1. PRESENTED BY: SIDDHARTH AGRAHARI [Enrolment number : 010401111 of 2012-2014]

2. COMPARTIVE ANALYSIS OF LOW COST AIRLINES IN INDIA 3. The overall objective is to study the aviation industry, where low cost airlines are capturing more and more Indian air space, as compared to the premium airlines To compare and analyze in between the low cost airlines in India To find out the market share captured by low cost airlines as proportionate to premium airlines 4. Low-cost airlines offer air travel at normally very low rates by cutting down on expensive customary in-flight passenger services. They are also referred to as no-frills airlines or budget carriers. The idea of LCC originated in the US. Founded in Dallas Texas on June 18, 1971 by Herb Kelleher, Southwest Airlines offered tickets that worked out to be cheaper than a car or coach ride. It is the fourth largest US airline in terms of domestic customers carried annually. It has been profitable every year since 1973. Budget airlines have been enthusiastically accepted by the Indian passengers. The business model of an LCC broadly includes the following features: a single passenger class; a single type of aircraft for lesser maintenance and servicing costs; flying to cheaper; short flights and fast turnaround times; optional paid-for in-flight food and drink. 5. SpiceJet:- SpiceJet was earlier known as Royal Airways. Promoted by Ajay Singh, the Kansangra family, and Sanjay Malhotra, it started operations in 2005 and is based in New Delhi. SpiceJet made an entry into the Indian LCC market with a fare price of Rs 99 for the first 99 days and followed it up with Rs 999 scheme for select routes. Its target customer is the Indian Railways passenger travelling in the AC coach. It has an aggressive marketing strategy with a theme that runs: "offering low 'everyday spicy fares' and great guest services to price conscious travellers." 6. IndiGo:- Owned by InterGlobe Enterprises, Indigo took off in 2006 with its first flight from Delhi to Imphal via Guwahati. Headed by Rahul Bhatia, it covers all major leisure and business destinations like Chennai, Kolkata, Bangalore, Mumbai, Delhi, etc. Known for its seamless, precise, gimmick-free customer experience at affordable prices, Indigo links 14 destinations across India. It constantly stresses on affordability, punctuality and hassle-free processing. 7. AIR DECCAN:- Captain Gopinath, the founder of Air Deccan, is the pioneer of budget airlines in India. He started with the dream of bringing air travel within the reach of the common man and in 2003, Deccan became the first low-cost airline to fly pan- India. It is also the first airline to fly to second tier cities like Hubli, Madurai and Visakhapatnam from major cities like Bangalore and Chennai. With its recent merger with Vijay Mallya's Kingfisher Airlines, Air Deccan was renamed Deccan, with SimpliFly as its tagline. 8. Jetlite:- Born as Sahara Airlines in 1991, it started operations in 1993 and was rechristened Air Sahara in 2000. Part of Sahara India Pariwar, Air Sahara became an international carrier in 2005. After much deliberation and more legal fuss, Jet Airways, headed by Naresh Goyal, bought Air Sahara in 2007 for Rs 1,450 crore (Rs 14.5 billion). Jet Airways dubbed its low-cost counterpart JetLite. Jet carried forward Sahara's trademark of 'Indian-ness' in the look and feel of the airlines. The crew's dress code and the fleet colours were retained to continue Sahara's Indian legacy. 9. GoAir:- Promoted by the Wadia group, GoAir is a no-frills airline based out of Mumbai. It is positioned as a 'Smart People's Airline', with its theme of 'Fly Smart. With Jehangir Wadia at the helm, GoAir's business model stresses on punctuality, affordability and convenience. GoAir's route network spans prominent business and leisure destinations, across India. Currently it covers 13 destinations: Ahmedabad, Bangalore, Chennai, Cochin, Coimbatore, Delhi, Goa, Hyderabad, Jaipur, J ammu, Mumbai, Pune, and Srinagar. GoAir has a tie-up with Cleartrip to offer return fares of Rs 599 across all sectors in India. 10. 7 PS OF MARKETING MIX:- 11. 7P OF SPICEJET:- Product: On Ground Services: Check in Option Airport Lounges Coach & Bus services In Flight Services: SpiceJet sells hot meals/snacks/refreshments and beverages Price: Discounted fare for senior citizen , defense personnel Economy & club premiere fare Advance passenger excursion Place: Place of Services: aircraft ( ticket counters, check-in boarding place, brokers office, etc ) Various Destinations 12. 7P OF SPICEJET (contd.):- Promotion: Hoardings & advertisement Sponsorships Event organization Process: People Processing: Greeting method and standard procedure of treatment for customers for each class Booking tickets on counters Possession Processing: Cargo Luggage 13. 7P OF SPICEJET (contd.):- People: Crew members Ground Staff Customers Employees Physical Evidence: On the ground: Booking office or Ticket counters Paper work Brand Logo Ticket In Flight: Aircraft and seating configuration Uniform Level or Tag 14. 7P OF INDIGO:- Product: On Ground Services: Check in Option Airport Lounges Coach & Bus services In Flight Services: Indian based IndiGo offers a selection of food and beverages for sale onboard For passengers with special needs, IndiGo offers a choice of sugar-free health bars and drinks. Complimentary drinking water is offered on all IndiGo flights. Price: Discounted fare for senior citizen , defense personnel Economy & club premiere fare Advance passenger excursion Place: Place of Services: aircraft ( ticket counters, check-in boarding place, brokers office, etc) Various Destinations 15. 7P OF INDIGO(contd.):- Promotion: Hoardings & advertisement Sponsorships Event organization Process: People Processing: Greeting method and standard procedure of treatment for customers for each class Booking tickets on counters Possession Processing: Cargo Luggage 16. 7P OF INDIGO(contd.):- People: Crew members Ground Staff Customers Employees Physical Evidence: On the ground: Booking office or Ticket counters Paper work Brand Logo Ticket In Flight: Aircraft and seating configuration Uniform Level or Tag 17. 7P OF AIR DECCAN:- Product: On Ground Services: Check in Option Airport Lounges Coach & Bus services Price: Discounted fare for senior citizen , defense personnel Economy class fare Advance passenger excursion Place: Place of Services: aircraft ( ticket counters, check-in boarding place, brokers office, etc ) Various Destinations 18. 7P OF AIR DECCAN(contd.):- Promotion: Hoardings & advertisements Brand ambassadors Sponsorships Event organization Process: People processing: Greeting method and standard procedure of treatment for customers Booking tickets on counters Flights sticking to schedule Possession Processing: Cargo Luggage 19. 7P OF AIR DECCAN(contd.):- People: Crew members Ground Staff Customers Employees Physical Evidence: On the ground: Booking office or Ticket counters Paper work Brand Logo Ticket In Flight: Aircraft and seating configuration Uniform Level or Tag 20. 7P OF JETLITE:- Product: On Ground Services: Check in Option Airport Lounges Coach & Bus services In Flight Services: Classes of service: First class, Premium class and Economy class Cuisines Entertainment: Jet Screen Movies, Television Programme, Games, Music, In Flight Communicator, Online magazine Jet Wings (in flight magazine) , Jet Boutique ( in flight shopping catalogue) Jet mobile Jet Kids Jet Escapes 21. 7P OF JETLITE( contd.):- Price: Discounted fare for senior citizen , defense personnel Economy & club premiere fare Advance passenger excursion Place: Place of Services: aircraft ( ticket counters, check-in boarding place, brokers office, etc ) Various Destinations Promotion: Sales Promotion: Different type of offers- Jet privilege frequent-flyer program Jet airways Citibank Credit cards Corporate deal offer Festival special , student special 22. 7P OF JETLITE( contd.):- Advertisement & branding: Hoardings & advertisement Sponsorships Event organization Process: People Processing: Greeting method and standard procedure of treatment for customers for each class Booking tickets on counters Possession Processing: Cargo Luggage 23. 7P OF JETLITE( contd.):- People: Crew members Ground Staff Customers Employees Physical Evidence: On the ground: Booking office or Ticket counters Paper work Brand Logo Ticket In Flight: Aircraft and seating configuration Uniform Level or Tag 24. 7P OF GOAIR:- Product: On Ground Services: Check in Option Airport Lounges Coach & Bus services In Flight Services: GoAirs exclusive in-flight magazine go-getter Price: Discounted fare for senior citizen , defense personnel Economy class fare Advance passenger excursion Place: Place of Services: aircraft ( ticket counters, check-in boarding place, brokers office, etc ) Various Destinations 25. 7P OF GOAIR(contd.):- Promotion: Hoardings & advertisement Sponsorships Event organization Process: People Processing: Greeting method and standard procedure of treatment for customers for each class Booking tickets on counters Possession Processing: Cargo Luggage 26. 7P OF GOAIR(contd.):- People: Crew members Ground Staff Customers Employees Physical Evidence: On the ground: Booking office or Ticket counters Paper work Brand Logo Ticket In Flight: Aircraft and seating configuration Uniform Level or Tag 27. SERVICE BLUE PRINT OF AVIATION INDUSTRY:- 28. SERVICE GAP MODEL OF AVIATION INDUSTRY:- 29. SERVICE GAP MODEL OF AVIATION INDUSTRY(contd.):- GAP 1: Consumer expectation and management perception. GAP 2: Management perception and service quality specification. GAP 3: Service-quality specifications and service delivery. GAP 4: Service delivery and external communications. GAP 5: Perceived service and expected service. 30. DATA ANALYSIS & INTERPRETATION 1.Mostly Preferable Low cost Airlines in India INTERPRETATION: On the basis of bar diagram, the passengers mostly preferred INDIGO as their first preference in low cost airlines segment in India than followed by other airlines. According to survey collected, Indigo has 40% as first preference, Jetlite has 25% as second preference, GoAir has 17% as third preference, SpiceJet has 12% as fourth preference & last but not least Air Deccan has 6% as fifth preference. Though Indigo give stiff competition to other low cost airlines in such a segment. Indigo JetLite SpiceJet GoAir Air Deccan 40% 25% 12% 17% 6% Mostly Preferable Low cost Airlines in India 31. DATA ANALYSIS & INTERPRETATION 2.Preference given to when selecting an airline: INTERPRETATION: On the basis of above Pie-Chart, passengers gives more importance to the COST as major determinant in selecting an airlines for travelling purpose either it may be low cost airlines or full time airlines. So passengers, try to minimize the cost they are paying for airlines. Therefore Cost has 51% of sharing rather the factor which is Punctuality with 38%, Availability of Seat with 6% & Service with 5% 51% 38% 6% 5% Preference given to when selecting an airline Cost Punctuality Availability of Seat Service 32. DATA ANALYSIS & INTERPRETATION 3.Type of carrier people prefered in India INTERPRETATION: On the basis of above Doughnut, the Low Cost Airlines is mostly preferred by Passengers in India over the Full Time Airlines. Since, now a day, Low cost carriers were capturing more and more air space in Indian skies. Therefore low-cost carrier airlines as preferred by the population is 63% and 37% are the population which preferred Full time Airlines. Low Cost Airlines 63% Full Time Airlines 37% Type of carrier people prefered in India 33. DATA ANALYSIS & INTERPRETATION 4.Percentage of people stick to one brand INTERPRETATION: On the basis of above pie-chart, since the peoples preferred to travel with those low cost airlines which provide them with cost effectiveness. As, data which is collected from the survey that 61% of the population are the Brand switcher to Airlines which provided them such as discount on air tickets, Combo Offer,etc. 27% of the population are those who preferred to the same Airlines, where they perceived to get the same type of service when they visited the same airlines. They are called Brand Loyal. Brand Loyal 27% Brand Switcher 61% Can't Say 12% % of people stick to one brand 34. DATA ANALYSIS & INTERPRETATION 5.Mostly affected by the introduction of budget airlines INTERPRETATION: On the basis of above bar diagram, with the introduction of Budget airlines or low cost carrier in India, the business which is mostly affected is the Rail Traffic which is 56% . The reason behind it the passengers which is travelling from one destination to another designation (say Kolkata to Delhi) take long time to reach the designation with the fare which is charged by railways for their 1st tier from passengers. Similarly, low cost airlines were charging more or less type of charge for their fare with 2 to 3 hours of travelling from one designation to another. Since, the passengers are more comfortable to choose budget airlines over railways. As 39% are full services carrier of which their business are affected with the introduction of low cost airlines and 5% are the road traffic which is transport services such as Volvo buses or luxury buses. Road traffic Rail traffic Full service carrier Other Service 5% 56% 39% 0% Mostly affected by the introduction of budget airlines 35. DATA ANALYSIS & INTERPRETATION 6.Price sensitivity with reference to reliability INTERPRETATION: On the basis of above pie-chart, people are price sensitivity with reference to reliability. Though 85% are price sensitivity and 15% are not price sensitivity. While a large part of population rather see that the price that they are paying should utilized services to the full extent which is provided by the budgeted airlines. Yes 85% No 15% Price sensitivity with reference to reliability 36. DATA ANALYSIS & INTERPRETATION 7. Awareness about existing offer by low cost airlines INTERPRETATION: On the basis of above Doughnut, the people are not aware of offers and discounts which is provided by the airlines. Since those are the regular or frequent fliers would know the offers, discounts which is provided by the airlines. A large number of population is not aware of aware of the discount or any promotional offers which covered 81% and 19% are the population are aware of offers which is given by airlines. Yes 19% No 81% Awareness about existing offer by low cost airlines 37. FINDINGS From the project and survey few of my findings about Low Cost Carriers (LCCs) are as follows. People preferred to travel with those LCCs, which provide good service with least minimum cost in LCCs segment. As per survey and data collected, Indigo airlines are mostly preferred by most of the passengers. With the emergence of LCCs, rail traffic is affected mostly followed by the full service carrier. Many fliers are less aware about the existing offers which are offer by LCCs, in order to attract more business for airlines. 38. LIMITATION OF THE STUDY Some study has already been done on this topics .This study is taking a step further to explore the low cost carriers industry in India and its impact on the other mode of transports such as rail traffic, road traffic, etc and the welfare of the people of the country . However, since not all aspects could be covered. There is still a need for further research in this area. Further, this research might have some drawbacks. Moreover only 5 low cost carriers had been chosen in order to carry out the study. The sample may not be a good representative of the population as a whole. Due to time constraints, only 60 people could be questioned. 39. RECOMMEDATIONS With the reference to my study on Low Cost Airline in India, I would to suggest on some issues that may be benefited to the companies who are into aviation sectors. The major cost of all airlines, whether full time or low cost, is that incurred on fuel. All carriers should try to adopt the measure as adopted by Southwest airlines, which is of hedging fuel prices, so that they can minimize the damages caused due to price fluctuations in severe situation that affect their business and profits. A serious problem which is faced by the low cost carriers is that lack of Punctuality. The low cost airlines should try to resolving it by maintaining a better relation with the civil aviation authorities and airport authorities in order to prevent unnecessary delays in their flights. The low cost airlines should also provide better training to their staff, so that they provide good service without discriminating against the passengers on the basis of kind of background they belong to. Strengthen and Promote short haul tourism for business development, trade and tourism. 40. CONCLUSION The emergence of low cost airlines is having a strong impact on the aviation market in India .The airline market is being split into two. On the one hand will be the middle class (as well as some price conscious upper class customers), who are holiday and leisure travelers; along with conscious business travelers who prefer to travel by low cost airlines. On the other hand would be the upper class travelers who want to maintain certain standards of living in the society, along with the time punctual business travelers who would rather pay a higher price to get quality service and reach their destination on time. Overall study which focuses is that there is a huge potential for the low cost airlines to grow in India since there was a huge demand sector that was unfilled by the schedule (full time) carriers, to whom it never even occurred that there was a growing middle class which would be willing to fly for a cheaper price. To sum up, there is a rapid expansion of low cost carrier business in India having profound effect on the efficiency, competition, consumers as well as the structure of the industry. A growing proportion of India is now benefiting from the availability of cheap flights. Flying is no more constraints for middle class people. The rapid growing middle class of India, who could not even imagine that they would ever fly, are now flying. 41. 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