Report Writing

Air India V/s Vistara Airlines At Kandoli Campus , Dehradun Submitted As an assignment for Business Communication II By-: Varun Pandey Anand Ritwik Ghosh Under Graduate Business School College of Management and Economic Studies University of​ Petroleum and​ Energy Studies Dehradun 2017 Air India V/s Vistara Airlines Submitted To -: Submitted By-: Mrs. Rekha Verma Varun Pandey Department of Humanities Anand Ritwik Ghosh BBA Aviation Operation BATCH 2015- 2018 College of Management and Economic Studies ACKNOWLEDGEMENT We consider our privilege to express our deepest gratitude for the guidance and assistance of the people who helped us in making this project as it is. We are fortunate to get this opportunity to undertake this project and learn so much about the functioning and working of such big companies i.e. Air India ad Vistara Airlines. We convey our highest gratitude and respect towards our project mentor, Mrs. Rekha Verma, without whose support this survey wouldn’t have been completed. Lastly, we would like to thank our family members and friends for the team work and hard work, without which the completion of this research was not possible. TABLE OF CONTENT S. No Chapters Page No 1 Title Page 1 2 Acknowledgement 3 3 Executive Summary 5 4 Introduction 6 5 Vistara 7 6 Air India 9 7 Purpose 12 8 Methodology 13 9 Findings 16 10 Conclusion 23 11 Reference 24 12 Appendix 25 Executive Summary This report provides a comparative analysis of strategies, targeting of customers that are above average in terms of financial background. Methods of analysis include a survey, which was done by filling of questionnaires by people of different age and sex. Results of analysis show the various aspects on which both the airlines were judged. In case of low price, its Vistara which provides its range at prices comparatively lower than that of Air India, while Air India provides high quality of in-flight services and variety of food items on board in comparison to Vistara. The report finds that Air India is superior between the two in case of price of the products while Vistara is best in providing low fare, fast air travel and are good in customizing their food items and in giving satisfactory customer service. INTRODUCTION Indian Aviation Industry is of the fastest growing airline industry in the world. Tata Sons Ltd. was the first airline to operate from Delhi to Karachi, without any Government Support. In 1948, the Indian Government and Air India set up a joint sector company, Air India International to further strengthen the Aviation Industry of India. As part of nationalization in 1953 of Indian Airlines (IA) brought the domestic civil aviation sector under the purview of Indian Government. Later till the mid 1990's government-owned airlines dominated Indian aviation industry. When the government adopted the Open-sky policy in 1990 and other liberalization policies the Indian Aviation Indian made underwent a rapid and dramatic transformation. Aviation Industry has been one of the fastest-growing aviation industries in the world with private airlines accounting for more than 75 % of the sector of the domestic aviation market. With a compound annual growth rate (CAGR) of 18 % and 454 airports and airstrips in place in the country, of which 16 are designated as international airports, it has been stated that the aviation sector will witness revival by 2011. This is being primarily attributed because of the increase in the share of revenue from Delhi International Airport Limited (DIAL) and Mumbai International Airport Limited (MIAL). Passengers carried by Indian domestic airlines from January-February 2010 stood at 8,056,000 as against 6,761,000 in the corresponding period of 2009-a growth of 19.2 %, according to a report released by the Ministry of Civil Aviation. Vistara Airlines Tata SIA Airlines Limited, operating as Vistara, is an Indian airline in Gurugram with its hub at Delhi International Airport Pvt. Ltd . The carrier, a joint venture between Tata Sons  and Singapore Airlines, commenced operations on 9 January 2015 with its inaugural flight between Delhi and Mumbai. The airline had carried more than two million passengers by June 2016 as of April 2016, has a 2.3% share of the domestic carrier market. The airline operates to eighteen destinations with a fleet of Airbus A320-200  aircraft. Vistara was the first airline to introduce premium economy seats on domestic routes in India. The company unveiled its brand identity "Vistara" on 11 August 2014. The name was taken from the Sanskrit word Vistaar, meaning "limitless expanse". Vistara took delivery of its first aircraft at New Delhi on 25 September 2014. It took delivery of the last of its thirteen original Airbus A320 aircraft March 2015, Phee Teik Yeoh announced that the airline is planning to procure an unspecified number of both narrow-body and wide-body aircraft to enhance the domestic network and launch international flights within two years. Services Cabin Business class Being a full-service carrier, Vistara offers 8 business class seats, two rows in 2-2 configuration, in its 158-seater Airbus A320-200 fleet. The business class seats are 20.12 inches (511 mm) wide with 42 inches (1,100 mm seat pitch. Premium Economy Vistara was the first airline in India to introduce Premium Economy class in the domestic market.[51] At present it offers 24 premium economy seats, four rows in 3-3 configuration, out of total 158 seats in the single aisle Airbus A320-200 aircraft in its fleet. Each being 18 inches (460 mm) wide and having a pitch of 33–36 inches (840–910 mm). In-flight entertainment Vistara's Airbus A320-200s do not have in-flight entertainment screens installed and it provides pre-loaded tablets for its business-class fliers. In March 2016, Vistara started beaming content directly to passengers' personal electronic devices through one-way Wi-Fi connection through BAE Systems , in-flight entertainment system. Catering The in-flight food is catered by Taj SATS Catering, another joint venture between Tata and a Singaporean company, headed by Chef Arun Batra, formerly the executive chef of Taj Hotels. Vistara offers four different meals for each cabin for different time of the day — breakfast, refreshment, lunch and dinner with options of one vegetarian and one non-vegetarian dish in economy class; two vegetarian dishes and one non-vegetarian dish in premium economy; and two vegetarian and two non-vegetarian dishes for business-class cabin. The menu is typically changed every seventh day and there are different menus for lunch and dinner. It also provides special meals upon request 24 hours before departure. Air India Air India is the flag carrier airline of India[8] .It is the fourth largest domestic airline in India in terms of passengers carried, after IndiGo, Jet Airways & SpiceJet with a market share of 13% as of March 2017. [9]. It is owned by Air India Limited, a Government of India enterprise, and operates a fleet of Airbus and Boeing aircraft serving 90 domestic and international destinations. It is headquartered in New Delhi. Air India has its main hub at Indira Gandhi International Airport, New Delhi and a secondary hub at Chhatrapati Shivaji International Airport, Mumbai . Air India became the 27th member of Star Alliance on 11 July 2014. The airline was founded by J. R. D. Tata as Tata Airlines in 1932; Tata himself flew its first single-engine de Havilland Puss Moth, carrying air mail from Karachi to Bombay's Juhu's aerodrome and later continuing to Madras (currently Chennai). After World War II, it became a public limited company and was renamed as Air India. On 21 February 1960, it took delivery of its first Boeing 707–420 named Gauri Shankar and became the first Asian airline to induct a jet aircraft in its fleet.[10] In 2000–01, attempts were made to privatise Air India and from 2006 onwards, it suffered losses after its merger with Indian Airlines. Air India also operates flights to domestic and Asian destinations through its subsidiaries Alliance Air and Air India Express. Air India uses the Airbus A320 family and Boeing 787 aircraft for selected domestic routes while long distance services use the Boeing 777-300ER, Boeing 777-200LR, 747 and 787 aircraft. Air India's mascot is the Maharajah (Emperor) and the logo consists of a flying swan with the wheel of Konark inside it. Services Business Class seats on board the Boeing 777-200LR/777-300ER Air India In-Flight entertainment screen Air India London Heathrow Airport lounge India's Maharaja Lounge at John F. Kennedy International Airport in New York Boeing 777-200LR/777-300ER aircraft operated on long haul flights can accommodate 342 passengers in a three class configuration viz. fisiness d economy. The Boeing 747-400 can accommodate 423 passengers in the same three class configuration in a 12-26-385 seating arrangement. Boeing 787 Dreamliner and Airbus A321 flights have a two class configuration and can accommodate 256 (18B/238E) and 172 (20B/152E) passengers. Airbus A320 aircraft operated on domestic and short haul international flights can accommodate either 168 in economy configuration or 140 (20B/120E) in a two class configuration.[119][120] Airbus A319 aircraft have a full economy 144 seat configuration.[121] Air India serves meals on all international flights and domestic flights with a flight duration of over 90 minutes. In-flight entertainment Air India aircraft are equipped with Thales i3000 in-flight entertainment system. Passengers can choose from five channels airing Hindi and English content.[123] Air India's Boeing 777 series, 747 and 787 aircraft are also equipped with personal on demand in-flight entertainment systems on which passengers can choose from available content. Showtime is the official entertainment guide published by Air India. Shubh Yatra (meaning Happy Journey) is a bilingual in-flight magazine published in English and Hindi by Air India. Frequent flyer programme Flying Returns is Air India's frequent flyer programme. It is India's first frequent flyer programme and is shared by Air India and its subsidiaries. A member can earn mileage points and redeem them during future travel. On higher fares, passengers will earn bonus miles and clock mileage points. The points can be redeemed for awards travel on Lufthansa and Singapore Airlines. PURPOSE The research work is carried out in the marketing field, taking a sample size was 100 respondents and to gather the information we have used Microsoft word, Microsoft excel and Google docs. Primary Objective The prime objective of conducting this research was to compare Air India and Vistara and study their operations to understand which of the two is more successful and has a higher brand value. For this, we analysed their operations, strengths, weaknesses and thereafter accessed which brand their success rate and also conduct a survey on level of customer satisfaction. Secondary objective Apart from customer satisfaction, the objective was to know what strategies were adopted by the companies to attract more customers and try to retain maximum by giving them additional benefits. In our survey, we asked the customers factors that affected their buying decision the most such as …..Pricing, membership cards, discount facilities etc. that serve as a source of attraction to customers. METHODOLOGY Basically, there are two sources of data collection : Primary Source Secondary Source The information we have presented has been collected by us using official websites of Air India and Vistara ,magazines ,annual reports, newspaper and survey questionnaires we had prepared. We took the views and experiences of people and therefore have based our presentation on it including other factual information from the internet. To conduct the survey, a list of questions was prepared and mailed to respondents to answer or to directly meet them and ask them to fill up the questionnaire by giving their view points. Some of them themselves read the questionnaire and answered it while, to others, the questionnaire was filled in an interview method(to explain them the question, ask for response, and tick it accordingly). Competitive Rivalry: High brand positioning of other competitors. Air India has a strong support from India government. Markets are un-differentiated and therefore it is difficult for the companies to maintain a bigger market share. Highly Competitive Market Recommendations discussed include:- We would like to recommend Air India to reduce their prices as India is a developing country and people would not prefer to spend a lot on their air ticket which customer could get at much lower prices. On the other hand Vistara also is successful in India but to fight the competition it faces from other brands including it can offer its customers a better ambience and improve their destinations as it does not cover international sectors and services of the staff to make consumers feel more comfortable. Air India provides food without asking for an extra amount. Vistara provides food items at a lower price. DATA ENTRY AND ANALYSIS For analysis purpose, we have put together all the data and analysed it, treating each question independently. The data was entered in the variable view of SPPS first, where we have entered all the variables. The records of respondents are then entered in data view of SPPS. In questions, where there are multiple variables for the response (answer), for the purpose of easing the task of data entry, the variables were assigned numbers in the variable view . When an entry is made in data view, it becomes easy to type through numbers than to type the whole variable. The data is analyzed by using description analysis in SPPS and charts and tables. These tables are then interpreted in Microsoft Word. Finding and Discussion Data analysis Figure SEQ Figure \* ARABIC 1 The respondents are classified on the demographical factors like age, gender. In the above pie chart it can be seen that out of 100 respondents, majority is female i.e. 52.3% and the rest are male respondents which counts 47.7% . Interpretation: It has been observed that people prefer Air India more than Vistara Airlines as it is more recognized as a 'National Carrier' .As Vistara is newly established but it offers great deals Figure SEQ Figure \* ARABIC 2 Interpretation- As Indigo is a major player in the market due to its good market strategies, and well experienced staff It has the greatest market share of all. Air India have 16.45% of market share whereas Vistara Airlines could only make up to 1.63%. Interpretation- In today’s world, Time has gain more value people tend to save time travelling by air and its much more relaxing and soothing to them Instead of travelling through trains and through other mediums of transport they choose Air Travel and in the span of 15 years graphs have tremendously shown a great hike in rate of people choosing air travel domestically as well. Vistara is a new set up airline by Tata Pvt. Ltd. With time, it has shown a tremendous growth in passenger market share. It has proved itself by gaining the trust of its served customers and also managed to make new customers. Out of 100 Respondents, 64 chose Vistara Airlines for its best price, and quality service. It was also found that people tend to not to chose Air India because of its high prices. FINDINGS The findings after analysis have been as follow: If we look at the age, more of people of age 20-50 travel most of the times. First thing to consider is whether the flight is available to the desired location, and its available on the date on which you wish to travel. We have considered pricing as a major factor influencing the buyer to buy the air ticket. People tend to choose Air India for International Travel as it offers great prices on International Flights as compared to foreign Air Carriers in the market. Vistara is a new player in the market. Soon Vistara Airlines is also going to start its International flights than it would be the best time to find out whether Air India is going to dissolve in the market or not. CONCLUSION Customer Satisfaction is directly related to the Value a customer gained by having experienced your services to them. Then, Different people start making a perception about the airline which decides the image of the airline in customer view. And, Today mostly companies have their employees meeting in different places. So, the company makes arrangement for its employees travel by air only to save time and also airlines offer a great corporate discounts and on group bookings or by setting a limit of tickets being sold in a particular month. In this way, even the airline is in a great profit, and the company get great deals on Air Tickets. REFERENCE https://www.scribd.com/doc/49759467/Air-India-Analysis-Report https://en.wikipedia.org/wiki/Air_India http://www.airindia.in/AnnualReport.htm?17 https://www.google.co.in/search?q=air+india+graphs&rlz=1C1CHZL_enIN727IN727&tbm=isch&tbo=u&source=univ&sa=X&ved=0ahUKEwj9_enW48HTAhVCp48KHf4vAq4QsAQIIw&biw=1366&bih=623#imgrc=tQOUt1wCCPZ0QM: Appendix 1. Gender Male Female 2. Age 14-20 21-30 31-40 40+ 3. What do you do? Study Work Unemployed Other 4. What do you prefer? Vistara Air India 5. Why? Location Price Quality Service Offers Other 6. Imagine Air India logo. How often did it take you? Couple of seconds Quite a few seconds I had to concentrate for quite a while I could not remember it 12. What are the factors that would attract you to Air India? International Travel Domestic Travel Other 13. What are the factors that make you chose Vistara Airlines ? Great Prices Great Offers Covers almost Domestic areas Other 14. What do you associate air travel with ? Time- Saving Quality Travel Affectionate to Air Travel All Above 15 Which Business Class would you like to travel in ? Vistara Air India Fly Emirates Etihad Airways 25 Air India V/s Vistara Airlines