BRM PROJECT

BY:
G. Meghana
Hamza Hussain
Rohith Guntu
Abhishek .S
Kranti
BBA(BA)

CONSUMER ATTITUDE TOWARDS

AIRLINES
INTRODUCTION
An airline is a company that provides air transport services for travelling passengers
and freight. Airlines lease or own their aircraft with which to supply above services and may
form partnerships or alliances with other airlines for mutual benefit. Generally, airline companies
are recognized with an air operating certificate or license issued by a governmental aviation
body.
Airlines vary from those with a single aircraft carrying mail or cargo, through full-service
international airlines operating hundreds of aircraft. Airline services can be categorized as being
intercontinental, domestic, regional, or international, and may be operated as scheduled services
or charters.
The first airlines

DELAG, Deutsche Luftschiffahrts-Aktiengesellschaft was the world's first airline. It was founded
on November 16, 1909 with government assistance, and operated airships manufactured by The
Zeppelin Corporation. Its headquarters were in Frankfurt. The first fixed wing scheduled air
service was started on January 1, 1914 from St. Petersburg, Florida to Tampa, Florida. The four
oldest non-dirigible airlines that still exist are Netherlands KLM, Colombia's Avianca, Australia's
Qantas, Polish AeroTarg, and the Czech Republic's Czech Airlines. KLM first flew in May 1920,
while Qantas (which stands for Queensland and Northern Territory Aerial Services Limited) was
founded in Queensland, Australia, in late 1920.
Development since 1945

As governments met to set the standards and scope for an emergent civil air industry
toward the end of the war, the U.S. took a position of maximum operating freedom; U.S. airline
companies were not as hard-hit as European and the few Asian ones had been. This preference
for "open skies" operating regimes continues, with limitations, to this day.
World War II, like World War I, brought new life to the airline industry. Many airlines in the
Allied countries were flush from lease contracts to the military, and foresaw a future explosive
demand for civil air transport, for both passengers and cargo. They were eager to invest in the
newly emerging flagships of air travel such as the Boeing Stratocruiser, Lockheed Constellation,
and Douglas DC-6. Most of these new aircraft were based on American bombers such as the

B29, which had spearheaded research into new technologies such as pressurization. Most offered
increased efficiency from both added speed and greater payload.

In the 1950s, the De Havilland Comet, Boeing 707, Douglas DC-8, and Sud Aviation Caravelle
became the first flagships of the Jet Age in the West, while the Eastern bloc had Tupolev Tu-104
and Tupolev Tu-124 in the fleets of state-owned carriers such as Czechoslovak SA, Soviet
Aeroflot and East-German Interflug. The Vickers Viscount and Lockheed L-188 Electra
inaugurated turboprop transport.
The next big boost for the airlines would come in the 1970s, when the Boeing 747, McDonnell
Douglas DC-10, and Lockheed L-1011 inaugurated widebody ("jumbo jet") service, which is still
the standard in international travel. The Tupolev Tu-144 and its Western counterpart, Concorde,
made supersonic travel a reality. Concorde first flew in 1969 and operated through 2003. In
1972, Airbus began producing Europe's most commercially successful line of airliners to date.
The added efficiencies for these aircraft were often not in speed, but in passenger capacity,
payload, and range. Airbus also features modern electronic cockpits that were common across
their aircraft to enable pilots to fly multiple models with minimal cross-training.
Regulatory considerations
National:

Many countries have national airlines that the government owns and operates. Fully
private airlines are subject to a great deal of government regulation for economic, political, and
safety concerns. For instance, governments often intervene to halt airline labor actions to protect
the free flow of people, communications, and goods between different regions without
compromising safety.
The United States, Australia, and to a lesser extent Brazil, Mexico, India, the United Kingdom,
and Japan have "deregulated" their airlines. In the past, these governments dictated airfares, route
networks, and other operational requirements for each airline. Since deregulation, airlines have
been largely free to negotiate their own operating arrangements with different airports, enter and
exit routes easily, and to levy airfares and supply flights according to market demand.
The entry barriers for new airlines are lower in a deregulated market, and so the U.S. has seen
hundreds of airlines start up (sometimes for only a brief operating period). This has produced far
greater competition than before deregulation in most markets. The added competition, together
with pricing freedom, means that new entrants often take market share with highly reduced rates
that, to a limited degree, full service airlines must match. This is a major constraint on
profitability for established carriers, which tend to have a higher cost base.

As a result, profitability in a deregulated market is uneven for most airlines. These forces have
caused some major airlines to go out of business, in addition to most of the poorly established
new entrants.

International:

Groups such as the International Civil Aviation Organization establish worldwide standards for
safety and other vital concerns. Most international air traffic is regulated by bilateral agreements
between countries, which designate specific carriers to operate on specific routes. The model of
such an agreement was the Bermuda Agreement between the US and UK following World War
II, which designated airports to be used for transatlantic flights and gave each government the
authority to nominate carriers to operate routes.
Bilateral agreements are based on the "freedoms of the air", a group of generalized traffic rights
ranging from the freedom to overfly a country to the freedom to provide domestic flights within
a country (a very rarely granted right known as cabotage). Most agreements permit airlines to fly
from their home country to designated airports in the other country: some also extend the
freedom to provide continuing service to a third country, or to another destination in the other
country while carrying passengers from overseas.
In the 1990s, "open skies" agreements became more common. These agreements take many of
these regulatory powers from state governments and open up international routes to further
competition. Open skies agreements have met some criticism, particularly within the European
Union, whose airlines would be at a comparative disadvantage with the United States' because of
cabotage restrictions.

LITERATURE REVIEW:
1. Travelling by air is probably the most respected transportation innovation in the twentieth
century, which has enabled the transportation of passengers in the shortest time and has boosted
the demand for long-haul trips. In such fact, there is no part of the world has now more than 24
hours flying time from any other part (Copper et al, 2008).
2 . Air travel is the single-most carbon intensive activity that an individual is likely to participate
in (House of Commons, 2007).
3. The importance of efficient interaction between company employees and the customers should
be emphasized in relation to how much benefits both actors can draw from it. The personal
interaction is strongly emphasized concerning the increased awareness of the significance of
trying to satisfy customers and their needs (Bettencourt & Gwinner 1995) and thereby achieving
service quality.

4. The service encounter with the customer is the perfect opportunity for a
company or organization to customize the service experience so that it suits the individual
customer and his or her needs (Bettencourt & Gwinner 1995).
5. Tyler Brule from Monocle underlined in his keynote speech at the recent ACI Trading
conference in Zurich that the age of mass, uniform, global sameness has passed. Mature
consumers move on to products that offer a full story of tradition and craftsmanship. Connecting
your products or services to specific locales will make them more relevant, more exclusive and
correspondingly more exciting and desirable.
6. Although airlines are safer and more profitable than any time in history, the industry must
innovate much more rapidly in order to secure its environmental and financial viability in the
future. Samantha Shankman.
7. Service quality is the extent to which consumer expectations are met by service provided (Bitner &
Hubbert, 1994).
8. Service quality is an important factor for airlines that widely influence passengers choosing decisions
(Park, Robertson, & Wu, 2005).
9. The baby boomers are more likely to spend money in traveling because they are more curious
then elder generation, and having a perception of availing different facilities during their journey.
As the purchasing power is an important factor to discuss, the baby boomers perception, attitude,
and motivation of buying anything is leading towards brand consciousness, and brand awareness
which is the perceive value of the customer (Macmillan, 2009).
10. In todays era determining service quality has become the most recurrent subject in the

management literature. Due to which a need arose to develop reliable and valid instruments so that
organizations can systematically evaluate their performance from the customers view point and the
association between the perceived service quality and the other major organizational outcomes and this
has encouraged the development of the models for determining the service quality (Badri, Abdullah & AlMadani, 2005).

OBJECTIVES:
To provide a seamless service to the customer.
To continue and strengthen global network to serve customers travel and

connectivity needs.
Should continue to develop and deploy customer travel innovations.
Must implement customer messaging, promotions and general awareness
campaigns.

Engage communities to help them (customers) better prepare for disaster relief
efforts.

METHODOLOGY:
It is based on Qualitative research with regard to the attitude of the customer.

SAMPLING AREA:
Sampling area in this airlines survey refers to the range of air passengers in the city
Visakhapatnam.

SAMPLE SIZE:
Between the age group 17-45 were chosen as respondents.

SAMPLING TECHNIQUE:
The technique used here in this survey is Convenience sampling (or) Deliberate
sampling technique.

Primary data: Questionnaire

(which is based on consumer behavior)

Secondary data: Web information

(which includes literature points)

ANALYSIS:
gender * which airline would you prefer to travel Cross-tabulation
Count
which airline would you prefer to travel
indigo
gender

male
female

Total

air india

jet airways

spice jet

Total

12

27

20

65

11

10

35

17

36

31

16

100

Male: % of indigo = 18.47%, % of air India = 41.53%, % of jet airways = 30.77%, % of spice
jet = 9.23%
Female: % of indigo = 14.28%, % of air India = 25.71%, % of jet airways = 31.42%, % of
spice jet = 28.57%

Observation or Findings:
gender * considering all other factors as equal, which in-flight
communication facility is more important to you ; in-flight mobile
telephone or broadband internet access Cross-tabulation
Count
considering all other factors as
equal, which in-flight
communication facility is more
important to you ; in-flight mobile
telephone or broadband internet
access
broadband
in flight mobile
gender

Total

internet access

Total

male

15

50

65

female

13

22

35

28

72

100

In the above table we can see that 15 and 13 number of male and female are interested in
the in flight mobile facility and 50 and 22 male and female have chosen the broadband
internet access.

CONCLUSION:
By doing this survey, we realized that the Air India has got
the highest preference among the customers. We also
found out that most of the people travel only once a year
through airways. We even found out that people prefer
travelling through air regardless of the price.
REFERENCE:
Case study between Al Etihad and emirates marketing Essay
1. Zeppel, Heather, and Narelle Beaumont. "Assessing motivations for carbon offsetting by
environmentally certified tourism enterprises." Anatolia 24.3 (2013): 297-318.
2. "The impact of service quality and service innovation on technology acceptance model." (2011).
3. "The impact of service quality and service innovation on technology acceptance model." (2011).
4. Local heroes: How local stores and restaurants are gaining presence
at airports
5. 3 biggest challenges facing the global aviation industry

6. Goldstein, Susan Meyer, et al. "The service concept: the missing link in service design
research?." Journal of Operations management 20.2 (2002): 121-134.