A

Pr
ojectRepor
t
On
I
NDI
ANAI
RLI
NES
I
npar
ti
alf
ulf
il
lmentofBBA

Submit
tedby:VIPUL
RollNo.
Uni
ver
sit
yrol
l no.

Submi
ttedt
o:MR.AMI TGUPTA
(Cour
seco-
ordi
nat
or)

Mahar
ajaAgr
asenI
nst
it
uteofManagementSt
udi
es
(
Aff
il
iat
edt
oGur
uGobi
ndSi
nghI
ndr
apr
ast
haUni
ver
sit
y)
 CERTI
FICATE

Itist o cer
ti
fyt hatMr.VI PUL Studyi
ng in ouri nsti
tut
e of
management studies was allot
ted the project on “INDIAN
AIRLI
NES”by Gur u Gobind Si
ngh Universi
ty has successful
l
y
complet
editunderthegui
danceofMr.AMI TGUPTA
(Cour
seco-or
dinat
er)

MR.AMI
TGUPTA
(
Cour
seco-
ordi
nat
or)

2
 ACKNOWLEDGEMENT

Itakethisoppor
tunit
ytoexpr
essmyprofoundsenseofgrat
it
ude
andrespecttoal
lthosewhohelpedmet
hroughoutthedur
ati
onof
thi
sproject
.

Itgi
vesmei mmensepleasuretoacknowl
edgemyi ndebtedness
andsenseofgr ati
tudet
oMr .AMITGUPTA(Proj
ectguide)forthe
proj
ectundertaken.

Ialsoimmensel
ythanktheotherf
acul
tymembersoftheinst
it
ute
underwho conti
nuous suppor
tand gui
dance Icomplet
ed the
project
.

3
 DECLARATI
ON

Iher
ebydecl
aret
hatt
hepr
ojectwor
kti
tl
ed“
INDI
ANAI
RLI
NES”
I
sanaut
hent
icwor
kcar
ri
edoutbymeundert
hegui
danceof
(
Proj
ectgui
de)f
ort
hepar
ti
alf
ulf
il
lmentofdegr
eeof
BACHELOROFBUSI
NESSADMI
NISTRATI
ON (
Gen)
.Andt
hishas
notbeensubmi
tt
ed any
wher
eel
sef
ort
heawar
d ofanyot
her
degr
eeordi
ploma

4
 EXECUTI
VESUMMARY

Thecur rentmill
ennium hasunf oldednewbusi nessr ul
esmostt he
si
gnificantofthem bei ngt hatcompanyhast oconstantl
yl ookinto
mindsoft hecust omer .Cust omerl oyal
typlaysasi gni
ficantrole
andt odaysecur i
ngt hatl oyaltyrequir
esqualit
yr i
ghtpriceandof
coursel astbutnott hel easti.e.creati
ngawar enessaboutt heir
servi
ce.Asat r
ainee,Iwasgi venknowl edgeaboutt hewayand
styl
eoft heirworking,theirroutineandt hei
renvir
onment .I twasa
greatexper i
enceinget t
ingundersuchar eput
edcompany ,which
hasini ttheabil
i
tyt oretaincust omer.

5
 I
NDEX

CHAPTER–1
 Preface
 Objecti
ve
 Researchmet
hodol
ogy

CHAPTER–2
 Int
roduct
ion
 Companyprofi
l
e
 Market
ingst
rat
egy

CHAPTER–3
 Anal
ysi
sofdat
a

CHAPTER–4
 Questionnai
re
 Suggest i
on
 Conclusion
 Li
mitation

BI
BLI
OGRAPHY

6
7
 PREFACE

If
eelgr
eatpl
easur
eindoi
ngmypr
oject“
EFFECTI
VENESSOFVARI
OUS

PROMOTI
ONALFARESOFI
NDI
AN AI
RLI
NES”wi
thI
ndi
anAi
rl
ines.The

whol
ehear
ted suppor
toft
heexecut
ivesoft
heI
ndi
an Ai
rl
ineshas

enabl
edmet
ocompl
etet
hispr
oject
.

Thi
s pr
ojecti
s al
laboutt
he “
Mar
ket
ing i
nit
iat
ives t
aken byI
ndi
an

Ai
rl
ines” wi
thar
api
dly changi
ng t
echnol
ogi
cal
,soci
al,economi
c,

pol
i
tical
-l
egaland t
he t
rend t
owar
ds gl
obal
i
zat
ion ofbusi
ness and

i
ndust
ry,emer
ging ofv
ari
ous pr
ivat
e ai
rl
ines;ef
fect
ive mar
ket
ing

managementhasbecomeav
erychal
l
engi
ngj
ob.

I
nthi
s pr
oject Ihav
e anal
yzed t
he di
ff
erent pr
omot
ionalf
ares

i
mpl
ement
edbyI
ndi
anAi
rl
inesandhav
egi
venf
eedbackr
egar
dingt
hei
r

ef
fect
ivenessandwhet
hert
heyshoul
dbecont
inuedordi
scont
inuedon

di
ff
erentsect
ors.

8
 OBJECTI
VE

 Toi
dent
if
ytheser
vicesof
fer
edbyI
NDI
ANAI
RLI
NE.

 Tostudyandanalyzet
hecustomerper
cept
ionand
pr
eferenceaboutI
NDIANAIRLINE.

 Fi
nall
ytodr
awthevar
iousconcl
usi
onandr
ecommendat
ion
onthebasi
sofst
udyconduct
ed.

9
 RESEARCHMETHODOLOGY

Manager
sneedi
nfor
mat
ioni
nor
dert
oint
roducepr
oduct
sandser
vices

t
hatcr
eat
eval
uei
nthemi
ndoft
hecust
omer
.Butt
heper
cept
ionof

v
aluei
sasubj
ect
iveone,andwhatcust
omer
’sv
aluet
hisy
earmaybe

qui
tedi
ff
erentf
rom whatt
heyv
aluenexty
ear
.Assuch,t
heat
tri
but
es

t
hatcr
eat
eval
uecannotsi
mpl
ybededucedf
rom commonknowl
edge.

Rat
her
,dat
a(i
nfor
mat
ion)mustbecol
l
ect
edandanal
yzed.Thegoalof

Mar
ket
ingResear
ch(
anal
ysi
s)i
stopr
ovi
det
hef
act
sanddi
rect
iont
hat

manager
sneedt
omaket
hei
rmor
eimpor
tantmar
ket
ingdeci
sions.

Theanal
ysi
sinv
olv
est
hef
oll
owi
ngst
eps:

 Def
inet
hepr
obl
em.

 Det
ermi
ner
esear
chdesi
gn.

I
dent
if
ydat
aty
pesandsour
ces.

 Det
ermi
nesampl
epl
anandsi
ze.

 Col
l
ectt
hedat
a.

 Anal
yzeandi
nter
prett
hedat
a.

 Pr
epar
ether
esear
chr
epor
t.

Fort
hepur
poseofst
udy
,dat
afr
om t
hei
n-housesur
veyconduct
edby

t
hemar
ket
ingdepar
tment(
secondar
ydat
a)hasbeenusedandal
sof
or

10
comi
ng outwi
tht
he r
ecommendat
ion.I
twas al
so f
eltt
hatmer
e

secondar
ydat
awoul
dnotpr
ovi
dei
n-dept
hinf
ormat
ionf
ort
heanal
ysi
s,

hencei
twasdeci
dedt
hati
nter
act
ivedi
scussi
onswi
tht
hemanager
s

andt
heheadofev
erydepar
tmentwoul
dhel
pinani
n-dept
handt
rue

under
standi
ngofchal
l
engesf
acedbyt
hedepar
tment
.

Themet
hodol
ogyadopt
edwast
ogat
herr
elev
anti
nfor
mat
ionf
rom t
he

appr
opr
iat
e depar
tment
,cor
rel
atet
he i
nfor
mat
ion obt
ained and t
o

pr
esentt
hei
nfor
mat
ioni
nal
ogi
cal
andsy
stemat
icmanner
.

11
 AVI
ATI
ONI
NDUSTRY

I
NTRODUCTI
ON

Thought
heOpenSkyPol
i
cywasannounced11y
ear
sback,f
oral
l

pr
act
icalpur
poses,
theI
ndi
anav
iat
ioni
ndust
ryact
ual
l
ytookof
fwi
tht
he

ent
ryofasmanyas6compani
esi
nthef
ir
sthal
fof1991whent
hest
ate

r
unI
ndi
anAi
rl
ineswasf
aci
ngi
ndust
ri
alst
ri
fe.

Af
terr
epor
ti
nganRs.
11cr
orepr
ofi
tin2001,I
ndi
anAi
rl
inessuddenl
y

sawi
tsmar
ketshar
edr
opandi
tssupr
emacychal
l
enged.Pi
l
otsl
ett
he

ai
rl
inei
nhor
dest
omor
elucr
ati
vej
obswi
tht
hepr
ivat
eoper
ator
s,whi
ch

r
esul
ted i
n underut
il
izat
ion ofi
ts Boei
ng f
leet
.Passenger
s,t
oo,

suddenl
yreal
i
zedt
hatt
her
ewer
eai
rl
ineswi
l
li
ngt
oof
fert
hatl
i
ttl
eext
ra

bi
tthatmeanssomuch,andI
ndi
anAi
rl
inessuddenl
ysaw i
tsmar
ket

shar
edr
opt
o53percentf
rom i
tsear
li
erunassai
l
abl
eposi
ti
on.

Thegr
owi
ngdi
senchant
mentwi
tht
heser
vices(
orl
ackofi
t)ofI
Aand

t
hef
requentagi
tat
ionbyi
tsempl
oyer
spr
ompt
edt
he“
deci
sion-
mar
ket
s”

t
ousheri
npr
ivat
eai
r-
taxioper
ator
s(ATO’
s).Ni
net
eenot
her
sgotno

obj
ect
ioncer
ti
fi
cat
es(
NOC)
.By1996,t
her
ewer
e12oper
ator
sint
he

mar
ket
,byt
hei
rmar
ketshar
eindomest
ict
raf
fi
cwasnegl
i
gibl
e.

By1999,
ther
ewer
esev
enpl
ayer
swhower
eoper
ati
ngwi
thaschedul
ed

12
ai
rl
ine’
s whi
l
e 22 ot
her
s wer
efl
i
ng as non-
schedul
ed orATO.The

schedul
ed ai
rl
ines i
ncl
uded EAST-
WEST AI
RLI
NES, MODI
-LUFT,

DAMANI
A,JETAI
RWAYS,NEPC andARCHANA.Compani
essuchas

EAST-
WESTl
easedsev
eral100pl
usseat
erai
rcr
aftanddev
elopeda

l
argenet
wor
kinashor
tspan.JetAi
rway
sgr
ew sl
owl
yandnotonl
y

out
li
vedcompet
it
ion,butest
abl
i
shedi
tsel
fast
hel
argestpr
ivat
esect
or

pl
ayer
.

Whi
l
ethemar
ketshar
eofpr
ivat
eoper
ator
ssoar
edt
o41%f
rom 1996t
o

1999(
eat
ingi
ntoI
A’sshar
e),t
hei
nit
ialeuphor
iadi
edouti
n1997when

t
heAi
rCor
por
ati
onActof1953wasr
epeal
edandi
tbecameobl
i
gat
ory

f
orATOswi
tht
hree ormor
eai
rcr
aftt
obecomeschedul
edai
rl
inesand

oper
ateaccor
dingt
ocer
tai
ngui
del
i
nes(
prot
ocol
).I
tbecamemandat
ory

f
orschedul
edai
rl
inest
ofl
yatl
east10%oft
hei
rcapaci
tyt
othef
arf
lung

uneconomi
calar
eassuchasnor
th-
east
,JammuandKashmi
rand50%

t
onon-
tr
unkst
ati
ons.

Wi
tht
his,
camet
her
eal
i
zat
iont
hatawhol
elotofov
erheadsassoci
ated

wi
tht
hef
lyi
ngwer
einv
olv
edandhi
gherut
il
izat
ionoft
hel
easedai
rcr
aft

andbet
terr
out
epl
anni
ngwasessent
ialt
osur
viv
e.Obv
iousl
y,when

t
her
ewasami
smat
chbet
weent
her
etur
nsandt
heout
go,
someoft
hem

shutshop.

13
But
,ev
enbef
oret
hegui
del
i
neswer
eissuedi
n1997,DAMANI
A,whi
ch

hadcr
eat
edbr
andequi
tyofi
tsownasanel
egant
,passenger
-f
ri
endl
y

ai
rl
ine,
buckl
edunderpr
essur
eandwaspur
chasedbyNEPCi
n1996.UB

AI
RandRAJAI
Rfol
l
owedi
t.Byt
hef
ir
stquar
terof2000,t
hreemor
e

ai
rl
inessuspendedt
hei
roper
ati
onsduet
onon-
avai
l
abi
l
ityofai
rcr
aft
,

EAST-
WESTi
nMay1999,MODI
LUFTi
nNov
ember1999,andNEPCi
n

Mar
ch2000.

THERESOURCEOFDOMESTI
CAI
RLI
NE

Theycame,somef
alt
ered,mostf
ellbyt
hesi
de,butwhi
l
etheywer
e

t
her
e,t
heymanaged t
o shakeI
ndi
an Ai
rl
inesf
rom i
tsmonopol
i
sti
c

compl
acency
,andpr
epar
edi
ttobat
tl
efori
tst
ortwi
tht
hel
i
kesofJet

Ai
rway
sandSahar
aAi
rway
sasandwhent
heyf
ly.

Af
teraf
air
lyl
ongboutofuncer
tai
nty
,domest
icai
rl
inesar
eont
he

upswi
ngagai
n.Andasav
iat
ionexper
tspr
oject
ed,onl
ythepl
ayer
swho

under
stoodt
her
ulesoft
hegame,hav
esur
viv
edandar
epr
epar
edt
o

make a comeback t
othi
s gl
amor
ous buthi
ghl
y capi
tal
-int
ensi
ve

i
ndust
ry.

14
JetAi
rway
sison af
leetexpansi
on spr
ee,whi
l
eSahar
aAi
rl
inesi
s

pr
epar
ingf
oraf
acel
i
fet
hatshoul
dreal
l
ygearupt
hedomest
icmar
ket
.

I
ndi
anAi
rl
ines,
despi
tei
tsf
ail
uret
ophaseoutol
derai
rcr
aft
,isr
egai
ning

l
ostgr
ound.

Today
,theI
ndi
anskyi
slef
tforJetAi
rway
s,Sahar
aAi
rl
inesandI
ndi
an

Ai
rl
inest
oexpandandgr
ow…

15
 I
NDI
ANAI
RLI
NES–APROFI
LE

I
ndi
anAi
rl
ines(
IA)i
stheI
ndi
a’
slar
gestgov
ernmentownedr
egi
onal

ai
rl
inesy
stemsi
nAsi
a,wi
thaf
leetof62ai
rcr
aft
s(i
.e.Dor
nierD-
228,

ATR-
42,Boei
ng737,wi
debodi
edai
rbusA300s,oneFl
y-
By-
Wir
eAi
rbus

A320s)
.Indi
anAi
rl
inesbecameoper
ati
onalsi
ncei
tsi
ncept
ioni
nthe

y
ear1953andcel
ebr
atedi
tsGol
denJubi
l
eei
nthey
ear2003compl
eti
ng

i
ts50y
ear
soft
ranscendent
alser
vicei
nai
rtr
avel
i
ng.

I
ndi
anAi
rl
ineshasbeenset
ti
ngt
hest
andar
dsf
orci
vi
lav
iat
ioni
nIndi
a

si
nce i
tsi
ncept
ion.I
thas many f
ir
stt
oit
s cr
edi
t,i
ncl
udi
ng t
he

i
ntr
oduct
ionoft
hewi
de-
bodi
edAi
rbusA300,Domest
icshut
tl
eser
vice

andWal
k-I
nFl
i
ght
s.Mov
ingwi
tht
ime,I
ndi
anAi
rl
inesi
soneoft
hef
ir
st

or
gani
zat
ionsi
nthecount
ryt
oest
abl
i
shawi
despr
eadcomput
eri
zed

net
wor
kforr
eser
vat
ionsandt
icket
ing.

Al
l
ianceAi
rist
hef
ull
yownedsubsi
diar
yofI
ndi
anai
rl
ines.I
ndi
anAi
rl
ines

hast
otalst
affst
rengt
hofappr
oxi
mat
ely19600 empl
oyeeswi
than

annualt
urnov
erofmor
ethanRs4000cr
ores(
1bi
l
li
onUSD)i
ncl
udi
ng

t
hatofAl
l
ianceAi
r.Thepassengercar
ri
age,whi
chwas0.
5mi
l
li
oni
n

1954-
55,hasgr
ownt
o7.
78mi
l
li
oni
n1999-
2000.TodayI
ndi
anAi
rl
ines

16
t
oget
herwi
thi
tssubsi
diar
yai
rl
inescar
ri
esat
otalofov
er7.
8mi
l
li
on

passenger
sannual
l
y,whi
chi
ncl
udes64nat
ionaland16i
nter
nat
ional

dest
inat
ionswi
th35000seat
sdai
l
y?

I
ndi
anAi
rl
ineshav
ebeendi
vi
dedi
ntof
ourr
egi
onsi
.e.East
ernr
egi
on,

West
ernr
egi
on,
Nor
ther
nregi
onandSout
her
nregi
on.TheI
ndi
anAi
rl
ines

i
nter
nat
ionalnet
wor
kspansov
erKuwai
t,Oman,UAE,Qat
arandBahr
ain

i
nwestAsi
a,Thai
l
and,Si
ngapor
e,YangonandMal
aysi
ainsout
h-east

Asi
aandPaki
stan,Nepal
,Bangl
adesh,My
anmar
,Sr
il
ankaandMal
div
es

i
nthesout
hAsi
ansub-
cont
inent
.

I
tsuni
queor
ange&whi
tel
ogoembl
azonedont
het
ail
sofal
lit
sai
rcr
aft

i
sper
hapst
hemostwi
del
yrecogni
zedI
ndi
anbr
andsy
mbolt
hathas

ov
ert
he y
ear
s become sy
nony
mous wi
th ser
vice,ef
fi
ciency and

r
eli
abi
l
ity
.Ithasst
ate-
of-
the-
artf
aci
l
iti
esf
oral
laspect
sofmai
ntenance.

The pi
l
ots ar
etr
ained atHy
der
abad wher
ethe commander
s and

capt
ainsar
etr
ainedi
nal
lty
pesofai
rcr
afti
ntheI
ndi
anAi
rl
inesf
leet
.

St
ate-
of-
the-
artf
ullf
li
ghtsi
mul
ator
sar
eav
ail
abl
eforA300,A320and

B737ai
rcr
aft
s.

TheAi
rl
inesonl
i
nef
aci
l
itypr
ovi
desser
vicesl
i
kePassengerReser
vat
ion,

17
Ti
cket
ing,MessageSwi
tchi
ng and f
aredi
spl
ay.An i
nter
act
ivev
oice

r
ecor
dingsy
stem f
orpr
ovi
dingf
li
ghti
nfor
mat
ioni
sal
soi
ntegr
atedwi
th

t
her
eser
vat
ionsy
stem.

Ai
rl
inecode:
-

I
C- I
ndi
anAi
rl
ines

CD - Al
l
ianceAi
r

Ai
rcr
aftacqui
sit
ion:
-

A300 - Wi
deBodi
edAi
rbusA300

A320 - Fl
y-
By-
Wir
eAi
rbusA320

737 - Boei
ng737

ATR - ATR-
42

228 - Dor
nier228

154 - TU154

62 - I
L62

Cl
ass:
-

C- Busi
nesscl
ass

J- Execut
ivecl
ass

Y- Economycl
ass

Day
s:-

18
 1- Monday

2- Tuesday

3- Wednesday

4- Thur
sday

5- Fr
iday

6- Sat
urday

7- Sunday

FLEETSTRENGTH

AI
RCRAFTTYPE STRENGTH AVGLI
FE(
YRS)

A-
300 4 20.
5

A-
320 41 8.
7

B-
737 11 18.
8

D-
228 2 14.
6

ATR-
42 4 -

19
NUMBEROFSEATSI
NVARI
OUSAI
RCRAFT

AI
RCRAFTTYPE J Y TOTAL

CAPACI
TY

BOEI
NG-
B737 - 119 119

AI
RBUS-
A320 20 125/
126 145/
146

AI
RBUS-
A300B2 33 215 248

AI
RBUS-
A300B4 32 215 247

DORNI
ER-
D228 - 19 19

ATR - 50 50

20
AI
RCRAFTUTI
LIZATI
ON

TYPE OF REVENUEFLYI
NGHOURS UTI
LIZATI
ON PER

AI
RCRAFT AI
RCRAFT PER

ANNUM(
HOURS)

1999-
00 2000-
01 2001-
02 1999-
00 2000-
01 2001-
02

A-
300 24886 24804 19629 2274 2400 2491

A-
320 81680 84346 98042 2954 3048 3178

B-
737 905 431 670 *
*** *
*** *
***

*
***B-
737hasbeengi
venonl
easet
oAl
l
ianceAi
r.

21
 REVENUEFORI
NDI
ANAI
RLI
NES

Todaynear
ly80%oft
hecust
omer
sar
epr
ovi
dedbyt
het
rav
elagent
sto

t
heI
ndi
anAi
rl
inesandt
heset
rav
elagent
sar
e2000i
nnumberspanni
ng

t
hewhol
ecount
ry.I
ndi
anAi
rl
inespr
ovi
des5% and7% commi
ssi
onon

domest
icandi
nter
nat
ional
far
esr
espect
ivel
ytot
het
rav
elagent
s.

SWOTANALYSI
SOFI
NDI
ANAI
RLI
NES

STRENGTHS

 Lar
gef
leet
.

 Exper
iencedst
aff
.

 Dedi
cat
eddepar
tur
eter
minal
atDel
hi.

 Connect
ivi
tywi
tht
her
eser
vat
ioncent
ersandagent
sisgood.

 Adequat
einf
rast
ruct
ureandl
argenet
wor
k.

 Peopl
ear
eloy
alt
owar
dst
henat
ional
car
ri
er.

 Gov
ernmentBacki
ng.

I
ndi
an Ai
rl
ines has a moder
n and compl
etei
n-house t
rai
ning

f
aci
l
ity
.

WEAKNESSES

22
 Hi
ghov
erheadsandhugewor
kfor
cer
esul
ti
ngi
nlowerout
put
.

 Pr
econcei
vedi
mageofPSU’
s.

 At
ti
tudeoft
hest
aff
.

 Agei
ngf
leet
.

I
naccessi
bil
i
tyoft
hest
affov
erphone.

 Pol
i
tical
/Bur
eaucr
ati
cint
erf
erence.

 Ont
hespotdeci
sionmaki
ngf
lexi
bil
i
tynott
her
e.

 Agei
ngwor
kfor
ce(
cabi
ncr
ew)
.

I
ndi
anAi
rl
ineshasi
tssoci
o-economi
cresponsi
bil
i
tyofcat
eri
ngt
o

t
hei
naccessi
bil
i
tyar
easatsubsi
dizedr
ateaf
fect
ingoper
ati
onal

expenses.

 Bei
ngadedi
cat
edt
ermi
nalal
lser
vicesr
ender
edatt
heai
rpor
tis

pr
esumedbypassenger
stobedonebyI
ndi
anAi
rl
ines.

 Jobsecur
it
ytoohi
gh.

OPPORTUNI
TIES

23
 Tour
ism i
ndust
ryi
sgai
ningmoment
um.

I
nduct
ionofnewai
rcr
aft
sonl
ease.

 Response t
o some of t
he pr
omot
ionalf
ares (
schemes) i
s

encour
agi
ng.

 Shel
vi
ng oft
he pr
ivat
izat
ion pl
ans ofI
ndi
an Ai
rl
ines by t
he

Gov
ernmentofI
ndi
a.

 Cor
por
atesar
eshowi
ngi
nter
esti
nIndi
anAi
rl
ines.

 Weakeni
ngoft
hedol
l
arr
atei
ncompar
isont
other
upee.

 Economi
cscenar
ioi
sshowi
nganupt
urn.

THREATS

 Per
cept
ionoft
hebet
terpr
oducti
ncompar
isont
othatoft
he

compet
it
or.

 Recentwor
ldev
ent
shi
tt
ingt
het
our
ism i
ndust
rybadl
y.

 Expect
ati
onofpeopl
efr
om I
ndi
anAi
rl
inesi
shi
gh,ev
ensomeof

t
hem ar
eunr
eal
i
sti
c.

I
ncr
easei
nthecapaci
tyofv
ari
ousai
rl
ines.

 Fal
l
ingmar
ketshar
eofI
ndi
anAi
rl
inest
othatofJetAi
rway
s.

24
 MARKETI
NGSTRATEGYOFI
NDI
ANAI
RLI
NES

Thepr
oductt
hatI
ndi
anAi
rl
inessel
l
sar
e‘SPACE’i
tmaybei
tsseat
sor

car
gospace.Thi
spr
oducti
shi
ghl
yper
ishabl
eandcost
ly.Ai
rl
inesear
n

r
evenuebysel
l
ingt
hisspace.Thi
smeanst
hathi
ghert
heseat
ssol
d

mor
eist
her
evenuegener
ated.Thusi
fthepl
anegoesi
ntheai
rwi
th

empt
yspace,t
hismeanst
hatmuchspacehasper
ished.Thust
hel
i
fe

cy
cleoft
heai
rl
ine’
spr
oductbegi
nsandendswi
theachf
li
ght
.

Themar
ket
ingconceptofbui
l
dinganor
gani
zat
ionar
oundt
hepr
ofi
tabl
e

sat
isf
act
ionofcust
omerneedshashel
pedf
ir
mst
oachi
evesuccessi
n

hi
gh-
growt
h, moder
atel
y compet
it
ive mar
ket
s. Howev
er,t
o be

successf
uli
nmar
ket
sinwhi
checonomi
cgr
owt
hhasl
evel
edandi
n

whi
cht
her
eexi
stmanycompet
it
orswhof
oll
owt
hemar
ket
ingconcept
,

a wel
l
-dev
eloped mar
ket
ing st
rat
egy i
srequi
red.Such a st
rat
egy

consi
der
sapor
tfol
i
oofpr
oduct
sandt
akesi
ntoaccountt
heant
ici
pat
ed

mov
esofcompet
it
orsi
nthemar
ket
.

AFTERMATH

Tor
ect
if
ythemel
odyt
hathasbeensl
owl
ybutsur
elycr
eepi
ng,
resul
ti
ng

i
ncr
ippl
i
ngr
esul
tsanddamagi
ngr
eput
ati
on.I
ndi
anAi
rl
inest
ookr
esor
t

t
otheTur
nAr
oundSt
rat
egywhi
chconst
it
utes t
hef
oll
owi
ng:

25
TURNAROUNDSTRATEGY:

On1stMar
ch1997I
ndi
anAi
rl
inesbecameaPubl
i
cLi
mit
edCompany
.

Ti
l
lnowI
Ahadonl
yemphasi
zedondi
str
ibut
ion,
wit
hmar
ket
ingasanon

-
issue.Si
ncet
hecompanywasf
acedwi
thi
ncr
easi
ngcompet
it
ion,l
ack

ofr
esour
cesandmount
ingl
osses,i
thadt
ofor
mul
ateandi
mpl
ementa

Tur
n Ar
ound St
rat
egy
. To f
ind i
ts pl
ace i
nthe sun agai
n,I
A has

unl
eashedanaggr
essi
vemar
ket
ing&adv
ert
isi
ngexer
cisebackedby

ser
vice up gr
adat
ion & cust
omerf
ri
endl
yov
ert
urns.The new pl
an

consi
sted,
oft
hef
oll
owi
ng:

1.HRDI
nit
iat
ives

Ast
hef
ir
stst
epf
reeandf
rankdi
scussi
onswi
thacr
osssect
ionof

t
heempl
oyeeswer
ehel
d.Top managementunder
tookext
ensi
ve

t
our
sofal
lst
ati
onst
ocommuni
cat
ethedet
ail
sandv
isi
onbehi
ndal
l

maj
orpol
i
cyi
nit
iat
ivesandt
ogett
hei
rresponset
othem.Focuson

t
rai
ning ofper
sonnelwasenhanced t
oincr
easeef
fect
iveness.A

gr
eat
ert
ranspar
encywasbui
l
tint
orecr
uit
mentandt
ransf
erpol
i
cies

wi
thav
iew t
oboost
ingt
hei
rtr
ustandconf
idence.I
nint
eract
ions

wi
thuni
onsandAssoci
ati
onsaf
ir
m butf
airat
ti
tudewast
aken.

Pr
oduct
ivi
ty Li
ned Agr
eement
s,wher
ethe i
nfl
ows exceed t
he

out
fl
owsdespi
tet
hef
actt
hatmar
ketwageswer
ebei
nggi
ven,wer
e

ent
eredi
nto.
26
2.I
ncr
easedUt
il
izat
ionofAi
rcr
aft

Wi
thav
iew t
oincr
easi
ngai
rcr
aftut
il
izat
ion,pi
l
otsneededt
obe

madet
oputi
nmor
efl
yi
nghour
sandst
epshadt
obet
akent
o

i
ncr
easet
henumberofCommander
s.Pr
oduct
ivi
tyofEngi
neer
sal
so

hadt
obel
i
nkedt
othedai
l
yav
ail
abi
l
ityofai
rcr
aft
.

i
. EnhancedPr
oduct
ivi
tyandAv
ail
abi
l
ityofPi
l
ots

The agr
eementsi
gned wi
thI
CPA i
n 1996 r
esul
ted i
nthe

i
ncr
easei
nmont
hlyut
il
izat
ionofPi
l
otsf
rom 50t
o63hour
.

Wi
tht
he pr
omot
ion of80 Pi
l
otsi
ntot
he execut
ive cadr
e

mont
hlyut
il
iz
ati
onwentupf
urt
hert
o75hour
s.

Cer
tai
nrat
ional
i
zat
ion and changes i
ntr
aini
ng pat
ter
ns of

Commander
s,duet
osi
gni
ngofal
andmar
kagr
eementwi
th

pi
l
ots’ Associ
ati
on r
esul
ted i
n i
ncr
eased out
-t
urn of

Commander
s.

i
i
. I
ncr
easedPr
oduct
ivi
tyofEngi
neer
s

Pr
oduct
ivi
tyofEngi
neer
shasal
sosi
gni
fi
cant
lyi
ncr
easedasa

r
esul
tofot
herpr
oduct
ivi
ty-
li
nkedagr
eementt
her
eby

i
ncr
easi
ngdai
l
yav
ail
abi
l
ityofai
rcr
aftasf
oll
ows:

A-
300 7-
8ai
rcr
aftperdayf
rom 4-
5

A-
320 25-
26ai
rcr
aftperdayf
rom 20
27
3.I
ncr
easedI
nter
nat
ionalOper
ati
ons

(
a)I
ndi
anAi
rl
ineswenti
nfori
ncr
easi
ngt
henumberofdest
inat
ionst
o

nei
ghbor
ing count
ri
es. I
n 1997 I
ndi
an Ai
rl
ines oper
ated 12

i
nter
nat
ionalst
ati
ons,whi
chwentupt
o17st
ati
onsi
n1999.The

new st
ati
onsaddedar
eDoha,Kual
aLumpur
,Kuwai
t,Bahr
ainand

Yangon.

(
b)Ont
hedomest
icf
ront–I
Aispl
anni
ngt
ost
artShut
tl
ety
pef
li
ght
son

maj
ormet
ror
out
esl
i
keMumbai
–Bangal
ore,Mumbai
–Chennai
,and

Del
hi-
Bangal
ore.I
thasal
readyst
art
edl
aunchi
ngshut
tl
esont
he

heav
yMumbai
–Del
hir
out
es.

4.Cr
eat
ionofPr
ofi
tCent
ers

Whi
l
eononehand,I
ndi
anAi
rl
ines’si
zei
sst
rengt
h,i
tisal
soamaj
or

di
sadv
ant
agewheni
tcomest
ooper
ati
ngi
naf
astchangi
ngand

compet
it
iveenv
ironment
.Iti
snotpossi
blet
otakedeci
sionsspeci
fi
c

t
osmal
lgr
oupsofempl
oyeeswi
thoutr
efer
encet
othe22003st
rong

wor
kfor
ces.Theor
gani
zat
ioni
sunabl
etobeasni
mbl
easi
toughtt
o

bei
nter
msofdeci
si
onmaki
ng,cust
omerser
viceandempl
oyees

mot
ivat
ion.Consequent
ly,ani
ntegr
alpar
toft
urnar
oundst
rat
egy

wast
ohi
veof
fcer
tai
nact
ivi
ti
esi
ntosepar
atepr
ofi
tcent
ers,
tomake

t
hem mor
efocused,f
lexi
bleandaccount
abl
e.Al
soamor
edi
rect

l
i
nkage bet
ween pr
oduct
ivi
tyand emol
ument
shasbeen cr
eat
ed,
28
 t
her
ebyr
educi
ngpr
obl
emsofi
ndust
ri
alr
elat
ions.

Thef
ir
stofsuchpr
ofi
tcent
erswast
hest
ate-
of-
the-
artJetEngi
ne

Ov
erhaul
ShopatDel
hi.

Si
mil
arl
ytheCent
ralTr
aini
ngEst
abl
i
shmentatHy
der
abadwasal
so

conv
ert
edi
ntoaPr
ofi
tCent
re.Onconv
ersi
onasPr
ofi
tCent
ret
he

ear
ningsofCTE f
rom out
sidepar
tyj
obsaf
terf
ull
ymeet
ing t
he

r
equi
rementofI
ndi
anAi
rl
ines,i
ncr
easedf
rom Rs.30l
akhsi
n1997-

95t
oRs.390l
akhsi
n1999-
97.

Recent
lyt
heAuxi
l
iar
yPowerRepai
rUni
tatCal
cut
ta,t
heGr
ound

Suppor
tDepar
tmentand t
he Car
go Depar
tmenthas al
so been

decl
aredaPr
ofi
tCent
re.

I
ndi
anAi
rl
ineshasal
sosetupasubsi
diar
yai
rl
ine,Al
l
ianceAi
r.Thi
s

ai
rl
inehashel
pedi
nincr
easedut
il
izat
ionoft
heBoei
ngai
rcr
aftby

i
nduct
ing Commander
sfr
om t
he open mar
ketand f
ocusi
ng on

r
egi
onalr
out
es.I
thas al
so enabl
ed t
he Commander
sinI
ndi
an

Ai
rl
inest
obeut
il
izedmor
eopt
imal
l
yonA-
300andA-
320f
leet
.

5.Mar
ket
ingI
nit
iat
ives

I
ndi
anAi
rl
inest
ookanumberofeconomi
cini
ti
ati
vesandbr
ought

aboutsi
gni
fi
canti
mpr
ovement
sini
ts pr
oduct
. Sust
ained and

meani
ngf
ulcampai
gn was l
aunched t
o di
ssemi
nat
einf
ormat
ion

29
aboutt
hesei
mpr
ovement
s.Themar
ket
ingi
nit
iat
ivest
akenwer
e:

I
. PRODUCTI
MPROVEMENT

1999-
00

EXTRASEAT-
PITCH:

Ext
raseat
-pi
tchi
nB-
737andEconomyCl
assofAi
rbusA-
300.

WI
DERSEATS:

Wi
derseat
s pr
ovi
ded i
n Execut
ive Cl
ass ofAi
rbus A-
320

ai
rcr
aft
.

CHOI
CEOFMEALS:

I
ntr
oduct
ionofachoi
ceofmeal
s,br
ead/
frui
tbasket
s,soups,

damaskl
i
nent
abl
ecl
othandnapki
ns,
hotandcol
dtowel
s.

FREQUENTFLI
ERPROGRAMME:

I
A has f
urt
herst
rengt
hened i
tsf
requentf
lyer
s pr
ogr
amme

(
FFP)
,by ent
eri
ng i
ntoar
eci
procalar
rangementwi
th Ai
r

Fr
anceandl
aunchi
ngJoi
ntPr
omot
ionswi
thAmer
icanExpr
ess,

Her
tzRent–a–carandt
heWel
comegr
oup.I
tal
sol
aunched

amaj
ordr
ivet
oenr
ollmor
emember
stoi
tsFFPpr
ogr
am,
wit
h

l
uckydr
awsf
oral
uxur
ycar
,forwhi
chpassenger
swhohad

f
lownatl
eastf
ivet
imesbet
weenmi
d-December2000andmi
d

-
Mar
ch2001,
tri
edt
hei
rluck.

30
SENI
ORCI
TIZENDI
SCOUNT:

Per
sonswhohav
eat
tai
nedt
heageof65y
ear
sont
hedat
eof

t
rav
ell
andwhoar
eresi
dentci
ti
zensofI
ndi
aar
eent
it
ledt
o50%

di
scountont
henor
mal
rupeeAdul
tFar
e.

WAI
VINGOFCANCELLATI
ONCHARGES:

2000-
01

I
ndi
anAi
rl
ineshaswai
vedofcancel
l
ati
onchar
ges,pr
ovi
ded

t
her
eser
vat
ioni
scancel
l
edonehourbef
oret
heschedul
ed

depar
tur
eoft
hef
li
ght
.Ther
ewi
l
lbeanomi
nal
ref
undf
eeofRs.

100/
-onl
yincaset
het
icketi
sref
unded/
rei
ssued.

CHECK-
INPLUS:

Assi
stancef
ormi
nor
s,el
der
lyandhandi
cappedpassenger
s.

BAGGAGEPLUS:

BaggageAl
l
owanceonal
ldomest
icf
li
ght
senhancedby10

ki
l
ogr
ams.I
nfant
sal
soal
l
owed10ki
l
ogr
amsoff
reeBaggage

Al
l
owance.

DI
ETSPECI
AL:

Li
ght
,low f
at,easi
l
ydi
gest
ibl
ereci
pesmadebynew cooki
ng

met
hodsandmedi
ums,
sugar
,sal
t,andf
atf
reedi
etmeal
sand

mi
ner
alwat
er.

MEALSPECI
AL:

31
 Bet
terpr
esent
edmeal
swi
thweekl
ychanges.

TRANSI
TSPECI
AL:

Speci
alTr
ansi
tDesks,t
hroughcheck-
inofbaggageandmeal
s

dur
ingt
ransi
twai
ti
ngt
ime.

FESTI
VALFOODS:

Passenger
swer
e ser
ved speci
alsweet
son Di
wal
i
,Bengal
i

f
oodonDur
gaPuj
a,Av
adhif
oodonHol
iandPl
um Cakeon

X’
mas.

DI
AL-
A-CANCELLATI
ON:

Passenger
sandTr
avelAgent
scannowef
fectcancel
l
ati
onon

t
elephoneort
hroughf
axmessage.

REPORTI
NGTI
ME:

Repor
ti
ngTi
mer
educedf
rom 75mi
nut
est
o60mi
nut
esatal
l

t
heai
rpor
tsexceptDel
hi,
Sri
nagar
,LehandJammu.

I
I. RESERVATI
ONFACI
LITI
ES

 Tof
aci
l
itat
ereser
vat
ionbet
weenanyt
wost
ati
onsofI
ndi
an

Ai
rl
ines net
wor
k,t
he i
nst
antr
eser
vat
ion f
aci
l
ity has been

ext
endedt
oat
otal
numberof69st
ati
ons.

 Oft
he53domest
icst
ati
onswher
eIndi
anAi
rl
inesf
li
ght
sar
e

32
 bei
ng oper
ated pr
esent
ly,52 st
ati
ons ar
e equi
pped wi
th

comput
eri
zedr
eser
vat
ionf
aci
l
ity
.

 Al
lthe 17 i
nter
nat
ionalst
ati
ons,wher
eIndi
an Ai
rl
ines i
s

pr
esent
lyoper
ati
ngar
eequi
ppedwi
thCRTt
ermi
nal
s.

 Comput
eri
zed r
eser
vat
ion f
aci
l
iti
es ext
ended t
o about750

agent
sspr
eadov
er38st
ati
ons.

I
ndi
anAi
rl
inesandAi
rIndi
ajoi
ntl
yunderNat
ionalMar
ket
ing

Di
vi
sion(
NMD)ar
edi
str
ibut
ingSy
stemsI
nter
facef
orTr
avel

Agent
s Reser
vat
ions (
SITAR)
,whi
ch i
sthe st
ate-
of-
the ar
t

t
echnol
ogyf
rom SABRE.

6.I
ncent
iveSchemes

I
A hasr
eal
i
zedt
hatunl
esst
hedi
str
ibut
ionnet
wor
kisr
ejuv
enat
ed

wi
thgener
ousdosesofi
ncent
ives,t
heagent
s,whoaccountf
ort
wo-

t
hir
dsoft
heai
rl
inesal
es,wi
l
ljustnotr
espond. Theai
rl
inehas

i
ntr
oducedat
hreepercentsect
or-
li
nked– i
ncent
ive-
commi
ssi
on,

whi
ch can be deduct
ed by agent
s atsour
ce. Ev
en t
he bank

guar
ant
eeswer
efr
ozenatl
asty
ear
’sl
evelf
oral
ltheagent
sandnot

r
aised t
o mat
ch ov
ert
radi
ng.The guar
ant
ees wer
erai
sed i
n

pr
opor
ti
on of i
ncr
easi
ng busi
ness,whi
ch i
nvar
iabl
y di
scour
age

agent
sfr
om pl
umpi
ngf
ormor
esal
es.Theai
rl
inessetupan“
agency

hel
pdesk”t
ofocusonpr
obl
emsoft
het
rade.Hi
gh–speedmodems

33
 ar
eal
sobei
ngi
nst
all
edt
ofaci
l
itat
efast
ert
ransact
ions.

7.Pr
ice

I
nthey
ear1999,
IAst
art
eda“
makeupst
rat
egy
”i.
e.sl
ashi
npr
icef
or

t
hemakeupofl
osses.I
twasf
oll
owedupbymanyai
rl
inesasaqui
ck

penet
rat
ingst
rat
egyt
odr
awi
nbi
gcr
owds.

TheGener
alManager
sint
hef
ourr
egi
onshav
ebeenaut
hor
izedt
o

ext
end a 15% bul
kdi
scountt
o passengergr
oups dependi
ng on

mar
ketcondi
ti
ons;poi
nt-
to-
poi
ntf
ares hav
e been r
ati
onal
i
zed (
a

speci
aldi
scountof9%i
sof
fer
edon135speci
fi
crout
es)andexcess

baggagepay
ment
sar
eaccept
edi
ncr
edi
tcar
ds.

8.Pr
omot
iont
hroughFr
equentFl
yerPr
ogr
amme(
FFP)

Toaddmor
eval
uet
oit
sFFP,I
Aist
alki
ngt
obot
hAmer
icanExpr
ess

andCi
ti
bankt
oissueaco-
brandedcar
d,whi
chwi
l
lof
ferahostof

benef
it
sagai
nstt
icketpur
chaseandent
ert
ainmentexpenses.I
tis

al
sosi
gni
ngupa‘
fl
yi
ngr
etur
ns’agr
eementwi
thCi
ti
bank,whi
chwi
l
l

ent
it
le user
stor
edeem t
hei
rcr
edi
tcar
d poi
ntsagai
nstmi
l
eage

poi
ntsandf
reet
icket
sther
eaf
ter
.

34
 9.Of
ferofFr
eePager
sbyMobi
l
ink

I
thasal
sot
iedupwi
thMobi
l
inkt
oof
ferf
reepager
stosome70,
000

f
requentf
lyer
satsi
xmaj
ormet
ros.Thepager
swi
l
lenabl
etheai
rl
ine

t
oinf
ormt
hepassengeraboutt
hechangesi
nschedul
e,f
li
ghtdel
ay

et
c.Whi
l
ethepager
sser
vicewi
l
lbef
reei
nthef
ir
sty
ear
,int
he

subsequenty
ear
s,Mobi
l
inkwi
l
llev
yanomi
naluserf
ee.Thepager

Companywi
l
lthusacqui
real
argechunkofcust
omer
sand‘
sel
l

adv
ert
isement
s’ont
hepager
.

10.Cust
omerCont
actPr
ogr
amme

Theai
rl
inei
sfi
nal
l
ylay
ing mor
eemphasi
son cust
omercont
act

pr
ogr
ams.I
nor
dert
odesi
gnani
dealf
li
ghtschedul
e,I
Ahashi
red

I
MRB t
omeetasampl
egr
oupof10,
000f
requentf
lyer
satDel
hi,

Mumbai
,Chennai
,andCal
cut
ta.I
tisal
sor
opi
ngi
nadi
rectmar
ket
ing

agencyt
orespondt
opassenger
sgr
iev
ances.

11.Touchdownboar
ds

Themessaget
othepassenger
,obv
iousl
yis,“
wecar
e”.Toi
ncr
ease

cust
omerawar
eness,t
heai
rl
inehasputup“
touchdown”boar
dsat

t
hesi
xmaj
ormet
ros,t
okeeppassenger
sinf
ormedaboutcust
omer

r
elev
antdev
elopment
sint
heai
rl
inesuchast
hemont
hlypr
oduct

upgr
ade,v
alueaddi
ti
onschemes,pr
omot
ionalef
for
ts,l
uckydr
aws

et
c.The ai
rl
ine has al
so l
aunched adv
ert
isementcum medi
a

35
 bl
i
tzkr
iegt
odr
ivehomei
tsst
rengt
hs:I
A’sschedul
eadv
ant
age,
same

dayr
etur
nfaci
l
ity
,mul
ti
pleopt
ions,
etc.

12.Adv
ert
isementCum Medi
aBl
i
tzkr
ieg

Desi
gned,dev
elopedandexecut
edbyNexusEqui
tyAdv
ert
isi
ng,now

knownasEnt
erpr
iseNexusCommuni
cat
ionsaf
teri
tsmer
gerwi
th

Ent
erpr
iseAdv
ert
isi
ng,t
hemar
ket
ingpr
ogr
ammei
samul
ti
-medi
a

communi
cat
ion modul
e.The package ai
ms atest
abl
i
shi
ng t
he

st
rengt
hsofI
A,r
einf
orci
ngi
tsl
eader
shi
pandov
eral
limpr
ovi
ngi
ts

i
mageamongstbusi
nesst
rav
eler
s,ast
hepr
imar
ytar
get
.Iti
ncl
udes

pr
essads,post
ers,pi
ctur
epost
car
ds,cal
endar
sandt
he“
trav
elwi
se

consumercont
actpr
ogr
amme”
.

Thef
ir
stcampai
gni
n1998hi
ghl
i
ght
edI
A’st
angi
blest
rengt
hs.Usi
ng

anal
mostnegat
ivecr
eat
iveappr
oach,
thr
oughaconf
essi
onalt
onet
o

di
sar
mtheangr
ypassenger
s,oneoft
headssai
d:“
Weadmi
tIndi
an

Ai
rl
inesdoesnotgi
vey
out
hesamechoi
ceasot
her
sdo”
,fol
l
owedby

copyt
hatr
ead,“
Indeed,noot
herai
rl
ineof
fer
ssuchawi
dechoi
ceof

ai
rcr
aft
,and notj
usta choi
ceofseat
s. Ov
eral
l
,thi
scampai
gn

hi
ghl
i
ght
edI
A’sf
leetsi
ze,mai
ntenanceef
fi
ciency
,inf
rast
ruct
ure,l
eg

r
oom,
ext
rabaggageal
l
owance.

Thesecondcampai
gni
nthesamey
earwasapr
ogr
essi
onoft
hef
ir
st

36
 buti
tadopt
edanemot
ionalappr
oachwi
thl
i
nessuchas:“
Ichoose

myai
rl
inet
hesamewayIchoosemydoct
or,
onsheerexper
ience”
.

At
hir
dcampai
gn,st
il
longoi
ng,at
tempt
stonowbr
ingoutconsumer

benef
it
sthatar
isef
rom I
A’sst
rengt
hst
hatwer
ebr
oughtouti
nthe

pr
evi
ous campai
gns.Whi
l
ethe v
isual
s emphasi
sthe r
each and

spr
eadofI
ndi
anAi
rl
ines,
thet
onei
smor
easser
ti
ve.

13.Car
goHandl
i
ng

I
nthepassengersegment
,theI
Acar
godi
vi
sion–ani
ndependent

pr
ofi
tcent
renow-
hasl
aunchedanal
l
-outdr
ivet
ogar
neral
argeshar
e

oft
hebusi
ness.Unl
i
ket
hepassengersegment
,thecar
gocel
lst
il
l

r
etai
nsabout80%oft
hemar
ket
.Butcompet
it
ioni
ssl
owl
ycat
chi
ng

up.

I
nter
est
ingl
y,t
headcampai
gnl
aunchedbyt
hecar
godi
vi
sionseeks

t
ohi
ghl
i
ghtt
hechangi
ngf
aceofbusi
ness.I
tunder
scor
est
hev
ast

net
wor
k,i
ts excl
usi
vet
ie-
up wi
th GATIf
ordoor
-t
o-doorexpr
ess

ser
vice,aspeci
alar
rangementt
ogogl
obalwi
thAi
rFr
anceandan

at
temptt
otouchev
erynookandcor
neroft
hecount
rywi
tht
heI
ndi
an

Post
sandTel
egr
aphsDepar
tment
.

I
A hasl
ear
ntt
obeal
otmor
efl
exi
blei
nit
sdeal
i
ngswi
thcar
go

agent
snow.I
tisal
sowor
kingataut
omat
ionofal
lthecar
goof
fi
cer
s.

37
 Consol
i
dat
ionofassor
tedcar
gowi
thbul
krat
esi
snowbei
ngal
l
owed,

andf
rei
ghtr
atesar
ebei
ngr
evi
sedi
nst
eadofst
icki
ngt
opubl
i
shed

t
ari
ff
s.Whatwasunt
hinkabl
eti
l
lsomey
ear
sabackhasnowbecome

adi
sti
nctr
eal
i
ty.

Thr
oughal
lit
sef
for
ts,I
Aisgr
adual
l
ytr
yingt
oshedi
tsmonol
i
thi
c

i
mage. Andi
tscommuni
cat
ionexer
cisehas;atl
east
,gi
veni
ta

cl
ear
erf
aceasf
arast
heconsumeri
sconcer
ned.Butt
hispubl
i
c

sect
oror
gani
zat
ionwi
l
lhav
etokeepi
tsboot
str
apspul
l
edupi
fit

want
stor
etai
nleader
shi
pint
hemar
ketpl
ace.For
,pr
ivat
eai
rl
ines

ar
enotexact
lysi
tt
ingbackont
hei
rhaunches.

CONSEQUENCESOFTURNAROUNDSTRATEGY:

1.Ai
rcr
aftut
il
izat
ioni
ncr
eases-

Agoodav
erageut
il
izat
ionofai
rcr
afti
s2600hour
sperai
rcr
aftper

annum,whi
chwasdownt
oal
ow of1600hour
sin1997.Ef
for
ts

wer
e made t
oincr
ease ai
rcr
aftut
il
izat
ion by i
ncr
easi
ng t
he

pr
oduct
ivi
tyofengi
neer
s,pi
l
otsandbyi
ncr
easi
ngt
henumberof

commander
s.Ai
rcr
aftut
il
izat
ionnow wel
lexceedst
hedesi
red

nor
m of2600hour
sperannum.

2.Pr
oduct
ivi
tyofpi
l
otsr
ises-

Wi
th t
he i
mpl
ement
ati
on of t
he t
urnar
ound st
rat
egy
,pi
l
ot

38
 pr
oduct
ivi
tyr
osesubst
ant
ial
l
y.I
nfact
,themont
hlyav
eragef
lyi
ng

i
ncr
easi
ngf
rom 50t
o63hour
sini
ti
all
y,andt
hent
o75hour
s.

3.Pr
oduct
ivi
tyofengi
neer
sgr
ows-

The numberofai
rcr
aftmade av
ail
abl
eforoper
ati
on perday

measur
es engi
neer
ing pr
oduct
ivi
ty. The ai
rcr
aft av
ail
abi
l
ity

i
mpr
ovedsi
gni
fi
cant
lyov
ert
hel
astt
hreey
ear
s.Theav
ail
abi
l
ityof

A300swentupf
rom amer
e4ai
rcr
aftperdayi
n1997t
o8i
n2000

andA320f
rom 20i
n1997t
o27ai
rcr
afti
n2000.

4.Cr
eat
ionofCommander
s-

I
ndi
anAi
rl
ineshadl
ost166pi
l
otst
opr
ivat
eai
rl
ines.Af
tert
he

r
evi
sedt
rai
ningpat
ter
n,t
henumberofnewcommander
saddedt
o

t
he f
leetst
rengt
h each y
earr
ose dr
amat
ical
l
y,f
rom 20 new

commander
saddedi
n1997-
95t
o67i
n1999-
97.

5.I
nter
nat
ionaloper
ati
ons-

Af
ter1997f
ivenewdest
inat
ionswer
eadded-Doha,
Kual
aLumpur
,

Kuwai
t,YangonandBahr
ain.Al
so,f
if
teennew i
nter
nat
ionalci
ty

l
i
nkswer
eadded.

6.Empl
oyeemor
ale-

Wi
thi
ncr
easedt
rai
ningef
for
tsandmanagement
-st
affi
nter
act
ion,t
her
e

39
wasav
isi
bleupsur
gei
nmor
aleandpr
oduct
ivi
tyamongempl
oyees.

Whati
ssi
gni
fi
canti
sthatnoman-
day
swer
elosti
nthel
astt
woy
ear
s.

7.Cr
eat
ionofpr
ofi
tcent
ers-

a.Est
abl
i
shmentofAl
l
ianceAi
r

Ther
ewasadr
amat
ici
ncr
easei
ntheut
il
izat
ionofB737,A320

andA300ai
rcr
aftwi
tht
hehi
ri
ngofnew commander
sand

pi
l
ots,
whi
chbenef
it
edbot
hAl
l
ianceAi
randI
ndi
anAi
rl
ines.

b.JetEngi
neOv
erhaulShop

As a r
esul
toft
he cr
eat
ion ofsepar
ate pr
ofi
tcent
re,t
he

Ov
erhaulShopsav
est
hecompanyanamountofRs.2.
85cr
ore

i
nfor
eignexchangeev
eryy
ear
.

c.Cent
ralTr
aini
ngEst
abl
i
shment

Pr
iort
oit
sset
ti
ngupasapr
ofi
tcent
re,t
heannualr
evenue

wasar
oundRs.30l
akh.Thi
sincr
easeddr
amat
ical
l
y,wi
tht
he

r
evenuet
ouchi
ngRs.390l
akhdur
ing1999-
97.

8.Passengerper
cept
ioni
mpr
oves-

Fr
om t
he‘
l
eastpr
efer
red’ai
rl
inei
n1997,I
Ahasnowbecomet
he

40
 ‘
mostpr
efer
red’
air
li
ne.

I
mage t
racki
ng st
udi
es car
ri
ed outf
rom amongstt
he ai
rl
ine

passenger
sbyt
her
eput
edmar
ketr
esear
chagencyI
MRB,
overt
he

l
astt
hreey
ear
s,show t
hatI
ndi
anAi
rl
inesi
snow aheadoft
he

pr
ivat
eai
rl
ines.

Ot
hersur
vey
scar
ri
ed outbyr
eput
ed or
gani
zat
ionssuch asMARG,

MODEandMDRAal
soshow t
hatI
ndi
anAi
rl
inesi
sthemostpr
efer
red

car
ri
erpr
esent
ly.

Si
ncet
hisi
saser
vicei
ndust
rywi
thani
ntangi
blepr
oduct
,how doy
ou

mar
keti
t?

Mar
ket
ingt
het
angi
bleaspect
sassoci
atedwi
tht
hei
ntangi
blepr
oduct

doesi
t.Thet
angi
bleaspect
sincl
udepr
ice,pr
omot
ionandpl
ace.To

di
sti
ngui
shourpr
oductf
rom t
hatofot
her
swehav
etomaneuv
ert
he

4P’
sofmar
ket
ingi
.e.Pr
oduct
,Pr
ice,Pr
omot
ionandPl
ace(
placeof

di
str
ibut
ion)
.

Si
ncet
hepr
oductofal
ltheai
rl
inesi
sthesame,whydoesoneai
rl
ine

f
arebet
tert
hant
heot
her
?Thi
sisbecauseoft
heposi
ti
oni
ngoft
he

br
andi
nthemi
ndoft
hecust
omer
.Thi
sappr
oachi
sneededbecause

consumer
sar
ebombar
dedwi
thacont
inuousst
ream ofadv
ert
isi
ng.The

consumer
smi
ndr
eact
stot
hishi
ghv
olumeofadv
ert
isi
ngbyaccept
ing

onl
ywhati
sconsi
stentwi
thpr
iorknowl
edgeorexper
ience.

41
Theeasi
estwayofget
ti
ngi
ntosomeone’
smi
ndi
stobef
ir
st.I
tisv
ery

easyt
orememberwhoi
sfi
rst
,andmuchmor
edi
ff
icul
ttor
emember

whoi
ssecond.Ev
eni
fthesecondent
rantof
fer
sabet
terpr
oduct
,the

f
ir
stonemor
eov
erhasal
argeadv
ant
aget
hatcanmakeupf
orot
her

shor
tcomi
ngs.

I
ntheey
esoft
heagent
sJetAi
rway
sist
hebestpl
acedi
ncompar
isont
o

t
hatofI
ndi
anAi
rl
inesi
nthenextpl
acei
ntheey
esoft
hecust
omer
s.

Theyf
eel
thatsamei
sthecasei
ntheey
esoft
hecust
omer
s(t
hisdat
ais

basedont
hesur
veyof48agent
scar
ri
edi
nDel
hi,most
lySout
hDel
hi)
.

I
ndi
anAi
rl
ineswast
hef
ir
stai
rl
inei
nthecount
rybuti
tisnowposi
ti
oned

att
hesecondpl
ace.

42
CHOI
CEOFAI
RLI
NES

43
I
C –I
ndi
anAi
rl
ines

S2 –JetAi
rway
s

9W –Sahar
aAi
rl
ines

44
45
Thi
s shows t
hatpeopl
e ar
e gener
all
yawar
e ofI
ndi
an Ai
rl
ines (
as

compar
edt
oSahar
aandJetandact
ual
l
ytr
avelbyi
tal
so)
.Themost

pr
efer
redf
eat
ureoft
headv
ert
isementhappenst
obepr
esent
ati
onf
or

I
ndi
anAi
rl
ines.Asr
egar
dsJetAi
rway
speopl
ear
emoder
atel
yawar
eofi
t

andal
sot
rav
elbyi
t.Mostl
i
kedf
eat
ureoft
headv
ert
isementi
sthe

message.Si
mil
arl
yinSahar
aAi
rl
inest
hef
eat
uremostpr
efer
redi
sthe

medi
a.

Thi
sshowst
hatpeopl
ewhoar
eawar
eoft
heai
rl
inear
enotj
ustv
erbal
l
y

awar
ebutal
sopr
efert
otr
avelbyt
hatai
rl
ine. Thi
sdepi
ctst
hatt
he

ef
fectofadv
ert
isementofi
sdi
rect
lypr
opor
ti
onalt
otheusest
othe

ai
rl
ines.

Besi
dest
hehi
ghper
cent
ageofI
ndi
anAi
rl
inest
rav
eler
scanbeat
tri
but
ed

t
othef
actt
hatf
ort
hegov
ernmentof
fi
ci
alsi
tismandat
oryt
otr
avelby

I
A.

Hencet
hequest
ionar
isest
hathowI
Aposi
ti
oni
tsel
f?

46
Posi
ti
oni
ng ofa ser
vice can be done ei
thert
hrough pr
omot
ional

schemesort
hrought
hel
evel
ofser
vicepr
ovi
ded.

PROMOTI
ONALSCHEMES-

Pr
omot
ionaldeci
sionsar
ethoser
elat
edt
ocommuni
cat
ingandsel
l
ing

t
o pot
ent
ialconsumer
s.Whi
l
e comi
ng out wi
tht
he pr
omot
ional

schemesi
tiswor
thwhi
l
etonot
ethepr
ofi
l
eofcust
omer
sser
ved.

PROMOTI
ONALFARES-

Di
ff
erentt
ypesofpr
omot
ionalf
aresar
eint
roducedt
oat
tractmor
eand

mor
epassenger
stot
rav
eli
nspeci
fi
cai
rl
inest
opr
omot
esal
es.Wi
tht
he

i
mpl
ement
ati
on ofpr
omot
ionalf
ares t
he mot
ivei
stoi
ncr
ease t
he

numberofai
rl
ine l
oyalpassenger
s and ofcour
se r
evenue.I
ndi
an

Ai
rl
inesf
oll
owsdualf
arepol
i
cyf
ori
tsdomest
icser
vice.Thet
wot
ypes

off
aresar
easf
oll
ows:

1)USDFARE-

A.USDf
arei
sappl
i
cabl
eforal
lsal
esmadeabr
oadf
ordomest
ic

t
rav
elwi
thi
nIndi
a.

B.USDf
arei
sal
soappl
i
cabl
eforal
lsal
esmadei
nIndi
afor

47
 domest
ict
rav
elwi
thi
nIndi
aforf
oll
owi
ngcat
egor
iesof

passenger
s:

i
. For
eignnat
ional
s.

i
i
. I
ndi
annat
ional
sresi
dingper
manent
lyout
sideI
ndi
a.

C.Unl
essandunt
ilspeci
fi
edot
her
wise,
USDf
arei
sappl
i
cabl
efor

al
lsal
esmadewor
ldwi
dei
ncl
udi
ngI
ndi
afordomest
ict
rav
el

wi
thi
nIndi
aagai
nstt
hef
oll
owi
ngdocument
s:

i
. Sal
eagai
nstdocumentofi
nter
li
nespat
rons.

i
i
. Sal
eagai
nstI
Aint
ernat
ional
MCOs/
PTAs.

i
i
i. Sal
eagai
nsti
nter
nat
ional
credi
tcar
dsandUATPcar
d.

2)I
NRFARE-

I
NRf
arei
sappl
i
cabl
eforal
lsal
esi
nIndi
afordomest
ic

t
ranspor
tat
ionwhol
l
ywi
thi
nIndi
afort
hef
oll
owi
ngcat
egor
yof

PAX:

A.I
ndi
annat
ional
sper
manent
lyr
esi
dingi
nIndi
a.

B.I
ndi
a,Nepal
,Bhut
anese,Ti
bet
anr
efugeesr
esi
dingi
nIndi
a,Nepal

andBhut
an.

C.For
eignnat
ional
study
ingi
nIndi
aandhol
dingar
esi
dentper
mit
.

D.For
eignnat
ional
sst
udy
ingi
nIndi
aandwhoar
eot
her
wiseel
i
gibl
e

48
 f
orst
udentdi
scountunderI
Arul
es.

RESERVATI
ON-

 TheComput
eri
zedReser
vat
ionSy
stem atDel
hi,ast
ate-
of-
the-
art

Comput
erMai
nFr
ame,i
saccessi
blet
oal
lmaj
orcomput
eri
zed

r
eser
vat
ion sy
stemsoft
hewor
ld.Thi
senabl
est
hev
alued I
A

passenger
stomaker
eser
vat
iononanyI
ndi
anAi
rl
inesf
li
ghtf
or

anysect
oral
lov
ert
he net
wor
kfr
om a si
ngl
elocat
ion i
nit
s

booki
ng of
fi
ce atanyst
ati
on.Besi
des,t
her
e ar
e near
ly2000

appr
oved t
rav
elagent
s al
lov
erI
ndi
a att
he ser
vice ofour

passenger
s.

 Passenger
scanal
somaket
her
eser
vat
ionov
ert
elephoneont
ime

l
i
mitbasi
sand pur
chaset
het
icket
sbef
oret
heexpi
ryoft
he

i
ndi
cat
edt
imel
i
mit
.

 Whi
l
emaki
ngt
her
eser
vat
iont
hepassenger
sneedt
oindi
cat
eal
l

t
her
econt
actnumber
s,i
ncl
udi
ngt
hei
rresi
dence,busi
nessand

mobi
l
enumber
s,wher
etheycanbecont
act
edatal
lpoi
ntsoft
hei
r

i
ti
ner
ary
.Thi
shel
psI
Atoi
nfor
mthepassenger
swher
evert
heyar
e

i
ncaseofanyschedul
echangeordel
ayt
othei
rfl
i
ght
.

49
  Passenger
sal
soneedt
ogi
vet
hei
rmealpr
efer
enceatt
het
imeof

maki
ngr
eser
vat
ions.

 Al
sospeci
alassi
stancei
sof
fer
edt
othepassenger
swhor
equi
re

speci
alhandl
i
ngov
erandabov
ethenor
malat
tent
ion,l
i
ket
he

di
sabl
ed,t
hose on wheelchai
r,st
ret
cherorunaccompani
ed

mi
nor
s.Suchr
equest
sforspeci
alat
tent
ionmaybemadet
othe

ai
rl
ine’
sof
fi
cewhi
l
emaki
ngr
eser
vat
ions.

FARES-

I
Adomest
icf
aresar
equot
edbot
hinI
ndi
anRupees(
INR)aswel
l

asUSDol
l
ars(
USD)
.TheI
NRf
areconsi
stsofbasi
cfar
eandt
wo

gov
ernment
all
evi
edt
axes,namel
yInl
andAi
rTr
avelTax(
IATT)

andPassengerSer
viceFee(
PSF)
.TheI
NRf
arei
sappl
i
cabl
eto

r
esi
dentI
ndi
ansonl
ywhi
l
ethedol
l
arf
arei
sappl
i
cabl
etof
orei
gn

nat
ional
sandnon-
resi
dentI
ndi
ans.

 Besi
des,t
her
ear
esomespeci
alf
aresanddi
scount
sforseni
or

ci
ti
zens,st
udent
s,t
he ar
med f
orces per
sonnel
,wardi
sabl
ed

per
sonsandmanyot
her
s.

 Det
ail
sofal
lconcessi
onsandspeci
alf
aresar
eav
ail
abl
eatal
l

50
 I
ndi
anAi
rl
inesbooki
ngof
fi
cesandt
rav
elagent
s.

CANCELLATI
ONCHARGES-

 Toal
l
owf
lexi
bil
i
tyt
oourpassenger
sint
hei
rtr
avelpl
an,
wedonot

l
evyanycancel
l
ati
onchar
gepr
ovi
dedt
hecancel
l
ati
oni
sef
fect
ed

atl
eastonehourbef
oret
heschedul
eddepar
tur
e.

 Rebooki
ng and Ref
und char
ges maybe appl
i
cabl
e on a f
ew

speci
fi
edr
out
esdur
ingpeakseasont
oav
oidf
ict
it
iousbooki
ng

andhel
pav
ail
abi
l
ityofseat
stobonaf
idepassenger
s.

 Al
thought
her
ear
enocancel
l
ati
onchar
ges,
‘No-
Show’
char
gesar
e

appl
i
cabl
eifaconf
ir
medr
eser
vat
ioni
snotcancel
l
edatl
eastone

hourpr
iort
odepar
tur
e.Nor
efundexceptI
ATT/
PSFi
sper
missi
ble

ona‘
No-
Show’
ticket
.

 Passenger
scanef
fectcancel
l
ati
ononphoneorf
axt
oourmai
n

booki
ngof
fi
cesandpr
esentt
het
icketphy
sical
l
yforcancel
l
ati
on

wi
thi
nTwent
y-f
ourhour
s.

 Ref
undAdmi
nist
rat
ionFeei
slev
iedwhi
l
eaf
fect
ingt
her
efundf
or

unut
il
izedt
icket
s.Thedet
ail
scanbeobt
ainedf
rom t
heI
ndi
an

\
Air
li
nesof
fi
cesandt
rav
elagent
s.

 Passenger
smustkeept
hei
rti
cket
sinsaf
ecust
ody
,asnor
efund

i
s per
missi
ble agai
nstl
ostt
icket
s.Howev
er,f
ori
nter
nat
ional

51
 t
rav
elwher
epasspor
tcont
roli
spossi
ble,
dupl
i
cat
eti
cket
scanbe

i
ssuedaf
tercompl
eti
onofcer
tai
nfor
mal
i
ties.

VALI
DITYOFTI
CKETS-

I
Adomest
ict
icket
s,i
ssuedonnor
malf
are,ar
eval
i
dforoney
earf
rom

t
hedat
eofi
ssue.I
nter
nat
ionalt
icket
sar
eval
i
dforoney
earf
rom t
he

dat
eoft
rav
elont
hef
ir
stl
egofj
our
ney
.Val
i
dit
yoft
icket
sissuedon

concessi
onalandspeci
alf
aresmaybedi
ff
erentasgov
ernedbyt
he

r
ulesappl
i
cabl
etot
hatpar
ti
cul
arconcessi
on.

DI
FFERENTTYPESOFPROMOTI
ONALFARES-

Di
ff
erentt
ypesofpr
omot
ionalf
aresar
eint
roducedt
oat
tractmor
eand

mor
ecust
omer
stot
rav
eli
naspeci
fi
cai
rl
ine.Thepr
omot
ionalf
areson

whi
chIhadwor
kedar
easf
oll
ows:

 Pr
omot
ionalOne-
WayFar
e(POW)-Pr
omot
ionalone-
way
-far
eis

f
ort
rav
eli
ntr
oducedi
none-
wayonaspeci
fi
csect
or.

Eg:
-Del
hi-
Mumbai
sect
or.

Fol
l
owi
ngt
abl
eshowst
henumberofpassenger
sthatt
rav
eled

i
nPOW pr
omot
ional
far
eschemeoutoft
het
otal
numberof

passenger
sint
hey
ear2003-
2004(
Apr
il2003–Mar
ch2004)i
n

f
ewsect
ors:

52
 Round Tr
ip Pr
omot
ionalFar
e/Ret
urn Far
e(RTP) – Round

t
ri
ppr
omot
ional
far
eisf
ort
rav
elt
o&f
roonaspeci
fi
csect
or.

Eg:
-Del
hi-
Mumbai
-Del
hisect
or.

Fol
l
owi
ngt
abl
eshowst
henumberofpassenger
sthatt
rav
eledi
n

RTPpr
omot
ional
far
eschemeoutoft
het
otal
numberof

passenger
sint
hey
ear2003-
2004(
Apr
il2003–Mar
ch2004)i
n

f
ewsect
ors:

 Fl
i
ghtSpeci
fi
cFar
e(FS)–Fl
i
ghtspeci
fi
cfar
eisi
ntr
oducedont
hat

par
ti
cul
arf
li
ghtonl
y.

Eg:
-TheFl
i
ghtSpeci
fi
cFar
eonI
C-801.

Fol
l
owi
ngt
abl
eshowst
henumberofpassenger
sthatt
rav
eledi
n

FSpr
omot
ional
far
eschemeoutoft
het
otal
numberof

passenger
sint
hey
ear2003-
2004(
Apr
il2003–Mar
ch2004)i
n

f
ewsect
ors:

53
 QUESTI
ONAI
RE

Quest
ionNo. Responses

1.
BrandAwareness–Topoft
heMi
nd
Recal
l
I
ndianai
rl
ines 57%

JetAi
rway
s24%

Sahar
aAi
rl
ine 19%
2.
Ai
rl
ineUsage

I
ndi
anAi
rl
ines 62%

JetAi
rway
s20%
Sahar
aAir
li
ne 18%
3.
Awar
enessaboutAdv
ert
isement

I
ndi
anAi
rl
ines 51%

JetAi
rway
s27%

Sahar
aAi
rl
ine 22%
4.
Most l i
ked Feat
ure of t
he
Adv
ert
isement

I
ndi
anAirl
ines
Pr
esentati
on 56%
Message 15%
Media 19%
Ot
hers 10%

JetAir
ways
Message 61%
Present
ati
on 20%

54
 Medi
a 19%

SaharaAi
rl
ine
Media 50%
Present
ati
on 30%
Message 20%

55
 SUGGESTI
ONBYTHEPASSENGERS

 Far
echar
gesshoul
dbesamef
orf
orei
gner
sasf
orI
ndi
ans.

 Debi
t/
Credi
tcar
dsshoul
dbeaccept
edf
orr
eser
vat
ion.

 Ther
eshoul
dbemor
etr
anspar
ency(
clar
it
y)i
ntheannouncement

oft
hef
li
ght
s.

 Toopensepar
atecount
ersf
orsi
ngl
ebaggageandl
astmi
nut
e

depar
tur
e.

 Check-
int
imeshoul
dber
educed.

 Secur
it
ychecksneedi
mpr
ovement
.Per
sonnel
needt
obemor
e

humane.

 Easyi
nfor
mat
ionshoul
dbeav
ail
abl
etopassenger
sregar
ding

t
ransi
tbaggage.

 Mor
edecent
,pol
i
teandcheer
ful
staf
f.

 Thebaggaget
agsshoul
dhav
easol
i
dgl
uesy
stem.Thepr
esent

pl
ast
ict
agsar
ever
yeasyt
otamperwi
th.

56
 RECOMMENDATI
ON/
SUGGESTI
ON

Ther
esear
chst
udyandt
heanal
ysi
sofv
ari
ousaspect
stappedl
eadt
o

t
hef
oll
owi
ngr
ecommendat
ion:

 141 shoul
d be out
sour
ced t
o a cal
lcent
ert
o dealwi
tht
he

enqui
ri
es.Non-
avai
l
abi
l
ity ofhel
pli
nes has been t
he most

commoncompl
aintofagent
sandpassenger
s.I
VRSshoul
dbe

pr
ovi
dedf
ort
heagent
s/passenger
swai
ti
ngf
ort
hei
rcal
ltobe

at
tendedbyt
heoper
ator
.Someoft
hegov
ernmentor
gani
zat
ions

hav
esuccessf
ull
ydoneout
sour
cinghel
pli
nes.

 Wi
tht
heoncomi
ng oft
hePr
ivat
eAi
rl
inesont
hecount
ryt
he

cust
omerawar
enessandaspi
rat
ionofqual
i
tyofser
vicehasbeen

enhancedconsi
der
abl
y. SoI
ndi
anAi
rl
inesshoul
demphasi
son

pr
ovi
dingmor
eef
fi
ci
entser
vicesbot
hont
hegr
oundandi
ntheai
r

asdonebyJetAi
rway
stoal
argeext
ent
.

 Dedi
cat
ed count
ers shoul
d be made t
o handl
elastmi
nut
e

r
eser
vat
ion,pr
efer
abl
yforr
eser
vat
ionsbei
ngdoneont
hedayof

t
hef
li
ght
.

 Ti
cketcount
erscanbepl
acedatmaj
orcor
por
atehouseswhi
ch

hav
e a subst
ant
ialamountoft
rav
elbudget
:wher
ein al
lthe

i
nfor
mat
ionaboutt
heschemesi
sav
ail
abl
e.Theset
icketcount
ers

57
 ar
etobemai
ntai
nedatt
heexpenseofI
ndi
anAi
rl
ines.

 Ther
eshoul
dbei
nter
nalandext
ernalaudi
tst
olooki
ntot
he

wor
kingofv
ari
ousdepar
tment
s.

 Ani
ncent
iveschemeshoul
dbel
aunchedf
ort
hepeopl
eatt
he

f
rontdesk oft
he agencysuch as t
he t
icket
ing agent
s.The

t
icket
ingagent
sshoul
dbepr
ovi
dedwi
thauni
quei
dent
it
ynumber

t
hatt
heywoul
dhav
etoquot
eont
het
icket
s.Thepoi
ntswoul
d

aut
omat
ical
l
ycr
edi
tedt
othei
raccount
.Ont
heaccumul
ati
onof

cer
tai
nnumberofpoi
ntst
heywi
l
lbegi
venFOC’
s.Thi
swi
l
lal
so

hel
pinchecki
ngf
alset
icket
ing.

 Apex-
7 and Apex-
21 f
are(
scheme)shoul
d be cont
inued on

accountofi
tspopul
ari
ty.

 Scheme l
i
ke Smar
t Apex f
are scheme f
or busi
ness cl
ass

passenger
scanbei
ntr
oduced.

 Fl
exi
bil
i
tyi
nSmar
tApexf
areschemeshoul
dbei
ncr
eased.

 Al
lthepr
omot
ionalschemesandser
vicesshoul
dbeext
ensi
vel
y

adv
ert
isedt
obr
ingawar
enesst
omakei
tsel
fbet
terknownt
othe

pot
ent
ialcust
omer
s.Theyshoul
dbeadv
ert
isedt
hroughe-
mai
l
s,

cor
por
atepr
esent
ati
onsandt
hroughr
oadshows.Execut
ivecl
ass

bonanzaschemeshoul
dbest
art
edagai
n.

58
 Hol
i
daypackagesshoul
d besol
d onl
ythr
ough I
ndi
an Ai
rl
ines

booki
ngof
fi
cesandnott
hroughagent
s,ast
her
eisev
erychance

oft
heagent
sof
fer
ingpar
all
eldeal
stot
hecust
omer
s.

I
ndi
anAi
rl
inesshoul
dschedul
emor
enumberoff
li
ght
stoand

f
rom st
ati
onsl
i
keMumbai
,Del
hi,Chennai
,andKol
kat
aast
hese

sect
orsaccountf
orhi
ghPaxl
oad.

I
ndi
anAi
rl
inescani
ntr
oducel
atebi
rd/
nightbi
rdf
li
ght
sbet
ween

met
ros.

 Thecheck-
int
imeshoul
dbemi
nimal
.Wher
evert
her
eisl
i
kel
yto

bel
ongcuesmor
ecount
ersshoul
dbeopened.

I
ndi
anAi
rl
inesasi
ntr
oducedbySahar
aAi
rl
inesshoul
dadoptt
he

f
aci
l
ityofv
aletser
vicesandi
tshoul
dbeext
endedt
oal
lcl
asses.

 Tel
ereser
vat
ionandcomput
eri
zedcheck-
inpr
ocedur
eshoul
dbe

mademandat
ory
.

 Thepr
ocessoft
icket
ingandcancel
l
ati
onshoul
dbemademor
e

easy
,smoot
h and as f
lawl
ess as possi
ble as mostoft
he

r
espondentar
enothappywi
tht
hepr
esentt
icket
ingpr
ocedur
e.

59
 Del
ayedf
li
ght
,whi
chi
sav
erypai
nfulexper
iencef
ort
het
rav
eler
s,

shoul
dbeat
tendedt
oast
oppr
ior
it
ybecauset
hemai
ncl
i
ent
age

i
sbusi
nessmenandt
heyar
eti
mebound.

I
ndi
anAi
rl
inesshoul
dacqui
re(
induct
)new ai
rcr
aftt
oupgr
ade

pr
oduct qual
i
tyi
n or
der t
o bui
l
d br
and i
mage and r
etai
n

passenger
s.

 AASLshoul
dbegi
venmor
eaut
onomysot
hati
tcoul
dconduct

someoft
heact
ivi
ti
esr
elat
edt
omar
ket
ingati
tsownt
oaddup

i
nnov
ati
veschemesandgener
atei
nrev
enues.

 Al
l
ianceAi
raut
hor
it
iesshoul
dbemadei
neasyappr
oacht
othe

passenger
sfort
hegr
iev
ancehandl
i
ngandcompl
aint
s.

 Thef
li
ghtofAl
l
ianceAi
rshoul
dbemademor
eat
tract
ivet
hatcan

bei
nthef
orm ofabookl
etasi
tisoft
heJetAi
rway
s.

I
tisnecessar
yforAl
l
ianceAi
rthati
tshoul
dreconci
l
ethesect
ors

andt
hef
requencyatwhi
chi
tisoper
ati
ngsot
hati
tcoul
dreduce

cost
sandear
nmor
epr
ofi
t.

 Al
l
ianceAi
risr
equi
redt
oaddupmor
eandmor
epl
aces,whi
ch

hav
ethest
atusoft
our
istpl
aces.

60
 Ser
vice i
nnov
ati
ons l
i
ke aut
omat
ed f
li
ghtschedul
es,ov
ert
he

phones,pr
ovi
si
on f
orcust
omi
zi
ng meal
s,i
n-f
ightmai
lor
der

shoppi
nget
c.shoul
dbei
ntr
oducedt
olur
ethepassenger
s.

I
ndi
anAi
rl
inesneedst
ounder
takeaggr
essi
vemar
ket
ing.

 Al
l
iance Ai
rshoul
d consol
i
dat
eit
s mar
ketshar
e by f
urt
her

i
mpr
ovi
ngi
tsser
vicest
andar
dsandaddi
ngmor
erout
est
oit
s

net
wor
k

I
ndi
anAi
rl
inesshoul
dunder
takecust
omersat
isf
act
ionsur
vey
s.

I
Ashoul
dmakepr
ovi
si
onst
oaddupmor
efi
nanci
albenef
it
sfor

i
tspassenger
s.

I
nter
nat
ionaldesk ofI
ndi
an Ai
rl
ines shoul
d be made mor
e

accessi
ble.

 Fl
i
ghtst
atusshoul
dbemadeav
ail
abl
ethr
oughSMS.

61
 CONCLUSI
ON

Theheal
thi
l
ycompet
it
ionofdomest
icai
rl
ineshassetnewt
rendsi
nthe

qual
i
tyofser
vice.Pr
evi
ousl
yint
hemonopol
i
sti
cenv
ironmentofI
ndi
an

Ai
rl
inest
hequal
i
tyandt
hedesi
ret
owi
nov
ert
heconst
rai
ntswast
otal
l
y

di
smal
.Wi
tht
heoncomi
ngofJetAi
rway
sandSahar
aAi
rl
inest
her
eis

seachangei
nthequal
i
tyofser
viceandt
hepr
ideoft
hej
ob.

Hencet
odayi
tisamat
terofgr
eatsi
gni
fi
cancet
hatt
heI
ndi
anAi
rl
ines

st
affnowcar
esaboutt
hepassengercomf
ortandt
akepai
nst
oseet
hat

t
hef
li
ghti
sont
ime.I
ndi
anAi
rl
inessoshoul
dtr
ythehi
ghper
cent
age

98%ofont
imeser
viceofSahar
aAi
rl
inesi
sthehal
l
mar
koft
hei
rqual
i
ty

ofser
vice.

Adv
ert
isementhasbr
oughtawar
enessamong t
he peopl
eregar
ding

I
ndi
anAi
rl
ines(
ascompar
edt
oSahar
aandJetandact
ual
l
ytr
avelbyi
t

al
so)
.Themostpr
efer
redf
eat
ureoft
headv
ert
isementhappenst
obe

pr
esent
ati
on f
orI
ndi
an Ai
rl
ines.Asr
egar
dsJetAi
rway
speopl
ear
e

moder
atel
yawar
eofi
tandal
sot
rav
elbyi
t.Mostl
i
kedf
eat
ureoft
he

adv
ert
isementi
sthemessage.Si
mil
arl
yinSahar
aAi
rl
inest
hef
eat
ure

mostpr
efer
redi
sthemedi
a.

62
Thi
sshowst
hatpeopl
ewhoar
eawar
eoft
heai
rl
inear
enotj
ustv
erbal
l
y

awar
ebutal
sopr
efert
otr
avelbyt
hatai
rl
ine. Thi
sdepi
ctst
hatt
he

ef
fectofadv
ert
isementofi
sdi
rect
lypr
opor
ti
onalt
otheusest
othe

ai
rl
ines.

Besi
dest
hehi
ghper
cent
ageofI
ndi
anAi
rl
inest
rav
eler
scanbeat
tri
but
ed

t
othef
actt
hatf
ort
hegov
ernmentof
fi
ci
alsi
tismandat
oryt
otr
avelby

I
A.

Cust
omergr
iev
anceandpr
omptr
edr
essalshoul
dal
sober
atedast
op

pr
ior
it
y as t
his wi
l
lnotonl
y pr
ovi
de t
he necessar
yinputand t
he

f
eedbackbutal
sowoul
dgoal
ongwayi
nimpr
ovi
ngt
hei
mageofI
ndi
an

Ai
rl
ines.

63
 LI
MITATI
ONSOFTHESTUDY

 Duet
o const
rai
ntoft
ime,al
argersampl
esi
zecoul
d notbe

chosen.

 Ther
espondent
smaynothav
edi
vul
gedt
hei
rtr
uef
eel
i
ngs.

 Mar
ket
ingst
rat
egyofacompanyi
sindeedacl
osel
yguar
ded

secr
etespeci
all
yint
hef
aceofst
if
fcompet
it
ionasi
nthecaseof

t
heai
rl
inessect
ori
nIndi
a.Ther
efor
e,t
oex
tracti
nfor
mat
ionon

t
hemar
ket
ingst
rat
egywasadi
ff
icul
ttask.

 Mi
norer
ror
smayhav
ebeeni
ntr
oducedduet
ofat
igue,
etc.

64
 BI
BLI
OGRAPHY/
REFERENCES

 www.
indi
anai
rl
ines.
com

 www.
indi
anai
rl
ines.
net

 www.
indi
an-
air
li
nes.
com

 www.
indi
an-
air
li
nes.
nic.
in

 www.
indi
anai
rl
ines.
indi
ati
mes.
com

 www.
jet
air
way
s.com

 www.
air
sahar
a.com

 www.
air
li
ner
s.com

 www.
air
sahar
a.net

65