GMG Airlines(bangladesh)

8/13/2019 GMG Airlines(bangladesh)

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Chapter 1

1.1 Introduction

1.1.1 The Domestic Aviation Scenario in Bangladesh

According to the data provided by Bangladesh Biman, in 1972 it flew nearly

337,000 passengers in the domestic sector and 367,000 passengers in the year

199, which is rather a stagnant fig!re" #!ch was the case beca!se, the domestic

aviation ind!stry of Bangladesh failed to gain the pop!larity or reliability of its

passengers, d!e to infre$!ent flight, inferior standard of service and lac% ofs!pply" &h!s people were forced to !se alternative forms of transport s!ch as

b!ses, trains and other private transport, which was $!ite inconvenient, when time

sec!rity and comfort were considered" B!t after the introd!ction of other private

sector airlines since 1996 and '(' Airlines in the year 199, the n!mber of

domestic air travelers has increased rapidly, as this company was s!ccessf!l in

catering to its c!stomers needs" B!t it still remains a fact that the latent demand

for air)travel has not yet reached its f!ll potential"

1.1.2 Company Overvie

!"! group #ac$ground

'(' 'ro!p was formed in the year 19*6 as a conglomerate of man!fact!ringcompanies" Altho!gh, it started as a small to medi!m)si+ed, conservative gro!p of

primarily man!fact!ring firms, '(' was the first tetile dyeing and finishing !nit

of Bangladesh in the year 19*7" -t was also the first steel re)rolling plant, year

19*, and the firstand c!rrently the largest ra+or blade man!fact!ring !nit of the

co!ntry, which was established in 19*"

1.1.% The &ormation o& !"! Airlines 'td.

1


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-n the year 1997, the 'overnment of Bangladesh advertised f!rther dereg!lation

of the Airlines ind!stry of Bangladesh by inviting applications for license for f!ll

domestic airline operators" &wo years prior to this dereg!lation, the 'overnment

for the first time dereg!lated the airline ind!stry by allowing smaller . air tai. or

#&/ short ta%e)off and landing type operation"

'(' Airlines, which is one of the company of the '(' gro!p, retained a well)

%nown 4 based cons!ltant 5eil ansford to st!dy the opport!nity in depth and to

help '(' implement the b!siness plan" ansford provided the m!ch desired

ind!stry) specific %nowledge" '(' Airlines also f!rther benefited by the fact that

the (anaging irector and the 8hairman were both trained and well $!alified

commercial pilots and played a vital role in the form!lation of the b!siness plan"After a thoro!gh research and a satisfying and materialistic b!siness plan,

attention was diverted to overcome the net cr!cial step, which was the financing

for the aircraft and other infrastr!ct!re necessities" B!t '(' was s!ccessf!lly

able to raise 1 million worth of finance in the form of an operating lease of three

aircraft" &h!s in the /ctober of 1997, '(' signed the aircraft leases 1 million

# dollars with Bombardier :egional Aircraft ivision, where, the owners of the

'(' gro!p provided the e$!ity and the local Bangladeshi Ban%, provided thewor%ing capital" &h!s '(' Airlines started with its maiden ;o!rney in April ,

199 and has been contin!ing s!ccessf!lly, ever since" '(' Airlines positioned

itself as a premi!m airline with the corporate mission of providing .


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1.1.( Mision-

&he (ision /f '(' Airlines is dedication to the highest $!ality of c!stomer

service delivered with a sense of warmth, friendliness, individ!al pride and

company spirit"

Objective-&o provide better service to the val!ed c!stomer beyond their epectation, cater

to all their needs within company r!les and inform the c!stomers if any delay and

cancellation of flight"

Strategy

&o achieve their ob=ective, they are following one of >orter?s generic strategies of

3

Director Flt

Operations

Director

Engineering

Director

Admin

!ec"rit#

Director

Mar$etin

g sales

DirectorCommercial

%International operation&

Director

A"dit

GM'

(rod"ction

GM'

Admin

GM'

Gro"nd

!er)ice

GM' %FA&

GM'

(roc"rement


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Differentiation.&hey have maintained sched!led time for flights and good

relationship with the c!stomers, which is the main reason behind their s!ccess"

@ven tho!gh the fare is higher than B-(A5, people still prefers '(' beca!se of

the $!ality of service"

Policies

&he policies of '(' Airlines were form!lated, %eeping in mind to attain c!stomer

loyalty of present and potential c!stomers" #o far '(' has been s!ccessf!l to

establish its image in both the corporate and the commercial world, which has

res!lted with achieving 0 of the domestic mar%et share in the aviation ind!stry

of Bangladesh"

As, established in the aviation ind!stry, c!stomer loyalty grows right before the

service is !nderta%en" Altho!gh '(' believes that it already has its own

spectr!m of loyal c!stomers, b!t is also aware of the fact that this fig!re has

to be maintained and sho!ld be increased as well in order to have the

competitive edge against its competitors"

Chapter)2

2.1 Current *outes

'(' c!rrently flies nearly 32 flights everyday, with its two ash), with an

average landingCand, ta%e off every half an ho!r" -t has an average of at least 2

offices in all the mentioned cities" &he s!mmary of the c!rrently followed sched!le

is as follows)

Destination

+To , &rom

Dha$a-

Distance

autical

"iles

Bloc$ Time

Sectors &lon

/er day

8hittagong 123 * #ylhet 106 0 6;essore 79 3* 6Barisal 66 30 2

*


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2.2 "ar$et /ositioning

'(' Airlines has been s!ccessf!l in positioning itself as a premi!m airline with

the corporate mission of providing .


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To provide a sa&e and relia#le ourney

/ver its f!nctional years, passengers has been able to rely on '(' Airlines.

promise of a safe and comfortable =o!rney, than%s to its aircraft, which is !sed by

more than seventy top operations all over the world with a dispatch reliability of

99"3" -n order to f!rther ens!re the proper and reg!lar maintenance they have

an agreement with a #cottish firm %nown as 8aledonian Airborne" Beside that a

considerable n!mber of engineers, both Bangladeshi and foreigners, are engaged

in ho!rly and ro!tine chec%)!ps of the aircraft and management sees to it that

they are followed very strictly" '(' is also in a contract with another rep!tedcompany for its s!preme engineering division"

2.( Interline Connection

Bangladesh Biman.s analysis of domestic traffic shows that the ma=ority of

passengers travelling on domestic ro!tes are act!ally passengers connecting

from its own international flights" &h!s '(' started to foc!s on the passengerswho travel in other -nternational flights other than Biman" &h!s, '(' has ta%en

f!ll initiative to capt!re these large p!lls of passengers who are also destined for

domestic destinations" 8omp!teri+ed reservation system and c!rrent interline

agreements with British Airways, @mirates, #ingapore Airlines, Fatar Airways,

4!wait Airways and #a!dia, &hai and some other -nternational Airlines, has

helped '(' Airlines to ta%e f!ll advantage of the sit!ation" As a res!lt, incoming

passengers can now have their baggage tagged to their final destination"

2. Decision)ma$ing process

-n case of any ma=or decision regarding, resched!ling, cancellation or delay of any

flights, the decision ma%ing body brief the sit!ation to the (anaging irector and

then he decide f!rther actions and decisions accordingly"

&he ma=or decision)ma%ers are as followsG )

irector


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'( 'ro!nd #ervice

(anager #ales

2.5.1 Information Delivering Process:

&he message that is delivered is standard for each and every staff of '('

Airlines, and this message is than conveyed to the passengers of the respective

flights"

2.3 *esponsi#ilities o& the head O&&ice)

Manager Sales-

:egarding any cancellation or delay of flights, the head of sales !s!ally the

manager sales is contacted and the !pdated flight position is confirmed"

#ometimes, depending on the load factors, flights are red!ced or combined, to

avoid delays" Dhen any cancellation message is received, the sales department

is responsible for preparing a revised sched!le considering all related aspects"

-

Decision .rom committee

Concerned !ales (erson

Reser)ation ManagerC"stomer !er)iceAsst Manager % /one 0ise&

Co"nter !"per)isor

Co"nter !ta..s

Reser)ation O..icer


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And this message is f!rther circ!lated in every stationCco!nterCdepartment" -n

case of the absence or the !navailability of the sales manager, the assistant

managers informs to the co!nter s!pervisor abo!t the flight stat!s, and

coordinates and follow !p the sit!ations"

Reservation Manager-

After receiving any message from #ales department regarding flight and other

related matters, the reservation !pdates sched!les, collect data regarding

passenger load" >rompt decision is re$!ired in this matter, as the passengers

need to be transmitted to the net available flight, or provided with any other

alternative sit!ations according to their preference" oc!mentation of all s!chsit!ations are %ept in files for f!t!re reference"

Supervisor

#!pervisor follows the instr!ction of Asst" #ales (anager and transfers the

message to the passengers by telephone or e)mail n!mber that was recorded

while boo%ing with the help of the co!nter colleag!es" &he co!nter staffs are

instr!cted to disc!ss with their s!pervisor in case of any critical or !n!s!alsit!ations and carry o!t the tas% according to instr!ction"

4ngineering Department

&his department is one of the important departments of '(' Airlines as it is in

charge of maintenance of the aircraft" &herefore, if this department fail to eec!te

their d!ties properly, the service of other departments will go in vain" &he interior

of the aircraft, its seat covers air)conditioning and cleaning, is also monitored bythis department" -t is also the responsibility of this department to inform the #ales

and :eservation epartment in times of technical diffic!lties faced by the aircraft

and the estimated time that will be re$!ired to fi the problems"


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Chapter)%

%.1S5OT Analysis

Altho!gh '(' Airlines td is comparatively new company in the ind!stry, it has

been $!ite s!ccessf!l in ma%ing its eistence prominent" By starting in the

domestic arena it has grad!ally driven itself to the international arena starting to

cond!ct direct flights in the 8hittagong)4ol%ata)8hittagong ro!te" &his has been

possible for its strong presence in the ind!stry and for the long)term goal and

epectation of the top)level management and also beca!se of the s!pport from

the employees of all level" '(' made a good !se of its image and pl!nged into

action as soon as the policy was reformed on their accord"

Strength

A company, image that portrays establishment and s!ccess

&op level management epertise, who has the %nowledge and eperience

to provide the company with what it needs to establish its name in the

-nternational arena"

-ts s!ccessf!l presence in the domestic aviation ind!stry

-t?s s!ccess in the pac%agesC prod!cts that has been available so far

8omp!teri+ed networ%ing system BAB# for domestic flight reservation

8omp!teri+ed networ%ing system Amade!s for -nternational flight

reservation -t is the only s!rviving private Airlines 8ompany in Bangladesh"

as s!ccessf!lly established interline agreement with some of the ma=or

-nternational Airlines company"

as a competitive fare system in all the c!rrent sectors"

#trives to maintain flight sched!les, as long as it does not get serio!sly

hampered by eternal factors which are beyond their control"


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(aintains a strong corporate connection and liaison in order to maintain

and increase the spectr!m of their clientele"

as been maintaining an efficient boo%ing, tic%eting and ref!nding system

in order to gain the confidence and reliance from the c!stomer"

Weakness

/ver the last years, '(' has introd!ced different prod!cts in order to

attract wider range of mar%et, altho!gh some of them were s!ccessf!l, b!t

some of them co!ld not attract attention of the common citi+en, d!e to the

lac% of aggressive promotional activity"

Altho!gh the company can ta%e pride in anno!ncing that they r!n a highly

efficient and effective wor% force, some of the mid level employees feel de)

motivated as they feel that they are not provided with the opport!nity of

growth and sometimes their contrib!tions and wor%s are not properly

recogni+ed"

As soon as an empty position is recogni+ed, necessary steps are not ta%en

as $!ic%ly as it sho!ld, to f!lfill that empty position" &h!s, other staff has to

cond!ct that wor% for the time, which red!ces the efficiency and hampers

the proper f!nctioning of the entire department"

Opportunity

-n general, the private sectors of the co!ntry always face the diffic!lties of policy

str!ct!re and their implementation" &he Airlines ind!stry is not beyond this

diffic!lty and sometimes has to ta%e certain initiatives to reform these policies and

reg!lations" Bangladesh Biman has been acting as the policy ma%ers of this

ind!stry, and has retained the private sectors from cond!cting -nternational

operations for $!ite a long time, for reasons !n%nown" B!t, !nfort!nately, the

Biman itself failed to !phold the co!ntry image and add significant contrib!tion

and improvement to the ind!stry, and lost many b!sinesses to the other renowned

-nternational Airlines companies which have been r!nning $!ite s!ccessf!lly in

this co!ntry" &h!s only recently private sectors have been allowed a small b!t

significant epos!re into the -nternational arena"

1


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'(' can ta%e f!ll advantage of this sit!ation by establishing a firm gro!nd

in the -nternational sector as it has already done in the domestic mar%et"

/ver the recent years, co!ntries have been trying to gain attention and

attract foreign mar%ets by investing on their to!rist spots" &h!s the Airlines

company can ta%e f!ll opport!nity of the sit!ation and cater to different

mar%ets by offering differentiated pac%ages '(' has been offering

pac%ages with the help of their interline agreements of their own" &his will

enhance their prominence and add to their competitive advantage"

Altho!gh, the overall economy of the co!ntry is at a dire state, a certain

sector of the pop!lation has been maintaining their position in the society

with a higher position in the affordability scale" &hese sectors has always

been a target for the Airlines company and '(' Airlines can also =oin the

trend by trying to gain their attention by offering different benefits that might

aro!se their interest"

Threats

>olitical instability of Bangladesh has long since been hampering the

smooth r!n of Bangladesh, affecting each and every sector of the co!ntry"

&his contin!es to be a threat and all the ind!stries as well as the Airlines,

have mastered their own ways to deal with this contin!ing and everlasting

crisis"

As the government changes and new a!thority comes into position, there is

an ongoing trend of changing the r!les reg!lation and policy of the previo!s

government" &herefore, the ind!stry always r!ns the ris% of policy

reformation that might not go in their favor"

>artic!larly, the Airlines ind!stry is s!sceptible to changes that are beyond

their control i"e" the weather, specially, in a tropical co!ntry li%e Bangladesh

where rain always hamper a reg!lar flight sched!le"

3.2 GMG Holidays

11


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&hro!gh the path of the establishment of '(' Airlines, '(' gro!p felt the need

of establishing a travel agency, which will provide all %ind of travel related service

to the corporate world as well as for the general citi+en" Dith this motto, '('

olidays td" was established as a corporate associate of '(' Airlines" -ts

primary foc!s was to offer and promote pac%age to!rs in Bangladesh" ater, with

the =oint collaboration with oliday 5epal, it introd!ced 5epal pac%age to!r by the

end of the year 1999" /n ;an!ary 3, 2000 '(' olidays td" registered itself

!nder the (inistry of 8ivil Aviation and &o!rism as a f!ll)fledged &ravel Agency"

i%e their corporate associate, '(' olidays promises to its val!ed clients to

provide smooth, comfortable and convenient travel arrangements for its clients

where the service is .


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Chapter)(

(.1 Contri#ution o& Agency Sales

&ravel Agency sales have a ma=or infl!ence on the s!ccess of '(' Airlines" &he

following table is the sales record of '(' Airlines and performance of travel

agencies from 5ovember 9 till ;!ne 2000"

(.2 The /roect

Introduction

Dith the ina!g!ral flight on September 8, 2004 '(' Airlines has started

cond!cting -nternational flights in the 8hittagong)4ol%ata)8hittagong ro!te from

September 11, 200" 5evertheless, as going into international destinations with

their own crafts, is entirely new to them, in order to predict the reaction of the

clientele, and to ded!ce the possible s!ccess of this branch, a st!dy has beenperformed to envisage the possible f!t!re"

"onth Total Sale in Sales &rom Travel

Agents

6 o& Total Sale

ov 78 1%92993 1::89( 126

Dec 78 291(9%89 18187: 76;an 77 17397 13::1:9 76


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(.2.1 O#ective o& the study

&o determine and !nderstand, the Airlines selection pattern of the Bangladeshi

5ationals, who !se -nternational Airlines for their desired p!rposes, and, how

can '(' participate in the -nternational sector"

evelop a profile of '('?s prospective regional air travelers"

nderstand the Bangladeshi -nternational travelers choice and preferences, in

their carrier, and what does these choices depend on"

&o determine the factors that drive -nternational travelers to choose a

partic!lar -nternational carrier"

'eneral traveler?s perception abo!t the local carriers of Bangladesh and what

contrib!tions can '(' Airlines ma%e to improve the sit!ation"


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Drawing Saples

#amples have been pic%ed, %eeping in mindH '('?s target mar%et in the

-nternational flights" -n order to avoid the biased ness of the report, the

$!estionnaire were circ!lated among people, belonging to different pools of

profession, income and age" Dithin a defined bo!ndary

B!sinessG

-nternational /rgani+ations

omestic

(58

5'/ private organi+ations

'overnment /rgani+ation

@d!cational -nstit!tions privateCp!blic, teachersCst!dents

'imitations

/nly the Bangladeshi 5ationals are ta%en into consideration" &o!rists,

@patriates and Iisitors from other co!ntries have been ignored"

&he $!estionnaire has only been circ!lated among the citi+ens of ha%a 8ity"

&he st!dy has been performed by a random selection of 1* samples, which is

a very moderate n!mber, considering o!r pop!lation si+e"

Altho!gh, all $!estionnaires were !sed in the statistical analysis, all

respondents did not respond to some of the $!estions" B!t, all of them were

considered, %eeping in mind that the $!estions they did respond to, were very

val!able and will be !nwise to ignore"

/nly the fairly fre$!ent travelers were considered"

(.% An overall idea o& the Airlines Industry o& Bangladesh

1+


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&he airline ind!stries worldwide is facing a declining stage beca!se of the terrorist

attac% in "#" -t ca!sed many airlines to go ban%r!pt and layoff of millions of

employees in total" B!t as it is a resilient ind!stry and the global economy needs

air transport, this ind!stry wo!ld never decline completely" #ooner or later, it will

overcome this crisis, tho!gh the heavy loss occ!rred, may not be totally covered"

-n Bangladesh it is at the mat!rity stage and the mar%et is sat!rated" &he

competition is intense and local airlines have to compete with foreign airlines" &he

barriers to entry are great and the growth of the ind!stry has been slowed down"

B!t even when the ind!stry was growing, Bangladesh has been able to ma%e very

little contrib!tion in this sector" &he co!ntry has so far failed to address or monitor

the reasons that were responsible for this condition" @ven, where problems wereidentified, proper steps have so far not been ta%en to modify this sector of h!ge

potentiality"

Before, as no private carriers had the a!thority to fly international flights, the only

Airlines that was available for domestic travelers, was the 5ational 8arrier) Biman

Bangladesh Airlines" B!t !nfort!nately, it was not possible for them to meet the

h!ge demand that was available, and as they failed to grasp the potential,

Bangladesh was deprived of some million dollars of foreign c!rrency ann!ally"

(.( /4ST Analysis

Political ipact

/ne of the ma=or problem that was identified for the low efficiency and poor

standard of the Airlines, was d!e to the government intervention and b!rea!cratic

policies that seems to hamper proper eec!tion of wor% flow" &h!s, it res!lted in

inefficiency and ineffectiveness in the wor% place, a total lac% of control over the

policy, which made the entrance of foreign and better competitors m!ch easier"

Another point, which is worth mentioning, is that a change in government in

Bangladesh almost certainly means a change in the policy beca!se any decision

ta%en by the previo!s r!ling party is not acceptable by the c!rrent r!lers" &wo

aircraft bo!ght by the previo!s 'overnment were not !tili+ed immediately,

beca!se after the change of the 'overnment, the new a!thorities concerned,

1,


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wanted =!stification from the c!rrent employees, that why these two new aircraft

were needed in the first place"

B!t, not only does the government r!n organi+ation s!ffers, the private

organi+ation also hesitates to ta%e ma=or decision in fear of a new inappropriate

policy reform"

!conoical

&he overall economical condition of Bangladesh is in a fragile condition where the

b!ying power of people i"e the disposable income has been s!ffering poorly" /nly

a certain gro!p of people is not as affected by the economy as most of the middle)

class or even the !pper middle)class s!ffers" &herefore, people who have often

traveled abroad $!ite fre$!ently before, might red!ce the fre$!ency d!e to their

loss of disposable income"

Social

/nly some years before, people were !sed to travelling by b!s and trains for

destinations within the co!ntry" B!t this practice soon changed, as travelling by

this methods were $!ite time cons!ming and the need for reaching the desired

destinations in minim!m time possible were increasing" &h!s, domestic air travel

gained its pop!larity specially amongst the eec!tive class who faced the most

time constraints"

Altho!gh, Bangladesh.s domestic air ind!stry faced little effect after the 9C11

incident, b!t still than the general impact and tra!ma faced by the people of

Bangladesh cannot be ignored which might have affected the ind!stry to a smalleretent"

Technology

-n order to cope with recent developments, organi+ations are getting more

technologically so!nd" >assengers can now chec% any flight sched!les andtimings from almost any parts of the world" Altho!gh not largely practiced in

1-


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Bangladesh, some -nternational flights do have on)line boo%ing system, which has

made it very convenient for the passengers" &he local companies !se their own

networ% of comp!ters, thro!gh which they can comm!nicate with their other

branches, operating at different places, which red!ces the infrastr!ct!re costs"

(. /orter0s &ive &orces

Threat of "ew !ntrants

Airlines -nd!stry happens to be a highly capital intensive ind!stry where massive

infrastr!ct!re cost is associated" &h!s even if the ind!stry has a high potential,

threat of a new entrant is very !nli%ely, beca!se if a company fails to performwithin a definite standard with its e$!ipment and service, it has to end!re a high

switching cost" owever, it is always possible, that an already established

international company can ac$!ire the approval of the government to enter into a

potential new sector"

#argaining Power of suppliers

/ne of the ma=or s!ppliers of an Airlines company is its aircraft s!ppliers and theprovider of the boo%ing system !sed" -n the domestic region, Biman has been

!sing


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with the performance of one company, they can easily switch to another one"

&h!s the b!yers have a higher bargaining power over the Airlines company"

Threat of Substitutes

Altho!gh, while travelling within the co!ntry, by road or river, can be an option b!t

they are not act!ally regarded as s!bstit!tes" Dhereas, recently, going to 4ol%ata

by road or by air can be tho!ght of as s!bstit!tes of one another" B!t still then in

other international destinations the only option is by air, where the only s!bstit!te

is another company which offers the same preferred destination"

Rivalry

&he prod!cts offered by all companies are virt!ally similar in nat!re, th!s eisting

companies face fierce competition by trying to offer something additional to its

c!stomers in terms of its services" As they are thriving to ma%e a considerable

amo!nt of b!siness in order to s!rvive in the ind!stry, both of the national

companies are trying to entertain the eisting c!stomers as well as attractingadditional passengers"

(.3 /orter0s Diamond "odel

A brief st!dy of the airlines ind!stry reveals factor con$itions to be a

determinant, which is essential for any company to gain a competitive advantage"

Human Resources- i%e most ind!stries of Bangladesh, airlines is also alabo!r intensive ind!stry, and where s!rvival or the growth of any company is

largely determined by the level of the s%illed employees they posses" &o meet

this criterion '(' employees go thro!gh etensive training sessions for the

post of cabin crew and sales person" &hey also need to be trained to !se the

boo%ing systems that are !sed by the organi+ations" Also, s%illed engineers

and technicians are re$!ired to ens!re proper maintenance of Aircraft"

Capital- it also happens to be a capital oriented company where h!ge initial

investment is re$!ired and the brea%)even point is not attained very soon"

1


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Dean$ %on$ition

&he demand condition fl!ct!ates depending on the c!rrent economic and social

conditions" B!t as mentioned earlier, over the last years people are becoming

more inclined towards flying d!e to certain social and in some cases economic

reformations"

Relate$ & supporting in$ustry

&he related and s!pporting ind!stries in the airline ind!stry are, travel agencies,

hotels, to!rism, etc" Dith the growing !se of online boo%ing system, the travel

agencies face increasing threats" -n order to remain in the ind!stry, they havestarted their own online service" owever, with the increasing demand for any

to!rist spot accelerates the air travel to that state" As, nowadays, people go

abroad to have better treatment facilities as people have lost faith on the health

care service of Bangladesh" #o, co!ntries li%e -ndia #ingapore, Bang%o% etc,

which provide better medical service within the region, can be attractive ro!tes for

the airlines"

'() *irs+ Strategy+ Structure an$ Rivalry

&he worldwide consolidation is increasing the rivalry" As the government has

given permission to the private airline companies to start !p international

operations, in f!t!re, the trend of consolidation might be followed in the local

ind!stry as well"

(.:.1 4=isting "ar$et &or International Tra&&ic + ;une 78);uly 77-

escription Asia (iddle

@ast

@!rope America &otal

>asseng

ersBiman

passengers

8arried

367901 3*67 11** 2727 661**

assengers

1200 67 66622 ) 112719

2


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&otal inbo!nd pa

by Biman

173131 113962 *2933 1163 3*1669

&otal inbo!nd >a

by others

2202 2712 227 ) *1721

&otal o!tbo!nd

pa carried by

Biman

1** 1*7 *7171 130 07266

&otal o!tbo!nd

pa carried by

others

197*22 37276 27 ) 600672

&otal inbo!nd pa

carried by Bimanand /thers

39319 310 7*721 1163 67

&otal o!tbo!nd

pa carried by

Biman and /thers

36076 *62733 60* 130 100793

>ercent of

Biman >a

with:espect to

total pa

7"2

3*"* 62"6 100 3"

>ercent of

/ther

Airlines

>a with

respect to

&otal >a

*2"

6"* 37" via

other

destinati

ons

*7"6

21


22/48

A/T4*)

.1 Analysis o& the study + Appendi= i -

&he findings of the st!dy were analy+ed by ta%ing the help of .+)test. and .chi)

s$!are. tests of the several opinions that were epressed by the respondents"

&he st!dy has been divided into two sectors" &he first sets of $!estions were

designed to obtain general information of c!rrent and potential travelers" &hese

data were so!ght to create at least a conservative o!tline of travelers, so that the

target mar%et or a meas!re of the promotional arrangements to cater to these

mar%ets can be determined" &he second set of $!estions were formed to

determine the opinion of the present c!stomers of '(' Airlines and in case of

those who haven.t eperienced '(' Airlines before, their perception abo!t this

company were so!ght"

.2 The In&ormation o#tained &rom the study

,en$er

&he percentage distrib!tion of male and female respondents was 6"32 and

3*"6 respectively" &he percentage varies to certain etent, beca!se, before the

distrib!tion of the $!estionnaires, the individ!als were as%ed whether they

traveled fairly fre$!ently or not, as the st!dy was restricted among the fairly

fre$!ent fliers" As the samples were chosen randomly, it can be s!ggested from

the above)mentioned fig!res that male respondents tend to travel more by air

22


23/48

both in the national and international level, altho!gh, the specific reason for this

difference co!ld not be definitely identified"

23


24/48

1*"13

22"7

7"6

17"3

37"3

0

*

101*

20

2*

30

3*

A0

20)2* 2*)30 30)3* 3*)A0 A0 !p

age range

pe

rcentage

A!4 *A!4

&he age range was defined from 20 years, beca!se, in Bangladesh, citi+ens

below that range are mostly financially dependent and have less decision)ma%ing

a!thority in choosing the airlines while travelling, altho!gh, this conception might

vary among families, and other factors, which are beyond the scope of this report"

Also, five years were gro!ped together, as people falling within those ranges tend

to have similar opinions, and a wider gro!p might not give a more precise view of

the scenario" &he percentage distrib!tion of the age range of the respondents has

been given above"

(. Monthly+ *aily/ ,ross incoe in Tk

&he income level has been p!rposef!lly %ept high, beca!se the epense of

travelling by air whether in the domestic or the international ro!te is $!ite high

compared to other means of transport" &herefore, citi+ens residing at the lower

income level have not been

considered as potential c!stomers for the airlines companies" &he percentage

distrib!tion has been mentioned below"

2*

A7"6

2A"9

12"A

3"

11"3

0

10

20

30

A0

*0

Below

2*000

2*000)

A0000

A0000)

60000

60000)

7*000

7*000

p

"onthly?


25/48

0102030A0*060

'ovt

service

holder

>rivate

service

holder

B!siness /thers

occupation

percentage

Altho!gh it can be ass!med that the percentage will be higher at the higher

income range, 7"6 respondents are from the range of the income level of below

2*000" &his is beca!se most fairly fre$!ent fliers travel in official p!rpose and in

most of the cases, the epenses are carried by the organi+ation they serve"

(' Occupation

-n order to gain a f!ll insight of the st!dy, occ!pation of the respondents has been

determined as one the leading factor of this research, which will help to create a

f!ll profile of the air travelers" 7"2 of the respondents are government service

holders, and among the 1"13 who mar%ed .others., are st!dents, semi)

government employees and some of them are c!rrently !nemployed"

( 0ocation of Resi$ence

&his criterion was incl!ded beca!se, many aspects of people are revealed by the

places where they choose to live" &he locations that were chosen incl!de posh,

densely pop!lated and ma=or areas where the target c!stomers might reside" An

open option was %ept for the respondents in case they belong to those areas

other then the ones mentioned"

-t is evident from the fig!res that a large s!m, 3"0 of the respondents mar%ed

the .others. option" #ome of the places that were more fre$!ently mentioned were,

(irp!r, A+imp!r, 'a+ip!r, Badda, (oghba+ar and 5ew @s%aton, th!s ens!ring

the diversity of the respondents, which is also essential for an !nbiased res!lt"

2+


26/48

(1 0ocation of Office

&he same areas were chosen, as these are the ma=or areas aro!nd the 8ity" /nly

an additional area, (oti=heel was mentioned separately as it is a ma=or

commercial area accommodating, many ma=or national and international

instit!tions"

2,

17"9

2"2

9"1"1 1"1

3"

3"0

0*

101*202*

303*0

'!lsha

n

Bana

ni

3ttara

(oha

mmad

p!r

7han

mon

di

#han

tinag

or

/the

rs

'ocation

/ercentage

o&re

spondents

36"3

*"A3"

*2"*

0

10

20

30

A0

*0

60

1

/ercentageo

&respondents

'!lshanC

BananiCttara

(ohammadp!

rC7hanmondi

#hantinagarC:

amna

(oti=heelE

others


27/48

() Travelling by air

Air travelling happens to be the fastest and most convenient means of

transportation" Altho!gh, to reach certain destinations, it is not an option, b!t

people sometimes choose this mode of transportation even when other means

are available" &h!s it becomes important to !nderstand why does people travel by

air, !nder which circ!mstances and in what fre$!ency"

B!siness and holidays, seems to be the p!rpose of travelling for most people who

!se this mode of transport at least once a year" &he other p!rposes, which were

mentioned, were, ed!cational, visiting relatives and emergency p!rposes where

the fre$!ency varied with circ!mstances and the people involved"

"

2-

23"3

*7"1

A3"3

7*"3

A2"9

31"933"32A"7

6"1

0102030A0*060700

B!siness olidays (edical

>!rposes

/thers

/nce a (onth

/nce a year

/thers


28/48

C>A/T4*)3

a:espondents said that other epenses are somewhat important

&he n!ll hypothesis was re=ected based on the calc!lation against the alternative

hypothesis" &herefore it can be safely s!ggested that the respondents give

somewhat importance to the other related epenses of air travelling"

c5 Routing>o:espondents said that ro!ting is somewhat important

2


29/48

>a:espondents said that ro!ting is most important"

&he n!ll hypothesis has been re=ected based on the calc!lation against the

alternative hypothesis" &h!s, respondents agreed that ro!ting is one of the most

importantaspects that is considered in air travel"

$5 Stopovers

>o:espondents said that the stopovers are somewhat important

>a:espondents said that the stopovers are the most importantaspect"

&he n!ll hypothesis is not re=ected based on the calc!lation against the alternative

hypothesis" &herefore, concl!sion can be drawn that respondents have mar%ed

stopovers as somewhat important"

e5 %ofort

>o:espondents said that comfort is somewhat important

>a:espondents said that comfort is most important

&he n!ll hypothesis is re=ected based on the calc!lation against the alternative

hypothesis" &herefore, it can be said that respondents agreed that comfort is themost importantaspect of air travel"

Stateent 78 when 3 a travelling 4 by air5 for personal reasons 3 give

iportance to

a5 Ticket fare

>o:espondents said that tic%et fare is somewhat important

>a:espondents said that tic%et fare is most important.


hypothesis" &herefore, it can be s!ggested that the respondents give most

importanceto tic%et fare, while travelling for personal reasons"

b5 Other !6penses

>o:espondents said that other epenses are somewhat important

>a:espondents said that other epenses are most important.

2


30/48


hypothesis" &his s!ggests that the respondents give most importance to other

epenses when they travel for personal reasons"

c5 Routing

>o:espondents said that ro!ting is somewhat important

>a:espondents said that ro!ting is most important.


hypothesis, which s!ggests that the respondents said that ro!ting is somewhat

importantwhen travelling, by air"

$5 Stopovers

>o:espondents said that stopovers are less important

>a:espondents said that stopovers are somewhat important.


hypothesis" &herefore, it can be said that respondents give somewhat importance

to stopovers, while travelling by air"

e5 %ofort

>o:espondents said that comfort is somewhat important

>a:espondents said that comfort is the most importantaspect


hypothesis, mar%ing comfort as the most importantaspect"

3.1 Analysis o& the results

As the p!rpose of travelling can vary amongst people, to ma%e it convenient and

easy to st!dy the p!rpose has been divided into two categories, official and

personal" &he main reason for this division is to !nderstand whether the choice

and preference of people varies with these categories" &his will also help in the

3


31/48

!nderstanding, which are the aspects of Airlines that are given importance when

the p!rpose of travelling changes"


32/48

>o:espondents said they agree that they choose their airlines based on its

affordability

>a:espondents strongly agree that they choose their airlines, based on its

affordability"


hypothesis" &herefore, it can be said that respondents strongly agreethat they

choose their airlines based on its affordability"

b5 3 perceive that the journey will be secure$ an$ safe

>o:espondents agreethat they choose their airlines based on their perception

of safety">a :espondents strongly agree that they choose their airlines based on their

perception of safety"


hypothesis" &herefore, it can be said that respondents strongly agreethat they

choose their airlines based on their perception that the =o!rney will be safe and

sec!red"

c5 Reliability of flight tiings

>o :espondents agreethat they choose their airlines based on its reliability of

flight timings"

>a:espondents strongly agree that they choose their airlines based on its

reliability of flight timings"


hypothesis" &herefore, it can be said that respondents strongly agree to the

statement that they choose their airlines based on its reliability of flight timings"

$5 The aircraft use$ is upto the 3nternational stan$ar$

>o:espondents agreethat they choose their airlines based on the fact that the

aircraft !sed is !pto the international standard"

>a:espondents strongly agree, that they choose their airlines based on the fact

that the aircraft !sed is !pto the international standard"

32


33/48


hypothesis" &herefore, it can be said that respondents agree to the statement

that they choose a partic!lar airlines based on the fact that the aircraft !sed by the

organi+ation is !pto the international standard"

e5 My previous e6perience with the ;irlines %opany

>o:espondents isagreethat they choose their airlines based on their previo!s

eperience with the airlines"

>a :espondents agree, that they choose their airlines based on their previo!s

eperience with the airlines"

&he n!ll hypothesis is re=ected based on the calc!lation against the alternativehypothesis" &herefore, it can be said that respondents agree to the statement

that they choose an airlines based on their previo!s eperience with the airlines

company"

f5 3t has less acci$ents/alfunctioning rates

>o :espondents agree that they choose their airlines based on its

accidentsCmalf!nctioning rates(>a :espondents strongly agree, that they choose their airlines based on its

accidentsCmalf!nctioning rates(


hypothesis" &herefore, it can be said that respondents strongly agree to the

statement that they choose airlines, based on its accidentsCmalf!nctioning rates(

g5 o:espondents isagreethat they choose their airlines based on the $!ality of

service

>a:espondents agree, that they choose their airlines based on the $!ality of

service &he n!ll hypothesis is re=ected based on the calc!lation against the

alternative hypothesis" &herefore, the respondents agree to the statement that

they choose a partic!lar airlines, based on its the $!ality of service received at the

chec%)in and chec%)o!t points"

33


34/48

h5 #ehavior of on-boar$ crew ebers

>o:espondents agreethat behavior of on)board crewmembers are important

>a :espondents strongly agree, that behavior of on)board crewmembers are

important" &he n!ll hypothesis is not re=ected based on the calc!lation against the

alternative hypothesis" Dhich proves that respondents agree that behavior of on)

board crewmembers has an impact on their choice of the Airlines"

i5 3t provi$es goo$ groun$ services 4refun$ing an$ others5

>o:espondents isagreethat they chose their airlines based on the $!ality of

gro!nd service"

>a :espondents agree, that they chose their airlines based on the $!ality ofgro!nd service"


hypothesis" &herefore, the respondents agree that they chose their airlines

based on the $!ality of gro!nd service that the organi+ation offers"

j5 3 perceive the to be co-operative in case of any luggage isplaceent

>o:espondents agreethat they chose their airlines based on the perceptionthat they will be co)operative"

>a :espondents strongly agree, that they chose their airlines based on the

perception that they will be co)operative"


hypothesis" &herefore, the respondents agree that they chose their airlines

based on the perception that they will be co)operative, specially in case of any

mishaps"

3.2.1 Analysis o& *esult

Air travel is considered a l!!ry when other inepensive options are available"

&h!s, when air travel is chosen, all other options are considered before the final

decision is made and !s!ally the airlines with the lower rate is chosen" Also, their

perceptions abo!t the airlines. sec!rity and safety standards play an important

role where, peer s!ggestions, previo!s eperience and the c!rrent eval!ation of

3*


35/48

the organi+ation are considered" &his is f!rther proven by the fact that

respondents also strongly agreed that they chec% the aircraft previo!s

accidentsCmalf!nction rates before they !ltimately ma%e their decision" &he

reason that they are so ca!tio!s abo!t flying beca!se, altho!gh there are fewer

air accidents than road or rail road accidents death percentage is higher in case of

plane accidents, so the ris% factor is act!ally more higher than any other

transportation" &hey also tend to see whether the aircraft that is being !sed are

!pto the international standard and !se the international reg!lation and safety

standards, even if it is !sed for domestic p!rpose"

As mentioned earlier, air travel is the less time cons!ming transportation

available" &herefore, it is epected that Airlines 8ompany will try their best tomaintain the flight timings so that passenger is not deprived from this criterion as

promised" &he importance of this element is seen and !nderstood from the res!lt

that almost all respondent strongly agreed that they choose a partic!lar airlines

depending on whether they can depend on its flight timings or not"

As they pay more for flying, it is apparent that people will desire better $!ality of

service from the Airlines employees than from other transportation services"

#pecially, the service offered by the on)board employees s!ch as thecrewmembers seems to determine to a large etent whether someone will choose

one Airlines over the other" !ggage misplacements or other diffic!lties are not an

!n!s!al phenomenon that has been faced by many passengers of almost all of

the Airlines companies" &h!s there is always the epectation that f!ll co)operation

on the part of the organi+ation will be provided in order to remedy the sit!ation

and retrieve the baggage"

3.%


36/48

previo!s eperience with the company, their perception abo!t the organi+ation

has been considered"

Stateent :'8 3 have flown with ,M, ;irlines because-

a5 #ecause 3 wante$ to e6perience ,M, services

>o:espondents isagreethat they have flown with '(' Airlines to eperience

its services"

>a:espondents agree, that they have flown with '(' Airlines to eperience its

services"


hypothesis" &herefore, the respondents isagree that they have flown with '('Airlines to eperience '(' services"

b5 3 always choose ,M, when 3 fly within the country

>o:espondents agreethat theyalways choose '(' for domestic travel"

>a:espondents strongly isagree, that they always choose '(' for domestic

travel

&he n!ll hypothesis is not re=ected based on the calc!lation against the alternativehypothesis" &herefore, the respondents agree that they always choose '(' for

domestic travel"

c5 3 ha$ to choose ,M, as 3 ha$ no other choice

>o:espondents isagreethat they have chosen '(', as they had no other

choice

>a :espondents agree, that they have chosen '(', as they had no other

choice"


hypothesis, s!ggesting that the respondents agree that they have chosen '(',

as they had no other choice"

3.%.1 Analysis o& *esult

3,


37/48

&he first statement is a straightforward $!estion, which as%s why they chose '('

in the first place" &he respondents disagreed that they have flown with '(' =!st

to eperience its services, which only s!ggests that they chose it beca!se of a

specific reason" As, they have agreed that they almost always choose '(' for

flying in the domestic region, one reason that s!rfaces is that, they are not

satisfied with the other carrier that also flies domestically, which is Biman

Bangladesh"

1(' Stateent :18 Please e6press your opinion about ,M, ;irlines 0t$

a5 0ow airfare

>o:espondents isagreethat '(' has low fare

>a:espondents agree, that '(' has low fare"


hypothesis, s!ggesting that the respondents isagree that '(' has low airfare"

b5 The !ployees 4 groun$ service5 are co-operative

>o:espondents isagreethat '(' employees are co)operative

>a:espondents agree, that '(' employees are co)operative


hypothesis, which s!ggests that the respondents agree that '(' employees

are co)operative

c5 Ticket booking an$ other proce$ures are less tie consuing

>o:espondents isagreethat tic%et boo%ing and other proced!res are less time

cons!ming

>a :espondents agree, that tic%et boo%ing and other proced!res are less time

cons!ming"

3-


38/48


hypothesis" &herefore, respondents agree that tic%et boo%ing and other

proced!re ta%es lesser time with '(' Airlines"

$5 ,oo$ check-in an$ check-out service

>o :espondents isagree that '(' provides good chec%)in and chec%o!t

services"

>a :espondents agree, that '(' provides good chec%)in and chec%o!t

services"


hypothesis" &herefore, respondents agree that '(' provides good chec%)in andchec%o!t services"

e5 The crewebers are well traine$

>o:espondents isagreethat the on) board crewmembers are well trained"

>a:espondents agree, that the on) board crewmembers are well trained"


hypothesis" &herefore, respondents agree that the crewmembers of '('Airlines are all well) trained"

f5 Recently offere$ international $estinations are attractive

>o :espondents isagree that recently offered international destinations are

attractive"

>a :espondents agree that, recently offered international destinations are

attractive"


hypothesis" &herefore, respondents isagree that, the recently offered

international destinations are attractive"

g5 3 can rely on the flight tiings

>o:espondents isagreethat they can rely on its flight timings

>a:espondents agreethat, they co!ld rely on its flight timings"

3


39/48


hypothesis" &herefore, respondents agree that, they co!ld rely on its flight

timings

h5 Tickets are available at all ties

>o:espondents isagreethat flight tic%ets are available at all times

>a:espondents agreethat, flight tic%ets are available at all times


hypothesis, stating that, respondents agree that, flight tic%ets are available at all

times

i5 ,M, ;irlines has the potential to provi$e a secure$ an$ cofortable

journey

>o:espondents isagreethat '(' has the potential to provide a sec!red and

comfortable =o!rney"

>a:espondents agreethat, '(' has the potential to provide a sec!red and

comfortable =o!rney"

&he n!ll hypothesis is re=ected based on the calc!lation against the alternativehypothesis" &h!s respondents agree to the statement that, '(' has the

potential to provide a sec!red and comfortable =o!rney"

j5 The aircraft are in goo$ con$ition

>o:espondents strongly isagreethat the aircraft are in good condition

>a:espondents isagreethat, the aircraft are in good condition


hypothesis" &h!s respondents isagree to the statement that, '(' the aircraft

are in good condition

k5 3 woul$ prefer ,M, only to #ian #angla$esh

>o:espondents isagreethat they prefer '(' only to Biman Bangladesh

>a:espondents agreethat, they prefer '(' only to Biman Bangladesh

3


40/48


hypothesis" &h!s respondents agree to the statement that, they prefer '(' only

to Biman Bangladesh Airlines"

3.(.1 Analysis

8ompare to Biman Bangladesh Airlines, '(' Airlines has a higher tic%et fare

which is the res!lt of taation and additional epenses that this privateorgani+ation end!res, from which Biman is eempted as it is s!pported by the

government" B!t it also shows in the res!lt that the service provided is also of a

better $!ality to that of the national carrier, where the tic%et)boo%ing and other

proced!res ta%e more time than '(' Airlines, and the employee co)operation

level is also higher in '('" &he point where it definitely beats Biman is where the

$!estion of maintaining the flight timings is raised" Biman has been very notorio!s

in its contin!o!s fail!re if p!nct!ality, where '(' has been so far maintaining itproperly, considering some !navoidable circ!mstances which was beyond the

control of any organi+ation of this ind!stry"

nfort!nately, respondents were not very enth!siastic abo!t the condition of the

Aircraft, which has been sometimes regarded as being cramped and small"

Altho!gh, it is tr!e those domestic flights are of a m!ch shorter trips than

international ro!tes, b!t even then the passengers epect a bigger and better

craft" :ecently, '(' has offered one international ro!te and more is !nder

process b!t passengers still thin% that most of these destinations has failed to

arose that vol!me of ecitement amongst the passengers" ;!dging from its

previo!s rep!tations respondents seem to believe that it has the potential to

provide a sec!red =o!rney in almost any international ro!tes and so they sho!ld

start to p!rs!e more attractive international destinations, provided a m!ch better

aircraft is !sed"

B!t it dos not necessary prove that has been considered as the !ltimate sol!tion

beca!se it is only better when compared to Biman which is not a very standard

*


41/48

scale" &herefore, based on only this information it will be !nwise to concl!de that

it will see similar s!ccess in the -nternational scenario where competition is more

fierce and covers a wider range of competitors"

3. chi)suare Test + Appendi= iv-

&he 8hi)s$!are test is applied to find whether there is Associationbetween the

different Occupations of the respondents with the reason of choice+ and

incoewiththe aspects of airlines that are given iportance to .As, the twos!b=ect matter mentioned, involve two variables, therefore this test is !sed"

3..1 Association ith occupation and the reason &or choosing an Airlines

>o&here is no association between occ!pation and the reasons behind the

choice of a partic!lar>a&here is an association between occ!pation and the reasons behind the

choice of a partic!lar


hypothesis" &his means that there is no association between occ!pation and the

reasons behind the choice of partic!lar airlines"

3..2 Association #eteen income and the aspects that are given

importance hile travelling &or personal reason

>o &here is no association between income and the aspects that are given

importance to, while travelling for personal reason"

>a &here is an association between income and the aspects that are given

importance to, while travelling for personal reason"

*1


42/48


hypothesis" &his means that there is no association between income and the

aspects that are given importance, while travelling for personal reason"

3..2.1 Analysis

&ests were carried o!t to see whether there was any relation between the

occ!pation of the respondents and the reasons that received priority while

choosing Airlines" :elation between income and the aspects that are given

importance to while travelling for personal reasons were also st!died" Both ofthese factors yielded negative res!lts s!ggesting that income level of an individ!al

does not s!ggest that that person will give importance to certain aspects of any

Airlines, neither does occ!pation tells !s the reasons behind any of their choice"

69" of the respondents having a gross family income of less than &4 2*000,

mar%ed tic%et fare as most important, and 69"2 of the respondents who had

a gross family income of &4 7*000 and !p, mar%ed tic%et fare as most

important" Altho!gh it is tempting to ass!me that income level definitelychanges the priority of the tic%et fare, in reality its is not so" &here can be other

factors, apart from the level of income, which has an affect on their

preferences"

of 'overnment #ervice older, of >rivate #ervice older, 90 of

B!sinessman and * of people from other occ!pations agreed that they

want good behavior from the crewmembers and their choice largely depends

on this element" Altho!gh the fig!res varied to a smaller amo!nt it shows that

a greater percentage from people of all profession is giving priority to this

aspect, which to a larger etend determines their choice" &o f!rther proof this

point, *7 of 'overnment #ervice olders, 63 of >rivate #ervice olders,

63 B!sinessman and *7 of respondents from other occ!pation, wanted to

travel with the Airlines that offers the best gro!nd)service, which again

s!ggests that their are certain region of a Airlines company that is desired and

epected from people from all range"

*2


43/48

3.3 Some !eneral &indings@&acts

32 of all male pay a visit either to 4ol%ata, 8olombo, 8hennai or 4atmand!

at least every year, 60 of the time for b!siness and official p!rposes" Among

this 32, 70 visits are in 4ol%ata alone where 0 of the time it is for

vacation and shopping p!rposes" /n the other hand 33 of female

respondents visits these destinations among which 90 visits are in 4ol%ata

and 9* of the time it is for vacation or shopping"

31 of the respondents who has previo!sly flown with '(' resides in the

(ohammadp!r C hanmondi region and 32 resides in the '!lshanC Banani

region" And 0 of these respondent.s gross family income of 2*000)0000"

Almost every one, regardless of whether they have previo!sly flown or not said

the on)board facility, in other words the $!ality of the cabin crew members, are

the most important determinant factor of an -nternational standard Airlines

company"

(ost of the time, people choose their own Airlines when ta%ing the help of

travel agencies" Dhen the destination is decided, they tend to go thro!gh the

fairs offered by the different companies s!ally, the corporate travelers, or

more precisely, people who travel for b!siness or official p!rposes, they give

more emphasis on their comfort rather than on the epense"

s!ally people want airlines that offer the most direct ro!te with the lowest fair"


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average travelers" Before, they !sed to prefer -ndia, b!t recently, traveling

epenses in these co!ntries has become cheaper"

&he more Dell)off travelers go to @!ropean and American co!ntries" &he main

reason being that some family members are dispersed within these co!ntries"

&ime of travel) &he vacations are mostly ta%en before @id times" &hese has

been a recent trend and more applicable for the local people" B!t the

epatriates travel more on ecember, on 8hristmas time"

#ometimes, epatriates tend to go for official visits along with vacations"

8ompanies allow this proced!re, as this way it is cheaper than it wo!ld have

been, if it was ta%en =!st for vacations"

**


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C>A/T4*):

*ecommendation +in terms o& !overnment *egulation-

#ome of the policies, still eists, which, if not reformed will also hamper the

operation of the private carriers, even tho!gh private companies might not have

the limitation that the national carrier have"

-f the private carriers fit the criteria for international standards, with the help

of the A#A, government sho!ld ta%e more active initiative to bring the

private carriers in the active center of the international sector"

5ot allowing the private sectors in the ro!tes of the Biman, b!t letting the

foreign Airlines 8ompany to operate from Bangladesh was not a wise

sol!tion to improve the sector, beca!se Biman mercilessly failed to s!rvive

the open competition" &h!s it is advisable that the private Airlines sho!ld

be given the permission to fly in the pop!lar destinations"


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advantage of the opport!nities li%e growing leis!re travel, trading and getting

foreign degrees" As they have already started its voyage in -ndia, they can

eploit all the opport!nities mentioned above"

As they are epanding their b!siness, they wo!ld definitely have to do some

restr!ct!ring in the company" owever, as the basic infrastr!ct!re has already

been set !p, some minor changes might be re$!ired"

Altho!gh it is costly, b!t is advisable, that better Aircraft sho!ld be added in

the international ro!tes as people epects -nternational standard of service in

all respect" #t!dy reveals that ma=ority of respondents. thin% that the aircraft

needs improvement"

:.1.1 >uman resource

pdated training sessions for eisting employees can be arranged so that they

are aware of the c!rrent sit!ation in the ind!stry" @ach ma=or wor% area can

have it.s own training department which wo!ld incl!de speciali+ed co!rses for

each discipline"

Ann!al meetings can be arranged to create a bridge between employees

ranging from the lower and higher level of the hierarchy" All employees sho!ld

be enco!raged to s!ggest anything regarding salary, wor% environment and

other sensitive iss!es, which will enhance the motivation of the wor%ers as

they will believe that they are an important asset of the company" &he creative

s!ggestions sho!ld be eec!ted and implemented properly to gain the tr!st of

the employees"

A separate !man :eso!rce department can be introd!ced which can monitor

recr!itment, training programs, employee co!ncil and other related iss!es"

)(:(9 Prootion

A lac% of proper promotional initiatives has been noticed from '('" Altho!gh,

people are aware of the attractive pac%age offers that they have, these

advertisements fail to initiate the drive among citi+ens" (ore aggressivepromotional campaign needs to be established to increase the responsiveness

*,


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of passengers" Attractive billboards can be placed in ma=or areas of the city

with the c!rrently practiced news paper adverts" &he lay)o!t of the c!rrent

adverts can be made more attractive and eye catching, to gain the f!ll affect"

)(:(. ServiceS

#eparate c!stomer care booths can be placed specially in the pea% seasons,

which will be dedicated specially to c!stomer feedbac%, or complaint and any

problems faced by the passengers"

&ransportation services from the airport can be provided for the passengers"

#ome special cases do en=oy the practice b!t this service can be madeavailable for all willing passengers"

As the c!rrent international flight is from 8hittagong)Ban%o%, the pro$uct

$evelopent can be achieved by offering special pac%age or disco!nt

programs for the passengers in the ha%a)8hittagong)4ol%ata ro!te"

-nitially, at a smaller scale, fre$!ent flyer facilities can be given to the top

eec!tives of the leading companies of Bangladesh"

Conclusion

-A&A -nternational Air &ransport Association has shown a growing trend over the

global air traffic, which is a positive sign for the airline ind!stry" -n the phase of

*-


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tremendo!s competition in the -nternational Airlines -nd!stry, '(' has to be very

caref!l in choosing its strategies that will give them a s!stainable competitive

advantage over the other companies" &h!s contin!o!s monitoring and eval!ation

by the top management is advisable in order to ma%e its prominence in the

-nternational region" B!t, to improve the sit!ation for Bangladeshi airlines,

government also has to play a vital role and s!pport the ind!stry by ta%ing proper

policy reg!lation and setting standards for both the government and non)

government organi+ations"

GMG Airlines(bangladesh)

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