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 Chapter I

INTRODUCTION

In India, transport plays an important role in nation’s economy. After the economic liberalization in the
year of 1990’s, development of infrastructure within the country has progressed at a rapid pace and today
there is wide variety of modes of transport by Land, Water and Air are available in India. Transportation is
derived from the Latin word Transportare, where Trans means ‘Across’ and portare means ‘To carry’.
Transportation is the movement of peoples, animal, and goods from one place to another place. Transport
infrastructure consists of the fixed installations for transport, and may be roads, railways, airways,
waterways, canals and pipelines and terminals such as airports, railway stations, bus stations, trucking
terminal and seaports. Terminal may be used both for interchange of passengers and cargo and for
maintenance purpose. Indian public transport system is among the most heavily used in the world. India’s
rail network is the 4th largest and most heavily used system in the world transporting over 6 billion
passengers and over 350 million tons of goods annually. The development of the nation depends on good
transportation network. Every people is dependable on transportation.

1.1.2 MEANS OF TRANSPORT: -

Transport is possible through land, air and water, which are called as different modes of transport. On
land, we use trucks, tractors, buses, auto rickshaws, etc. to carry goods and passengers. Trains carry
passengers as well as goods also. In water transport, we have ships, cargo, etc. to carry goods and
passengers. In Air transport, we have aircrafts to carry passengers and goods. All these are known as
different means or modes of transport. Basically Transportation is divided into two types Traditional
Means or Modes of Transport and Modern Means or Modes of transport.

Traditional Means of Transport: - Followings are traditional modes of transport.

1. Walking: - During ancient period peoples are used to cover long distances on foot. Walking still continues as an
important modes of transport in rural areas. MMRDA has decided to construct more skywalks as part of the
Mumbai skywalk project.

2. Palanquin: - Palanquin also known as Palkis, were one of the luxurious methods used by the rich and noblemen
for travelling. In past and currently Palkis used to carry a deity or idol of the god. Modern use of the palanquin is
limited to Indian weddings and pilgrimage.

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3. Bullock Carts and horse Carriages: - These were traditionally used for transport, especially in rural area in
India. Today they are used in smaller towns and are referred as Tonga or Buggies. In Gateway of India which is
located in Mumbai are still used for tourist purpose.

4. Bicycles: - Bicycles are common means of travel in most part of India. Along with walking, cycling accounts for
50% to 75% of usage in rural areas. India is the second largest producer of bicycles in the world. Pune is the first in
India to have dedicated lanes for cycles. It was built for the 2008 Commonwealth Youth Games.

5. Hand puller: - This types of transport is still available in Kolkata where in a person pulls the rickshaw by hand.
The Government of West Bengal proposed a ban on these rickshaws in 2005 describing them as “inhuman”.

6. Cycle Rickshaw: - Cycle rickshaws were introduced in India, in 1940’s. They are bigger tricycles, where two
people sit on an elevated seat at the back and a person pedals from the front.

7. Trams: - During British Era, Trams were introduced in many cities including Mumbai and Kolkata. They are still
in use in Kolkata and provide an emission – free means of transport.

Modern Modes of Transport: - Different modes of transport includes Rail, Road, Water, Air, Cable, Pipeline, And
Space which are as follows:

1. Road Transport: - Roads are means that connect one place to another on the surface of the land, different
vehicle plying on road like bullock carts, cycles, motorcycles, car, truck, buses, etc. All of these constitute different
means of road transport. Extension of roads in every corner of the country have also enhanced the use of motor
driven transport. The types of motor vehicles used to carry goods and passengers included taxis, auto – rickshaws,
scooters, vans, buses, tempos and trucks, etc. Road transport is suitable for short distances. The transport cost are
not fixed but are high due to increased fuel prices. It’s provides door to door facilities. Its carry the goods only short
distances and suitable to carry the goods in smaller quantity. In roads transport the safety goods are less. Due to
poor road conditions there are high chances of accident. Other modes of transport is dependable on road transport
like water transport, rail transport and air transport. Road transport is very flexible mode of transport as loading and
unloading is possible at any time and any destination. The cost of maintenance is low compared to other modes of
transport. India has a network of National Highways connecting all major cities and state capitals, forming the
economic backbone of the country. All national highways are metal led but very few are constructed of concrete the
most notable being the Mumbai - Pune Expressway.

2. Rail Transport: - Rail transport is started in India In the year of 1853. Railway transport is most important mode
of transport in India, transporting over 18 million passengers and more than 2 million tonnes of freight daily across
one of the largest and busiest rail network in the world. Transportation of goods and passengers on rail lines through

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trains is called rail transport. Railway transport is suitable for short distance as well as short distance. Transportation
cost is cheap compare to other modes of transport and the transportation fares is fixed according to the distance.
Railway transport suitable for transporting heavy and bulky goods over short distance as well as long distance. It
does not provide door to door facilities. The safety of the goods in railway transport is high because the goods are
kept in locked wagons which provides protection against sun, wind, rain, etc. In railway transport the chances of
accident is less because of one way track and good signal system.

3. Water Transport: - Water transport refers to movement of goods and passengers on waterways by using various
means like boats, steamers, launches, ships, etc. With the help of these means goods and passengers are carried to
different places, both within as well as outside the country. Within the country rivers and canals facilitate the
movement of boats, launches, etc. Since the goods and passengers move inside the country this type of transport is
called inland water transport. When the different means of transport are used to carry goods and passengers on the
sea route it is termed as ocean transport. Water transport is suitable for long distance. Transportation coast is
lowest. It suitable for transporting heavy and bulky goods like machineries in large quantities in any part of the
country. In water transport the goods are safe as they are specially packed for transportation. Chances of accident in
water transport is less. In water transport required huge amount of investment and also involved lengthy document
procedures. The Bill of lading is most important document in water transportation. Water transport does not
provides door to door services. It is depends on another modes of transport like railway and roadway transport.

4. Air Transport: - Air transport is fastest mode of transport. It carries goods and passengers through
airways by using different aircrafts like passenger’s aircraft, cargo aircraft, helicopters, etc. In hilly and
mountain area where other mode of transport is not accessible through airways they can access. During
natural calamities air transport is very helpful and during war transport plays important role in carrying
soldiers as well as supplies to the required areas. Air transport may be classified as Domestic and
International air transport. Air transport is suitable for long distance. The transportation charges is high
compared to other modes of transport. Air transport is suitable for transporting light weight, valuable and
perishable goods. In air transport goods are safe. The very less chances of accident in air transport because
very high standard maintenance and expert pilots. Air transport does not provides door to door services.
Required large amount investment in air transport. Air transport is affected by bad weather conditions.

5. Other Modes of Transport: -

1. Ropeway Transport: - Ropeway refers to a mode of transport which connects two places on the hills,
across a valley and river. In hilly areas trolleys move on wheels connected to a rope and are used for
carrying passengers and goods especially building materials, food, etc. The “Uran Khatola Jagdamba” in

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Gujarat that carries pilgrims to the temple is an example of ropeway transport which carriers more than
100 passengers at a time.

2. Pipeline Transport: - Transporting goods through pipe called as pipeline transportation. Most
commonly liquid and gases are transported through pipeline. Pneumatic tubes can also send solid capsules
using compressed air. Liquids, gases and any chemically stable liquid or gases can be sent through
pipeline. Short distance systems exit for sewage, slurry, water, while long distance networks are used for
petroleum and natural gas.

3. Cable Transport: - Cable transport is a broad mode where vehicles pulled by cables instead of an
internal power source. It is most commonly used at steep gradient. Typical solutions include aerial
tramway, elevators, escalator and lifts some of these are also categorized.

4. Spaceflight: - Spaceflight is transport out of Earth’s atmosphere into the outer space by means of a
spacecraft. While large amounts of research have gone into technology, it is rarely used except to put
satellites into orbit and conduct scientific experiments. However, man has landed on the moon and probes
have been sent to all the planets of the solar system.

I am basically focusing on AIR TRANSPORT. In air transport I am mainly focusing on AIR INDIA
LIMITED AND INDIGO AIRLINES.

1.1 AIR INDIA AIRLINES

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An AIRLINES is a company that provides air transport service for traveling their passengers and freight.
Airlines utilize aircraft to supply these services, and may form partnership or alliances. With other airlines
for codeshare agreement. Generally, Airlines Company need air operating certificate or license for their
operations and their authorizations which is issued by a governmental aviation body. DEUTSCHE
LUFTSCHIFFAHRTS AKTIENGESELLSCHAFT (DELAG) It was the WORLD’S FIRST
AIRLINE. It was founded on 16th November, 1909.

Air India is the flag carrier airline of India and the slogan is “AIR INDIA…TRULY INDIAN”. Air India
flights is owned by Air India Limited. Air India Limited owned, managed and controlled by Government
of India. Air India Airlines headquarters located at New Delhi. The former headquarters of Air India
located at Mumbai. In the year 2013 Air India limited shifted headquarters Mumbai to New Delhi. Air
India Airlines providing services in Domestic country as well as international country, Air India Airlines
(Star Alliance) serves or fly 57 Domestic Destinations and 44 International destinations in 33
countries, as of January 2020. The airline has its hub at Indira Gandhi International Airport situated
at New Delhi, alongside several focus cities across India. According to the statistic of Directorate
General of Civil Aviation (DGCA) in the year 2019 Air India holds 12.2% Market Share of Domestic,
Air India is 3rd largest of Indian airlines holding of domestic shares and Air India Airlines is holds a 18.6%
International Market shares, Air India is holding India’s largest International market shares. Air India
airlines is 27th member of Star Alliance on 11th July, 2014.

Star Alliance is the world’s largest global Airlines alliance, it was founded on 14 th May, 1997 and the
current Chief Executive Officer is Jeffrey Goh. The headquarters is situated at Frankfurt am Main,
Germany. As of April 2018, Star Alliance is become a largest of the three global alliance by passenger

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count with 762.27 million, ahead of both Sky Team (630 million) and Oneworld (528 million). Its
slogan is “The Earth Connect’. Star alliance’s on 26th December airlines operate a fleet around 5,033
aircraft and serves more than 1,290 airports in 195 countries on more than 19,00 daily departures.

The airline was founded by Jahangir Ratanji Dadabhoy Tata known as J.R.D. Tata on 15th October,
1932. J.R.D. Tata himself flew its first single engine De Havilland Puss Moth, carrying air mail from
Karachi to Bombay’s juhu aerodrome and later continuing to Madras currently known as Chennai.
After the World War II, Tata airlines became a Public limited company. Later on the renamed as Air India.
On 21th February, 1960, it took delivery of its first Boeing 707 named Gauri Shankar and it’s became the
first Asian airlines to induct a jet aircraft in its fleet. In the year of 2000-01, attempts were made to
privatize to Air India and from the year 2006 onwards Air India suffered loss after it’s merged with Indian
Airlines.

The International Air Transport Association Code (IATA CODE) of Air India Air lines is AI and
International Civil Aviation Organization Code (ICAO CODE) is AIC. The main hubs of Air India
Airlines is Indira Gandhi International Airport located at New Delhi and secondary hubs of Air India
Airlines is Chhatrapati Shivaji Maharaj International Airport which is situated at Mumbai. Focusing cities
airports is Chennai International Airport at Tamil Nadu, Cochin International Airport at Kerala,
Kempegowda international Airport situated at Bangalore and Etc. Air India also operates flights to
Domestics and Asian destinations through its subsidiaries Alliance Air and Air express. Air India’s mascot
is the Maharajah (Emperor) and the logo consists of flying swan with the wheel of konark inside it.

1.1.2 HISTORY

Early years 1932 to 1945 as Tata Air Service:-

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Air India had its origin as Tata Air Service after later on the renamed to Tata Airlines. Tata Airlines was
founded by Jahangir Ratanji Dadabhoy Tata of Tata sons, an Indian aviator and business tycoon. In April
1932 Tata won a contract to carry mail for Imperial Airways and the aviation department of Tata Sons was
established with two single engine De Havilland Puss Moths. On 15th October, 1932 Tata flew a Puss
Moth carrying air mail from Karachi to Bombay now it’s known as Mumbai and the aircraft continued
to Madras currently it’s also known as Chennai. Piloted by Nevill Vintcent. He is former Royal Air
Force pilot and friend of Tata. The airline’s fleet consisted of a Puss Moths aircraft and a De Havilland
Leopard Moth. Initial services included weekly airmail service between Karachi and Madras via
Ahmedabad and Bombay (currently Mumbai). Tata Airlines first year of operation is the airlines flew
around 2, 60,000 kilometers and carrying 155 passengers and 9.72 tons of mail. The generated 60,000
rupees revenues.

AS Tata airlines the airlines first domestic flight operation from Bombay (Mumbai) to Trivandrum. Miles
aircraft limited companies aircraft used. The carrying capacity of aircraft is six seat including pilot. In the
year of 1938 the renamed as Tata Air Service and later then named as Tata Airlines.

After Independence from the year 1947 to 2000:-

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On 26th July 1946 the Tata Airlines became a Public Limited Company and renamed as Air India. After the
independence of India in the 1948 Government of India acquired 49% airlines. A Lockheed Constellation
l-749A aircraft name was renamed as Malabar Princess took off from Bombay to London Heathrow
marking the airlines first International flight. In the year of 1953 the Government of India passed the Air
Corporation Act and purchased a majority of stake in the carrier from Tata sons through its founder
Jahangir Ratanji Dadabhoy Tata would continue as Chairman till 1977. After that the company name is
remade as Air India International Limited and Domestic services transferred to Indian Airlines for
rebuilding.

First Asian Airline entered into Jet fleets: -

Air India International introduce first Boeing 707-402 Jet on 21th February 1960 and it’s became a first
Asian Airline to enter Jet age. The airlines was inaugurated services to New York on 14 th May 1960 and
later on the airlines name was changed Air India International to Air India on 8 th June 1960. Air India
became a world first All Jet airlines on the date of 11 th June 1960. In the year of 1971 Air India have taken
of its first Boeing 747-200B named Emperor Ashoka. Air India have taken first Airbus A310-300 in the

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year of 1986. Air India add another Aircraft in their company Boeing 747-400 named as Konark. It was
operated the first non-stop flight between New York to Delhi.

After Liberalization from 2000:-

Started service to Shanghai, China. On 23rd May 2001, the Indian Ministry of Civil Aviation had the year
of 2000-01 in this year attempts was made to reprivatize Air India. In the year 2000 Air India
removed Michael Mascarenhas from his position as Managing Director of Air India and citing charges of
corruption against of him. According to the Indian Ministry of Civil Aviation reports the Air India in loss
around ₹570 million because extra commissions that approved by Mascarenhas and then Indian Ministry
of Civil Aviation was suspended from the Air India. The Air India was introduce a fully owned Low Cost
Subsidiary called Air India Express connecting in India with the Middle East and Southeast Asia in May
2004. Until 2007 Air India mainly serves on International long haul routes while Indian Airlines serves on
domestic and international short haul routes.

Air India and Indian Airline Merger in the 2007:-

In the year of 2007, Air India and Indian Airlines merged together under Air India Limited. The Air India
Limited took delivery of its first Boeing 777 aircraft. In the year of 2007 Star Alliance was invited to Air
India Limited for Airlines Alliance. The combination loss of Air India and Indian Airlines in the year 2006
-07 was ₹707 billion and after the merger of Air India and Indian Airlines it increases up to ₹72 Billion by
March 2009. The three Airbus A300 and one Boeing 747-300M sold in March 2009 for $18.75 million
and paid a debt to State Bank of India. Air India accumulate ₹426 billion debt and an operating loss ₹220
billion on March 2011 and Air India was seeking finance from Government of India. According to the
report by the comptroller and Auditor General blamed the decision to purchases 111 new aircrafts and the
ill-timed merger with Indian Airlines for the poor financial situation. In August 2011, the invitation to join
star Alliance was suspended as a result of its failure to meet the minimum standards for the membership.
The Government was pumped ₹32 billion into Air India in March 2012.

On 1st March 2009, Air India made Frankfurt Airport its new International hub for onward connections to
the United States from India but Air India close Frankfurt international hub because of high operating cost
on 30 October 2010. Air India was open a new hub for its international flights at Dubai in the year of
2010. On 26th October 2010 National Aviation Company of India Limited renamed as Air India Limited.

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 BEFORE:-

National Aviation Company of India

Limited

Air India India

Air India Express Air India Cargo Air India Air India Air Alliance
Charters Transport
Limited Services
CURRENT:-

Air India Limited

Air India Hotel Air India Air India Air

Corporation of Engineering Transport
India Limited Services Services
Limited Limited

Air India Express

Alliance Air

After the merger of Air India on 26th February 2011 there is one primary airlines. Air India two subsidiary
Alliance Air and Air India Express carries providing regional basis and at low cost point to point services.
All carries providing services to 93 destinations in this 60 domestic destination providing services and 33
International destinations providing services. Air India have additional subsidiaries are Hotel Corporation
of India Limited, Air India Charters Limited and Airlines Allied Services Limited.

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In the year of 2013 the Civil Aviation Minister recommended that privatization is the key of survival of
Air India Airlines but that time BJP was in opposition. Opposition was against of privatization of Air India
airlines. In January 2013 Air India repay the debts by selling and leasing back the newly acquired Boeing
787 Dreamliner. After that Air India was increase 20% growth in its operating revenue compared to
previous financial year. Air India Limited was splits it’s engineering and cargo business into two
separate subsidiaries. Air India Engineering Services Limited (AIESL) and Air India Transport
Service Limited (AITSL) in the year of 2013.

Star Alliance member: -

Air India became the 27th member of Star Airlines on 11th July 2014. In August 2015 the agreement
signed with Citibank and State Bank of India to raise $300 million in external commercial borrowing to
meet capital requirements. First Year 2014-15 the revenue, operating loss and net loss was ₹198 billion,
₹2.171 billion and ₹5.41 billion compared to the year of 2011-12 was ₹147 billion, ₹5.138 billion and
₹7.55 billion. In May 2017 Air India Limited became third largest carrier in India after Indigo Airlines and
Jet Airways with a market share of 13%.

On 28th June, 2017 the Government of India approved the privatization of Air India Limited. A committee
has been set up to start the process. In March 2018, Government issued “Expression of Interests” to sell
76% stake of Air India along with low-cost airline Air India Express and 50% stake AISATS, a ground
handling joint venture with Singapore Airport Terminal Service (SATS). According to EOI the new owner
of airlines will take on a debt of 33,392 crore (US$4.7 billion) and it was supposed to be submitted by
mid-May as the Government wanted to complete the selling process by the end of 2018 but any private
firm did not show any interest in buying the debt laden airline.

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Government of India failed previous occasion to sell the Air India Limited. Now Government decided to
sell 100% shares of Air India Limited and it’s preparation in late-2019. On 27 January 2020, Government
released the expression of Interests (EOI) to invite bidders. This time Government decided to sell 100%
shares of both Air India and Its subsidiary carrier Air India Express as well as 50% AISATS and to attract
more bidders this time.

Air India Express: -

Air India Express is an Indian low-cost airline. The headquarter situated at kochi, kerala, India. This
airline operated by Air India express Limited (AIEL). Air India Express was fully owned subsidiary of
Indian flag carrier airline Air India. It operates around 649 flights per week to 33 destinations including
the Middle East and Southeast Asia. The airline carriers around 4.3 million passengers every connecting
140 city pairs. Air India Express started the journey on 29 th April 2005. Its main hub is Cochin
International Airport and secondary hub is Trivandrum International Airport, Calicut International Airport
and Mangalore International Airport. Air India Express is owned total 25 number of fleets. The
International Air Transport Association Code is IX and International Civil Aviation Organization Code is
AXB.

History of Air India Express: -

Air India Express is started on 29th April 2005, with the launch of three flights that took off simultaneously
from Thiruvananthapuram, Kochi and Kozhikode. The airline was introduced as low cost carrier. The
objective of providing convenient connectivity, to short-haul on International routes. In Middle East and
Southeast Asia for the Indian expatiate community. Air India Express was Air India response to the

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growing popularity of Low Cost Carrier’s in worldwide and within the region. Being low-cost carrier the
airline operates point to point flights with multiple hubs all over India. In December 2012, Air India
ratified the proposal to move the headquarter to Kochi in January 2013 and establishing a new MRO base
at Thiruvananthapuram.

1.1.4 NUMBER OF FLEET OR FLEET SIZE OF AIR INDIA LIMITED:-

OWNED LEASED AIRCRAFT TOTAL

AIRCRAFT TYPE SALES DRY

AND LEASE
LEASE
BACK

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 WIDE BODY AIRCRAFT

B777-200LR 3 - - 3

B777-300ER* 15 - - 15

B747-400 2 2 - 4

B787-800 6 21 - 27

WIDE BODY TOTAL 26 23 - 49

AIRCRAFT

NORROW BODY
AIRCRAFT

A320 CLASSIC 1 - - 1

A320-CEO 4 - - 4

A320-CEO - - 5 5
(SINGLECONFIGURATION)

A320-NEO - - 27 27

A319 19 - - 19

A319(SINGLE - - 3 3
CONFIGURATION)

A321 20 - - 20

TOTAL NARROW BODAY 44 - 35 79

AIRCRAFT

TOTAL AIR INDIA 70 23 35 128

AIRCRAFTS

AIR INDIA EXPRESS

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B737-800 17 - 8 25

ALLIANCE AIR

ATR42 - - 1 1

ATR72 - - 18 18

ALLIANCE AIR TOTAL - - 19 19

TOTAL FLEET 87 23 62 172

According to Air India Limited official website, Air India have total 172 aircrafts including Air India
Express aircrafts and Alliance air Aircrafts in this Air India limited have total 128 fleets the total wide
body aircraft is 49 and total narrow body air craft is 79. Air India Express own 25 aircraft and Alliance air
total aircraft is 19.

Puss Moth first Aircraft Tata Airlines

Leaopard Moth DH-85 Boeing 707

Boeing 747-400
Boeing 777-200LR
Boeing 777-300ER

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Boeing 787 Dreamliner Airbus 319 Airbus 320

Airbus 321 Airbus 330

ATR 42-320 CRJ

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Air India Destination List: -

Afghanistan Australia Austria Bahrain Bangladesh Belgium

Canada China Czech Denmark Egypt Ethiopia

Republic

Fiji France Germany Ghana Hong Kong India

Iran Iran Israel Italy Japan Kenya

Kuwait Lebanon Malaysia Maldives Mauritius Myanmar

Nepal Netherlands Nigeria Oman Pakistan Qatar

Russia Saudi Arabia Seychelles Singapore South Africa South Korea

Spain Sri Lanka Switzerland Syria Tanzania Thailand

Uganda United Arab United Uzbekistan Yemen Zambia

Emirates Kingdom

Zimbabwe

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1.1.5 Livery and logo of Air India Limited: -

Air India’s colour scheme is red and white. The aircraft were painted in white colour with palace style
carvings on the outside of the window and the airline’s name written in red colour. The name is written in
Hindi on the port side fuselage and in in English name written on the port side tall. On the starboard
fuselage the name was written in English language and in Hindi language on the starboard tall. The
window scheme was designed in tag line with the slogan Your palce in the Sky. The aircraft were earlier
named aircraft Indian kings and landmarks. In 1989 to supplement its Flying palace livery, Air India
Limited introduced new livery that included a metallic gold wheel on deep red- coloured tail and Boeing
747, Rajendra Chola was the first aircraft to painted in the new colour.

The first logo of Air India Limited was a centaur, a stylized version of Sagittarius shooting arrow in a
circle representing the Wheel of Konark. The logo was selected by the founder of Tata airlines J. R. Tata in
the year of 1948. The logo was used till the year of 2007. On 22 nd May 2007, Air India and Indian Airlines
unveiled their new livery consisting of a Flying Swan with the wheel of konark placed inside it. The flying
swan was morphed from the centaur logo and the chakra was derived from India’s erstwhile logo.

The logo of the new airline is a red colored flying swan with the 'Konark Chakra' in orange, placed inside
it. The flying swan has been morphed from Air India's characteristic logo, 'The Centaur', whereas the
'Konark Chakra' is reminiscent of Indian's logo . The new logo features prominently on the tail of the
aircraft. While the aircraft is ivory in colour, the base retains the red streak of Air India. Running parallel
to each other are the orange and red speed lines from front door to the rear door, subtly signifying the
individual identities merged into one. The brand name 'Air India' runs across the tail of the aircraft.

1.1.6 Mascot of Air India Limited:-

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 Maharajah is Mascot of Air India Limited. Maharajah
means High king. Mascot was created by Booby
kooka and then commercial director of air India and
Umesh Rao, an artist with J. Walter Thompson
Limited in the year of 1946. Kooka started that “we
call him a Maharajah for want of a better description.
But his blood is not blue. He may look like royalty
but he is not royal. In the year of 1946 Air India
adopted Maharajah mascot. The mascot was used to
promoting the Air India and it is initially designed only for the airline’s memo- pads. The Maharajah
mascot was given a makeover in the year 2015 and the brand is represented by a younger version. Many
peoples are like the Maharajah mascot of Air India Airlines. The Maharajah began merely as a rich Indian
emperor and Maharajah symbolizing graciousness and high living and the creator of Maharajah mascot
given distinctive personality, his outsizes moustache, the striped turban and aquiline nose. Maharajah
mascot is completed 74 years and become the most recognizable mascot the world over. His antics, his
expressions, his puns have allowed Air India to promote its services with a unique panache and an
unmatched sense of subtle humour. Air India was won numerous national and international awards for Air
India for humour and originality publicity.

1.1.7 Current Board of Directors of Air India Limited

SHRI ASHWANI LOHANI CHAIRMAN AND MANAGING

DIRECTOR

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 SHRI PRAVEEN GARG ADDL. SECRETARY AND
FINANCIAL ADVISOR,
MINISTRY OF CIVIL AVIATION

SHRI SATYENDRA KUMAR MISHRA JOINT SECRETARY, MINISTRY

OF CIVIL AVIATION

SHRI VINOD HEJMADI DIRECTOR OF FINANCE

DR. RAVINDRA KUMAR TYAGI INDEPENDENT DIRECTOR

DR. SYED ZAFAR ISLAM INDEPENDENT DIRECTOR

SMT. DAGGUBATI PURANDESWARI INDEPENDENT DIRECTOR

1.1.8 Services of Air India Limited: - Air India Limited mainly focuses on customers services. Air India
Limited work on full service model. Their aim and objective is to enhance the passenger’s services and
increase the passenger’s satisfaction levels. They work on increase the comfortable of passenger’s seats,
large legs spaces, flight entrainments, Business class, and Quality foods. Air Followings are the services
provided by Air India Limited.

Cabin Services of Air India Limited: - Air India Airlines the Boeing 777-200LR\777-300 and Boeing
747- 400 aircrafts used to operate on long haul flights are in three-class configuration that is Economic
class, First class and business class. Boeing 787 Dreamliner and Airbus A321 aircrafts have a two class
configuration that is Business class and Economy class. Airbus A320 Aircrafts operated on domestic and
short haul international flights are in either an all Economy configuration or a two class configuration.
Airbus A319 aircrafts have a full economy configuration. Air India serves meals on all international flights
and on domestic flights with a flight duration of over 90 minutes.

In-flight Entertainment: - Air India aircraft are equipped with Thales i3000 in-flight entertainment
system. Passengers can choose from five channels airing Hindi and English content. Air India’s Boeing
777,747 and 787 aircraft are also equipped with personal on demand in-flight entertainment systems on
which passengers can choose from available content. Showtime is the official entertainment guide
published by Air India. Shubh Yatra means Happy Journey is a bilingual inflight magazine published in
English and Hindi by Air India.

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Frequent flyer program: - Flying Returns is Air India’s frequent-flyer program. In this program the loyal
customer get some points after the journey as reward this points are redeemable. It is shared by Air India
and its subsidiaries. The points can be redeemed for award travel on some other airlines.

Premium Lounges: - The Maharaja Lounges which means Emperor’s Lounges is provided to the First
class and Business class passengers. Air India shares lounges with other International airlines at
International airports that do not have a Maharaja Lounges available. Air India Have eight Maharaja
Lounges they are followings:

In India: -

 Chhatrapati Shivaji Maharaja International Airport at Mumbai

 Indira Gandhi International Airport at Delhi

 Chennai International Airport at Chennai

 Kempegowda International Airport at Bangalore

 Rajiv Gandhi International Airport at Hyderabad

 Sardar Vallabhbhai Patel International Airport at Ahmedabad

In International: -

 John F. Kennedy International Airport at New York City

 Heathrow Airport at London

 San Francisco International Airport at San Francisco

Evacuation services: - Evacuation services also provided by Air India Limited. It is one of the great
services provided by Air India Limited. The airline register in Guinness Book of World Record for most
people evacuated by civil airliner. Around 1, 11,000 peoples are evacuated from Amman to Mumbai. Over
a distance of 4,117 kilometers by operating 488 flights since 13 th August to 11th October 1990. Around 59

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days Evacuation operation is done by Air India. The operation is carried during the time of Persian Gulf
War to evacuate Indian expatriates from Kuwait to Iran. The event was later featured in the film Airlift.

Air India Limited 324 peoples evacuated From Wuhan (Chine) to Delhi (India) because of coronavirus hit in
Chine. This operation done by Air India on 31 st January, 2020. The evacuees from Wuhan involved three minors,
211 students and 110 working professionals.

COMPETITOR OF AIR INDIA Limited: -

1. IndiGo Airline

2. Spice jet

3. Air Asia India

4. GO Air

5. Vistara Airlines

6. Jet Airways (Currently company is closed)

7. Kingfisher Airlines(Currently company is closed)

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 1.2.1 INDIGO AIRLINES

INDIGO AIRLINE is an Indian low-cost airline. Headquartered of INDIGO Airline situated at

Gurugram, Haryana in India. IndiGo is India’s largest airline with a market share of 47.5% as on
December, 2019. IndiGo airline is sixth largest carrier in Asia. IndiGo airlines primarily operate in India’s
domestic air travel market as a low- cost carrier. It’s mainly focus on Offering low fares, being on-time
and delivering a courteous and hassle-free experience. IndiGo being synonymous with being on-time. The
operation was started on 4th August 2006, IndiGo airline grow from carrier with one plane to a fleet of 255
aircraft today. A uniform fleet for each type of operations, high operational reliability and an award
winning service make IndiGO arline one of the most reliable airlines in the world. IndiGo airline serves
total destination count of 87 in this IndiGo serves total 63 domestic destinations and 24
International destinations IndiGo airlines serves. This includes three destinations: Aurangabad, Aizawl
and Agra in India and Dammam in Saudi Arabia which are open for sale. The International Air Transport
Association Code of IndiGo airlines is 6E and International Civil Aviation Organization code is IGO. The
primary hub of IndiGo airlines is Indhira Gandhi International Airport situated at Delhi.

The IndiGo airlines was founded by private company by Rahul Bhatia of InterGlobe Enterprises and
Rakesh Gangwal a United States based expatriate Indian, in 2006. It receive delivery of its first aircraft in
July 2006 and commenced operaions a month later. The IndiGo airline became the largest Indian carrier
by passenger market share in 2012. The company went public in November 2015.

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Facts and Figures of INDIGO airlines: -

 10 consecutive years of profitable operations.

 Domestic market share of 47.5% as of December, 2019.

 Fleet of 255 aircraft including 96 new generation A320 NEOs, 124 A320 CEOs, 25 ATRs and
10 A321 NEOs.

 Recognized as Great Place to Work in India for 8 years in row 2008 to 2015.

 Named as Aon’s Best Employer for the year 2016 and 2017.

1.2.2 History of IndiGo Airlines: -

Since 13 years IndiGo is grow itself. IndiGo airlines is best low-cost carrier airlines of Asia. IndiGo
Airlines was founded in the year of 2006 as a private company by Rahul Bhatiya of Interglobe
Enterprises and Rakesh Gangwal, a United States- based NRI. InterGlobe Enterprises was owned
51.12% stake in IndiGo and 47.88% stake owned by Gangwal’s Virginia based company Caelum
Investments. IndiGO airline placed a firm order for 100 Airbus A320 – 200 aircraft in June 2005 with
plans to begin operations in mid- 2006. IndiGo receive its first aircraft delivery on 28 th July 2006, nearly
a year after placing the order. It commenced operations on 4 th August 2006. The first flight flown by
IndiGo airline is from Delhi to Imphal via Guwahati. By the end of the year of 2006, the IndiGo
airline had six aircrafts and nine more aircrafts are were acquired by IndiGo airlines in the year of 2007.
In December 2010, IndiGo replaced state run carrier on that time Air India as the largest airlines in India
after that Kingfisher Airlines and Jet Airways with a passenger market share of 17.3%.

In the year of 2011, IndiGo airlines given the order for 180 Airbus A320 aircraft in a deal worth US$ 15
billion. In January 2011ImdiGo airlines completed five years of operations. IndiGo airlines got
permission to lunch international flights. In December 2011, the DGCA expresses reservations that the
rapid expansion could impact passenger’s safety. IndiGo get delivery of its 50 th aircraft, less than six

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years after it began operations. For the quarter ending March 2012, IndiGo airlines was most profitable
airline in India and turn into the second largest airline in India in terms of passenger’s market share. After
that in same year on 17 August 2012, IndiGo airlines became the largest airlines in India in terms of
market share exceeding market share of Jet Airways, six years after the start of operations.

In January 2013, IndiGo was the second fastest growing low-cost carrier airline in Asia after the
Indonesian airline Lion Air. In February 2013, IndiGo airlines officially notify that the Civil Aviation
Ministry given the permission to IndiGo airlines to accept delivery of only five aircrafts on that year. The
IndiGo airline planned to announce low-cost regional flights by setting up a subsidiary. Later on IndiGo
airline notify that it planned to ask approval from the ministry to receive four more aircraft so accepting
delivery of nine aircraft on that year in 2013. As of March 2014 IndiGo airline became a second largest
low-cost carrier in Asia in terms of seats flown. In August 2015, IndiGo airline placed an order for 250
Airbus A320NEO aircraft worth $27 billion, making it the largest single order ever in Airbus history.
IndiGo introduced a ₹32 billion (US$450 million) initial public offering on 19 th October 2015 which
opened on 27 October.

In October 2019, IndiGo airline placed another order for 300 Airbus A320NEO aircraft worth $33 billion
(₹2.3 lakh crore) surpassing its own record of the largest single order ever in Airbus history. In
December 2019, The IndiGO airline turn into first Indian airline to operate 1,500 daily flights. As of 31 st
December 2019 the airline’s fleet size is more than 250 aircraft becoming India’s first airline to do so.
According SKYTRAX World Airline Awards in this the IndiGo Airlines rank is 58 out of world’s top 100
airlines. In upcoming years the IndiGo airlines is became a world largest airline service provider.

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1.2.3 NUMBER OF FLEET OR FLEET SIZE OF IndiGO AIRLINES

TYPES OF AIRCRAFT OWNED SEAT CAPACITY

AIRBUS A320-200 126 180

AIRBUS A320NEO 96 180

AIRBUS A321NEO 10 222

ATR 72-600 25 74

TOTAL 257

On 29th October 2019 IndiGo airline was placed an order for 300 A320NEO family aircraft comprsing a
mix A320NEO. A321NEO and A321XLR aircraft taking IndiGO’s total number of A320NEO family
aircraft orders to 730. Airbus monthly reports lists the 300 order as 87 A320NEO and 213
A321NEO\A321XLR. After reciving the order of this aircrafts IndiGO airline became a world largest
airlines company.

AIRBUS A320-200
AIRBUS A320NEO AIRBUS A321NEO

ATR 72-600

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 1.2.4 Indigo Airline Destination List: -

Abu Dhabi Amsterdam Athens Bangkok

Brussels Budapest Chengdu Colombo
Copenhagen Dhaka Doha Dubai
Dublin Hanoi Ho Chi Minh City Hong Kong
Istanbul India Jeddah London
Kathmandu Kuala Lumpur Kuwait Male
Malta Muscat Paris Phuket
Prague Riyadh Sharjah Singapore
Tel Aviv Vienna Yangon Zurich

1.2.4 Logo and Livery: - Twenty dots arranged in the shape of an aircraft serves as the logo of the airline.
The airline uses a two tone blue livery on a white background with the belly of the aircraft painted in
IndiGo with the logo in white. The flight attendants wear a single-piece
navy-blue tunic with a cap. The airline has the tagline On-time focusing
on punctuality.
Board

1.2.5 Services of IndiGO Airline: - IndiGo airline stands for three things 1.
CEO On Time, 2. Affordable Fares, 3. Hassle free. IndiGo airline work on low-
cost model. The IndiGo airline is maily focusing on lower middle class and
Ronojoy Dutta
middle class people. In starting period IndiGo airline was does not provide
in-flight entertainment services. It does not provide First class and Business
Chairman of the class facilities, IndiGo airline provide only Economy class that way the
Board fares is low. Indigo airline also does not provide complimentary meals on
any of its flights to the passengers. Passengers can buy food in on board
M. Damodaran
flight. Hello 6E the in-flight magazine published by IndiGo is available for
passengers to read. In September 2019, the company announced its tie up
Director with SonyLIV on demand video app for providing its fliers with
Rohini Bhatiya entertainment options at the airport and in flight.

Director
1.2.6 Organizational Structure of IndiGo Airline: -
Rakesh
Gangawal

Director
Anupam
khanna

Diector
Devadas
Mangalore
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Director
Pallavi Shardul
 N-1
N-2
CFO
Aditya Pande

COO Finance Planning

Acquision and
Financing

Sales

Air
Information Technology
Operations
and Inflight

Legal

Interim CEO

HR

Corporate
Affairs

International
Flight Operations
SAles

CHAPTER - 2

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 RESEARCH METHODOLOGY

2.1.1 OBJECTIVE: -

In this research I am focusing on the sector of Air transport. Air India Limited and Indigo Airlines are
biggest bodies or Airline Company in this sector. Air India Limited and Indigo Airline this both airline is
belongs to Indian Aviation Industry. Air India Limited is government sector airline and IndiGo Airline is
private sector airlines.

To do comparative analysis of Air India Airlines and IndiGo Airlines with respect to:

1. Passengers satisfaction between Air India Airlines and IndiGo Airlines

2. Market share of Air India Airlines and IndiGo Airlines for five years from 2014 – 15 to 2018 -19

3. Financial performance and financial position selected aspects for five years from 2014 – 15 to 2018 -19

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2.2.2 SCOP OF STUDY: -

This research is related to comparison of two Indian airline company that is Air India Limited and IndiGo
Airline. The Air India Limited is owned and controlled by government of India and IndiGo Airlines is
owned and controlled by private firm. The various significant of study followings are.

1. To study what are the reasons for Air India Limited suffering into the loss.

2. To study what are the reasons for IndiGo Airlines is gaining more profit.

3. Comparative study of Air India Limited and IndiGo Airlines.

4. To study why Government of India selling the company Air India Air India Limited

5. To know the in which airlines passengers satisfaction level is high.

6. Market share of IndiGo Airlines Domestic as well as International market.

7. Market share of Air India Limited Domestic as well as International market.

8. To study the revenue generation of Air India Limited and IndiGo Airlines.

9. To study how IndiGo airlines leading Indian market with 47.5% Domestic market share.

10. To study why Air India Limited is declining in Indian market as well as in International
market.

11. To study how Air India Limited improve their financial conditions.

12. To study how IndiGo airline increase their International Market share

13. To study which airlines providing good services.

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2.2.3 LIMITATION: -

 The Air India Limited and IndiGio Airline both are very reputed company. Air India airline and
IndiGo airline providing service to the domestic country (India) as well as internationally but data
collected only from national passengers.

 The questions are asked from the normal people not from experts or professionals.

 Time is also a factor because of which the physical observation is not possible for this study.

 Not possible to access their headquarters and employees of both airlines.

 Facing problem while searching to those passengers who actually travelled in both airlines.

 Less information is available in both airlines official website.

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2.2.4 DATA COLLECTION: -

In this research the data has been collected from Primary source as well as secondary sources.

Primary Data: -

The data is collected by researcher first hand which is not already published. For collecting the data
detailed and comprehensive questionnaires were prepared. The questionnaires is constructed by researcher
as per the objective of the research. The questionnaires is distributed to all the respondents get duly filed
by them. The questionnaires are distributed through internet sources, as the researcher used “Google
Forms”.

Secondary Data: -

The data is already been published in the forms of books, journals, research papers, newspapers,
magazines, official documents, government website or records etc. Which is use full for gathering
information related to the researcher.

For this research the following data used by researcher: -

1. Official website of Air India Limited

2. Official website of IndiGo Airline

3. Official website of Director General of Civil Aviation (DGCA)

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 4. Published books

5. Internet website

2.2.5 SAMPLING METHOD AND SIZE: -

SAMPLING METHOD: -

This research is related to Air services. And the area covered by researcher is only limited to his nearby
only. And the researcher have to choose the selected member of population who have been travelled by
these airlines. Therefore the method used by the researcher is purposive sampling method. So the selected
member of population can give the respond to make statistical inferences which many estimate as the
whole population.

SAMPLING SIZE: -

Sample taken by the online distribution of questionnaire and the sample size is taken of 50 respondents.

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 CHAPTER-3

REVIEW OF LITERATURE
3.1 Neelam Dhanda and Mamta Sharma (A Study on Analysis of Operating Efficiency of Air India and Indigo
Airlines, 3rd May-2018): -

The Indian aviation sector is an important part of Indian economy as well as one of the rapidly growing
aviation industries in the world. There is a large scope of growth of this sector which will definitely affect the
growth of Indian economy positively. The present study is conducted to evaluate the operating efficiency of
Indigo Airlines and Air India. It is examined from the study that national carrier i.e. Air India could not earn
revenue during the study period. The result conducted on the expenses ratio and profitability ratio describes
that the operating efficiency as well as profitability of Air India has been poor during the study period. On the
other hand, the financial performance of private carrier i.e. IndiGo airlines has been good as compared to Air
India which is clearly depicted in the ratio analysis. It is concluded that there is a greater need to improve the
financial position of Air India as it is a national carrier which leads the Indian economy.

3.2 Malyadri and Satyanarayana (Service Quality Perceptions of Domestic Airline Consumers in India - An
Emperical Study, 16th October, 2014): -

This study concludes that kingfisher airlines and IndiGo airlines are the leaders in the services offered to the
passengers with top ratings in the services mix variables, hence these two airlines are conforming to
passengers satisfaction to an extent. The study found that the domestic passengers were not happy with
passenger’s services offered by the airline companies in India. It is also found that the companies have not
come up to the passenger’s expectations in fulfilling what company’s had promised regarding the service
quality. The marketing activities were exaggerated and they were not conforming to the customer satisfaction
levels which leads to dissatisfaction among passengers.

3.3 Dr. Minisha Gupta (A CASE STUDY RAISING QUESTIONS ON THE SURVIVAL OF AIR INDIA, 06 th July 2017): -

After economic liberalization there is a fierce competitiveness in Indian market leading to organizations
adopting invention and revolution. Organizations resort to this initiative as a result of downsizing,

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economic recession, restructuring, and reengineering. Air India airline is being third largest airline
company of India is still facing challenge to sustain in this competitive era. Although Air India has been
through various phases of transformation from organizational driven to employee driven including
changes in: (i) Strategic intent, competencies, challenges, and learning (ii) environment, technology, and
customer behavior, (iii) effect of communication, impact on employees attitude and behavior, role of
culture, climate, and structure, and (iv) reasons for the success or failure of change. However, it is still
facing challenges to retain its survival. This study reviews literature on Air India and unravel questions on
the survival and growth of this Indian airline.

3.4 Dr. P. Usha and E. Kusuma (A Study on Survive Quality and Passenger Satisfaction on Air India Services): -

The main aim of Air India airlines to deliver the better services or facilities to passengers and the
management in particular, is very much responsible for this. The Unsatisfactory of the passengers can
raise big difficultly to the Air India airlines company. I found that passengers are very happy with service
quality of Air India airlines. Here in this company, although the existing provision of the services measure
are found satisfactory though the passengers have a high degree of expectations from the company.
Therefore, it is the responsibility of the company to fulfill the expectation of the passengers. As the
company does the competitive companies offer already aware of the fact that the Air India passengers,
who were engaged in the service of the airlines, left the company as they were with better facilities. So
now, airlines should learn from the experiences and should avoid the mistakes. Only then, the company
can make a profit and good relations with the passengers.

3.5 Dr. Asha Nagendra, L. Karthik, Prabhudass F. J., Revathy M., Sonu Kumari and Timri Ravi
Mohan Priyadarshin (SUCCESS STORY OF INDIGO AIRLINES: A CASE STUDY, October –
December’ 2014 ): -

Hence, it can be concluded that Indigo has the leanest work force with the staff trained in every
aspect of customer experience at their fly learning and development Centre. Employees are
recognized as Individuals in Indigo Airlines with majority of implementation of suggestions given by
them to Indigo Airlines. This is beneficial to both employees as well as IndiGo.

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 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

1. passengers satisfaction

1. What is your gender?

50 responses

Object 3

TABULATION

PARTICULAR RESPONSES

MALE 37

FEMALE 13

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OTHERS 0

TOTAL 50

2. What is your age?

50 responses

Object 5

TABULATION

PARTICULARS RESPONSE

BELOW 18 01

18 TO 25 31

25 TO 40 14

ABOVE 40 04

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TOTAL 50

3. Are you aware of AIR INDIA AIRLINE and IndiGO AIRLINE?

50 responses

Object 7

TABULATION
PARTICULARS RESPONSES
YES 50
NO 0
TOTAL 50

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4. Have you traveled in AIR INDIA and IndiGO AIRLINE?
50 responses

Object 9

TABULATION
PARTICULARS RESPONSES
YES 50
NO 00
TOTAL 50

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5. How is the fare charges of AIR INDIA AIRLINE?

50 responses

Object 11

TABULATION
PARTICULARS RESPONSES
LOW 04
MODERATE 29
HIGH 17
TOTAL 50

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6. How is the fare charges of INDIGO AIRLINE?

50 responses

Object 13

TABULATION
PARTICULARS RESPONSES
LOW 15
MODERATE 29
HIGH 06
TOTAL 50

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7. Behaviour of AIR INDIA AIRLINE staffs on airport?

50 responses

Object 15

TABULATION

PARTICULARS RESPONSES
POOR 05
AVERAGE 17
GOOD 24
VERY GOOD 04
TOTAL 50

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8. Behaviour of INDIGO AIRLINE staffs on airport?

50 responses

Object 17

TABULATION

PARTICULARS RESPONSES
POOR 05
AVERAGE 12
GOOD 28
VERY GOOD 05
TOTAL 50

Page | 49
9. Behaviour of crew members of AIR INDIA AIRLINE and IndiGo AIRLINES in flight?

50 responses

Object 20

TABULATION
PARTICULARS AIR INDIA AIRLINES IndiGO AIRLINES
POOR 06 05
AVERAGE 15 14
GOOD 23 25
VERY GOOD 06 06
TOTAL 50 50

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10. Give the rating to the AIR INDIA AIRLINE and IndiGo AIRLINES for food service?

50 responses

Object 23

TABULATION

PARTICULARS AIR INDIA AIRLINES IndiGO AIRLINES

POOR 04 06
AVERAGE 10 16
GOOD 26 24
VERY GOOD 10 04
TOTAL 50 50

Page | 51
11. Does the AIR INDIA AIRLINE flights are on time?
50 responses

Object 25

TABULATION
PARTICULARS RESPONSES
YES 33
NO 17
TOTAL 50

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12. Does the INDIGO AIRLINE flights are on time?
50 responses

Object 27

TABULATION
PARTICULARS RESPONSES
YES 39
NO 11
TOTAL 50

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13. Are the online-ticket booking is easy in the AIR INDIA AIRLINES?

50 responses

Object 30

TABULATION
PARTICULARS RESPONSES
YES 45
NO 05
TOTAL 50

Page | 54
14. Are the online-ticket booking is easy in the INDIGO AIRLINES?
50 responses

Object 32

TABULATION
PARTICULARS RESPONSES
YES 46
NO 04
TOTAL 50

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15. Give rating to the Ticket cancellation and refund process in AIR INDIA AIRLINES?

50 responses

Object 34

TABULATION
PARTICULARS RESPONSES
POOR 10
AVERAGE 27
GOOD 11
VERY GOOD 02
TOTAL 50

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16. Give rating to the Ticket cancellation and refund process in INDIGO AIRLINES?

50 responses

Object 36

TABULATION
PARTICULARS RESPONSES
POOR 08
AVERAGE 28
GOOD 12
VERY GOOD 02
TOTAL 50

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17. Are the AIR INDIA AIRLINES is safe to travel?

50 responses

Object 38

TABULATION

PARTICULARS RESPONSES
YES 39
NO 11
TOTAL 50

Page | 58
18. Are the INDIGO AIRLINES is safe to travel?

50 responses

Object 40

TABULATION

PARTICULARS RESPONSES
YES 41
NO 09
TOTAL 50

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19. What do you think which airline making more delays?

50 responses

Object 42

TABULATION

PARTICULARS RESPONSES
AIR INDIA AIR LINES 33
IndiGO AIRLINES 17
TOTAL 50

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20. Which flight gives you more entertainment during travel?

50 responses

Object 44

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21. Give the rating to the comfort and cleanliness in AIR INDIA AIRLINES?

50 responses

Object 46

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23. Give the rating to the comfort and cleanliness in INDIGO AIRLINES?

50 responses

Object 48

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24. Which airline you suggest to other people?
50 responses

Object 50

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Page | 65
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