AKNOWLEDGEMENT
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 report format formation ion.. Several Several eminent eminent people people at National Aviation Aviation Company of India (NACI! have made valuable contributions to this report through their inputs. I duly Limited (NACI! ackno"ledge my gratitude to each one of them. At last, I "ould like to ackno"ledge all those "ho helped, directly or indirectly, at various areas in completing my pro#ect and related study and made my training a "onderful e$perience.
1
TABLE TABLE OF CONTENTS
S.No
%. . '. ). /. 1.
4. . . %+. %%. %. %'. %). %/. %1.
Particulars
Page No.
&$ecutive summary ' Introduction to the topic )*%+ Introduction to Airlines Airlines Industry and company profile %%*% -enefits provided to employees %*' 0roductivity inked Incentives '' Comparison of different Airline companies "ith ')*'1 AI2 IN3IA (NACI! IT section in AI2 IN3IA (NACI! Corporate 5b#ectives. 2esearch 6ethodology. 3ata Analysis 7indings and Analysis Conclusion 2ecommendations imitations -ibliography. Appendices
2
'4*' )+ )%*)' ))*1 1 4+ 4% 4 4' 4)*41
TABLE TABLE OF CONTENTS
S.No
%. . '. ). /. 1.
4. . . %+. %%. %. %'. %). %/. %1.
Particulars
Page No.
&$ecutive summary ' Introduction to the topic )*%+ Introduction to Airlines Airlines Industry and company profile %%*% -enefits provided to employees %*' 0roductivity inked Incentives '' Comparison of different Airline companies "ith ')*'1 AI2 IN3IA (NACI! IT section in AI2 IN3IA (NACI! Corporate 5b#ectives. 2esearch 6ethodology. 3ata Analysis 7indings and Analysis Conclusion 2ecommendations imitations -ibliography. Appendices
2
'4*' )+ )%*)' ))*1 1 4+ 4% 4 4' 4)*41
EXECUTIVE SUMMARY strategies that AI2 IN3IA (NACI! (NACI! is implement implementing ing to retain its This 0ro#ect aims to study8 the strategies
employees, and to compare C26 strategies of NACI "ith other Airlines Airlines Companies. 6y study study "as "as conf confin ined ed to 92 and Comm Commerc ercia iall 3epa 3epart rtme ment nt of AI2 IN3I IN3IA. A. :nder :nder 92
department I "as studying all policies that NACI is implementing to retain its employees and under Commercial Commercial department department I studied studied C26 strategies strategies related to customers. customers. This study has conducted to kno" the effectiveness of C26 strategies for internal as "ell as e$ternal customers of AI2 IN3IA (NACI!.Thi (NACI!.Thiss study focuses on improvement improvement in e$isting e$isting C26 strategie strategiess of the company. It also aims to study the success of e$isting policies to"ards relationship building, internal marketing, most preferred policy, satisfaction level of employees. This pro#ect has started "ith study of the organi;ation to have a fair idea about "ork culture. I conducted a survey through
3
INTROUCTION TO T!E TOPIC AIR TRAVEL TRAVEL INUSTRY" IN USTRY"
Aviation Industry in India is one of the fastest gro"ing aviation industries in the "orld. >ith the liberali;ation of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. 7rom being primarily a government*o"ned industry, the Indian aviation industry is no" dominated by privately o"ned full service airlines and lo" cost carriers. 0rivate airlines account for around 4/= share of the domestic aviation market. &arlier air travel "as a privilege only a fe" could afford, but today air travel has become much cheaper and can be afforded by a large
number
of
people.
The origin of Indian civil aviation industry can be traced back to %%, "hen the first air flight bet"een ?arachi and 3elhi "as started by the Indian State Air Services in collaboration "ith the :? based Imperial Air"ays. It "as an e$tension of ondon*?arachi flight of the Imperial Air"ay Air"ays. s. In %', %', @23 Tata ata founded founded Tata ata Airli Airline, ne, the first first Indian Indian airlin airline. e. At the time time of independence, nine air transport companies "ere carrying both air cargo and passengers. These "ere Tata Airlines, Indian National Air"ays, Air service of India, 3eccan Air"ays, Ambica Air"ays, -harat Air"ays, 5rient Air"ays and 6istry Air"ays. After partition 5rient Air"ays shifted
to
0akistan.
In early %), overnment overnment of India established established a #oint sector company, company, Air India International International 4
td in collaboration "ith Air India (earlier Tata Airline! "ith a capital of 2s crore and a fleet of three ockheed constellation aircraft. The inaugural flight of Air India International td took off on @une , %) on the 6umbai*ondon air route. The overnment nationali;ed nine airline companies vide the Air Corporations Act, %/'. 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 e$isting airline companies "ere transferred to these t"o corporations. This Act ensured that IAC and AI had a monopoly over the Indian skies. A third government*o"ned airline, Bayudoot, "hich provided feeder services bet"een smaller cities, "as merged "ith IAC in %). These government*o"ned airlines dominated Indian
aviation
industry
till
the
mid*%+s.
In April %+, the overnment adopted open*sky policy and allo"ed air ta$i* operators to operate flights from any airport, both on a charter and a non charter basis and to decide their o"n flight schedules, cargo and passenger fares. In %), the Indian overnment, 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 %/' and replacing it "ith the Air Corporations (Transfer of :ndertaking and 2epeal! Act, %). 0rivate operators "ere allo"ed to provide air transport services. 7oreign direct investment (FDI) of up to 49 percent equity stake and NI (Non esident Indian) investment of up to !"" percent equity stake #ere permitted t$rou%$ t$e automatic FDI route in t$e domestic air transport services sector& 'o#ever no forei%n airline could directly or indirectly $old
equity
in
a
domestic
airline
company&
-y %/, several private airlines had ventured into the aviation business and accounted for more than %+ percent of the domestic air traffic. These included @et Air"ays Sahara, N&0C Airlines, &ast >est Airlines, 6odiuft Airlines, @agsons Airlines, Continental Aviation, and 3amania Air"ays. -ut only @et Air"ays and Sahara managed to survive the competition. 6ean"hile, Indian Airlines, "hich had dominated the Indian air travel industry, began to lose market share to @et Air"ays and Sahara. Today, Indian aviation industry is dominated by private airlines and these include lo" cost carriers such as 3eccan Airlines, oAir, Spice@et etc, "ho have made air travel
affordable.
Airline industry in India is plagued "ith several problems. These include high aviation turbine fuel (AT7! prices, rising labor costs and shortage of skilled labor, rapid fleet e$pansion, and 5
intense price competition among the players. -ut one of the ma#or 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. T"o of Indias largest airports*6umbai and Ne" 3elhi*"ere privati;ed recently. T"o reenfield airports are coming up at -angalore and 9yderabad 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.
6
CRM IN AVIATION
#CRM is a custo$er%&ocuse' (usi)ess strateg* 'esig)e' to o+ti$i,e +ro&ita(ilit*- ree)ue a)' custo$er satis&actio)./
01* s1oul' Airli)es 'o CRM2
A)*t1i)g else 2
/+ 1+= of customers are not profitable and customers providing less than += of the profit potential consume 1+ += of front office support
The cost of ac
1= of customers leave because of poor service. 5nly %'= left because of product dissatisfaction and = because of price.
The Aviation hori;on in India is becoming increasingly competitive. Airlines need to stay more customers focused and employ effective C26 regardless of "hether they are 0S:s, full*service providers, o"*Cost Carriers (CCs! or innovators. 7
Nee' &or a Custo$er%&ocuse' I)itiatie 3i4
Trael is (eco$i)g a 5Co$$o'it*6
Increased economic activity has meant that more and more people are travelling for business as "ell as leisure purposes. The situation today is such that travel, overseas as "ell as domestic, has become so common and prevalent that it can be easily termed a DcommodityE. 3ii4
Mass Mar7eti)g is 5ea'6
The vast number of options and choices available to a Customer and the e$plosion of information have meant that every customer is having individuali;ed needs "hich are uni
Mass Mar7eti)g is t1e 5Eas* Bit6
The comforts "hich 6arketers have en#oyed in the earlier times "ere mainly because of the generali;ations "hich "ere made "hile addressing customer needs.
5ne
advertising message or campaign "as thought to be sufficient for reaching the masses, making it easier for the 6arketers.
3i4
Its a(out 5Ree)ue6 a)' 5Co$+etitie E'ge6
The increasing demands of customers and the stakeholders has meant that costs as "ell as prices have to be contained on one hand and on the other the revenues need to be increased for gaining a sustainable competitive advantage over the competitors.
8
89: egree Custo$er ie;" Source < Maga,i)e
9
ABOUT #SIMPLIFYIN= T!E BUSINESS> 3StB4
In this rapidly changing "orld the biggest challenge an Industry face is to keep pace "ith the increasing customerEs demands for services and at the same time achieving the targets of cost reductions "hich are so much essential for revenue ma$imi;ation.
The Aviation Industry has been both the driver as also the sector, "hich has been affected most by the s"eeping "aves of globali;ation. Today, more than ever before, the passenger traffic is touching ne" highs as business F leisure travel is rapidly increasing.
To face the challenges, more than anything else, the Air Transport Industry needs change. 6ounting losses, high oil prices and lo"er fares have forced Airlines to rethink current models and re*engineer the business. &fficiency is the battle cry as air transport races to become a lo" cost Industry. The challenge to find cost savings in the Industries comple$ process, "hilst, at the same time, enhancing convenience for the consumer.
As a result, in ++) the C&5s of IATAEs member Airlines mandated its association to lead in Industry "ise programmes designed to ease the transport of passenger and freight and deliver G 1./ billion in annual Industry savings. It6s calle' #SIMPLIFYIN= T!E BUSINESS>
DSimplifying the -usinessE is comprises of five pro#ects that together form an end simplified travel process " %
?. ?::@ Electro)ic Tic7eti)g (* t1e e)' o& :: 3ET4 . Co$$o) use sel&%serice 7ios7s &or c1ec7%i) 3CUSS4 8. Bar%co'e' (oar'i)g +asses 3BCBP4 . Ra'io &reDue)c* i'e)ti&icatio) &or (aggage 1a)'li)g 3RFI4 . IATA e%&reig1t < &reei)g cargo o& +a+er (* t1e e)' o& :?: 10
end*to*
5ut of the five I.T. initiative taken by IATA, &lectronic Ticketing (&T! is the most critical it of huge importance to passengers, "ill deliver :S G ' 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. &*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
INTROUCTION TO AIRLINES INUSTRY AN COMPANY PROFILE
3uring the %+s and %+s, the airline industry under"ent significant change. The industry, "hich had been heavily regulated and controlled, "as liberated fro m governmental oversight and released to the vagaries of the marketplace in %4. >hat follo"ed "as a period of evolution and metamorphosis that changed the nature of flying forever. At the same time, serious safety
hen the firsts airlines appeared after >orld >ar I, fe"er than si$ thousand passengers a year traveled by air. -y the %'+s, the -ig four* &astern Airlines, :nited Airlines, American Airlines, and Trans >orld Airlines (T>A! * dominated commercial air transport. These companies had garnered e$clusives rights from the federal government to fly domestic airmail routes, and 0an American (0an A6! held the rights to international routes. The hold of these four airlines on their lucrative contracts "as virtually unchallenged until deregulation in %4. &ven after the formation of the Civil Aeronautics -oard (CA-! in %', formed to license ne" airlines, grant ne" routes, approve mergers, and investigate accidents, the -ig 7our and 0an Am continued to be guaranteed permanent rights to these routes. Infact, no ne" ma#or scheduled airline "as licensed for the ne$t four decades. In 5ctober %4, Congress passed the Airline 3eregulation Act () :.S.C.A. H '') et se<.!, ending the virtual monopoly held by the -ig four and 0an Am. The governmentEs goal "as to promote competition "ithin the industry. The act gave airlines essentially unrestricted rights to enter ne" routes "ithout CA- approval. The companies could also e$it any market and raise and lo"er fares at "ill. The immediate effect of deregulation "as a drop in fares an and increase in passengers. Ne" cut* rate, no*frills airlines, such as 0eople &$press Airlines and Ne" ork Air offered travelers the 12
lo"est fares ever seen in the industry. 7orced to compete to fill their planes, the larger companies lo"ered their prices as "ell. Then the oil*producing countries in the 6iddle &ast formed a cartel and raised the price of #et fuel = in %4 and an additional '= in %+. Combined "ith tumbling fares and increased passenger loads, the higher cost of #et fuel caused airlinesE profits to drop. abor strike also affected the industry in the early days follo"ing deregulation. In %%, after years of "orking under stressful conditions made "orse by deregulation, the professional Air traffic controllers 5rgani;ation (0ATC5! called a strike, demanding shorter "orking hours and higher pay. The union e$pected support and cooperation from the 2eagan administration because of a sympathetic letter 0resident 2onald 2eagan had sent to 0ATC5 "hen he "as campaigning for the presidency. In the letter, he pledged to "hatever "as necessary to meet 0ATC5Es needs and ensure the publicEs safety. -ut 2eagan ordered the strikers to return to "ork "ithin three days or be fired. 6ost did not return. The 7ederal Aviation Administration (7AA! ordered all carriers to temporarily reduce their number of flights by one*third. Ne"er and smaller carriers found themselves increasingly unable to gain access to lucrative routes. 2ebuilding the air traffic controller force took years during "hich landing slots at /he largest airports remained restricted and small carriers unable to compete, simply abandoned their attempts to break into the larger markets. To some e$tent, competitive pricing actually had the opposite effect of "hat the deregulators intended. >hen the small JupstartK companies offered e$tremely lo" fares, the larger companies responded aggressively. 7or e$ample, in %', 0eople &$press announced G round Ltrip fare bet"een Ne"ark, Ne" @ersey and 6inneapolis*St. 0aul. North"est Airlines, "hich had al"ays dominated the T"in Cities market, undercut 0eople by instituting aG/ fare for the same destination and scheduling e$tra departures around 0eopleEs. As a result, people decided it could not compete and "ithdre" from the market. 0assengers en#oyed the benefit of lo"er fares, but only for a short time before the competitive effect faded and high fares returned. >hen deregulation brought competitive pricing, the large carriers began to reali;e that it "as not profitable for them to do business the "ay they had in the past. The first ma#or change they made "as to abandon the practice of crisscrossing the continent "ith nonstop flights to many different cities. Instead the ma#or airlines scheduled most of their flights into and out of a central point of hub, "here passengers might need to change to different flight to complete their #ourney. 5ne airline controlled most of the reservation desks and gates at a particular hub* for instance. :nited 13
in Chicago, North"est in 6inneapolis*St.0aul, America in 3allasL7ort "orth, and 3elta in Atlanta. 7or this reason, and because passengers tend trod is like changing carriers in the middle of a trip ,the dominant company in a hub had a tremendous advantage over the competition in influencing "hat carrier a passenger "ould choose .-y %+, t"o*thirds of all domestic passengers traveled though a hub city before arriving
at their final destination .of those
passengers, eight out of ten remained on the same airline throughout their #ourney .-y % , there "ere at least t"elve Jfortress hubsK or airports "here one airline controlled more than 1+ percent of the traffic .0assengers "ho fle" out of these hubs paid over + percent more than they "ould have for a comparable trip out of an airport that "as not a hub. After deregulation, the air lines also came to reali;e that needed a more efficient "ay 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 %4+s and early %+s airline schedules "ere contained in large printed volumes, reservations "ere taken over the telephone and tailed manually at end of each day , and tickets "ere "ritten by hand . to streamline this process the large companies initially proposed a #oint computer system , listings schedules and fares .the #ustice department ob#ected on the grounds that such a system "ould be anticompetitive and "ould violate the Sherman Anti*Trust Act (%/ :.S.C.A. H % et se<. M%+!. Instead, each airline developed its o"n computer system and entered data in a manner that unfairly biased travel agents Dchoices in favor of the carrier that o"ned the system. Though skillful manipulation of the data, the airlines "ere able to put competitors at a disadvantage. 7or e$ample, the airline that o"ned 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 "in loyalty from passengers, the large airlines instituted fre
:nited and American lay off employees and abandoned plans to p+urchase ne" aircraft, "hich added to the "oes of the depressed aerospace industry. -y %', the industry began to rebound. Continental Airlines and T>A emerged from bankruptcy, and a fe" small carriers, such as ?i"i International, formed by former &astern 0ilots, responded to the publicEs demand for lo" fares and began to make incursions into the established markets, although they generally shied a"ay from directly challenging the giants. 5lder carriers for the most part chose to stay "ith their hub*and*spoke systems, and several, including North"est, Continental, and T>A, gains concessions from their unions that helped them emerge from apparently imminent financial ruin. The mergers and buyouts of the %+s "ere often accomplished in an atmosphere of hostility and distrust. Charges of predatory pricing and other unfair business practices "ere leveled by one carrier against another. 3uring the %+s, the @ustice 3epartmentEs Antitrust 3ivision made a number of grand #ury investigations into alleged anticompetitive activity by the ma#or airlines, but no indictments "ere handed do"n. 9o"ever, the companies that survived did not emerge unscathed. 6any of the acith profits insufficient to cover their enormous debt loads, the companies frantically competed for business, engaging in fare "ars that produced a di;;ying array of pricing plans "ith ehat do you think "ill happen "hen n itEs a choice bet"een employee benefits and capital investmentOK 15
0roponents of deregulation are confident that the changes accompanying it "ill result in a stronger, more stable, and efficient industry, better ree
AF*+,-
In troubling criticism of deregulation is that aggressive competition has forced airlines to cut corners, resulting in safety lapses. In %+, &astern Airlines "as handed a si$ty*count federal indictment charging it "ith shoddy and dishonest maintenance practices. The indictments came after years of complaints by mechanics for the financially troubled airline "ho claimed that pressures to cut costs led to maintenance shortcuts and falsification of maintenance records. In @anuary %%, &astern ceased operation. Critics contend that &astern "as hardly alone in its cavalier approach to safety. They charge that the 7AA is understaffed and poorly managed and that money shortages have caused all the airlines to rela$ safety standards. They point not only to increased pressured on the labor force but also to companiesE reluctance to replace their aging fleets, the congestion of airspace caused by increased air travel, cro"ded hub airports that create security risks ,and over"orked and sometimes poorly trained air traffic controllers. et, statistically, passengers are no more likely to die in a plane crash since deregulation than they "ere before it. Still, critics maintain that, despite the airlinesE and governmentEs efforts to assure the traveling public to the contrary, air safety is in need of substantial improvements. 6any critics feel that at least part of the problem lies in the dual role of the 7AA. Charged simultaneously "ith promoting the economic health of the aviation industry and fostering safety, the agency is often at odds "ith itself. In addition, the 7AAEs budget "as cut and the number of inspectors reduced in the %+Es, the same period "hich the number of passengers multiplied and the number of air traffic controllers "as reduced. 7urthermore, unions, "hich stand to benefit from the increased scrutiny and higher standards imposed by the 7AA continue to be ma#or instigators foe a change. 9o"ever, even neutral commentators have suggested that it is time to impose some degree pf regulation in the form of stronger 7AA oversight, on the industry. In fact, the 7AA has been accused of suffering from a Jtombstone mentalityK that caused the agency to delay acting on safety concerns until negative publicity generated by a crash forces the issue. &ven after safety measures are recommended by the National Transportation Safety -oard 16
(NTS-!, the agency charged "ith investigating accidents, the 7A has been critici;ed for not al"ays follo"ing through. Aging aircraft became a ma#or concern during the late %+s and early l%+s. In %, an Aloha Airgroup -oeing 4'4*++, purchased in %1, lost the top of its fuselage "hile flying at t"enty* four thousand feet. A flight attendant "as immediately sucked out of the plane and plunged to her death. The plane made a harro"ing emergency landing, but not before si$ty*five passengers suffered in#uries, some serious. Congress responded in %% by passing the Aging Aircraft Safety Act () App.PSPCPA %)% note!, "hich re
7AA spokesperson, testify in opposition to the bill, said the 7AAEs research indicated that if all children "ho needed them "ere placed in child safety seats, the airlines "ould save appro$imately one life over a ten Lyear period, and the childrenEs families "ould save about G./ billion. A study conducted at 9arvard 6edical School estimated that one infant a year could be saved through the use of safety seats. The sponsors of the bill vo"ed to continue to press for more stringent safety standards for babies. Safety concerns "ill continue to plague the airline industry, even though the 7AA assures the flying public that, statistically, at least, flying a ma#or airline in the :nited States is far safer than driving on an interstate high"ay. Questions persist about the 7AAEs effectiveness in overseeing air safety. And financially strapped airlines, "hich posted G%. billion in losses from %+ to %), must make difficult risk*benefit analyses "hen contemplating ne" safety measures. Some critics such as 2alph Nader, "ho initially supported deregulation, are no" calling for limited government intervention to ensure safety. 9o"ever, e$perts "arn that the :.S airlines system. >hich is already e$tremely safe, probably can never be completely "ithout risk. According to Stuart 6atthe"s , president of the flight Safety 7oundation,K if the public absolutely demands that flying be totally safe, you are going to have to ban flying.K iven the taking a calculated risk and not flying at all, Americans, "ho take their lives into their hands each time they drive, "ill probably continue to trust the statistics and take their chances. >hat form the industry "ill assume "hen the deregulation dust finally settles remains an open
A-5:T IN3IAN AI2IN&S8
9IST528
Indian Airlines "as constituted as a corporation under Air Corporation Act, August %/'.It is "holly o"ned corporation of the government of India and is a product of nationali;ation of the e$isting private airlines operating scheduled air services "ithin India and bet"een India and 18
-urma, Nepal, Ceylon, 0akistan and Afghanistan. The Airlines, "hich merged and integrated to form Indian Airlines, "ere8
Air"ays (India! imited.
Air India (operating domestic service only!
Air services of India imited
3eccan Air"ays imited
9imalayan Air"ays imited
-harat Air"ays imited
Indian National Air"ays
?alinga Air"ays imited
-efore %/', i.e., before these Airlines merged to form Indian Airlines, there "ere no set rules and standards of operations of the Airlines. The operations mainly "ere competition oriented and the result of "hich "as that every Airlines "anted to be the cheapest one. Thus resulted in almost all the Airlines did not have enough money to maintain the Aircrafts. They "ere presented an e$cellent e$ample of unhealthy competition. :ltimately the ovt. took over by passing the Air Corporation Act and Indian Airlines come into being. The affairs of the corporation are conducted by a board of 3irectors.
Indian Airlines is one of the public sectors corporations in India. A statutory corporation like Indian Airlines is formed "ith definite ob#ectives in th interest of the public through based on pre* set principles. 5-@&CTB& 7:NCTI5NS 57 IN3IAN AI2IN&S8
It shall be the function of the corporation to provide safe, efficient, and ade
Corporation shall so e$ercise their po"er as to secure that air transport service are developed to the best advantage and in particular, so e$ercise their po"er as to secure that the services are provided at reasonable charges. The Act provides for the constitution of a -oard of directors, "hich may e$ercise all such po"er and do all such acts and things as may be e$ercised or done by the corporation under this act. The -oard of 3irectors shall consist of a chairman cum 6anaging 3irector to be appointed by the Central government and not less than eight and not more than fourteen other 3irectors to be appointed by the Central government.
Indian Airlines is a public utility service under the Industrial 3isputes Act %)4 has to "ork in the interests of the public. In vie" of this, the corporation is accountable to the public through the ovt. and parliament for its activities. This control is t"o fold8
To see that corporation does not deviate from its ob#ectives.
To have financial control because the funds of the corporation are derived from public funds.
The credit of launching the first real effective internal air services in India goes to Tata sons "ho from %/ 5ctober %' began operating air mail services bet"een ?arachi and madras once a "eek "ith a single engine aircraft. Indian National air"ays established in 3ecember %') an air service bet"een ?arachi and ahore linking "ith imperial air"ays service at ?arachi. In %') Tata sons doubled its "eekly fre
20
In %1+, the logo for Indian airlines "as selected "hich "as based on golden section of ancient reeks. JAK had been italici;ed to suggest speed and the truncation of first stroke indicates movement "hile the second emphasi;ed on reliability. The for"ard surging of the symbol "as intended to sho" the Jlooking aheadK characteristic and the oran%e colour gave vi.rancy and purity.
The ogo has no" been changed and the J>heel of konarkK "hich is replica of the sun no" symboli;es Indian Airlines.
Amalgamation of Air India imited and Indian Airlines imited "ith National Aviation Company of India imited8 The overnment of India, on % 6arch ++4, approved the merger of Air India and Indian Airlines. Conse
RRhere in international and domestic market "ith this ne" image and logo.
22
BENEFITS TO EMPLOYEES
National Aviation of India imited provides benefits to its employees under t"o categories8
I)
+A+/A, 0*N*FI+-
a! >orkmen Compensation Act, %' 8 In case of a temporary or permanent in#ury, caused to an employee "hile in service, the organi;ation has to provide the compensation to the employee.
b! 0rovident 7und Act, %/ 8 This benefit is given to the employee after retirement from the organi;ation.
c! >ages Act,%'1 8 &arlier "ages "ere not paid on time. According to this act, the "ages and salaries "ill be paid on fi$ed time and all the deductions dine "ould be told to the employees.
d! Industrial dispute Act,%)48 According to this act, a committee kno"n as "orks committee is formed "hich deals "ith the "elfare of the employees at the grass root level. The members of this committee are /+= from the employerEs side and /+= from the employeeEs side.
e! &mployees State Insurance Act, %)8
23
According to this act, if the employee or his family members are sick then the company looks after their health i.e., most of the money is given by NACI.
f! 7actory Act, %)8 This act takes care of the service conditions, "ork environment etc. given to the employees. It also keeps a check on the "orking hours and action is taken "henever the regulations are violated.
g! Air Corporation Corporation Act, %/'8 A ne" enactment "as made in %/' "here there "as a provision for problems regarding labor relations. 9ere /+= participants are employerEs side and /+= from employeeEs side.
h! 0rovident 7und 6iscellaneous Act, %/'8 In the previous provident fund act, there "as no provision for dra"ing money before retirement. According to modified act, if the money is refundable, si$ times of the provident fund salary can be "ithdra"n "hich can be recovered in ' years in '1 installments.
i! 0ayme 0ayment nt of ra ratu tuit ity y Act Act,% ,%4 488 NACI can pay a ma$imum of './ lakhs as gratuity. gratuity. This is statutory and deviation is possible.
II! N5N N5 N STAT:T52 STAT:T52 -&N&7ITS8 -&N&7ITS 8
24
a! Scho Schola lars rshi hips ps88 These are provided to the "ards of the employees. It basically b asically starts from class II till the post graduation level e.g. 6-A, &ngineering etc. The amount of scholarship given to the employees for their children is on yearly basis "hich is sho"n in the table belo"8
0articulars
Amount (in 2S.!
Class II * Class IB Class B L Class BIII Class I L Class II 7or raduates 7or 3iploma 9olders 7or &ngineeringF6-A etc.
% / /+ ' 4/ / ++ 1 / 4 /+
b! Air passage8 This Non*Statutory "elfare facility is entitled for free and discounted passage to travel. It is given to three types of staff8 %. 7or 0erm 0erman anent ent staf staff8 f8 It starts after the completion of % year. Air passage for the permanent staff is sho"n in the table belo"8
ears for service
7ree Air Tickets
3iscount (/=!
3iscount (/=!
%L/ /L4 4 L %+ % + L + + L / / Above
* % ' ) /
' % * * *
25
. 7or 7or 2et 2etir ired ed sta staff ff88 2etired employees "ith minimum %/ years of service are eligible for this Air passage benefit. This non statuary benefit is sho"n in the table belo"8
ears for service
7ree Air tickets
3iscount (/=!
% / L + + */ / above
% %
' )
2etired &mployees are also given this benefit8
0assage for S5 (Staff 5n eave! This passage is for the employees and his family. family.
0assage for S53 (Staff 5n 3uty! S53 is granted additional passage for the purpose of any official
"ork.
'. 7or 3ece 3eceas asee &mp &mplo loye yees es 8
If any employee dies "hile service then, he "ill get Air 0assage benefits half of "hat he "as actually getting "hile "orking. "o rking.
If any employee employee dies after retirement retirement then, he "ill get Air passage benefits benefits half of "hat he "as actually getting after retirement.
26
For deceases dec eases employees Air 1assa%e .enefits #ill .e %iven only o nly to employee2s employee2s spouse or c$ildren
Note•
Family is inclusive of spouse3 c$ildren c$ildren
•
pouse 'us.and5 #ife
•
C$ildren Dau%$ter5on5Dau%$terinla#5oninla# Dau%$ter5on5Dau%$terinla#5oninla#&&
•
1assa%e year for t$e 6 years can .e com.ined&
•
1assa%e year starts from from !st Au%ust 7 8! st uly&
•
Food facilities are included included in t$e passa%e&
c! 9ous 9ousin ing g Colo Coloni nies es88 NACI provides 9ousing facilities to their employees on the basis of their grades and as per their seniority level "hich is sho"n in the table belo"8
3esignations
rades
Type of flat
No. of houses
0eonsFhelper
U
7lat A%
+ +
A
C 3
)
5ffice Assistants FSenior assistant Superintendent 5fficers 3irectors
office 'F1 4F A*%/ %/ above
0rocedure of giving the 9ousing 7acilities8
A notification or a form is distributed to all the employees according to their grades.
Note8 27
7or the employees "ho came under grades % to 8* &mployees for this grade "ill get Type of flat AF- as sho"n in the above
•
table.
7or the employees "ho came under grade A8* &mployees for this grade get the 9ouse facility on the basis of their @oining
•
date for the particular post.
7or the employees "ho are having their grades %/ above8* Type of 7lat 3 is given to them.
•
C2IT&2IA 752 T9& 5:T 57 T:2N A5T6&NT8
2e
Authority is approved by &$ecutive 3irector
7or 2etired &mployees8 After three months of retirement, employees have to vacate their houses. -ut if due to some reasons, they are not able to vacate their homes, then, some amount of rent is deducted from their money as per the market rates. -ut after some point of time, letter A is given to them in advance for vacating their homes. -ut if they are still not ready to vacate their homes then etter - is given to them. And after some point of time etter C is given to them. If an employee is still not ready then strict action against them is taken. d! 9oliday homes8 9oliday homes have been established at a number of hill resorts and places of tourist interest. Staff is re
28
2&I5NS
STATI5NS
Northern 2egion
Nanital and 3haramshala
&astern 2egion
angtok
Southern 2egion
?odai ?anal
>estern 2egion
oa
N5T&8
9oliday 9omes are given for the particular year only.
7acilities for the ?itchen are included.
In "inters, 9eater 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 NACI.
A:AILA0ILI+, F; +'* ;;< 8
1articulars
No& of ooms
For taff For ;fficers (!9 A)
! 6
Deductions5C$ar%es for t$e ooms-
rades
Amount per day (in 2s.!
U '*
/ '/ 29
A*%
4/
days stay is %iven for D$arams$ala
e! 6edical 7acilities8 &mployees are provided free medical facilities, both ambulatory and hospitali;ation. 7ully e
f! oans8 -asically three types of loans "ere given to the employees. -ut no" this facility is not given to the employees since ++'*++) on"ards.
9ousing oans8
&mployees are eligible for grant of housing loan sub#ect to availability to availability of funds after completion of /years of service. 6a$imum housing loan can be granted up to 2s. ' lakhs.
Behicle oans8 oans are granted to employees for the purchase of cars, scooters and
cycles, sub#ect to the availability of funds. Behicle loan limits are as under8
Behicle
Amount (in 2s.!
Ne" car 5ld car Ne" ScooterF 6otor cycle 5ld scooterF 5ld 6otor cycle Cycle
4/,+++F* /+,+++F* %/,+++F* 1,+++F* 1++F*
6iscellaneous oan8
30
&mployees are also granted miscellaneous loans for meeting various contingencies up to a ma$imum of 2s. %/,+++F*
g! roup Insurance scheme8 5n the death of an employee "hile in service, his family is paid the group insurance,
h! ong service mementos8 &mployees on completion of / years of satisfactory service are a"arded long service mementos in recognition of their service. i! 7estival Advance8 7estival advance is admissible to all employees on one occasion in calendar year on 9oliFId*ul*fitrF3ussheraF*mas festivals. &mployees "ith less than si$ years of service can avail festival advance only after they furnish a surety of another employee of NACI "ho has put at least si$ years in service in NACI. The advance payable is 2s. ',+++F* and 2s. ),+++F* depending upon the employeeEs basic pay and is recovered in %+ monthly interest free installments.
#! 7inancial assistance to &mployees pursuing higher Studies8 &mployees "ho "ish to pursue higher studies are granted financial assistance sub#ect to a ma$imum of t"o courses in the entire service of the employee. &mployees are reimbursed tuition fee, admission fee, e$amination fee and an amount up to 2s. '++F* for the purchase of books.
k! Cooperative Thrift Credit societyF 7air price shopF 3eath benefit society8
31
The company grants various facilities, to the above societies, formed by the employees from time to time.
l! &mployees "orking at the airports at 3elhi, 6umbai, and ?olkata are provided freeFsubsidi;ed transport from various rallying points.
m! 2etirement gifts 8 A gift of "orth 2s.'+++F* is given to the employees at the time of their retirement only after the completion of their / years of satisfactory service.
n! Community centers8 NACI has its o"n community centers at IA colony (Basant vihar!. It provides community center facilities not only to the employees but also to their relatives and family members at the nominal charges mentioned belo"8 Total charges for employeeEs o"n family is 2s. //+F* per day and for the other relations is 2s. %)+++F* per day sho"n in the table belo"8
7or employeeEs o"n family8
2ent &lectricity charges >ater charges Security (refundable! Total Amount
2s. %/+ 2s. %+++ 2s. /++ 2s. /++ 2s. //+F*
7or employeeEs other relations8 2ent &lectricity charges >ater charges
/+++ %+++ /++ 32
Security ( 2efundable! Total amount
4/++ %)+++F*
If an employee "ant community centre for days or more than days then he has to pay the charges doubled for "hat he "as actually paying for one day in both the above cases. -ut 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 N5C i.e. No ob#ection certificate from the "elfare 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 employees8
Casual leave8 An employee is eligible for Casual leave to the e$tent of %+ days in a financial year either for the private affairs or on grounds of sickness. This leave cannot be not be accumulated. Normally not more than 'days casual leave is granted at a time in t"o consecutive months. Casual leave can be combined "ith e$traordinary leave i.e. leave "ithout pay and allo"ances. Casual leave cannot be combining "ith any other kind of leave e$cept "hen an employee "ho has e$hausted the full period of sick leave due to him re
0rivilege eave8 An employee is eligible for '+ days privilege leave for every %%
months of service. This leave is accumulated upto '++ days. The leave account of an employee is "ritten up in the retrospect only once for each period of %% months service by adding '+ days to the opening balance as on first day of the period and deducting there from total leave availed of during the period. 2eckoning of leave on pro rata basis is permissible during the currency of period of %% months service if the balance at the beginning of the period is less than the individualEs leave re
33
the grant of leave and the same "as refused before the e$piry of %% months period. In such cases the employee may be authori;ed to carry for"ard to the ne$t leave period the full amount of leave assessed above provided the number of days of privilege leave carries over by him, and refused in "riting o"ing to e$tengencies of corporation "ork.
An employee is allo"ed to encash 0rivilege leave in accordance "ith the follo"ing conditions8 i!
The encashment of 0rivilege eave is allo"ed at the option of an employee.
ii!
The ma$imum number of days for "hich 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!
&ncashment of 0rivilege eave shall be allo"ed only once in a financial year.
iv!
No encashment of 0rivilege leave is permissible to an employee during the period of suspension from service
v!
The period of 0rivilege leave permitted to be encashed is not reckoned for the purpose of earning privilege leave or any kind of leave.
vi!
The benefits of encashment is not admissible to8 a! &mployees on contract b! Temporary employees c! Apprentices and training d! &mployees appointed for specific periodFpro#ect. e! &mployees "ho resign or "hose services are terminated on disciplinary grounds. f! &mployees on deputation.
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 % yearEs service. 7or the purpose of determining privilege leave entitlement, period of absence on the follo"ing types of leave is count as service8 a! Casual leave
34
b! Compensatory leave i.e. day off in lieu of attending "ork on a normal DoffE day. c! Sick eave d! Quarantine eave e! Special leave granted by the 6anaging 3irector to count to"ards service f! Accident and disability leave on full day. g! Special leave for in#uries caused during sporting activities.
Sick leave8 An &mployee is eligible for sick leave of + days on half pay, "hich may
be commuted at %+ days on full pay for each calendar year. Sick leave may be accumulated upto %+ days "ith full pay for and may be availed of half pay for double the period i.e. upto )+ days. In case of permanent employee "ho have completed % year of services, it is permissible to grant the full period of sick leave i.e. + days on half pay or %+ days on full pay, at any time during the year. Temporary &mployees "ith less than a years service is eligible for grant of sick leave on prorate basis. Sick leave for period e$ceeding t"o days is supported by medical certificate from either the 6edical officer of the corporation or a medical practitioner (Allopathic! duly approved by corporation
Special Sick leave8 An employee suffering from8
a! Tuberculosis b! eprosy c! Cancer d! 5rganic heart disease re
35
corporation sub#ect to the approval of the same by the 6edical 5fficer of the Corporation. g! 5n the recommendation of the 6edical 5fficer of the Corporation, Special Sick eaves may also be granted in cases "here the employee is suffering from the follo"ing diseases or ailments or in#ury re
Systemiculus reythemetosus
0olar teritis nodose
0rogressive systemic disease
0loymycsitis
2heumatoid arthritis
@omyelinating disease
In#uries to important internal organs
Complication of fractures re
Significant diseases of the nervous system.
Special sick leave on half basics pay may be granted on prorata basis for a fraction of a year)Es service e.g. an employee "ith one and a half yearEs service is eligible for )/ days Special Sick eave.
Accident and disability leave8 A! An employee sustaining an in#ury caused by an accident arising
the course of his employment or by his illness incurred8 36
out of and in
%! during the courses and in conse
-! 3uring the period of leave granted under sub regulation (A! the employee is entitled to his full payV provided that an employee "ho is unable to resume duty after the e$piry of the leave regulation, may be granted, at the discretion of the 6anaging 3irector, an e$tension of such leave on dull pay for a period not e$ceeding 4) days, if a medical board constituted by the corporation for the purpose, recommends such e$tension. The grant of this leave is sub#ect to the condition that the accident or illness is not due to the employeesE negligence or default and that the employee obeys all instructions given by the approved 6edical Authority as to treatment during the period of absence.
Study eave8 An employee may be granted study leave by the 6anaging director at his
discretion on the merits of each case on such terms and conditions, as he may deem necessary.
Quarantine eave8 An employee may, on a
approved by the 6anaging 3irector, be granted leave of absence from duty for a period not e$ceeding '+ days. Quarantine leave is to be granted in cases of cholera, small po$, plague, diphtheria, typhus fever, cerebrospinal meniflities and measles. Quarantine leave is not admissible in cases in "hich an employee himself is suffering from an infectious disease. In such cases the employee is given the normal credit.
6aternity eave8
37
casual, sick, privilege leave at his
A female employee is eligible for grant of 6aternity eave on full pay for a period, "hich may e$tend upto %'/ days.
0aternity eave8 A male employee is eligible for grant of 0aternity eave on full pay for a period of
%/ days during the confinement of his "ife.
&$traordinary eave8 In e$ceptional circumstances to be recorded by sanctioning authority and only
"hen other leaves are not admissible under these regulations, a permanent employee or a temporary employee "ho has completed one yearEs continuous service may be granted &$traordinary eaves i.e. eave "ithout pay and allo"ances , the period of "hich shall not e$ceed + days at a time. This leave is granted at the rate of '+ days for every completed year of service. The period of this leave shall, ho"ever not 4+ days in the entire period of service e$ceed. 9o"ever, 6anaging director may on compassionate grounds permit any part or "hole of such leave to be treated as leave "ith pay debitable to the employeeEs future leave account. A temporary employee "ith less than one yearEs service is eligible for grant of e$traordinary leave under the above circumstances upto a ma$imum of %/ days. Any &mployee suffering from8
Tuberculosis
eprosy
Cancer
5rganic heart disease re
0aralysis of vascular, infective or degenerative origin affecting one or more limbs ( but not including paralysis like -allEs palsy!V 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 ovt. 6ental hospital empo"ered to issue such certificate shall be accepted by the corporation sub#ect to the approval of the same by the 6edical 5fficer of the Corporation.
38
5n the recommendation of the 6edical 5fficer of the Corporation, Special Sick eaves may also be granted in cases "here the employee is suffering from the follo"ing diseases or ailments or in#ury re
2enal (?idney failure!
9epatic (liver failure!
Chronic Corpulmonale
&mpyma theracis
Collagen diseases8
Systemiculus reythemetosus
0olar teritis nodose
0rogressive systemic disease
0loymycsitis
2heumatoid arthritis
@omyelinating disease
In#uries to important internal organs
Complication of fractures re
Significant diseases of the nervous system.
Any other ma#or illness or in#ury re
PROUCTIVITY LINE INCENTIVE
39
0I is provided for the performance of main revenue generation factors, these are8
Number of customers travel during a time period. Number of flies. 5n the basis of performance of these factors, a part of revenue is provided to its employees. According to 0I8
&mployees of same level "ill get same level of incentives. It is based on service
To maintain discipline To avoid strike, "alk*outs and other grievances. To avoid unrest conditions 0I varies year by year, and has different criteria for different for different categories of employees. In relation to 0I settlement, a memorandum of settlement forms time to time and also some agreements have been done periodically (around once in ' years!.These agreements consist all terms and conditions along "ith amount has to be paid for employees for that period. 0arties signature and "itness signature get putted at the end of the agreement. These agreements have been formed "ith eight different unions under IN3:ST2IA 3IS0:T&S ACT %)4.
40
COMPARESION OF IFFERENT AIRLINE COMPANIES 0IT! AIR INIA 3GET AIR0AYS-GETLITE-IN=FIS!ER 0IT! AIR INIA4
S.N5. 7ACT52S %
AI2 IN3IA
@&T AI2>AS
Armed force concession
Senior citi;en concession
-lind person discount
outh 7are
3ISC5:NTS8 IN3IBI3:A T2AB&&2S
Senior citi;en discount Cancer patient discount Student concession National Sports person Ar#una a"ardees Companion free scheme C52052AT&
95:S&S SC9&6&S8
Corporate Super saver Super saver scheme
Bisit India 7ares8
3iscover India*4 days pass
:nlimited Travel "ith our ' fare plans
3iscover India
A "eek filled "ith "onder, for #ust :S3 '4/
India >onder 7air
A t"o*"eek #ourney of discovery for only :S3 4/+
Spot 7air A-N A625 -ank 3ebit
Three "eeks of enchantment for only :S3 %,+++
Card
@et kids
Ame$ Cobrand Card
@et Balue 0ass
7light Specific 7ares Companion 7ree Scheme -id and 7ly IN*7I9T '
S9500IN8
Sky -a;aar
)
C9&C? Ins8
&*check in is available
/
3INNIN8
a variety of special foods
41
a variety of special foods are available on demand
are available on demand IN*7I9T 1
&NT&2TAIN6&NT8
a variety of music, %st class80ersonal
Special @etScreen
&ntertainment Appliances Audio Bedio on
music, movies, sports and much more.
3emand,in fe" aircraft class80ersonal
e*maga;ine
&ntertainment device Inbound theatre 5utbound Theatre 3I77&2&NT 4
CASS
57 S&AT&S8 5AT
7, CF@, Classes 7ri
0252A66&S8
0rogrammed customi;ation facility is
@et 0rivilege Scheme
C:ST56IWATI5N8
available
customi;ation facility is available
S.N5.
7ACT52S
%
3ISC5:NTS8 IN3IBI3:A T2AB&&2S
7, CF@, Classes 7lier
AI2 IN3IA
?IN7IS9&2
Armed force concession
roup Travel
-lind person discount Senior citi;en discount Cancer patient discount Student concession National Sports person Ar#una a"ardees Companion free scheme C52052AT&
95:S&S SC9&6&S8
Corporate Super saver Super saver scheme 3iscover India*4 days pass 3iscover India India >onder 7air Spot 7air A-N A625 -ank 3ebit Card 42
Corporate Travel Companion offer
Ame$ Cobrand Card 7light Specific 7ares Companion 7ree Scheme -id and 7ly IN*7I9T '
S9500IN8
Sky -a;aar
Air bouti
)
C9&C? Ins8
&*check in is available a variety of special foods are available on
/
3INNIN8 IN*7I9T
1
&NT&2TAIN6&NT8
demand
a variety of special foods are avai
a variety of music, %st class80ersonal &ntertainment Appliances Audio Bedio on 3emand,in fe" aircraft class80ersonal &ntertainment device Inbound theatre 5utbound Theatre
3I77&2&NT 4
CASS 57 S&AT&S8 5AT
7, CF@, Classes
0252A66&S8
7ri
C:ST56IWATI5N8
customi;ation facility is available
43
music, movies, sports and much
IT SECTION IN AIR INIA Air India has a mainframe computer to store all information "hether it is related to 3omestic or international market. This I-6 &S+++ system "orks on 3- and gather information related to number of passenger travelled, free baggage, e$cess baggage, cargo, mail, departure time, delay, cancellations etc. from every corner of the "orld. These data are entered by commercial department in on*line mode through a mask generated on daily basis. The system automatically generates messages to the stations "hich fail to report data. The information thus collected for previous day is processed in IT on daily bases and made available to the user by means of a user friendly Query system for retrieval, reference and e$traction of various pre*formatted reports based on a "ide range of options. This 6IS system provides support for 332( 3aily 3eparture 2eport! and 37IC (3elayed flight information system!. The user departments are Commercial, 7inance, 0lanning and engineering. It provides information for follo"ing
Seat factor information oad factor information Capacity utili;ation 7lights delayed and cancellation 5n time performance 2evenue 0a$ Travelled 7light uplifted
44
3aily, monthly and annual reports are also generated by the system. The database is available for previous %' months. ATA SOURCES"
Commercial department 5n*line data capture based on fill*in mask in 0SS system on daily basis. 5ff*line data (missing data! on "eekly basis. 5n*line flight schedule do"n loaded on daily basis. 6aster data maintained in system and updated as and "hen suggested by concerned
department. 3elay codes provided by engineering department. 2ate cargo, mail, e$cess baggage provided by commercial department. AFc validation table provided by commercial department. 7light sector distance provided by Commercial 3epartment. 7light sector 3istance provided by 0lanning department.
A hard copy of reports on monthly basis is send to user departments. ON-LINE BOOKING SYSTEM:
IBM
VHI
IB
ES9000 LOAD BALANCE DBP
IB
ISP
WEBSIT E
45
>hen a customer access to the "ebsite of AI2 IN3IA, through IS0 he gets connected to I-&. There are t"o IS0 and t"o I-& in the system to reduce redundancy. This I-& then connects to B9I Server. This B9I server has already stored data that a customer can access. 5n the other hand there is a 3-0 server and it contains customer data such as booking details, fairs, ticket printing. 3ata in 3-0 server is variable and changes according to customers but B9I server data does not change according to customers.
LIMITE ACCESS TO MAINFRAME"
46
IBM ESH::: MAINFRAME
SNA
8 :
V!I BP
RESOURCE ACCESS CONTROL FACILITY
This system represents access control to mainframe database. To access 6ainframe database user must contain user*id and pass"ord. This mainframe has '4)+ server and then a SNA fire"all to protect its data.
47
CORPORATE OBGECTIVES
To meet the demand for reliable, economic and efficient transport services through high standards of service customers and passengers.
To ma$imi;e the essential and strategic communications "ithin India in times of national emergencies and to be reliable second line defense.
To ma$imi;e passenger satisfaction by improving passengerFcargo services and amenities.
To enhance their period by securing a reasonable return in capital, consistent "ith Social 5b#ectives.
To foster international tourism in India and contribute to national balance of payment.
To stimulate domestic tourism and internal trade in order to broaden the Indian Air market.
To participate in the development of national aircraft and ancillary industries.
To promote good image of public sector in consonance "ith national aspirations.
48
RESEARC! MET!OOLO=Y
2esearch 6ethodology is a "ay to systematically solve the research problems. It has understood as a science of studying ho" research is being done scientifically. In it "e study the various steps that are generally adopted by a researcher in studying his research problem along "ith the logic behind them. It is necessary for the researcher to kno" not only he research methodFtechni
2esearch 3esign
3ata at a lance
3ata Collection
RESEARC! ESI=N"
A 2esearch design is purely and simply the frame"ork or plan for the guideEs collection and analy;ing of data.
49
2esearch design is a systematic "ay to achieve the desired ob#ective in a right manner. It is a blue print used to guide the future course of actions. It may be "orth"hile to mention here that a research design is nothing more than the frame"ork for the study. The 2esearch 3esign decisions happen to be in respect of8
>hat is the study aboutO >hat is the study being madeO >hat "ill the study are carried outO >hat type of data is reere can the re
TYPES OF RESEARC! ESI=N"
E+lorator* Researc1 esig)"
All marketing research pro#ects must start "ith e$ploratory research design. This is the preliminary phase and absolute in order to obtain a proper definition of problem at hand. The &$ploratory study is particularly helpful in breaking broad and vague problems in to smaller, more precise sub problem statements, helpful in the form of hypothesis for future research. escri+tie Researc1 esig)"
5ne simply describes something such as demographic characteristics of customers "ho use the products. The descriptive study is typically concerns determining fre
50
It is defined as a process "here event re
e$perimental and controls are used to identically of the sources in sub#ectEs
response.
ATA AT A =LANCE" 0rimary 3ata
Secondary 3ata
ATA COLLECTION" 5bservation 6ethod &$perimentation 6ethod Survey 6ethod
RESEARC! MET!OOLOY USE RESEARC! PROBLEM"
JTo study the strategies that AI2 IN3IA (NACI! is implementing to retain its employees and to compare C26 strategies of AI2 IN3IA (NACI! "ith other Airlines Companies. OBGECTIVES"
To study retention strategies related to &mployees. 51
To study satisfaction level of employees to"ards retention strategies.
To study C26 strategies those have been implementing for customers.
To find out the effectiveness of those C26 stratXgies.
To study C26 strategies of other Airlines companies.
To suggest best suitable C26 strategies after carefully analy;ing its policies.
To suggest areas in "hich NACI needs to improve in terms of customer services.
SAMPLE SIJE"
7ifty respondents. SAMPLE AREA"
92 and Commercial 3epartment, AI2 IN3IA (NACI!, 3elhi. SAMPLE UNIT"
&$isting employees of NACI, 3elhi. SAMPLE TEC!NIKUE"
Simple 2andom Sampling "ith modification to biased responses. RESEARC! ESI=N"
&$ploratory and 3escriptive. ATA COLLECTION"
02I6A2 3ATA8
Through Questionnaires
Through 3irect Intervie"s
S&C5N32 3ATA8
http8FF""".airindia.in
http8FF""".flyingreturns.co.in
http8FF""".google.com 52
Company agreements reports
Company brochures, Statements Circulars.
ATA
ANALYSIS
FOR
EMPLOYEE6S RESPONCES" ?. FreDue)cies" Statistics
7rom ho" long are you "ith NACIO N
Balid 6issing
/+ +
Fro$ 1o; lo)g are *ou ;it1 NACIL2
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
ess than t"o yeares T"o to Si$ years
).+
).+
).+
'
1.+
1.+
%+.+
Si$ to t"elve years
4
%).+
%).+
).+
6ore than T"elve years
'
41.+
41.+
%++.+
Total
/+
%++.+
%++.+
53
. FreDue)cies" Statistics
Are you satisfied "ith >elfare policies and 0I scheme of NACIO N
Balid 6issing
/+ +
6ean
%.'1++
Are *ou satis&ie' ;it1 0el&are +olicies a)' PLI sc1e$e o& NACIL2
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
&S N5
'
1).+
1).+
1).+
%
'1.+
'1.+
%++.+
Total
/+
%++.+
%++.+
54
8. FreDue)cies" Statistics
are you dssatisfied "ith less leavesO N
Balid 6issing
/+ +
6ean
.++++
are *ou 'ssatis&ie' ;it1 less leaes2
Cumulative Balid
no
7re
0ercent
Balid 0ercent
0ercent
/+
%++.+
%++.+
%++.+
55
. FreDue)cies"
Statistics
are you dssatisfied "ith more "orking houresO N
Balid 6issing
/+ +
6ean
.++++
are *ou 'ssatis&ie' ;it1 $ore ;or7i)g 1oures2
Cumulative Balid
no
7re
0ercent
Balid 0ercent
0ercent
/+
%++.+
%++.+
%++.+
56
. FreDue)cies"
Statistics
are you dssatisfied "ith less remunirationO N
Balid 6issing
/+ +
6ean
%.++
are *ou 'ssatis&ie' ;it1 less re$u)eratio)2
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
yes no
1
%.+
%.+
%.+
))
.+
.+
%++.+
Total
/+
%++.+
%++.+
57
9. FreDue)cies"
Statistics
are you dssatisfied "ith lack of personal touchO N
Balid 6issing
/+ +
6ean
%.)++
are *ou 'ssatis&ie' ;it1 lac7 o& +erso)al touc12
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
yes no
%1.+
%1.+
%1.+
)
).+
).+
%++.+
Total
/+
%++.+
%++.+
58
. FreDue)cies"
Statistics
are you dssatisfied "ith "orking environmentO N
Balid 6issing
/+ +
6ean
%.+++ are *ou 'ssatis&ie' ;it1 ;or7i)g e)iro)$e)t2
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
yes no
%+
+.+
+.+
+.+
)+
+.+
+.+
%++.+
Total
/+
%++.+
%++.+
59
. FreDue)cies" Statistics
:p to "hat e$tent are you satisfied retention programs(0I >elfare!O N
Balid 6issing
6ean
) % '.++++
U+ to ;1at ete)t are *ou satis&ie' rete)tio) +rogra$s3PLI 0el&are42
Cumulative Balid
6issing Total
7re
0ercent
Balid 0ercent
0ercent
3issatisfied Some"hat Satisfied
%1.+
%1.'
%1.'
''
11.+
14.'
'.4
9ighly Satisfied
%1.+
%1.'
%++.+
Total
)
.+
%++.+
System
%
.+
/+
%++.+
60
o gs is i H. FreDue)cies"
Statistics
3o your suggeestions and complaints get attentionO N
Balid 6issing
6ean
/+ + ./)++
o *our suggeestio)s a)' co$+lai)ts get atte)tio)2
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
Never Sometimes
%.+
%.+
%.+
%)
.+
.+
)1.+
7re
%
'1.+ %.+
'1.+ %.+
.+ %++.+
Al"ays
61
Total
/+
%++.+
%++.+
r lr ?:. FreDue)cies"
Statistics
Scholarship N
Balid 6issing
6ean
)/ / .114 Sc1olars1i+
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
0oor 7air
%)
.+
'%.%
'%.%
%+
+.+
.
/'.'
ood
%1
'.+
'/.1
.
&$cellent
/
%+.+
%%.%
%++.+
Total
)/
+.+
%++.+
62
6issing
System
Total
/
%+.+
/+
%++.+
r ilt
??. FreDue)cies"
Statistics
Air passage N
Balid 6issing
6ean
) % '.++) Air +assage
Cumulative Balid
6issing
7re
0ercent
Balid 0ercent
0ercent
0oor Not bad
)
.+
.
.
4
%).+
%).'
.)
ood
)).+
)).
14.'
&$cellent
%1
'.+
'.4
%++.+
Total
)
.+
%++.+
System
%
.+
63
Total
/+
%++.+
r li ?. FreDue)cies"
Statistics
9ousing Colonies N
Balid 6issing
6ean
) .44+
!ousi)g Colo)ies
Cumulative Balid
0oor
7re
0ercent %.+
Balid 0ercent %./
64
0ercent %./
6issing
7air
%.+
%.
'%.'
ood
'
)1.+
)4.
4.
&$cellent
%+
+.+
+.
%++.+
Total
)
1.+
%++.+
System
).+
/+
%++.+
Total
r ilt ?8. FreDue)cies" Statistics
9oliday 9omes N
Balid 6issing
6ean
) % .1'
!oli'a* !o$es
Cumulative Balid
0oor 7air
7re
0ercent
Balid 0ercent
0ercent
/ %
%+.+ ).+
%+. )./
%+. ').4
65
6issing
ood
/
/+.+
/%.+
/.4
&$cellent
4
%).+
%).'
%++.+
Total
)
.+
%++.+
System
%
.+
/+
%++.+
Total
r ilt ?.FreDue)cies"
Statistics
6edical 7acilities N 6ean
Balid 6issing
/+ + '.1++
Me'ical Facilities
66
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
0oor 7air
).+
).+
).+
)
.+
.+
%.+
ood
'
)1.+
)1.+
/.+
&$cellent
%
).+
).+
%++.+
Total
/+
%++.+
%++.+
r lt
?.FreDue)cies"
Statistics
roup Insurance N
Balid 6issing
6ean
)/ / .114
=rou+ I)sura)ce
67
Cumulative Balid
6issing
7re
0ercent
Balid 0ercent
0ercent
0oor 7air
%%
.+
).)
).)
%)
.+
'%.%
//.1
ood
%4
').+
'4.
'.'
&$cellent
'
1.+
1.4
%++.+
Total
)/
+.+
%++.+
System
/
%+.+
/+
%++.+
Total
r ilt ?9.FreDue)cies"
Statistics
ong Service 6ementos N 6ean
Balid 6issing
/+ + .'++
68
Lo)g Serice Me$e)tos
Cumulative Balid
7re
0ercent %).+
Balid 0ercent %).+
0ercent %).+
%
'.+
'.+
/.+
ood
)).+
)).+
1.+
&$cellent
).+
).+
%++.+
Total
/+
%++.+
%++.+
0oor fair
rr l
?.FreDue)cies" Statistics
7inancial Assistance for higher Studies N 6ean
Balid 6issing
/+ + .4++
Fi)a)cial Assista)ce &or 1ig1er Stu'ies
69
Cumulative Balid
7re
0ercent ).+
Balid 0ercent ).+
0ercent ).+
%4
').+
').+
'.+
ood
)
).+
).+
1.+
&$cellent
4
%).+
%).+
%++.+
Total
/+
%++.+
%++.+
0oor fair
r lt ?.FreDue)cies"
Statistics
70
7astival Advance N
Balid 6issing
6ean
/+ + .1+++
Fastial A'a)ce
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
0oor fair
%1.+
%1.+
%1.+
%%
.+
.+
'.+
ood
)
).+
).+
1.+
&$cellent
4
%).+
%).+
%++.+
Total
/+
%++.+
%++.+
r lt ?H.FreDue)cies"
Statistics
71
7acilities provided after death N
Balid 6issing
6ean
) .4%4
Facilities +roi'e' a&ter 'eat1
Cumulative Balid
6issing Total
7re
0ercent
Balid 0ercent
0ercent
0oor fair
'
1.+
1.'
1.'
%.+
%.
/.+
ood
'%
1.+
1).1
.1
&$cellent
/
%+.+
%+.)
%++.+
Total
)
1.+
%++.+
System
).+
/+
%++.+
r lit 72
:.FreDue)cies"
Statistics
2etierment gifts N
Balid 6issing
6ean
/+ + .)++
Retier$e)t gi&ts
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
0oor fair
1
%.+
%.+
%.+
+
)+.+
)+.+
/.+
ood
%
).+
).+
).+
&$cellent
'
1.+
1.+
%++.+
Total
/+
%++.+
%++.+
r lt
?.FreDue)cies" 73
Statistics
Community center N
Balid 6issing
6ean
) ./)%4
Co$$u)it* ce)ter
Cumulative Balid
6issing Total
7re
0ercent
Balid 0ercent
0ercent
0oor fair
)
.+
.'
.'
%
'.+
'.1
)4.
ood
+
)+.+
)%.4
.1
&$cellent
/
%+.+
%+.)
%++.+
Total
)
1.+
%++.+
System
).+
/+
%++.+
74
r ilt .FreDue)cies"
Statistics
3ifferent type of leaves N
Balid 6issing
6ean
/+ + '.+++
i&&ere)t t*+e o& leaes
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
fair ood
1
%.+
%.+
%.+
')
1.+
1.+
+.+
&$cellent
%+
+.+
+.+
%++.+
Total
/+
%++.+
%++.+
75
r 8.FreDue )cies"
Statistics
0roductivity ink Incentives N
Balid 6issing
6ean
/+ + .1+++
Pro'uctiit* Li)7 I)ce)ties
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
0oor fair
/
%+.+
%+.+
%+.+
%1
'.+
'.+
).+
ood
'
)1.+
)1.+
.+
&$cellent
1
%.+
%.+
%++.+
Total
/+
%++.+
%++.+
76
r lt .FreDue)cies" Statistics
Age of the respondents N
Balid 6issing
6ean
/+ + '.%++
Age o& t1e res+o)'e)ts
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
% to / / to '/
%
.+
.+
.+
4
%).+
%).+
%1.+
'/ to )/
)
).+
).+
1).+
)/ and above
%
'1.+
'1.+
%++.+
Total
/+
%++.+
%++.+
77
+ .FreDue)cies"
Statistics
3esignation N
Balid 6issing
6ean
/+ + %.+++
esig)atio)
Cumulative Balid
7re
0ercent
Balid 0ercent
0ercent
Top level 6iddle level
%+
+.+
+.+
+.+
)+
+.+
+.+
%++.+
Total
/+
%++.+
%++.+
78
79
FININ=S AN ANALYSIS !YPOT!ESIS TESTIN="
ess attention on complaints and suggestions, less "ill the level of satisfaction.
Correlatio)s"
3o
your
suggestions
3o
and
:p to "hat e$tent are you satisfi
complaints
retention
get attentionO
>elfare!O
your 0earson
suggeestions
and Correlation
complaints
get
%
./%/(YY!
Sig. (*tailed!
.+++
N
/+
)
./%/(YY!
%
attentionO
:p to "hat e$tent 0earson are
you
satisfied Correlation
retention programs(0I
80
programs(0I
>elfare!O Sig. (*tailed!
.+++
N
)
)
Correlation at .+% level of significance. This hypothesis says that 0 is less than .+% so analysis is true because if 0 is greater than level of significance, null hypothesis cannot be re#ected. So in the given case alternate hypothesis cannot be re#ected.
CONCLUSION
Aviation Industry in India is one of the fastest gro"ing aviation industries in the "orld. >ith the liberali;ation of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. In this era "here people "ant to get more and more facilities, AI2 IN3IA is here "ith its full carrier airline services. AI2 IN3IA is providing all possible services and policies for all its customers and employees. -ut still the market share of this company is going do"n day by day. In the first hen I asked about attention to"ards complaints and suggestion '1= said fre
RECOMMONATIONS As most of the employees find 2etirement gifts poor, so I "ant to suggest modifying it. roup Insurance and community centre should also be communicated among employees because I find that most of the employees are una"are "ith it.
82
Thus "hat I "ant to suggest that Air India should market all those facilities "hich are being provided by the company to its employees. In this "ay employees "ill reali;e "hat their company is giving to them and they "ill feel a sense of responsibility to"ards it. I donEt find as such any big problem "ith this company e$cept lack of motivation. So company should "ork in this direction. 5ne thing for policy makers that they should assign task to employees "ith a deadline connected "ith 0I. I "ant to suggest something to Commercial department related to the scheme of corporate houses. Currently for different corporate houses "e have a discount scheme that "e revise on yearly basis. &very year ne" agreements form "ith ne" terms and conditions and rate of discount, depending on the bargaining po"er of business house and company. >e treat every customer in a same manner "hether it is "ith us from past one year or %/ years. >e should change the "ay of treating different customers, especially those "ho have been given a huge profit from last so many years. 7or this "e can have something like -&ST C:ST56&2 57 T9& &A2 or may be of three years. To give them honor "e can display something about them in our in*flight maga;ine, this "ill be a both "ay beneficial decision. Same a"ard treatment "e can do "ith employees to motivate them.
83
LIMITATION
&very research study has certain limitations. These could be due to sample si;e, sampling techni
%. As the sub#ect under study involves large population si;e so generali;ations canEt be made. .
3ue to time and financial constrains the study is restricted to Northern region.
'. Sometimes respondents give altogether biased ans"ers in responding to the different
Still every effort has been employed in order to reduce the impact of these limitations.
84
BIBLIO=RAP!Y
BOOS"
?othari C.2., 2esearch 6ethodology Ne" Age International (0! td., ++/
6alhotra N.?., 6arketing 2esearch 0rentice 9all, 0earson &ducation, ++4
?otler
?eller,
A South Asian 0erspective, ++4 upta S.0., -usiness Statistics Sultan Chand Sons, ++/ MA=AJINES"
S>AAT, in flight maga;ine of AI2 IN3IA. @une ++. 02&SSI5NS, in flight maga;ine of @etlite. 6ay ++ Namaskaar, in flight maga;ine of AI2 IN3IA. 0EBSITES"
http8FF""".airindia.in http8FF""".flyingreturns.co.in http8FF""".google.com
85
6arketing
6anagement
APPENICES KUESTIONNAIRE
Note8 I am a summer trainee under NACI, 3elhi, and this survey is the part of my study. I "ill be highly grateful if you "ould ans"er the follo"ing
%. 7rom ho" long are you "ith NACIO
€
ess than T"o years
€
T"o to Si$ ears
€
Si$ to T"elve ears
€
6ore than T"elve ears
€ . Are you satisfied "ith "elfare policies and 0I scheme of NACIO
€
es
€
No
86
(If no then move to Q N5.', if yes then move to Q N5.)! '. >hat is the reason of dissatisfactionO
€
ess leaves
€
6ore "orking hours
€
ess remuneration
€
ack of personal touch
). :p to "hat e$tent are you satisfied "ith these programsO
€
9ighly dissatisfied
€
3issatisfied
€
Some"hat satisfied
€
9ighly satisfied
/. 3o your suggestions and complaints get attentionO
€
Al"ays
€
7re
€
Sometimes
€
Never
1. 0lease, rate them according to your preference8
87
Policies
Ecelle)t
=oo'
Fair
Scholarships Air 0assage 9ousing Colonies 9oliday 9omes 6edical 7acilities roup
insurance
scheme ong
Service
6ementos 7inancial Assistance
for
higher studies 7estival Advance 3eath
-enefit
society 2etirement ifts Community centers 3ifferent type of leaves 0roductivity ink Incentives
4. Any Suggestion (s!O
Perso)al etails"
88
Poor
