THE AIRLINES SECTOR

The aviation industry in India has grown by leaps and bounds in recent years in
terms of kilometers flown as well as customers serviced. The economy of a
country is substantially determined by the quality of air transport. The airlines
today have made themselves more popular among its customers by various
marketing tactics like:

• Reduced costs of air tickets for frequent flyers.

• E-ticketing i.e. virtually eliminating the need for agents. Rynair and Easy jet
two of UK’s low cost carriers have eliminated travel agents completely and
sell all their tickets online.,
• Selling tickets through online auctions,
• Various freebies and accommodation offers provided at lower rates.
• Improved and interactive staff.
• Increase in aircraft capacity

These are a few of the many reasons for the increasing popularity of the airlines.
In terms of quantity the airlines industry turnover in the year 99 was
approximately 44 billion, 14 million passengers traveled using its services. Till
recently, Indian Airlines had a monopoly in the sector. However, in 1993 the skies
were opened for private participation and 8 airlines got the nod to commence
operations. Of these, only two have survived - Jet Airways and Sahara Airlines.

The market share of Indian Airlines vis-à-vis private players is given below.

Airlines Market Share Aircrafts Owned

Indian Airlines 47% 55
Private Airlines* 53% 35
 THE SERVICE MARKETING TRIANGLE

One can better understand the workings of airlines by looking at its marketing
triangle.

COMPANY

ENABLING PROMISES
MAKING PROMISES

PROVIDER CUSTOMER
KEEPING PROMISES

There are three entities in the entire transaction:

• Customer: He is the person who wishes to satisfy his need i.e. of

transportation from one destination to another.

• Company: This is both the dreamer and the offerer. It is the various
airlines, which offer its aviation services to satisfy the customers demand
for transportation from one destination to another. For e.g.: The Indian
airlines

• Provider: these are finally the people who interact with the customers.
They are the ones who carry out the final transaction. The customers
actually come in contact with the service provider and not the company.
For e.g.: The Airhostess and the crew.

The interaction between these three parties while providing the service takes
place in the following manner:
• The company is established with the basic objective of providing the specific
transport service. Thus the airline industry with players like Indian airlines, jet
airways, Sahara airways etc came into being.
• The air service provider that is the company communicates with the customer
and makes him aware of the services. It makes promises to the customer
through advertising through various medias.
For e.g.: the TV ad of Indian airlines advertising its new sleep in seats.

• The customer who gathers knowledge about the service approaches the
company for availing his service in order to satisfy his need. This interface of
the customer with the company is through the customer’s interaction with the
providers of the company. The company enables its promises to the customers
through setting up facilities to deliver the promises that is by setting up ticket
and enquiry counters. The outcome of the “to be transaction” is determined by
the interaction between the provider and the customer. Hence the company
aims at offering its providers with the required infrastructure and training to
optimize the quality of the transaction.
For eg: Yearly employee training programs and performance appraisals done by
Sahara airlines.
The three strategic points where the provider and the customer interact are :

• Ticket purchase at the airline counter or the ticket

agency.
• Checking in.
• During boarding.
• During disembarkation.

MARKETING MIX VARIABLES

THE PROMOTION MIX:

The formulation of an ideal promotion mix is essential to inform, sense and

persuade the users. The business magnets, business executives, politicians, cine
artists, high spending tourists, business houses using expensive inputs and trading
the same, the Department of Posts, domestic and international tourists are some of
the users of the air services. The users appear to be more conscious, aware of their
rights and in a majority of the cases are found sophisticated. However, majority of
the users are sophisticated and therefore the promotional efforts are required to be
more creative. The professionals engaged in the air services bear the responsibility
of blending the different components of promotion in such a way that the task of
increasing the business is simplified. Since a number of airways and airlines have
been facing problem of financial crunch, it is pertinent that they make possible an
optimal use of the different components of promotion. The various components of
promotion used in the airlines industry are:

 Advertising:
As any other service, the air transportation service needs creative advertisements
to promote their business. This is the first component of the promotion mix, which is
based on professional excellence of the advertising agencies. In view of the rising
cost of inputs and increasing the impact of world wide economic depression on the
air transportation, there is a need to make the advertisement budget optimistic vis-
a- vis optimal. This is essential to regulate the multi-dimensional expenses found of
unproductive nature and instrumental in making the service expensive. The telecast
media and the print media are found important while promoting the air business.

While advertising through the telecast media, budgetary constraints and budgetary
provisions should be considered. Also the quality and nature of target market and
level of expectations should be kept in mind. The advertising professional need to
make the advertisement slogans, campaigns, message proactive to the generation
of business. The airlines have also to make it sure that whatever the strategic
decisions they make to promote the business are in a position to establish an edge
over the promotional measures of the competitors. They are also required to assign
due weightage to the efforts made for the projection of a positive image. The Indian
Airlines as well as Air India have been facing the image problem but the
advertisement may be efficacious in transmitting the facts and removing the image
problem. It is essential that while advertising one has to keep ion mind the image of
the country, the natural scenes, the tourist attractions, rich cultural heritage or so
which would energise the process of motivating the tourists. It is said that both the
domestic as well as international flights have been facing the problem of poor
occupancy ratio and therefore nothing concrete or positive can be said about the
products and service offerings or multi-dimensional attractions/ benefits given by
them. While advertising, it is impact generating that we select an opportune
moment of flight, an attractive scene of take-off, high attractiveness of personnel in
general and the air hostess in particular, the landscape of an attractive tourist
center, wild life sanctuaries, lake, park and so on. The air transportation services
can also use the broadcast media.

 Publicity:

Publicity is a process of persuasive communication for which no payment is made.

Strengthening public relations activities if found essential to promote the business
airlines or airways. The Public Relations Officer, Receptionists, Travel Agents, Travel
Guides, Media people are some of the sensitive points of publicizing the business.
The most important point in this is the co-operation of media. The marketing
professionals should have an idea of magazines, newspapers preferred by the
prospects or users and they develop rapport with the correspondents concerned.
The Airlines need to recruit efficient personnel for that very purpose that should
have professional excellence no doubt but in addition they are also required to have
the potentials of attracting the users, prospects.
For e.g.: Indian Airlines helped the cancer patients and took them for a for a small
outing as a part of their public relation campaign. Similarly, Sahara linked up with
Close- up by taking Hrithik Roshan. Here for Close-up it is a promotional strategy
while for Sahara a publicity, that a airline is linking up with FMCG by using an entity.

 Sales Promotion:

A component of promotion adopted for a particular period to touch the target and
withdraw the measures when the time is over is known as sales promotion. The tool
based on incentives is found instrumental in sensitizing the users. The travel agents
contribute a lot to the promotion of air transport business and therefore we need to
think in their favour on a priority basis. The tour operators also contribute to the
process and therefore need to think in their favour. The front- line-staff in the offices
of the airways and the receptionists working there also play the same role. This
makes it significant that they are give n some incentives which are in the form of a
holiday trip to a particular place, concessional services to their children or spouse or
so. Also offering them with innovative gifts, which have not been offered by their
competitors, can be given. The nature and type of incentives would depend on the
contributions of providers. If they make immense contributions, the incentives
would be in good quality and volume. There are incentives given called the
promotional incentives on the basis of the frequency of using the services.
For e.g: Through Jet Airways, return ticket passengers on metro flights (both
economy and business) can avail a discount at all Taj and ITC hotels in South India.
Also Sahara has a crazy assortment of gifts being handed out (its’ Take Offer’).
Braun Mixer grinders, CTVs, cameras, handycams, mobile phones and even free
holiday packages are up for grabs as a part of their sales promotion campaign.

 Personal Selling:

The air transport organizations find personal selling which is the submix of
promotion mix instrumental increasing the business. An art to influence, stimulate,
sensitize the impulse buying is known as personal selling. The air transport-
marketing professionals are supposed to know about the behavioral profile of
persons who act as personal promoters. The travel agents, tour operators, transport
operators, travel guides, front-line staff on the booking counters, receptionists
contribute substantially to the process of promotion. If they stop selling, the offices
of airways would find it difficult to sell. This makes it clear that even the quality
services fail in attracting the users, if the channels are not co-operate. This makes it
essential that we offer incentives to them so that they keep on moving the process
of stimulation.
In promoting business, the airlines industry must select persons, agencies having a
positive image. The travel agencies having a well established business can help
substantially and therefore it is the prime responsibility that while selecting the
travel agents one must assign due weightage to the image of the agencies. The
tour and transport operators help considerably and one needs to think about the
incentives to be offered to the promoters. In personal selling, the front-line staff or
personnel at the booking or reservation counter of airlines office playing an
incremental role in promoting the business. Here, it is essential that one is aware of
the credentials of persons supposed to discharge the business responsibility and try
his best to brush up their faculties as and when opportunities come. As it is based
on the behavioral profile, in case of misbehavior of indecent behavior by the front-
line staff, the task of getting the business is found much more complicated. Thus a
person working at the counters where face-to-face communication with the users is
done, the communication ability is high and high behavioral profile is essential too.
Thus due weightage is given to the training programme for the front- line staff.

 Word-of-mouth Promotion:

This happens to be an important constituent of promotion mix in which the

promoters act as a hidden sales force. The air transport organization depends on
this type of promotion if they feel that the quality of services offered by them is of
world class. In the Indian perspective, the Indian Airlines, Air India, Sahara India, Jet
Airways and others may use this component of promotion if they realize that
providers have not been distorting the quality of services promised.
 Telemarketing:

Telemarketing is playing an important role in promoting the business. The

telemarketers can serve multi-dimensional purposes. They can play an outstanding
role of informing, sensing and persuading the users even without making a big
investment. A telephonic instrument and a well-trained telemarketer are found
essential. The queries and questions of the users/prospects can satisfactorily be
answered and misunderstanding, confusion and communication gap can be
removed if telemarketers are professionally sound. The booking counters, the
enquiries, the reception counters, the users’ complaints and grievances cell, the
announcers are found playing an incremental role in promoting the air business. For
this the telemarketer must have high communicative ability, attractive personality
and microphonic sound.

THE PRICE MIX:

Pricing decisions play a decisive role in managing the business of air transportation.
The increasing operational costs, the mounting competition, the falling occupancy
ratio, the imbalances in demand and supply, the increasing pressure of inflation are
some of the important factors influencing the strategic decisions for setting fare and
freight rates in the air transport business. The Ministry of Tourism and Civil Aviation,
the Indian Airlines Corporation, the National Airports Authority, the International
Airports Authority of India, the Air India Corporation are the bodies directly or
indirectly influencing the process of making the pricing decisions. The main problem
is to make the pricing decisions competitive because it is found that even the
private air transport organizations are involved in the process too. It is seen that the
following are the features in price i.e.: 1.Flexibility; 2. Price Level; 3. Differentiation;
4. Discounts and Allowances.
While price is tactical, it has localized implementation, it is temporary in nature and
therefore price is flexible.
The below is an article from the Business Standard issue of 1st October-02 which
shows how fares have lessened and what are the additional benefits which are
being provided to the customers.

IA takes fare war to Jet’s turf…extends sops to peak season

Domestic carriers have been successful in increasing their load factors, following an
increase in takers for airline schemes that offer passengers huge discounts (nearly
50 percent in certain sectors). Though the bottom lines of airlines have improved,
this phase will last only till the end of the lean season. (October) in most cases.
There had been a decline in passenger load post-11 September, but these schemes
have been able to retain loads. With all major domestic airlines – Indian Airlines (I-
A), Jet Airways and Sahara- announcing various schemes to lure passengers, it
would not just lead to displacement of passengers from each other’s airlines but
also encourage those traveling by rail or road top travel by air.

More good news for air travelers. Indian Airlines (IA) has announced a revised apex
fare scheme with effect from November 1 to March31 2003 thereby extending the
early bird scheme to the peak season. Under the new scheme covering 53
destinations, the advance booking period has been reduced from 21 days to 15
days. Cancellation and refund rules have also been relaxed and the passengers can
now change their reservation plans or get refund at least 15 days prior to the date
of travel after paying a minimal charge of Rs.100 per ticket.
The new fares, to be effective from November 1 of this year see a Rs.520 or 13.25
percent drop on the Delhi-Mumbai sector. The new IA fare of Rs. 3,400 is 6 percent
lower than a Delhi – Mumbai Jet Airways ticket cost Rs.3,620. The gap between an
AC first class Rajdhani ticket and an IA economy ticket on the Delhi-Mumbai route
had widened with the rail fare 19 percent costlier at Rs.4,180. the AC-II tier Rajdhani
ticket at Rs.2,045 is, however nearly 30 percent cheaper.

Till now, the airline has been offering around 12-13 per cent of the total economy
class seats under the apex fares scheme, the officials of IA added. Around 2,500
seats a day was being offered under the scheme out of 2000 economy class seats in
50 destinations where the scheme is valid. “We have managed to convert the first
class train traffic and create a new segment altogether. While the seat factors
increase to 65-70 per cent during the peak season, the additional traffic would only
contribute towards a higher seat factor without much effort,” IA officials said.

The airline has been flexible on the availability of seats under this category and
based on its analysis of the demand-supply, traffic profile of the route and cost
benefit analysis, it has been varying the number of seats offered under the scheme.
During the lean season (August-October), it has often offered close to 3,000 seats of
the available 20,000 seats a day in the economy class. All categories and routes
taken together, IA has a capacity of around 34,000 seats a day. The airline’s
revenue from business traffic is around 80 per cent, while that from leisure traffic
accounts for 20 per cent.

Jet Airways has also decided to cut the number of seats offered under the Apex
scheme. The airlines have slashed the number of seats offered per flight under the
scheme from 15 per cent to 10 per cent. Senior Jet officials said the airline would
offer 40 per cent lesser seats daily across its network, than what was offered during
the August-September period. The airline was offering approximately 3,000-4,000
seats on its Apex scheme during the last two months.

The other seven sectors on which IA announced a fare cut include Mumbai-
Bangalore(now Rs.2,700 from Rs.2,480), Kolkata – Guwahati (Rs.2000 from 2205),
Mumbai – Kochi (Rs.3200 from Rs.3250), Delhi –Bangalore(Rs.4,500 from
Rs.5,055).Delhi-Kochi(now Rs.6530) and Delhi- Trivandrum (now Rs.6.555).

On an Airbus A-300s IA offers 25 seats out of 212 economy class seats available,
while on Airbus A-320s and Boeing 737s it offers 15 seats out of 126 and 119 seats
available. IA officials said that on a daily basis the number of seats per flight would
decrease or increase by five.

Air Sahara, the third airlines in the sector, which has extended Sixer and Super Sixer
schemes to the peak season is observing the situation created by the Apex fare
extension.

Below is table which show the comparison of IA , Jet and Rajdhani train fare:

Sector IA Jet AC–I* AC-II *

Delhi-Mumbai 3,400 3,620 4,180 2,404

Delhi-Bangalore 4,500 5,053 6,385 3,470
Mumbai –Bangalore 2,700 2,839 2,943 1,954

*Rajdhani fares All figurein Rs

THE PLACE MIX

This dimension of marketing mix focuses on processing of services and
selecting the location points for airways and airlines offices keeping in view
the comforts and conveniences of the end users. By the processing of
services, our emphasis is on the involvement of channels, front-line-staff,
travel agency offices; offices of the tour operators or so from where service
flow and reach the ultimate users.

1. The air transport needs to make sure that the prospects don’t face
any difficulty in buying the tickets and make necessary arrangements
for the confirmation of booking.

2. It is also to be confirmed that the users booking their luggage are not
to face inconvenience.

3. The behavioral profile of the personnel working in offices of travel

agents and in the offices of the airways and airlines require due
attention. It is almost clear that airhostess looking attractive, smart,
well dressed are at your disposal to make available to you the defined
services.

4. It is also to be sure that the information network of the offices of the

travel agents is technology-driven and user-friendly.

5. The security checking, custom checking of passport, visa, income tax

clearance or so. It is essential that all the windows or the counters
offer the services as per the provision and promises.

6. Keeping in view the duration and nature of flights, the users are made
available lunch/ dinner, breakfast and drinks inside the aircrafts.

7. If in course of the journey, you are supposed to change the aircrafts

and the duration of stay is long, it is the responsibility of the airport
authorities and concerned airway and airlines to make available.
Another dimension of place mix is related to location and management of
the offices of the airways, travel agents, tour operates, transport operators
or so.

1. The main thing in the selection of a place is easy accessibility. The

place is required to be safe, well connected with all-weather proof
roads where all the required infrastructural facilities are to be
available.

2. The technology-driven booking system is to be ensured.

3. The water and sanitation facilities for the users and comfortable
seating arrangements need due care of the travel agents or airways
offices. The lighting, ventilation facilities need to be made available.

4. The interior decoration, furnishing, plantation need aesthetic sense

so that the users from a positive opinion regarding the airways
services.

5. The positioning of posters of airways and airlines which look

attractive and draw the attention of the users attending the offices
for chartered flights, packaged tour need due care.

6. It is in this context that we find management of place an important

component of the marketing mix.

In view of the above, it is right to mention that air transportation business

is linked with a number of allied services offered by a number of agencies
and organizations. If we don’t find cohesion and coordination the promised
services would hardly reach to the end users.
 THE PEOPLE MIX:

 What Airlines Look For?

One of the most common questions before an interview, and even afterwards
(especially for candidates who have been unsuccessful) is “Just exactly what are
they looking for?” This section aims to address that question before moving on to
the selection process (which is how airlines go about getting what they look for!).
In truth, there is no definitive answer because airlines all have their own unique
requirements, and choose their employees accordingly. However, here at least is
an insight into how cabin crew recruitment is gauged and managed.

In making a decision about the employment of cabin crew, all airlines consider
three prime elements:
Eligibility - Suitability - Specific Requirements.
Put together, these three elements form a ‘person specification’, which
interviewers use to determine if a candidate is right or not.

1) Eligibility
These are facts that can be determined either by physical or by documentary
evidence. Eligibility checks are likely to include: Does the candidate have a
passport? Does the passport allow the candidate to fly to all the countries the
airline operates to? Has the candidate residential status or permit to work in the
country he/she will be operating from? Is the candidate fit and healthy (has he/she
passed the airline medical check)? Has the candidate passed the airline’s ‘in
house’ isometric / numeracy / literacy / general knowledge tests? Has the
candidate provided adequate references? Can the candidate swim? (this last one
for ‘ditching’ drills - not the hotel pool!). An airline may have additional eligibility
tests depending upon its own specific requirements. These may include: Does the
candidate meet the required age profile? Does the candidate meet the required
height/weight profile? Has the candidate attained required educational (or other)
qualifications? Is there documentary evidence to support the qualifications the
candidate claims to have? Has the candidate acquired adequate experience in a
customer service or public contact role? Can the candidate speak a second
language? To what level of proficiency can the second language be spoken?

Not all airlines are the same, so in order to avoid disappointment candidates are
recommended to investigate eligibility criteria carefully before applying for a job.

2) Suitability
This is clearly more difficult to assess than eligibility, because instead of facts it
involves identifying the right personal qualities. These have been covered in the
section ‘The Role of Cabin Crew’, and airline managers will be looking for people
who can best fulfill that role. To summarise, the minimum requirement is for
reliable, presentable individuals, who can provide a service in a friendly way,
interact well with people, work as part of a team, and cope with difficult or
emergency situations. Airlines will also be looking for people whose performance
will not be adversely affected by the disadvantages of the job (see
‘disadvantages’ in previous section), and will readily accept direction/training.

3) Specific Requirements
Eligibility and Suitability are relatively basic requirements, which must be met in
all cases. Airlines then proceed to customise their ‘person specifications’
according to their own needs and standards. If for example an airline identifies
that an increase in the number of crew language speakers is required, then
language ability may be given precedence. Some airlines see above average
appearance/presentation as being crucial, whilst others prefer a higher degree of
charisma and personality. A good customer service background, nursing
experience, or educational qualifications may be more relevant to one airline than
to another. A new airline starting up may choose previous cabin crew experience
as a prime requisite. A prestigious and well established airline can often afford to
be even more particular, and demand a combination of preferred attributes. Some
airlines put emphasis on recruiting ‘in house’ (people who have been employed in
ground jobs, whom they have already had a chance to observe), but most open
the job up for external candidates as well.

In deciding upon their ‘specific requirements’, airlines have to take into

consideration many factors. These include their current crew profiles, state of the
jobs market, the number and quality of available candidates, the appeal/benefits
of their organisation, and of course the salary they are prepared to pay. They will
also take into account the airline’s current place or ‘niche’ in the market. For
airline managers it is a careful balancing act, where the rules of supply and
demand apply much like any other industry. They do have the advantage however
of offering a job which is regarded as desirable (and in some countries even
prestigious).

Once all the above considerations are taken into account, the person specification
will be completed. The different emphasis helps to explain why some people are
successful with one airline, and yet get rejected by another (their performance at
interview is obviously another factor, and that is something we are about to go on
to!). It is also true that candidates fail to be recruited by an airline at one attempt,
then succeed at a later date. This is usually because the candidate has acquired
better interview technique, or (more likely) extra skills, experience or confidence.
It can also be because the airline itself has revised its person specification.

So how to answer “Just exactly what are they looking for?” Put simply, airlines are
looking for the right people for their current circumstances. Do not be too
disheartened if you do not get in at the first attempt. You can always try again - or
apply to another airline!

 The Selection Process

Includes: Application Form. Preliminary Selection (Administrative Formalities,
Written Tests, Uniform Trial, Informal Talk, Presentation Exercise, Group Exercise).
Final Selection - Conventional Interview. Common Interview Questions (Background
Questions, General Motives and Perceptions, Perceptions About Customer Service,
Perceptions About Teamwork And Working Relationships, Managing Adversity,
Hypothetical Situations, Technical Questions). Medical Check. Training Course and
Assessment.

 Airline Services Training

In the airline industry, successful carriers are those, which respond quickly to
growth and changes. Effective, cost-efficient training ensures that employees are
prepared to meet those challenges while providing quality customer service to an
increasing number of travelers.

Drawing from more than 60 years of knowledge and real-world experience at

American Airlines, AMR Training Group offers the industries most in-depth and
consistent airline training programs.

Our expert staff develops custom curriculum designed to provide an air carrier's
workforce with the highest standards of safety and service.

 Training for every facet of air transportation:

Flight Attendant Training

Initial, transition, and recurrent training for both domestic and international
carriers.

Ground Passenger Service

Domestic and international ticketing, gate and operations

International reservations
Security and drug screening

AMR Group /American Airlines Foundation Training provides management training

and consulting which can significantly improve the direction and profitability of
your business.

 Customer Service Plan:

1 Offer the lowest fare available

Each airline will offer the lowest fare available for which the customer is
eligible on the airline's telephone reservation system for the date, flight
and class of service requested.
2 Notify customers of known delays, cancellations and diversions
Each airline will notify customers at the airport and on board an affected
aircraft, in a timely manner, of the best available information regarding
known delays, cancellations and diversions. In addition, each airline will
establish and implement policies for accommodating passengers
delayed overnight. A clear and concise statement of airlines' policies in
these respects will also be made available to customers.
3 On-time baggage delivery
 Each airline will make every reasonable effort to return checked bags
within 24 hours and will attempt to contact any customer whose
unclaimed, checked luggage contains a name and address or telephone
number.
4 Support an increase in the baggage liability limit
The airlines have successfully petitioned the Department of
Transportation to increase the baggage liability limit.
5 Allow reservations to be held or canceled
Each airline will allow the customer either to hold a telephone
reservation without payment for 24 hours or (at the election of the
carrier) to cancel a reservation without penalty for up to 24 hours, in
order to give customers an opportunity to check for lower fares through
other distribution systems, such as travel agents or the Internet.
6 Provide prompt ticket refunds.
Each airline will issue refunds for eligible tickets within 7 days for credit
card purchases and 20 days for cash purchases.
7 Properly accommodate disabled and special needs passengers
Each airline will disclose its policies and procedures for handling special
needs passengers, such as unaccompanied minors, and for
accommodating the disabled in an appropriate manner.
8 Meet customers' essential needs during long on-aircraft delays
The airlines will make every reasonable effort to provide food, water,
restroom facilities and access to medical treatment for passengers
aboard an aircraft that is on the ground for an extended period of time
without access to the terminal, as consistent with passenger and
employee safety and security concerns. Each carrier will prepare
contingency plans to address such circumstances and will work with
other carriers and the airport to share facilities and make gates available
in an emergency.
9 Handle "bumped" passengers with fairness and consistency
Each airline will disclose to a passenger, upon request, whether the
flight on which the passenger is ticketed is overbooked, if, within the
usual and ordinary scope of such employee's work, the information is
available to the airline employee to whom the request is directed. Each
airline will also establish and disclose to the customer policies and
procedures, including any applicable requirements (such as check-in
deadlines), for managing the inability to board all passengers with
confirmed reservations.
10 Disclose travel itinerary, cancellation policies, frequent flyer rules and
aircraft configuration
Each airline will disclose to the customer: (i) any change of aircraft on a
single flight with the same flight number; (ii) cancellation policies
involving failures to use each flight segment coupon; (iii) rules,
restrictions and an annual report on frequent flyer program redemptions;
and (iv) upon request, information regarding aircraft configuration,
including seat size and pitch
11 Ensure good customer service from code-share partners
 Each airline will ensure that domestic code-share partners make a
commitment to provide comparable consumer plans and policies.
12 Be more responsive to customer complaints
Each airline will assign a Customer Service Representative responsible
for handling passenger complaints and ensuring that all written
complaints are responded to within 60 days. Each airline will develop
and implement a Customer Service Plan for meeting its obligations
under the Airline Customer Service Commitment. Customer Service
Plans will be completed and published within 90 days and will be fully
implemented within 6 months. Airline implementation will include
training for airline reservation, customer service and sales personnel to
enhance awareness of the responsibilities involved in implementation of
the Customer Service Commitment and Plans. The Airlines will publish
and make available their Customer Service Plans: (i) on airline Internet
Web sites; (ii) at airports and ticket offices (upon request); and, (iii) to
travel and reservation agents.

TOTAL PRODUCT CONCEPT

COMFORT/ SPACE

TICKETS

CONNECTI FOOD
NG
FLIGHTS Core MULTI-
TRANSPOR CUISINE
AUCTION T
BRAND NAME CONCESSIO
(Air India, Jet NS
Airways)

COMPLEMENTA
RY GFITS

CAB SERVICE
THE CORE SERVICE:

The core service of the airlines industry is to transport goods and services to
various destinations. As the needs of the people increased the entire system
became more organized and formal. After this stage came the formal service

THE FORMAL SERVICE:

The airline industry has many players they had a brand name like ‘Air India’,’ Jet
Airways’,’ British Airways’. All of them had some common services to offer like
connecting flights, through check-in, tele check in, food on board, and
complementary gifts etc. Different classes like economy class, business class were
introduced. Air concessions are given to school students, old people etc. Singapore
airlines was the first to introduce small 8”television screen for every passenger.
The freebies are actually win-win deals between airlines and other services.
Sahara, for example, offers its passengers a ‘business-plan’ on two-way economy
class ticket, which includes a night’s stay with breakfast, STD facility for 3 minutes
and boardroom facility at the Park Hotel, New Delhi. To Delhi based fliers to
Mumbai, it offers a night’s stay with breakfast, airport transfers and VIP amenities
at The Orchid, Mumbai. For business class, the plan includes a stay at The Leela,
with buffet breakfast and late checkout.

All these added service helps the customer to decide upon which airlines he wants
to travel. As competition increased and the customers wanted more the next
phase evolved and that is the augmented service.

THE AUGMENTED SERVICE:

This phase is where the customer’s expectations are met, the service providers
kept working on new methods to meet the ever-changing customers demands.
The players introduced online booking, which was very convenient for the service
users.

British Airways business class has showers, its more spacious and comfortable.
Sahara airlines offer its passengers six different types of cuisine like vegetarian,
fat free, diabetic etc. They also have auction going on board. Virgin airlines has
gambling on board, they also have body massage to offer to their passengers. Air
Emirates has something called cab service, they have customized pick up and
drop cab service.

This phase is the most crucial one; with increased competition service will become
the final differentiation.

FUTURE SERVICE:

As mentioned above the customer needs keep changing, the future is

unknown.The customers may be looking in for more frequent inexpensive air
travel, something like air taxis. Super sonic speed this decreases the time thus
reducing the cost.
Characteristics of airline industry.

INTANGIBILTY

THIS IMPLIES----
 That services offering cannot be felt, seen, touched and therefore
can’t be tasted or sampled.
 No surefire way of measuring the benefits.
 No inventory, no storage.
 That there may never be any ownership of service offerings of the
customer.

How airlines have overcome these-----

Visualization
British airways shows in its advertisement a long chair on which even one
can sleep peacefully.

The mascot of Air India shows that it is always at customer’s service by

bowing down.

Physical representations.
Color
Jet airways have blue color tickets.

Uniforms
Air India’s staff always wears a printed blue sari.

Logos and mascots

Air India's centaur is the logo and maharaja is the mascot.

Building
Air India building at Nariman point.

Documentation
For airlines the sales can be measured on the basis of tickets sold. The
tickets makes the service tangible.

Facts and Figures

PERISHABILITY
Services are perishable; they cannot be stored. Therefore an empty seat on
a plane, is a lost opportunity forever.

OVER MARKETING
Two hours check in before departure

Managing demand
Negative demand
The September 11 event had made an impact on the customer’s mind for
negative demand.

Air-India is India's national flag carrier. Although air transport was born in
India on February 18, 1911 when Henri Piquet, flying a Humber bi-plane,
carried mail from Allahabad to Naini Junction, some six miles away, the
scheduled services in India, in the real sense, began on October 15, 1932. It
was on this day that J.R.D. Tata, the father of Civil Aviation in India and
founder of Air-India, took off from Drigh Road Airport, Karachi, in a tiny,
light single-engined de Havilland Puss Moth on his flight to Mumbai (then
known as Bombay) via Ahmedabad.

Tata Airlines, as Air-India was then known, consisted of one Puss Moth, one
Leopard Moth, one palm-thatched shed, one whole time pilot assisted by
Tata and Vintcent, one part-time engineer, two apprentice-mechanics and
unlimited optimism. In 1933, the first full year of its operations, Tata
Airlines flew 160,000 miles, carried 155 passengers and 10.71 tonnes of
mail. Tata Airlines was converted into a Public Company under the name of
Air-India in August 1946.

By the beginning of 1947, Air-India turned its attention to the international

scene. Towards the end of the year, an agreement was reached with the
Government of India for the formation of Air-India International Limited to
operate international services
50Air-India's inflight service is globally recognised in the industry for its warmth
and personalised service. In our endeavour to offer you luxury and service that a
discernible regular flyer looks for through out the journey, we have provided
conveniences that we hope will give you all the comfort you need to make your
travel a pleasurable experience on board our flights.

On Boeing-747-400?

Air-India has special features just for your comfort on this state-of-the-art aircraft.
Call the world from your seat- using the Inflight Sky Phone. All major credit cards
are accepted for availing this facility half an hour after take-off and before landing.
Our cabin crew is on hand to assist you.

Leisure Sky High

In addition to the food, the wines, the champagnes and the choicest liqueurs, we
can keep you absorbed with our inflight entertainment programmes selected on
the basis of passenger feedback. Namaskaar - Air-India's popular inflight
magazine, is a myriad collection of features on India and popular destinations
abroad.

Just for You

Colognes, moisturizers and after-shave lotions for inflight use are available in the
toilets. Medicines for treatment of minor discomforts are available with the Cabin
Crew. Additional pillows and blankets can be requested to make yourself
comfortable.

Kids Special

Toys and games are available for children upto the age of 12 yrs. Books and
comics are also available on request. Special assistance for babies and infants is
available on request.
 ~~l Air-India flights are non-smoking flights.

Traveller's Delight

Keeping our high standards of commitment

and excellence throughout, we at Air-India take
pride in catering to your taste and offering you
the finest cuisine onboard. .

On-Board Food Festivals

On select routes, in addition to the regular fare, our

First and Executive Class flyers can look forward to
our Food Festivals in the air. We invite leading
restaurants in India and abroad to participate. The
first in this series was The Gourmet Experience
launched on the India / USA / India route in May
1988. Leading restaurants of 5-star hotels, the Taj
and the Oberoi group in Mumbai, Delhi, London and
New York participated in this festival, offering
exclusive Continental / Indian delicacies on-board.
There was a treat for lovers of Chinese food: The
Chinese Food Festival, in March 1990, held in
collaboration with China Garden, Mumbai's leading
Chinese restaurant. Then we had the Cuisine de
Fusion, presenting a unique blend of the best Indian
and Continental eats, in collaboration with the Taj
Group of Hotels. This was held in February / March
1993 on Mumbai / Delhi - London flights. And there
have been many ever since... the Pakhtooni Dawat,
Shakahari Food Festival, Goan Food Festival. These
festivals come complete with special menu cards -
which are treasured as collectibles, swizzle sticks,
match boxes and even the right ambience to add to
the gourmet pleasure.
Unwind, sooth yourself or relax for a while with our captivating in-flight
entertainment. You could choose from a variety of music, both traditional and
western or may be catch up on some of the latest films.

We offer you an exclusive peek at some of the clippings of the movie's onboard
our flights or just listen in to a sample of the varied kinds of music.

Look up the inbound theatre section if you are traveling into India and the
outbound theatre section if you are headed from India to another country.

So just sit back and enchant yourself with entertainment galore and have a
pleasant flight.

Shopping is every traveler’s irresistible weakness and to make sure you have
something fancy, something useful to buy till you land at your destination, we
have on board an array of items to choose from. .

Jet Airways, India’s “World Class Domestic Airline”. Jet Airways operates over 245
flights daily to 41 destinations across the country. The rapid expansion of our route
network has earned us the prestigious Air Transport World Award 2001 for
Market Development. They also pride themselves in having the youngest fleet of
aircraft in India, consisting of the modern 737-400/700/800 and the ATR 72-500.
 They strive to provide service of the highest standard to our customers, both on
ground and inflight. They pride themselves on having an unbeatable record of on-
time flights and providing world-class frequent flyer benefits to our customers,
through our alliances with British Airways, KLM Royal Dutch Airlines and Northwest
Airlines.

They were the first Indian airline to receive the World Travel Market Global Award,
the world's premier global travel event in London. They have also won the H&FS
Domestic Airline of the Year Award twice. And Citibank Diners Club has chosen
them as India's best domestic airline for their excellence in service.Today, they
are India's most preferred airline for their consistent performance.

We believe... Our mission statement

Jet Airways will achieve this pre-eminent position by offering a high quality of
service and reliable, comfortable and efficient operations. Jet Airways will be an
airline which is going to upgrade the concept of domestic airline travel - be a
world class domestic airline. Jet Airways will achieve these objectives whilst
simultaneously ensuring consistent profitability, achieving healthy, long term
returns for investors and providing its employees with an environment for
excellence and growth.

Where we started:
On May 5, 1993, Jet Airways was set up with the objective of providing high quality
and reliable air travel in India. A very high percentage of the Indian domestic air
traffic comprised business travellers. Therefore, our focus from the very beginning
was to emerge as the "Businessman's Preferred Airline".

Our Inflight Services is now ISO 9001:2000 Certified

Jet Airways is now one of the few airlines in the world to
receive the prestigious ISO 9001: 2000 certification for our
Inflight Services.
The ISO 9001:2000 is one of the most stringent quality
management systems worldwide and is only awarded to
those

companies whose quality standards are impeccably high. What this means at Jet
Airways, is that our Inflight Services Department is monitored for quality at every stage
and at all times. What this means for you, is world class quality every time you fly with
us.

ISO 9001: 2000 certification for our Inflight Services - Inspired by you.
 Jet Airways Citibank Gold Card

They now offer our Jet Privilege members an opportunity to

earn free flights even faster with the Jet Airways Citibank Gold
Card. In association with Citibank N.A. and MasterCard
International, this is the country's first co-branded credit card.

About the card

At Jet The
Airways we understand
membership thatprimary
fee for the our overseas
card is Rs. 2000 p.a. You can also get add-
passengers have special needs.
on cards for up to two membersSo whether youfamily (above 18 years of age) at a
of your
have to catch a connecting flight, retrieve
special fee of Rs. 1000 p.a., per card. your
baggage, transfer between airport terminals, or
even check flight schedules, we are equipped to
offer you all the information and assistance that
you might need to make your journey more
pleasant and comfortable.

At your Service

At Jet Airways we realize that some of their passengers require special attention.
Young children can get quite restless on a flight, while our senior passengers may
need some assistance. We thus offer a host of services tailored to their special
needs.

• Senior Citizens
• Unaccompanied Minors
• Disabled Passengers

We are also proud to be the first domestic airline in India to run a special program
called 'Jet Kids' for the children on our flights.

 Senior Citizens

Senior Citizens can avail of travel concessions on

Economy Class on all the sectors Jet Airways
operates. Passengers above the age of 65 years
are entitled to a concession on the basic airfare.
This concession is available in Indian Rupees for
Indian nationals and in US Dollars for foreign
nationals.

To avail of this concession, just fill out the “Concession Form” and submit
it along with a photograph and your proof of date of birth. They also
have special wheelchair facilities for our elderly and disabled
passengers. If you need any assistance, please do not hesitate to
approach a member of our staff.
 Jet Kids Jetkids is our special programme for the younger
patrons of Jet Airways. Children between the ages
of 2 to 12 years need not just look forward to the
excitement of flight take-off and landing, for we
also have other surprises for them. There are
exciting gifts for children on board, to occupy
their agile minds.

 Jet Elite

Your boarding pass also takes care of your lodging…

Jet Airways, India’s favourite domestic airline, brings you JET ELITE, a unique
offer that turns your boarding pass into a lodging pass at some of the best hotels
across the country. All you need to do on your next business trip is check your
schedule, and refer to our city-wise list of participating hotels. Then, just show
your Jet Airways boarding pass at the reception counter of the hotel in which you
choose to stay to avail of fantastic discounts and offers. They also have special
offers to our JP Gold and Silver Card members.

 S p e c i a l H o t e l O f f e r s for Overseas Transit Passengers

The next time you are flying to India and have to take a
connecting flight from Mumbai, Delhi or Chennai to various
Indian destinations, you could avail of fabulous hotel offers
especially
meant for Jet Airways passengers in transit. On arrival in Mumbai, Delhi or Chennai,
you could avail of special room rates at select hotels, located close to the airport
and relax comfortably until ready to board your connecting domestic flight. This
offer is open for overseas transit passengers staying up to 12 hours at special rates.
This would facilitate paying only for a brief stay rather than having to pay for full
room rates. One can avail of this offer by showing the Jet Airways ticket at the time
of checking-in at the hotels in the following cities