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Comparative Study Of

Promotional Schemes ofIndian Airlines with theircompetitors

Kirti Dhingra

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Objectives of the Study

To study the Promotional Schemes ofIndian Airlines and compare them withtheir competitors

To study the structure and designing ofdifferent promotional schemes

Suggesting different techniques to enhancethe existing schemes

Recommending new ideas of promotionalschemes and fares

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Emergence of PromotionalSchemes In Indian Airlines Industry

Liberalization

Civil Aviation Policy

Air Corporations (Transfer ofUndertaking and Repeal) Act, 1994

Private Carriers

Low Cost Carriers Competition

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Starting point of promotional offersin Indian

In 1992, department of Sales & Promotions

First, strategy was Frequent FlyerProgrammes

In 1993, Jet Airways and Air Sahara In 2002, unprecedented development in

the commercial aviation industry in India.

Jet Airways-'Everyone Can Fly

Indian-'U Can Fly Air Sahara-'Steal a Seat'

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Promotional Schemes?

Sales promotions

Marketing communications employed

for a pre-determined, limited time toincrease customer demand, stimulatedemand or improve productavailability

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Objectives of PromotionalSchemes

Building Brand Equity

Building Consumer Loyalty

Increase in Market Share Increase in Revenue

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Promotional Schemes/Fares ofIndian

Schemes

IA-ABN AMRO BankDebit Card

Super Saver Utsav Plus

Corporate Super Saver IA-Amex Co-brand Card Flying Returns IA Packages Surf-n-Save Bid & Fly Platinum Card i-mint Coalition loyalty

Programme

Fares

Easy Fares

Unchecked Fares

Spot fares

Indian Family Fares

Economy premium faresfor travel in Executive

class Apex-fare (14 Date

Slab)

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Promotional Schemes/Fares of JetAirways

Schemes

Jet Escapes

Jet AirwaysCitiBank CreditCards

Jet Elite Surprises

JP Offer Companion Free

Offer

Fares

Concessional Fare

One Fare

Advance PurchaseWeb Fares

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Coupon Schemes

Indian ( Super Saver)

4 & 8 coupon packagein economy & Executive

class with optionalcoupons of 2 & 4respectively

Validity period 4 to 8months

Price per coupon for 8coupon scheme is morein Indian

Jet Airways (One fare)

6 & 8 coupons ineconomy and premiereclass with no optionaladvantage

Validity period 3 to 4months

Jet price is Rs1051.25

less than for economyand Rs326.25 less forbusiness class

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Cntd

Indian offers 12 & 20 Coupons ineconomy and executive class in

Corporate Super Saver Scheme

Jet offers 6 & 8 for Premiere class and12 & 16 for Economy class in CorporateOne Fare Scheme

For economy class, price/coupon is lessfor Indian and for business class it ismore as comparison to Jet Airways

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Joint Promotions-Co-brand cards

Indian has a tie-upwith AmericanExpress Bank

(Credit Card) andABN Amro Bank(Debit Card)

It offers in 3

category Gold,Silver and Green

Jet Airways has atie-up with CityBank (Credit Card)

It has 2 categoryGold & Silver

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Features of Co-brand Cards

Discounts on tickets

Free FFP Membership

Discount on other promotionalSchemes

Upgrade Vouchers

Accident Insurance

Bonus Miles Extra Baggage Allowance

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Contest Schemes

Jet Airways-Jet Elite Surprises

Kingfisher-Cheer@HomeContest

Air Deccan-SMS Contest

Indian-Fly Indian Get Haier

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Apex (Advance purchase Excursion)FareFactors of Comparison

Date Slab- IA (D-14) and Jet (D-10,D-15, D-20 & D-25)

Sectors- IA (145) and Jet (33)

FFP Points

Free Baggage Allowance

Journey

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Holiday Packages

On the basis comparison of differentfeatures and fare, Indian offers bestholiday Packages as compare to JetAirways with stable validity period.

On average basis Jet charge morethan Indian

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Companion Scheme

Indian and Kingfisher offers 50%discounts on full fare business classfor companion and Jet offers 100%on special fare

Having more sectors availability inscheme ,Indian has a big advantage

on both Jet and kingfisher.

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Exclusive Schemes of Indian

Platinum card

I-mint coalition loyalty programme

Easy fares Unchecked fares

Spot fares

Economy Premium Fares for travel inExecutive class and Bid & Fly

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Recommendations

Databased Marketing

Relationship Marketing

Weekend Schemes

Free Baggage Allowance for Students indomestic flights

Escort Free

Booking through Debit Cards Marketing through Travel agents

Inflight Marketing (Contest Schemes)

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Conclusion

Competition is the major factor to bringPromotional Schemes/fares as an importantmarketing tool to attract customers. Now,Indian Airline industry is gaining momentum to

stable its position through fleet expansion andmerger & acquisition. Recently, Indian mergedwith Air India and became the part of a singleentity, National Aviation Company Ltd and itsimpact on the promotional offers of Indian canbe seen in the coming few months.