CRITERIOS DE INCLUSIÓN Y EXCLUSIÓN

SWOT means the strengths, weakness, threats and opportunities. This is one of the essential requirements of any organization and the foundation for understanding the industry of that   particular organization. The continuous volatile environment of the aviation industry has  been analysed with respect the extended marketing mix ( product, price, place, promotion,  process, people and physical evidence). While individual airlines each analyze and make decisions based on their own situations, there are overall industry similarities that all airlines face, with each endeavoring to maximize strengths and opportunities while minimizing weaknesses and threats.

STRENGTHS

• A major strength of any airline is the product itself (air  travel). Despite downturns,

over time air travel continues to grow, not only due to population growth, but also due to an increased propensity to fly.

• The entry of low-cost carriers pioneered by Air Deccan helped greatly reduce the

costs involved in flying. This helped attract consumers for whom air travel was only a dream. Now a number of low-cost airlines are operating in India, namely Go Airways, Spice Jet, and Kingfisher Air, and they have a major share of the Indian aviation industry.

• Indian labour costs are an advantage, at $30-35 per man-hour. This compares with

$55-60 in South-East Asia and Middle East and even higher in the USA and Europe.

• The change in lifestyle of people and growth in the disposable income has resulted in

an increase in leisure travelers for the past few years; 5 years back 85% were business travelers.

• All the major players in the aviation industry focus on particular regions rather than

focusing on India as a country. For example Air Deccan focuses exclusively on south Indian market while Go Air focuses on southern and western India.

• The unplanned location of airport and the lack of proper infrastructure facilities at the

airport. Though the government has tied up with private companies such as GMR and has upgraded airports such Delhi and Banglore but still there is a long way to go.

• Airlines have a high "spoilage" rate compared to most other industries. Once a flight

leaves the gate, an empty seat is lost and non-revenue producing.

OPPORTUNITIES

• Government allows 100% FDI via the automatic route for the green field airports.

Also, foreign investment up to 74% is permissible through direct approvals while special permissions are required for 100% investment. Private investors are allowed to establish general airports and captive airstrips while keeping a distance of 150 km from the existing ones. About 49% FDI is allowed for investment in domestic airlines via the automatic route. However, this option is not available for foreign airline corporations. Complete equity ownership is granted to NRIs (Non Resident Indians). Foreign direct investment up to 74% is allowed for non-scheduled and cargo airlines. Thus, all these policies promote foreign investment in this industry.

• Investment opportunities of US$ 110 billion are being envisaged up to 2020 with US$

80 billion towards new aircraft and US$ 30 billion towards the development of airport infrastructure, according to the Investment Commission of India.

• Technology advances can result in cost savings, from more fuel efficient aircraft to

more automated processes on the ground. Technology can also result in increased revenue due to customer-friendly service enhancements like in-flight Internet access and other value-added products for which a customer will pay extra

_.

• One of the basic weaknesses in the aviation industry is the fuel costs which are 70%

higher than International standards. The fuel bill is 40% of operating cost. Aviation Turbine Fuel (ATF) prices in India is around Rs. 37,800 per kilo litre against Rs.21,800 in the Average International Markets. Also 20% of the Operational Budget is spent on training pilots. Furthermore, landing and parking charges are 78% higher  than the international average.

There is a shortage of skilled manpower which includes pilots, cabin crew and ground staff. Also there is high attrition rate among the skilled manpower within the aviation industry.

CONCLUSION

In service sector, the marketing strategy hinges around the marketing mix which is defined as the elements an organisation controls, that can be used to satisfy or communicate with the customers. It includes the 7 Ps which are product place, price, promotion, people physical evidence and process and of late another P relevant to the service industry has been added ie.  pace.

Though all the competitive airlines keep these basis Ps in mind while devising the marketing strategy but their stress varies and that is what gives them a distinct touch and enabling them to score over the others.

While Indian Airlines excels in advertising cum media blitzkrieg and dissemination of  information about the strength of the company in a dramatic and innovative manner to establish on emotional credible bond with the customer, Jet Airways prides itself on superior  service both on the ground and in the air. It is also very brand conscious and has an emasculate young cabin crew supporting a yellow rose – an international symbol of  friendship, warmth and caring. Customer satisfaction is of prime importance to Sahara Airline. It is striving to reach and attain newer heights in passenger care comfort, reliability, safety and service. It may also has many firsts to its credit. Its on time performance has been consistently 97.5% and dispatch reliability touches 99.8%.

The healthly competition of domestic airlines has set new trends in the quality of service. In the monopolistic environment of Indian Airlines the quality and the desire to win over the constraints was totally dismal. With the oncoming of Jet Airways and Air Sahara there is sea change in the quality of service and the pride of the job.

It is a matter of great significance that the airlines staff now care about the passenger comfort and take pains to see that the flight are on time. The high percentage 98% of on time service of Sahara Airlines is the hall mark of their quality of service.

RECOMMENDATIONS

The research study and the analysis of the various aspects tapped lead to the following recommendation:

1) With the oncoming of the Private Airlines on the country the customer awareness and aspiration of quality of service has been enhanced considerably. So all the airlines should emphasis on providing more efficient services both on the ground and in the air as done by Jet Airways to a large extent.

2) The check-in time should be minimal. Wherever there is likely to be long cues more counters should be opened.

3) The facility of valet services as introduced by Sahara Airlines should be adopted by all airlines and it should be extended to all classes.

4) Tele reservation and computerised check-in procedure should mandatory for all airlines.

5) The process of ticketing and cancellation should be made more easy, smooth and as flawless as possible as most of the respondent were not happy with the present ticketing procedure.

6) Delayed flight which is a very painful experience for the travelers, should be attended to as top priority because the main clientage is business men and they are time bound.

7) There is a need to improve the quality of in-flight comfort especially for a economy class by way of seat pitch, leg room, quality and choice of food.

Customer grievance and prompt redressal should also be rated as top priority as this will not only provide the necessary input and the feedback but also would go a long way in improving the image of the airlines.