Challenges and Strategies for Successful Airline Operation

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Challenges and Strategies for Successful Airline Operation ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 3, July 2011, ISSN 2231 5780 CHALLENGES AND STRATEGIES FOR SUCCESSFUL AIRLINE OPERATION T. SUGANTHLAKSHMI* *School of Management Studies, Anna University of Technologies, Coimbatore – 47. INTRODUCTION This paper is an analysis of Airline operations in domestic sector which gives an overview on barrier, development and the changes need to be done in operations and other related functions. Basic study of Airlines in India will give broad perspective. Some basic information of Airlines is as follows, AIR INDIA Air India has a worldwide network of passenger and cargo service. India‟s national flag carrier, Air India is one of the two state owned airlines operating flights through 95 destinations around the world. Air India has a well maintained fleet of 48 aircrafts covering short, medium and long haul routes. Their list of air carriers include 19 Airbus A310s, 13 Boeing 737-800s, 2 Boeing 747-300M Combi, 8 Boeing 747-400s, 1 Boeing 747-400M Combi, Boeing 767-300, Boeing 777-200 and 3 Boeing 777-200ER. Boeing 747-300 and Boeing 767-300 would be replaced with Boeing 777- 300ER that will operate on routes to Europe and the U.S. Plans to raise capital by Rs.1000Cr, Requested Capital Infusion by Rs.5000Cr from the Cabinet for fleet expansion. After the merger of Indian Airlines & Air India the national carrier is running out in losses. JET AIRWAYS Jet Airways, which commenced operations on May 5, 1993 has, within a short span of 14 years, established its position as a market leader. The airline has had the distinction of being repeatedly adjudged India's 'Best Domestic Airline' and has won several national and international awards. Jet Airways post its first profit in three quarters at Rs 106 crore for the third quarter ended December 31, against a loss of Rs 214 crore during the same period last year. “On the international routes, we were able to achieve seat factor of over 80 per cent for the past few months and we are experiencing a consistent growth in operating margins. We expect to see premium demand revival in the next few quarters,” said a statement from the airline. “Our Jet Airways Connect no-frills, all-economy, class service has helped us to improve seat factors and www.zenithresearch.org.in 139 ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 3, July 2011, ISSN 2231 5780 overall revenues in the domestic business and we are now in full-fledged operations as per our original plan,” the release added. KINGFISHER Owned by the India's biggest liquor baron, Mr Vijay Mallya, Kingfisher Airlines is one of the finest luxury airlines of India. Based in Bangalore, the Kingfisher Airlines started operations on 9th may 2005, following the lease of 4 Airbus 320 aircraft. Recognized with its colourful logo of Kingfisher bird emblazoned on the tails of all the aircrafts, Kingfisher Airlines main vision is to deliver safe, value-based and enjoyable travel experience to all its guest based on its core values of 'safety', 'service', 'happiness', 'accountability' and 'teamwork'. Kingfisher increased its losses to Rs 420 crore from Rs 413 crore during third quarter last year. PARAMOUNT AIRWAYS Headquartered in Chennai, Paramount Airline is a full business class airline offering you the best in service and class at lowest possible rates. Ensuring the passengers a complete value for money, Paramount endows cheap ticket air travel to passengers while providing matchless service. Being the only Airline to offer a complete business class service at cheap fares, Paramount Airline promises unparagoned comfort and world class service. Connecting to primary metros across the country, Paramount Airline offers air tickets to key destinations like Bangalore, Chennai, Kochi, Coimbatore, Hyderabad, Madurai and Thiruvanathapuram. European bank funding for expansion plan. Plans to 10 Airbus A321 for their operations to middle-east, African and far eastern region. SPICE JET Marked its position as the most competent airlines, Spice jet is one of the newest cheap ticket and low cost airlines. Endowing state of the art facility including easy access to cheap and low priced air tickets, Spice jet Airline covers almost all important destinations including Mumbai, New Delhi, Bangalore, Chennai, Ahmadabad, Goa, Kolkata, Pune and many more. Making air travel a possible dream for every Indian, Spice jet aims to compete with the India Railway passengers travelling in AC coaches. The Airline offers the most dynamic fares, without compromising on the safety and comfort of its passengers. Making air travel a pleasure trip, Spice jet endows every Indian the power to fly. Spice Jet made a profit after a loss of Rs 17.96 crore during the third quarter last year. INDIGO Headquartered in Delhi, IndiGo took off its inaugural flight on August 4, 2006. A private low- fare carrier, IndiGo provides affordable, precise and state of the art service to its passengers. A subsidiary of InterGlobe Enterprises, IndiGo operates through all popular sectors like Mumbai, www.zenithresearch.org.in Delhi, Bangalore, Goa, Chennai and many more. With 147 daily flights serving all across the 140 ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 3, July 2011, ISSN 2231 5780 country, IndiGo endows uniquely smooth, safe and pleasant journey. Propitiously working, providing vanguard service to its guests, this latest entrant in the domestic aviation space bequeaths the cheapest ticket air travel. Indigo Airlines is based in Delhi and flies to around 15 destinations all over India. This privately owned airline started operating in mid 2006, and has a market share of almost 11%. It's considered to be India's best low cost carrier. GOAIR Go Airlines (India) Pvt. Ltd is the aviation foray of the Wadia Group, The airline operates its services under the brand GoAir. GoAir launched its operations in November 2005. GoAir, a low-fare carrier launched with the objective of commoditizing air travel, offers airline seats at marginal premium to train fares across India. The airline currently operates across 13 destinations through 595 weekly flights. Since January 2007, GoAir has been consistently recording Highest Load factors in the industry. It has been recording an average load factor of 86% achieved through a balanced mix of good on-time performance and consistent quality of customer service coupled with smart fares. As part of its aggressive future outlook, GoAir plans to increase its fleet up to 10 aircraft by the end of 2009 and to induct new routes while efficiently servicing existing ones. As part of its aggressive future outlook, GoAir plans to increase its fleet up to 10 aircraft by the end of 2009 and to induct new routes while efficiently servicing existing ones. The airline operations are mainly depended on two basic criteria, they are: Airport Management Other related service provider All necessary infrastructure facilities need to be done in Airport which is to be effectively managed along with other related services like food, baggage etc. So, necessary data information is collected with these two functions without which an airline cannot operate effectively. A STUDY ON AIRPORTS IN INDIA India boasts of a well-developed air travel network. In a vast country like India air-travel is the swiftest mode of transportation to reach from one end to another. There is good air connection to nearly all corners of India. Almost all the states have one or more airports, which are regularly serviced by several airlines. There are a number of international airports, which also serve as domestic airport too. Others are only domestic airports. www.zenithresearch.org.in Number of full-fledged Airports in India total up to nearly 92, out of which 12 are international 141 ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 3, July 2011, ISSN 2231 5780 airports. Most of the airports are equipped with state of the art facilities. There are good arrangements for signalling, landing, waiting lounge etc. many of the airports are going under modernization very soon. A large number of international airlines including the Government owned airlines like Air India & Indian Airlines connect India from major foreign countries to India. Of late Jet Airways & Air Sahara has started international operation to destinations like Singapore, London, New York. This entry gives the total number of airports or airfields recognizable from the air. The runway(s) may be paved (concrete or asphalt surfaces) or unpaved (grass, earth, sand, or gravel surfaces) but may include closed or abandoned installations. Airports or airfields that are no longer recognizable (overgrown, no facilities, etc.) are not included. Note that not all airports have accommodations for refueling, maintenance, or air traffic control. OTHER RELATED SERVICE • Repairing (except on a factory basis) • Maintaining in servicing • In furnishing coordinated handling services • Ground Handling Service – 16 • Catering Services • Baggage Handling Service • Cargo Handling Service The category includes establishments primarily engaged in operating and maintaining airports and flying fields; in servicing, repairing (except on a factory basis), maintaining, and storing aircraft; and in furnishing coordinated handling services for airfreight or passengers at airports. The industry includes private establishments primarily engaged in air traffic control operations. Government air traffic control operations as well. Aircraft modification centres and establishments primarily engaged in factory type over-haul of aircraft are classified in transportation equipment industries, and flying fields maintained by aviation clubs. With the extracted information from the above analysis, challenges are identified. Further it is compared with 6 basic parameters and these are changes needed for the effective operations. With this analysis the paper will highlight the overall development of Airlines in long run. 1. Rational Model www.zenithresearch.org.in 142 ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 3, July 2011, ISSN 2231 5780 2.
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