ECONOMETRICS REPORT

A comparative analysis of services provided by the airline industry

in India (kingfisher vs. jet airways)
Reading seminar report on comparative study between jet airways
and kingfisher on the basis of their services provided

VS

Submitted to:- submitted by:-

MR. Sunil Kumar Amber chourasia

MBA Energy Trading [2nd sem]

 LETTER OF TRANSMITTAL

This report has been under taken for assessment in Econometrics during pursuing the MBA degree at
UPES, Dehradun.

This report was executed in 2nd sem. under the supervision of Mr. Sunil Kumar

Further, I Amber Chourasia, Student of MBA ET 2nd Sem. Hereby declare that this report is my original
work and the analysis and findings are for academic purpose only. This report has not been presented in
any seminar or submitted elsewhere for the assessment or for the award of any diploma or degree.

First of all I would like to thank Mr. Sunil Kumar, my Econometrics lecturer, for giving me the
opportunity to do the report on “A comparative analysis of services provided by the
airline industry in India”.
I would like to thanks all my friends and many website that helped me to collect my information for this
report.
CONTAIN:-

EXECUTIVE SUMMARY

CURRENT SCENARIO OF INDIAN AVIATION INDUSTRY

MAJOR PLAYER IN INDIA

OBJECTIVE

SECONDARY OBJECTIVE

DATA

RESEARCH DESIGN

SAMPLE DESIGN

COMPANY PROFILE”-
JET AIRWAYS

KINGFISHER

STRENGTH AND WEAKNESS

PRIMARY DATA ANALYSIS

ANNEXURE I
REGRESSION ANALYSIS

ANNEXURE II
QUESTIONNAIRE
Executive summary:-
The aim of the project is to comparatively analyze the services provided by jet airways and
kingfisher to its customers in the industry. An exploratory research has been done for the purpose
of critically evaluating the various aspects of customer relationship.

The required data has been gathered by a comparative questionnaire based on the
services such as reservation on ticket, delay of flight and baggage handling and about the meal
provided in the aircraft, it is filled by people who have their own experience. Besides that that
various books, magazines and websites are also consulted.

Current scenario of Indian aviation industry:-

Current Scenario of Indian Aviation Industry The Indian aviation industry is one of the fastest
growing aviation industries in the world. India has 454 airports and airstrips; of these, 16 are
designated international airports. With the liberalization of the Indian aviation sector, aviation
industry in India has undergone a rapid transformation. From being primarily a government-
owned industry, the Indian aviation industry is now dominated by privately owned full-service
airlines and low-cost carriers. Private airlines account for around 75 per cent share of the
domestic aviation market.

There has been phenomenal growth in the Indian aviation sector in 2007-08. India has jumped to
9th position in world's aviation market from 12th in 2006 As per the Ministry of Civil Aviation,
the airline business is growing at 27 per cent per annum in India. During 2007, the domestic
airline passenger traffic has shown a growth of 32.51 per cent. Further, the scheduled domestic
air services are now available from 82 airports as against 75 in 2006.

Market Size Domestic and international traffic is up 45 per cent and 15.1 per cent, respectively.
Between May 2007 and May 2008, airlines have carried 25.5 million domestic and 22.4 million
international passengers. over 135 aircraft have been added in the past two years alone. Centre
for Asia Pacific Aviation (CAPA) estimates domestic traffic to grow 25-30 per cent annually and
international traffic 15 per cent until 2010.

 
Air Traffic Domestic air traffic is likely to more than double and touch 86.1 million passengers
by 2010, up from 32.2 million passengers in 2007, states the market research firm PhoCus.
According to data compiled by the Airports Authority of India (AAI), 24.62 million people flew
on international routes to and from India during April-January 2007-08. This was a growth of
16.2 per cent over the same period last fiscal. The growth of domestic air passengers was at an
even faster rate of 26.1 per cent, with 72.60 million people availing aircraft services.
Simultaneously, freight traffic on both domestic and international routes increased by a healthy
8.2 per cent and 12.6 per cent, respectively.

Airport Infrastructure : 

Airport Infrastructure Of the 454 airports and airstrips in India,16 are designated international
airports. Currently 97 airports are owned and operated by the Airports Authority of India (AAI).
India's Civil Aviation Ministry aims at 500 operational airports in the next 12 years, as per a
report by Centre for Asia Pacific Aviation (CAPA). The government aims to attract private
investment in aviation infrastructure. Mumbai and Delhi airports have already been privatized
and are being upgraded at an estimated investment of US$ 4 billion over 2006-16. A Greenfield
airport is already operational at Bangalore and Hyderabad. These are built by private consortia at
a total investment of over US$ 800 million. A second Greenfield airport being planned at Navi
Mumbai is going to be developed using public-private partnership (PPP) mode at an estimated
cost of US$ 2.5 billion.

35 other city airports are proposed to be upgraded. The city side development will be undertaken
through PPP mode where an investment of US$ 357 million is being considered over the next 3
years. Over the next five years, AAI has planned a massive investment of US$ 3.07 billion - 43
per cent of which will be for the three metro airports in Kolkata, Chennai and Trivandrum, and
the rest will go into upgrading other non-metro airports and modernizing the existing
aeronautical facilities.
 MAJOR PLAYERS IN INDIA

Objective:-
To study the customer satisfaction level for various services provided by jet airways and
kingfisher.

Secondary objective:-

 To find out the preferences of customer of airlines

 To find out the services in which the customer want improvement
Data:-
Primary: has gathered by a comparative questionnaire based on the servies such as
reservevation of tickets,delay of flight and behavior of the staff,baggage and handling about the
meal provided in the aircraft.

Secondary data: has been gathered by the help of various websites and books.

Research design:-
The research design which is used in this project is of exploratory nature. The comparative study
on the service provided by jet airways and kingfisher is made.for this purpose questionnaire is
made to know the customer preferences between the airways.

Sample design:-
A proper questionnaire has been prepared based on various facilities provided by the airways.this
questionnaire have been filled by customers who have their own experiences with these
airlines.the sample size is taken as 20.

Company profile:-
Jet airways:-

et Airways, which commenced operations on May 5, 1993, has within a short span, established
its position as a market leader. The airline has had the distinction of being repeatedly adjudged
India's 'Best Domestic Airline' and has won several national and international awards.

Jet Airways currently operates a fleet of 96 aircraft and with an average fleet age of 4.97 years,
the airline has one of the youngest aircraft fleets in the world.

Flights to 71 destinations span the length and breadth of India and beyond, including New York
(both JFK and Newark), Toronto, Brussels, London (Heathrow), Milan, Johannesburg, Hong
Kong, Singapore, Kuala Lumpur, Colombo, Bangkok, Kathmandu, Dhaka, Kuwait, Bahrain,
Muscat, Doha, Abu Dhabi, Dubai, Jeddah, Sharjah, Riyadh and Dammam. With over 70
destinations, we connect a place every 5 minutes.

Jet Airways' Konnect service operates over 170 flights daily on key domestic routes and is
designed to meet the needs of the low-fare segment with value-for-money fares.
JetLite is a subsidiary of Jet Airways India Ltd. and was acquired by Jet Airways in April 2007.
Positioned as an all-economy, no-frills airline, JetLite operates a fleet of 19 aircraft and flies to
27 domestic & 1 international destination (Kathmandu), operating over 110 flights a day, on
average.

Jet Airways, Jet Airways Konnect and JetLite have a combined fleet strength of 115 aircraft and
operate over 500 flights daily.

Kingfisher:-

Kingfisher Airlines is India’s first and only Five Star airline, rated by Skytrax and the only one to
offer a premium first class. Besides being the first and only airline in India to offer in-flight
entertainment on every seat, Kingfisher offers LIVE TV with 16 channels of live and exciting
content. The airline has received numerous awards for innovation, customer responsiveness and
was voted the “Best New Airline of the Year”, within months of its launch. Kingfisher Airlines is
a part of the UB Group that is one of India’s largest conglomerates with diverse interests and a
global presence. The UB Group is also the largest Indian alcoholic beverages (beer and spirits)
company and the second largest drinks group in the world. .

Kingfisher Airlines covers all segments of air travel from low fares to premium service and
offers most flights by any single airline network in India. With a fleet of 66 aircraft, Kingfisher
Airlines connects 69 domestic and international destinations and operates over 330 flights a day.

Kingfisher Airlines has partnered with British Airways to give you seamless connectivity to
Amsterdam, Brussels, Paris, Manchester, Glasgow, Edinburgh, Lisbon, Aberdeen and Dusseldorf
via London.

Now, you can through check-in to your final destination and earn King miles on all these sectors.
All you need to do is select your European destination and let the combined might of the world’s
two renowned airlines take care of the rest. Bookings open for travel beginning 15th September
2010 onwards.

We invite you to fly Kingfisher Airlines and experience a journey we strive to create everyday.
A journey like never before.
Strength and weakness:-
Jet's Strengths

 A phenomenal and well-developed network both of the airline and the chairman
 Goyal's knowledge of the sector
 A massive pool of loyal customers
 Excellent lobbying skills and ability to leverage connections within government
 Ability to survive downturns earlier
 Financing raised on strength of own balance sheet
 Has built a professional organisation

Jet's Weaknesses

 A perceived drop in service standards when pitted against Kingfisher

 Struggling with the carcass of Air Sahara
 Poor people management skills of chairman
 Inability to raise money for the last two years

Kingfisher's Strengths

 Superior product on ground; in the air Jet business class is being equated with
Kingfisher's economy
 UB group backing for raising financing
 Well capitalised airline, prepared to take losses
 Better handling of employees and staff; less centralised style of functioning
 Chairman Mallya's grand vision where it is looking to be among the best in the world
 The Deccan deal - which gives it market share, a new market segment and was cheap

Kingfisher's Weaknesses

 Kingfisher is yet to build itself into an organisation; structures yet to fall in place
 Not as professionally run as Jet; yet to build a professionally competent team
 Mallya's knowledge of the sector does not parallel Goyal's
 Chairman's people skills are better but employees have to work very erratic hours
 Unable to leverage connections to the same extent while lobbying
 Kingfisher's loads are lower than Jet's, which could be a reflection of its marketing and
sales ability.

Primary data analysis:-

The research approach was a combination of survey research and a focus group research. The
research instrument used was of questionnaire. The sample size was taken as 20. The sample
composition was mainly of airways customers i.e. who used the airline facilities.

Out of 20 airways customer most of them use airline facilities often.

According to the analysis we can say that the preference of the customer is kingfisher because of
Their service provided in the flight, meal provided, checking procedure, timely information etc.

We ask the customer about their:-

 Preference to travel by.

 Lesser time for reservation
 Check in procedure is more convenient
 Better information on delay and other things
 Provides better handling facilities, timely and care
 More systematic seating arrangement
 Good quality meal
 Services provided according to the customer expectation

And also we ask what more facilities do you expect from airlines. Majority of customer said that
they what more of the flights for shorter route and more timely information.
Annexure I
  response    
questio jet kingfisher
n airways
   
2 6 9 6.22352
9
3 5 9 6.54902
4 4 10 6.87451
5 3 14 7.2 slope -0.32549
6 5 8 6.54902 intercep 8.176471
t
7 7 10 5.89803
9
8 5 7 6.54902
9 6 8 6.22352
9
SUMMARY OUTPUT              
   
Regression Statistics  
Multiple R 0.557248  
R Square 0.310525  
Adjusted R 0.195613  
Square
Standard 1.117888  
Error
Observation 8  
s
   
ANOVA  
  df SS MS F Significan  
ce F
Regression 1 3.37696 3.37696 2.70227 0.15131  
1 1 5
Residual 6 7.49803 1.24967  
9 3
Total 7 10.875        
   
  Coefficien Standar t Stat P-value Lower Upper Lower Upper
ts d Error 95% 95% 95.0% 95.0%
Intercept 8.176471 1.89789 4.30818 0.00504 3.532493 12.8204 3.53249 12.8204
3 2 7 5 3 5
X Variable 1 -0.32549 0.19800 - 0.15131 -0.80999 0.15900 - 0.15900
4 1.64386 7 0.80999 7
Annexure II

Questionnaire:-

Objective:-comparative study of kingfisher and jet airways on the basis of the service provided.

Customer’s name:-

Age:-

Sex:-

1. How often you travel by airways?

a)very frequently b)often c)rarely d)never

2.You prefer to travel by?

a.jet airways b. kingfisher c. other specify_______________

3.which airlines consumes lesser time for reserving ticket

A jet airways b.kingfisher c. other specify_______________

4. which airlines check in procedure are more convenient that the other airlines
a.jet airways b.kingfisher c. other specify_______________

5. which airlines provides you better information in case of delay of flight?

a. jet airways b. kingfishers c. other specify_______________

6. which airways provides you better handling facilities, timely and with care/
a. jet airways b. kingfisher c. other specify_______________

7. Which airlines seating arrangement in more systematic?

a. jet airways b. kingfisher c. other specify_______________

8. which airline according to you provides good quality of meals?

a. jet airways b. kingfisher c. other specify_______________

9. which airlines provides you best in flight entertainment?

a. jet airways b. kingfisher c. other specify_______________

10. what more facilities do you expects from airlines?

____________________________________________________-