NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES MUMBAI

Business Research Method: Kingfisher Airlines

Under Guidance of Dr. Shweta Dixit

Submitted by Group 7
Alok Bugde C009 Priyanka Garg C019 Hardik Gogri C022 Ilhan Khan C033 Ravi Ramchandani C047 Aniket Samant C048

BLEEDING AIRLINE INDUSTRY: KINGFISHER AIRLINES

INTRODUCTION
Struggling Kingfisher Airlines slipped in market share to the third position in October, from second in September, ceding ground to budget airline IndiGo, government data showed. Kingfisher is unlikely to recover lost ground in coming months because the loss-making carrier has cancelled scores of flights in November, catching both customers and government authorities by surprise and spooking investors. Kingfisher recorded a market share of 16.7 per cent for October, a busy season for the airline industry, trailing IndiGo at 19.6 per cent. Kingfisher was almost neck-and-neck with state-run Air India, which had a share of 16.6 per cent, while Jet Airways remained the dominant carrier with a market share of 24.8 per cent, which included its subsidiary JetLite. Close on Kingfisher's heels was budget airline SpiceJet with a share of 16.1 per cent. Domestic air traffic remained robust, growing 18.3 per cent in Jan-Oct from the same period a year ago to 49.6 million passengers. But the numbers have failed to translate into profits for India's airline industry, where all the major carriers except IndiGo are loss-making, hit by high jet fuel costs and an inability to raise fares in a cut-throat market.

1) RESEARCH OBJECTIVES
Analyze the customer perception about kingfisher airlines Analyze the factors according to customers which make Kingfisher a sought after airline Effect of income and age group on the choice of airline carrier

2) RESEARCH HYPOTHESIS

H1: To test whether loyalty towards airline depends upon income. H2: To test if gender and preference of value added services are dependent H3: To test if the preference for an airline is dependent on the routes offered by airlines H4: To test if the choice of choosing an airline depends on the reliability, dependability and ease of booking.

3) METHODOLOGY The data was collected using a Questionnaire as it is free from the bias of the interviewer. In this approach the respondents have adequate time to think and evaluate the options before giving their answers. The results of the questionnaires can usually be quickly and easily quantified. It can be carried out by the researcher or by any number of people with limited affect to its validity and reliability. Using this approach the data can be analyzed more 'scientifically' and objectively than other forms of research. The questionnaire was made available via mail, social networking websites to those respondents who were expected to read & understand the questions and write down the reply in the space meant for the purpose. Respondents majorly composed of students, business men

and working men and women who frequently travel by air and a sample size of 75 is collected by convenience sampling.

3) THEORITICAL FRAMEWORK The proposed theoretical framework is as under

4) DATA ANALYSIS

Research Hypothesis 1: Ho: Customer loyalty towards airlines is dependent on people with high income group. H1: Customer loyalty towards airlines is not dependent people with high income group.

Conclusion: The research hypothesis can be substantiated as the p value of the test statistics is 0.1193 which is greater than .05

Research Hypothesis 2: Ho: There is a difference between men and women in their preference for Value added Services H1: There is no difference between men and women in their preference for Value added Service. Chi-Square Test for Independence
Frequencies Data 1 2 3 5 4 7 Alfa Romeo Yates Correction 4 6 5 0 6 7 8 9 10 Total 22 #Rows

0 2

2 3 4 5 6 7 8 9 10 Total

12

10

10

10

16

17

16

10

43 0 0 0 0 0 0 0 0 65

#Cols df Test Statistic

5 4

2 12.741
p-value 0.0126

Conclusion: The research hypothesis cannot be substantiated as the p value of the test statistics is 0.0126 which is lesser than 0.05.

Research Hypothesis 3: Ho: If the preference for an airline is dependent on the routes offered by airlines H1: The preference for an airline is not dependent on the routes offered by airlines

Conclusion: The research hypothesis can be substantiated as the p value of the test statistics is 0.0649 which is greater than 0.05.

Research Hypothesis 4: Ho: If the choice of an airline depends on the reliability, dependability and ease of booking. H1: If the choice of an airline does not depends on the reliability, dependability and ease of booking.

Conclusion: The research hypothesis can be substantiated as the p value of the test statistics is 0.09 which is greater than 0.05.

7) CONCLUSION & RECOMMENDATION Of the various hypothesis tested, higher cost of travelling via Kingfisher, better connectivity to remote areas are the most influential factors for reduction in customers for Kingfisher airlines. Indian consumers are very price sensitive and prefer to travel by low cost airlines. The pricing of Kingfisher airlines as a premium airline was a deterrent for a bulk of the travelers. However some of the travelers chose Kingfisher airlines for the innovative quality of service that they used to provide. One of the best ways to revert the downfall phenomenon would be to continue to provide the services, that Kingfisher airlines was earlier known to provide, provide better connectivity to more cities and even remote locations. As per our secondary research we came to deduction that a remarkable way to reduce cost is to reduce the expense on advertising and marketing as Kingfisher airline is a very well known brand in minds of the consumers. And create a difference in the pricing of Kingfisher Red, the low cost carrier; and Kingfisher airlines.