Chapter 1: Introduction
1.1 Overview of the Aviation Industry
The aviation industry is one of the most dynamic and influential sectors in the global
economy. It has transformed the way people travel, conduct business, and connect with
different cultures across continents. Air transport is often considered the backbone of
globalization because of its ability to reduce distances, save time, and facilitate trade
and tourism. Over the years, civil aviation has not only served as a means of passenger
transportation but has also played a critical role in freight movement, military
operations, and economic development.
Globally, the industry is structured around scheduled carriers, chartered flights, cargo
operators, and low-cost carriers. With rising globalization, air travel demand has shown a
consistent growth pattern, driven by income growth, urbanization, and technological
innovations.
In the Indian context, aviation has moved from being a luxury mode of transport to an
affordable service for the middle-class population. India’s air passenger traffic has grown
exponentially, supported by liberalization, increasing disposable income, and the entry
of private airlines such as IndiGo, SpiceJet, and Vistara. Today, India is among the top
five aviation markets in the world and is projected to reach the third position by 2030.
1.2 Evolution of the Aviation Industry
1.2.1 Global Evolution
The global aviation industry traces its roots to the Wright brothers’ flight in 1903,
marking the birth of powered human flight. Post World War I, aviation grew rapidly with
governments recognizing the potential of air transport. By the 1930s, commercial
airlines such as KLM (Netherlands), Lufthansa (Germany), and Pan American Airways
(United States) were already operational.
The post-World War II era was a turning point: surplus military aircraft, advanced
technology, and trained pilots became available for civil use. The introduction of jet
aircraft in the 1950s revolutionized travel, making long-haul journeys faster and more
comfortable. The establishment of the International Air Transport Association (IATA) in
1945 provided a regulatory framework for international operations.
In the late 20th century, the industry witnessed deregulation and liberalization—
especially in the United States in 1978—which led to increased competition, lower fares,
and the rise of low-cost carriers (LCCs). By the 2000s, global aviation was characterized
by alliances (Star Alliance, SkyTeam, Oneworld), sophisticated safety systems, and the
integration of digital technology.
1.2.2 Evolution of Aviation in India
India’s aviation journey began in 1932 when J.R.D. Tata piloted the first Tata Airlines
flight, which later became Air India. Post-independence, the Government of India
nationalized air transport in 1953, creating Indian Airlines (domestic) and Air India
(international). For decades, the industry was under government control, with limited
competition and high fares.
The 1990s economic liberalization changed the landscape by opening doors to private
participation. Airlines such as Jet Airways, Sahara Airlines, and later low-cost carriers like
IndiGo (2006) entered the market. These entrants democratized air travel by offering
affordable fares and no-frill services.
Recent decades have seen massive expansion, with India building modern airports (Delhi
T3, Hyderabad, Bengaluru), adopting digital technologies, and encouraging foreign direct
investment (FDI). With rising domestic traffic and international connectivity, India is now
considered one of the fastest-growing aviation markets globally.
1.3 Milestones in Aviation
Global Milestones
1903: Wright brothers’ first flight.
On December 17, 1903, Orville and Wilbur Wright achieved the first successful,
controlled, and sustained powered flight in a heavier-than-air aircraft near Kitty Hawk,
North Carolina. Orville piloted the first flight, which lasted 12 seconds and covered 120
feet.
Their success was the result of years of methodical research and testing. Key to their
achievement was the invention of a three-axis flight control system (controlling roll,
pitch, and yaw), which remains the basis of all aircraft control today. They also designed
and built their own lightweight engine.
This monumental breakthrough demonstrated the possibility of controlled flight and laid
the foundation for the entire modern aviation industry. The legacy of their invention
continues, even symbolically connecting the first flight on Earth to the first powered
flight on Mars in 2021.
1944: Chicago Convention established the International Civil Aviation
Organization (ICAO).
The Chicago Convention (Convention on International Civil Aviation), signed in 1944 by
52 countries, established the fundamental legal framework for global civil aviation. Its
primary purpose was to promote international cooperation and ensure the safe and
orderly development of air travel after World War II.
A key principle established was that every country has complete sovereignty over its
airspace. The convention also led to the creation of the International Civil Aviation
Organization (ICAO), a UN specialized agency.
Today, ICAO's core function is to manage and harmonize global aviation by establishing
international Standards and Recommended Practices (SARPs). It also coordinates
between member states, promotes aviation safety and security through audits, and
works on environmental sustainability.
1952: First commercial jet flight (De Havilland Comet).
On May 2, 1952, the De Havilland Comet made the world's first commercial jet flight
for the British Overseas Airways Corporation (BOAC), ushering in the jet age for civil
aviation. It represented a massive technological leap, offering passengers a faster,
smoother, and more comfortable flying experience than propeller-driven aircraft.
However, its pioneering success was short-lived. A series of tragic crashes led to the
discovery of a critical design flaw: metal fatigue caused by its square windows. The
entire fleet was grounded for a major redesign.
Though competitors like Boeing ultimately dominated the market, the Comet's legacy is
profound. The lessons learned from its failures led to fundamental changes in aircraft
design and safety standards, making all future jet travel safer.
1978: Deregulation Act in the US, boosting competition.
The Airline Deregulation Act, signed into law
on October 24, 1978, by President Jimmy
Carter, removed federal government control
over airline routes, fares, and the entry of
new carriers. The legislation aimed to replace
a system of government-mandated controls
with a free-market approach, leading to a
significant increase in competition.
1990s: Rise of low-cost carriers globally.
The 1990s marked the global expansion of
low-cost carriers (LCCs), a movement fueled
by airline deregulation in various regions. This
was especially prominent in Europe, where
the liberalization of the aviation market in the
mid-1990s gave rise to major players
like Ryanair and easyJet. These companies,
2000s: Formation of global alliances; digital booking systems.
The 2000s were a pivotal decade for the airline
industry, marked by the maturity of global airline
alliances and the widespread adoption of digital
booking systems. The first airline alliance, Star
Alliance, was founded in 1997, the 2000s
solidified the dominance of the three major
groups through expansion and consolidation.
The 2000s saw a transformative shift from
traditional reservation methods to digital
platforms, empowering travelers with direct
control over their bookings.
2020s: Post-COVID digital acceleration, focus on sustainability.
The 2020s have been defined by a twin
transformation in the airline industry, fueled
by the COVID-19 pandemic: an accelerated
shift toward digital systems and an
intensifying focus on sustainability. The
pandemic exposed vulnerabilities in old
operating models, prompting airlines to
invest in technology for efficiency and
health safety, while growing public and
regulatory pressure forced a renewed
commitment to environmental
responsibility.
Indian Milestones
1932: First Tata Airlines flight.
On October 15, 1932, J.R.D. Tata, a pioneering
aviator who held India's first commercial pilot's
license, piloted the inaugural flight of Tata Airlines.
Flying a single-engine De Havilland Puss Moth
carrying airmail, he traveled from Karachi to
Bombay, with a refueling stop in Ahmedabad.
This historic flight marked the beginning of civil
aviation in India. The airline he founded was later
nationalized to become Air India. The story came full
circle nearly 70 years later when the Tata Group
reacquired Air India in 2022.
1953: Nationalization of airlines (Air India & Indian Airlines).
In 1953, the Indian government nationalized the
airline industry by passing the Air Corporations Act.
This was done to prevent the financial collapse of
struggling private airlines, ensure service to remote
areas, and align with Prime Minister Nehru's socialist
policies. The act merged eight domestic airlines into
the state-owned Indian Airlines for domestic travel
and created Air India International for overseas
routes. This gave the government a complete
monopoly over scheduled air transport. While the
move initially brought stability, it eventually led to
inefficiencies and financial losses. The act was
repealed in 1994, ending the monopoly. Decades
later, the story came full circle when Air India was
privatized and sold back to its original founders, the
1994: Open-sky policy introduced.
In 1994, as part of India's economic liberalization, the government introduced the "Open
Sky Policy." This pivotal reform ended the state monopoly on domestic air travel by
repealing the 1953 Air Corporations Act.
The policy allowed private Indian airlines to operate scheduled services, which spurred
competition, lowered fares, and made air travel more accessible. It also permitted
foreign investment (up to 49%) to infuse capital and technology into the sector.
The long-term impact was transformative: it led to a significant increase in passenger
traffic, expanded routes, and laid the foundation for the successful low-cost carrier
model that emerged in the 2000s. This policy was a key component of India's broader
shift away from state-dominated industries toward market forces.
2003–2006: Entry of low-cost carriers like Air Deccan and IndiGo.
In the mid-2000s, the entry of low-cost carriers (LCCs) like Air Deccan (2003) and IndiGo
(2006) fundamentally reshaped India's aviation sector, a transformation made possible
by the 1994 "Open Sky" policy.
Air Deccan, India's first LCC, pioneered the no-frills model with ultra-low fares and
by connecting smaller cities, proving the viability of budget air travel for the
masses.
IndiGo succeeded through a disciplined strategy focused on operational
excellence, punctuality, and a streamlined fleet, growing to become India's
dominant airline.
Their combined impact democratized air travel, making it accessible to the middle class
and shifting passengers from railways. This triggered intense competition and price
wars, ultimately leading to market consolidation and establishing the low-cost model as
a permanent and powerful force in Indian aviation.
2008: Opening of world-class airports (Delhi T3, Hyderabad, Bengaluru).
2016: UDAN scheme for regional connectivity.
2020–22: Rapid recovery post-COVID with focus on safety and technology.
1.4 Basic Theoretical Aspects of Aviation and Customer Service
Airline operations rest on two key aspects: operational efficiency and customer
satisfaction. Theoretical models such as SERVQUAL (Service Quality Model) and Kano’s
Model of Customer Satisfaction are often applied in aviation to understand passenger
expectations.
SERVQUAL Model: Focuses on five dimensions—tangibles, reliability, responsiveness,
assurance, and empathy.
Kano Model: Divides customer needs into basic, performance, and excitement factors.
For airlines, punctuality and safety are basic needs; digital check-in is performance-
related; while luxury lounges may be excitement factors.
In the low-cost carrier (LCC) context, customer service is delivered with a focus on cost
minimization and punctuality, rather than luxuries. IndiGo Airlines, for example,
emphasizes "On-Time Performance" as its core service promise.
1.5 Macro Scenario: Global Aviation
Globally, aviation contributes over $3.5 trillion to GDP (about 4% of global GDP) and
supports more than 65 million jobs. North America, Europe, and Asia-Pacific are the
largest markets. The COVID-19 pandemic caused an unprecedented crisis, with airlines
losing billions, but recovery has been swift due to rising leisure and business travel.
Trends shaping the global industry include:
Digitalization (self-service kiosks, biometrics, AI chatbots).
Sustainability (biofuels, carbon offsetting, electric aircraft prototypes).
Increased demand in emerging markets (China, India, Southeast Asia).
Airline alliances and code-sharing for global reach.
1.6 Micro Scenario: Indian Aviation
India has emerged as the third-largest domestic aviation market in the world. According
to DGCA reports, domestic air passenger traffic crossed 150 million in 2023, showing
strong recovery from the pandemic. IndiGo holds the largest market share (over 55%),
followed by Air India, Vistara, and SpiceJet.
Key characteristics of Indian aviation:
Dominance of low-cost carriers (IndiGo, SpiceJet, Akasa Air).
Increasing focus on regional connectivity under UDAN scheme.
Infrastructure development (modern airports, smart terminals).
Rise in digital ticketing and mobile-based services.
Competition driving affordability for middle-class travelers.
Challenges include high fuel costs, infrastructure bottlenecks, and global competition.
However, with rising incomes and government support, India’s aviation market is poised
for long-term growth.
1.7 Relevance of Customer Service in Aviation
Customer service is the core differentiator in the airline industry. While price and
schedules matter, passengers often judge airlines on how they are treated during the
entire journey. Efficient check-in, polite staff, in-flight comfort, punctuality, and baggage
handling all shape passenger perceptions.
For low-cost carriers like IndiGo, customer service focuses on efficiency and consistency,
rather than luxury. IndiGo’s strategy—“On-time, Affordable, Courteous, Hassle-free”—
shows how operational excellence becomes a tool for customer satisfaction.
1.8 Objectives of the Study
To analyze customer service practices in operational areas of IndiGo Airlines.
To examine the relationship between operational efficiency and customer satisfaction.
To identify strengths and weaknesses in IndiGo’s service model.
To suggest improvements in service delivery and passenger experience.
1.9 Scope and Limitations of the Study
Scope:
Focuses on customer services in operational areas (check-in, boarding, in-flight, baggage
handling, digital experience).
Based on primary data (surveys/interviews) and secondary data (reports, websites,
journals).
Limited to IndiGo Airlines within the Indian aviation industry context.
Limitations:
Sample size may not represent all passengers.
Data availability may be restricted.
Study limited to short duration and resources.
1.10 Conclusion
The aviation industry has evolved as one of the most dynamic industries globally and in
India. With its rapid growth, increasing affordability, and digital transformation, aviation
is reshaping the mobility experience. However, customer service remains the critical
success factor in sustaining competitive advantage. For IndiGo Airlines, maintaining
punctuality and efficiency while adapting to changing passenger needs will be vital.
This study, therefore, seeks to explore how IndiGo manages its customer service in key
operational areas and how this impacts passenger satisfaction.
