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ASSIGNMENTOF

Customer Relationship Management

Topic- Touch Points of Indian Airlines

SUBMITTED TO: SUBMITTED BY:

Lect. Rajan Girdhar Ashish Gumber

Roll No- R1814-A 07

Reg. No- 10803979

BBA-MBA

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INDIAN AIRLINES ( Introduction)

There are a lot of expectations riding on Indian, formerly known as Indian Airlines, which has

changed everything from its name to the logo -- and plans a lot more. (The company name,

however, remains unchanged: Indian Airlines Limited.) But more on that later.

Analysts agree on one point, however -- the timing of the strategy. "An Indian today is

considered as making a difference, and his say is of significant value. That positive image of an

Indian is being utilized well with the dropping of the suffix, Airlines," says Harish Bijoor, brand

consultant and CEO, Harish Bijoor Consults Inc.

A makeover was long overdue. The last change at Indian Airlines Limited (IAL) was way back

in 1967. That's when it changed its name from Indian Airlines Corporation to Indian Airlines and

the green, winged logo was replaced by a slanting IA painted in white on an orange background.

In the company spokesman's own words, every airline must revisit its brand every 10 to 15 years.

Besides, competition in the Indian airspace is increasing exponentially. Civil aviation ministry

estimates place the growth in domestic passenger movement at over 50 per cent in the past three

years: from 26.36 million in 2001-02, to 40.09 million in 2004-05. Granted, IAL is also reaping

the benefits of that increased traffic. Its balance sheet is also looking a lot better these day -- the

state-owned carrier posted a post-tax profit of Rs 65.61 crore (Rs 656.1 million) in fiscal 2005.

More important was the dropping of the suffix "Airlines" from the name. "It seems simple, but is

anything but that," says Bijoor, pointing out how the image and name change also involves a

change in mindset -- from a plodding public sector undertaking to an airline that is ready to take

on private airlines.

"But why change the name at all? "When we were named Indian Airlines, we were the only

Indian airline. Now you have so many 'Indian' airlines. It's only fair that we attempt to change

that," says the IAL spokesman.

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Indian Airlines (IA) – the name of India's national carrier conjured up an image of a monopoly

gone berserk with the absolute power it had over the market. Continual losses over the years,

frequent human resource problems and gross mismanagement were just some of the few

problems plagued the company. Widespread media coverage regarding the frequent strikes by IA

pilots not only reflected the adamant attitude of the pilots, but also resulted in increased public

resentment towards the airline.

IA's recurring human resource problems were attributed to its lack of proper manpower planning

and underutilization of existing manpower. The recruitment and creation of posts in IA was done

without proper scientific analysis of the manpower requirements of the organization. IA's

employee unions were rather infamous for resorting to industrial action on the slightest pretext

and their arm-twisting tactics to get their demands accepted by the management.

During the 1990s, the Government took various steps to turn around IA and initiated talks for its

disinvestment. Amidst strong opposition by the employees, the disinvestment plans dragged on

endlessly well into mid 2001. The IA story shows how poor management, especially in the

human resources area, could spell doom even for a Rs 40 bn monopoly.

BACKGROUND NOTE

IA was formed in May 1953 with the nationalization of the airlines industry through the Air Corporations Act. Indian Airlines Corporation and Air India International were established and

the assets of the then existing nine airline companies were transferred to these two entities. While

Air India provided international air services, IA and its subsidiary, Alliance Air, provided

domestic air services. In 1990, Vayudoot, a low-capacity and short-haul domestic airline with

huge long-term liabilities, was merged with IA. IA's network ranged from Kuwait in the west to

Singapore in the east, covering 75 destinations (59 within India, 16 abroad).

Its international network covered Kuwait, Oman, UAE, Qatar and Bahrain in West Asia;Thailand, Singapore and Malaysia in South East Asia; and Pakistan, Nepal, Bangladesh,

Myanmar, Sri Lanka and Maldives in the South Asian subcontinent. Between themselves, IA and

Alliance Air carried over 7.5 million passengers annually. In 1999, the company had a fleet

strength of 55 aircraft - 11 Airbus A300s, 30 Airbus A320s, 11 Boeing B737s and 3 Dorniers

D0228.

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In 1994, the Air Corporation Act was repealed and air transport was thrown open to private

players. Many big corporate houses entered the fray and IA saw a mass exodus of its pilots to

private airlines. To counter increasing competition IA launched a new image building

advertisement campaign. It also improved its services by strictly adhering to flight schedules and

providing better in-flight and ground services. It also launched several other new aircraft, with a

new, younger, and more dynamic in flight crew. These initiatives were soon rewarded in form of

17% increase in passenger revenues during the year 1994.

Company Profile

Founded- 1953Hubs

• Indira Gandhi Airport , Delhi (primary hub)• Chhatrapati Shivaji Airport , Mumbai• Meenambakkam Airport , Chennai• Subhash Chandra Bose Airport , Kolkata

Focus cities

• Bangalore• Bangkok • Hyderabad

Frequent flyer program Flying ReturnsAlliance noneSubsidiaries Air India Regional (formerly known as Alliance Air )

Fleet size 64 (+27 orders)

Destinations 80

Parent company NACIL

Company slogan New Horizons. Enduring Values.

Headquarters New Delhi , India

Touch Points Wheel of Indian Airlines

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Meal onDemand

Flat bed

seats

Post-Purcha

se Experie

nce

ApexFares

Well-Trained

SalesPerson Online

Purchase&

Cancellation of

tickets

Purchase

Experience

Advertisement onT.V &Print

Media

Firstclass,

Executiveclass,

Economyclass

Facility

Desh-Videsh,Bharat

DarshanCorporate

Schemes

AttractiveMaharaja

hPackages

ContactVia

Directweb-

site& tollfree no.

Pre-

Purchase

Experience

TouchPointWheel

of Indian

Airlines

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Pre-purchase touch points:-

Schemes Offered-

• Desh VideshIndian Airlines had launched a short term promotional scheme named “Desh Videsh”. There are

three Desh Videsh schemes: Desh Videsh I, Desh Videsh II and Desh Videsh III.

• Bharat Darshan

To promote domestic tourism & travel on the domestic network of Indian Airlines and Alliance

Air, Indian Airlines had decided to launch “Bharat Darshan”, a new short term promotional

scheme w.e.f 1 st July 2002.

• Sleepover packages

Indian Airlines had introduced Sleepover packages for providing value addition to passengers by

facilitating their stay at various cities. Thus, passengers avail the special discounted hotel rates at

the selected hotels at the time of check-in.

• Frequent Flyer Programme

The Frequent Flyer Programme offered by Indian Airlines is named as “ Flying Returns ”. Flying

Returns give several opportunities to members to earn free tickets, to over 200 destinations on

Indian Airlines extensive network. Plus it provides a host of exclusive privileges and unmatched benefits for members to enjoy.

• Corporate Scheme

Indian Airlines had relaunched the Corporate House Scheme in a modified form with a view to

expand their base of corporate houses and offer them incentive levels that are most competitive

in the market.

• Apex Fares

Special fares are offered in case the flier book the ticket at least 21 days prior to the travel date inany of the fifty sectors.

The research conducted was descriptive as well as exploratory in nature. Therefore, in order to

know the awareness about the various schemes of Indian Airlines, the schemes were studied and

then a survey of 100 passengers was conducted at the Arrival hall of the Domestic airport. With

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Meals: Indian Airlines offers Salt Free / Fat Free Meal,Sugar Free Diet Meal, Vegetarian Meal, Non - Vegetarian Meal, Continental Meal.

• Special attention is always given to younger patrons of Jet Airways.

• Handicapped and infirm passengers can also look forward for a comfortable, safe and

hassle free journey by wheel chair assistance.

• Expectant Mothers till 36 weeks of pregnancy can be permitted to fly on Jet Airways

flights

Recommendations:-

Indian airlines can attract more customers by good deals as the other airlines offers various

packages for corporate travelers or other frequent travelers at Low cost Indian Airline tickets can

be availed with their time to time offers.

Reference:-• www.indian-airlines.nic.in

• www.ezinearticles.com

• www.viewspaper.net .

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• http://www.indiamarks.com/guide/Indian-Airlines-/653/

• http://www.rediff.com/money/2006/jan/25bspec.htm

• http://www.hindustantimes.com/business-news/sectorsinfrastructure/indian-

airlines-economy-pack/Article1-651919.aspx

• http://www.tribuneindia.com/2010/20100812/biz.htm#5

• http://www.tribuneindia.com/2010/20100812/biz.htm#5