CRM AIr India
CRM AIr India
CRM AIr India
The making of any report calls for contribution and cooperation from many others, besides the
individual alone. It is the result of meticulous efforts put in the by many minds that contribute to
the final report formation. Several eminent people at National Aviation Company of India
Limited (NACIL) have made valuable contributions to this report through their inputs. I duly
acknowledge my gratitude to each one of them.
At last, I would like to acknowledge all those who helped, directly or indirectly, at
various areas in completing my project and related study and made my training a wonderful
experience.
TABLE OF CONTENTS
S.No
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Particulars
Page No.
Executive summary
3
Introduction to the topic
4-10
Introduction to Airlines Industry and company profile
11-18
Benefits provided to employees
19-32
Productivity Linked Incentives
33
Comparison of different Airline companies with34-36
AIR INDIA
(NACIL)
IT section in AIR INDIA (NACIL)
Corporate Objectives.
Research Methodology.
Data Analysis
Findings and Analysis
Conclusion
Recommendations
Limitations
Bibliography.
Appendices
37-39
40
41-43
44-68
69
70
71
72
73
74-76
EXECUTIVE SUMMARY
This Project aims to study: the strategies that AIR INDIA (NACIL) is implementing to retain its
employees, and to compare CRM strategies of NACIL with other Airlines Companies.
My study was confined to HR and Commercial Department of AIR INDIA. Under HR
department I was studying all policies that NACIL is implementing to retain its employees and
under Commercial department I studied CRM strategies related to customers. This study has
conducted to know the effectiveness of CRM strategies for internal as well as external customers
of AIR INDIA (NACIL).This study focuses on improvement in existing CRM strategies of the
company. It also aims to study the success of existing policies towards relationship building,
internal marketing, most preferred policy, satisfaction level of employees.
This project has started with study of the organization to have a fair idea about work
culture. I conducted a survey through questionnaire, interview and also got information from
collecting the secondary data available. A structured non-disguised, questionnaire was
formulated in order to gather primary information from the employees. The first approach to find
out the right information about different policies is through verbal talking to employees whether
that person is related to my area of study or not. Then after collecting all the information
employees further gone through to fill up the questionnaire.
In the present time, AIR INDIA (NACIL) is a very good employer as it has just 6%
attrition rate. Most of the employees are satisfied with the organization. But work culture of
NACIL should improve to overcome with so many hurdles that this company is facing now a
days.
number
of
people.
The origin of Indian civil aviation industry can be traced back to 1912, when the first air flight
between Karachi and Delhi was started by the Indian State Air Services in collaboration with the
UK based Imperial Airways. It was an extension of London-Karachi flight of the Imperial
Airways. In 1932, JRD Tata founded Tata Airline, the first Indian airline. At the time of
independence, nine air transport companies were carrying both air cargo and passengers. These
were Tata Airlines, Indian National Airways, Air service of India, Deccan Airways, Ambica
Airways, Bharat Airways, Orient Airways and Mistry Airways. After partition Orient Airways
shifted
to
Pakistan.
In early 1948, Government of India established a joint sector company, Air India International
4
Ltd in collaboration with Air India (earlier Tata Airline) with a capital of Rs 2 crore and a fleet of
three Lockheed constellation aircraft. The inaugural flight of Air India International Ltd took off
on June 8, 1948 on the Mumbai-London air route. The Government nationalized nine airline
companies vide the Air Corporations Act, 1953. Accordingly it established the Indian Airlines
Corporation (IAC) to cater to domestic air travel passengers and Air India International (AI) for
international air travel passengers. The assets of the existing airline companies were transferred
to these two corporations. This Act ensured that IAC and AI had a monopoly over the Indian
skies. A third government-owned airline, Vayudoot, which provided feeder services between
smaller cities, was merged with IAC in 1994. These government-owned airlines dominated
Indian
aviation
industry
till
the
mid-1990s.
In April 1990, the Government adopted open-sky policy and allowed air taxi- operators to
operate flights from any airport, both on a charter and a non charter basis and to decide their own
flight schedules, cargo and passenger fares. In 1994, the Indian Government, as part of its open
sky policy, ended the monopoly of IA and AI in the air transport services by repealing the Air
Corporations Act of 1953 and replacing it with the Air Corporations (Transfer of Undertaking
and Repeal) Act, 1994. Private operators were allowed to provide air transport services. Foreign
direct investment (FDI) of up to 49 percent equity stake and NRI (Non Resident Indian)
investment of up to 100 percent equity stake were permitted through the automatic FDI route in
the domestic air transport services sector. However, no foreign airline could directly or indirectly
hold
equity
in
domestic
airline
company.
By 1995, several private airlines had ventured into the aviation business and accounted for more
than 10 percent of the domestic air traffic. These included Jet Airways Sahara, NEPC Airlines,
East West Airlines, ModiLuft Airlines, Jagsons Airlines, Continental Aviation, and Damania
Airways. But only Jet Airways and Sahara managed to survive the competition. Meanwhile,
Indian Airlines, which had dominated the Indian air travel industry, began to lose market share to
Jet Airways and Sahara. Today, Indian aviation industry is dominated by private airlines and
these include low cost carriers such as Deccan Airlines, GoAir, SpiceJet etc, who have made air
travel
affordable.
Airline industry in India is plagued with several problems. These include high aviation turbine
fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid fleet expansion, and
5
intense price competition among the players. But one of the major challenges facing Indian
aviation industry is infrastructure constraint. Airport infrastructure needs to be upgraded rapidly
if Indian aviation industry has to continue its success story. Some steps have been taken in this
direction. Two of India's largest airports-Mumbai and New Delhi-were privatized recently. Two
Greenfield airports are coming up at Bangalore and Hyderabad in southern India. Investments
are pouring into almost all aspects of the industry, including aircraft maintenance, pilot training
and air cargo services. The future prospects of Indian aviation sector look bright.
CRM IN AVIATION
Anything else ?
50 60% of customers are not profitable and customers providing less than 20% of the profit
potential consume 60 80% of front office support
The cost of acquiring a new customer is 6 times the cost of selling to a current customer
69% of customers leave because of poor service. Only 13% left because of product dissatisfaction
and 9% because of price.
The Aviation horizon in India is becoming increasingly competitive. Airlines need to stay more
customers focused and employ effective CRM regardless of whether they are PSUs, full-service
providers, Low-Cost Carriers (LCCs) or innovators.
7
(ii)
(iii)
(iv)
In this rapidly changing world the biggest challenge an Industry face is to keep pace with the
increasing customers demands for services and at the same time achieving the targets of cost
reductions which are so much essential for revenue maximization.
The Aviation Industry has been both the driver as also the sector, which has been affected most
by the sweeping waves of globalization. Today, more than ever before, the passenger traffic is
touching new highs as business / leisure travel is rapidly increasing.
To face the challenges, more than anything else, the Air Transport Industry needs change.
Mounting losses, high oil prices and lower fares have forced Airlines to rethink current models
and re-engineer the business. Efficiency is the battle cry as air transport races to become a low
cost Industry. The challenge to find cost savings in the Industries complex process, whilst, at the
same time, enhancing convenience for the consumer.
As a result, in 2004 the CEOs of IATAs member Airlines mandated its association to lead in
Industry wise programmes designed to ease the transport of passenger and freight and deliver $
6.5 billion in annual Industry savings.
Its called SIMPLIFYING THE BUSINESS
Simplifying the Business is comprises of five projects that together form an
end simplified travel process : -
end-to-
Out of the five I.T. initiative taken by IATA, Electronic Ticketing (ET) is the most critical it of
huge importance to passengers, will deliver US $ 3 billion in savings, and has a fast approaching
deadline. The ease of issuing tickets changing travel plans, making last minute travel decisions
and the elimination of lost tickets are compelling consumer benefits. E-Ticketing is the basis of
other passenger services such as common use self-service check in and the ability to print bar
coded boarding passes via the internet.
11
During the 1980s and 1990s, the airline industry underwent significant change. The industry,
which had been heavily regulated and controlled, was liberated fro m governmental oversight
and released to the vagaries of the marketplace in 1978. What followed was a period of evolution
and metamorphosis that changed the nature of flying forever. At the same time, serious safety
questions arose.
DEREGULATION:
When the firsts airlines appeared after World War I, fewer than six thousand passengers a year
traveled by air. By the 1930s, the Big four- Eastern Airlines, United Airlines, American Airlines,
and Trans World Airlines (TWA) - dominated commercial air transport. These companies had
garnered exclusives rights from the federal government to fly domestic airmail routes, and Pan
American (Pan AM) held the rights to international routes. The hold of these four airlines on
their lucrative contracts was virtually unchallenged until deregulation in 1978. Even after the
formation of the Civil Aeronautics Board (CAB) in 1938, formed to license new airlines, grant
new routes, approve mergers, and investigate accidents, the Big Four and Pan Am continued to
be guaranteed permanent rights to these routes. Infact, no new major scheduled airline was
licensed for the next four decades.
In October 1978, Congress passed the Airline Deregulation Act (49 U.S.C.A. 334 et seq.),
ending the virtual monopoly held by the Big four and Pan Am. The governments goal was to
promote competition within the industry. The act gave airlines essentially unrestricted rights to
enter new routes without CAB approval. The companies could also exit any market and raise and
lower fares at will.
The immediate effect of deregulation was a drop in fares an and increase in passengers. New cutrate, no-frills airlines, such as People Express Airlines and New York Air offered travelers the
12
lowest fares ever seen in the industry. Forced to compete to fill their planes, the larger companies
lowered their prices as well. Then the oil-producing countries in the Middle East formed a cartel
and raised the price of jet fuel 88% in 1979 and an additional 23% in 1980. Combined with
tumbling fares and increased passenger loads, the higher cost of jet fuel caused airlines profits to
drop.
Labor strike also affected the industry in the early days following deregulation. In 1981, after
years of working under stressful conditions made worse by deregulation, the professional Air
traffic controllers Organization (PATCO) called a strike, demanding shorter working hours and
higher pay. The union expected support and cooperation from the Reagan administration because
of a sympathetic letter President Ronald Reagan had sent to PATCO when he was campaigning
for the presidency. In the letter, he pledged to whatever was necessary to meet PATCOs needs
and ensure the publics safety. But Reagan ordered the strikers to return to work within three
days or be fired. Most did not return. The Federal Aviation Administration (FAA) ordered all
carriers to temporarily reduce their number of flights by one-third. Newer and smaller carriers
found themselves increasingly unable to gain access to lucrative routes. Rebuilding the air traffic
controller force took years during which landing slots at 5he largest airports remained restricted
and small carriers unable to compete, simply abandoned their attempts to break into the larger
markets.
To some extent, competitive pricing actually had the opposite effect of what the deregulators
intended. When the small upstart companies offered extremely low fares, the larger companies
responded aggressively. For example, in 1983, People Express announced $99 round trip fare
between Newark, New Jersey and Minneapolis-St. Paul. Northwest Airlines, which had always
dominated the Twin Cities market, undercut People by instituting a$95 fare for the same
destination and scheduling extra departures around Peoples. As a result, people decided it could
not compete and withdrew from the market. Passengers enjoyed the benefit of lower fares, but
only for a short time before the competitive effect faded and high fares returned.
When deregulation brought competitive pricing, the large carriers began to realize that it was not
profitable for them to do business the way they had in the past. The first major change they made
was to abandon the practice of crisscrossing the continent with nonstop flights to many different
cities. Instead the major airlines scheduled most of their flights into and out of a central point of
hub, where passengers might need to change to different flight to complete their journey. One
airline controlled most of the reservation desks and gates at a particular hub- for instance. United
13
passengers, eight out of ten remained on the same airline throughout their journey .By 1992 ,
there were at least twelve fortress hubs or airports where one airline controlled more than 60
percent of the traffic .Passengers who flew out of these hubs paid over 20 percent more than they
would have for a comparable trip out of an airport that was not a hub.
After deregulation, the air lines also came to realize that needed a more efficient way to book
reservation and issue tickets. It is difficult to imagine, in these days of highly sophisticated
computers and split-second communications, that until the late 1970s and early 1980s airline
schedules were contained in large printed volumes, reservations were taken over the telephone
and tailed manually at end of each day , and tickets were written by hand . to streamline this
process the large companies initially proposed a joint computer system , listings schedules and
fares .the justice department objected on the grounds that such a system would be
anticompetitive and would violate the Sherman Anti-Trust Act (15 U.S.C.A. 1 et seq. [1890]).
Instead, each airline developed its own computer system and entered data in a manner that
unfairly biased travel agents choices in favor of the carrier that owned the system. Though
skillful manipulation of the data, the airlines were able to put competitors at a disadvantage. For
example, the airline that owned the system might enter the data so that all its flights to a
particular destination appear on the screen before any flights of a competitor.
In a future attempt to win loyalty from passengers, the large airlines instituted frequent-flier
programs, which awarded free tickets to travelers after they logged a certain number of miles
flown with the company.
The combination of hubs, central computer reservation systems, and frequent-flier programs
made the major airlines almost invulnerable in large markets.
Deregulation also brought a period of financial upheaval and an epidemic of merger fever. A
number of companies ceased doing business between 1989 and 1992, and still other merged with
stronger, more aggressive companies. Among the companies that disappeared from the skies
were Eastern. Pan Piedmont and Midway Airlines. USAir and Northwest required cash infusions
though cooperative arrangements with foreign airlines. Even financially strong carriers such as
14
United and American lay off employees and abandoned plans to p0urchase new aircraft, which
added to the woes of the depressed aerospace industry.
By 1993, the industry began to rebound. Continental Airlines and TWA emerged from
bankruptcy, and a few small carriers, such as Kiwi International, formed by former Eastern
Pilots, responded to the publics demand for low fares and began to make incursions into the
established markets, although they generally shied away from directly challenging the giants.
Older carriers for the most part chose to stay with their hub-and-spoke systems, and several,
including Northwest, Continental, and TWA, gains concessions from their unions that helped
them emerge from apparently imminent financial ruin.
The mergers and buyouts of the 1980s were often accomplished in an atmosphere of hostility and
distrust. Charges of predatory pricing and other unfair business practices were leveled by one
carrier against another. During the 1980s, the Justice Departments Antitrust Division made a
number of grand jury investigations into alleged anticompetitive activity by the major airlines,
but no indictments were handed down. However, the companies that survived did not emerge
unscathed. Many of the acquisitions were leveraged buyouts that left the reconstituted companies
heavily in debt. With profits insufficient to cover their enormous debt loads, the companies
frantically competed for business, engaging in fare wars that produced a dizzying array of
pricing plans with equally numerous and confusing restrictions. Some of the tactics were
questionable, but, again, not clearly illegal. In 1993, American Airlines was sued by Continental
and Northwest for alleged predatory pricing during a 1992 fare war. The jury took just over two
hours to return a verdict in favor of American.
By 1993, a creative new solution to the airlines financial woes began to emerge. Northwest
avoided bankruptcy when its unions agreed to wage concessions in return for part ownership of
the airline. Then, in1994 after seven years of negotiating, employees of United gained majority
control of their company in return for deep pay and benefits cuts. Secretary of Labor Robert B.
Reich commented that other financially troubled companies would undoubtedly follow suit:
From here on in, it will be impossible for a board of directors to not consider employee
ownership as one potential business strategy. However, dome industry analysts doubted that
employee ownership would be effective in the long run because of inherent conflicts between
labor and management, or between different labor groups. It cant work, declared former
Chrysler chairman Lee A. Iacocca. What do you think will happen when n its a choice between
employee benefits and capital investment?
15
Proponents of deregulation are confident that the changes accompanying it will result in a
stronger, more stable, and efficient industry, better reequipped than ever to serve the needs of the
flying public. Others maintain that at least some degree of regulation is needed to guarantee
safety and fair competitive practices.
SAFETY:
In troubling criticism of deregulation is that aggressive competition has forced airlines to cut
corners, resulting in safety lapses. In 1990, Eastern Airlines was handed a sixty-count federal
indictment charging it with shoddy and dishonest maintenance practices. The indictments came
after years of complaints by mechanics for the financially troubled airline who claimed that
pressures to cut costs led to maintenance shortcuts and falsification of maintenance records. In
January 1991, Eastern ceased operation.
Critics contend that Eastern was hardly alone in its cavalier approach to safety. They charge that
the FAA is understaffed and poorly managed and that money shortages have caused all the
airlines to relax safety standards. They point not only to increased pressured on the labor force
but also to companies reluctance to replace their aging fleets, the congestion of airspace caused
by increased air travel, crowded hub airports that create security risks ,and overworked and
sometimes poorly trained air traffic controllers. Yet, statistically, passengers are no more likely to
die in a plane crash since deregulation than they were before it. Still, critics maintain that, despite
the airlines and governments efforts to assure the traveling public to the contrary, air safety is in
need of substantial improvements.
Many critics feel that at least part of the problem lies in the dual role of the FAA. Charged
simultaneously with promoting the economic health of the aviation industry and fostering safety,
the agency is often at odds with itself. In addition, the FAAs budget was cut and the number of
inspectors reduced in the 1980s, the same period which the number of passengers multiplied and
the number of air traffic controllers was reduced. Furthermore, unions, which stand to benefit
from the increased scrutiny and higher standards imposed by the FAA continue to be major
instigators foe a change. However, even neutral commentators have suggested that it is time to
impose some degree pf regulation in the form of stronger FAA oversight, on the industry. In fact,
the FAA has been accused of suffering from a tombstone mentality that caused the agency to
delay acting on safety concerns until negative publicity generated by a crash forces the issue.
Even after safety measures are recommended by the National Transportation Safety Board
16
(NTSB), the agency charged with investigating accidents, the FA has been criticized for not
always following through.
Aging aircraft became a major concern during the late 1980s and early l1990s. In 1988, an Aloha
Airgroup Boeing 737-200, purchased in 1969, lost the top of its fuselage while flying at twentyfour thousand feet. A flight attendant was immediately sucked out of the plane and plunged to
her death. The plane made a harrowing emergency landing, but not before sixty-five passengers
suffered injuries, some serious. Congress responded in 1991 by passing the Aging Aircraft Safety
Act (49 App.>S>C>A 1421 note), which requires airlines to demonstrate that their older planes
are airworthy. Critics claim that enforcement of the law has been lax and that it ignores other
compelling reasons to replace aging aircraft, such as the availability of newer fire retardant seat
and of updated seats designed to be more resistant to the impact of a crash.
Concerns over airline safety became even more acute in the early 1990s with a series of fatal
crashes. The Boeing Company, a major producer of aircraft predicts that the number of jet
crashes worldwide could double by the year 2010 if accident rates of the early1990s continue.
Such a projection strikes fear into the hearts of the flying public. However, according to David R.
Hinson, the federal aviation administrator, flight safety is not a simplistic science that lends itself
to easy solutions. Flight safety experts point out that all and flight attendants, most airlines now
prohibit smoking on all domestic flights and on many international flights as well. Air quality
was again questioned in 1993 when it was revealed that, as a cost saving measure, many airlines
were circulating fresh air into their aircraft less frequently than they had in the past. This led to
complaints by passengers and crew of headaches, nausea, and the transmission of respiratory
illnesses. Although the FAA conceded that circulating more fresh air would be beneficial, it
backed off from requiring airlines to do so because of the cost involved.
The Safety of babies and toddlers on airplanes was investigated after it was shown that a number
of them suffered injuries, some serious or fatal, during incidents that did not injure their parents.
Unlike adults and their luggage, children under age two are not required to be secured on an
airplane but rather may be held on an adults lap. These lap babies are often ripped from the
adults grasp during turbulence or crashes. In 1994, Representatives Jolene unsoeld, D-wash.,
and Jim Ross Lightfoot, R-Iowa, introduced a bill that would have required the use of child
safety restraints on commercial flights .however, the measure, which was supported by the
Association of flight attendants. NTSB, Air Transport Association, Aviation Consumer Action
Project, and Air Line Pilots Association, was opposed by the FAA and eventually defeated. An
17
FAA spokesperson, testify in opposition to the bill, said the FAAs research indicated that if all
children who needed them were placed in child safety seats, the airlines would save
approximately one life over a ten year period, and the childrens families would save about $2.5
billion. A study conducted at Harvard Medical School estimated that one infant a year could be
saved through the use of safety seats. The sponsors of the bill vowed to continue to press for
more stringent safety standards for babies.
Safety concerns will continue to plague the airline industry, even though the FAA assures the
flying public that, statistically, at least, flying a major airline in the United States is far safer than
driving on an interstate highway. Questions persist about the FAAs effectiveness in overseeing
air safety. And financially strapped airlines, which posted $12.8 billion in losses from 1990 to
1994, must make difficult risk-benefit analyses when contemplating new safety measures.
Some critics such as Ralph Nader, who initially supported deregulation, are now calling for
limited government intervention to ensure safety. However, experts warn that the U.S airlines
system. Which is already extremely safe, probably can never be completely without risk.
According to Stuart Matthews , president of the flight Safety Foundation, if the public
absolutely demands that flying be totally safe, you are going to have to ban flying. Given the
taking a calculated risk and not flying at all, Americans, who take their lives into their hands
each time they drive, will probably continue to trust the statistics and take their chances. What
form the industry will assume when the deregulation dust finally settles remains an open
question.
HISTORY:
Indian Airlines was constituted as a corporation under Air Corporation Act, August 1953.It is
wholly owned corporation of the government of India and is a product of nationalization of the
existing private airlines operating scheduled air services within India and between India and
18
Burma, Nepal, Ceylon, Pakistan and Afghanistan. The Airlines, which merged and integrated to
form Indian Airlines, were:
Before 1953, i.e., before these Airlines merged to form Indian Airlines, there were no set rules and
standards of operations of the Airlines. The operations mainly were competition oriented and the
result of which was that every Airlines wanted to be the cheapest one. Thus resulted in almost all
the Airlines did not have enough money to maintain the Aircrafts. They were presented an
excellent example of unhealthy competition. Ultimately the Govt. took over by passing the Air
Corporation Act and Indian Airlines come into being. The affairs of the corporation are conducted
by a board of Directors.
Indian Airlines is one of the public sectors corporations in India. A statutory corporation like
Indian Airlines is formed with definite objectives in th interest of the public through based on preset principles.
OBJECTVE FUNCTIONS OF INDIAN AIRLINES:
It shall be the function of the corporation to provide safe, efficient, and adequate, economical and
properly co-ordinate air transport services whether domestic or international or both.
19
Corporation shall so exercise their power as to secure that air transport service are developed to the
best advantage and in particular, so exercise their power as to secure that the services are provided
at reasonable charges. The Act provides for the constitution of a Board of directors, which may
exercise all such power and do all such acts and things as may be exercised or done by the
corporation under this act. The Board of Directors shall consist of a chairman cum Managing
Director to be appointed by the Central government and not less than eight and not more than
fourteen other Directors to be appointed by the Central government.
Indian Airlines is a public utility service under the Industrial Disputes Act 1947 has to work in the
interests of the public. In view of this, the corporation is accountable to the public through the
Govt. and parliament for its activities. This control is two fold:
The credit of launching the first real effective internal air services in India goes to Tata sons who
from 15 October 1932 began operating air mail services between Karachi and madras once a week
with a single engine aircraft. Indian National airways established in December 1934 an air service
between Karachi and Lahore linking with imperial airways service at Karachi. In 1934 Tata sons
doubled its weekly frequency on the Karachi-madras route and a weekly service between Bombay
and Trivandrum with a halt at Goa and Cannannore in Kerela. In 1937 a bi weekly service was
operated between Bombay and Delhi via Indore, Bhopal, and Gwallior. India national airways
launched their venture by establishing an air link from Calcutta to Dhaka and Rangoon. A third
company, air services of India came into existence in 1937-38.
20
In 1960, the logo for Indian airlines was selected which was based on golden section of ancient
Greeks. A had been italicized to suggest speed and the truncation of first stroke indicates
movement while the second emphasized on reliability.
The forward surging of the symbol was intended to show the looking ahead characteristic and
the orange colour gave vibrancy and purity.
The Logo has now been changed and the Wheel of konark which is replica of the sun now
symbolizes Indian Airlines.
Amalgamation of Air India Limited and Indian Airlines Limited with National Aviation
Company of India Limited:
The Government of India, on 1 March 2007, approved the merger of Air India and Indian
Airlines. Consequent to the above, a new Company viz National Aviation Company of India
Limited (NACIL) was incorporated under the Companies Act, 1956 on 30 March 2007 with its
Registered Office at Airlines House, 113 Gurudwara Rakabganj Road, New Delhi.
It has been decided that post merger, the new entity will be known as Air India while
Maharaja will be retained as its mascot. The logo of the new airline will be a red coloured
flying swan with the Konark Chakra in orange placed inside it. The flying swan has been
morphed from Air Indias characteristic logo The Centaur whereas the Konark Chakra was
reminiscent of Indians logo. The Corporate Office of NACIL will be at Mumbai
This new AIR INDIA is
21
here in international and domestic market with this new image and logo.
22
BENEFITS TO EMPLOYEES
National Aviation of India Limited provides benefits to its employees under two categories:
I)
STATUARY BENEFITS:
c) Wages Act,1936 :
Earlier wages were not paid on time. According to this act, the wages and
salaries will be paid on fixed time and all the deductions dine would be told to the employees.
23
24
a) Scholarships:
These are provided to the wards of the employees. It basically starts from class
II till the post graduation level e.g. MBA, Engineering etc. The amount of scholarship given to
the employees for their children is on yearly basis which is shown in the table below:
Particulars
Class II - Class IV
Class V Class VIII
Class IX Class XII
For Graduates
For Diploma Holders
For Engineering/MBA etc.
125
250
375
500
625
750
b) Air passage:
This Non-Statutory welfare facility is entitled for free and discounted passage to
travel. It is given to three types of staff:
1. For Permanent staff:
It starts after the completion of 1 year. Air passage for the permanent
staff is shown in the table below:
Discount (95%)
Discount (85%)
15
57
7 10
10 20
20 25
25 & Above
2
2
2
2
2
2
1
2
3
4
5
3
2
1
-
25
Discount (95%)
15 20
20 -25
25 & above
1
1
2
2
3
4
If any employee dies while service then, he will get Air Passage benefits half of
what he was actually getting while working.
If any employee dies after retirement then, he will get Air passage benefits half of
what he was actually getting after retirement.
26
For deceases employees, Air Passage benefits will be given only to employees spouse
or children
Note:
Children- Daughter/Son/Daughter-in-law/Son-in-law.
c) Housing Colonies:
NACIL provides Housing facilities to their employees on the basis of
their grades and as per their seniority level which is shown in the table below:
Designations
Grades
Type of flat
No. of houses
Peons/helper
Flat A1
200
288
B
C
D
48
88
22
Office Assistants
/Senior
assistant
Superintendent
Officers
Directors
office 3/6
7/8
9
9A-15
15 & above
Employees for this grade will get Type of flat A/B as shown in the above
table.
Employees for this grade get the House facility on the basis of their Joining
date for the particular post.
Requesting applications
Authority is approved by Executive Director
28
REGIONS
STATIONS
Northern Region
Eastern Region
Gangtok
Southern Region
Kodai Kanal
Western Region
Goa
NOTE:
Holiday Homes are given for the particular year only.
Facilities for the Kitchen are included.
In winters, Heater facilities are limited if an employee uses the facilities given beyond the
limits then certain amount is charged from them according to the rules and regulations of
NACIL.
Particulars
No. of Rooms
For Staff
For Officers (19 A)
1
2
3-9
25
35
29
9A-19
75
e) Medical Facilities:
Employees are provided free medical facilities, both ambulatory and
hospitalization. Fully equipped medical clinics are functioning at all important work places at
base stations manned by competent Medical officers. The employees families are provided
medical facilities under Contributory Scheme on payment of nominal contribution.
f) Loans:
Basically three types of loans were given to the employees. But now this facility is not
given to the employees since 2003-2004 onwards.
Housing Loans:
Employees are eligible for grant of housing loan subject to availability to availability of funds
after completion of 5years of service. Maximum housing loan can be granted up to Rs. 3 lakhs.
Vehicle Loans:
Loans are granted to employees for the purchase of cars, scooters and
cycles, subject to the availability of funds. Vehicle loan limits are as under:
Vehicle
New car
Old car
New Scooter/ Motor cycle
Old scooter/ Old Motor cycle
Cycle
75,000/50,000/15,000/6,000/600/-
Miscellaneous Loan:
30
k) Cooperative Thrift & Credit society/ Fair price shop/ Death benefit society:
31
l) Employees working at the airports at Delhi, Mumbai, and Kolkata are provided
free/subsidized transport from various rallying points.
m) Retirement gifts :
A gift of worth Rs.3000/- is given to the employees at the time of their retirement only
after the completion of their 25 years of satisfactory service.
n) Community centers:
NACIL has its own community centers at IA colony (Vasant vihar). It provides
community center facilities not only to the employees but also to their relatives and family
members at the nominal charges mentioned below:
Total charges for employees own family is Rs. 5250/- per day and for the other relations is Rs.
14000/- per day shown in the table below:
Rent
Electricity charges
Water charges
Security (refundable)
Total Amount
Rs. 1250
Rs. 1000
Rs. 500
Rs. 2500
Rs. 5250/-
5000
1000
500
32
Security ( Refundable)
Total amount
7500
14000/-
If an employee want community centre for 2 days or more than 2 days then he has to pay the
charges doubled for what he was actually paying for one day in both the above cases. But the
security amount remains the same.
A care taker is appointed for the proper supervision of the occasions. After the completion of the
auspicious occasion, an employee needs a NOC i.e. No objection certificate from the welfare
associations in order to prove that he has not done any harm during the time of get together.
o) Types of leaves given to the employees:
Casual leave: An employee is eligible for Casual leave to the extent of 10 days in a
financial year either for the private affairs or on grounds of sickness. This leave
cannot be not be accumulated. Normally not more than 3days casual leave is granted
at a time in two consecutive months. Casual leave can be combined with
extraordinary leave i.e. leave without pay and allowances. Casual leave cannot be
combining with any other kind of leave except when an employee who has exhausted
the full period of sick leave due to him requires more leave on grounds of sickness he
can be granted privilege/casual leave in continuation of sick leave.
Privilege Leave: An employee is eligible for 30 days privilege leave for every 11
months of service. This leave is accumulated upto 300 days. The leave account of an
employee is written up in the retrospect only once for each period of 11 months service
by adding 30 days to the opening balance as on first day of the period and deducting there
from total leave availed of during the period. Reckoning of leave on pro rata basis is
permissible during the currency of period of 11 months service if the balance at the
beginning of the period is less than the individuals leave requirement. Leave on pro rata
basis is calculated at the rate of one day for every 11 days of service; fraction of a day is
ignored. The carry over of leave thus worked out and is restricted only to 3oo days and
the balance of leave, if any, will be lapse unless the employee has made application for
33
the grant of leave and the same was refused before the expiry of 11 months period. In
such cases the employee may be authorized to carry forward to the next leave period the
full amount of leave assessed above provided the number of days of privilege leave
carries over by him, and refused in writing owing to extengencies of corporation work.
ii)
The maximum number of days for which leave can be enchased half of the
privilege leave lying at the credit of an employee on the date of encashment
reduced by one years entitlement to be retained at the credit of the employee.
iii)
iv)
v)
The period of Privilege leave permitted to be encashed is not reckoned for the
purpose of earning privilege leave or any kind of leave.
vi)
A temporary employee although he earns his privilege leave from the date of his appointment, is
eligible to avail of the leave only after he has completed 1 years service.
For the purpose of determining privilege leave entitlement, period of absence on the following
types of leave is count as service:
a) Casual leave
34
b) Compensatory leave i.e. day off in lieu of attending work on a normal off day.
c) Sick Leave
d) Quarantine Leave
e) Special leave granted by the Managing Director to count towards service
f) Accident and disability leave on full day.
g) Special leave for injuries caused during sporting activities.
Sick leave:
An Employee is eligible for sick leave of 20 days on half pay, which may
be commuted at 10 days on full pay for each calendar year. Sick leave may be accumulated upto
120 days with full pay for and may be availed of half pay for double the period i.e. upto 240 days.
In case of permanent employee who have completed 1 year of services, it
is permissible to grant the full period of sick leave i.e. 20 days on half pay or 10 days on full pay,
at any time during the year. Temporary Employees with less than a years service is eligible for
grant of sick leave on prorate basis.
Sick leave for period exceeding two days is supported by medical certificate from either the
Medical officer of the corporation or a medical practitioner (Allopathic) duly approved by
corporation
Special Sick leave:
An employee suffering from:
a) Tuberculosis
b) Leprosy
c) Cancer
d) Organic heart disease requiring hospitalization and / or prolonged rest in bed.
e) Paralysis of vascular, infective or degenerative origin affecting one or more limbs ( but
not including paralysis like Balls palsy); or
f) Significant mental illness treated in government mental hospital ( in such cases a
certificate from the hospital superintendent or any other Competent authority of a
Govt. Mental hospital empowered to issue such certificate shall be accepted by the
35
corporation subject to the approval of the same by the Medical Officer of the
Corporation.
g) On the recommendation of the Medical Officer of the Corporation, Special Sick Leaves
may also be granted in cases where the employee is suffering from the following
diseases or ailments or injury requiring hospitalization or prolonged rest in bed.
i) Renal (Kidney failure)
ii) Hepatic (liver failure)
iii) Chronic Corpulmonale
iv) Empyma theracis
v) Collagen diseases:
Systemiculus reythemetosus
Ploymycsitis
Rheumatoid arthritis
Jomyelinating disease
Special sick leave on half basics pay may be granted on prorata basis for a fraction of a year4s
service e.g. an employee with one and a half years service is eligible for 45 days Special Sick
Leave.
out of and in
1) during the courses and in consequence of the due performance of the duties assigned to
him.
2) in the performance of any particular duty which the effect of increasing his liability of
illness beyond the ordinary risk of attending the normal duties assigned to him; may on
production of a medical certificate in the prescribed form be granted accident and disability
leave upto a maximum of 120 days.
B) During the period of leave granted under sub regulation (A) the employee is entitled to
his full pay; provided that an employee who is unable to resume duty after the expiry
of the leave regulation, may be granted, at the discretion of the Managing Director, an
extension of such leave on dull pay for a period not exceeding 274 days, if a medical
board constituted by the corporation for the purpose, recommends such extension.
The grant of this leave is subject to the condition that the accident or illness is not due to
the employees negligence or default and that the employee obeys all instructions given by
the approved Medical Authority as to treatment during the period of absence.
Study Leave:
An employee may be granted study leave by the Managing director at his
discretion on the merits of each case on such terms and conditions, as he may deem
necessary.
Quarantine Leave:
An employee may, on a quarantine certificate be issued by a medical authority
approved by the Managing Director, be granted leave of absence from duty for a period not
exceeding 30 days. Quarantine leave is to be granted in cases of cholera, small pox, plague,
diphtheria, typhus fever, cerebrospinal meniflities and measles. Quarantine leave is not
admissible in cases in which an employee himself is suffering from an infectious disease.
In such cases the employee is given the normal
credit.
Maternity Leave:
37
A female employee is eligible for grant of Maternity Leave on full pay for a
period, which may extend upto 135 days.
Paternity Leave:
A male employee is eligible for grant of Paternity Leave on full pay for a period of
15 days during the confinement of his wife.
Extraordinary Leave:
In exceptional circumstances to be recorded by sanctioning authority and only
when other leaves are not admissible under these regulations, a permanent employee or a
temporary employee who has completed one years continuous service may be granted
Extraordinary Leaves i.e. Leave without pay and allowances , the period of which shall not
exceed 90 days at a time. This leave is granted at the rate of 30 days for every completed
year of service. The period of this leave shall, however not 270 days in the entire period of
service exceed. However, Managing director may on compassionate grounds permit any
part or whole of such leave to be treated as leave with pay debitable to the employees
future leave account. A temporary employee with less than one years service is eligible for
grant of extraordinary leave under the above circumstances upto a maximum of 15 days.
Any Employee suffering from:
Tuberculosis
Leprosy
Cancer
Organic heart disease requiring hospitalization and / or prolonged rest in bed.
Paralysis of vascular, infective or degenerative origin affecting one or more limbs
( but not including paralysis like Balls palsy); or
Significant mental illness treated in government mental hospital ( in such cases a
certificate from the hospital superintendent or any other Competent authority of a
Govt. Mental hospital empowered to issue such certificate shall be accepted by the
corporation subject to the approval of the same by the Medical Officer of the
Corporation.
38
Systemiculus reythemetosus
Ploymycsitis
Rheumatoid arthritis
Jomyelinating disease
Any other major illness or injury requiring hospitalization continuously for a period
of 3 months or more provided such hospitalization has the approval of the Medical
Officer of the corporation.
PLI is provided for the performance of main revenue generation factors, these are:
Number of customers travel during a time period.
Number of flies.
On the basis of performance of these factors, a part of revenue is provided to its employees.
According to PLI:
Employees of same level will get same level of incentives.
It is based on service quality, timeliness and achievement of task within predetermined
time.
Main purposes of PLI are:
To maintain discipline
To avoid strike, walk-outs and other grievances.
To avoid unrest conditions
PLI varies year by year, and has different criteria for different for different categories of
employees.
In relation to PLI settlement, a memorandum of settlement forms time to time and also some
agreements have been done periodically (around once in 3 years).These agreements consist all
terms and conditions along with amount has to be paid for employees for that period. Parties
signature and witness signature get putted at the end of the agreement.
These agreements have been formed with eight different unions under INDUSTRIAL
DISPUTES ACT 1947.
40
AIR INDIA
JET AIRWAYS
Youth Fare
DISCOUNTS:
INDIVIDUAL
TRAVELERS
HOUSES
SCHEMES:
Discover India
Spot Fair
Three weeks of enchantment for only USD 1,000
ABN AMRO Bank Debit
Card
Jet kids
SHOPPING:
Sky Bazaar
CHECK Ins:
E-check in is available
DINNING:
41
ENTERTAINMENT:
a variety of music,
Special JetScreen
1st
class:Personal
Entertainment Appliances
music, movies, sports and much more.
Audio
Vedio
on
Demand,in few aircraft
e-magazine
Y
class:Personal
Entertainment device
Inbound theatre
Outbound Theatre
DIFFERENT
7
CLASS
OF SEATES:
LOYALTY
F, C/J, Y Classes
Friquent
PROGRAMMES:
Programmed
Jet Privilege Scheme
customization facility is
CUSTOMIZATION:
available
S.NO.
FACTORS
DISCOUNTS:
INDIVIDUAL
TRAVELERS
F, C/J, Y Classes
Flier
AIR INDIA
KINGFISHER
Group Travel
HOUSES
SCHEMES:
Corporate Travel
Companion offer
SHOPPING:
Sky Bazaar
Air boutique
CHECK Ins:
E-check in is available
a variety of special foods are available on
DINNING:
IN-FLIGHT
ENTERTAINMENT:
demand
a variety of music,
1st class:Personal Entertainment Appliances
Audio Vedio on Demand,in few aircraft
Y class:Personal Entertainment device
Inbound theatre
Outbound Theatre
DIFFERENT
7
CLASS OF SEATES:
LOYALTY
F, C/J, Y Classes
PROGRAMMES:
CUSTOMIZATION:
43
44
Daily, monthly and annual reports are also generated by the system. The database is available for
previous 13 months.
DATA SOURCES:
Commercial department
On-line data capture based on fill-in mask in PSS system on daily basis.
Off-line data (missing data) on weekly basis.
On-line flight schedule down loaded on daily basis.
Master data maintained in system and updated as and when suggested by concerned
department.
Delay codes provided by engineering department.
Rate cargo, mail, excess baggage provided by commercial department.
A/c validation table provided by commercial department.
Flight sector distance provided by Commercial Department.
Flight sector Distance provided by Planning department.
IBM
ES9000
VHI
SERVER
IB
E
MAINFRAM
DBP
SERVER
LOAD
BALANCE
IB
EE
ISP
WEBSIT
E
45
When a customer access to the website of AIR INDIA, through ISP he gets connected to IBE.
There are two ISP and two IBE in the system to reduce redundancy. This IBE then connects to
VHI Server. This VHI server has already stored data that a customer can access. On the other
hand there is a DBP server and it contains customer data such as booking details, fairs, ticket
printing. Data in DBP server is variable and changes according to customers but VHI server data
does not change according to customers.
46
IBM ES9000
MAINFRAME
SNA
374
0
VHI
DBP
47
CORPORATE OBJECTIVES
To meet the demand for reliable, economic and efficient transport services through high standards
of service customers and passengers.
To maximize the essential and strategic communications within India in times of national
emergencies and to be reliable second line defense.
To maximize passenger satisfaction by improving passenger/cargo services and amenities.
To enhance their period by securing a reasonable return in capital, consistent with Social
Objectives.
To foster international tourism in India and contribute to national balance of payment.
To stimulate domestic tourism and internal trade in order to broaden the Indian Air market.
To participate in the development of national aircraft and ancillary industries.
To promote good image of public sector in consonance with national aspirations.
48
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problems. It has understood
as a science of studying how research is being done scientifically. In it we study the various steps
that are generally adopted by a researcher in studying his research problem along with the logic
behind them. It is necessary for the researcher to know not only he research method/techniques
but also the methodology.
As we know that for the achievement of any goal, a proper methodology should be adopted.In
the same manner for the success of a project, it is necessary to have a clear methodology.
Therefore, in the research methodology following terms are included: Research Design
Data at a Glance
Data Collection
RESEARCH DESIGN:
A Research design is purely and simply the framework or plan for the guides collection and
analyzing of data.
49
Research design is a systematic way to achieve the desired objective in a right manner. It is a
blue print used to guide the future course of actions. It may be worthwhile to mention here that a
research design is nothing more than the framework for the study.
The Research Design decisions happen to be in respect of:
50
response.
DATA AT A GLANCE:
Primary Data
Secondary Data
DATA COLLECTION:
Observation Method
Experimentation Method
Survey Method
SAMPLE SIZE:
Fifty respondents.
SAMPLE AREA:
HR and Commercial Department, AIR INDIA (NACIL), Delhi.
SAMPLE UNIT:
Existing employees of NACIL, Delhi.
SAMPLE TECHNIQUE:
Simple Random Sampling with modification to biased responses.
RESEARCH DESIGN:
Exploratory and Descriptive.
DATA COLLECTION:
PRIMARY DATA:
Through Questionnaires
Through Direct Interviews
SECONDRY DATA:
http://www.airindia.in
http://www.flyingreturns.co.in
http://www.google.com
52
DATA
ANALYSIS
FOR
EMPLOYEES RESPONCES:
1. Frequencies:
Statistics
Valid
Missing
50
0
Cumulative
Valid
Frequency
2
3
Percent
4.0
6.0
Valid Percent
4.0
6.0
Percent
4.0
10.0
14.0
14.0
24.0
38
76.0
76.0
100.0
Total
50
100.0
100.0
53
F
ro
m
lew
h
o
w
n
g
a
r
e
y
o
u
iTS
tLM
N
A
C
I
L
?
tixre
s
h
a
ta
n
w
o
y
e
a
r
s
o
ith
S
x
s
e
lvT
n
w
e
lvye
a
rs
2. Frequencies:
Statistics
Are you satisfied with Welfare policies and PLI scheme of NACIL?
N
Valid
Missing
50
0
Mean
1.3600
Are you satisfied with Welfare policies and PLI scheme of NACIL?
Cumulative
Valid
YES
NO
Frequency
32
18
Percent
64.0
36.0
Valid Percent
64.0
36.0
Total
50
100.0
100.0
54
Percent
64.0
100.0
rP
A
e
y
o
u
tm
s
a
iY
fE
iO
tS
e
d
w
h
W
lL
fIsc
a
rh
e
p
lN
o
c
s
a
n
N
A
C
IL
?
3. Frequencies:
Statistics
are you dssatisfied with less leaves?
N
Valid
Missing
Mean
50
0
2.0000
Cumulative
Valid
no
Frequency
50
Percent
100.0
Valid Percent
100.0
55
Percent
100.0
a
re
y
o
u
d
s
a
tis
fe
d
w
ith
le
sle
a
v
s
?no
4. Frequencies:
Statistics
are you dssatisfied with more working houres?
N
Valid
Missing
Mean
50
0
2.0000
Cumulative
Valid
no
Frequency
50
Percent
100.0
Valid Percent
100.0
56
Percent
100.0
a
re
y
o
u
d
s
a
tis
fe
d
w
ith
m
o
re
w
o
rk
in
g
h
o
u
re
s
?no
5. Frequencies:
Statistics
are you dssatisfied with less remuniration?
N
Valid
Missing
50
0
Mean
1.8800
yes
no
Frequency
6
44
Percent
12.0
88.0
Valid Percent
12.0
88.0
Total
50
100.0
100.0
57
Percent
12.0
100.0
a
re
y
o
u
d
s
a
tis
fe
d
w
ith
le
sre
m
u
n
ira
to
n
?yneos
6. Frequencies:
Statistics
are you dssatisfied with lack of personal touch?
N
Valid
Missing
50
0
Mean
1.8400
are you dssatisfied with lack of personal touch?
Cumulative
Valid
yes
no
Frequency
8
42
Percent
16.0
84.0
Valid Percent
16.0
84.0
Total
50
100.0
100.0
58
Percent
16.0
100.0
a
re
y
o
u
d
s
a
tis
fe
d
w
ith
la
c
k
o
fp
e
rs
o
n
a
lto
u
c
h
?yneos
7. Frequencies:
Statistics
are you dssatisfied with working environment?
N
Valid
Missing
50
0
Mean
1.8000
are you dssatisfied with working environment?
Cumulative
Valid
yes
no
Frequency
10
40
Percent
20.0
80.0
Valid Percent
20.0
80.0
Total
50
100.0
100.0
59
Percent
20.0
100.0
a
re
y
o
u
d
s
a
tis
fe
d
w
ith
w
o
rk
in
g
e
n
v
iro
n
m
e
n
t?yneos
8. Frequencies:
Statistics
Up to what extent are you satisfied retention programs(PLI & Welfare)?
N
Valid
Missing
Mean
49
1
3.0000
Cumulative
Valid
Missing
Total
Dissatisfied
Somewhat Satisfied
Frequency
8
33
Percent
16.0
66.0
Valid Percent
16.3
67.3
Percent
16.3
83.7
Highly Satisfied
16.0
16.3
100.0
Total
49
98.0
100.0
System
2.0
50
100.0
60
U
p
to
w
h
a
te
xn
ta
re
y
o
u
s
a
tife
d
rte
n
io
p
ro
g
a
m
s
(P
L
I&
lSM
fDHoiisgsm
W
raelnytwishfedSe
e
a
)ati?
sfe
d
9. Frequencies:
Statistics
Do your suggeestions and complaints get attention?
N
Valid
Missing
Mean
50
0
2.5400
Cumulative
Valid
Never
Sometimes
Frequently
Always
Frequency
9
14
Percent
18.0
28.0
Valid Percent
18.0
28.0
Percent
18.0
46.0
18
9
36.0
18.0
36.0
18.0
82.0
100.0
61
Total
D
o
yu
rsg
e
s
tio
n
s
ad
c
o
m
p
la
in
ts
g
e
tae
n
tio
?
rA
N
e
v
S
tlw
o
m
ia
e
F
q
u
lyys
n
50
100.0
100.0
10. Frequencies:
Statistics
Scholarship
N
Valid
Missing
Mean
45
5
2.2667
Scholarship
Cumulative
Valid
Poor
Fair
Frequency
14
10
Percent
28.0
20.0
Valid Percent
31.1
22.2
Percent
31.1
53.3
Good
16
32.0
35.6
88.9
Excellent
10.0
11.1
100.0
Total
45
90.0
100.0
62
Missing
System
Total
S
c
h
o
la
rs
h
ipG
rM
P
o
iE
F
a
d
xisce
lg
n
t
10.0
50
100.0
11. Frequencies:
Statistics
Air passage
N
Valid
Missing
Mean
49
1
3.0204
Air passage
Cumulative
Valid
Missing
Poor
Not bad
Frequency
4
7
Percent
8.0
14.0
Valid Percent
8.2
14.3
Percent
8.2
22.4
Good
22
44.0
44.9
67.3
Excellent
16
32.0
32.7
100.0
Total
49
98.0
100.0
System
2.0
63
Total
50
A
irp
a
sg
eG
rM
P
o
tE
N
b
a
d
xisce
lg
n
t
100.0
12. Frequencies:
Statistics
Housing Colonies
N
Valid
Missing
Mean
48
2
2.7708
Housing Colonies
Cumulative
Valid
Poor
Frequency
6
Percent
12.0
Valid Percent
12.5
64
Percent
12.5
Missing
Fair
Good
23
Excellent
10
Total
48
System
Total
50
H
o
u
s
in
g
C
o
ln
ie
sG
rM
P
o
iE
F
a
d
xisce
lg
n
t
18.0
18.8
31.3
46.0
47.9
79.2
20.0
20.8
100.0
96.0
100.0
4.0
100.0
13. Frequencies:
Statistics
Holiday Homes
N
Valid
Missing
Mean
49
1
2.6939
Holiday Homes
Cumulative
Valid
Poor
Fair
Frequency
5
12
Percent
10.0
24.0
Valid Percent
10.2
24.5
65
Percent
10.2
34.7
Missing
H
o
lid
a
y
H
o
m
e
sG
rE
P
o
iM
F
a
d
xisce
lg
n
t
Good
25
50.0
51.0
85.7
Excellent
14.0
14.3
100.0
Total
49
98.0
100.0
System
2.0
50
100.0
Total
14.Frequencies:
Statistics
Medical Facilities
N
Mean
Valid
Missing
50
0
3.2600
Medical Facilities
66
M
e
d
ic
a
lF
c
ilte
sG
P
rxce
o
iE
F
a
d
ln
t
Cumulative
Valid
Poor
Fair
Frequency
2
4
Percent
4.0
8.0
Valid Percent
4.0
8.0
Percent
4.0
12.0
Good
23
46.0
46.0
58.0
Excellent
21
42.0
42.0
100.0
Total
50
100.0
100.0
15.Frequencies:
Statistics
Group Insurance
N
Valid
Missing
Mean
45
5
2.2667
Group Insurance
67
Cumulative
Valid
Missing
G
ro
u
p
In
s
u
ra
n
c
eG
rM
P
o
iE
F
a
d
xisce
lg
n
t
Poor
Fair
Frequency
11
14
Percent
22.0
28.0
Valid Percent
24.4
31.1
Percent
24.4
55.6
Good
17
34.0
37.8
93.3
Excellent
6.0
6.7
100.0
Total
45
90.0
100.0
System
10.0
50
100.0
Total
16.Frequencies:
Statistics
Long Service Mementos
N
Mean
Valid
Missing
50
0
2.3800
68
L
o
n
g
S
e
rv
ic
e
M
m
e
n
to
sfG
P
rxce
o
iE
a
d
ln
t
Cumulative
Valid
Poor
fair
Frequency
7
19
Good
22
Excellent
Total
50
Percent
14.0
38.0
Valid Percent
14.0
38.0
Percent
14.0
52.0
44.0
44.0
96.0
4.0
4.0
100.0
100.0
100.0
17.Frequencies:
Statistics
Financial Assistance for higher Studies
N
Mean
Valid
Missing
50
0
2.7200
69
Cumulative
Valid
F
in
ac
ilA
s
ita
n
c
e
fo
rh
ig
e
rS
tu
d
ie
sfG
P
rxce
o
iE
a
d
ln
t
Poor
fair
Frequency
2
17
Percent
4.0
34.0
Valid Percent
4.0
34.0
Percent
4.0
38.0
Good
24
48.0
48.0
86.0
Excellent
14.0
14.0
100.0
Total
50
100.0
100.0
18.Frequencies:
Statistics
70
Fastival Advance
N
Valid
Missing
Mean
50
0
2.6000
Fastival Advance
F
a
s
tiv
a
lA
d
v
a
n
c
efG
P
rxce
o
iE
a
d
ln
t
Cumulative
Valid
Poor
fair
Frequency
8
11
Percent
16.0
22.0
Valid Percent
16.0
22.0
Percent
16.0
38.0
Good
24
48.0
48.0
86.0
Excellent
14.0
14.0
100.0
Total
50
100.0
100.0
19.Frequencies:
Statistics
71
Valid
Missing
Mean
48
2
2.7917
Cumulative
Valid
Missing
Total
Poor
fair
Frequency
3
9
Percent
6.0
18.0
Valid Percent
6.3
18.8
Percent
6.3
25.0
Good
31
62.0
64.6
89.6
Excellent
10.0
10.4
100.0
Total
48
96.0
100.0
System
2
50
F
a
c
ilte
s
p
ro
v
id
ea
fte
rd
a
thfG
rE
P
o
iM
a
d
xisce
lg
n
t
4.0
100.0
72
20.Frequencies:
Statistics
Retierment gifts
N
Valid
Missing
Mean
50
0
2.4200
R
e
tirm
e
n
tg
ifsfG
P
rxce
o
iE
a
d
ln
t
Retierment gifts
Cumulative
Valid
Poor
fair
Frequency
6
20
Percent
12.0
40.0
Valid Percent
12.0
40.0
Percent
12.0
52.0
Good
21
42.0
42.0
94.0
Excellent
6.0
6.0
100.0
Total
50
100.0
100.0
21.Frequencies:
73
Statistics
Community center
N
Valid
Missing
Mean
48
2
2.5417
Community center
Cumulative
Valid
Missing
Total
Poor
fair
Frequency
4
19
Percent
8.0
38.0
Valid Percent
8.3
39.6
Percent
8.3
47.9
Good
20
40.0
41.7
89.6
Excellent
10.0
10.4
100.0
Total
48
96.0
100.0
System
4.0
50
100.0
74
C
o
m
u
n
ity
c
e
n
tr fG
rM
P
o
iE
a
d
xisce
lg
n
t
22.Frequencies:
Statistics
Different type of leaves
N
Valid
Missing
Mean
50
0
3.0800
Cumulative
Valid
fair
Good
Frequency
6
34
Percent
12.0
68.0
Valid Percent
12.0
68.0
Percent
12.0
80.0
Excellent
10
20.0
20.0
100.0
Total
50
100.0
100.0
75
D
ife
rn
ty
p
e
o
fle
a
v
sfG
iE
a
rxce
o
d
ln
t
23.Freque
ncies:
Statistics
Productivity Link Incentives
N
Valid
Missing
Mean
50
0
2.6000
Cumulative
Valid
Poor
fair
Frequency
5
16
Percent
10.0
32.0
Valid Percent
10.0
32.0
Percent
10.0
42.0
Good
23
46.0
46.0
88.0
Excellent
12.0
12.0
100.0
Total
50
100.0
100.0
76
P
ro
d
u
c
tivy
L
in
k
Ic
e
n
tiv
e
sfG
P
rxce
o
iE
a
d
ln
t
24.Frequencies:
Statistics
Age of the respondents
N
Valid
Missing
Mean
50
0
3.1800
Cumulative
Valid
18 to 25
25 to 35
Frequency
1
7
Percent
2.0
14.0
Valid Percent
2.0
14.0
Percent
2.0
16.0
35 to 45
24
48.0
48.0
64.0
45 and above
18
36.0
36.0
100.0
Total
50
100.0
100.0
77
A
g
e
o
fth
e
rs
p
o
n
d
ets423158atond3425bove
25.Frequencies:
Statistics
Designation
N
Valid
Missing
Mean
50
0
1.8000
Designation
Cumulative
Valid
Top level
Middle level
Frequency
10
40
Percent
20.0
80.0
Valid Percent
20.0
80.0
Total
50
100.0
100.0
78
Percent
20.0
100.0
D
e
s
ig
n
a
tio
nTM
o
p
le
ve
id
l
79
Correlations:
Do
your
suggestions
and
complaints
retention
your Pearson
suggeestions
and Correlation
complaints
get
.515(**)
attention?
Sig. (2-tailed)
N
Up to what extent Pearson
are
you
.000
50
49
.515(**)
satisfied Correlation
retention
programs(PLI
&
80
programs(PLI
Welfare)?
Sig. (2-tailed)
.000
49
49
CONCLUSION
Aviation Industry in India is one of the fastest growing aviation industries in the world. With the
liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid
transformation. In this era where people want to get more and more facilities, AIR INDIA is here
with its full carrier airline services. AIR INDIA is providing all possible services and policies for
all its customers and employees. But still the market share of this company is going down day by
day. In the first quarter of this year market share of Air India was 14.7%. On the other hand many
private airline companies who learned, how to make business in the field of aviation, from Air
India have more market share. Such as, Kingfisher and Jet airways, they come just few years
back in the market but having higher market share and market value than this company. In the
first quarter of this year, market share of Jet Airways was 22.7% which is much more than the
share of Air India.
81
After carefully analyzing this company I came to know the pros and corns of it and I want to
point it out that first Air India should modify its work culture. Air India has all resources
available with it but still they are not being utilized optimally.
In terms of employees satisfaction, 64% respondents are satisfied, the region behind it can be
job security. But as I moved further I came to know that 66% are somewhat satisfied but not
fully. But among dissatisfied employees 16% are dissatisfied due to lack of personal touch, 20%
are dissatisfied due to working hours and no one was dissatisfied with leaves and working hours.
When I asked about attention towards complaints and suggestion 36% said frequently and 18%
said never.18% among them responded that their complaints and suggestions always get
attention and 28% said sometimes.
35% find Scholarship as a good policy, 44% find Air passage as a good policy, 47% find
Housing colonies as a good policy, Holiday homes were rated as good by 51% respondents, 42%
and 47% find Medical facility as excellent and good respectively, 375 find Group Insurance
good.
RECOMMONDATIONS
As most of the employees find Retirement gifts poor, so I want to suggest modifying it. Group
Insurance and community centre should also be communicated among employees because I find
that most of the employees are unaware with it.
82
Thus what I want to suggest that Air India should market all those facilities which are being
provided by the company to its employees. In this way employees will realize what their
company is giving to them and they will feel a sense of responsibility towards it.
I dont find as such any big problem with this company except lack of motivation. So company
should work in this direction.
One thing for policy makers that they should assign task to employees with a deadline connected
with PLI.
I want to suggest something to Commercial department related to the scheme of corporate
houses. Currently for different corporate houses we have a discount scheme that we revise on
yearly basis. Every year new agreements form with new terms and conditions and rate of
discount, depending on the bargaining power of business house and company. We treat every
customer in a same manner whether it is with us from past one year or 15 years. We should
change the way of treating different customers, especially those who have been given a huge
profit from last so many years. For this we can have something like BEST CUSTOMER OF
THE YEAR or may be of three years. To give them honor we can display something about them
in our in-flight magazine, this will be a both way beneficial decision.
Same award treatment we can do with employees to motivate them.
83
LIMITATION
Every research study has certain limitations. These could be due to sample size, sampling
techniques, time available, money etc. this study has also certain limitations. The following are
worth mentioning:-
1. As the subject under study involves large population size so generalizations cant be
made.
2.
Due to time and financial constrains the study is restricted to Northern region.
Still every effort has been employed in order to reduce the impact of these limitations.
84
BIBLIOGRAPHY
BOOKS:
Kothari C.R., Research Methodology
New Age International (P) Ltd., 2005
Malhotra N.K., Marketing Research
Prentice Hall, Pearson Education, 2007
Kotler
&
Keller,
85
Marketing
Management
APPENDICES
QUESTIONNAIRE
Note: I am a summer trainee under NACIL, Delhi, and this survey is the part of my study. I
will be highly grateful if you would answer the following questions. Please tick across
preferred option.
2. Are you satisfied with welfare policies and PLI scheme of NACIL?
Yes
No
86
Less leaves
Less remuneration
Highly dissatisfied
Dissatisfied
Somewhat satisfied
Highly satisfied
Always
Frequently
Sometimes
Never
87
Policies
Excellent
Good
Fair
Scholarships
Air Passage
Housing Colonies
Holiday Homes
Medical Facilities
Group
insurance
scheme
Long
Service
Mementos
Financial
Assistance
for
higher studies
Festival Advance
Death
Benefit
society
Retirement Gifts
Community
centers
Different type of
leaves
Productivity Link
Incentives
Personal Details:
88
Poor
Designation:
Age:
18 to 25
25 to 35
35 to 45
45 and above
89