sector in developing economy like India.

To show the evolution of Aviation Industry.

2.3 STATEMENT OF HYPOTHESIS


Page 25 of 74

There are two hypothesis in my research project they are:


1.

H0 = Indian Aviation Industry hasnt improved in overall performance. H1 = Indian Aviation Industry has improved in overall performance.

2.

H0 = Indian Government hasnt played an effective role in development of Aviation Industry. H1 = Indian Government has played an effective role in development of Aviation Industry.

Page 26 of 74

2.4 LIMITATIONS
There were few limitations faced by us while carrying out this research. They were as follows: 1. Limited people: The questionnaire to be filled up for the survey was submitted to only 100 people. Hence a vast survey could not be conducted.

2. Isolated views: We could only get the survey done from the residents of South Mumbai while suburban residents were segregated from the survey.

3. Some of our answers are from the students who obviously are not regular fliers and from the ones who are frequent fliers.

4. Some of the people who filled our questionnaire have filled it just for the sake of doing so and have not taken proper interest in doing it.

Page 27 of 74

CHP 3: REVIEW OF LITERATURE


Aviation Outlook
Courtesy: Centre for Asia Pacific Aviation (CAPA)

Theres a silver lining behind every dark cloud. This holds true for the aviation sector too as the turbulence which hit it in 2008 is likely to clear up a little this year. But thats likely only in the third quarter of this year, says Policy Outlook 2009, a report by the Centre for Asia Pacific Aviation (CAPA). The demand for the first half of 2009-10 will be weak, but improve later. Though there will be airline losses this year too, the magnitude will be manageable. Over the last three to four years, the industry has lost over $3 billion. CAPA, in fact, had projected in 2005 that the period until 2010 would be largely profitless, and the true potential of the sector would only emerge after that, says Kapil Kaul, CEO Indian Subcontinent & Middle East. So 2009 will dictate who emerges a winner. If oil prices stay below $50, airline losses will be significantly reduced, he says. In fact, air traffic for 2009-10 could return to 2007-08 levels. But Sushi Shyamal, associate director, Ernst & Young, says that hoping for low crude prices may not be the best bet for Indian aviation. Though its highly unlikely that crude will reach the high levels that were ruling sometime back, in the foreseeable future, they are expected to stabilize at price levels higher than the current prices. The key to profitability for airlines would hinge on streamlining operations and optimizing routes. Plus, if additional sops are

Page 28 of 74

given to this sector in terms of FDI relaxations, fiscal bailout and a lower interest rate regime, it could help the sector to recover. International traffic, especially to West and South Asia, remains strong. Premium traffic, however, has been declining and may seriously impact Indian carriers such as Jet Airways, Kingfisher and Air India. Traffic to Europe and North America is likely to remain weak due to the economic slowdown there and excess capacity on UK/Europe routes. Inbound traffic too has been hit due to the Mumbais terror attacks. But all is not doom and gloom, it predicts. Much depends on the economy, fuel prices and political/security stability. The report says as per the long standing proposal, if the foreign airlines are permitted to invest up to 25% in domestic airlines, it would give them a lifeline. This would see direct investment of $750 million to $1 billion based on an industry valuation of $3-4 billion (excluding AI). However, most prospective airline investors would probably seek at least 26% to secure a seat on the board, it says. Low-cost carriers (LCC) such as AirAsia, Ryanair, easyJet, Jetstar and Air Arabia may also evaluate opportunities in India once regulations permit. Its also likely that the regulation that domestic airlines must operate for at least five years and operate a minimum fleet size of 20 aircraft before being allowed to go international, may be relaxed to three years. This would help LCCs like SpiceJet and IndiGo. Restrictions on new airline entry may continue in 2009, but licenses may be issued for those planning to start operations in 2010. This would be due to concerns regarding overcapacity in the sector, says Shyamal. The report further says that there will be pressure on full service carriers to reduce losses this year. Jet, AI and Kingfisher may need cash cover till 2010.
Page 29 of 74

Though the government has infused fresh blood into airlines last year, what with the reduction of oil prices, the overall fiscal environment is uncertain. LCCs continue to be vulnerable. The new management in SpiceJet is still to take hold of the situation and the present cash position may last a few months more. Indigos losses may not be very different either, but it continues to deliver a robust operational performance, says the report. Will we once again fly high?

Page 30 of 74

DOLLAR AFFECTING THE AVIATION INDUSTRY


Economic times 3rd march 2008

With the dollar appreciating against the rupee, domestic carriers will have to cough up a lot more and the operating costs will shoot up. Airlines such as Jet Airways, Kingfisher Airlines, SpiceJet and Air India make substantial payments in dollars towards the rentals of leased aircraft, maintenance, spare parts, foreign crew and pilots Our lease payments and engineering costs are tied to the dollar. If the currency situation continues this way for a month, achieving our breakeven targets seems a distant dream, said a senior Air India official. Mark Martin, analyst at research firm KPMG told ET, This will push up airlines operating costs by 10%, forcing carriers to revise their breakeven targets. The rupee depreciation is having an adverse impact on expatriate salaries, airport charges overseas and interest rates on loans.

Although fuel prices have come down, the dollar has strengthened. So, there will be no effect as such on their bottomlines, Mr Martin added. M Thiagarajan, managing director of Paramount Airways said, A stronger dollar has a direct impact on the balance sheet, pushing up operational costs. Airlines pay monthly lease rental of around Rs 40 lakh for a single aircraft. This has crossed Rs 50 lakh due to the depreciating rupee. Apart from currency impact, parking fees, navigation charges and employee costs have increased manifold over the past two quarters, said Emkay Global research
Page 31 of 74

head

Daljeet

Kohli.

The dollar-denominated costs have risen by 25%. The high taxation is having an impact on the industry. The economic downturn is also taking a toll on traffic. These factors will increase the airlines losses, said an analyst at a foreign brokerage firm. The Indian aviation sector witnessed a 9% traffic slump in 2008.

The combined losses of Indian carriers are estimated to rise from about Rs 4,000 crore in 2007-08 to Rs 10,000 crore in 2008-09, primarily due to the high fuel costs last year. Meanwhile, the price of jet fuel was lowered by 7% on Saturday, the eleventh reduction since September last year. In Mumbai, jet fuel prices have come down to Rs 27,861 per kl.

Page 32 of 74

THE FLOWER OF SERVICE


Core product surrounded by clusters of supplementary services
Source: Christopher Lovelock pg. 233

The core service of an airline is the service of transport. The supplementary services are classified into eight clusters & each one is analyzed with respect to the airline industry: Information This aspect of supplementary service is common for every person that needs information about the organization. In case of airline industry, upto date information regarding flight schedules, ticket fares, information about promotion schemes etc available to customers. Customers can avail of this information literally at their fingertips today with every airline starting its own website which gives complete details to the customer & also entertains queries. It also includes providing information to employees regarding new policies affecting the airline & equipping them with enough information, which the customers might demand. Extensive training is provided to in-flight attendants regarding handling customer queries, knowledge about the airplane itself, knowledge about cuisine etc. Consultation

Page 33 of 74

This aspect of supplementary services can be customized according to the needs of the customer. It is more in the case of people processing and high personnel-contact services. Airlines are moving more actively into the role of consultant today. They are doing away with the travel agents & designing & selling packaged tours to consumers directly. In this aspect they often act as consultants to the customer, by giving him advice & suggestions regarding the type of plan he can choose, the benefits he will get the mode of travel he should choose etc. Another aspect to consultation at airlines is when the customer approaches the airline regarding traveling to particular destination, the airline gives him a variety of choices of routes that he can take. In some cases airline may also design special menus & benefits in consultation with its frequent fliers by keeping in constant touch with them & asking them for suggestion as to what they want in their airline which will make their experience more comfortable. Order taking The order taking procedure is essentially the booking procedure of the airlines. The important aspect to be noted here is that the procedure is smooth, easily understood & fast. Reservation of airline tickets is now easy and reliable since it is fully computerized. There are 24 hours reservations. Passengers can specify their seat preferences at the time of reservation. Most airlines use the telephone, fax, and email methods of booking. The emphasis here is on fast booking & at the same time getting the required information form the customer. This is done by establishing a standard reservation procedure & format thus reducing the risk of inconsistent service

Page 34 of 74

delivery. The online booking system also facilitates better order taking & processing. The scheduling aspect assumes importance as reservations on the wrong flight to the wrong place are likely to be unpopular.

Hospitality & Caretaking With the increased competition today in the airline industry & the increasing similarity of services offered by each airline, hospitality has emerged as a key-differentiating factor between one airline & the other. The hospitality aspect of an airline is tested right form the time of the reservation (courtesy of the booking official) to the airlines desk at the airport to the actual in-flight travel (the attitude of the flight attendants) to the post flight help extended. Safekeeping In airlines the safekeeping issue is that of safeguarding the customers baggage. Baggage allowances are offered about 30 kgs of check-in baggage is allowed. Passengers carrying international tickets are given further allowance of around an added 3Okgs Priority baggage delivery is offered to members. The customers entrust his baggage o the airline & it is the airlines responsibility to keep it in a proper condition. Children and infants usually travel along with their parents and guardian. In case of unaccompanied minors, customer service staff renders all assistance like checking in and escorting up to the aircraft and handing over to the seniorPage 35 of 74

most cabin attendant on board the flight. He is looked after on board the flight right upto the point flight reaches the destination and he is received by his guardian. Exceptions Special requests airline very often receive special requests form customers with regards to meal preferences, special amenities for elderly people or children., medical needs etc. these needs have to considered & acceded to wherever possible Handling of customer suggestions / complaints every airline today has a customer service center which entertains customer suggestions & complaints. On the flight, customers are often asked for their opinion regarding service equality. Many corporate frequent travelers are consulted when the airline decides to make any new change. Billing & payment The billing procedure in airlines is simple. The options available to the customer are plenty including credit card & travelers cheque. Airlines use the open account system with their corporate clients. Frequent fliers are also given special payment privileges.

Page 36 of 74

INDIAS AVIATION INDUSTRY: OVERVIEW


MITRE Corporation/CAASD, dec 7, 2009

The civil aviation sector in India had been growing at a dramatic rate into 2008; however the global economic recession in 2009 negatively affected this growth. During fiscal year 2005-06 (April 1, 2005 to March 31, 2006), the sector experienced a 22 percent increase in domestic air travel. International air travel grew 15 percent, while air cargo grew at an annual rate of 20 percent. During fiscal year 2006-07, total passenger traffic grew 27.2 percent, while cargo traffic grew 11.2 percent. This year total aircraft movements increased 27.5 percent. However, in fiscalyear 2008-09, the global economic slump and higher fuel prices adversely impacted growth, resulting in a 5 percent decline in domestic passenger traffic. Domestic air cargo continued to grow at 14.5 percent. With the economy now stabilizing, domestic air traffic is projected by various sector experts and observers to grow by up to 180 million passengers and international traffic is expected to increase by 50 million passengers by 2020. International traffic is expected to grow at an average annual rate of 8 percent by 2013 and by 7 percent from 2014 to 2023. Domestic traffic will
Page 37 of 74

experience a slower growth rate of 3.4 percent annually until 2013 and increase to an average rate of 8 percent until 2023. International passenger growth will average 10 percent until 2013 and 9 percent until 2023. Annual growth in domestic and international cargo operations is estimated to increase by 4.5 percent and 12 percent annually until 2013. In the last few years, the sector experienced tremendous growth for a number of new air carriers providing domestic services. Starting from a relatively small base, the civil aviation sector in India faces the prospect of significant expansion as the overall economy recovers and India retains the second-highest growth rate worldwide. Some 639 new commercial jet aircraft were ordered by November 2008 and the number of General Aviation (GA) aircraft is projected to grow to 1,000 by 2020. Much of this significant growth has been made possible by a combination of favorable policies and timely initiatives that liberated much of the sector from the earlier highly regulated regime. These include: An Open-Sky policy adopted in April 1990. The policy allowed air taxi operators to operate flights from any airport and decide their own flight schedules, cargo, and passenger fares. Repeal of the Air Corporation Act effective from March 1, 1994 that led to: Removal of monopoly of air corporations on scheduled services, Ability of private airlines to operate scheduled services. Conversion of Indian Airlines and Air India (national flag carriers) to limited companies. Increased scope for private participation in the national carriers.

Page 38 of 74

AAI was set up on April 1, 1995 by merging the International Airport Authority of India and the National Airport Authority of India. AAI was designated to handle all civil air traffic infrastructure matters. In August 1996, the Government of India (GOI) allowed the private sector to set up air cargo complexes in a bid to ensure smooth movement of export cargo. Furthermore, domestic and foreign investors, including non-resident Indians (NRIs), were invited to participate in the development of infrastructure support at select airports. Cochin International Airport, the first private airport, began operations in June 1999. The United Progressive Alliance (UPA), which assumed political leadership of the Union Ministry on May 22, 2004, renewed its commitment to continue liberalization in the sector. The Honorable Minister Praful Patel assumed leadership of MOCA and was re-elected in 2009. The U.S. and India Aviation Cooperation Program (ACP) was established in 2007 as a Public Private Partnership (PPP) between the U.S. Federal Aviation Administration (FAA), the U.S. Trade and Development Agency (USTDA), U.S. companies, and the Government of India. Establishment of 103 bilateral air service agreements as of 2009. Final agreements and the transfer of Mumbai and Delhi Airports under PPP took place in May 2006. The first phase of modernization at Delhi Airport started in January 2007 and is expected to be completed by March 2010. The modernization work at Mumbai Airport started in January 2007 and is expected to be finished this year. Modernization of Kolkata and Chennai Airports started
Page 39 of 74

in 2008 and will be completed by either 2010 or 2011. The Greenfield International Airports at Bangalore and Hyderabad started commercial operations in 2008. The Airport Economic Regulatory Authority (AERA) Bill was passed by the Indian Parliament to ensure that Indias aviation infrastructure meets cost, efficiency, and service targets by making policies consistent with the International Civil Aviation Organization (ICAO) standards. The GOI merged Air India and the Indian Airlines to form the National Aviation Company of India Limited (NACIL), which consolidated international and domestic flight operations. Based on the strategic and guiding principles of the ICAO ATM vision of global harmonization, India developed a Future Indian Air Navigation System (FIANS) Master Plan for seamless airspace operations. Clearly, these are interesting times for identifying investment opportunities for those who follow civil aviation sectors around the world. External commercial borrowing to finance aviation infrastructure development increased from $145 million in fiscal year 2005-06 to $4.74 billion in fiscal year 2007-08, but decreased due to the economic downturn during fiscal year 2008-09 to $1.91 billion. However, the direct investment potential of the sector is about $9 billion, not including spill-over benefits and positive externalities. In order to facilitate overall economic growth, these investments will have to take place in a short period of time. For a country that is in the middle of a transition process involving sector and institutional reforms, materialization of new opportunities may take time. While some investments and business opportunities may be closer to fruition, many others depend on the speed at which new reforms are implemented, economic growth is sustained, and bureaucratic procedures are relaxed. The first section of this report provides a broad overview of the economy and the civil aviation sector. The second

Page 40 of 74

section documents investment and business opportunities, in different phases from conceptualization to maturation, for possible involvement by U.S. firms.

ANALYZING SERVICES PROVIDED BY JET AIRWAYS


The aim of the project is to comparatively analyze the services being provided by Jet Airways to its customers with other major airlines of Indian Aviation Industry. An exploratory research has been done for the purpose of critically evaluating the various aspects of customer relationships. The required data has been gathered by a comparative questionnaire based on the services such as reservation on tickets, delay of flight and behaviour of the staff, baggage and handling and about the meal provided in the aircrafts , it is filled by people who have their own experience. Besides that various books, magazines and websites are also consulted. Based on the data SPSS analysis is used for evaluating the regression and drawing graphs. According to the analysis suitable recommendations are given. Further a case study is made on the project topic.

Page 41 of 74

Questionnaire 1) Are you a frequent flyer? YES 2) You prefer to travel by? JET AIRWAYS GO AIR KINGFISHER INDIGO AIRLINES NO

3) Have you ever traveled by Jet Airways ? YES NO

4) Which Airlines consumes lesser time for reserving tickets? JET AIRWAYS GO AIR KINGFISHER INDIGO AIRLINES

5) Which airlines check in procedures are more convenient than other airlines? JET AIRWAYS GO AIR KINGFISHER INDIGO AIRLINES

6) Which Airlines provides you better information in case of delay of flight? JET AIRWAYS GO AIR KINGFISHER INDIGO AIRLINES

7) Which airlines provide you better baggage handling facilities, timely and with care?
Page 42 of 74

JET AIRWAYS Go Air

KINGFISHER Indigo airlines

8) Which airlines seating arrangement is more systematic? JET AIRWAYS Go Air KINGFISHER Indigo airlines

9) Which airlines according to you provides good quality of meals? JET AIRWAYS Go Air KINGFISHER Indigo airlines

10) Which airline provides you best in flight entertainment ? JET AIRWAYS Go Air KINGFISHER Indigo airlines

11) Which airlines provides all the services according to your expectations ? JET AIRWAYS Go Air KINGFISHER Indigo airlines

Page 43 of 74

CHP 4: METHODOLOGY
Methodology can be:
1. "the analysis of the principles of methods, rules, and postulates employed by a discipline" 2. "the systematic study of methods that are, can be, or have been applied within a discipline". Methodology includes a philosophically coherent collection of theories, concepts or ideas as they relate to a particular discipline or field of inquiry: Methodology refers to more than a simple set of methods; rather it refers to the rationale and the philosophical assumptions that underlie a particular study relative to the scientific method. This is why scholarly literature often includes a section on the methodology of the researchers. This section does more than
Page 44 of 74

outline the researchers methods (as in, We conducted a survey of 50 people over a two-week period and subjected the results to statistical analysis, etc.); it might explain what the researchers ontological or epistemological views are. Another key (though arguably imprecise) usage for methodology does not refer to research or to the specific analysis techniques. This often refers to anything and everything that can be encapsulated for a discipline or a series of processes, activities and tasks. Examples of this are found in software development, project management and business process fields. This use of the term is typified by the outline who, what, where, when, and why. In the documentation of the processes that make up the discipline that is being supported by this methodology that is where we would find the "methods" or processes. The processes themselves are only part of the methodology along with the identification and usage of the standards, policies, rules, etc.

We took a survey of about 100 people and asked them what their views on Emerging trends in Aviation Industry are. We went to corporate offices, travel agencies etc and gave them questionnaires to fill up. The answers filled by these people were analyzed and the results were obtained using the method chi-square.

Page 45 of 74

4.1 RESEARCH DESIGN


The Formidable problem that follows the task of defining the research problem is the preparation of the design of the research project, popularly known as the research design. Decisions regarding what, where, when, how much, by what means concerning an inquiry or a research study constitute a research design. A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure In fact, the research design is the conceptual structure within which research is conducted; it constitutes the blue print for the collection, measurement and analysis of data. As such the design includes an outline of what the researcher will do from writing the hypothesis and its operational implications to the final

Page 46 of 74

analysis of data. More explicitly, the design decisions happen to be in respect of: i. What is the study about? Ans: Emerging trends in aviation industry giving special reference to Jet airways.

ii.

Why is the study being made? Ans: The study is being made to find out whether there is change in Indian Aviation Sector or not.

iii.

Where will the study be carried out? Ans: The study was carried out near colleges, travel agencies and corporate offices as we felt such people could answer the questionnaire more pertinently.

iv.

What techniques of data collection will be used? Ans: Questionnaires were submitted to people and the data was collected. Internet and the library also helped us with the collection of data.

v.

How will the data be analyzed? Ans.: The data will be analyzed using chi-square and the hypothesis shall be confirmed.
Page 47 of 74

4.2 RESEARCH INSTRUMENT


The research instrument used by us was a questionnaire. The questionnaire contained the questions which would further help us with our survey.

Page 48 of 74

4.3 SOURCE OF DATA


The task of data collection begins after a research problem has been defined and research design/plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data viz., primary and secondary. The primary data those which are
Page 49 of 74

collected afresh and for the first time, and thus happen to be original in character. The secondary data, on the other hand, are those which have already been collected by someone else and which have already passed through the statistical process. The methods of collecting primary and secondary data differ since primary data are to be originally collected, while in case of secondary data the nature of data collection work is merely that of compilation. We describe the different methods of data collection, with the pros and cons of each method.

The sources of data used by us were: a) Primary data :- questionnaire b) Secondary data :- Internet, journals, magazines, blogs

4.4 SAMPLING SIZE


Page 50 of 74

In sampling analysis the most ticklish question is: What should be the size of the sample or how large or small should be n? If the sample size (n) is too small, it may not serve to achieve the objectives and if it is too large, we may incur huge cost and waste resources. As a general rule, one can say that the sample must be of an optimum size i.e., it should neither be excessively large nor too small. Technically, the sample size should be large enough to give a confidence interval of desired width and as such the size of the sample must be chosen by some logical process before sample is taken from the universe. Sample size relates to how many people to pick for the study. The question often asked is: How big a sample is necessary for a good survey? This depends on: factors such as a) the researcher hypotheses or questions; b) level of precision, c) population homogeneity, d) sampling technique used; e) monetary and personal resources; and f) the amount of time available According to the law of large numbers, the larger the sample size, the better the estimates, or the larger the sample the closer the true value of the population is approached. The sample size taken by us was 100. We interviewed 100 people and took their views in our questionnaire.

4.5 SAMPLING UNIT


Page 51 of 74

The sampling unit was done precisely in South Mumbai at places like colleges, travel agencies, corporate offices and coffee shops.

4.6 SAMPLING FRAME


Page 52 of 74

Sampling frame (synonyms: sample frame, survey frame) is the actual set of units from which a sample has been drawn: in the case of a simple random sample, all units from the sampling frame have an equal chance to be drawn and to occur in the sample. In the ideal case, the sampling frame should coincide with the population of interest. Consider, for example, a survey aimed at establishing the number of potential customers for a new service in the population of New York City. The research team has drawn 1000 numbers at random from a telephone directory for the city, made 200 calls each day from Monday to Friday from 8am to 5pm and asked some questions. In this example, population of interest is all inhabitants of the city; the sampling frame includes only those New Your City dwellers who satisfy all the following conditions:

has a telephone; the telephone number is included in the directory; likely to be at home from 8am to 5pm from Monday to Friday; not a person who refuses to answer all telephone surveys.

The sampling frame in this case definitely differs from the population. For example, it under-represents the categories which either have no a telephone (e.g. the most poor), have an unlisted number, and who were not at home at the time of calls (e.g. employed people), who dont like to participate in telephone interviews (e.g. more busy and active people). Such differences between the sampling frame and the population of interest is a main cause of bias in survey s and other methods aimed at random sampling.

Page 53 of 74

The sampling frame chosen by us were the youth crowd as well as office going people as they are the ones who frequently travel by air and can easily answer the questions relating to Aviation Industry without hesitation.

Page 54 of 74

4.7 SAMPLING METHOD


Within any of the types of frame identified above, a variety of sampling methods can be employed, individually or in combination. Factors commonly influencing the choice between these designs include:

Nature and quality of the frame Availability of auxiliary information about units on the frame Accuracy requirements, and the need to measure accuracy Whether detailed analysis of the sample is expected Cost/operational concerns

The Sampling method used by us is Simple Random Sampling (SRS) In a simple random sample (SRS) of a given size, all such subsets of the frame are given an equal probability. Each element of the frame thus has an equal probability of selection: the frame is not subdivided or partitioned. Furthermore, any given pair of elements has the same chance of selection as any other such pair (and similarly for triples, and so on). This minimizes bias and simplifies analysis of results. In particular, the variance between individual results within the sample is a good indicator of variance in the overall population, which makes it relatively easy to estimate the accuracy of results.

Page 55 of 74

4.8 STATISTICAL TOOL USED


The statistical tool used by us is Chi-Square. The chi-square test is an important test amongst the several tests of significance developed by statisticians. Chi-square, symbolically written as 2 (Pronounced as Ki-square), is a statistical measure used in the context of sampling analysis for comparing a variance to a theoretical variance. As a non-parametric*test, it can be used to determine if categorical data shows dependency or the two classifications are independent. It can also be used to make comparisons between theoretical populations and actual data when categories are used. Thus, the chi-square test is applicable in large number of problems. The test is, in fact, a technique through the use of which it is possible for all researchers to (i) test the goodness of fit; (ii) test the significance of association between two attributes, and (iii) test the homogeneity or the significance of population variance.

Page 56 of 74

CHP 5:DATA ANALYSIS AND INTERPRETATION, TABLES, CHARTS AND INFERENCES.


The five questions taken by us with a common hypothesis are as follows: 1. Companies giving discounts and offering various schemes have been successful in attracting target customers? Strongly Agree Agree Somewhat Agree Disagree

2. Did introduction of LCCs help in the rise of aviation industry? Strongly Agree Agree Somewhat Agree Disagree

3. Do our airports need better infrastructure facilities? Strongly Agree Agree Somewhat Agree Disagree

4. Do you feel that the selection and training programme of crew members and ground staff need to be revived? Strongly Agree Agree Somewhat Agree Disagree

5. Has E-Ticketing proved to be a good interface for travelers to book tickets?

Page 57 of 74

Strongly Agree Agree

Somewhat Agree

Disagree

SOLUTION: H0 = Indian Aviation Industry hasnt improved in overall performance. H1 = Indian Aviation Industry has improved in overall performance.

The method to test the hypothesis is Chi-Square and the results obtained were as follows:

Crosstabs
[DataSet0]

Case Processing Summary Cases Valid N GENDER * DIMENSIONS NUMBER OF RESPONDENTS * DIMENSIONS a. Number of valid cases is different from the total count in the crosstabulation table because the cell counts have been rounded. 500a 100.0% 0 .0% 500 100.0% 500 Percent 100.0% N 0 Missing Percent .0% N 500 Total Percent 100.0%

Page 58 of 74

GENDER * DIMENSIONS

Crosstab Count DIMENSIONS STRONGLY AGREE GENDER MALE FEMALE Total 85 43 128 AGREE 134 68 202 SOMEWHAT AGREE 99 39 138 DISAGREE 22 10 32 Total 340 160 500

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 1.301a 1.318 .706 500 df 3 3 1 sided) .729 .725 .401

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 10.24.

Page 59 of 74

NUMBER OF RESPONDENTS * DIMENSIONS


Crosstab Count DIMENSIONS STRONGLY AGREE NUMBER OF RESPONDENTS 10 22 39 43 68 85 99 134 Total 0 0 0 43 0 85 0 0 128 AGREE 0 0 0 0 68 0 0 134 202 SOMEWHAT AGREE 0 0 39 0 0 0 99 0 138 DISAGREE 10 22 0 0 0 0 0 0 32 Total 10 22 39 43 68 85 99 134 500

Page 60 of 74

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 1.500E3a 1.246E3 18.118 500 df 21 21 1 sided) .000 .000 .000

a. 8 cells (25.0%) have expected count less than 5. The minimum expected count is .64.

CONCLUSION: Since the Chi-Square calculated i.e 1.301 is lower than the critical value (table value) i.e 7.815 at 5% level of significance, we reject H1 and accept H0. Therefore, Indian Aviation Industry hasnt improved in overall performance.

Page 61 of 74

Another five questions taken for common hypothesis are:

1. Have government policies been able to attract new players in the market? Yes No

2. Have government been able to tackle problems and financial losses suffered by these companies? Yes No

3. Should foreign players be allowed for upliftment of Indian aviation sector? Yes No

4. Is there ample security at the Indian airports? Yes No

5. Have fuel prices affected the industry?

Yes

No

Page 62 of 74

SOLUTION: H0 = Indian government hasnt played an effective role in development of Aviation Industry. H1= Indian government has played an effective role in deveploment of Aviation Industry.

The method to test the hypothesis is Chi-Square and results obtained were as follows:
Crosstabs
[DataSet1]

Case Processing Summary Cases Valid N GENDER * DIMENSIONS NUMBER OF RESPONDENTS * DIMENSIONS a. Number of valid cases is different from the total count in the crosstabulation table because the cell counts have been rounded. 500a 100.0% 0 .0% 500 100.0% 500 Percent 100.0% N 0 Missing Percent .0% N 500 Total Percent 100.0%

Page 63 of 74

GENDER * DIMENSIONS

Crosstab Count DIMENSIONS YES GENDER MALE FEMALE Total 203 97 300 NO 137 63 200 Total 340 160 500

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Continuity Correctionb Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Casesb .038 500 1 .845 .038a .010 .038 df 1 1 1 sided) .845 .922 .845 .922 .462 Exact Sig. (2sided) Exact Sig. (1sided)

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 64.00. b. Computed only for a 2x2 table

Page 64 of 74

NUMBER OF RESPONDENTS * DIMENSIONS

Crosstab Count DIMENSIONS YES NUMBER OF RESPONDENTS 63 97 137 203 Total 0 97 0 203 300 NO 63 0 137 0 200 Total 63 97 137 203 500

Page 65 of 74

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 5.000E2a 673.012 135.631 500 df 3 3 1 sided) .000 .000 .000

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 25.20.

CONCLUSION: Since the Chi-Square calculated 0.38 is lower than the critical value i.e 3.841 we reject H1 and accept H0. Therefore, Indian government hasnt played an effective role in development of Aviation Industry.

Page 66 of 74

CHP 6: FINDINGS
From the above research it, shows that the hypothesis proved null in the two cases of hypothesis taken by us, hence we can say that the hypothesis of our research project is H0 i.e Indian Aviation industry hasnt improved in overall performance and Indian Government hasnt played an effective role in development of Aviation Industry.

Type I error, also known as an "error of the first kind", an error, or a "false positive": the error of rejecting a null hypothesis when it is actually true. Plainly speaking, it occurs when we are observing a difference when in truth there is none, thus indicating a test of poor specificity. An example of this would be if a test shows that a woman is pregnant when in reality she is not. Type I error can be viewed as the error of excessive credulity.

Page 67 of 74

6.1 SUGGESTIONS
We would like to suggest that, each and every airline company should revive their training programme of their cabin crew as well as the ground staff. There should regular workshops on the innovative techniques regarding the same. The pilots should be trained efficiently and also sh0uld have experience enough to fly long distance planes. The recruitment of ground staff and pilots should be done very carefully and precisely by the experts in the field of aviation in respective companies. Selecting in-efficient staff and crew members will hamper their company adversely in long run. Also one shouldnt recruit a person just because he/she is related to you as there may be more efficient people than them. Another suggestion we would like to give is that there should ample security at all airports whether its international or national. As security is the prime concern of travelers today. Also there should be size-able infrastructure facilities at all airports as India is certainly lacking in them. The government should raise proper funds to solve this infrastructure problem at famous airports. Government should also regulate policies which help in up-liftment of Aviation sector and also should give certain subsidy to airline companies as a motivation token for them to work more effectively. Lastly Indian Aviation certainly has potential to be one of the major Industry in the world of Aviation and the evolution the industry from the past decade is commandable.

Page 68 of 74

6.2 CONCLUSION
According to my research project Indian Aviation Industry needs to improve in overall performance though there is remarkable change in Aviation Industry but the performance is not at par with other Aviation Industry in the world. Also Government of India should implement more and more beneficial policies and rules for the sector in order to up root the Aviation barriers in the Industry. Airline industry in India is plagued with several problems. These include high aviation turbine fuel (ATF) prices, rising labour costs and shortage of skilled labour, rapid fleet expansion, and intense price competition among the players. But one of the major challenges facing Indian aviation industry is infrastructure constraint. Airport infrastructure needs to be upgraded rapidly if Indian aviation industry has to continue its success story. Some steps have been taken in this direction. Two of India's largest airports-Mumbai and New Delhiwere privatized recently. Two Greenfield airports are coming up at Bangalore and Hyderabad in southern India. Investments are pouring into almost all aspects of the industry, including aircraft maintenance, pilot training and air cargo services. The future prospects of Indian aviation sector look bright. Consolidation will ease competition and give pricing power to the dominant players and as a result of higher fares even smaller players like SpiceJet stand to benefit. Generally it is believed that the aviation sector in any country grows at twice the growth rate of its GDP. In India, the GDP is growing at more than 7-8% per annum, which makes the growth rate in the aviation sector to be in excess of 15%. Aviation industry in India is expected to grow at a much better rate than this because the industry is at a nascent stage with lower base and low penetration.

Page 69 of 74

CHP 7: ANNEXURE
Questionnaire
We the students of LALA LAJPATRAI COLLEGE OF COMMERCE AND ECONOMICS are doing a project on Emerging Trends in Aviation Industry Giving Special Reference to Jet Airways and would be obliged if we could get some amount of co-operation from you. Name : Age : Gender : Occupation :

1. Are you a frequent flyer? Yes No

2. Which airline would you prefer to travel by? Jet Airways Indigo Kingfisher Go Air

3. What criteria would yo prefer while selecting a particular flier? (ANY 1) Price Service Safety On-time Arrivals

4. Are flight tickets affordable for passengers? Yes No

5. Companies giving discounts and offering various schemes have been sucessful in attracting target customers?
Page 70 of 74

Strongly Agree Agree

Somewhat Agree

Disagree

6. Did introduction of LCCs help in the rise of aviation industry? Strongly Agree Agree Somewhat Agree Disagree

7. Do our airports need better infrastructure facilities? Strongly Agree Agree Somewhat Agree Disagree

8. Is there ample security at the Indian airports? Yes No

9. Have fuel prices affected the industry? Yes No

10.Has E-Ticketing proved to be a good interface for travelers to book tickets? Strongly Agree Agree Somewhat Agree Disagree

11.Have government policies been able to attract new players in the market? Yes No

12.Have government been able to tackle problems and financial losses suffered by these companies? Yes No

13.Should foreign players be allowed for upliftment of Indian aviation sector?


Page 71 of 74

Yes

No

14.Do you feel that the selection and training programme of crew members and ground staff need to be revived? Strongly Agree Agree Somewhat Agree Disagree

WE THANKYOU FOR YOUR PRECIOUS TIME AND CO-OPERATION.

7.1 BIBLIOGRAPHY
www.4ds.com www.epinions.com www.business.headlinesindia.com www.oppapers.com www.icmrindia.org www.jetairways.com www.indiainbusiness.nic.in www.india.gov.in www.indiaimage.nic.in www.ibef.org
Page 72 of 74

dipp.gov.in www.finmin.nic.in www.civilaviatio.nic.in www.google.com

7.2 GLOSSARY
Hypothesis: A hypothesis is a tentative statement that proposes a possible explanation to some phenomenon or event. A useful hypothesis is a testable statement which may include a prediction. Null Hypothesis: A null hypothesis is a statistical hypothesis that is tested for possible rejection under the assumption that it is true (usually that observations are the result of chance). Alternative hypothesis: The alternative hypothesis is the hypothesis used in hypothesis testing that is contrary to the null hypothesis. It is usually taken to be that the observations are the result of a real effect (with some amount of chance variation superposed). Chi-Square: A chi-square test (also chi-squared or 2 test) is any statistical hypothesis test in which the sampling distribution of the test statistic is a chisquare distribution when the null hypothesis is true, or any in which this is
Page 73 of 74

asymptotically true, meaning that the sampling distribution (if the null hypothesis is true) can be made to approximate a chi-square distribution as closely as desired by making the sample size large enough. In statistics, the terms type I error (also, error, false alarm rate (FAR) or false positive) and type II error ( error, miss rate or a false negative) are used to describe possible errors made in a statistical decision process.

Page 74 of 74

You might also like