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A Research Proposal on

A Study on Customer
Satisfaction in Airline
Industry at LPU
Submitted to
Dr.Anand Thakur Associate Professor


1- Abdul Quoduos Rahimi 11312431 A-21
2- Mirwias Rahemzoi 11304220 B-31
3- Faiz Rahman 11312158 B-41
4- Zakria Kishan 11312251 B-44
5- Muzamil Haqmal 11312539 B-45

Table of Contents
S.No Topics Page No

1 Introduction 1-4

2 Literature Review 5-11

3 Need and Significance 12

4 Objectives /Hypothesis 13

5 Research and Methodology 14

6 Framework 15

7 References 16-17

8 Questionnaire 18-20

Page 1
The aviation sector is a key contributor to the growth and development,
employment of Indian economy and development of trade, commerce and tourism
in the country. It is a major economic driver for prosperity, development in any
country. Rapidly expanding aviation sector in India handles near about 2.7 billion
passengers across the world in a year and moves 48 million tonnes (MT) of cargo
through 920 airlines, using 4.200 airports and deploying 2700 aircrafts in the
world. Today, 89 foreign airlines fly to India and from India five Indian carriers fly
to foreign countries.

In any kind of business satisfying the customer is the ultimate goal or objective of
any marketer. High passenger satisfaction is one of the important assets for air
business in todays cut-throat competitive environment. The Passenger satisfaction
service arises when a company can provide passengers with benefits equal or
beyond the passengers expectations and this is considered value-added. If the
customers are satisfied with the product or service which the company is providing
for them they will buy more or will use services continuously. Customers
gratification is an essential goal for each airline providing services for passengers.
On the board of experience it is still something special for the customers. The
customers have a wide choice to select the suitable airline products according to
their requirements and preference. Therefore, Airlines Companies are continuously
working on the in-flight products development and innovation to differentiate
themselves from their competitors in the market. There are many factors that can
guide an Airlines Company to build its customer basis and passenger services and
satisfaction can be a determining factor in the success of all operation.

Classification of Indian Airline Industry

The players in the airline industry can be broadly categorized in three groups:

* Public players
* Private players
* Start up players

Page 2
There are three public players in Airline industry: Indian Airlines, Air India and
Alliance Air. The private players include Air Sahara, Jet Airways, Kingfisher
Airlines, Air Deccan, Spice Jet and many more. Those airline companies who are
planning to enter the markets are called starts up players. Some of them are, Magic
Air, Omega Air, MDLR Airlines and Premier Star Airline.

1. Air India: Indias Legacy Carrier

The history of Air India is the History of Indian Aviation. Air-India began
operating in 1932 as Tata Airlines, named after J. R. D. Tata, its founder. Founded
as a small private domestic carrier in 1932.Air-India is a government owned
Airline Company. It flies only International routes and has negligible presence felt
while catering to the domestic traffic.

1. Indian Airlines :

With nationalization of Air transport in 1953 via Air Corporation Act 1953.
The National Flag carriers of India and Indian & Air India were born. Indian
Airlines was born from merger of 8 domestic carriers. It caters to mainly to
domestic routes with some presence felt in neighboring nations. Air India it is a
full service carrier it is subsidiary is Alliance Air. Its Symbol is Asokas Chakra.
The two national carriers enjoyed sole monopoly in the air transport segment as
private carriers were barred from entering the segment of airline as per Air
Transport Corporation 1953 act.

3. Jet Airways:

In 1993 Jet Airways commenced its operations after the ban was lift by the
government following the repeal of Air Corporation 1956 act. Jet Airways is being
the most preferred domestic Airline in India. It is the automatic first choice carrier
for the traveling public and set standards, which it seeks to compete with other
airlines. It is the first airline that stood the crunch of late 1990s. Jet started its
worldwide Operations in 2004 and carries more than 9 million passengers every
year. Recently, the company made news when Naresh Goel led Jet Airways took
100 % stake in their arch old opponent Air Sahara in May 2007.

Page 3
4. Air Sahara:

Sahara began its operations in 1993 after the domestic Air Market was opened by
the government in 1990 and Air Sahara Limited is a leading private airline
company in India owned by the diversified Sahara India Parivar group. After series
of controversies Air Sahara has been taken over by Jet Airways in the May, 2007.
The airline is now changed its name as Jet Lite. Jet has intension of converting
Air Sahara in sync with LCC model to reach every segment of air customers.

5. Air Deccan:

Indias first budget carrier and the largest flew its first carrier in was in
2003.Headed by Captain Gopinath Air Deccan truly redefined the accessibility to
the Indian Skies. It injected competitive spirits into the system and gave common
man wings by reducing air fares which matched the first Class Railway Fares. The
3th wedding in skies was marked when Dr Vijay Mallya of Kingfisher Airlines
picked up 26 % stake in Air Deccan.

6. Go Air:
The most colorful airline in India (comes in 6 colors) started its operations from
November, 2005. It belongs to the Wadia group.

7. Indigo:
The airline made heads turn when it placed the ambitious order of 100
aircrafts with airbus. The airline started its operations in India on August

8. Spice jet:

Spice Jet, a reincarnation of ModiLuft marked its entry in service by

offering fares priced at Rs.99 fares for the first 99 days since its
inception in the year 2005. The carrier is giving cut-throat competition
to Railways. This airline company is known to have had made the least
number of mistakes in their operations.

Page 4
Literature Review
A literature review involves the review of the previous study that has been carried
out in the reference to same subject. A literature review can help us in better
1-Mitra (2010) Examine in her study and she has given importance on healthy
relationship between customer and the Airline service provider. The Airlines
Industry today should aim not only at delivery of the service to the passengers, but
they should also focus on satisfying the passengers with the services. They need to
know the customer preferences and should bring changes according to that. Then
the customer will be satisfied. Some of the private players are very much
concerned about their passengers as well as some of them are implementing low
price strategy to attract the passengers. So in this competitive age, the success of
Airlines is very much dependent on the passenger service provided at all levels,
after and during the journey to make their passengers satisfied.

A descriptive research has been conduct with help of personal interview and close
ended questionnaire for airline passengers. Data was collected from 250

2- Archana and Subha (2011) they have studied the factors which influences
on passenger satisfaction. They have identified that Cuisines provided, seat
comfort, safety these factors have an important role in customer satisfaction. They
have also found that customer satisfaction depends on personal entertainment,
which is an important factor in flying decisions of passenger. According to their
study online seat booking, call center facilities and reservation/cancellation is
highest influencing factor in flying decisions of the passengers.

The study covers a sample of 270 respondents and survey was conduct at the
Chennai international terminal of Tamil Nadu during May-June 2011.Sampling
was done by interviewing randomly selected passengers at different time of a day.
A structured questionnaire was used for collecting the data.

Page 5
3- Mahajan, Rau (2010) the researcher extensively emphasis on the customer
satisfaction is an important tool in developing the customer satisfaction measures
and establishing business processes that link quality with customer satisfaction. In
recent years, there has been considerable managerial interest in defining,
measuring and developing customer satisfaction to meet the competitive challenges
among the industries. Airlines also are suffering from such competition, Airlines
must understand that customer satisfaction is what guarantees the future of these
companies and it is achieved by an adoption of a comparative tool to minimize
discrepancies between their services and passengers needs. Various researches are
available which clearly depict the satisfaction among the customers. In India low
cost airline industry is going through an interesting phase of competition. Layoffs,
shut downs and industry consolidation have bettered employee morale and that
shows up the negative influence on the satisfaction level of the customers.

The methodology is used was based on data collection, primary and secondary
data. The researcher found that majority of the customers are satisfied the services
offered by Indian Airlines.

4-Wong and Musa (2011) they found that airline industry has undergone
through a fast moving ride for the past few years. One of the main developments in
the current aviation industry is the growing popularity of low cost airline with high
quality service. The competition between Malaysia airlines and Air Pacific has
been cut throat as regards to price factor. Both the airlines have different customer
base and hence offers different service experience. It is also note able that
differentiate in providing higher service quality is the main factor to increase or to
attract customers towards them. It has been noticed that customers are getting
attracted towards the intangible service where monetary value is less than the
services being provided.

5-Zahari, Salleh, Kamaruddin and Kutut (2011) Service quality is the

essence of airline companies which makes their image differentiate from others
and keep their image in the minds of passengers. Many airlines followed the route
of higher service quality through on ground and off ground service. Inboard meal
is one of the important aspects of the airline operation. Nowadays it became a
marketing strategy. This research depicts the reaction of customers through in-

Page 6
flight meals to see the satisfying level and re flying intention. Food not only
sacrifices the inboard customers but also have an effect on flying intention.

6-Kanethe(2012) The Researcher in found that restrictions on foreign ownership

and labor laws have kept the aviation industry away from innovating, so instead of
prospective measures like, bailout, Survival fund, airlines need to work with
government to tackle long-term problems. Missions like bringing low cost carrier
for an average income Indian who dreams to travel by air once in his/her life and
secondly building more runways, running airports more efficiently and reining in
labor cost. The challenges which the companies faced include shortage of workers
and professionals, safety concerns, declining returns and the lack of accompanying
capacity and infrastructure, Moreover, stiff competition and rising fuel costs are
also negatively impacting the industry.

7-Bhuvaneswaran, Vijayranagam,(2013) The author start his research by the

sentences that The World has turned in to global village and mentioned that
India is also that a part of that village and thanked from booming of civil aviation
industry which has helped more people in traveling from one place to another place
in Tamil Nadu. The international airlines have been carrying on the operation in
India mainly because of the fact that they attract people in India largely the
business and leisure travelers. Domestic airline within the India remained stagnant
over many decades. Deep-rooted bureaucratic policies constrained and
development and the state monopolized all the domestic aviation decisions.

The survey captured the perceptions of passengers who are now travelling in this
rapidly changing environment of freer and more competitive markets. Indias first
low cost carrier, Air India has changed the competitive landscape within India. The
survey results confirm the hypothesis that their- exists two distinct markets, one
comprising those passengers who choose a full service airline and the other those
that select a low cost carrier.

The study based on primary data, they have collected through administrative
interview schedule to passengers and airline employees and personal observation
and discussion with customers and employees.

Page 7
8-Shah (2008) this article extensively speaks about the period of grandeur that
the aviation sector in India has seen. This growth was an outcome of many Macro-
economic factors such as government reforms and market leads dynamics. Further
the article talk about the marketing concept of POD of differentiation which
various airlines use in order to attract the customers to fly with them.
Airline companies are using different techniques such as multiple pricing policies,
where in the prices of the airline ticket change in second and are sold to customers
at different prices based on the availability of the seats and the date of travel. All
Airlines have to adhere to some bare minimum barriers such as minimum number
of fleet size, equity and minimum 5 years of domestic operation to be ale fly
internationally. The article also sheds light on popular merger and acquisition that
have happened recently in the Indian aviation sector such as:

Kingfisher with Air Deccan and Jet Airways with Sahara Airline.

9-Venkatesh & Nargundkar (2006) examined that pricing and service quality
are the key variables that decide the brand equity of each player in the airline
industry. The article suggests that measurement and management of service quality
is the key for survival of airline companies.

This research paper examines the service quality delivered by four major airlines in
India on the backdrop of stiff competition in the airline service sector. The process
of traveling on a domestic airline was divided into pre-flight, in-flight and post
flight experiences. A survey was conducted to find out the perceived service
quality of frequent fliers on each of the four airlines across a series of services
performance variables. The airline brands were positioned in a perceptual space,
where the perceived service attributes were also mapped. Clear differences
emerged among the airlines, with two of them perceived as being similar to each
other, and the other two differing in many aspects.

The survey methodology which is used in this research was questionnaire design
which target 250 customers of different airlines.

Page 8
10-Punitha, Tamilchelvi (2013) Satisfaction is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer
satisfaction is what guarantees the future of airlines and it is achievable by an
adoption between their service and passenger needs. The study has tried to find out
the level of satisfaction on the services offered by domestic airlines in Coimbatore
district. Total of 300 respondents have been taken by applying non-probable
convenience sampling method and chi-square test is used to test the hypotheses.
Findings of the study reveal that the passengers are fairly satisfied with the services
offered by domestic airlines.
11-Raj Dutt and Khan,(2012) The paper examines the structure of the aviation
industry in India and the entrepreneurial challenges that it has thrown up. It also
discusses the sweeping changes that have radically changed the face of the aviation
industry, the general economic conditions that have deeply influenced the
industry, gradual process of liberalizing of air services, entrepreneurial interest
and growth of new airlines, allocation of capacity at airports, reforms in the ground
handling markets and other related issues. Further, it describes in detail the new
regulatory problems thrown up by liberalization, as well as measures taken
byentrepreneurs to overcome them. The authors have also made an attempt to
empirically determine passenger satisfaction levels vis--vis changes introduced by
new airlines in order to reduce flying costs.
12-Grewal, Citrin, Chandrashekaran(2008) In this article researcher has
describe the importance of investment. They have done a research which says that
shareholder value and the growth of company depends upon the investment done
by the company i.e. in which sector or in which department they has invested its
money. In this research they have adopted the view that customer satisfaction is a
key marketplace asset, they have tested two conjectures: (a) objective service
quality and advertising impact not only the level of customer satisfaction, but also
the heterogeneity in this asset get impacted, and (b) Satisfaction heterogeneity will
decrease the utility of the satisfaction asset in driving shareholder value, and also
influence the contemporaneous volatility in shareholder value. They have done
this research using secondary data from diverse sources describing the dynamics
within the U.S. Airlines Industry over a 9 year period from 1997- 2005. They come
to conclusion that increasing levels of satisfaction heterogeneity serve to reduce the
volatility in shareholder value.

Page 9
13-Pawar, Ahadmotlaghi(2012).The researcher found that because of immense
competition in todays business market, the organizations are struggling to apply
different marketing strategies and programs to gain more market share and acquire
more customers on one hand and to make them satisfies and loyal to their
company, on the other hand. Therefore they can ensure long lasting relationship
with their customers and create barriers in front of customers brand switch.
Application of CRM as continuous marketing program has gained great
importance recently.

Though application of CRM organizations gain knowledge regarding their

customers and transmit this knowledge to company offer to fulfill the needs of
customers and satisfy them. Airlines effort to provide better loyalty programs and
customization of service besides making relationship with them can help to create
customer satisfaction as prerequisite of loyalty.

14-David Mc.A Baker (2013) the purpose of this study was to examine the
service quality and customer satisfaction of airlines between 2007- 2011 using data
from the Department of Transportation Air Travel Reports. The objectives of this
study were to compare customer satisfaction and service quality with respect to
airlines quality dimensions and subsequently to determine the relationships
between the dimensions of service quality and passengers satisfaction on airlines
services. A critical review of the literature revealed that the airline industry has
been struggling with many challenges: cutting costs, managing fluctuating demand,
keeping up with tight quality requirements while trying to maintain superior
services and satisfy the needs of various customer groups. Data were collected
from the Department of Transportation's Air Travel Consumer Report on the
following measures: percentage of on-time arrival, passengers denied boarding,
mishandled baggage and customer complaints. Using a quantitative research
method, Microsoft Excel version 2010 was used to analyze the data using
percentages, mean and standard deviation. Results indicate that while the
traditional carriers are converging toward a higher level of service quality, using
the four measures, there continue to be significant variation. In this study, over a
five year period 2007 to 2011, the service quality of low cost airlines was generally
found to be higher than that of traditional legacy airlines. Implications related to
operating costs, market share, infrastructure and customer service were evident.

Page 10
15-Arora,Bishnoi,Atray (2009). The researchers found that Due to the rise in
income levels, disposable income is increasing which enhanced the number of
flyers. Indian tourism is also in the growing stage as a result there has been an
increase in the number of international and domestic passengers as well. It will
lead to the growth in airlines industry. Although currently there are many
challenges which are being faced by the Indian Aviation Industry but the growth
prospect is very much high. Government has to take an initiative to improve the
Airport infrastructure and to pour in some investments as well. Some steps are
already being taken by the government for the development of Aviation Industry.
Concluding we can say that apart from all the challenges Aviation Industry's future
is very bright in India.

The methodology which they used in their research was collection of data
from two sources Primary and Secondary sources. They found despite
many issues in road of Indian aviation industry. The sector has improved
very much and it will have a bright future. The government fulfilled the
expectation of domestic and national passengers to high extend.

1-3 Literature Reviews collected by Abdul Quoduos Rahimi

3-6 Literature Reviews collected by Mirwais Rahimzoi

6-9 Literature Reviews collected by Faiz Rahman

9-12 Literature Reviews collected by Zakria Kishan

12-15 Literature Reviews collected by Muzamil Haqmal

Page 11
Need and Significance

Passenger satisfaction service arises when a company can provide passengers with
benefits that exceed passengers expectation and this is considered value-added. If
customers are satisfied with the product or service, they will buy more, and do so
more often. Passenger gratification is an essential goal for each airline providing
passenger services. The on board experience is still something special for the
customer. The customer has a wide choice to select the suitable airline product
according to their requirements. Therefore, airlines are continuously working on.
In-flight and out-flight service product development and innovation to differentiate
themselves from competitors. During the last few years a variety of in-flight
product innovations have entered into the market. This includes the aircraft seat on
long haul flights as an important product element which is continuously being
improved and renewed according to its life cycle and changing customer
requirements. The current development of business class seat roll-outs shows the
significance of this product element which influences the buying decision of the
passenger especially on long haul flights. If the passenger is not satisfied, due to
the negative experience, the client will reconsider the buying decision for further
flights and will probably switch to another airline. This kind of situation belongs to
the daily business in the passenger airline industry.

1-Identify the factors those leads to customer satisfaction in Airlines Industry.

2-Passenger complaints on flight problems, ticketing problems, refunds, fares,
customer services, advertising and other problems.
3. To examine the level of customer satisfaction in Indian Airline industry.

Page 12

The current study is aimed at evaluating the service quality and customer
satisfaction of Airlines in India.

The following are the objectives of the study

1- To study the role of service quality in providing the excellent customer

satisfaction in Airline industry.
2- To analyze the perception of customers toward Indian Airline.
3- To identify major problems which the Indian Airlines faced.

H1. Service Quality has a positive influence over the customers decision
regarding choosing the airlines to travel.

Page 13
Research Methodology

Research Design: In order to achieve the above study objectives, we have used the Simple
Random Sampling technique, randomly intercepted and administered fully structured
questionnaires to target respondents.

Sample: We have targeted the age group of above 20 and who often use flight services.
Area of Survey: lovely Professional University
Gender: Male and Female both.

Sample Size: 50

10 Students have been selected from Business.

10 Students have been B.Tech Civil.
10 Students have been selected from Pharmacy.
10 Students have been selected from Education.
10 Students have been selected from Journalism.

Data Collection Method: We have collected data through survey method.

Survey is done through questionnaire filling.

Page 14

Independent Variable Dependent Variable



Page 15
1. Bhagyalakshmi Venkatesh and R.Nargrundkar.(2006). Service Quality Perceptions of
Domestic Airline Consumer in India.

2. Dipa,M.(2010).A Comparative Study between Indian Public and Private (Low Cost)
Airlines With Respect to their Passenger Service. International Review of Business
Research Paper. Volume 6. Number 6. December 2010 Pp.48-65

3. Ehsan Ahadmotlaghi, Dr.Prafullah Pawar.(2012)/ Analysis of CRM Programs Practiced

by Passengers. Airline Industry of India and Its Impact on Customer Satisfaction and
Loyalty. Researcher World. Journal of Arts, Science and Commerce. ISSN- 2231-4172

4. Kee Mun,Wong and Ghazali, Musa.(2011).Brandin Satisfaction in the Airline Industry.

Faculty of Business and Accountancy, University of Malay,50603 Kuala Lumpur,
Malaysia. Accepted 23 March, 2011.

5. Mod Zahari, M.s,Salleh,N,k.Kamaruddin, M.S.Y and Kutut, M.Z.(2011) In-flight Meals

Passenger Level of Satisfaction and Re-flying Intention. World Academy of Science,
Engineering and Technology 2011.

6. MC, D. & Baker, A. (2013). Service Quality and Customer Satisfaction in the Airline
Industry: A Comparison between Legacy Airlines and Low-Cost Airlines. American
Journal of Tourism Research, 2(1), 67-77.

7. Mrs.V.Punitha and Dr.N.Tamilchevli.(2013) A Study on Passenger Satisfaction on the

Services Offered by Domestic Airlines with Special Preference to Coimbatore District.
International Journal of Scientific Research. Vol.2. Issue: 6 ISSN NO 2277-8179 June
8. Mohammad Naved Khan and Vippan Raj Dutt .(2013). Entrepreneurial Trends in
Liberalized Civil Aviation Sector in India: Paradigm Shifts Beyond 1990s.

9. Aligrah Muslim University, S C Bansal Indian Institute of Management.

Page 16
10. Neha.A., Bishoni,K, K. & Atary, S.(2009). Indian Aviation Industry Issues &
Challenges. Rajasthan Institute of Engineering and Technology, Jaipur. India

11. Rajdeep Grewal, Alka V.Citrin, Murali Chandrashekaran.(2008) Customer Satisfaction

Heterogeneity and Shareholder Value. Journal of Marketing Research October 2008.

12. R.Arachana and Dr.M.V.Suba.(2012). A Study On Service Quality and Passenger

Satisfaction. International Journal of Multidisciplinary Research. Volume 2, Issue 2.
February 2012, ISS N 2231 5780

13. Rajesh U. Kanathe. (2012). Challenges of Indian Aviation Industry in chaotic phase.
Bharati Vidyapeeth Deemed University, IMRDA, SANGLI, India

14. R.Bhuvaneswaran and Dr.D. Vijayarangam. (2013). Service Quality Towards Domestic
Airlines and Passenger Perception in Tamil Nadu. Asia Pacific Journal of Research
Printed-ISSN-2320-5504. September -2013

15. Rajesh,S.(2008) Growth in Airline Industry. U.S. Realty Consultants, Inc. September

16. Vaishali.C Mahajan, Rau.S.S (2010). Customer Satisfaction with Domestic Airlines in
India. Researcher Scholar,Sathyabama University , Chennai, India. National Journal on
Advance in Computing and Management, Vol.1.No,1 March 2010

Page 17
Dear Respondent

I am a student of lovely Professional University, conducting a study on customer

satisfaction in Airline Industry a part of my Bachelor program. You are required to
spare some time for the information required in the survey. The information
provided by you will be used for academic purpose only. Your Participation is
completely voluntary and all responses will be anonymous.

Abdul Quoduos Rahimi

A. Demographic Profile

1- Name

2- Gender Male Female

3- Age Under (25) Between(25-35)

4- Your highest qualification?

Under graduate Post Graduate

B. Please select the airline (only one), which you have flown maximum times.

1. Spice Jet 4. Air India Express

2. Go Air 5. Jet Airways
3. Sahara Airlines 6. Indigo
7. Air India 8. Paramount Airways

5- Since how long have you been flying :-

First Flight 1 5 Years

5 10 Years More than 10 Years

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C. How you are satisfied with overall performance of the Airline. Regarding to
following services;

Customer Services Totally Neutral Totally

Dissatisfied Satisfied

1 Cost of Ticket 1 2 3 4 5

Booking System 1 2 3 4 5
Flight Schedule 1 2 3 4 5

4 On time flight 1 2 3 4 5

5 Safety/comfortability 1 2 3 4 5

6 Flight Service and Meals 1 2 3 4 5

7 Employees Attitude towards you 1 2 3 4 5

8 Baggage Delivery Time 1 2 3 4 5

9 No Refund Policy 1 2 3 4 5

10 Overall Satisfaction 1 2 3 4 5

6- Number of domestic Flights in last 1 year :-

15 6 to 10 10 to 20 Above 20

7-Are you a frequent flyer member of this airline :- Yes No

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D. Please indicate () your opinion in case the following alteration in services
leads to lower prices of tickets:-
Customer Services Acceptable Partially Not Acceptable
B1 Single Class Flight
Point to Point Service (Limited
B2 Destinations but faster connectivity
between stations)
More dependency on Internet for ticket
B3 sale. Limited number of Travel Agents
and Sales Office.
B4 Limited Staff & Cabin Crew
B5 Increase in Minimum Reporting Time
B6 Paid In-Flight Service and Meals
B7 In-Flight Advertisements
B8 Increase in Baggage Delivery Time
B9 Increase in Customer Complaint
Handling Time
B10 No Frequent Flyer Program

B11 Company Web Site as main point of

B12 No Refund Policy

8- Will you continue flying your airline if the above alterations are made in customer
services :-
Yes No Maybe

9- Rate the satisfaction level of your preference Airline.

a) Very satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Very Dissatisfied

10- Do you want to continue with the same airline in the future?
Yes No Cant Say
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