Asian-Anubhav Singh

Asian Journal of

Multidisciplinary Studies

ISSN: 2321-8819 (Online)

2348-7186 (Print)

Impact Factor: 1.498

Vol.4, Issue 6, May 2016

Available online at www.ajms.co.in 236

Future of Indian Air Travel Industry: Relation of Growth and Consumer Satisfaction

(A Study Limited with Lucknow, Uttar Pradesh, India)

Anubhav Singh

Junior Research Fellow, Faculty of Commerce,

Department of Applied Economics

University of Lucknow, Lucknow, Uttar Pradesh, India-226001

Assistant Professor, School of Business,

Lovely Professional University, Delhi-Jalandhar NH-1,

Phagwara, Punjab, India-144411

ABSTRACT: While Talking about Airlines Industry first thing comes in mind that delivering high quality

service to passengers is important so that airlines can survive and strengthen their competitiveness. Service

quality conditions influence an airline’s competitive advantage, and with it come market share, and

ultimately profitability (Mirash & Toment, 2007). Since, service quality is an important factor in customer

satisfaction; this study is basically conducted in Lucknow, India so that the level of satisfaction can be

described allowing an airline and airport management to fully recognize the deficiencies of their service

quality. The research method consisted of a survey regarding satisfaction with both airline and

airportservices. A structured questionnaire was developed using the questionnaire as benchmark.

The questionnaire was personally administered to the target population of domestic and International air

travellers From Lucknow. I have used stratified sampling procedure for this research. Each stratum

represents different levels of air service availability within the different group because of geographical

distance from the capital. A total of 100 questionnaire were distributed, 23 questionnaire per stratum, of

which were returned. Therefore, the final research sample consisted of 77 participants. After finding the

Results its show that, irrespective of Domestic Traveler , customer satisfaction is poor. This indicates that

International air service quality does not match the expectations of customers just because of less no of

International Airlines and Less no of connections of Domestic flight with International flight.

Keywords- Airlines, Airports, Customer Satisfaction, Customer Services, Future growth, Product Service

Quality etc.

INTRODUCTION

Air travel industry has been in the news frequently

for a number of reasons. There have been talks

about the feasibility of low-cost carriers with the

present marketing strategies that they employ. On

the other hand, the future of major airlines

worldwide is seen in danger by a number of

analysts, researchers, media personnel, and so on.

With all this, customer satisfaction and changing

attitude is yet another area that catches the common

eye for solid reasons.

Researchers and commentators of American

business area sometimes raged by the

dissatisfaction with which American business treats

the customers. In this regard, Maier states that

“Keeping the customer satisfied no longer is the

mantra of American businesses, as studies show a

steady decline in customer satisfaction that is

projected to continue” However, on the other hand,

low-cost carriers in India have mushroomed in both

the markets because of their effective marketing

strategies. However, it must be noted that major

airlines’ as well as low-cost carriers’ future is

unpredictable and many see both of them in danger

because of increasing oil prices ,government taxes

,increased in duties and all Overall, the growth

chances for low-cost carriers are much higher in

both India .i would more concentrate and will have

ask the question to the Air-India because it’s Local

Airlines of Government of India. It is the major

airlines from both the settings that are seen to be

facing critical challenges in the recent future. For

which supply and demand is one single area that

must be taken into serious consideration by these

airlines because it is this area that has been

historically overlooked by major airlines. Third

largest aviation market by 2020 By 2020,

passenger traffic at Indian airports is expected to

increase to 421 million from 106.45 million in

2016* The travel & tourism industry is forecast to

grow 12.79 per cent to USD475.43 billion in 2025

from USD142.65 billion in 2015 Spending on

business travel is estimated to increase to

USD36.53 billion in 2025 from USD19.34 billion

in 2015, while that on leisure travel is forecast to

rise to USD192.83 billion in 2025 from USD97.20

billion in 2015

About the Industry

Aviation plays an essential role in economic

progress of a nation as it is viewed as a necessary

link not only for international voyage and trade but

also for providing connectivity to different parts of

the country. It is a one of the vital part of the

infrastructure of the country and has outcome for

Future of Indian Air Travel Industry: Relation of Growth and Consumer Satisfaction (A Study Limited with Lucknow, Uttar Pradesh, India)

Asian Journal of Multidisciplinary Studies, 4(6) May, 2016 237

the development of tourism and trade, the opening

up of inaccessible areas of the country and for

providing stimulus to business activity and

economic growth.

History

The first commercial flight in India was made

on February 18, 1911, when a French pilot

Monseigneur Piguet flew airmails

from Allahabad to Naini, covering a distance of

about 10 km in as many minutes.

Tata Services became Tata Airlines and then Air-

India and spread its wings as Air-India

International. The domestic aviation scene,

however, was chaotic. When the American Tenth

Air Force in India disposed of its planes at

throwaway prices, 11 domestic airlines sprang up,

scrambling for traffic that could sustain only two or

three. In 1953, the government nationalized the

airlines, merged them, and created Indian Airlines.

For the next 25 years JRD Tata remained the

chairman of Air-India and a director on the board

of Indian Airlines. After JRD left, voracious unions

mushroomed, spawned on the pork barrel jobs

created by politicians. In 1999, A-I had 700

employees per plane; today it has 474 whereas

other airlines have 350.

For many years in India air travel was perceived to

be an elitist activity. This view arose from the

“Maharajah” syndrome where, due to the

prohibitive cost of air travel, the only people who

could afford it were the rich and powerful.

In recent years, however, this image

of Civil Aviation has undergone a change

and aviation is now viewed in a different light - as

an essential link not only for international travel

and trade but also for providing connectivity to

different parts of the country. Aviation is, by its

very nature, a critical part of the infrastructure of

the country and has important ramifications for the

development of tourism and trade, the opening up

of inaccessible areas of the country and for

providing stimulus to business activity and

economic growth.

Issues of the concern

With the rise in the number of airlines and

growing passenger there is a need for

Indian airports to have their infrastructure

in place, which unfortunately at present is

the weakest link in the chain.

Mounting losses of the airlines

The new Ground Handling policy

High Aviation Turbine Fuel (ATF) prices

High airport charges

Shortage of qualified pilots and technical

manpower

Safety and security issues

Closure of old airports

Congestion at airports

High taxation etc.

Aviation on path of game changer move

Civil Aviation ministry is considering the

recommendation of the Department of

Industrial Policy & Promotion (DIPP) to allow

foreign carriers to pick up stake in domestic

airlines. It will communicate the decision to

the DIPP shortly. The DIPP will then prepare a

draft note with the inputs from the Aviation

Ministry. After that it will go to the Cabinet

and its approval. It will be implemented once

Cabinet approves it. Airlines have been

lobbying with the government for almost two

years now to get foreign investment in the

ailing sector that collectively reported losses of

around Rs 10,000 crore in FY11.

Currently, foreign direct investment (FDI) is not

allowed in airlines but carriers which have

been posting losses in the past few financial

quarters have been looking at foreign investors

for a turnaround. In volatile market condition it

is very difficult for airlines to raise money,

hence if international carriers are allowed to

invest in Indian airlines; it will help to improve

operating and financial position. Civil Aviation

Ministry is expected to give its nod for up to

24% foreign direct investment (FDI) in

domestic carriers. As per current aviation

norms, FDI in aviation is allowed up to 24%,

but it is for companies, other than airline

companies. This hasn’t helped much because

nobody wants to invest in a sector that has

been bleeding and posting losses. So, this will

be a big game changer for the entire Indian

aviation space. This move will particularly aid

Indian carriers who are cash trap and will be

very happy to generate funds by equity stake

sale. Currently banks are quite reluctant to give

loans to airlines. Even oil marketing

companies are not too keen to give supply fuel

on credit.

LITERATURE REVIEW

“Air Transportation refers to a facility

consisting of the means and equipment

necessary for the movement of passengers or

goods” (Carlex, 2011).

During the ratification of the Chicago

Convention in December 1944, a prediction on

the future development of International Civil

Aviation was highlighted. It put forward the

view that the aviation industry can greatly

contribute to the stabilizing of relationships

and understanding among nations and people

globally. After 60 years this vision is now

patently evident with air transport being



accepted as a crucial part of society globally,

as necessary to our daily lives as medicine and

telecommunications, and essential for growth

and economic affluence (Colloway, 2002).

With the growing availability of affordable air

travel it has allowed the expansion of

aviation’s role in sustaining social progression

throughout remote communities as well as

internationally. Air travel is now no longer

regarded as a luxury commodity but rather a

contributor to social and economic benefits.

Air transport has given societies the

opportunity to develop their economies by

enhancing their capability for trade and

tourism which in turn contributes to the

creation of substantial benefits.

Haywood-Farmer, J. (1988), It is obvious

that customers are important stakeholders in

organizations and their satisfaction is a priority

to management. Customer satisfaction has

been a subject of great interest to organizations

and researchers alike. In recent years,

organizations are obliged to render more

services in addition to their offers. The quality

of service has become an aspect of customer

satisfaction. It has been proven by some

researchers that service quality is related to

customer satisfaction. Others used service

quality dimensions to evaluate service quality

Cronin, J. J., & Taylor, S. A. (1992), the

constructs of service quality, satisfaction and

value are discussed. Instruments are identified

and exploratory research is undertaken among

customers of an audit firm to determine

whether value plays a moderating role between

service quality and satisfaction. Results from a

moderated regression confirming such a role

for value are reported. Implications are drawn

and opportunities for further research are

highlighted.

Wicks, A. M., & Roethlein, C. J. (2009), Service quality and customer satisfaction are

very important concepts that companies must

understand in order to remain competitive in

business and hence grow. It is very important

for companies to know how to measure these

constructs from the consumers’ perspective in

order to better understand their needs and

hence satisfy them. Service quality is

considered very important because it leads to

higher customer satisfaction, profitability,

reduced cost, customer loyalty and retention.

Research Questions

Are customers satisfied with the quality of the

service delivery of air service from Lucknow

Airport?

The study seeks to assess and analyse customer

satisfaction with the quality of service delivery of

the air service From Lucknow. Additionally, it will

compare the level of satisfaction. The study will

seek to answer the following specific research

questions:

1. How can customer satisfaction with the quality

of service delivery be measured in a domestic

airline and local airports from Lucknow?

2. What is the impact of service quality on

customer satisfaction?

Dimensions of research concepts

Dimension of customer satisfaction

Extensive studies on customer satisfaction have led

to the development of many models which explain

the components of customer satisfaction. Some

authors perceived satisfaction as an overall

component while others conceptualize satisfaction

as a product of customers’ comparison of the

perceived performance of the product/service with

some cognitive or affective standards such as

desire, expectation, perceived value or perceived

service quality (Cliver, 1980; Suman, et at..)

Dimensions for airline service quality

Check-in process Cabin staff performance

Waiting time Communication skills

Check-in efficiency Grooming and appearance of staff

Staff enthusiasm and attitudes Cabin service efficiency

Problem solving Cabin presence throughout flight

Staff grooming appearance Friendliness of staff

Staff interaction with passengers

Staff enthusiasm and attitudes

Boarding Procedures

Boarding system efficiency

Assistance during boarding Standards of performance

Boarding priority

On-board product

Overall airline performance Flight schedules

Seating comfort Airfares

Cleanliness of cabin Booking system

Value for money Product and service information



Total product consistency Communication skills

Customer service

Destination service Staff assistance

Bag delivery time

DIMENSIONS FOR AIRPORT SERVICE QUALITY

Availability of public transportation

Staff friendliness

Easy access of public transportation

Communication skills

Terminal comfort

Toilet cleanliness

Terminal cleanliness

Smoking regulation

Seat facilities

Baggage delivery time

Check-in facilities

Airport accessibility

Terminal signage

Courtesy

Boarding call

RESEARCH METHODOLOGY

Research Strategy

I have used various techniques for search of a thorough study, valid theoretical and practical conclusions and

considered appropriate for collecting primary and secondary data were used. The secondary data was collected

through a theoretical study (Dryman & Nell, 2011). The theoretical study comprised books, articles and journals

which are related to the field under study - in this case – customer satisfaction and service quality. On the other

hand, primary data was collected through an empirical study. The empirical study was made through the

employment of a questionnaire regarding customer satisfaction on the quality of service offered by a domestic

airline and local airports within Lucknow.

Target Audience

The population of the current survey was comprised of those who have actually experienced the services offered

by a domestic airline and International Airlines from Lucknow.

Research Design

Descriptive and exploratory

Sample Size

100

Sample Technique

Convenience Sampling

Statistics of airline service quality

Dimensions Variables Mean Std.deviation Min Max

Check-in

process

Waiting time 3.77 2.46 1 5

Check-in

efficiency 4.15 1.45 1 5

Staff

enthusiasm and

attitudes

2.19 1.47 1 5

Boarding

procedures

Boarding

system

efficiency

3.06 1.23 1 5

Assistance

during boarding 2.06 2.12 1 5



Dimensions Variables Mean Std.deviation Min Max

Cabin staff

performance

Communication

skill 1.06 2.12 1 5

Grooming and

appearance of

staff

1.75 2.08 1 5

Cabin service

efficiency 1.42 2.19 1 5

Standards of

performance 1.4 -1.06 1 5

On-board

products

Seating comfort 3.94 2.47 1 5

Cleanliness of

cabin 1.95 2 1 5

Value of money 1.3 2.15 1 5

Overall

airline

performance

Flight’s

schedules 2.44 1.44 1 5

Airfares 1.36 1.36 1 5

Booking system 2.05 1.35 1 5

Product and

service

information

1.05 1.42 1 5

Statistics for airport service quality variable

Variables Mean Std.

deviation Min Max

Availability of public transportation 2.37 1.94 1 5

Easy access of public transportation 2.22 1.87 1 5

Terminal comfort 2.05 1.02 1 5

Terminal cleanliness 2.88 1.99 1 5

Seat facilities 1.79 0.89 1 5

Check-in facilities 1.45 0.84 1 5

Terminal signage 1.79 0.89 1 5

Baggage delivery time 3.72 2.11 1 5

Airport accessibility 1.02 0.76 1 5

Boarding call 1.99 0.74 1 5

Table 6.5: Correlation Analysis on airline dimensions

Check-in Boarding Cabin staff On-board

process procedures performance product service

Boarding

Procedures 0.656

Cabin staff

Performance 0.639 0.485

On-board

Product 0.696 0.669 0.723

Destination

Service 0.520 0.583 0.536 0.531

Overall airline

Performance 0.628 0.478 0.607 0.538

Note: Correlation is significant at 0.01 level (2 tailed-test) for all variables presented in the table



DISCUSSION

As earlier I have indicated in our description of the

sample chapter, out of the total respondents of 100,

37 were females and 63 were males indicating a

fairly balanced gender distribution. Most of them

(100) were within the age group of 21 to 45. From

our demographic information, it is evident that our

sample is quite young, employed and frequently

travels for the purpose of business and holidaying.

This could mean that our results may be more

applicable for this part of the population.

CONCLUSIONS AND IMPLICATIONS

As per the research the service dimensions for

airline and airports investigated in this study

received negative responses by the respondents as

factors that influenced their level of satisfaction

with air service from Lucknow Airport just because

of lacking of Infrastructure. The most dissatisfying

dimension or airline service quality (by mean

score) was on-board products, followed by overall

airline performance, check-in process and

destination; service appeared next, then cabin staff

performance, and boarding procedure is the least

dissatisfied dimension. As New Terminal of

Lucknow Airport started few year back so still a

lots of improvements are required. These results

may lead to suggestions for airline management

and policy-makers to consider how they might

improve customer retention in today’s competitive

air transportation environment. Results of this

analysis have also shown that comparison between

groups indicated different levels of satisfaction. In

addition, there is no significant association in

satisfaction level between gender groups. In this

regard, efforts and resources should be focused on

improving those dimensions which are found to be

most dissatisfying and would be detrimental to the

long term viability of air transport in Lucknow.

This means that a more concerted effort by

management and intensive strategies must be

geared towards improving those services for which

passengers are least satisfied.

The results of this study suggest that marketing

managers of respective Airlines should survey their

customers and work to reduce dissatisfaction on all

components of satisfaction.

Recommendations for Further Research

This study mainly assessed and analysed customer

satisfaction on the service quality of air service

within Lucknow specifically on only 01 Airport

and 8 airlines passengers only. It is, therefore,

recommended that future research should focus on

the following;

1. Include more Airport in order to get a more

general feedback on the satisfaction level of air

service quality of Domestic and International

Passengers

2. Develop and verify a model of customer

satisfaction for air service Lucknow

3. A larger sample size encompassing all

demographic categories can be improve result of

the study

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