Research paper on crisis of kingfisher Airline
in rational decision making model
Submitted To: - Prof. Roopa Rao
Submitted to:- Hiral Thummar Vimal Patel Sharad Dudhat Mehul Dudhat Jatin Jodhani Group Name: - Creative
Introduction Of aviation Industry
The first commercial flight in India was made on February 18, 1911, when a French pilot Monsignor Piquet flew airmails from Allahabad to Naini, covering a distance of about 10 km in as many minutes.
I. Indian Aviation Sector (till 1986): -
In December 1912, the first domestic air route was unwrapped between Delhi and Karachi by the Indian State Air Services (in collaboration with Imperial Airways of the UK). This marked a new beginning in India. Then countries’ first air mail service was started by the Tata Airlines in 1912. Although Tata Airlines was started as an air mail service but later it endeavored in carrying scheduled passenger traffic. Tata Airlines was renamed as Air India in 1946. In early 1948, a joint sector company, Air India International Ltd., was established by the Government of India and Air India (earlier Tata Airline). There were eight companies were in service within and outside the country at the time of independence, namely Tata Airlines, Indian National Airways, Air service of India, Deccan Airways, Ambica Airways, Bharat Airways and Mistry Airways. In 1950, the Government formed an Air Traffic Enquiry Committee to consider the problems of the airlines industry. Some problems faced by the airline industry at that time included, the towering prices of aviation fuel, mounting salary bills and disproportionately large fleets. The financial health of companies declined even with liberal Government support, particularly from 1949, and an upward trend in air cargo and passenger traffic. Accordingly, two self-governing corporations were created on August 1, 1953. In 1953, the government nationalized the airlines via the Air Corporations Act, 1953, which gave birth to Indian Airlines and Air India. Air India became the single Indian carrier to operate on international itinerary excluding some routes to the neighboring countries which were given to Indian Airlines.
II. Industry from 1986-2003
The second phase of the sector began in the year 1986. In this period, the private sector players were granted permission to operate as air taxi operators. In 1994, government of India revoked the Air Corporation Act. Consequently, in 1995, government granted scheduled carrier status to six private air taxi operators. Eventually, by 1998, at least six private airlines, East- West, Modi-Luft, NEPC, Damania, Gujarat Airways and Span Air were closed and according to an estimate, the capital losses implicated after these closures were to the tune of Rs 10 billion. III. Airline industry from 2003 – 2006
By 2003, only two private carriers survived to see the sunrise of the new century, i.e. Jet and Sahara. But the duopoly of Jet and Sahara as private carrier was challenged in 2003 by Air Deccan. Air Deccan gave India its first Low Cost Carrier (LCC) or no frills Airline which was a turning point in the history of Indian Aviation Sector. With the arrival of Deccan, reformation and innovation began in the aviation sector. Air traffic since then had tremendous growth rates. The figure shown below indicates the growth in passenger volumes,On witnessing the success of LCC Model, other airlines also started to operate in the sector and opted for No-Frill Model. These...