an examination of air india's under performance in india aviation industry

8/13/2019 An Examination of Air India's Under Performance in India Aviation Industry

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AN EXAMINATION OF AIR INDIAS UNDER PERFORMANCE IN INDIA AVIATION INDUSTRY

NABEEL PALLIYALTHODI Reg no:0050VMVM0632 Page1


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Table of Contents1.0.INTRODUCTION .................................................................................................................................. 5

1.1.COMPANY PROFILE ....................................................................................................................... 6

2.0 PURPOSE AND PROBLEM STATEMENT......................................................................................... 8

2.1. RESEARCH QUESTIONS ....................................................................................................................... 8

2.3. RESEARCH OBJECTIVES ...................................................................................................................... 9

3.0.RESEARCH FRAME WORK ...................................................................................................................... 10

3.1.RESEARCH OUTCOMES ..................................................................................................................... 11

4.0. LITERATURE RIVIEW ............................................................................................................................. 11

4.1. MERGER ........................................................................................................................................... 11

4.2. LOGISTIC ........................................................................................................................................... 13

4.2.1AIR INDIA CARGO ........................................................................................................................ 13

4.3. FINANCIAL ........................................................................................................................................ 15

4.4. COMPETITION .................................................................................................................................. 16

4.4.1. Rising Fuel Prices ....................................................................................................................... 19

4.4.2. Cognition And High Airport Charges ......................................................................................... 20

4.5. SAFETY .............................................................................................................................................. 20

5.0. RESEARCH METHODOLOGY ................................................................................................................. 22

5.1. RESEARCH DESIGN ........................................................................................................................... 22

5.1.1. Exploratory research ................................................................................................................. 22

5.1.2. Conclusive Research .................................................................................................................. 23

5.1.3 Descriptive research design ....................................................................................................... 23

5.1.4. Casual Research ........................................................................................................................ 23

5.2. Research Strategy ........................................................................................................................... 24

5.2.1.Archival Research ....................................................................................................................... 24

5.1.2. SURVEY RESEARCH .................................................................................................................... 24

6.0. SAMPLE DESIGN ................................................................................................................................... 24

6.1. Sampling Methods ........................................................................................................................... 25

6.1.1. Probability Sampling ................................................................................................................. 25

6.1.2. Non-probability Sampling ......................................................................................................... 25

7.0. DATA COLLECTION ............................................................................................................................... 26

7.1. Primary Data .................................................................................................................................... 26


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7.2. Secondary Data ................................................................................................................................ 26

7.3. Quantitative Data ............................................................................................................................. 26

8.0. COLLECTION METHODS........................................................................................................................ 27

8.1. Pilot Studies ..................................................................................................................................... 27

8.2. Focus group interviews .................................................................................................................... 27

8.3. Survey Research Methods ............................................................................................................... 27

9.0. DATA MESHUREMENT ......................................................................................................................... 28

9.1. Rating Scales .................................................................................................................................... 28

9.2. Types Of Rating Scales ..................................................................................................................... 28

9.3. Summary Of Research Design .......................................................................................................... 28

10.0. RESEARCH INSTRUMENT: QUESTIONNAIRE....................................................................................... 29

10.1. Procedures Involved In a Questionnaire Design ............................................................................ 29

11.0. DATA ANALYSIS .................................................................................................................................. 29

12.0. ETHICAL ISSUES .................................................................................................................................. 29

13.0.GHANT CHART ..................................................................................................................................... 30

14.0. ESTIMATED EXPENSE FOR THE PROJECT (BUDGET IN INR) ................................................................ 30

15.0. REFERENCE ......................................................................................................................................... 31

16.0. QUESTIONNAIRE..32


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List of tables and figures

NAME Page Number

Indian domestic passenger growth 2006 2011 5

Air India destinations 7

Market share of Air India 7

Air India Milestones 8

Research Framework 10

Trend in GDP and Cargo Growth rate 13

Trend in growth of Air freight 14

Aircraft movements 17

Passenger movements 17

Domestic market share of Indian Aviation Industry 18

Financial overview of Air India limited 19

Price rice of ATF in last six years 19

Air India Dream liner 21

Different between exploratory and conclusive research 23

Table of required data collected for research 27

Gant Chart(Time Schedule) 30


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1.0. INTRODUCTION

It was in December 1912, the first domestic flight of Indian State Air (ISA) took off its journey

from Delhi to Karachi. ISA was collaborated with imperial airways of UK which marked as a

beginning to Indian aviation industry .Again in 1912 TATA Airlines started its service as air

male. Later own in 1932 it endeavored in taking scheduled passengers traffic. In 1946 TATA

airlines was renamed as Air India. Air India International was established by government of

India and Air India.

Liberalization policies have made Indian aviation industry to maintain its upward graph of

growth over the years. Though Indian aviation industry was fully owned and controlled by

government after independence, later on liberalization added value to the industry by the

emergence oF new and private airline companies e.g. Tata Airlines, Indian National Airways,and Air service of India etc. Now about 82% of total domestic market share is distributed among

private airline companies like Indigo air, Go Air, Jet lite and the rest18% is owned by Air India

and Indian (government Airline companies).

Due to the competition companies provide low cost services created many customers to use

domestic flight services instead of other modes of transportation. In the year 2007About 96

million passengers were using airlines to travel, while only 6 million where carried on through

railway system. But in 2007-08 the airline industry showed a serious decline due to high cost ofoperations, intense competition, unsustainable low fares.

(CAPA, n.d.)

0

2000000

4000000

6000000

8000000

2006 2007 2008 2009 2010 2011

Indian domestic passenger numbers

2006 - 2011


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1.1. COMPANY PROFILE

Air India holds its pride worldwide through its customers and cargo services. It continues to be

Indiasnational airline carrier. History of Air India starts back in 1932, October 15 when JRD

TATA: Indias first true business icon,Launched TATA airlines. They started their service with

one Puss Moth, one Leopard Moth, one palm-thatched shed, one whole time pilot, one part-time

engineer and two apprentice-mechanics. Business tycoon JRD TATA ,father of civil aviation in

India both founder of Air India took off their first flight from Dring road airport ,Karachi in a

small light single-engine de Havilland Puss Moth a 2-3 seat propeller aircraft to Mumbai via

Ahmadabad. On 1946 July 14thTata airlines was converted into a public company and named as

Air India.

Air India was formed on March 8, 1948.on June 8, 1948 Air Indiasfirst international flight took

off. The flight was scheduled weekly from Mumbai to London via Cairo and Geneva with a new

a Lockheed Constellation aircraft. Due to financial crisis that effected the operations government

decided to nationalize the air transport. On August 1 1953, two autonomous corporations were

created. Indian Airlines was one of these, which was formed by merging 8 domestic services to

operate domestic services. While Air India concentrated on international services. The word

'International' was dropped in 1962. With effect from March 1, 1994, the airline has been

functioning as Air India Limited.

Today Air India has extended its operations to 55 destinations with a fleet size of 102 aircrafts

excluding its subsidiaries. Air India operates both passenger and cargo, and operates a low cost

carrier to international destinations E.g. Dubai. Air Indias fleet consists of 38 aircrafts. These

include Airbus A310-300, Airbus A330-200, Boeing 747-400, Boeing 777-200, Boeing 777-

200ER, Boeing 777-200LR, Boeing 777-300ER and Boeing 787-8.


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Air India destinations

(India, 2012)

Air India Express was established in May 2004 as a subsidiary of Air India under a new business

strategy. Air India Express got the delivery of first aircraft Boeing 737- 800 on February 22,

2005. The airline began operations on April 29, 2005 with inaugural flight from Theravada

nthapuram to Abu Dhabi.

(DGCA, 2012)

81%

19%

Marketshare of Airindia

Others

Air India


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AIR INDIA MILESTONES

Name of TATA Airlines have changed and made Air India a public limited company

1948-On 8thJune Air India started regular service from Bombay to London

1954-services to Bangkok Tokyo Hong Kong and Singapore

1970-Air India Head office inauguration in Bombay

1986-delivary of airbus A310-300,largest passenger service operator in this series

1988-started using Boeing 747-300ms,cargo passenger configuration

1993-First long haul flight to New York Boeing 747-400,named as konark

1996-setup of second us gate, OHare International airport Chicago

1999-Chhatrapati Shivaji International Airport in Mumbai as main hub.

2000-services to Shanghai, us third gate at Liberty International Airport

2007-Offer to join star alliance

2009-1 march Frankfurt made as its European hub for north American operations

Record of 6.2 fatal events-first accident 1950,second 1985 23 June

2.0 PURPOSE AND PROBLEM STATEMENT

Purpose: To understand the issues & challenges faced by Air India limited in Indian aviationindustry.

Problem Statement:An examination of Air Indias under performance in Indian Aviationindustry

2.1. RESEARCH QUESTIONS

1. What is the effect of merger on the underperformance of Air India in Indian aviationindustry?

2. How dose logistics contribute to the underperformance of Air India in Indian aviationindustry?

3. What is the effect of finance on the underperformance of Air India in Indian aviationindustry?

4. What is the effect of safety on the underperformance of Air India in Indian aviationindustry?


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5. How dose competition effects on the underperformance of Air India in Indian aviationindustry?

2.3. RESEARCH OBJECTIVES

To examine how merger affect on the underperformance of Air India in Indian aviationindustry.

To investigate how logistics contribute to the underperformance of Air India in Indianaviation industry.

To analyze the effect of safety on the underperformance of Air India in Indian aviationindustry

To survey how competition can effect on the underperformance of Air India in Indianaviation industry.

To understand the effect of finance cost on the underperformance of Air India in Indianaviation industry


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3.0. RESEARCH FRAME WORK

MERGER

LOGISTICS

FINANCIAL

COMPETITION

SAFETY

UNDER PERFORMANCE OF

AIR INDIA IN INDIAN

AVIATION INDUSTRY


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3.1. RESEARCH OUTCOMES

Air India had a prestigious and monopolistic dominance over the market till 1990s, since it was

founded by JRD TATA as TATA Airlines a division of TATA group. The transformation of Tata

airlines to Air India which was taken over by Government of India as its National air carrier had

great expectations. Till 1990, the airline performance was purely remarkable. But when the

country decided to open its market for private players in mid 1990s due to liberalization

emergence of both local and foreign players entering into market lead Air India to start loosening

its undivided market share, other than facing competition.

Now they are not delivering things in a right way .They have to improve and solve some of the

major problems like bloated workforce, political interference, under investment in its fleet, and a

weak management hence improving their performance, efficiency and competitive strength.

4.0. LITERATURE RIVIEW

4.1. MERGER

One of the biggest problems faced by Air India is the merger with Indian airlines which was

actually an unplanned act. The planning was set like the first year operations was focused on

planning the work force which stated with a management team of 400 people .It was done on

basis of the master plan to split the whole into five strategic units. They are passenger, cargo,

ground handling, MRO and a low cost carrier. The flow of information and decisions was like 5

CEO s for these five strategic units, reporting to one group chairman and Managing Director.

Among these two managers have only little independence. Due to the government policies, they

have to wait for the approvals from Ministry of Aviation not only for taking decisions but also in

case of setting new routes. According to Kapil Kaul, CEO of the Centre for Asia Pacific

Aviations India, the government will ultimately privatize the carrier. This was the situationwhere the management never co operated with the government to privatize the airline and Air

India was busy in smoothing the ruffled attitudes of the unions. After the merger of Air India

with Indian airlines, the combined workforce of the company was egger to know about their job

function and prospects that impacted by the merger. There was a great protest from the

employees ranging from pilots, cabin crew to ground workers and even pensioners regarding


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their medical other benefits that should be continued. Like every merger Air India also

undergone Sevier oppositions from its employees. Regarding the employees they are unaware of

their future roles and wages. Most of the wage agreement and seniority issues where corrected

before the process of merging. But the management never took any serious action in resolving

these issues and that lead to pilot strike and which made a huge loss for the company.

It was clearly stated that the compensation of Air India and Indian airlines pilot will be the same

by the management of Air India. But in reality the promise was a false statement. The pilots of

Indian airlines were so angry towards the management for not getting the same salary as Air

India pilots do, for the same identical work for same organization. Due to these miss behaviors of

management some of the senior staffs like gustav baldauf Chief Operating Officer left the

company.

Uncertain future and poor financial conditions have lead Air India to watch its employees around

600 in number to quit their jobs. It includes 24 Pilots and management pilots, 163 cabin crew and

executive cabin crew members. A senior Air India executive staff reported that 6 engineers

including executive engineers, 171 executives and general category officers, 59 technicians

and201 general category employees left the company.

The current employee strength of Air India is around 26481,among them 1439 are pilots andexecutive pilots, engineers and executive engineers employed are 1419,executives and general

category officers are 5064,cabin crew and cabin crew exicutives,3351 technicians cum service

engineers and 12146 general category employees. A number of 223 employees took VR or

resigned in 2011,178 in 2010 and 128 in 2009.this year (2012) till May 95 employees left the

company which includes 45 resignations and 47 VRs. In the year of 2011 most of the pilots left

Air India because of the uncertainty that the realized in the future. Due to the unplanned merging

of Air India with Indian airlines in 2007 the company is facing a great trouble. 92 employees

resigned and 131 employees chose VR. In 2009 61 employees resigned and 69 chosen VR while

in 2010 17 resigned and 118 took VRS. With Air India having the highest aircraft to employee

ratio of 1:258, it has launched a VR scheme for permanent and confirmed employees who are

above 40 years of age and have rendered a continuous service of 15 years.


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4.2. LOGISTIC

India has shown a pretty good growth in domestic and international trade over last few years.

Indian air cargo services started from late 1980s, were the government allowed air taxi operators

to provide right service for the customers in an aim to boost up the tourism opportunity of India

in all major routes. with in no time the air cargo sky policy was came to effect and every airline

was allowed to operate both scheduled and non scheduled cargo services from and to airports in

different parts of the country where ever customers facilities are available. They were free to set

the rates for major export products. Here shows the trend in cargo growth rates which

contributed to countries GDP.

(RBI, 2011)

4.2.1AIR INDIA CARGO

Air India cargo a strategic unit of AI has taken a nose dive. The cargo aircraft used by Ai is over

sized for its domestic operations and the one used for international operations is too small. Other

than the financial crisis that Air India suffers, it is the lack of efficient distribution networks,

proper warehouse facilities, mismanagement and lack of other supportive infrastructure that

drives away the revenue from cargo business of Air India There are some small and well

managed operators like blue dart and gati. They are successful in running their business with a

little number of aircraft, the two major airlines who are making serious losses in cargo business

are Air India and Deccan airways.


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One of the major problems faced by Air India is that still they are using old aircrafts for their

domestic cargo operations which have been idle for long time. As a solution of these it has to be

re configured or changed. Around 40 such aircrafts are set idle for a period of time. It has set

for cargo operations, but never given a face lift. Giving uplift to the cargo business by Air India

is one of the options of turnaround plan, which will help to slash down the huge amount of loss

generated by Air India.

Taking aside the economic crisis India is more an idealistic market that its dependents in

developed nations like Japan, France, Germany and Britain. This is assessed by a worldwide

independent survey. Different airlines came up with different dedicated services. But Air India

was the first one to enter into Indian arena, and in 2008 Air India went on an explanation of 255

percentages. The emergence of kingfisher and jet airways to the industry has made a greatcompetition for Air India by eating up some of its shares by providing even door to door cargo

delivery.

(AAI, 2011)


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According to Indian cargo industry studies says that the cargo volumes in India are not expected

to cross 2.6 million tones. In such a case Air India is providing huge aircrafts for its domestic

operations. This creates a huge amount of expenses were the factor, optimum utilization of

resources is not practiced.Air India lacks a good distribution networking system, especially factors like trucking and hub

system. It also shows an attitude of mismanagement for example 40 aircrafts has been set idle for

its cargo operations. That itself was suppose to be done long back. There is also lack of basic

infrastructure facilities at airports for cargo operations the development of Indiasmulti model

airport for cargo operations was stopped due to the hit of economic crisis and by the SEZ

imposed by the government. Initial plan is to expand and construct a new runway for its future

operations.

4.3. FINANCIAL

It is not simply a financial issue that the national career is facing. The airline operations itself are

not in track due to the walk out of senior staffs like gustav baldauf, the chief operating

officer(COO), Pawan Arora, AI Express COO and Stephen Kumar, chief training officer. Air

India is undergoing its serious

Issue of draining out of skillful employees and the same will increase in coming future. Around

13 of its directors have left and 30 of 50 general managers are expected to retire by next year the

company will have to a halt or will set for its new talent hunt.

The air line shows a worst situation for last two years because of its shortfall of human

resources. The annual salary bill of Air India is around 3000 crore. it is due to the over sized staff

strength both experienced and underperforming which is considered as one of the reason for

financial crisis where the company is again operating on a loss of 13000 crore ever since its

merge with Air India in 2007.The management itself is not taking any action on these issues.They are least bothered of the retirement and resigning of employees and their argument about

the situation is whenever a need in human resource arises the will do the necessities.

Air India is undergoing a serious issue in its financial side. The government has allowed 30,000


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Crore rupees for its financial restructuring, though it holds past debts with the company. The new

debt is done on some new fresh agreements from the company.

The company is forced to rework on its issue of new non convertible debentures. But the aviation

sources states that financial re structuring is not an easy task and it may create further loss to the

company in its service costs. A financial re engineering process is being taken over by the

aviation ministry because of Air Indias accumulated losses of 20 000 crore and a debt of 43000

crore which is being focused to be restructured. Air India was suppose to issue bonds of Rs 7400

crore after receiving the guarantee to banks, LIC and EPFO to take away existing loans. This is

even an additional loan other than bank loans of Rs 11000 crore, which have already a

restructured one. The scene from the government is different approach where the finance

minister intact about this proposal. Even they have not concluded on the decision of reworking of

aircraft loans of Rs 19000 due to the indecisions in northern block.

The process of financial restructuring has been started since on year, with the restructuring of

bank loan acquired before. The cabinet committee of economic affairs was forced to appeal over

the ministry of finance that the situation of lenders will be more worst if the 10000 crore is

allotted due to overdue. After a subsequent meeting with civil aviation ministers Ajit Singh and

Pranab Mukherjee, the have decided to rework and it was done. The following meetings which

were held on top aspects like occupancy, on-time performance, fleet utilization and

rationalization of employees pay structure by the planning commission chairman montek singh

ahluwalia and p chidamparum who raised the issue. It is estimated that the rework will cover the

debt by 2012.

4.4. COMPETITION

Indian aviation industry is facing a tremendous competition after the year 2007.The year 2007

was known for merger and collaboration in the skies. It was mainly happening due to expand ion

and to face the serious competition in the market. The major merger happens between jetSahara and Air India and Indian airlines. The merger was materialized in the year of 2007.soon

after there was other merger between Kingfisher- Deccan deals. The face of completion screwed

more at this time.

There was a remarkable growth in last two years in both in passengers and aircraft movements


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AIRCRAFT MOVEMENTS(000)

(Limited, 2011)

PASSANGER MOVEMENTS (IN MILLIONS)

(Limited, 2011)

The total market share of domestic aviation is distributed among main 7 players. They are as

follows:

0

50

100

150

200

250

300

350

400

450

April 2011-2012 April 2010-2011

International

Domestic

0

5

10

15

20

25

30

35

40

45

April 2011-2012 April 2010-2011

International

Domestic


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(DGCA, 2012)

There are certain factors that drives the Indian domestic aviation industry in its grows are Rise of

Consumerism ,Increasing Tourists and Business Travel, Emergence of Low Cost Carriers in market

which opens the untapped market, It has shown that there is a strait link between economic growth and

Air traffic, The aviation sector of India is in a transformation stage, stretches from a over and under

regulated sector to a more open and liberal and investment friendly phase since the new government

emergence. The civil aviation division has also relaxed its policies in air traffic rights.

These factors have lead to increases in the number of players in market after 2000 and also to

face serious competition for the exiting monopolistic airline like Air India. The last few years has

shown that Air India while compared to its competitors in domestic shows a dwindling financial

decline.

(capitaline, 2007)

As like every airline there are certain common factors that effects Air Indias operations they are:

19%

18%

18%8%

19%

13%

5%

DOMESTIC MARKET SHARE OF INDIAN

AVIATION INDUSTRY

Indi Go Air India(Dom) Jet Airways Jetlite Kingfisher Spice jet Go Air


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4.4.1. Rising Fuel Prices

By looking into the Aviation Turbine fuel price that available in Indian market, It shows a higher

price tag compared to global market.$5 5 of the operational expenses accounts the price. ATF is

one of the important factors in the operation cost of airline business. Though it shows a slight

increase of 10 %, it will affect the cost of operations by an increase of 4% which will duly affect

the financial health of an airline business. Until April 2001 the price of ATF was determined by

the Indian government with the help of administrated price mechanism. This system was

maintained for giving cross subsidy for socio economic reasons, the price of some daily

petroleum products like kerosene and diesel was sold on a subsidized price by setting high price

for ATF. But this policy was relived on 2001 April and gave authorization to oil companies to set

the price of ATF upon the input cost and world market prices. The impact of this decision was

worse that the price of ATF has increased with the wide fluctuation in the world market.

(Oil, 2011)

(Oil, 2011)


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4.4.2. Cognition and High Airport Charges

Many of the Indian airports are not providing sufficient infrastructure and ground facilities. Due

to this there is a situation of overcrowding in the airport which leads to wastage of fuel.

According to the studies it is said that if a flight hang around through the sky for more 30

minutes because of some clearance problem, it will lose its fuel efficiency factor by consuming

20 to 30 % of extra fuel which will increase the operational cost. Half an hour of flying may cost

50000 extra for a flight, and it is stated that average every flights are delayed due to the ground

and landing clearance problem which makes an average loss of 40 lakes/ day. The international

airport changes are so high compared to the domestic ones. So the domestic airiness are

incurring more expenses in international airports without any additional benefits. The tariffs

charged by Indian airport are pretty high while comparing with Asian and gulf countries. India

deserves a LCC airport of its domestic LCC careers for their operations because they are

providing more charges when compared to its international peers.

4.5. SAFETY

Air India has expanded by purchasing A 787 series flight from Boeing. It is named as the

Dreamline.On its first flight to Bangalore before takeoff there was a technical error raised.

The cooling unit, which is meant for the cooling the aircraft engine and its other equipments

from overheating has malfunctioned. The issue was sorted out in 30 so the first flight itself was

delayed by half an hour. Later there was a confusion whether to fuel it or not and again the

operational decision was to fly and again lost another half an hour for its re fueling. Though

these are safety issues as well as time delayers. Air India is further banking on dream liner to

turn around the company by cutting the operational cost with its feature of fuel efficiency


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(india, 2012) AIR INDIA DREAMLINER

Regarding safety issues some of the pilots themselves are criticizing the airline for its poor

safety measure standards. Especially the training procedure which is not sufficient for its new

pilots for the company expanding. The senior staffs itself has no confidence on the airlines

how it will cope up from its situation. Alexandra graham who was formerly working with

American airlines were trained by Air India and left in middle of it because of less

consideration of safety standards.

One of the main safety issue reported is that the pilots left the cockpit even by the door

unlocked. This practice has been taken into care after the 9/11 attack but here given a less

consideration. Other issues like the caption leaves the cabin by giving the entire control to the

co pilots for even long hauls and smoking in cock pits not considered as an offence.

The new recruited co-pilots are not enough for real time flying though they are good with

books, commented by Air Indian pilots. Even on an uncertain critical condition strikes for the

pilot the co pilot is not able to fly the aircraft down safely. Air India is not providing good

training for the co-pilots, mainly they are utilized for the radio and paper works inside the

aircraft.

Though the airline regulatory has set a standard that the co pilot is allowed to control on the

takeoff and landing, only when the fly with commanders who are eligible of giving training. In


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this circumstances Air India is not able to give training at this time of expand ion because of

lack of experienced pilots.

Though the airline had no major accident report except the 2010 Mangalore airport crash which

took 158 lives. The Serbian captain was landing from too high which he could have aborted. The

investigation reports says that the co-pilot fail to challenge any of the captains errors.Again an

incident was reported where the pilot went out from the cabin while flying and when the co-pilot

was adjusting the seat, the co pilot accidently knocked the settings and the flight dropped 7000

feet, before the captain returned to the cockpit.

5.0. RESEARCH METHODOLOGY

5.1. RESEARCH DESIGN

Research design is a detailed structure of the investigation process on a certain relevant topic. It

basically consists of elements like data collection, what are the instruments used to collect the

data, how the instrument is used to collect data, and finally the means for analyzing the data.

(Creswell, 2002)

The research design is basically divided into 2 they are:-

Exploratory Research Conclusive Research

5.1.1. Exploratory research

Exploratory research design is also called as formulateresearch design, which is a flexible design

mainly focus onformulating a problem for specific investigation or developing hypotheses from

an operational point of view .It is done mainly to get new ideas and insight about the topic.

(Panneerselvam, 2004)


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5.1.2. Conclusive Research

Conclusive research is actually meant for decision making process by providing informations

that is useful in attaining conclusions. It is basically quantitative in nature, i.e. it will show the

figures and values which can be summarized .This type of research is done with both primarydata,ie the data which is used for current study, and secondary data those are which being in

existing databases which is acquired from original datas.


Different between exploratory and conclusive research.

Exploratory Research project component Conclusive

General :Generate Insight Research Objective Specific: very InsightVague data Data Requirements Clear

well Defined Data sources Well DefinedOpen ended, Rough Data collection Applications Often structuredSmall, Subjective Sample Large, Objective

Flexible Data Collection RigidInformal typically qualitative Data Analysis Formal/Typically Quantitative

More tentative Inferences/recommendations More target Oriented

5.1.3 Descriptive research design

This research is more commonly used one. Its main objective is to find the reasons or causes for

a happening. For E.g. with this type of research it is possible to asses which category of market is

a consumer of cola, or to find the market share of a company or competitors from which the

company is facing competition. If the result of the research is positive or useful the researcher

should use strict requirements to find the accurate results.


5.1.4. Casual Research

This type of research identifies the effect of one aspect when it is related to another. More

specifically it defines the relationship between two aspects or variables. This research is used for

the hypothetical predictions of the market, with which the business plan is supported


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5.2. Research Strategy

Research strategy is completed with archival research and survey research here in study.

5.2.1. Archival Research

In this type of research datas are collected from company reports, journals, articles and customer

databases. Air Indiasannual reports and corporate information can be used to attain useful data

to know more about the company.

(Donald H. McBurney, 2009)

5.1.2. SURVEY RESEARCH

In survey research sociological investigation is carried out that uses questioners statistical survey

reports to understand how the public accept and react. In this case Air Indias customerservice

issues can be sorted out with this kind of research.


6.0. SAMPLE DESIGN

Sample design is the method of acquiring information regarding a given population. It is the

procedure that the researcher will have to adopt in choosing the items for the sampling.

Sample survey is one of the method of sample design.Its main intention is to make a sample

study and acquir conclutions about the targeted population.The advantages of this design are:

The method is cost effective It studies the issue or the problem in depth It is a time efficient It is practical


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6.1. Sampling Methods

The process of selecting a subset of randomized number of members of the population of a

study and collecting data about the attributes

(panner salvem,2004)

Here we are practicing two types of sampling methods

6.1.1. Probability Sampling

Probability sampling can be defined as random selection of an option. Before random selection

this the researcher should make sure that the elements considered for sampling have equal

probabilities. For example human beings most of the time practice probability sampling like

picking a name out of a bowl, tossing a coin etc.


Probability sampling can be again classified into three:

Stratified sampling Multistage Sampling Systematic Sampling

6.1.2. Non-probability Sampling

The non-probability sampling is a method where the samples are collected in a procedure that

does not give all the individuals in the population equal chances of being chosen.

(Explorable.com, 2012)

The non-probability sampling is divided into different branches:

I. Judgement Sampling

In this type of samplinh the judgment is don on the opinion of the interviwee.

II. Convenience Sampling

In this type of sampling the elements are chossen accoring to the atributes of the

interview


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III. Convenience Sampling

In this style of samplin the elements are chossen according to the convinience of the

intervieewe

IV. Qouta Sampling

Quota sampling is a form of non probability sampling in which the resercher has a

criteria to select for this type of sampling.this is done on a fixed quota of people.the

elements of this sampling is selected according to some pre defined chrecteristics.

Air Indias current ticket venting strategy san be analiysed with this form of sampling

where customers booking through .The feedback of this type of sampling is basicaly by

the mode of questioners through travel agents.here the information quality is maintained

ie the data collected is strait from the customer and is done ontheir convinience.( Ashley

Crossman)

7.0. DATA COLLECTION

There are two types of data to be collected for this research they are

7.1. Primary Data

Primary data is that sort of data that is fresh and gathered strait from primary sources. The data

will be more objective reliable and authentic.

7.2. Secondary Data

These are the data they are already published and available in open sources. For examples it can

be of journals books periodicals etc

7.3. Quantitative Data

Quantitative datasare those informations which are numeric in nature.These datasare

represented in different forms of histograms visuals charts tables etc.

The following table illustrates what data to be collected in the research.


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DATA NEEDS PRIMARY SECONDARY

QUANTITATIVEQUESTIONNAIRE PUBLISHED SOURCES

QUALITATIVEINTERVIEW

8.0. COLLECTION METHODS

Primary data plays an important role in any research study. Which provide fresh and untapped

information which can be used to link between companies and clients. It shows some of the

hidden informations that cannot be found in any of the secondary datas.(Adfoster, 2010)

Certain Qualitative methods used are;

8.1. Pilot Studies

A pilot study is done on a small scale that helps the researcher to find the convenient data

without doing the full research on certain topic. It gains the researcher with what they want to

know and how to find the best of it. This is basically done on to make a prcised form of

hypothesis . ( Ashley Crossman,2010)

8.2. Focus group interviews

An interview is done among a group people, focusing on the factors like background experience

knowledge in common

8.3. Survey Research Methods

SELF ADMINISTRATED QUESTIONARESSurvey research method is used here is self administrated questionnaires. It can be

prepared both digital as well as physical. Here the research is carried out on physical

questionnaires.


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9.0. DATA MESHUREMENT

9.1. Rating Scales

Rating scales can be used to understand the opinion of the respondents on a particular identified

issue it is usually used to harvest quantitative information .Rating scales are of different styles

9.2. Types Of Rating Scales

Simple Category Scale or Dichotomous ScaleThis is the simplest form of rating scale used.

E.g. have you tried Air Indians services? A. Yes B. NO

Likert ScaleThis includes providing point rates to each option in the form of number.

E.g. 5- Strongly Agree, 4- Agree, 3- Neither agree nor disagree, 2- Disagree, 1- Strongly

Disagree, 0Dont Know

9.3. Summary Of Research Design

SAMPLE UNIT:Customers who use to book their tickets at different travel agencies.

MODE OF SAMPLE : Non-probabillity Sampling

SIZE OF THE SAMPLE : 150

LOCATION OF THE SURVEY : India

METHOD OF COLLECTION : Self administrated questionnaire

DATA MEASUREMENT : Problem

PROBLEM : To An examination of Air Indias under performance in Indian Aviation industry


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FACTORS AFFECTING AIR INDIASUNDERPERFORMANCE IN INDIA AVIATION

INDUSTRY:

MERGER WITH INDIAN AIRLINES

HUMAN RESOURCES ISSUES LOGISTICS ISSUES COST SAFETY

10.0. RESEARCH INSTRUMENT: QUESTIONNAIRE

A list of questions that asked to respondents, which is designed to collect information which is

specific .Basic purpose of this data, is to collect the data, to make it comparable for analysis,reducing bias of the respondents, to make the questions varied and engaged. (BBC, 2012)

10.1. Procedures Involved In a Questionnaire Design

1. Drafting the questionnaire2. Pretesting the questions3. Scrutinizing of the questions

Questionnaire used for the research purpose can be open ended, dichotomous questions, close

ended.

11.0. DATA ANALYSIS

Data analysis is an important in research which helps the researcher to take nessacary data and to

avoid vague ones. The analysis is done with the help of number of tablesdiagrams figures that

are collected through research

12.0. ETHICAL ISSUES

Ethics can be defined as certain rule that defines between satisfactory and unsatisfactory

behaviors. It is a rule that the researcher should maintain inside the constraints of ethics while

doing research. Various issues should be taken into account while doing research like


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confidentiality, privacy, right of refusal informed consent, professionalism and impartiality and

plagiarism. (David, 2011)

13.0.GHANT CHARTNO DUTIES SEPTEMBER OCTOBER NOVEMBER DECEMBER

W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3

1 RESEARCHPROPOSAL

SUBMISSIO

N

2 PROPOSALCONFIRMA

TION AND

APPROVAL

3 LITERATURE

REVIEW

4 RESEARCHDESIGN

5 QUESTIONNAIRE

DESIGN

6 DATACOLLECTI

ON

7 REFERENCES AND

FINALISA

TION

8 REPORTWRITING

AND

SUBMISSIO

N

14.0. ESTIMATED EXPENSE FOR THE PROJECT (BUDGET IN INR)

Travelling expenseINR 500

Miscellaneous expensesINR 300 Paper costINR 120


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15.0. REFERENCE

AAI, 2011.AAI AND MOCA. MOCA.

Adfoster, 2010. Primary and Secondary data-What's the difference?[Online] Available at:

http://www.adfoster.com/primary_secondary_data_what_s_the_difference[Accessed 10 April 2012].

BBC, 2012. Questionnaires. [Online] Available at:

http://www.bbc.co.uk/schools/gcsebitesize/dida/using_ict/questionnairesrev1.shtml[Accessed 28

November 2012].

Beiske, B., 2008. Research Methods:Uses and Limitations of Questionnaires, interviews and case studies.

[Online] Available at:http://www.grin.com/en/e-book/15458/research-methods-uses-and-limitations-

of-questionnaires-interviews-and[Accessed 12 April 2012].

CAPA, n.d. Centre for Aviation & Indian DGCA. [Online] Available at:

http://centreforaviation.com/analysis/india-domestic-passenger-growth-slows-to-8-in-dec-2011-with-

growth-to-slow-from-2011-rate-of-166-66992[Accessed 31 jan 2012].

capitaline, 2007. Capital line. [Online] Available at:http://www.capitaline.com/new/index.asp.

Creswell, J.W., 2002. Research Design: Qualitative, Quantitative, and Mixed Methods Approaches.

Second Edition ed.

David, B.R.J.D..P.D., 2011. Research. What is Ethics in Research & Why is it Important?, 26 October. pp.3-

4.

DGCA, 2012. DGCA. [Online] Available at:http://dgca.nic.in/reports/Market.pdf[Accessed 30 November

2012].

Donald H. McBurney, T.L.W., 2009. Research Methods. Cengage Learning.

Dr.C.Rajendra, K., 2011. Research Methodology. 2008th ed. NewDelhi: APH Publishing Corporation.

Explorable.com, 2012. Explorable.Com. [Online] Available at:http://explorable.com/non-probability-

sampling.html[Accessed 24 November 2012].

Gill, J. & Johnson, P., 2010. Research Method For Managers. 4th ed. London: Sage Publications.

India, A., 2012. airindia.com. [Online] Available at:

http://www.airindia.com/SBCMS/Webpages/Destinations.aspx?mid=26[Accessed 30 November 2012].

india, A., 2012. Business today. [Online] Available at:

http://www.google.com.my/imgres?imgurl=http://media2.intoday.in/btmt/images/stories/air-India-

dreamliner2_505_092612123913.jpg&imgrefurl=http://businesstoday.intoday.in/story/air-India-
http://www.adfoster.com/primary_secondary_data_what_s_the_differencehttp://www.adfoster.com/primary_secondary_data_what_s_the_differencehttp://www.bbc.co.uk/schools/gcsebitesize/dida/using_ict/questionnairesrev1.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/dida/using_ict/questionnairesrev1.shtmlhttp://www.grin.com/en/e-book/15458/research-methods-uses-and-limitations-of-questionnaires-interviews-andhttp://www.grin.com/en/e-book/15458/research-methods-uses-and-limitations-of-questionnaires-interviews-andhttp://www.grin.com/en/e-book/15458/research-methods-uses-and-limitations-of-questionnaires-interviews-andhttp://www.grin.com/en/e-book/15458/research-methods-uses-and-limitations-of-questionnaires-interviews-andhttp://centreforaviation.com/analysis/india-domestic-passenger-growth-slows-to-8-in-dec-2011-with-growth-to-slow-from-2011-rate-of-166-66992http://centreforaviation.com/analysis/india-domestic-passenger-growth-slows-to-8-in-dec-2011-with-growth-to-slow-from-2011-rate-of-166-66992http://centreforaviation.com/analysis/india-domestic-passenger-growth-slows-to-8-in-dec-2011-with-growth-to-slow-from-2011-rate-of-166-66992http://www.capitaline.com/new/index.asphttp://www.capitaline.com/new/index.asphttp://www.capitaline.com/new/index.asphttp://dgca.nic.in/reports/Market.pdfhttp://dgca.nic.in/reports/Market.pdfhttp://dgca.nic.in/reports/Market.pdfhttp://explorable.com/non-probability-sampling.htmlhttp://explorable.com/non-probability-sampling.htmlhttp://explorable.com/non-probability-sampling.htmlhttp://explorable.com/non-probability-sampling.htmlhttp://www.airindia.com/SBCMS/Webpages/Destinations.aspx?mid=26http://www.airindia.com/SBCMS/Webpages/Destinations.aspx?mid=26http://www.google.com.my/imgres?imgurl=http://media2.intoday.in/btmt/images/stories/air-India-dreamliner2_505_092612123913.jpg&imgrefurl=http://businesstoday.intoday.in/story/air-India-dreamliner-in-flight-entertainment-system/1/188428.html&h=264&w=505&szhttp://www.google.com.my/imgres?imgurl=http://media2.intoday.in/btmt/images/stories/air-India-dreamliner2_505_092612123913.jpg&imgrefurl=http://businesstoday.intoday.in/story/air-India-dreamliner-in-flight-entertainment-system/1/188428.html&h=264&w=505&szhttp://www.google.com.my/imgres?imgurl=http://media2.intoday.in/btmt/images/stories/air-India-dreamliner2_505_092612123913.jpg&imgrefurl=http://businesstoday.intoday.in/story/air-India-dreamliner-in-flight-entertainment-system/1/188428.html&h=264&w=505&szhttp://www.google.com.my/imgres?imgurl=http://media2.intoday.in/btmt/images/stories/air-India-dreamliner2_505_092612123913.jpg&imgrefurl=http://businesstoday.intoday.in/story/air-India-dreamliner-in-flight-entertainment-system/1/188428.html&h=264&w=505&szhttp://www.airindia.com/SBCMS/Webpages/Destinations.aspx?mid=26http://explorable.com/non-probability-sampling.htmlhttp://explorable.com/non-probability-sampling.htmlhttp://dgca.nic.in/reports/Market.pdfhttp://www.capitaline.com/new/index.asphttp://centreforaviation.com/analysis/india-domestic-passenger-growth-slows-to-8-in-dec-2011-with-growth-to-slow-from-2011-rate-of-166-66992http://centreforaviation.com/analysis/india-domestic-passenger-growth-slows-to-8-in-dec-2011-with-growth-to-slow-from-2011-rate-of-166-66992http://www.grin.com/en/e-book/15458/research-methods-uses-and-limitations-of-questionnaires-interviews-andhttp://www.grin.com/en/e-book/15458/research-methods-uses-and-limitations-of-questionnaires-interviews-andhttp://www.bbc.co.uk/schools/gcsebitesize/dida/using_ict/questionnairesrev1.shtmlhttp://www.adfoster.com/primary_secondary_data_what_s_the_difference


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dreamliner-in-flight-entertainment-system/1/188428.html&h=264&w=505&sz[Accessed 30 november

2012].

Limited, A.A.o.I., 2011. Air Transport Service_Update1 introduction part. 31 october. p.2. [Accessed 23

November 2012].

Lucienne T. M., & Amaresh , C., 2009. DRM, a Design Research Methodology. London: Springer.

ODI, 2009. Research Tools: Focus Group Discussion. [Online] Available at:

http://www.odi.org.uk/resources/details.asp?id=5695&title=focus-group-discussion[Accessed 10 April

2012].

Oil, I., 2011. Indian Oil. November.

Panneerselvam, R., 2004. ResearchMethodology. PHI Learning Pvt. Ltd.

RBI, A.a.M., 2011. RBI,AAI and MOCA Analisys. RBI,AAI and MOCA.

Resnik, D.B., 2011. What is Ethics in Research and Why is it Impotant. [Online] Available at:

http://www.niehs.nih.gov/research/resources/bioethics/whatis/[Accessed 11 April 2012].

Singh, S., 2011. Secondary data definition. [Online] Available at:

http://www.publishyourarticles.org/knowledge-hub/statistics/secondary-data-definition.html[Accessed

11 April 2012].

Statistics Canada, 2009. Non Probability Sampling. [Online] Available at:

http://www.statcan.gc.ca/edu/power-pouvoir/ch13/nonprob/5214898-eng.htm[Accessed 9 April

2012].

Ursula Wheeler, 2010. What is a Pilot Study?[Online] Available at:http://ursula-

wheeler.suite101.com/what-is-a-pilot-study-a266739[Accessed 11 April 2012].
http://www.google.com.my/imgres?imgurl=http://media2.intoday.in/btmt/images/stories/air-India-dreamliner2_505_092612123913.jpg&imgrefurl=http://businesstoday.intoday.in/story/air-India-dreamliner-in-flight-entertainment-system/1/188428.html&h=264&w=505&szhttp://www.google.com.my/imgres?imgurl=http://media2.intoday.in/btmt/images/stories/air-India-dreamliner2_505_092612123913.jpg&imgrefurl=http://businesstoday.intoday.in/story/air-India-dreamliner-in-flight-entertainment-system/1/188428.html&h=264&w=505&szhttp://www.odi.org.uk/resources/details.asp?id=5695&title=focus-group-discussionhttp://www.odi.org.uk/resources/details.asp?id=5695&title=focus-group-discussionhttp://www.niehs.nih.gov/research/resources/bioethics/whatis/http://www.niehs.nih.gov/research/resources/bioethics/whatis/http://www.publishyourarticles.org/knowledge-hub/statistics/secondary-data-definition.htmlhttp://www.publishyourarticles.org/knowledge-hub/statistics/secondary-data-definition.htmlhttp://www.statcan.gc.ca/edu/power-pouvoir/ch13/nonprob/5214898-eng.htmhttp://www.statcan.gc.ca/edu/power-pouvoir/ch13/nonprob/5214898-eng.htmhttp://ursula-wheeler.suite101.com/what-is-a-pilot-study-a266739http://ursula-wheeler.suite101.com/what-is-a-pilot-study-a266739http://ursula-wheeler.suite101.com/what-is-a-pilot-study-a266739http://ursula-wheeler.suite101.com/what-is-a-pilot-study-a266739http://ursula-wheeler.suite101.com/what-is-a-pilot-study-a266739http://ursula-wheeler.suite101.com/what-is-a-pilot-study-a266739http://www.statcan.gc.ca/edu/power-pouvoir/ch13/nonprob/5214898-eng.htmhttp://www.publishyourarticles.org/knowledge-hub/statistics/secondary-data-definition.htmlhttp://www.niehs.nih.gov/research/resources/bioethics/whatis/http://www.odi.org.uk/resources/details.asp?id=5695&title=focus-group-discussionhttp://www.google.com.my/imgres?imgurl=http://media2.intoday.in/btmt/images/stories/air-India-dreamliner2_505_092612123913.jpg&imgrefurl=http://businesstoday.intoday.in/story/air-India-dreamliner-in-flight-entertainment-system/1/188428.html&h=264&w=505&sz


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16.0. QUESTIONNAIRE

NAME -------------------------------------------------------------------

GENDER MALE [ ] FEMALE [ ]

OCCUPATION STUDENT [ ]

PROFESSIONAL [ ]

HOUSE WIFE [ ]

OTHERS [ ]

MARITAL

STATUSSINGLE [ ] MARRIED [ ]

INCOME

LEVEL10000-25000 [ ] ABOVE 25000 [ ]

ADDRESS -------------------------------------------------------------------

CITY: -------------------------------------------------------------------

E-Mail: -------------------------------------------------------------------

Contact number ------------------------------------------------------------------


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1.How often you fly with Indian Airlines?

a. Frequently [ ]

b. Once in a month [ ]

C. Once in a year [ ]

d. Never [ ]

2.What are your preferences before booking a flight

a.Services [ ]

b.Reasonable price [ ]

c.Promotions [ ]

d.Others [ ]

Please specify :----------------------------------------------------------

3. Trough which medium you book your tickets?

a.Online [ ]

b.Agents [ ]

c.Through airline [ ]


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offices

d.Others [ ]

Please specify :-----------------------------------------------------------

4. Is Air India an better option for you to fly?

YES [ ] NO [ ]

If no please give your reason:---------------------------------------------------

-----------------------------------------------------------------------------------------

5. Where do you think Air India lags?

a.CustomerService

[ ]

b.Ticket Price [ ]

c.Timings [ ]

Others please specify:--------------------------------------------------------------

-----------------------------------------------------------------------------------------

6. Did you ever met with any bad experience in Air India?


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a.Frequently [ ]

b.Sometimes [ ]

c.Very often [ ]

d.Not at all [ ]

7. How do you rate Air India?

a.Excellent [ ]

b.Good [ ]

c.Satisfactory [ ]

d.Need to improve [ ]

8. Which of these areas do Air India need improvements?

a.In flight services

b.Employees

c.Lounge

Others please specify :-------------------------------------------------------------

------------------------------------------------------------------------------------------


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9. How frequently is Air India on time service?

a.Always [ ]

b.Generally [ ]

c.Sometimes [ ]

d.Never [ ]

10. Do you think that Air India has to improve its management system in order to

increase its performance?

a.Strongly agree [ ]

b.Agree [ ]

c.Neither agree or

disagree[ ]

d.Disagree [ ]

e.Strongly

Disagree[ ]

11.Will you recommend Air India for your near and dear?


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Yes [ ] No [ ] Maybe [ ]

12. Do you think the opinion about Air India has gone down in last few years?

a.Strongly agree [ ]

b.Agree [ ]

c.Neither agree or

disagree[ ]

d.Disagree [ ]

e.Strongly

Disagree[ ]

Suggestions for Air Indias due to its underperformance!

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an examination of air india's under performance in india aviation industry

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