International Journal of Engineering and Advanced Technology (IJEAT)
ISSN: 2249 – 8958, Volume-9 Issue-2, December, 2019
3663
Retrieval Number: B2827129219/2019©BEIESP
DOI: 10.35940/ijeat.B2827.129219
Published By:
Blue Eyes Intelligence Engineering
& Sciences Publication
Factors Affecting the Sales of Airlines in India with
Special Reference to Air India
Chetanya Singh
Abstract: India's aviation industry is largely untapped with
enormous growth opportunities, provided that air transport is still
expensive to most of the country's population, almost 40 per cent
of whom are the upwardly mobile middle class. The industry will
engage and work with policy makers to adopt effective and
rational decisions to improve India's civil aviation industry. The
primary aim is to identify the factors responsible for low sales of
Air India. Secondly, the aim is to evaluate the causal relationship
between factors identified and the dependent variable airline
choice. It was found that Air India should reduce the cost of
ticket on both domestic and international flights. Customer
doesn’t find services delivered up to the mark. The quality of
food, service of cabin-crew, lateness of flight and safety should be
improved by Air India to remain competitive in the market. It has
become and more imperative for the Air India to prove its mettle
and not just settle on the taxpayers money bailed out by the
exchequer but also on price, service and safety ground.
Keywords: Sales, Air India, Airlines, India
I. INTRODUCTION
The transport sector of the country plays an integral part in
the growth and development of the economy. India is
currently the ninth largest aviation market in the world,
according to the Indian Aerospace Industry Analysis report.
As far as air cargo tonnage is concerned, India is leading the
South Asian region, which includes Afghanistan,
Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan
and Sri Lanka. India currently has 128 airports, including 15
international airports. Over the past three years, India's civil
aviation industry has emerged as one of the country's fastest
growing industries. India is currently the world's third
largest domestic market for civil aviation. India has become
the third largest domestic aviation market in the world and is
expected to be the third largest air passenger* market by
2024 to surpass the UK.
II. LITERATURE REVIEW
Gilbert and Wong (2003) have compared and measured the
differences in expectations of passengers’ of airline service
quality on the factors like Assurance, Facilities, Reliability
and Flight Patterns, Employees, Responsiveness dimensions
and Customization. Other researchers have analyzed the
relationship between behavioral loyalty, passenger
satisfaction, and airline service quality, (Ostrowski &
O’Brien, 1993; Chan, 2000). Etherington and Var (1984)
and Furrer, Liu, and Sudharshan (2000) have studied the
relationships between airline service and service quality.
Revised Manuscript Received on December 15, 2019.
*Chetanya Singh, Institute of Management Technology, Ghaziabad,
Delhi NCR E-mail: chetanyasingh16@gmail.com
(Crespo-Almendros & Del Barrio-García, 2016) found that,
while purchasing any airline ticket discounts are the major
contributors for online buyers while accommodation is vital
for expert users. (Alireza Aghighi, 2015) found that sale
promotion also adds to the sales of airline ticket but the
attitude and behaviour of the customer should be borne in
mind. A study conducted on the online buying behaviors
clearly indicated that the ease of use and perceived
usefulness are the key driver for buying a airline
ticket(Ruiz-Mafé, Sanz-Blas, & Aldás-Manzano,
2009)(Daramola, Okafor, & Bello, 2014; Groves & Gini,
2013). The purpose of the given research is to find out
factors which negatively affect sales of Air India and to
provide recommendations to improve passenger satisfaction
based on actual situation, theoretical and practical research
results.
III. OBJECTIVE OF THE STUDY
After many private players in the airline industry the present
focus is that how can Air India improve passenger
experience and satisfaction to improve sales. Over the past
few years, market share, passenger satisfaction and
operating revenue of Air India has declined drastically.
Objective of the study is to identify the underlying causes of
passenger dissatisfaction and evaluate the causal
relationship between those factors and airline choice. The
primary aim is to identify the factors responsible for low
sales of Air India. Secondly, the aim is to evaluate the causal
relationship between factors identified and the dependent
variable airline choice.
IV. HYPOTHESIS DEVELOPMENT
Based on the review of literature and the objective
Following are the hypotheses formulated from the causes
identified:
H
01
: Air fare has a direct and negative impact on airline
choice
H
02
: On time performance has a direct and negative impact
on airline choice
H
03
: Age of aircraft has a direct and negative impact on
airline choice
H
04:
In-flight service has a direct and negative impact on
airline choice
H
05:
Airline staff has a direct and negative impact on airline
choice