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CHAPTER - I
INTRODUCTION
1.1 The Airline Industry- Overview
An airline provides air transport services for travelingpassengers and freight.
Airlines lease or own their aircraft with which to supply these services and may form
partnerships or alliances with other airlines for mutual benefit. Generally, airline
companies are recognized with an air operating certificate or license issued by a
governmental aviation body.
Airlines vary from those with a single aircraft carrying mail orcargo, through full-
service international airlines operating hundreds of aircraft. Airline services can be
categorized as being intercontinental, intra-continental, domestic, regional, or international,
and may be operated as scheduled services or charters.
Few inventions have changed how people live and experience the world as deeply
as the invention of the airplane. World War II, like World War I, brought new life to the
airline industry. During the both World Wars, government subsidies and demands for new
airplanes vastly improved techniques for designing and building them. World War II
brought tremendous long run gains for the development of the air transportation industry
including, a large body of experienced pilots, a large collection of aircrafts used in the war
field and above all the increased public interest to fly due to the motivation given by the
experienced military personnel. Following the Second World War, the first commercial
airplane routes were set up in Europe. The next dramatic step in commercial aviation was
the adoption of jet liners during the 1950s. This provided increased travel speeds,
smoother flights and enlarged passenger-seating capacity.
The airline industry again leaped forward in the 1970s with the introduction of
wide-bodied aircrafts like Douglas DC-10, Boeing 747s. The advantage was the increase in
passenger comfort and seating and freight capacity. The 1980s witnessed still further
improvements in aircraft technology.
http://en.wikipedia.org/wiki/Civil_aviationhttp://en.wikipedia.org/wiki/Travelhttp://en.wikipedia.org/wiki/Passengerhttp://en.wikipedia.org/wiki/Freighthttp://en.wikipedia.org/wiki/Leasinghttp://en.wikipedia.org/wiki/Aircrafthttp://en.wikipedia.org/wiki/Partnershiphttp://en.wikipedia.org/wiki/Airline_alliancehttp://en.wikipedia.org/wiki/Air_operator's_certificatehttp://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Cargohttp://en.wikipedia.org/wiki/Civil_aviationhttp://en.wikipedia.org/wiki/Travelhttp://en.wikipedia.org/wiki/Passengerhttp://en.wikipedia.org/wiki/Freighthttp://en.wikipedia.org/wiki/Leasinghttp://en.wikipedia.org/wiki/Aircrafthttp://en.wikipedia.org/wiki/Partnershiphttp://en.wikipedia.org/wiki/Airline_alliancehttp://en.wikipedia.org/wiki/Air_operator's_certificatehttp://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Cargo -
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The industry has progressed to the point now where it would be hard to think of life
without air travel. It has shortened travel time and altered our concept of distance, making
it possible for us to visit and conduct business in places once considered remote. Many
airlines foresaw a future explosive demand for civil air transport, for both passengers and
cargo. The global airline industry, counting both domestic and international carriers, is a
giant industry. As the airline industry grew, new brands of airlines started coming up and
so did the travel industrys dependency on it. If the airline industry could be described in
three words, they would be "intensely competitive market."
Air transport forms a unique global network linking people, countries and cultures
and lays a vital role in the further integration and development of the world. It is
increasingly accessible to a greater number of people who can now afford to travel by air
for leisure and business purposes.
Some of the salient features of air transport are:
Over 1.8 billion passengers use the worlds airlines for business and leisure travel.
Research indicates that by 2012, this number cold exceed 2.3 billion
Air transport is essential for world business creating jobs and opening p new
market opportunities by attracting businesses to locations in the developed and
developing world. It moves products and services quickly over long distances
enabling economic and social participation by outlying communities.
Air transport provides 28 million direct, indirect and induced jobs worldwide, a
figure that is expected to rise to 32 million by 2012.
The combined direct, indirect and induced employment created at airports is 4000
jobs per million passengers served. The location of the airport creates an economic
ripple effect, attracting other industries and business activities, and secondary
support functions.
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Over 40% of world trade of goods (by value) is carried by air.
Aviation is directly linked to the tourism industry, generating receipts of 700
million euro per day, and creating considerable employment in the aircraft and
engine manufacturing industries and related activities.
The airline industry is classified into four categories by the Department of
Transportation (DOT):
International - 130+ seat planes that have the ability to take passengers just about
anywhere in the world. Companies in this category typically have annual revenue
of $1 Billion or more. National - usually these airlines seat 100-150 people and have revenues between
$100 million and $1 billion.
Regional - companies with revenues less than $100 million that focus on short-haul
flights.
Cargo - these are airlines whose main purpose is to transport goods.
1.1.1 Major challenges facing the airline industry
Airport capacity, route structures, technology, and costs to lease or buy the physical
aircraft are significant in the airline industry. Other large issues are:
Weather - The problem is that weather is variable and unpredictable. Extreme heat,
cold, fog, and snow can shut down airports and cancel flights (which costs money).
Weather is also the second-largest cause of flight accidents.
Fuel Cost - on average, fuel can make up 14-16% of an airline's total costs,
although efficiency among different carriers can vary widely. Short haul airlines
typically get lower fuel efficiency because take-offs and landings consume high
amounts of jet fuel.
Labor - it is estimated that 40% of an airline's expenses are used to pay pilots,
flight attendants, baggage handlers, dispatchers, customer service, and others.
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As a result of globalization the government opened the sky to many new airlines.
Consequently, the monopolists are facing competition from newcomers. In many ways, the
biggest winner in the deregulated environment was the air passenger. Indeed, the U.S.witnessed an explosive growth in demand for air travel, as many millions who had never or
rarely flown before became regular fliers, even joining frequent flyer loyalty programs and
receiving free flights and other benefits from their flying. New services and higher
frequencies meant that business fliers could fly to another city, do business, and return the
same day, for almost any point in the country. The result of liberalization was customer
delight. Since there are many options for the customers they will go for the best. So every
firm tried to make their products best to attract new customers at the same time maintain
existing customers.
Another reason why airlines want to retain customers is the cost. The commercial
aviation industry as a whole was affected by the September 11th incident and the crisis in
the Middle East. This led to the reduction in passenger traffic. As a result many airlines
could not survive. Due to high fuel prices and other taxes many airlines wound up their
services.
Historically, air travel has survived largely through state support, whether in the
form of equity or subsidies. Today, the pace of change in the airline industry is faster than
ever before. The industry is becoming increasingly liberalized. The former blanket of
regulatory protection is being swept away and airlines are being forced to compete in all
the aspects of product, price and service. Its structure is changing, with airlines grouping
together through strategic alliances, equity swaps and franchising arrangements into so-
called mega-carriers. The segmentation of the market is evolving, with airline customers
becoming more demanding and, often, more price- sensitive as well. Airline industry is one
of the most competitive and growing industries in the world as it leads to economic growth,
world trade, international investment and tourism. In the last decade, it has grown strongly
by 7% per year for both business and leisure purposes.
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Airline industry is considered as one of the fastest expanding sectors of the world
with growth rates 2.4 times above the GDP rates on average. It is also predicted to grow by
an average of 5 % a year from 2000 to 2010 (INTERNATIONAL AIR TRANSPORT
ASSOCIATION).It is affected by the economical growth, trade and political factors. As an
economical factor, the increase in oil prices destroyed the profitability of the global airline
industry, accordingly it losses around $6 billion in 2005 (INTERNATIONAL AIR
TRANSPORT ASSOCIATION).
Due to the unstable political and economical situation, many airlines companies
started to modify their strategies and services to survive and succeed in the airline industry.
For example, many companies invested heavily in the quality of services they provide by
offering, e-booking system, new interactive entertainment systems, more comfortable seats,
low cost carriers and many technological techniques..
Overall, the airline industry will recover as the number of passengers seems to be
doubled by 2010 to exceed 2.3 billion due to the tourism, trade and economic development
(INTERNATIONAL AIR TRANSPORT ASSOCIATION). Thus, Successful airlines will
be those that continue reducing their costs and improving their services by differentiating
from competitors to secure a strong position in the aviation market.
1.1.2 Airline personnel
The various types of airline personnel include: Flight operations personnel including flight
safety personnel.
Flight Crew, responsible for the operation of the aircraft. Flight crew members
include:
o Pilots (Captain and First Officer: some older aircraft also required a Flight
Engineer and or a Navigator)
o Flight attendants, (led by apurseron larger aircraft)
o In-Flight security Personnel on some airlines
Ground crew, responsible for operations at airports. Ground crew members include:
http://en.wikipedia.org/wiki/Flight_attendanthttp://en.wikipedia.org/wiki/Purserhttp://en.wikipedia.org/wiki/Flight_attendanthttp://en.wikipedia.org/wiki/Purser -
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o Aerospace and avionics engineers responsible for certifying the aircraft for
flight and management of aircraft maintenance
Aerospace engineers, responsible for airframe, powerplant and
electrical systems maintenance
Avionics engineers responsible for avionics and instruments
maintenance
o Airframe and power plant technicians
o Electric System technicians, responsible for maintenance of electrical
systems
o Avionics technicians, responsible for maintenance of avionics
o Flight Dispatchers
o Baggage Handlers
o Ramp Agents
o Gate Agents
o Ticket agents
o Passenger service agents (such as airline lounge employees)
o Reservation agents, usually (but not always) at facilities outside the airport.
Airlines follow a corporate structure where each broad area of operations (such as
maintenance, flight operations (including flight safety), and passenger service) is
supervised by a vice president. Larger airlines often appoint vice presidents to oversee each
of the airline's hubs as well. Airlines employ lawyers to deal with regulatory procedures
and other administrative tasks.
1.2 Problem of the Study
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Increasing competition from private players
Due to less man power the airlines in Coimbatore international airport are unable to
manage the passenger.
Response towards the passenger by Coimbatore international airport is less because
of limited airlines.
The quality level is low when comparing to other international airports.
Continuous shifts in regulatory environment which has led to the growing
passenger sophistication.
1.3 Aim and Objectives of the Study
The primary aim of this research is to examine the passenger satisfaction levels in
airline sector with special reference to Coimbatore international airport.
To acquire a vibrant knowledge about airline industry and get through awareness
regarding customer satisfaction.
To examine passenger satisfaction in airline industry with reference to Coimbatore
international airport.
To understand and analyze the role of quantity of service in affecting passenger
satisfaction in airline sector in context with Coimbatore international airport.
To delineate the most important current issues surrounding passenger satisfaction.
To assess the passenger satisfaction of service quality of airlines.
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1.4 Scope of the Study
This study includes direct interaction with the passengers and this help us to
know the passenger satisfaction level to great accuracy. This study is of great
importance to the airlines which will know about the passengers preference to
travel in airlines. The airlines will gain information about passengers preference
depending on their response. So, the scope of the study is to achieve passenger
satisfaction.
1.5 Period of study
The study conducted during the period of December - 2011 to April - 2012.
1.6 Research Methodology
Research comprises defining and redefining of problem, collecting, organizing
and evaluating data, making deductions and reaching conclusions.
The study required both primary and secondary data.
1.6.1 Sources of Data
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The data for this study is collected from primary and secondary sources. The
secondary data and the relevant material were collected from the magazines, company
profiles, broachers, etc. The primary data source for the study is the passengers of Airlines
in Coimbatore International Airport.
1.6.2 Primary data
Since primary data is collected at hand it calls for a decision making on research
approaches, Questionnaire method has been used to collect the data. For this project the
datas were collected by Questionnaires.. The main advantages with this primary data's arethat they give more information in greater depth and have greater flexibility.
1.6.3 Secondary data
Secondary data consist of information that already exists somewhere, having been
collected for another purpose. It is obtained more quickly and at a lower cost. Secondary
data provides the necessary information to do the work. Generally the different sources of
secondary data are internal sources, prior research reports, government publications which
provide summary data on demographics, economic, social and other aspects. Periodicals
and books, commercial data and international data are the other sources of secondary data.
The secondary data for this study were collected from different sources like books,
magazines, journals, newspapers and websites.
1.6.4 Sample Size
Here the sample size for this study was 100 questionnaires.
1.7 Data Analysis
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The collected data was analyzed by using both quantitative and qualitative
techniques. Under the qualitative techniques, the collected data was converted into
numerical format in appropriate tables with percentage and diagrams. Each numerical
format was described by using qualitative techniques used in this research
1.8 Tools Used For Data Analysis
As a tool or as a device used for the research a well structured questionnaire is
adopted. The questionnaire consists of closed-ended questions where the respondent is
forced to select an answer from the given choices. Under closed-ended questions there are
multiple choices, so that the RESPONDENTS dont have any problem to answer. By using
the questionnaire, face to face interview were also possible. SPSS and MS-EXCEL are also
used to analyze the primary data. The mathematical tool used in this study is Simple
Percentage analysis.
1.9 Limitations of the Study
Every study has its limit, so does this study the major limitation was the time
constraint. Another limitation of primary data is that they are very much time consuming
and the researcher cannot be sure whether the information received is relevant, accurate,
current and unbiased.We will get only a vague idea about the work. Another limitation of
the study relates with the security of the airport in Coimbatore. Due to the security reason,
Airport authorities cant issue pass. That affects the independence of doing work. So
researcher could only get limited amount of primary data. Hence this research mainly
depends upon secondary data. But secondary data may not always provide all the necessary
data that is required for the project.
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Chapter II
THEORETICAL FRAMEWORK
2.1 Introduction
Aviation sector plays crucial role in moving passengers or goods from one place to
another either it may be domestic or international, due to economic globalization and technical
advancements, the airline industry is facing stiff competition. According to in the industry like
airline, quality of service is significant because providing excellent quality of service to
customers is necessary for the continued existence of the sector. Quality of service in
airline industry is the focal point of satisfaction by travelers, travelers loyalty, and travelers
choice of airline. Therefore, offering better service quality may deliver more customer
satisfaction which will result in attracting more customers and increasing profits in
business. Customer satisfaction is assessed to play a vital role in every business model
especially in service industries such as tourism, hospitality and airlines. The high level of
customer satisfaction will directly leads to high returns by reducing expenditure like marketing,
and word-of-mouth.
It is clearly evident that customers who are happy and delighted will attract
the new customers by word of mouth; this will impact on increase in sales, thus
resulting in profits to the firm. Hence customer satisfaction proves to be an important
aspect in airlines sector. Customer satisfaction derives from assessing customer
perceptions and performance.
2.2 Customer Satisfaction
Customer satisfaction may be described as the notion which customers may encounter
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about the products or services of a specific brand or business firm when the
customer expectations have been reached or surpassed the existence of that particular
goods or service. The satisfaction is an individual's feeling of pleasure or dissatisfaction
obtained from comparing a good's possible outcome in contrast to the customer's demands.
An organization may increase it sales and customer's loyalty by offering excellent
satisfaction by the customer. Therefore customer satisfaction has happened to be one
of the focal point for all business especially those in service industry. Customer
satisfaction is gauged to sustain existing customers and as a result, effectiveness and
growth of business. To maintain customer expectation and customer loyalty in order to gain
higher long-term performance of the company, customer satisfaction is one of the important
factors. Its certain that customer expectation meets the customer satisfaction, this will be
the driving force to build the strong relationship between client and a company andalso this will
directly lead to more and more profitable to the organization. There are two key analysis of
satisfaction, Satisfaction itself a course of action as well as an end results.
Customer satisfaction is constantly the outcome of the observation
processes. Customer satisfaction may be implied as a decision relied on the growing
practice through a distinct goods or service relatively than a business event. Customer
satisfaction may be explained as an individual's complete assessment of the performance ofa product or service till now. Customer satisfaction as a post purchase thoughts framed
through a rational evaluation of the quality that a customer expected to obtain from an
exchange and the intensity of quality the customer notices actually receiving from the
trade. To be specific it is the state of customer perceptions and expectations. Customer
satisfaction is a fundamental factor in improving production process and end user
relationship.
The importance of customer satisfaction and its use for determining the
quality from the Customers outlook has been highlighted by many researchers in airline
industry. Customer contentment is the emotion or outlook of a client towards a goods or
service following it had been consumed. Customer happiness is the significant end result
of endorsement activity, where it operates as a link between various levels of consumer
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purchasing activities.
2.3 Customer Satisfaction in Airline Sector
Airline sector is considered to be major industry. In the year 1988, the sector
contributed $10.2 billion to GDP. The services offered by the industry are at par with the
international standards catering to the needs of both domestic and international
passengers. The airline sector is very significant to the tourism as citizens in the country are
engaged in this sector. Satisfaction of a customer is a purpose of observed quality
and notions of degree to which remarked quality unsuccessful to counterpart
customer expectations. Customers will constantly evaluate the remarked performance
of goods or service with little performance mark. The customers are merely satisfied
and they find it simple to shift when other firm is providing a better cost or package while
the importance of customer satisfaction is highlighted in business where competition is
severe.
The primary objective of airline sector is to provide excellent service and
competency. The excellent service is vital while the number of absolutely contented
customers segment is an important factor as assessed by some analysts for high
profits. A business organization must regularly gauge consumer satisfaction in order to
analyze and identify whether clients were delighted or not. In the airline sector the degree
of customer happiness is plainly recognized off late in the process, whilst the
majority of the customers spent the cash by now.
According to the literature, outstanding service is achieved through
committed and loyal staff. To provide a reasonable level of service and quality stated that
a firms approach should be focused in improving the skills and ensuring efficiency,
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motivation and commitment of the employees. Airline sector may develop the scope of
achievements if they allow its workforce to take individual responsibility and go an
extra mile to make the customers happy. Customer satisfaction is when the consumer is
delighted with the service delivered by the airline sector that meets the client desires, wants
and expects. Airline industry should focus on making customers happy and should allocate
finances on providing excellent customer service.
CHAPTER III
PROFILE OF THE AIRLINES
3.1 COMPANY PROFILE
3.1.1 INDIGO AIRLINES
Indigo Airlines was an American airline headquartered in Chicago, Illinois. It is
generally regarded as the worlds first business jet airline. It was founded in 1997 by
aviation veteran and University of Chicago graduate Matt Anderson; business executive
and Embry-Riddle Aeronautical University alumnus John N. Fenton and McKinsey
consultant and MIT PhD Tom. During its life, its headquarters were at first located in the
Near North side area of Chicago, while later in its life its headquarters were at Chicago
midway Airport.
IndiGo is built for people with things to do, places to be, people to see - who don't
want to waste time, money or energy in the process. By minimizing the cost/time/tension of
air travel, IndiGo opens up a country full of opportunities. With IndiGo, you've got abillion reasons to fly! The IndiGo team uses all of these resources to design processes and
rules that are safe and simple, that make sense, and that cut waste and hassles, which in
turn ensures a uniquely smooth, seamless, precise, gimmick-free customer experience at
fares that are always affordable. IndiGo focuses on doing one thing, and doing it well. Our
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aircraft are brand-new Airbus A320-200s, with a single-class configuration consisting
of 180 passenger seats.
One type of airplane - brand-new Airbus A320s
One type of fare - low
One type of customer service - professional
One way to deal with delays and cancellations - honestly
We believe that we can offer the lowest fares by staying focused, which keeps our costs
down without cutting corners or compromising on things that matter.
3.1.1.1 Citizen's Charter
IndiGo is built for people with things to do, places to be, people to see who dont want to
waste time, money or energy in the process. By minimizing the cost, time and tension of air
travel, IndiGo opens up a country full of opportunities. With IndiGo, youve got a billion
reasons to fly!
IndiGo incorporates the best hardware, software, interface design and personnel
from around the world. The IndiGo team uses all of these resources to design processes and
rules that are safe and simple, that make sense, and that cut waste and hassles, which in
turn ensure a uniquely smooth, seamless, precise, gimmick-free customer experience at
fares that are always affordable.
3.1.1.2 History
Indigoor "individuals on the go", for the first time allowed individual travelers
the ability to reserve and purchase a single seat on a traditional corporate or business jet
which then flew a "scheduled" flight like a traditional airline. Prior to Indigo the only
business jet services available to consumers consisted of jet ownership or charter, both
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expensive options to regular airline travel. Indigo is regarded as the originator of two new
categories of corporate jet air travel service: per seat, high frequency and the public or
commercial corporate jet.
Indigo priced its service between its first city pair Chicago and New York City
close to a so-called unrestricted coach fare. This allowed travelers an affordable travel
option while greatly expanding Indigo's addressable market, growth potential and
investment thesis.
Indigo's inventory was marketed and sold through American Express Travel
Related Services as well as through the American Express Platinum Card program. Indigo
was the first business jet airline to list its seat inventory in major Global Distribution
Systems such as Sabre and Apollo, under the carrier code "I9" which allowed travel agents
easy access to Indigo's services. The Indigo project was also supported by management
consultants McKinsey and Company and was additionally advised by corporate identity
firm Interbrand (an Omnicom company), public accountants and business advisors Arthur
Anderson, public relations firm The Dilenschneider Group and investment bank and
financial advisory firm Merill Lynch and Company.
Indigo management also argued that the company helped advance the state ofgeneral aviation security and pointed to its advanced security procedures that were unique
to the industry.
Indigo employed its own security personnel and was the first jet charter company to
operate sterile flights between general aviation, non-airline facilities. Indigo customers,
employees and vendors cooperated with comprehensive identity, background and screening
procedures that were unprecedented in the private jet industry. Indigo submitted to
numerous TSA security audits and was fully approved by relevant U.S. Government
agencies. Comprehensive general and private aviation security continues to be an
unresolved public policy issues.
By 2004, Indigo had voluntarily idled its operations after challenges in securing
additional capitalization. The Indigo concept continues to resonate strongly with the
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traveling public and in 2005 the Net jets company, backed by Warren Buffett's, Berkshire
Hathaway announced its intention to begin scheduled business jet service between
Chicago, New York and Los Angeles. Other projects mimicking the Indigo business model
include Geneva, Switzerland based Club Airways, started by World Economic Forum
founders the Schwab family. Other notable ventures borrowing on the Indigo "per seat"
inventory, distribution and pricing strategy include the Dayjet company, Linear Air and
various jet membership programs offering "shared per seat charter" services. Several North
Atlantic services (sometimes referred to as the "Indigo of the North Atlantic") also directly
applied the Indigo concept of a commercial corporate jet but in larger traditional airline
aircraft and included Maxjet, Eos and Silver jet. In 2008, a new company called Green jets
began non-scheduled per-seat or shared-ride private jet service between major eastern US
metropolitan markets.
3.1.1.3 Fleet
Indigo's initial fleet consisted of four French-built Dassalut Falcon jets fitted with:
large executive style leather seats; a full hot galley; private bathroom; and laptop power
outlets. Indigo was headquartered in Chicago, Illinois at Chicago Midway International
Airport in the former Ameritech corporate hangar facilities. This was a comprehensive,
220,000-square-foot (20,000 m2) co-located hangar, office complex, private passenger
terminal and maintenance facility.
Indigo was a fully vertically integrated aviation company and fully owned,
employed and controlled its own aircraft fleet, pilots, dispatchers and maintenance services.
The company operated as a Federal Aviation Administration FAR 135 commercial
operator and additionally was certified by the United States Department of Transportation
under parts 41101 and 380 as a public charter operator. Indigo was the first business jet
commercial operator to receive an additional DOT fitness approval and was granted a
Certificate of Public Convenience and Necessity.
As part of its overall planning and growth objectives, Indigo early in its initial
operations distributed a request for proposal to several global aerospace manufacturers for
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a next generation regional business jet to eventually replace its initial aircraft. Brazilian
manufacturer Embraer both embraced Indigo's business model and responded strongly to
the RFP in its efforts to introduce its new corporate shuttle aircraft, the "Legacy" jet. Indigo
was the first U.S. certified commercial operator of the Legacy and launched service with
this new, environmentally advanced stage 4 aircraft in 2003 in a 16-seat all business-class
service.
3.1.2 JET AIRWAYS
Jet Airways is the largest Indian airline based out of Mumbai, Maharashtra. It
operates over 400 flights daily to 76 destinations worldwide. Its main hub is Mumbai, with
secondary hubs at Delhi, Kolkata, Chennai, Cochin, Ahmedabad, and Bengaluru. It has an
international hub at Brussels Airport, Belgium. Jet Airways is owned by Naresh Goyal.
3.1.2.1 History
Early years
Jet Airways was incorporated as an air taxi operator on 1 April 1992. It started
commercial operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft.
In January 1994 a change in the law enabled Jet Airways to apply for scheduled airline
status, which was granted on 4 January 1995. It began international operations from
Chennai to Colombo in March 2004. The company is listed on the Bombay Stock
Exchange, but 80% of its stock is controlled by Naresh Goyal (through his ownership of
Jets parent company, Tailwinds). It has 10,017 employees (as at March 2007).
Naresh Goyal who already owned Jet Air (Private) Limited, which provided sales
and marketing for foreign airlines in India set up Jet Airways as a full-service scheduled
airline to compete against state-owned Indian Airlines. Indian Airlines had enjoyed a
monopoly in the domestic market between 1953, when all major Indian air transport
providers were nationalized under the Air Corporations Act (1953), and January 1994,
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when the Air Corporations Act was repealed, following which Jet Airways received
scheduled airline status.
Air Sahara buyout
In January 2006 Jet Airways announced that it would buy Air Sahara for US$500
million in an all-cash deal, making it the biggest takeover in Indian aviation history. It
would have resulted in the country's largest airline but the deal fell through in June 2006.
On 12 April 2007 Jet Airways agreed to buy out Air Sahara for INR14.5 billion
(US$340 million). Air Sahara was renamed JetLite, and was marketed between a low-cost
carrier and a full service airline. In August 2008 Jet Airways announced its plans to
completely integrate JetLite into Jet Airways.
Present
In October 2008 Jet Airways laid off 1,900 of its employees, resulting in the largest
lay-off in the history of Indian aviation. However the employees were later asked to return
to work; Civil Aviation Minister Praful Patel said that the management reviewed its
decision after he analyzed the decision with them.
In October 2008 Jet Airways and rival Kingfisher Airlines announced an alliance
which primarily includes an agreement on code-sharing on both domestic and international
flights, joint fuel management to reduce expenses, common ground handling, and joint
utilisation of crew and sharing of similar frequent flier programmes.
On 8 May 2009 Jet Airways launched its low-cost brand, Jet Konnect. The decision
to launch a new brand instead of expanding the JetLite network was taken after considering
the regulatory delays involved in transferring aircraft from Jet Airways to JetLite, as the
two have different operator codes. The brand was launched on sectors that had 50% or less
load factor with the aim of increasing it to 70% and above. Jet officials said that the brand
would cease to exist once the demand for the regular Jet Airways increases.
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According to a PTI report, for the third quarter of 2010, Jet Airways (Jet+JetLite)
had a market share of 26.9% in terms of passengers carried, thus making it a market leader
in India, followed by Kingfisher Airlines with 19.9%.
3.1.2.2 Subsidiaries
JetLite
JetLite was a wholly owned subsidiary of Jet Airways. It was established as Sahara
Airlines on 20 September 1991 and began operations on 3 December 1993 with two
Boeing 737-200 aircraft. Initially services were primarily concentrated in the northern
sectors of India, keeping Delhi as its base, and then operations were extended to cover all
the country. Sahara Airlines was rebranded as Air Sahara on 2 October 2000. On 12 April
2007 Jet Airways took over Air Sahara and on 16 April 2007 Air Sahara was renamed as
JetLite. JetLite operated a fleet of mixed ownedleased Boeing 737 next generation aircraft
and Bombardier CRJ-200 ER. JetLite ceased operations on 25 March, 2012 after merger
with Jet Konnect.
Jet Konnect
Jet Konnect is the low-cost brand of India-based Jet Airways. It was launched on 8
May 2009, and shares the same airline designation as Jet Airways. It operates a mixed fleet
of ATR 72-500s and Boeing 737-800.
The rationale for launching Jet Airways Konnect was to close down loss-making
routes and divert the planes to more profitable routes with higher passenger load factor. Jet
already ran a low-cost airline named JetLite. According to Jet Airways, the decision to
launch a low-cost brand instead of expanding the existing JetLite was taken to avoid the
regulatory delays associated with moving excess aircraft and assets from Jet Airways to
JetLite, which have separate operating codes. Jet Konnect offers a no frills flight where
meals and other refreshments have to be purchased on board. To identify if the flight is a
full service or Konnect the flight numbers for Konnect are in the series 9W 2000-2999. Jet
Airways merged the JetLite brand into Jet Konnect on 25 March 2012.
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3.1.2.3 Fleet
Jet Airways Boeing 777-300 ER at San Francisco International Airport.
The Boeing customer code for Jet Airways is 5R. The airline is known forconstantly maintaining its average fleet age below 10 years with regular phasing out of
aircraft which are over 10 years of age.
As of May 2011, the Jet Airways fleet consists of the following aircraft with an
average age of 5.4 years:
Table No: 3.1.2.3.1
Jet Airways Fleet
AircraftIn
ServiceOrders
PassengersNotes
P J Y Total
Airbus A330-200 12 50 30 190 226
2 owned
10 dry leased
0 18 236 254
Airbus A330-300 5 TBA
All leased from Intrepid Aviation
Group
Deliveries starting 2011
ATR 72-500 20 0 0 62 62 6 owned
14 dry leased0 0 68 68
Boeing 737-700 11 0 16 102 1183 owned
8 dry leased
Boeing 737-800 45 270 16 138 154 12 owned
34 dry leased0 8 162 170Boeing 737-900 2 0 28 138 166 Both owned
Boeing 777-
300ER
10 2 8 30 274 312 1 owned
8 dry leased
5 re-leased toThai Airways
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International
Boeing 787-8 10 TBA Deliveries starting 2014
Total 100 49
Source: www.Jetaiways.com
3.1.2.4 Incidents and Accidents
On 1 July 2007, Jet Airways Flight 3307, an ATR 72-212A (registered VT-JCE)
which was flying on the Bhopal-Indore route was involved in an accident which was
caused by a storm. There were no fatalities amongst the 45 passengers and 4 crew on
board, however the aircraft suffered damages beyond repair.
3.1.3 KINGFISHER AIRLINES
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Kingfisher Airlines Limited is an airline group based in India. Its head office is in
Andheri (East), Mumbai and Registered Office in UB city, Banglore. Kingfisher Airlines,
through its parent company United Breweries Group, has a 50% stake in low cost
Kingfisher Red. The airline has been facing financial issues for many years. Until
December 2011, Kingfisher Airlines had the second largest share in India's domestic air
travel market. However due to the severe financial crisis faced by the airline, it has the fifth
largest market share currently, only above GoAir.
Kingfisher Airlines was the holder (along with only seven other airlines) of the 5-
star rating by Skytrax along with Cathay Pacific, Qatar Airways, Asiana Airlines, Malaysia
Airlines, Singapore Airlines, and Hainan Airlines. However, in light of the current turmoil
of the airlines, Skytrax ranking for Kingfisher Airlines has now been suspended. Kingfisheroperates 120 daily flights with regional and long-haul international services. In May 2009,
Kingfisher Airlines carried more than 1 million passengers, giving it the highest market
share among airlines in India. Kingfisher also won the Skytrax award for India's best airline
of the year 2011.
Kingfisher Airlines is also the sponsor of F1 racing outfit, Force India, which Vijay Mallya
also owns.
3.1.3.1 History
Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based
United Breweries Group. The airline started commercial operations in 9 May 2005 with a
fleet of four new Airbus A320-200s operating a flight from Mumbai to Delhi. It started its
international operations on 3 September 2008 by connecting Bengaluru with London.
The airline is currently going through some bankruptcy problems, forcing the
airline to ground many destinations and aircraft.
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3.1.3.2 Financial difficulties
Ever since the airline commenced operations in 2005, it has been reporting losses.
After acquiring Air Deccan, Kingfisher suffered a loss of over 1,000 crore (US$199.5
million) for three consecutive years. By early 2012, the airline accumulated losses of over
7,000 crore (US$1.4 billion) with half of its fleet grounded and several members of its staff
going on strike. Kingfisher's position in top Indian airlines on the basis of market share had
slipped to 5 from 2 because of the crisis. As response, Dr. Vijay Mallya called on the
Chairman of Central Board of Excise and Customs and offered to pay up the dues by 13
December 2011. The Kingfisher bank accounts were unfrozen on 14 December 2011. Due
non-payment, several Kingfisher's vendors had filed winding up petition with the High
Court. As on November 2011, winding up petition of seven creditors was pending beforethe Banglore High Court. In the past Lufthansa Technik and Bharat Petroleum Corporation
Limited (BPCL) had also filed winding up petition against Kingfisher Airlines.
During late February 2012, Kingfisher Airlines started to sink into a fresh crisis.
Several flights were cancelled and aircraft were grounded. The cash-strapped airline
claimed that the disruptions will continue for four days due to unexpected events including
bird strikes which rendered aircraft out of service. The airline shut down most international
short-haul operations and also temporarily closed bookings. Out of the 64 aircraft, only 22
were known to be operational by 20 February. With this, Kingfisher's market share clearly
dropped to 11.3%. The cancellation of the flights was accompanied by a 13.5% drop in the
stocks of the company on 20 February 2012. The CEO of the airlines, Sanjay Agarwal was
summoned by the Directorate General of Civil Aviation to explain the disruptions of the
operations.
In March 2012, the airline was suspended by the International Air Transport
Association from using its inter-airline fund clearing system, the suspension means the
airline will have to deal directly with other airlines when sharing revenue on services.
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Due to the ongoing financial crisis, an Airbus A330-200 aircraft was impounded at
London Heathrow Airport in the United Kingdom under Court Orders due to unpaid fees to
aircraft leasing companies and RBS.
3.1.3.3 Fleet
Current
Due to the financial problems of Kingfisher Airlines, the fleet was drastically
reduced from 63 to 23. A majority of the fleet was repossessed by lessons in March 2012.
Although Airbus has not cancelled/suspended the orders yet, but it is unlikely that
Kingfisher Airlines will start taking the deliveries in near future. The Kingfisher Airlines
fleet consists of the following aircraft (as of April 2012):
Table No: 3.1.3.3.1
Kingfisher Airlines Fleet
Aircraft In Fleet Notes
Airbus A319-133 1 VIP for UB Group
Airbus A320-232 5
Airbus A321-232 1
Airbus A330-223 1
ATR 42-500 2 Dry leased
ATR 72-500 12
Boeing 727-044 1 VIP for UB Group
Total 23
Pre-2012 Fleet
Kingfisher Airlines' fleet mainly consisted of ATR 42, ATR 72 and Airbus A320
family aircraft for domestic and short haul services and Airbus A330-200s for international
long-haul services. The average age of its fleet as of January 2009 was 2.3 years. All ATR's
and a few aircraft from the A320 family are used for Kingfisher Red service.
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Table No: 3.1.3.3.2
3.1.3.4 Cargo
Kingfisher Xpress is a new Door-to-Door cargo delivery service from Kingfisher
Airlines. Kingfisher Xpress same day service will be India's first and only same day
delivery by air service.
3.1.3.5 Accidents and Incidents
On 10 November 2009, Flight 4124 operated by ATR 72-212R VT-KAC, skidded
off the runway after landing at Chatrapathi Shivaji International Airport. The aircraft
Kingfisher Airlines Fleet
Aircraft Total Orders Options
Passengers
NotesP Y Total
Airbus A319-
1003 0 144 144 All dry-leased
Airbus A320-
200
10
67
20 114 134 11 dry-leased
Deliveries were throughout up
until 2016
3 0 174 174
8 0 180 180
Airbus A321-
200
6
32 119 1512 dry leased
2 0 199 199
Airbus A330-
2004 15 30 187 217
Deliveries were throughout up
until 2015
Airbus A350-
800 5 TBA Deliveries were planned: 2015
Airbus A380-
800 5 5 0 0 800 Deliveries were planned: 2014
ATR 42-500 2 0 48 48 All dry leased
ATR 72-50017
- 200 66 66
8 0 72 72
Total 63 92 25
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suffered substantial damage, but all 46 passengers and crew escaped unharmed. In
November 2010, the Directorate General of Civil Aviation released its final report into the
accident. It revealed that the cause of the accident was pilot error, with the aircraft landing
at too high a speed and too far down Runway 27A, which was the designation given to
Runway 27 whilst it was being operated at a reduced length due to the closure of Runway
14/32 for maintenance.
3.1.4 AIR INDIA
Air India is the flag carrier airline of India. It is part of the government of India
owned Air India Limited (AIL). The airline operates a fleet of Airbus and Boeing aircraft
serving Asia, Europe and North America. Its corporate office is located at the Air India
Building at Nariman point in South Mumbai. Air India has two major domestic hubs at
Indira Gandhi International Airport and Chatrapathi Shivaji International Airport. An
international hub at Dubai International Airport is currently being planned.
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Air India has the third largest share in India's domestic air travel market, behind Jet
Airways and IndiGo. Following its merger with Indian, Air India has faced multiple
problems, including escalating financial losses, discontent amongst employees, and poor
customer service. Between September 2007 and May 2011, Air India's domestic market
share declined from 19.2% to 14%, primarily due to stiff competition from private Indian
carriers. In August 2011, Air India's invitation to join Star Alliance was suspended due to
its failure to meet the minimum standards for the membership. In October 2011, talks
between the airline and Star Alliance have resumed. In April 2012, the Indian government
granted another bailout package to Air India, including Rs300 billion ($5.8 billion) of
subsidies.
3.1.4.1 History
Early years
Air India was founded by J. R. D. Tata in July 1932 as Tata Airlines, a division of
Tata Sons Ltd. (now Tata Group). On 15 October 1932, J. R. D. Tata flew a single-engine
De Havilland Puss Moth carrying air mail (postal mail of Imperical Aiways) from
Karachi's Drigh Road Aerodrome to Bombay's Juhu Airstrip via Ahmedabad. The aircraft
continued to Madras via Bellary piloted by former Royal Air Force pilot Nevill Vintcent.In 1932 Air India was based out of a hut with a palm thatched roof at Juhu Aerodrome and
had 1 pilot and 2 apprentice mechanics along with 2 piston engined aircraft, one Puss Moth
and one Leopard Moth aircraft.
Early 1990s
In 1993, Air India took delivery of the flagship of its fleet when the first Boeing
747-400 named Konark (registered VT-ESM) made history by operating the first non-stop
flight between New York City and Delhi. In 1994 the airline was registered as Air India
Ltd. In 1996, the airline inaugurated service to its second US gateway at OHare
International Airport in Chicago. In 1999, the airline opened its dedicated Terminal 2-C at
the renamed Chatrapathi Shivaji International Airport in Mumbai.
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2000 Present
In 2000, Air India introduced services to Shanghai and to its third US gateway at
Newark Liberty International Airport in Newark. In May 2004, Air India launched a
wholly owned low cost airline called Air-India Express. Air India Express connecting cities
in India with the Middle East, Southeast Asia and the Subcontinent. In 2004 Air India
launched flights to its fourth US gateway at Los Angeles International Airport in Los
Angeles (which has since been terminated) and expanded its international routes to include
flights from Ahmedabad, Amritsar, Banglore and Hyderabad.
On 1 December 2009, Air India introduced services to its fifth US gateway at
Washington Dulles International Airport in Washington D.C., accessed via a stopover at
JFK Airport in New York City. This service has been terminated.
3.1.4.2 Merger with Indian Airlines
In 2007, the Government of India announced that Air India would be merged with
Indian Airlines. As part of the merger process, a new company called the National Aviation
Company of India Limited (NACIL) was established, into which both Air India (along with
Air India Express) and Indian Airlines (along with Alliance Air) will be merged.
On 27 February 2011, Air India and Indian Airlines merged along with their
subsidiaries to form Air India Limited.
3.1.4.3 Financial crisis
Around 20062007, the airlines began showing signs of financial distress. The
combined losses for Air India and Indian in 2006-07 were 770 crores ( 7.7 billion). After
the merger of the airlines, this went up to 7,200 crores ( 72 billion) by March 2009. This
was followed by restructuring plans which are still in progress. In July 2009, SBI Capital
Markets India Ltd was appointed to prepare a road map for the recovery of the airline. The
carrier sold three Airbus A300 and one Boeing 747-300 M in March 2009 for $18.75
million to survive the financial crunch.
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As of March 2011, Air India has accumulated a debt of Rs. 42,570 crore
(approximately $10 billion) and an operating loss of Rs. 22,000 crore, and is seeking Rs.
42,920 crore from the government. For the past three months (June, July, August 2011), the
carrier has been missing salary payments and interest payments and Moodys Investor
Service has warned that missing payments by Air India to creditors, such as the State Bank
of India, will negatively affect the credit ratings of those banks. A report by the
Comptroller and Auditor General (CAG) blamed the decision to buy 111 new planes as one
of the major causes of the debt troubles in Air India; in addition it blamed on the ill timed
merger with Indian Airlines as well. Due to high fuel and loan costs, Indian government
has already pumped 32 billion rupees into Air India since April 2009 and in March 2012
government bailed out Air India Ltd. with 67.5 billion rupees ($1.4 billion) which the
amount almost double of the federal government has spent on new hospitals over the past
three years.
Air India's corporate headquarters is located at the Air India Building at Nariman
Point in South Mumbai. The airline moved there in 1970. The Air India Building also
serves as a regional office for Indian.
Return to profitability plans
The new Chairman and Managing director wants to change the order of some of the
111 planes ordered in 2006 to get narrow-body aircraft instead of the wide-body aircraft.
3.1.4.4 Subsidiaries
Air India Cargo
In 1954, Air India Cargo started its freighter operations with a Douglas DC-3
Dakota aircraft, giving Air India the distinction of being the first Asian airline to operate
freighters. The airline operates cargo flights to many destinations. The airline also hasground truck-transportation arrangements on select destinations.
A member of INTERNATIONAL AIR TRANSPORT ASSOCIATION, Air India
carries all types of cargo including dangerous goods (hazardous materials) and live
animals, provided such shipments are tendered according to INTERNATIONAL AIR
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TRANSPORT ASSOCIATION Dangerous Goods Regulations and INTERNATIONAL
AIR TRANSPORT ASSOCIATION Live Animals Regulations.
At the warehouse in Mumbai, Air India has developed a system of inventory
management for cargo handling of import/export functions. This takes care of the entire
management of cargo, supports Electronic Data Interface (EDI) messages with Indian
Customs and replaces to a great extent existing paper correspondence between Customs,
Airlines, and the custodians. This also replaces manual handling and binning of cargo at the
warehouse in Mumbai by Air India.
Air India Express
Air India Express is the airline's low-cost subsidiary which was established in 2005
during the aviation boom in India. It operates scheduled passenger services primarily to the
Persian Gulf and South East Asia. Air India Express is currently the only airline in Air
India Limited which posts profits. It operates a fleet of Next Generation Boeing 737-800
aircraft. Cochin International Airport is the main hub of the airline from which it has
connections to almost all the Gulf countries.
3.1.4.5 Fleet
The Boeing customer code for Air India is 37, meaning a model name of, for example, a
747-437 (an Air India747-400). As of May 2010, the average age of the Air India fleet is
9.5 years.
New aircraft orders
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On 11 January 2006, Air India announced an order for fifty eight jets - eight Boeing
777-200LR World liners, twenty-three Boeing 777-300ER and twenty seven
Boeing 787-8 Dream liners
The airlines received its first Boeing 777-200LR aircraft on 26 July 2007 and
Boeing 777-300ER on 10 October 2007.
In April 2010, the airline has ordered three Boeing 777-300ERs.
Air India expects to get its first Boeing 787 Dreamliner in at the end of May 2012.
3.1.4.6 Accidents and incidents
Ten Air India flights have fatally crashed, including those due to terrorist attacks.
Air India has a record of 6.82 fatal events per million flights.
1950s
On 3 November 1950 Air India Flight 245 Malabar Princess a Lockheed L-749
Constellation (registered VT-CQP) carrying 48 people (40 passengers and 8 crew),
flying on the Bombay-Cairo-Geneva-London route, crashed onMony Blanc,
France, killing all on board.
On 11 April 1955 Kashmir princess a Lockheed L-749A Constellation registered
(VT-DEP) carrying 19 people (11 passengers and 8 crew) was bombed in midair,
killing 16 of the 19 on board.
On 19 July 1959 Rani of Aera a Lockheed L-1049G super Constellation (registered
VT-DIN) carrying 46 people (39 passengers and 7 crew) approached Santacruz
Airport in conditions of poor visibility due to rain. The captain was using an
altimeter with the barometric pressure set at 29.92". An overshoot was delayed and
the aircraft crashed and suffered damage beyond repair. There were no fatalities.
The Air India Memorial in Toronto, Canada dedicated to the victims of Air India Flight
182
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1960s
On 24 January 1966 Air India Flight 101 Kanchenjunga a Boeing 707-420
(registered VT-DMN) carrying 117 people (106 passengers and 11 crew) crashed
on Mont Blanc, France, on the border between France and Italy, killing all on
board. Among the dead was the noted Indian scientist, Homi J. Bhaba.
1970s
On 1 January 1978 Air India Flight 855 Emperor Ashoka a Boeing 747-237B
(registered VT-EBD) crashed into the Arabian Sea after takeoff from Sahara
International Airport (now Chatrapathi Shivaji International Airport) in Mumbai,
killing all on board (213 persons; 190 passengers, 23 crew).
1980s
On 21 June 1982 Air India Flight 403GouriShankar a Boeing 707-420 (registered
VT-DJJ) carrying 99 passengers and 12 crew from Kuala Lumpur International
Airport via Madras (now Chennai) crashed at Sahara International Airport after a
heavy landing during a rainstorm. The fuselage exploded after starting a late go-
around. Two crew members and 15 passengers were killed.
On 23 June 1985 Air India Flight 182 Emperor Kanishka a Boeing 747-347B
(registered VT-EFO) was blown up in mid-air, mid-flight by a suitcase-bomb
planted by Babbar Kalsa Terrorists allegedly as revenge for the Indian
Government's operation on the Golden Temple on June 1984. The flight was on the
first leg on its Montreal-London-Delhi-Bombay flight when it exploded off the
coast of Cork, Ireland. The plane crashed into the Atlantic Ocean. All 307
passengers and 22 crew on board died. After this incident Air India suspended all
services to Montreal.
1990s
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On 24 December 1999, Friday Indian Airlines Flight 184 (VT-EDW) had 178
passengers on board (most of whom were Indian nationals) that were coming to
India after vacationing in Nepal was hijacked, shortly after the aircraft entered
Indian airspace at about 17:30 Indian Standard Time. The aircraft was hijacked by
gunmen. After touching down in Amritsar, Lahore and Dubai, the hijackers forced
the aircraft to land in Kandhahar, Afghanistan. The hijackers released 27 of 176
passengers in Dubai but fatally stabbed one and wounded several others. The
hijacking lasted for seven days and ended after India released three militants
Mushtaq Ahmed Zargar, Ahmed Omar Saeed Sheikh and Maulana Masood Azhar.
2000s
On 4 September 2009, Air India Flight 829 Konarka Boeing 747-437 (registered
VT-ESM) flying on the Mumbai-Riyadh route caught fire at Chhatrapati Shivaji
International Airport. The fire started in number one engine while the aircraft was
taxing to Runway 27 for take-off. An emergency evacuation was carried out with
no injuries among the 228 people (213 passengers and 15 crew) on board.
3.1.5 SPICE JET
Spice Jet is a low-cost airline headquartered in Gurgaon, India. It began service in
May 2005 and by 2008, it was India's second-largest low-cost airline in terms of market
share. Spice Jet was voted as the best low-cost airline in South Asia and Central Asia
region by Skytrax in 2007 and 2009. Spice Jet was reported to be far ahead of other low-
cost carriers in India like IndiGo, JetLite, Kingfisher Red and GoAirand also full service
carriers like Jet Airways and Kingfisher.
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However, services have been riddled by delays. Some passengers have been left
stranded after repeated delay announcements followed by abrupt cancellations. According
to reports, more than 17,480 passengers of Spice Jet have been affected by delays of more
than two hours in January 2011 alone. That Spice jet is the worst hit among low cost
carriers is exemplified by the fact that this number stays unabated at a staggering 15,629 in
July 2011.
In 2012, the airline again hit the headlines for its debacle in the disabled passenger
handling issue for which it has been issued a notice by the Supreme Court.
3.1.5.1 History
Early years
MODILUFT logo
The origins of Spice Jet track back to February 1993 when ModiLuft, one of
India's first post-deregulation airlines that was launched by the Indian industrialist S K
Modi, in technical partnership with the German flag carrierLufthansa. The airline project
was started in February, 1993 by S K Modi, Ashutosh Dayal Sharma and Kanwar K S
Jamwal and on 5 May 1993 took the first flight from New Delhi to Mumbai. The airline
actually started operations within three months of its conception - a record of kinds in
itself. It maintained very high standards in flight safety, ground maintenance and on-time
performance, owing to a strong support from Lufthansa AG. The team consisting of Indian
and German technical staff and pilots was built by Kanwar K S Jamwal, General Manager
Projects, a thorough professional himself, was responsible for setting up the Airline and its
operations. Captain R L. Kapur and Retired First officer Cdr. S. Raj along with a team of
able Airline experts helped further, in meeting the highest standards in the aviation industry
and in conforming to the Indian Aircraft Rules set by the Director General Civil Aviation.
The first two batches of the cabin crew were extensively trained at the flight crew training
facility at Frankfurt. Modiluft was perhaps the only Airline to achieve an average aircraft
utilization of a minimum 12 hours per day in Indian Skies. This was no ordinary feat, as it
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required constant supervision, resources and a team of through professionals at every level
to make this possible.
3.1.5.2 Emergence as Spice Jet
ModiLuft was the only airline in India to fly a three class configuration compared
to others Airlines, It had a First, Business and an Economy Class and an incident free track
record of flying. It used Boeing 737-200 Aircraft leased from Lufthansa. ModiLuft did not
last very long specially because the business parity of the German and Indian partners was
not the same and problems arose. Then the cooperation was broken off and ModiLuft
acquired Boeing 737-400 aircraft to replace the 737-200s from Air U K, but the future of
ModiLuft was already sealed and the airline ceased operations in 1996. However, the air-
operating certificate (AOC) of ModiLuft did not lapse and the airline due to lack of funds
changed hands and renamed Royal Airways. Thus, was born Spice Jet following the low
cost model. Spice Jet leased 3 Boeing 737-800 Next Generation jet aircraft. Spice Jet chose
to buy in modern Boeing NGs after an year long research and study. On March 7, 2005, the
Airports Authority of India approved three overnight parking slots (for aircraft) to Spice
Jet, with two in Delhi and one in Mumbai. They announced that flights will commence in
May after the first of the 30 Boeing 737-800 aircraft arrive in April. Spice Jet opened
bookings on May 18, 2005 and results followed immediately as over 37,000 were booked
out in just one day, setting a new record in the Asian continent. Red Hot Special Fares were
introduced ranging from 99 (US$1.98) to 799 (US$15.94). The first flight was flagged
off by the Union Minister of Civil Aviation, Shri. Praful Patel. The first Boeing 737-800
aircraft left Delhi for Mumbai via Ahmedabad on May 24, 2005. It was very successful and
by 2008, it was India's second-largest low-cost airline in terms of market share. On 15 July
2008 billionaire Wilbur Ross suggested he would invest 345 crore (US$68.83 million) in
the airline. Indian media baron Kalanidhi Maran acquired 37.7% in the business in June
2010. After completing 5 years of flying, Spice Jet was allowed to commence international
flights by the Airports Authority of India on September 7, 2010. Spice Jet launched flights
from Delhi to Kathmandu and Chennai to Colombo. The first international flight took off
on October 7, 2010 from the Delhi airport. On December 9, 2010, Bombardier Aerospace
announced that Spice Jet placed a firm order for 15 Q400 NextGen turboprop airliners and
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has also placed an option to buy another 15 of those. Spice Jet used their fleet of Q400's for
short-haul operations.
3.1.5.3 Fleet
Table No: 3.1.5.3.1
Spice Jet fleet
AircraftIn
ServiceOrders Options
Passengers
(Economy)Notes
Boeing 737-800 26 21 189
15 dry leased, 11 owned
New deliveries since
December 2010
Boeing 737-900ER 6 212
Bombardier Dash 8
Q4007 8 15 78
New deliveries since
August 2011
Total 39 29 15
3.1.5.4 Spice Jet Cargo
Along with passenger services, Spice Jet also offers cargo services on the same
flight. The service is available on flights connecting Ahmedabad, Agartala, Bagdogra,
Bangalore, Chennai, Coimbatore, Delhi, Goa, Guwahati, Hyderabad, Jaipur, Kochi,
Kolkata, Madurai, Mumbai, Pune and Visakhapatnam. Between 2 to 3.5 tons of cargo is
ferried on each flight ensuring maximum utilization of the aircraft.
3.1.5.5 Incidents
1. On the evening of September 8, 2010 at around 06:40 PM IST, the pilots of flight
SG 219 noticed fire on one of the engines while taxiing towards the runway on
Delhi's Indira Gandhi International Airport. The plane called for emergency
services and the problem was fixed. The plane took off at 08:20 PM with all the
passengers safe. However, just 15 minutes into the flight, the pilots reported a steep
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fall in cabin pressure and made an emergency landing back at the same airport. All
the passengers were safe and the plane was grounded for repairs.
2. On February 20, 2012, a lady named Jeeja Ghosh - a teacher at the Indian Institute
ofCerebral Palsy in Kolkata was forcefully offloaded from a flight to Goa. Though
a frequent air traveler, the lady was forced to stay back because the pilot - Utprabh
Tiwari - claimed that she wasn't fit to fly even though the Spice Jet rules say that
disabled people can fly. Jeeja issued a complaint against the pilot and claimed that
action be taken since the entire differently-abled community was at stake. The
airline later relented to the demand and issued a statement apologizing for the
inconvenience caused to the passenger and that the issue will be taken seriously.
Notwithstanding, Ghosh filed a plea with the apex court. Supreme Court has issued
a notice to Spice Jet for causing this mental trauma to a differently-abled woman.
Ghosh claimed that pilots like that do not deserve to hold the job and be suspended.
3.1.6 SILKAIR
SilkAir (Singapore) Private Limited (Chinese: Shngn Hngkng) is an airline
based in Singapore. It is a wholly owned subsidiary of Singapore Airlines and operates
scheduled passenger services from Singapore to 31 cities in Southeast Asia, South Asia and
China. It has its head office on the fifth storey of Super hub 1. As the regional wing of
Singapore Airlines, it serves 31 out of 50 short-haul destinations in the Singapore Airlines
Group network, and flew 1.56 million passengers in 2006. It made a profit ofS$30 million,
as turnover rose 20.4% to $415 million.
As of 31 March 2010, SilkAir employs 278 staff.
3.1.6.1 History
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The airline had its roots as a regional air-charter company in the form of Trade
winds Charters, formed in 1976, and using planes predominantly leased from parent
company Singapore Airlines serving leisure destinations. Scheduled services were
introduced as Trade winds Airlines on 21 February 1989, when it leased McDonnell
Douglas MD-87 airplanes for services to six destinations, namely Bandar Seri Begawan,
Pattaya, Phuket, Hat Yai and Kuantan from Singapore's Changi Airport and Tioman from
Singapore's Seletar Airport. As the carrier matured, regional business destinations such as
Jakarta, Phnom Penh and Yangon were added to its network, thereby broadening the
airline's appeal beyond the holiday-maker to include the business traveler. SilkAirA319-
100 at Singapore Changi Airport, with a Singapore Airlines (parent company) Boeing 777
in the background.
A major marketing overhaul was started in 1991, culminating on 1 April 1992, by
giving the airline its present name and logo as a new corporate identity. The re-branded
airline utilized up to six of the new Boeing 737-300s introduced just a year earlier. The
mid-1990s saw two Airbus A310-200 aircraft in use and the expansion of services to India
as well as mainland China. It was the first Asian carrier to offer handheld portable video-
on-demand (VOD) in-flight entertainment in the form of theDigEplayer5500, available on
flights to selected countries.
3.1.6.2 Fleet
SilkAir Airbus A320 at Davao International Airport,Philippines
SilkAir began operations with 2 leased McDonnell Douglas MD-87 aircraft in
1989, before investing in its own fleet of six Boeing 737-300s, the first of which began
operations in 1991. It operated two Airbus A310-200s for a brief period from 1993 to 1995
before they were transferred to Singapore Airlines, and two Fokker F70 from 1995 to 2000.
It began replacing its Boeing fleet with Airbus aircraft when the first Airbus A320-200
arrived in 1998, and retired all Boeing aircraft a year later. On 20 December 2006, SilkAir
signed an agreement to purchase 11 Airbus A320-200 aircraft with nine more on option.
These aircraft will be delivered between 2009-2012.
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The SilkAir fleet consists of the following aircraft (as of 29 February 2012)
Table No: 3.1.6.2.1
SilkAir Fleet
AircraftIn
ServiceOrders Options
Passengers
J Y Total
Airbus
A319-
100
1
12 106 118
2 8 112 120
3 8 120 128
Airbus
A320-200
5
4 4
16 126 142
9 12 138 150
Total 20 4 4
3.1.6.3 Incidents and accidents
On 19 December 1997, SilkAir Flight 185, operated by a Boeing 737-300 and
piloted by Captain Tsu Way Ming, plunged into the Musi Riverin Sumatra during a routine
flight from Jakarta to Singapore, killing all 104 people on board. The crash was
investigated by various groups, with different results. The Indonesian NTSC, who were
lead investigators, stated that they were unable to determine the cause, while the U.S.
NTSB concluded that the crash resulted from an intentional act by a pilot, most likely the
captain.
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3.1.7 AIR ARABIA
Air Arabia is a low-cost airline with its head office in the Sharjah Freight Center,
Sharjah International Airport, in Sharjah, United Arab Emirates.
The airline is the first and largest low cost airline in the Middle East, Air Arabia
operates scheduled services to 46 destinations in the Middle East,North Africa, the Indian
subcontinent, Central Asia and Europe to 22 countries from Sharjah, 11 destinations in 10
countries from Casablanca and 5 destinations in 5 countries from Alexandria.
Its main base is Sharjah International Airport where it functions as a low cost
conduit base, similar to low cost airport bases in Europe such a