Abstract

Services are intangible by nature. Services are heterogeneous and airline services are no
exception to this. Services provided inside aircraft are intangible and highly variable. Airline
services are highly personalized. The airline product is a highly perishable one. The airline
companies Management believe that, they are providing committed quality of service to the
customers, but in the point of view of the customer, airlines are lacking in quality service.
Airlines lacks in awareness about service quality and are not aware that giving better service
to the customers helps in better company performances In view of the above there is ample
scope of study in the area of Service offerings with a view of Customer Service in domestic
airlines arena which has potential possibilities in Indian Airlines Industry.

To accomplish the objectives of the study, the data required has been collected using both
primary and secondary source. This study covers a sample of 56 respondents. Simple
Random Sampling techniques were used and a structured questionnaire was used for data
collection. This study showcases some of the findings in this direction with respect to Indian
Domestic Airline Industry. It highlights to examine how the customers are feeling about the
company’s services and its service quality. The two main constituents are the “quality
expected” and “quality perceived” by the customer. This study highlights that the passengers
are satisfied with the services quality reliability, responsiveness, assurance & empathy but
Indigo needs to improve on tangibility aspect. Best mark can show you how improving the
customer experience will create the differentiation necessary to increase sales and boost
referrals.

At the end conclusion and recommendations have been specified so as to make the project
work more meaningful and purposeful.

Table of Contents

1. Introduction…………………………………………………………………...……….…..1
1.1 Overview of the industry…………………………………………..……..……... 2
1.2 Challenges faced by the industry……………………………….……………..….3
1.3 Main players in the industry…………………………………………….…....…..7
1.3.(i) Market share of the players……………………………………..….....8
1.4 Objectives of the study…………………………………………………..…….…10
2. Literature Review……………………………………………………………………….…11

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 2.1 SERVQUAL Model……………………………………………………...………13
3. Methodology…………………………………………………………………………...….16
3.1 Significance of the study……………………………………………………....…16
3.2 Scope of the study………………………………………………………………..16
3.3 Research Design and Data collection………………………………………….…16
3.4 Analytical Tools…………………………………………………….……………17
4. Data Analysis…………………………………………………………………………...…18
4.1 Price of the ticket………………………………………………………………...18
4.1.(a).Immediate booking: 14th Feb………………………………………...18
4.1.(b).Prior booking of 3 months…………………………………………...18
4.2 Comparison on other factors………………………………………………….....19
4.3 Indigo Service Quality Data Analysis on various parameter……………..…......23
5. Conclusion………………………………………………………………………………...35
6. Recommendations…………………………………………………………………………36
7. References…………………………………………………………………………….......37
8. Annexure……………………………………………………………………………...…..38
LIST OF FIGURES

Figure No.1.1.Performance of domestic airlines for the year 2016………………………...…3

Figure No.1.2.Fuel Price………………………………………..…………………….………4

Figure No.1.3.Market Share of Indian carriers in domestic aviation market Feb.2016……….8

Figure No.1.4.Passenger Load Factor………………………………………………………....9
Figure No.1.5.RDG (Route Dispersal Guidelines)…………………………………………....9
Figure No.2.1.Gap Model of Service Quality………………………………………………..14
Figure No.4.1.Domestic Airline Price Comparison………………………………………….18
Figure No.4.2.Prior Booking Price Comparison……………………………………………..18
Figure No.4.3.Comparison on various factors……………………………………………….19
Figure No.4.4.Passengers Airline Preference………………………………………………...19
Figure No.4.5.Service Improvement Feedback………………………………………………20
Figure No.4.6.Performance of domestic airlines in Metropolitan cities for the year 2016…..20
Figure No.4.7.Passenger Complaints in March 2016………………………………………...21
Figure No.4.8.Reasons for Complaints……………………………………………………....21
Figure No.4.9.Complaint as percentage compared to the previous month…………………..22
Figure No.4.10.Well dressed and visually appealing staff…………………………………...23
Figure No.4.11. Hassle free check-in & boarding……………………………………………23
Figure No.4.12. Efficient Baggage Handling Mechanism…………………………………...24
Figure No.4.13. Modern Aircrafts & Clean Facilities………………………………………..24

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Figure No.4.14. Variety and choices of in-flight entertainment facilities……………………25
Figure No.4.15. Variety and choices of in-flight meals……………………………………...25
Figure No.4.16.Flights are on time…………………………………………………………..26
Figure No.4.17. Right services at the first time………………………………………………26
Figure No.4.18. Efficient check-in process…………………………………………………..27
Figure No.4.19. Remedial process for delayed or missing baggage…………………………27
Figure No.4.20. Prompt services to passengers……………………………………………...28
Figure No.4.21. Staff always willing to help passengers…………………………………….28
Figure No.4.22. Passengers are informed about the time of service…………………………29
Figure No.4.23.Prompt response to passengers’ requests or complaints…………………….29
Figure No.4.24. Employee behavior and attitude instil confidence………………………...30
Figure No.4.25.Safer airline………………………………………………………………….30
Figure No.4.26. Staff courtesy……………………………………………………………….31
Figure No.4.27.Employees are knowledgeable……………………………………………....31
Figure No.4.28.Individual attention to passengers…………………………………………...32
Figure No.4.29.Understands the specific needs of passengers……………………………….32
Figure No.4.30.Convenient flight schedules……………………………………………........33
Figure No.4.31.Keeps passengers’ best interest at heart………………………………..33

CHAPTER 1

INTRODUCTION
The world has turned into a global village, it has become easier for people, living in extreme
corners of the world, to connect to their loved ones as well as increase their business network,
without much of a hassle. Thanks to the booming civil aviation industry-it has helped people
travel to the nook and corners of the world, within just few hours. As a part of this global
village, India is also witnessing a steep increase in the number of passengers, travelling to and
from the country, via air. The prominent international airlines have been carrying on the
operation in India mainly because of the fact that they attract people in India, largely the
business and leisure travellers. The increase in the air passengers’ traffic in India has resulted
in an explosion in the number of international airlines flying to the country. Some of the
prominent names in the civil aviation industry, including Lufthansa, Fly Emirates, British
airways, etc. have increased their clientele in India, thereby making the presence felt in the
Asian country. Moreover, they provide world-class amenities on board, which automatically
attract the passengers to use their services time and again. Indian aviation industry is one of
the fastest growing sectors in the world. Till 1991,the only public airlines in India has

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enjoyed monopoly in it operations and businesses and therefore could dictate its own terms to
it passengers who had no other choice but to accept whatever had been available irrespective
of quality of service, pricing, hospitality and comfort. The scenario changed following
globalization and airspace having open to competitions. Subsequent events moved very fast
as more and more new players entered with lot of advantages of being new operators as
compared to the airlines which had been in operations since independence and therefore
accumulated lot of fat which needed to be immediately dispensed with two faced the
emergent competition that forced as threats to its existence and substance. On the other hand
some of the private players are very much concerned about their passengers as well as some
of them are implementing low price strategy to attract the passengers. Now as passengers are
playing the key role in aviation industry, on the airlines are trained to capture the lion share of
the market. Though most of the airlines are introducing various lucrative strategies to retain
their own passengers and attract more new passengers towards them, but still brand switching
is increasing day by day. So in this cut throat competitive situation, the success of airlines are
very much dependent on the passengers service provided at all levels-be before, after and
during the journey to make the passengers satisfied. Nowadays, passengers become very
choosy about where they spend their hard-earned money. If they decided to take a trip, they
want it to be great! So the airlines needed to get with the program and look at the experience
from the passengers’ perspective. Deregulation of commercial airlines transportation in the
India has contributed to a striking over haul in an industry that is crucially important to the
Indian economy. Economist predicated that unregulated competition among airlines would
result in lower costs and reduced fares for consumers. It was also hoped that consumers
would be benefitted. As complicating airlines offered improved levels of service to attract
demand while the skies have been somewhat bumpy for carriers, particularly those unable to
successfully cut costs-the most efficient airlines have been able to thrive in the two decades
since deregulation. One concern that occupied deregulation was that scale economics in
hornet in air transport might hold down entry and leave the number of airlines operating in a
competitive system relatively small. If particular markets were concentrated as a result,
consumers would be vulnerable to higher prices.
1.1 Overview of the industry:
Indian aviation industry is among the top 10 aviation industries of the world. It has shown
high growth trajectory. According to the recent report by KPMG, Currently Indian civil
aviation industry has size of 16 Billion US dollars. It is contributing to the 0.5 % of the GDP.
Nowadays daily 150 million passengers are transported by air. It is forecasted that by 2020
this number will raise to traffic of 450 million passengers daily. Total aircraft movements

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and passenger traffic has grown with CAGR of 3.3 and 5.5 percent respectively during FY 14
to FY 16. It is estimated by Airport Authority of India that aircraft and passenger movements
at the entire airport are expected to rise at the rate of 4.2 and 5.3 percent respectively.
There are few factors such as entry of Low costs carriers (LLC), modern airports, vision of
the new government regarding tourism and transportation, foreign direct investments, cutting
edge technology, and vision of regional connectivity are driving the industry towards
transformation.
In 11th five year plan (2007-12), four new airports are built in “Public Private Partnership
(PPP)” mode. At present there are around 450 airports still there are no airports in tier 2 and
tier 3 cities. Airport Authority of India manages 125 airports of which 11 airports are
international airports, 8 custom airports, 81 domestic airports and 25 civil Enclaves at defense
airfields. Tier 2 and 3 cities contribute only 30 percent of the total air traffic. Government of
India is planning to construct more 15 airports under the Greenfield Airport Policy by
identifying low cost viable model for construction of small airports. These airports are
expected to improve the connectivity among these T2 and T3 cities. Along with this AAI is
also planning to invest 150 million in development of non-metro airport in 12th five year plan.
According to report of DGCA, Indian Domestic market has shown growth. Passengers
carried by domestic airlines during Jan-Mar 2016 were 230.03 lakhs as against 185.46 lakhs
during the corresponding period of previous year thereby registering a growth of 24.03%.

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 Figure No.1.1.Performance of domestic airlines for the year 2016 Source: (DGCA
Website, 2016)

1.2 Challenges faced by the industry:

During 2013-14 industry has gone through tough time. The industry was facing major
challenges such as

a. Rising operational costs

b. Higher air fares

These are the major challenges arises because of the following factors:

i. Challenges with policies ii.

Procedures iii. Taxation

Many factors are responsible for the high operational costs in India.

a. Higher cost of fuel in India but it reduces from 50000 Rupees/KL in 2015 to 42784
rupees/KL on Apr 30, 2016.
b. High taxation
i. Excise duty
ii. Customs duty
iii. Sales tax
c. High airport fare

These factors are leading to high operational costs. It is observed that in India 35 to 45
percent operational cost is of fuel, whereas 20 percent is the global average. Major oil
providing companies in India are Indian oil Corporation Ltd and Bharat Petroleum Ltd. These
companies charge around 16 to 30 percent sales tax on fuel. This results into high price.
Along with this there are different taxes imposed by the government.

Aviation Turbine Fuel Price per Kilolitre at Delhi Airport for Domestic Services
FY 2015

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 Figure No.1.2.Fuel Price

Source: (CAPA Website, 2016)

Recently new airports are built in PPP mode. These airports are highly modern. This
infrastructure change is also an area of high concern for aviation industries. Investment cost
for these airports is very high. To recover this amount airport holding company charges very
high this directly results into high costs. For example recently Airports Economic Regulatory
Authority of India (AERA) approved to raise tax of Delhi and Mumbai airport to 346 percent
and 154 percent respectively in 2012. Chennai and Kolkata also proposed to increase in
airport tax to 118 percent and 242 percent respectively. This increased tax will eventually
lead to higher price paid by the aviation companies for landing and parking their flights. This
increases the cost of operation.
Along with this getting aviation license in India is main hurdle for small companies to enter
into the market. The procedure of getting license is bit slow and hectic. This is major hurdle
to growth of the industry. This will responsible in coming years also if not addressed
properly.
In 2014 government has taken some initiative such as they have allowed direct import of the
fuel, which will help to save sales tax to be paid to the oil companies in India. Spice Jet is the
first successful company to import oil for its own in September 2013. Also government has
promised to reduce the custom duty charges.
As the business environment is changing very fast, customer expectations and demands are
also changing. It results to a situation where many of the service providing companies have

7
failed to understand the true needs and wants of their passengers and still hold the traditional
and obsolete views of what airline services are all about. Service provider especially the
airline companies thinks of passengers needs from their own perspectives and tries for cost
reduction for efficient operations and this leads to compromise in quality of the services
provided to their customers.
The delivery of high quality service becomes a marketing requirement due to competitive
pressure among air carriers. Moreover airline passengers experience many service encounters
with front line employees as well as with in-flight attendants. Passengers have some
expectations and evaluate service quality by comparing their experiences with their
expectations over a number of quality attributes. Hence there is need to examine the effect of
service quality on customer satisfaction and loyalty because customer satisfaction holds a
significant importance in any business. To stay ahead in the business, superior service quality
is an important determinant and acts as an order winner. Service quality is more important
determinant than price in differentiating a service organization from its competitors and in
encouraging customer loyalty (Kandampully and Suhartanto, 2000; Chow and Luk, 2005).
Researchers have shown that superior service quality is an essential strategy for winning and
retaining customer’s thus increasing market share and profitability (Zeithamal, 2000; Chow
and Luk, 2005).
Service quality is considered to be the most important critical success factor (CSF) of any
service industry (Berry et al., 1994; Kannan, 2010; Singh and Sushil, 2013). As per American
Management Association survey of North American, western European and Japanese
managers, it was found that 78 percent of the surveyed managers believe that service
improvements are the key to competitive success (Min and Min, 1996). It is difficult to define
and measure service quality due to its intangible and elusive nature (Min and Min, 1996;
Kannan, 2010; Min, 2010; Chow and Luk, 2005; Parasuraman et al., 1985). However some
authors have attempted to define it. Parasuraman et al. (1988) defined service quality as a
global judgment or attitude relating to what the customer actually receives from services and
the manner in which the services is delivered. Kannan (2010) defined service quality as the
excellence to which a firm delivers services to its customers in comparison to its competitors.
Due to intense competition, airline needs to improve their service quality in order to gain
competitive advantage and remain competitive. Thus, it is essential for airlines to understand
their strength and weakness when developing strategies for their service. Benchmarking was
initiated in 1979 by Xerox to examine its manufacturing costs and defects (Min and Min,
1996). However, the application of benchmarking should not be limited to product quality
measurement and improvement in the manufacturing sector only. Benchmarking is applicable

8
to wide array of industries including the service industry like airlines and has two distinct
approaches: Competitive benchmarking and process benchmarking (Min and Min, 1996). As
per the American Productivity and Quality center (1993), competitive benchmarking
measures organizational performance against that of competitive organizations and,
consequently tends to concentrate on the relative performance of competitors. Airlines in
India need to be committed to service quality excellence because service quality excellence
leads to customer satisfaction which eventually leads to improved load factor and increased
market share, thus increasing revenues, profitability and shareholder’s value (Singh and
Sushil, 2013).
Service quality cannot be objectively measured as can technical quality in manufacturing
because the concept of service quality is inherently intangible in nature (Chow and Luk,
2005; Patterson and Johnson, 1993). It is elusive and abstract construct because of three
features unique to services: intangibility, inseparability and heterogeneity (Patterson and
Johnson, 1993). Service quality can’t be improved without measuring it (Min and Min 1996).
If the service quality is to be improved it must be reliably assessed and measured. However,
measuring improvements in service quality is even more challenging (Parasuraman et al.,
1985). One of the most important efforts to measure service quality is the SERVQUAL
instrument given by Parasuraman et al. (1988). They developed a service quality model based
on gap analysis. Service quality can be measured by identifying the gaps between customer’s
expectations of the service to be rendered and their perceptions of the actual performance of
the service (Parasuraman et al., 1988). SERVQUAL is based on the five dimensions of
service quality namely: tangibility, reliability, responsiveness, assurance and empathy
(Parasuraman et al., 1988). Various service quality models for measuring service quality are
available in literature, some of them are: Technical and functional quality model (Gronroos,
1984), SERVQUAL Gap Model (Parasuraman et al., 1985, 1988), SERVPERF model
(Cronin and Taylor, 1992), Attribute model (Haywood-Farmer, 1988), Synthesised model of
service quality (Brogowicz et al., 1990), Attribute and overall affect model (Dabholkar,
1996), Antecedents and mediator model (Dabholkar et al., 2000) and Internal service quality
model (Frost and Kumar, 2000). All these model helps in measuring the internal service
quality without considering the strategies of its competitors.
Many studies have been conducted in the area of airline service quality and customer
satisfaction also. These include research work on low cost airline carriers in Thailand (Saha
and Theingi, 2009), study on airline industry for Australian international passengers (Park et
al., 2006), study on airline industry in Korea (Park et al., 2004), study on airline industry in
Taiwan (Chen, 2008), study on airline service quality (Gilbert and Wong, 2003). Saha and

9
Theingi (2009) examined the relationship between the constructs of airline service quality,
satisfaction and behavioral intentions in passengers of three low cost carriers offering airline
services in Thailand. Their study finds that the order of importance of the service quality
dimensions is flight schedules, flight attendants, tangibles and ground staff. These service
quality dimensions were found to be very important in explaining passengers’ future
behavioural intentions. Previous studies by Park et al. (2006); Park et al. (2004) and Chen
(2008) examined the relationship between airline service quality and other marketing
variables like perceived image and passenger satisfaction. They found that the airline service
quality had a significant impact on passenger’s future behavioral intentions. Gilbert and
Wong (2003) developed a 26 attribute model incorporating responsiveness, reliability,
assurance, facilities, flight patterns, customization and employees dimensions to measure and
compare the differences in passenger’s expectations of the desired airline’s service quality.
Their finding shows that assurance was rated as the most important service dimension in
airlines. Chan and Yeh (2002) identified 15 attributes to measure the service quality of
airlines in the context of Taiwan and found that the most important factor was flight safety.
Chen and Chang (2005) evaluated airline service quality from a process perspective by
examining the gap between passengers’ service expectation and the actual services received.
Importance- performance analysis was also used to construct service attribute evaluation
maps to identify areas of improvement. Their finding shows that assurance and
responsiveness dimensions were rated as the most important service dimension in airlines.
Liou and Tzeng (2007) developed a non-additive model for evaluating and improving the
service quality of airlines and compare its result with the conventional additive method. They
found out that safety and reliability emerged as the critical factors of service quality in
airlines.
1.3 Main players in the industry
Indian aviation industry is dominated by the Low Cost Carriers (LCC). These players can be
classified into three major categories.

1. Public Player
i. Air India
1. Private Players
i. Jet Airways ii.
IndiGo
iii. Spice Jet iv.
Go Air
Also in 2014 the industry has saw entry of five new players. These new players are:

10
 i) JET Etihad deal has been finalized (FDI) ii)
Tata-Singapore airlines Ltd-VISTARA iii)
Air Costa (Part of LEPL Group) iv) Tata-
Air Asia Ltd v) Air Pegasus Ltd
These are the five new players in the industry. They have different strategies to tackle the
market.
1.3.(i) Market share of the players
Players in Indian Aviation Industry are fighting to gain maximum market share. Domestic
market is dominated by LLCs such as IndiGo and Jet Airways. IndiGo is the only domestic
company which has shown all time profits in its balance sheet. At the time of crisis Indigo
sustained itself while gaining profits. It is India’s most preferred LLC.
According to analysis presented by Indian Aviation Forum, Indigo retained at top position
followed by Jet Airways. This analysis was at the end February 2016.

Fig
ure No.1.3.Market Share of Indian carriers in domestic aviation market Feb.2016 Source:
(Indian Aviation Forum, 2016)
Passenger load factor, or load factor, measures the capacity utilization of public transport
services. Considering passenger load factor analysis, Spicejet, Indigo and Go Air has shown
better results. From the data the passenger load factor in the month of March 2016 has
slightly decreased compared to previous month primarily due to the end of tourist season.
All the companies are trying to increase load factor to 100 percent. This will directly results
into their profit gain.

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 Figure No.1.4.Passenger Load Factor Source: (DGCA Website, 2016)

Compliance of Route Dispersal Guidelines

During the month of Mar 2016, all the scheduled domestic airlines complied with the
mandatory capacity deployment requirements contained in the Route Dispersal Guidelines.
Airline-wise details are given in the following Table:

Figure No.1.5.RDG (Route Dispersal Guidelines) Source: (DGCA Website, 2016)

1.4 Objectives of the study
Through this project we try to analyse the service quality of various airlines operating in India
and how they are distinguishing themselves in eyes of customers. The primary role of each
airline is same, they are carrying the passengers from one place to another but their image is
different in the eyes of consumer. One of the important reason for this is the service quality of
these airlines. The flying services of the airlines are divided into three stages (Preflight, in-
flight and Post-flight services) and I am trying to find out which airline has best service
12
quality to satisfy their customer and which component of service is satisfying the passenger
of the that airline. The objective, long term goal and management of the company is very
much responsible to provide the better service quality to passengers. Through passengers of
the airlines we will get proper information about the services which are providing at pre-
flight, in-flight, post-flight and to find out the areas where the company needs to improve the
service quality of the airlines.

 To find out whether the passengers are satisfied with airline services or not.

 To find the passenger perceptions of service quality of airlines.

 To assess the level of satisfaction of passengers of various facilities provided by

airlines.

 To analyse the Gap Model of service quality for various airlines.

 To provide an effective marketing scheme to passengers.

 To provide a good guide to the airline management as it brings out the strengths of
the company and the areas where the company needs to improve the service quality.

CHAPTER 2

LITERATURE REVIEW
Joyce A. Hunter (2011) the aim was to discover the results when service providers or
frontline staff actually did “smile” when handling or resolving explosive customer service
issues. They conclude that “Smiling customer service” builds customer loyalty, fosters
13
profits, and helps reduce air rage. The results from this study could be used to construct
training programs that support developing airline personnel in particular areas of customer
service, including frontline staff, flight attendants, and security personnel. More research
could be investigated to identify innovative ways to provide more exciting and interesting
experiences for the more seasoned and frequent travellers who may have grown cynical about
air travel but continue to rely on this mode of transportation.
Kittichai Thanasupsin, Suraphan Chaichana And Sudtida Pliankarom (2010), he
observed on travellers’ perceptions show that fare and safety concerns are most satisfied by
low-cost carriers and full-service airline travellers, respectively Based on the logit model
developed, significant factors influencing mode selections are group size, fare deviation to
income ratio, waiting time deviation multiplied by income, punctuality, and safety. Airlines
may consider offering fare promotions for selected flights, times, and occupations (such as
student). They may also offer a reduced fare for group travelling. On the other hand, If LCCs
are keen on increasing the number of passengers; punctuality should be the issue of concern.
Although punctuality improvement of LCCs may be tedious to achieve due to its intensive
use of air fleet, its achievement would significantly increase number of passengers.
Sunil Babbar and Xenophon Koufteros (2008) identified the human- or people-related
factors; individual attention, helpfulness, courtesy, and promptness that shape the element of
“personal touch” in the service provided by contact employees and examine their role as
determinants of customer satisfaction with the airline. They conclude that the individual
attention, helpfulness, courtesy, and promptness embedded in the element of personal touch
shape the experience of airline customers and determine their level of satisfaction with the
airline. While there are certainly other determinants of customer satisfaction in the airline
industry, this study identifies an important set of factors constituting the dimension of
personal touch and determining customer satisfaction. Contributes to, and advances the
literature on, customer contact employees and their role in shaping customer experience and
satisfaction. Specifically, it provides important insights into the element of personal touch
and the nature of the relationship between individual attention, helpfulness, courtesy, and
promptness and the satisfaction of customers of passenger airlines.
Steyn, et al (2011) article has studied the satisfaction with airlines’ service recovery efforts
was used to determine the effect of a service failure on their relationship with airlines as well
as their willingness to recommend airlines to others following a service failure.
Customer perceptions and expectations of service quality are increasingly used to forecast
company profitability and prospects for improved market share. Although many other
``quality focused'' initiatives have often failed to enhance company performance,

14
customerperceived service improvements have been shown empirically to improve
profitability (Buzzell and Gale, 1987). The shift from an industrial to a customer-value
paradigm (Albrecht, 1992) places service at the center of company efforts to improve
profitability. As virtually all organizations compete to some degree on a basis of service
(Zeithaml et al., 1990), and as the Indian economy has become a predominantly ``service
economy'' (Albrecht and Zemke, 1985), service quality then becomes significantly important
to achieve a genuine and sustainable competitive advantage. Service-based companies are
compelled by their nature to provide excellent service in order to prosper in increasingly
competitive domestic and global marketplaces, i.e. there is no ``tangible'' product to equate
otherwise to quality. Customer-driven strategies require satisfying customer preferences; it is
first necessary to identify the customer (Sonnenberg, 1991), which is also found to be
prerequisite to successful global competition (Butterworth, 1990) and service competition
generally (Whiteley, 1991; Parasuraman et al., 1988). Many companies intending to employ a
customer service-based strategy find the process of identifying and measuring customer
preferences very difficult, often owing to mistaken business perceptions of customer wants
(Drucker, 1964; Miller, 1992; Andrews et al., 1987; Fornell, 1992). Nonetheless, providing
superior service quality requires creating a distinct relationship between what the customer
wants and that which the company provides, or a relationship between customer requirements
and essential business elements (Evelyn and DeCarlo, 1992; Schneider and Bowen, 1995).
Service quality literature recognizes expectations as an instrumental influence in consumer
evaluations of service quality (GroÈnroos, 1982; Parasuraman et al., 1985; Brown and
Swartz, 1989). Expectations are understood as the desires or wants of customers, i.e. what the
service provider should offer (Parasuraman et al., 1988), and studying companies understood
to be leaders in various industries (and not limited to direct competitors), i.e. ``benchmarking''
or ``studying the winners'', has become a vital source in identifying gaps that exist between
customer expectations and company performance (Park and Smith, 1990; Drege, 1991;
Whiteley, 1991; Albrecht, 1992 ) as perceived by its customers (Miller, 1992). Meeting rising
customer expectations has proved to be one of the most difficult challenges to service
businesses (Sonnenberg, 1991; Drege, 1991). Quality is found to be measured most
accurately through the eyes of the customer (Miller, 1992), and it is not found to improve
unless it is regularly measured (Reichheld and Sasser, 1990). Customers are therefore never
mistaken when they say that (service) quality is bad, because if they perceive it so, it
necessarily is so (Schneider and Bowen, 1995). Companies that actively search for and
incorporate the best service methods and processes to improve the performance, regardless of

15
sources, and ultimately the perceptions of their customers, are found to excel in relation to
their competitors (Sellers,
1991). In practice, companies that exceed customer expectations without impairing profit
margins have frequently been found to develop a solid foundation of customer loyalty, based
on segmented service (Drucker, 1964; Porter, 1980, 1985; Farber and Wycoff, 1991).
Recognizing the importance of measuring service quality perceptions and expectations to
improve performance, and the importance of international markets to the success of
companies in numerous service industries, it is significant that no studies have been
performed to investigate the differences that might exist based on nationality and culture
(Winsted, 1997). The general importance of quality to the airline industry is recognized in the
annual Airline Quality Report (Bowen and Headley, 1995) for domestic airlines, which
incorporates an internally-focused model based on financial data, fares, passenger load
factors, service related issues, etc. As service quality strategies fundamentally focus
externally on the customer and satisfaction (a market orientation), rather than internally on
company profits and costs (a production orientation), a distinctive and unequivocal
management approach as well as organization commitment is required (Peters and Waterman,
1982; Whiteley, 1991; Carlzon, 1989). In order to formulate successful service strategies
internationally, this report proposes that there is a need to examine consumer expectations
and perceptions.

2.1 SERVQUAL Model

The SERVQUAL service quality model was developed by a group of American authors,
'Parasu' Parasuraman, Valarie Zeithaml and Len Berry, in 1988. It highlights the main
components of high quality service. The SERVQUAL authors originally identified ten
elements of service quality, but in later work, these were collapsed into five factors reliability,
assurance, tangibles, empathy and responsiveness - that create the acronym RATER.
The gap model (also known as the "5 gaps model") of service quality is an important
customer-satisfaction framework. In "A conceptual model of service quality and its
implications for future research" (The Journal of Marketing, 1985), A. Parasuraman, VA
Zeitham and LL Berry identify five major gaps that face organizations seeking to meet
customer's expectations of the customer experience.
The five gaps that organizations should measure, manage and minimize:
• Gap 1 is the distance between what customers expect and what managers think they
expect – Clearly survey research is a key way to narrow this gap.

16
• Gap 2 is between management perception and the actual specification of the customer
experience - Managers need to make sure the organization is defining the level of
service they believe is needed.
• Gap 3 is from the experience specification to the delivery of the experience Managers
need to audit the customer experience that their organization currently delivers in
order to make sure it lives up to the specifications.
• Gap 4 is the gap between the delivery of the customer experience and what is
communicated to customers - All too often organizations exaggerate what will be
provided to customers, or discuss the best case rather than the likely case, raising
customer expectations and harming customer perceptions.

Figure No.2.1.Gap Model of Service Quality Source: (Valarie A. Zeithaml, A. Parasuraman,

Leonard L. Berry, 1990)
 Finally, Gap 5 is the gap between a customer's perception of the experience and the
customer's expectation of the service - Customers' expectations have been shaped by
word of mouth, their personal needs and their own past experiences.

17
 Routine transactional surveys after delivering the customer experience are important
for an organization to measure customer perceptions of service.
Determining optimum levels of customer service is understood to depend on accurately
assessing customer expectations, so that companies are able to meet highly-valued customer
expectations and avoid employing those services that customers do not value; regular
customer feedback has been determined essential to such successful customer satisfaction
strategies. Successful customer service focused companies measure their service to ascertain
how well they are satisfying their customers and superior companies have been shown to be
consistently excellent listeners to their customers.

CHAPTER 3

METHODOLOGY
18
3.1 Significance of the study
This study may motivate low cost airline service providers and future researchers to improve
their knowledge on the service quality developments persistently. It may lead the airline
industries to renew their service quality policies and provide good quality services to
passengers to enhance their business. This may further help the airlines to understand the
passenger expectations for the service.
3.2 Scope of the study

The research scope was limited to a certain demographical group and only Indigo flights were
addressed in the primary survey. The project is based on primary data analysis through the
use of tools like MS Excel, Pivot Table and Power Point.

• To find out satisfaction level of passengers.

• To find out airlines strategy and strength.
• To find out the areas of improvement to improve customers satisfaction level.

3.3 Research Design and Data collection

Research can be defined as a scientific and system search for pertinent information on
specific topic. Research makes use of analytical and statistical techniques along with different
methods to collect information in an organized way. To accomplish the objectives of the
study, the data required has been collected using both primary and secondary source. Primary
data have been collected through a structured questionnaire. The data were collected using
questionnaire. It is distributed and collected through mail survey. Theoretical back ground of
the present study was gathered from various sources which include Books, Journals, Website
and other related research work. Secondary research takes into account many different
sources for collection of information including government data, newspapers, magazines,
internet etc. One of the benefits of doing secondary research is that it is mostly free and takes
a lot less time. This study covers a sample of 56 respondents. Simple Random Sampling
techniques were used and a structured questionnaire was used for data collection. The
questionnaire was divided into five sections, the first section reveals tangibility, second
reveals reliability, third reveals responsiveness, fourth and fifth section reveals assurance &
empathy respectively. These sections are designed to evaluate their overall experiences they
received from the airline services. The questions were phrased in the form of statements
scored on a 5-point Likert type scale, ranking from 1 “highly dissatisfied” to 5 “highly
satisfied”. A likert scale commonly involved in research that employs questionnaires. It is the
most widely used approach to scaling responses in survey research. When responding to a

19
Likert questionnaire item, respondents specify their level of agreement or disagreement on a
symmetric agree-disagree scale for a series of statements. Thus, the range captures the
intensity of their feelings for a given item . A Likert item is simply a statement that the
respondent is asked to evaluate by giving it a quantitative value on any kind of subjective or
objective dimension, with level of agreement/disagreement being the dimension most
commonly used. Well-designed Likert items exhibit "symmetry" in that they contain equal
numbers of positive and negative positions whose respective distances apart are bilaterally
symmetric about the "neutral"/zero value

Exploratory factor analysis issued for measuring airline service quality to determine the
dimension of airline service quality. Factor analysis is a general name denoting a class of
procedures primarily used for data reduction and summarization. Average score analysis is
conducted to evaluate the airline service quality. Service quality satisfaction has been
analyzed on the basis of score assigned in the questionnaire, 5 marks is assigned to highly
satisfied, 4 mark for satisfied, 3 mark for moderate, 2 mark for dissatisfied and 1 mark for
highly dissatisfied.

3.4 Analytical Tools

Analytical tools play an important role in any research. Charts are used for the analysis of
quantitative data. Microsoft Excel is very important and effective tool for this work.
Calculations, functions and formulae in excel are useful for this work. Secondary data was
also collected from various sources and used for the comparison of service quality of Indigo
with other airlines using charts and graphs.

CHAPTER 4

DATA ANALYSIS
20
Comparison of the major players on different factors
4.1 Price of the ticket.
Comparison of the players on price factor is difficult. Price varies according to time of the
booking as well as the route to be chosen, time of the day etc. Every carrier has different
price strategy. For the sake of convenience I have chosen following parameters to compare:
i. Route: Delhi to Mumbai ii.
Time duration: 7 pm to 12 am
iii. Time of booking:
a. Immediate booking
b. 3 months prior booking

Hence Spice Jet is lowest among all. Air India is providing maximum frequency. And
Indigo is better among the all for better service with low price.

4.1.(b).Prior booking of 3 months- 6 th

May 2015

Name of the Price of Duration of Services Frequency during

carrier ticket Journey the day
Indigo 3049 2 hours 10 min 1) Paid Meal 17
2) Special assistance
Spice Jet 3722 2 hours Paid meal only 4
Vistara 5481 2 hours 20 min Free Meal Included 7
Jet Airways 5481 2 hours 10 min Free Meal 29
Go Air 4798 2 hours 20 min Paid Meal only 8
Air India 3263 2 hours 05 min Free meal 38
Figure No.4.2.Prior Booking Price Comparison
Source: (www.makemytrip.com, 2016)
Hence in prior booking Indigo is providing lowest fare with better services. Followed by Air
India and Spice Jet. Air India is giving maximum frequency which provides better ease of
booking. Source: www.makemytrip.com accessed on 12th Feb. 2015

21
 4.2 Comparison on other factors
A large survey all over India by “Trip Advisor” following is the findings on scale of
100 percent:

Factors\Name Indigo Jet Air Go Air Jet SpiceJet

Airways India Connect
44.4 13.2 6.8 2 1.1 6.3
Value for money

Hence most preferred airline is Indigo followed by Jet airways and Spice Jet.

Figure No.4.4.Passengers Airline Preference

Source: (Trip Advisor, 2016)

Also, most of the responded told they need improvement in services such as Meal provided
during the journey followed by improvement in leg room.

22
 Figure No.4.5.Service Improvement Feedback
Source: (Trip Advisor, 2016)

For new players in the Industry, most of the respondents prefer to go by TATA SIA i.e.
VISTARA followed by Air Asia.
Following things have been found from the survey carried out:

i. Most of the people prefer Indigo as their favourite airline. Followed by Jet
Airways. Spice-Jet is the third choice of the consumers ii.
Most of them prefer Indigo because of the low price iii.
Most people are looking for the low price carrier. iv.
People are conscious about service quality and promotions.
v. On time flight is most preferred for Indigo followed by the ease of booking. vi. Less
option of entertainment facility and less food variety are the most dissatisfied thing on the
flight and employee behaviour is most satisfied thing. People want better food along with
better service.
vii. Most of the young consumers look for better cabin crew and look for the leg
room.
On-Time Performance (Scheduled Domestic Airlines)
On-Time Performance (OTP) of scheduled domestic airlines has been computed for four
metro airports viz. Bangalore, Delhi, Hyderabad and Mumbai. Airline-wise OTP at four
metro airports for the month of March 2016 is as follows:

Figure No.4.6.Performance of domestic airlines in Metropolitan cities for the year 2016
Source: (DGCA Website, 2016)
Passenger Complaints during the month
During March 2016, a total of 737 passenger related complaints had been received by the
scheduled domestic airlines. The number of complaints per 10,000 passengers carried for the
month of March 2016 has been 0.9. The airline-wise details are as follows:

23
 Figure No.4.7.Passenger Complaints in March 2016 Source: (DGCA Website,
2016)

Various reasons of passenger complaints are indicated below:

Figure No.4.8.Reasons for Complaints Source: (DGCA Website, 2016)

The reason for complaint as percentage compared to the previous month is as follows:

24
 Figure No.4.9.Complaint as percentage compared to the previous month Source:
(DGCA Website, 2016)
From the data it is observed poor customer service leads to maximum complaint by the
passengers followed by flight problem and baggage problem. Airlines tries to control the
flight problem and baggage problem but the customer service gets worse month by month
and this leads to dissatisfaction among customers. The fare problem was constant in the
month of Jan and Feb but it increases in the month of March by approx 55% as compared to
previous months. The refund problem is decreasing month by month. The complaints
regarding refund on flight cancellation are reducing as airlines are successfully refunding the
amount to customers within stipulated time. Staff behaviour is the concern, as it becomes one
of the reasons for complaint which is increasing month over month. 4.3 Indigo Service
Quality Data Analysis On Various Parameters
25
 45
40
35
30
25
20
15
10
5
0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.10.Well dressed and visually appealing staff
From the data it is analysed that out of 56 passengers, 14 of them are highly satisfied with the
statement that Indigo has well dressed and visually appealing staff. 40 of passengers are
satisfied, 1 is dissatisfied and 1 is highly dissatisfied with the above mentioned fact. The
mean of the data is 4.16 (out of 5), which shows that most of the customers are satisfied with
the fact that Indigo has well dressed and visually appealing staff.
35

30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.11. Hassle free check-in & boarding
From the data it is analysed that out of 56 passengers, 19 of them are highly satisfied with the
statement that Indigo has hassle free check-in and boarding. 31 of passengers are satisfied and
1 is dissatisfied with the above mentioned fact. The mean of the data is 4.21 (out of 5), which
shows that most of the customers are satisfied with the Indigo’s hassle free check-in &
boarding.

26
 45
40
35
30
25
20
15
10
5
0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.12. Efficient Baggage Handling Mechanism
From the data it is analysed that out of 56 passengers, 9 of them are highly satisfied with the
statement that Indigo has efficient baggage handling mechanism. 40 of passengers are
satisfied and 1 is dissatisfied with the above mentioned statement. The mean of the data is
4.01 (out of 5), which shows that most of the customers are satisfied with the Indigo’s
baggage handling mechanism.
35

30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.13. Modern Aircrafts & Clean Facilities
From the data it is analysed that out of 56 passengers, 5 of them are highly satisfied with the
statement that Indigo has modern aircrafts. 30 of passengers are satisfied, 18 are neutral and 3
are dissatisfied with the above mentioned statement. The mean of the data is 3.66 (out of 5),
which shows that customers are satisfied that Indigo has modern aircrafts and clean facilities.

27
 35

30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.14. Variety and choices of in-flight entertainment facilities
From the data it is analysed that out of 56 passengers, 32 are dissatisfied and 21 are highly
dissatisfied with the statement that Indigo has variety and choices of entertainment facilities
during in-flight. The mean of the data is 1.71 (out of 5), which shows that customers are
highly dissatisfied with Indigo’s in-flight entertainment facilities.
30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.15. Variety and choices of in-flight meals
From the data it is analysed that out of 56 passengers, 2 of them are highly satisfied with the
Indigo’s variety in meal offering. 2 of passengers are satisfied, 20 are dissatisfied and 28 are
highly dissatisfied with the above mentioned statement. The mean of the data is 1.75 (out of

28
5), which shows that customers are very dissatisfied with the Indigo’s less variety in meal
offering.

29
 35

30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.16.Flights are on time
From the data it is analysed that out of 56 passengers, 21 of them are highly satisfied with the
statement that Indigo’s flight are on time. 32 of passengers are satisfied with the above
mentioned statement. The mean of the data is 4.32 (out of 5), which shows that mostly all
customers are satisfied with the Indigo’s timely arrival and departure.
35

30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

30
 35

30

25

20
Figure No.4.17. Right services at the first time
From the data it is analysed that out of 56 passengers, 15 of them are highly satisfied with the
statement that Indigo provides right services at the first time. 31 of passengers are satisfied, 9
are neutral and 1 is dissatisfied with the above mentioned statement. The mean of the data is
4.07 (out of 5), which shows that customers are satisfied with Indigo’s right service at the
first time.

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.18. Efficient check-in process
From the data it is analysed that out of 56 passengers, 19 of them are highly satisfied with the
Indigo’s efficient check-in process. 31 of passengers are satisfied and 6 are neutral with the
check-in process. The mean of the data is 4.23 (out of 5), which shows that customers are
highly satisfied with Indigo’s check-in process.

31
 35

30

25

20

15

10

0
45
40
35
30
25
20
15
10
5
0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.19. Remedial process for delayed or missing baggage
From the data it is analysed that out of 56 passengers, 8 are satisfied and 40 are undecided
with the Indigo’s remedial process for delayed or missing baggage. The mean of the data is
3.14 (out of 5), which shows that customers are undecided with missing baggage remedial
process. One of the main reasons for this can be that most of the customers are not facing
such situation.
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.20. Prompt services to passengers
From the data it is analysed that out of 56 passengers, 17 of them are highly satisfied with the
Indigo’s prompt service towards them. 32 of passengers are satisfied and 5 are dissatisfied
with the above mentioned statement. The mean of the data is 4.09 (out of 5), which shows
that most of the customers are satisfied with the Indigo’s prompt service towards passengers.

32
 35

30

25

20
35

30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.21. Staff always willing to help passengers
From the data it is analysed that out of 56 passengers, 23 of them are highly satisfied with the
Indigo’s staff helping attitude. 30 of passengers are satisfied and 1 is dissatisfied with the
staff helping attitude. The mean of the data is 4.33 (out of 5), which shows that most of the
customers feel that Indigo’s staff is always ready to help passengers and they are satisfied
with helping attitude towards them.

33
 40

35

30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.22. Passengers are informed about the time of service
From the data it is analysed that out of 56 passengers, 15 are highly satisfied with the
information provided by Indigo to them about the flight departure. 35 of passengers are
satisfied and 1 is dissatisfied with the above mentioned statement. The mean of the data is
4.14 (out of 5), which shows that most of the customers are satisfied with the timely
information provided to them about the flight status by Indigo.
35

30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.23.Prompt response to passengers’ requests or complaints
From the data it is analysed that out of 56 passengers, 18 are highly satisfied with the
response provided by Indigo’s staff towards their request/complaint. 32 of passengers are
satisfied and 1 is dissatisfied with the response. The mean of the data is 4.2 (out of 5), which
shows that most of the customers are satisfied with the response they are getting towards their
requests/complaints from Indigo.

34
 40

35

30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.24. Employee behaviour and attitude instil confidence
From the data it is analysed that out of 56 passengers, 35 are highly satisfied with the Indigo’s
employee behaviour and attitude. 16 of passengers are satisfied and 5 are neutral with the
response. The mean of the data is 4.54 (out of 5), which shows that customers are highly
satisfied and they feel employee behaviour instils confidence in them.
30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.25.Safer airline
From the data it is analysed that out of 56 passengers, 18 are highly satisfied with the safety
measures taken by Indigo to ensure passengers safety. 27 of passengers are satisfied and 1 is
dissatisfied with the Indigo’s safety. The mean of the data is 4.11 (out of 5), which shows that
most of the customers are satisfied and they feel Indigo is a safer airline to travel.

35
 35

30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.26. Staff courtesy
From the data it is analysed that out of 56 passengers, 22 are highly satisfied with the
manners of the staff. 33 of passengers are satisfied and 1 is dissatisfied with staff behaviour
in which he/she is serving towards passenger. The mean of the data is 4.36 (out of 5), which
shows that customers are highly satisfied with the staff courtesy of Indigo.
40

35

30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.27.Employees are knowledgeable
From the data it is analysed that out of 56 passengers, 11 are highly satisfied that Indigo’s
employees are knowledgeable. 38 of passengers are satisfied that employees use their
experience and knowledge while solving their queries. The mean of the data is 4.07 (out of

36
5), which shows that most of the customers are satisfied with the statement that Indigo’s
employees are knowledgeable.

37
 45
40
35
30
25
20
15
10
5
0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.28.Individual attention to passengers
From the data it is analysed that out of 56 passengers, 9 are highly satisfied that Indigo pays
individual attention to passengers. 41 of passengers are satisfied and 2 of them are
dissatisfied and feel they never receive any such offer which can makes them to feel that
Indigo provides individual attention to passengers. The mean of the data is 4.02 (out of 5),
which shows that most of the customers are satisfied but the organization needs to be more
focus on this issue to retain the existing customer.
40
35
30
25
20
15
10
5
0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.29.Understands the specific needs of passengers
From the data it is analysed that out of 56 passengers, 8 are highly satisfied and feels Indigo
understands the specific needs of passengers. 36 of passengers are satisfied and 5 are
dissatisfied with the response. The mean of the data is 3.84 (out of 5), which shows that
customers are satisfied but there is a lot of opportunity for the organisation to work on this
parameter and try to understand specific needs of passengers and fulfil it.
38
 45
40
35
30
25
20
15
10
5
0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.30.Convenient flight schedules
From the data it is analysed that out of 56 passengers, 15 are highly satisfied and feels
Indigo’s flight schedules are convenient. 39 of passengers are satisfied and 1 is highly
dissatisfied with the flight schedule. The mean of the data is 4.2 (out of 5), which shows that
customers are satisfied. This is because Indigo is operating with sufficient number of flights
and this makes them to operate conveniently for passengers. Due to many flights in a day
passengers are having options to fly throughout the day and hence it is convenient for the
passengers as well.
30

25

20

15

10

0
Highly Satisfied Satisfied Undecided Dissatisfied Highly Dissatisfied

X-axis: Satisfaction/Dissatisfaction level Y-axis: No. of Passengers

Figure No.4.31.Keeps passengers’ best interest at heart
From the data it is analysed that out of 56 passengers, 9 are highly satisfied and feels Indigo
keeps passengers’ best interest at heart. 19 of passengers are satisfied, 27 are neutral and 1 is
dissatisfied with their responses. The mean of the data is 3.64 (out of 5), which shows that
customers are satisfied but the organisation needs to understand the personal interest of their
passengers and should serve by keeping their interest in mind. For example, if someone’s
39
 interest is in automobiles, then they should provide the magazines related to auto
sector. They should ask the passengers’ interest/hobbies while booking tickets and before
schedule departure they should work to fulfil those needs like by keeping the related books or
magazines on their respective seats.
Passenger satisfaction service arises when a company can provide passengers with benefits
that exceed passengers’ expectation and this is considered value-added. If customers are
satisfied with the product or service, they will buy more, and do so more often. Passenger
gratification is an essential goal for each airline providing passenger services. The on board
experience is still something special for the customer. The customer has a wide choice to
select the suitable airline product according to their requirements. Therefore, airlines are
continuously working on the in-flight and out flight service product development and
innovation to differentiate themselves from competitors. During the last few years a variety
of in-flight product innovations have entered into the market. This includes the aircraft seat
on long haul flights as an important product element which is continuously being improved
and renewed according to its life cycle and changing customer requirements. The current
development of business class seat roll-outs shows the significance of this product element
which influences the buying decision of the passenger especially on long haul flights. If the
passenger is not satisfied, due to the negative experience, the client will reconsider the buying
decision for further flights and will probably switch to another airline. This kind of situation
belongs to the daily business in the passenger airline industry.

CHAPTER 5

CONCLUSION

Services are intangible and heterogeneous by nature and airline services are no exception to
this. Services provided inside aircraft are highly perishable, variable and personalized. The
airline company management believes that, they are providing committed quality of service
to the customers, but from customers’ point of view, airliners lack in quality service.
40
Airliners’ lack in awareness about service quality and are not aware that giving better service
to the customer help in better company performance. With the entry of new players’ number

41
of passengers who travel by airways and the competition between different airlines has
considerably increased. The passengers always look for an airline which provides good and
quality service. This study entails that Indigo airline marketing managers have to develop
various policies that can provide guaranteed quality services to passengers. Airline service
dimensions were found to have a significant and positive influence on airline image and
passengers’ satisfaction levels. In this study, passengers are satisfied by the service provided
and most of the facilities delivered by the Indigo airline. The passengers are satisfied with the
services quality reliability, responsiveness, assurance & empathy but Indigo needs to improve
on tangibility aspect. While analyzing demographic profile of the passengers, educated and
high income passengers are using flights more frequently. Failure to provide quality services
to passengers may damage the formation of airline image and cause negative impact on
passengers’ behavioural intentions.

CHAPTER 6

RECOMMENDATIONS

• Based on this research, the first recommendation for management in airline industry
is to have an understanding of who their customers are and what they expect from the
airline services. On the one hand, such knowledge would lay a good ground for

42
 further internal research on customer expectations and satisfaction and help an airline
firstly to target exactly the customers that are profitable and loyal and second to find
out what service components the customers value.
• This research would further help to point out the areas of improvement and probably
figure out the services that are not so important to the customers. This can help low
cost carriers to map their services and choose the ones that actually add value to
customer satisfaction.
• The most important finding of this research is that the customers care more about
very basic aspects of air transportation: provide good information for decision
making, be on time and communicate promptly in case a flight is delayed or
cancelled.
• It is analyzed that travellers expect variety in meals and more entertainment facilities
in flight. So the airlines need to reconsider the value of ancillary services.
• In today’s world customization is very crucial for the success of any business.
Customer’s interest and hobbies should be asked while they book the ticket and
accordingly they should be served.

REFERENCES

43
• Bhuvaneswaran.R and Dr.Vijayarangam.D, (2013), “Service quality towards
domesticairlines passenger perception in Tamilnadu”.
• SatappaMagdum.V, (2015), “Research and Analysis of Indian Aviation Industry”.
• Trip-Advisor, http://articles.economictimes.indiatimes.com, Retrieved at 27 Feb.2016

• DGCA, “Performance of domestic airlines for the year 2016” , Retrieved at 15 March
2016, http://dgca.nic.in/reports/rep-ind.htm

• Aviation Forum, “Performances of Indian carriers in domestic aviation market”,

Retrieved at 22 March 2016, http://indiaaviationforum.blogspot.in
• Namukasa.J, (2013),"The influence of airline service quality on passenger satisfaction
and loyalty”.
• Fareena Sultan Merlin C. Simpson, Jr, (2000),"International service variants: airline
passenger expectations and perceptions of service quality”.
• Siobhan Tiernan Dawna L. Rhoades Blaise Waguespack Jr, (2008),"Airline service
quality", Managing Service Quality.
• SINGH.AK , (2016),"Competitive service quality benchmarking in airline industry
using AHP”.
• Filieri.F, (2015),"An assessment of service quality and resulting customer satisfaction
in Pakistan International Airlines".
• www.makemytrip.com
• Valarie A., Parasuraman.A, Leonard L., (1990), “Gap Model of Service Quality”.

44
 ANNEXURE

SERVICE QUALITY ANALYSIS OF AIRLINES IN INDIA

QUESTIONNAIRE

The purpose of the study----“Service Quality of Indigo Airlines in India” which I have
taken as Research Project, is to find out the passengers are satisfied. Hence, I seek kind
co-operation in filling up this Questionnaire.

Thanking you

(Please √ which is appropriate)

1. Indigo has neat well dressed and visually appealing staff .

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied

 2. Indigo provides hassle free check-in and boarding (less waiting time and queue).

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied



3. Indigo has efficient baggage handling mechanism (reasonable waiting time for baggage).

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied

 4. Indigo has modern aircrafts and clean facilities.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied

 5. Indigo provides variety and choices of in-flight entertainment facilities.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied

 6. Indigo provides variety and choices of in-flight meals.

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 Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied


7. Indigo flights are on time.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied


8. Indigo performs the services right at the first time.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied



9. Indigo has efficient check-in process.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied



10. Indigo has remedial process for delayed or missing baggage.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied



11. Indigo staff provides prompt services to passengers.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied

 12. Indigo staff always willing to help passengers.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied

 13. Indigo keep the passengers informed about the time of service.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied



14. There is prompt response to passengers’ requests or complaints by Indigo employees.

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Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied 

15. Indigo’s employee behaviour and attitude instil confidence.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied



16. Indigo is a safer airline.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied

 17. Indigo’s staff is consistently courteous.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied

 18. Indigo’s employees have knowledge to answer passengers’ queries.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied

 19. Its employees pay individual attention to passengers.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied

 20. Indigo understands the specific needs of passengers.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied

 21. Indigo has convenient flight schedules.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied

 22. Indigo keeps passengers’ best interest at heart.

Highly satisfied  Satisfied  Undecided  De-satisfied  Highly De-satisfied



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