low cost airline

38
SUBMITTED BY: UNDER THE GUIDELINES OF: Vishwanath v Ashalatha k Praveen kumar Assistant professor Ravindranath Nayak JKSHIM Richard barbooza Nitte Niveditha patrika Vindhya shetty Justice K. S. Hegde Institute of Management NMAMIT, Project on Low Cost Airlines

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Page 1: Low Cost Airline

●●●●●●●●●●●●●●●●●

SUBMITTED BY: UNDER THE GUIDELINES OF:

Vishwanath v Ashalatha k

Praveen kumar Assistant professor

Ravindranath Nayak JKSHIM

Richard barbooza Nitte

Niveditha patrika

Vindhya shetty

Justice K. S. Hegde Institute of Management

NMAMIT, Nitte – 574110

Project on

Low Cost Airlines

Page 2: Low Cost Airline

Contents

1. INTRODUCTION........................................................................................................4

2. AVIATION INDUSTRY IN INDIA............................................................................6

3. Brief Profile of Captain G R Gopinath.........................................................................9

4. Overview of Air Deccan (Kingfisher Red).................................................................10

5. Decision Tree Analysis for Low Cost Airlines based on a Survey conducted...........12

6. DATA ANALYSIS.....................................................................................................13

7. FINDINGS AND SUGGESTIONS............................................................................23

Page No.

Page 3: Low Cost Airline

EXECUTIVE SUMMARY

It’s a known fact that the aviation industry is a booming sector of the world economy. As we

have noticed that in United States aviation industry during the time of recession even the

company like south west airlines have managed to show profits in their balance sheet where

other airlines companies failed to do so. This proves that the proper strategies used in a proper

time and place leads to success of the business. Hence this study is about the implementation of

low cost airline introduced by Capt. G R Gopinath and its success projection.

In the initial part of the study the brief introduction is explained along with the scope, objectives,

methodology and limitations. After discussing the Indian aviation industry, its history, present

and future prospects are displayed which also includes the list of airlines companies existing in

India.

Before analyzing the survey, a thorough introduction of Capt. G R Gopinath is given with the

Overview of Air Deccan which is named as Kingfisher Red presently. This was very important

as it explains the company profile, its establishments and achievements as well.

The next part is the systematic analyses of the data which is been collected by the primary source

with the help of questionnaire. This includes the age group which we selected for the survey,

occupation pattern, income generated, purpose and number of times they travel as well. Through

this we have generated the information like the safety level considered by the respondents, their

preference and reason for choosing particular airline in tabular form.

Final part of the report includes the decision tree analyses which displays the pattern of decision

could be taken by the decision taker, the finding of the study with the conclusion and valuable

suggestion which is generated after the analyses of the completed report.

Therefore this study will be helpful in decision making process of the reader which answers the

question like the level of competition, market to be targeted, level of success can be achieved.

On the other hand by investing in this project, it can capture the untapped market and carve the

niche for itself by beating the competition. This will cater the lower segment of the market and

increase the sales as well as profits.

Page 4: Low Cost Airline

1. INTRODUCTION

Research design is a preliminary design of research work to be carried out and is an agreement to

be conditioned for the collection and analysis of data in a manner that aims to combine

prevalence of research and helps to achieve the objective of the study. It specifies the various

tools to be used for collecting data, techniques used to interpret and analysis of data and finally

concluding the certain points with the findings and recommendations. A research design

provides the glue that holds the research project together. A design is used to structure the

research, to show how all of the major parts of the research project – the samples, groups,

measures, treatments or programs and methods of an assignment which work together to address

the central research questions.

The study is concentrated on identifying the customer perception towards the Low cost airlines

in India. This particular study is conducted in the form of a survey through structured

questionnaires and interviews in the Mangalore Airport.

Objectives of the study

To understand the customer perception towards the low cost airlines.

To analyze the future scenario of Low cost airline providers.

To Analyze, if so Captain G R Gopinath introduces the low cost airlines once again,

customers are ready to go for it or not.

Scope of the Study:

The study is restricted itself only to Air Deccan and the analysis of low cost airlines in the Indian

Aviation industry. This particular study helps us to know the costumers perception towards the

cost airlines and its future scenario. And this study restricts only to the Mangalore Airport for

conducting the detailed survey in the month of March 2011. Any further improvements or

modifications concerned to the data recorded in this study after the earlier specified period is not

included. The data has been collected with the help of structured questionnaires and interviews.

Page 5: Low Cost Airline

Data Collection:

The data collection is carried out in the form of structured questionnaires which was further used

to analyze the customer perception towards the low cost airlines.

Sampling Method:

The sampling method chosen is based on convenience sampling having a sample size of

about 50 customers picked up at random from Mangalore Airport.

Limitations of the Study:

Despite all the possible efforts to make analysis pure and comprehensive, a study of the present

kind is bound to have certain limitations. The following are the limitations of this study.

The primary data is based on the views collected using a self-administered questionnaire

in the form of a personal interaction. It is assumed that the respondent is true and

unbiased.

The sample size selected is restricted to only 50 respondents and therefore it is very

difficult to give an accurate judgment on the basis of this limited sample.

Some of the respondents jumped to hasty conclusions due to their busy work schedule.

The scope of the study is restricted only to Mangalore Airport.

The time available for conducting the research survey was limited to carry out an

exhaustive study.

Page 6: Low Cost Airline

2. AVIATION INDUSTRY IN INDIA

Introduction

Aviation Industry in India is one of the fastest growing industries in the world. With the

liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid

transformation. From being primarily a government-owned industry, the Indian aviation industry

is now dominated by privately owned full service airlines and low cost carriers. Private airlines

account for around 75% share of the domestic aviation market. Earlier air travel was a privilege

only a few could afford, but today air travel has become much cheaper and can be afforded by a

large number of people.

The origin of Indian civil aviation industry can be traced back to 1912, when the first air flight

between Karachi and Delhi was started by the Indian State Air Services in collaboration with the

UK based Imperial Airways. It was an extension of London-Karachi flight of the Imperial

Airways. In 1932, JRD Tata founded Tata Airline, the first Indian airline. At the time of

independence, nine air transport companies were carrying both air cargo and passengers. These

were Tata Airlines, Indian National Airways, Air service of India, Deccan Airways, Ambica

Airways, Bharat Airways, Orient Airways and Mistry Airways. After partition Orient Airways

shifted to Pakistan.

In early 1948, Government of India established a joint sector company, Air India International

Ltd in collaboration with Air India (earlier Tata Airline) with a capital of Rs 2 crore and a fleet

of three Lockheed constellation aircraft. The inaugural flight of Air India International Ltd took

off on June 8, 1948 on the Mumbai-London air route. The Government nationalized nine airline

companies vide the Air Corporations Act, 1953. Accordingly it established the Indian Airlines

Corporation (IAC) to cater to domestic air travel passengers and Air India International (AI) for

international air travel passengers. The assets of the existing airline companies were transferred

to these two corporations. This Act ensured that IAC and AI had a monopoly over the Indian

skies. A third government-owned airline, Vayudoot, which provided feeder services between

smaller cities, was merged with IAC in 1994. These government-owned airlines dominated

Indian aviation industry till the mid-1990s.

Page 7: Low Cost Airline

In April 1990, the Government adopted open-sky policy and allowed air taxi- operators to

operate flights from any airport, both on a charter and a non charter basis and to decide their own

flight schedules, cargo and passenger fares. In 1994, the Indian Government, as part of its open

sky policy, ended the monopoly of IA and AI in the air transport services by repealing the Air

Corporations Act of 1953 and replacing it with the Air Corporations (Transfer of Undertaking

and Repeal) Act, 1994. Private operators were allowed to provide air transport services. Foreign

direct investment (FDI) of up to 49 percent equity stake and NRI (Non Resident Indian)

investment of up to 100 percent equity stake were permitted through the automatic FDI route in

the domestic air transport services sector. However, no foreign airline could directly or indirectly

hold equity in a domestic airline company.

By 1995, several private airlines had ventured into the aviation business and accounted for more

than 10 percent of the domestic air traffic. These included Jet Airways Sahara, NEPC Airlines,

East West Airlines, ModiLuft Airlines, Jagsons Airlines, Continental Aviation, and Damania

Airways. But only Jet Airways and Sahara managed to survive the competition. Meanwhile,

Indian Airlines, which had dominated the Indian air travel industry, began to lose market share to

Jet Airways and Sahara. Today, Indian aviation industry is dominated by private airlines and

these include low cost carriers such as Deccan Airlines, GoAir, SpiceJet etc, who have made air

travel affordable.

Airline industry in India is plagued with several problems. These include high aviation turbine

fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid fleet expansion, and

intense price competition among the players. But one of the major challenges facing Indian

aviation industry is infrastructure constraint. Airport infrastructure needs to be upgraded rapidly

if Indian aviation industry has to continue its success story. Some steps have been taken in this

direction. Two of India's largest airports-Mumbai and New Delhi-were privatized recently. Two

Greenfield airports are coming up at Bangalore and Hyderabad in southern India. Investments

are pouring into almost all aspects of the industry, including aircraft maintenance, pilot training

and air cargo services. The future prospects of Indian aviation sector look bright.

Page 8: Low Cost Airline

List of Airlines in India

Air India

Air India Express

Air India Regional

GoAir

Indian

Indigo

Jagson Airlines

Jet Airways

JetLite

Kingfisher Airlines

Spice Jet

Page 9: Low Cost Airline

3. Brief Profile of Captain G R Gopinath

Captain G R Gopinath was the Managing Director of Air Deccan is a graduate of the National

Defence Academy and has served the Indian Army. He is considered the father of low cost air

travel in India. He created a whole new market when he launched India's first low cost airline,

Air Deccan.

Captain G R Gopinath or Gorur Ramaswamy Iyengar Gopinath or 'Gopi' as he is affectionately

called was born in a Hassan Iyengar family of the remote village of Gorur, Karnataka. Starting

his studies in a village school, he completed his further schooling at Sainik School, Bijapur.

Thereafter he joined the distinguished National Defence Academy and later graduated from the

Indian Military Academy as a commissioned officer in the Indian Army. He then went on to

serve the Army for eight years.

Sometime in 1995, the Govt. of India started the reforms process by encouraging

entrepreneurship. This inspired the entrepreneur in him to identify the tremendous potential

Helicopter Charter had in India. Along with an old Army friend he decided to start a private

sector commercial helicopter service in 1996. Starting with just one helicopter, today Deccan

Aviation boasts of 10 (Ten) Helicopters and two charter jets operating from eight major locations

criss-crossing the entire length of the country. This company is India’s most reputed private Air

Charter Company with a presence now in Sri Lanka also.

After understanding the needs of this segment, Capt Gopinath decided to start the first Low Cost,

No Frills Airline of India. Launched on 25 August 2003, Air Deccan revolutionized air travel in

India. With a vision to connect to the unconnected parts of India, Air Deccan today connects

many remote parts of the country where no other airline had operated. The airline is operating

close to 236 flights a day connecting 55 destinations. As part of its expansion plans, the airline

has signed for 60 brand new Airbus and 32 ATRs. As a result a total of 80 aircraft will be

acquired with one aircraft being inducted every month for the next 80 months. Not one to be

effected by the instant success and recognition Captain Gopinath still remains the affable and

easily approachable person that he always was, relentlessly pursuing his dream of enabling every

Indian to Fly. He currently lives in Bangalore with his wife and 2 daughters, Pallavi and

Krithika.

Page 10: Low Cost Airline

4. Overview of Air Deccan (Kingfisher Red)

Founded as Air Deccan on 25 August 2003, Kingfisher Red holds the distinction of being India's

first low-cost airline. Its founder is Captain G R Gopinath. Soon after its conception, the airline

started its regular air operations, with its flights scheduled to fly from Bangalore to Mangalore

and Hubli. The airline has grown rapidly since its inception. It has revolutionized air travel in

India and has brought air travel within the reach of common man. It was the first airline in India

to link second rung cities like Hubli, Madurai and Visakhapatnam, to metros like Bangalore and

Chennai.

The evolution of Air Deccan to Kingfisher Red is quite an interesting story. In October 2007, UB

Group the parent of Kingfisher Airlines took over Air Deccan by acquiring 26% stake for

approximately 130 million USD in Air Deccan, and had made an open offer for further 20% and

latter it was renamed as Simplifly Deccan, with the old logo replaced by the Kingfisher Logo and

the same font of Kingfisher Airlines. The bright combination of red and white substituted the old

yellow and blue color scheme, used in Air Deccan. With the same premium look and feel,

Simplifly Deccan promised to provide excellent on-time performance. The name was

subsequently changed to Kingfisher Red in August 2008. The re-branding cost a whopping Rs 15

crore.

Previously operated by Deccan Aviation, Kingfisher Red is headquartered in Bangalore, India,

and currently run by Kingfisher Airlines. Presently, Kingfisher Red is the only low-cost Indian

airline to provide complimentary in-flight meals and bottled water to its passengers. Over the

years, it has proved as a passenger-friendly airline, with a number of benefits to its passengers.

For instance, the passengers wishing to fly by Kingfisher Red can earn frequent flyer miles,

provided the tickers are booked through the King Club loyalty program, run by the airline's

parent - Kingfisher Airlines.

Kingfisher Red covers as many as 65 destinations within India, including Srinagar, Leh, Jammu,

Pathankot, Dharamshala, Kullu, Shimla, Amritsar, Chandigarh, Dehradun, Delhi, Jaipur,

Jodhpur, Udaipur, Ahmedabad, Kandla, Jamnagar, Rajkot, Bhavnagar, Indore, Vadodara,

Bholap, Gwalior, Jabalpur, Lucknow, Patna, Ranchi, Jamshedpur, Raipur, Nagpur, Aurangabad,

Bhubaneshwar, Kolkata, Bagdogra, Agartala, Aizwal, Silchar, Imphal, Dimapur, Guwahati.

Page 11: Low Cost Airline

5. Decision Tree Analysis for Low Cost Airlines based on a Survey conducted

Airlines

Start Business

Do nothing

C1

Success

Failure D1

D2

Low Cost

High Cost

C2

92% Prefer Low Cost

8% not prefer Low Cost

Page 12: Low Cost Airline

6. DATA ANALYSIS

Age Group

Table showing Age Group

Chart showing Age Group

above 18 and below 30 above 30 & below 50 above 500

5

10

15

20

25

30

24

21

6

Analysis

Above graph shows that the majority of the respondents were of the age group 18 to 30 which

accounts 48% of the total respodents, 42% were of the age 30 to 50 and remaining 12% were of

the age above 50. This implicates that we had a majority of youths who have responded to us.

Age Respondents Percent

above 18 and below 30 24 48

above 30 & below 50 21 42

above 50 6 12

Total 50 100.0

Page 13: Low Cost Airline

Occupation

This question is framed to know the present employment of the respondents. The usage of

airlines will differ according to occupation.

Table showing occupation

Occupation Respondents Percent

Business Man 30 60

Professional 13 26

Other 7 14

Total 50 100.0

Chart showing occupation

Business Man Professional Other0

5

10

15

20

25

30

3530

13

7

Analysis

From the above graph it’s clear that 60% of the respondents were businessman, 26% were

professionals and remaining 14% includes others. This shows that out of the respodends we had,

majority were businessman’s who use airline service.

Annual income

Page 14: Low Cost Airline

The survey will be incomplete without knowing the income of the people. It believes that more

income people will do more travels in airlines.

Table showing Annual income

Amount in Rs Respondents Percent

Less than 200000 5 10

200000-400000 8 16

Above 400000 37 74

Total 50 100.0

Chart showing Annual income

Less than 200000 200000-400000 Above 4000000

5

10

15

20

25

30

35

40

58

37

Analysis

Above chart displays the income pattern of the people. Hence it shows that major part of the

respondents, that is 74% were the once who had their annual income above Rs400000, 16% of

the respondents were the once with the annual income ranging between Rs200000 to Rs400000

and 10% of the respondents were of income below Rs200000. This implicates that people with

more income often travel more by air.

The purpose for travelling

Page 15: Low Cost Airline

Table showing the purpose for travelling

Chart showing purpose for travelling

Business Holiday Tour visit a relative Other0

5

10

15

20

25

30

3532

63

9

Analysis

Above chart signifies the purpose of travel by the respondents. In other words 64% of the

respondents travelled for business purpose, 12% for holiday tour, 6% to visit a relative and

remaining 18% for other purpose. Hence with this it is clear that major chunk of the crowd travel

for business purpose by air.

How many times they use in year

Purpose Respondents %

Business 32 64

Holiday Tour 6 12

visit a relative 3 6

Other 9 18

Total 100 100

Page 16: Low Cost Airline

Table showing how many times they use year

Times Respondents %

1-5 times 28 56

5 - 10 times 13 26

more than 10 times 9 18

Total 50 100

Chart showing how many times they use year

1-5 times 5 - 10 times more than 10 times0

5

10

15

20

25

30 28

13

9

Analysis

Above data signifies that number of times a respondent has travelled by air in a year. It is derived

that 56% of the total respondents travelled 1-5 times a year, 26% of them 5-10 times and

remaining 18% is been travelling more than 10 times a year.

Safe or not

Page 17: Low Cost Airline

We know that many incidents have occurred which makes a person feel that travelling through

air is not safe. Hence we considered this question to ensure the safety level of air presumed by

the respondents.

Table showing safe or not

Safe Respondents %

Yes 9 18

No 11 22

don’t know 30 30

Total 50 100

Chart showing safe or not

Yes No don’t know0

5

10

15

20

25

30

35

911

30

Analysis

Chart above tells us that 18% of them have agreed that travelling through air is safe, 22% of

them tell it’s not safe and on the other hand 30% of them believe that it cannot be predicted and

answered they don’t know which neither says YES or NO.

Care about travelling

Page 18: Low Cost Airline

Table showing care about travelling

Care Respondents %

Yes 37 74

No 13 26

Total 50 100

Chart showing care about travelling

Yes No0

5

10

15

20

25

30

35

4037

13

Analysis

Majority of the respondents, that is, 74% of them do care by which airline they travel because of

the safety, cost, service provided, convenience, etc and on the other hand 26% of the respondents

do not care by which airline they travel. This part of the respondents just makes a meaning with

the safe departure of the journey irrespective of airline by which they travel with.

Customer’s Preference

Page 19: Low Cost Airline

Table showing customer’s preference

Preference Respondents %

Jet Airways 13 26

Kingfisher Airlines 25 50

Indian Airlines 7 14

other 5 10

Total 50 100

Chart showing customer’s preference

Jet Airways Kingfisher Airlines Airlines other0

5

10

15

20

25

30

13

25

75

Analysis

This chart displays the airline mostly preferred by the respondents very often. 50% of the

respondents are comfortable with kingfisher airline, 26% prefer jet airways, 14% go for Indian

Airlines and remaining 10% of the respondents prefer any airline irrespective of brand loyalty.

This chart tells us that major chunk go with kingfisher airline for the service, safety level they

deliver which is the major requirement by any respondents.

Reason for choosing particular airline in tabular form

Page 20: Low Cost Airline

Table showing Reason for choosing particular airline in tabular form

Reason Respondents %

Luxury 6 12

Safety 23 46

Brand 5 10

low Cost 14 28

other 2 4

Total 50 100

Chart showing customer’s reason for choosing particular airline

Luxury Safety Brand low Cost other0

5

10

15

20

25

6

23

5

14

2

Analysis

This chart tells us the reason for which the respondents choose particular airline to travela nd its

derived that 46% of the respondents choose particular airline for the reason of safety, 28% for

the low cost, 12% for luxury, 10% for brand and 4% select particular airline for other purposes.

Preference for low cost

Page 21: Low Cost Airline

Table showing preference for low cost

Low cost Respondents %

Yes 46 92

No 4 8

Total 50 100

Chart showing preference for low cost

Yes No0

5

10

15

20

25

30

35

40

45

5046

4

Analysis

Above chart tell us the total number of respondent’s preference for low cost airline if it comes

into existence. 92% of the respondents will go with the low cost airline and remaining 8% will

not. The reason for disagreeness is that if they go with low cost they will lack by the safety level

and respondents who agree is for the reason they believe that travelling through air is safe as the

total number of incidents occurred is very less compared to other means of transportation.

Page 22: Low Cost Airline

7. FINDINGS AND SUGGESTIONS

Findings

People between 18 to 30 travel more, compare to people of age between 30 to 50 and

above 50.

Business men and professionals are the major customers of airline industry.So special

package are needed for this category.

Above four lakh income categories are the major of customers but above 2 lakh and less

than two lakh still have the considerable share in the customer category. If special offer

introduced by the company then the there may be increase in the customers who earn

income below 50 thousand

People frequently travel for business purpose, and for tours, and they do travel to visit

relatives house, and for other purposes.

Major chunk of customers do not know about the of travelling through airline whether

that is safe or not, so there is need for educating the customers regarding this so that those

people who are uncomfortable to travel through airline may get the confidence to travel

frequently.

Major chunk of travelers travel through kingfisher airline.

People prefer airline on the basis of safety and low-cost.

Major chunk of customers prefer low cost airline, than the costlier one. So there is need

of low cost airline for the people who travel frequently.

Once the low cost airline able to meet the breakeven point then the brand will be

preferred by each and every travelers, once the demand pickups then low cost airline can

provide same kind of customer service which is provided in high cost airline.

At present situation, first important aspect for airline industry the only major feature

which differentiates one airline service from other is safety and low cost, so it is aspects

which differentiate the brand.

Page 23: Low Cost Airline

Suggestions

Comfort (Hospitality and Boarding arrangement)

The first thing customer notice is the level of comfort provided by the carrier itself, as a low cost

operator, customer will not demand too much regarding the size of seat pitch but would

definitely enjoy the hospitality of friendly air crews and ground staff. Proper etiquette training

are required to improve the standard of customer reception in airport and on the plane. Many

customers might think that seats should be pre-allocated to maintain order, but i think this is

unnecessary as pre-allocated seats required more resources and could only solve a small

problem. The main problem of broading arrangement lies with passengers who carry a lot of

hand luagage and takes time to put them into the luggage compartment above them. This is

inevitable for most passengers. Hence the only rational way to increase boarding efficiency is by

allowing passenger without hand luggage to board the plane first. Then when they are seated

properly allow family travellers with elders and children to board orderly, finally the rest of the

passenger.

Timeliness (Building an honest image that eliminates misunderstanding and

miscommunication)

Many passengers have experience delays in their recent trips, some would blame the carrier for

its inefficiency, others simply rants. From my experience as a passenger, i found out that delays

are most frequently cause by two factors, bad weather and poor ground terminal coordination. As

nobody can control the weather, we should not blame the carrier for its delay. But many

passengers stranded at the airport are unaware of the situation, they are not informed duely and

this cause misunderstanding and displeasure. I am sure if your ground staff can informed

passengers regarding the real situation, it should be acceptable and protect the image of your

company. As for ground terminal coordination, I refer to unexpected queue of delays from

terminal operation sometimes cause by late check in or in other times cause by

miscommunication from ground staff. This is something that can be minimized through proper

planning, and I believe your company has done its best so far.

Page 24: Low Cost Airline

Convenience (To get to where you want to go the easiest way)

I realized that convenience means a lot of things to different people. Some prefer the

effectiveness of technology, such as internet booking, some like good amenities and facilities in

terminals. But above all, as a low cost carrier and not really a terminal operator, I believe the best

policy for convenience is how you can provided easy access to the planes that carry them to their

destination. By that I mean transportation from cities to airport. But if this type transportation

arrangement can be implement in economically and effective way to airports where Air deccan

have landing rights, I believe more will be eager to travel with Air Deccan.

Customer Loyalty (Flexible pricing for business and leisure travelers)

I know that most passengers travel air Deccana because its very cost effective. But as more and

more budget airline is competing in this region, customer will find choices harder to make.

Although air deccan enjoys an excellent brand name, it will face competitors that try to clone

their success. To consolidate on its success, airasia need to provide innovative packages to boost

customer loyalty. I give a few examples here.

(a) Create season pass for business travelers. As season pass means business travelers who fly

frequently maybe like once or twice a month every year can apply for season pass tickets that set

standard low price instead of fluctuating air fare that rewards earlier bookers. The reason for this

demand is simple, business travelers need flexibility in time management, so it would help them

get cheaper fare anytime to any place would be a big attraction to them. They might not need to

lowest fare but they need a good rate that makes them comfortable to travel with you as a loyal

customer.

(b) Group Booking for leisure travelers is a important element if your airline wish to attract

them. Many leisure travelers do not travel alone, sometimes they feel that if they do group

booking as they do in travel agents they save cost. Although group booking is available offline,

why not make it more convenient as an online services. Other marketing program such as hotel

booking can be treated together with group booking to attract leisure travellers. Customer loyalty

Page 25: Low Cost Airline

cannot be done overnight, but if you try to understand customer needs and serve them

appropriately, you will always be their first choice.

Since you have so many fans and loyal users, why not create a loyalty programme. Maybe you

can give points for flights that cost above a certain amount, not the really cheap/free ones. The

points could be redeemed for meal vouchers/flight discounts/hotel discounts/merchandise etc.

Also rewards customers who write in with good, constructive feedback/ideas based on their

experience with Air Asia.

Have tickets in shopping complexes /or anywhere suitable. It will give greater visibility and

enable people on the go to get their tickets easily. In addition this will attract a segement that is

not comfortable in ordering via the internet.

Possibility to include meals in the ticket booking.

Page 26: Low Cost Airline

Justice KS Hegde Institute of Management, Nitte.

A Study on Customer Perception on Low Cost Airlines

Questionnaire

Name: ______________________________

1. Age: i. above 18 & below 30 ii. Above 30 & below 50 iii. Above 50

2. Occupation: i. Business man ii. Professional iii. Other

3. Your income per year?

a) Below- 200000, b) 200000- 400000, c) Above 400000.

4. What is your purpose of travel?

a) Business, b) visit a relative c) Holiday Tour d) Other

5. How many times do you travel in airlines in a year?

a) 1-5 b) 5-10 c) more than 10

6. Do you think the airlines are safe?

a) Yes b) No

7. Do you care which airlines you travel with?

a) Yes b) No

8. Which of these airlines do you prefer most?

a) Jet Airways b) Kingfisher Airlines c) Indian Airlines d) other

9. Why do you travel with the above airlines?

a) Luxury, b) Safety, c) Brand d) low Cost e) Other reasons

Page 27: Low Cost Airline

10. Do you prefer Low cost Airlines?

a) Yes b) No

11. If so Captain GR Gopinath once again introduces a low cost airline, are you ready to

travel in that aircraft? ( State Yes or NO) If no State the reason why.

_______________________________________________________________

12. What are your expectations in Low cost Airlines?

________________________________________________________________________

________________________________________________________________________

___________________________________________

Thank You for Your Valuable Time and Patience, Have a Nice Day and

Happy Journey.