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( ISSN – 2581-5857 )
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ANALYSIS OF INTERNATIONAL AIR TRASPORT
(MUMBAI INTERNATIONAL AIRPORT)
Padma Patil, Dr. Vijesh Kumar
Asst. Prof.
Degree College of Arts, Commerece & Science
Thane -West
Research Scholar
Singhania University Pacheri Bari,
Jhunjhunu (Raj.), India
Singhania University, Pacheri Bari,
Jhunjhunu (Raj.), India
Abstract
In operation research Inventory management is an important function to any business, marketing, since
inadequacies in control can result in serious and important problems. If the inventory not managed properly then it
will be problematic in satisfaction of customers or curtailment of working capital will result and production, seat
inventory, loss.
Last few decades on the changes within revenue management due to not use inventory management system. These
changes are fundamental with many airlines they adopting new concepts such as bid price and origin and
destination. These changing concepts have essentials airlines to look at their inventory management systems, as it
is these systems that will actually implement the airlines chosen methodologies. But while revenue management has
undergone change, inventory management, which is a key component of revenue management, has remained fairly
static. Airline companies concentrate on optimization of the booking process in the reservations of seats with the 3
pillars of decision making: the right time, the right conditions and the right fare for a future flight for customer’s
satisfactions.
Key words: Overbooking Seats, Customer Satisfaction, Reduce the travelling cost, profitability, low customer
charges
INTRODUCTION
The global airline industry provides a good service to virtually every country in the world, and has played an
integral role in the creation of a global economy.
The good organization is the any business that produces products, sells and offers services to solve the
Obtain the goodwill of the customers and getting the profit over the
time are the foremost objectives and strategies of business. Operations Research (OR), also known as Operational
Research, is a field of study that involves the application of mathematical and analytical methods to decision-
making processes within organizations. Operation design and productions strategy is the part business that
designs the principles and practices of management to perform production, sales, or services effectively.
Competition in air transportations is increasing rapidly and the environment is too sensitive and alert to changes.
These changes have resulted that assurance of a quality level, is very important to reduce accidents, increase
safety, and reduce costs and customer satisfaction.
The Mumbai airport has two intersecting runways and it handles an average of 980 flights per day. In 2022-2023,
44 million passengers used Mumbai airport, i.e. a 105 per cent rise the passenger traffic at the Mumbai Airport.
The model of Expected Marginal Seat Revenue (EMSR) developed in this research paper is a decision framework
for maximizing flight leg revenues which can be applied to multiple nested fare class inventories. It is applied to
a dynamic process of booking limit revision for future flight departures, and overbooking factors as well as fare
class upgrade probabilities are incorporated.
Airlines typically divide a pool of identical seats into different booking classes, each having different prices of air
tickets. Mixing discount and higher-fare passengers in the same aircraft compartment offered the airline the
potential of gaining revenue from seats that would otherwise fly empty.
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A GLOBAL JOURNAL OF HUMANITIES
( ISSN – 2581-5857 )
Impact Factor: SJIF - 5.551, IIFS - 5.125
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GAP BODHI TARU – Volume - VII
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114
Customers are seeking to get the lowest price for their ticket, while airline companies are trying to keep their
overall revenue as high as possible and maximize their profit. However, mismatches between available seats and
passenger demand usually leads to either the customer paying more or the airlines company losing revenue.
Airlines companies are mostly equipped with advanced tools and capabilities that enable them to control the
pricing process. However, customers are also becoming more constant with the development of various online
tools or apps to compare prices across various airline companies.
The seat inventory control problem is to find the number of seats to make available to each fare class from the
coach cabin of the aircraft, so as to maximize total expected revenues for an expected for future flight. In other
words, an optimal booking policy is sought for the ticket sales, which requires the assessment of accepting a
booking request relative to the decrease in expected total revenue associated with removing one seat from the
available inventory.
To accelerate the integrated modernization, progress and extension of the amenities of airport that meets the
needs of the international standard is the only important objective of the Airport Authority of India (AAI). Air
transport value chain players include Airlines, Airports, aircraft and parts Manufacturers, Lessors, aircraft
Maintenance providers, Computer Reservation Systems (CRS), Travel Agents and other service providers.
Airlines are the key components of the air transport system that provide the actual transport services (Wensveen
2007). The airline industry more contributes to the national economy as well as global by transporting people,
cargo and creating jobs and economic activity to increase the nation income and jobs.
Airport Profitability
Over the past century, several airports with high number of passengers which are not only acting like mega-hubs
organizations driving development of social opportunities, cultural exchanges and national economic growth
desired by States. Over 3900 commercial airports situated in regions with either huge populations, mature
and/or rapidly growing economies are facilitating the safe movements of over 34 million commercial flights
annually. (Halpern & Graham 2018, 49.) A report published by International Civil Aviation Organization (ICAO)
(2019a, 8-9), indicates the whole worth of aviation industry is $2.7 trillion and it is forecasted to rise to $5.7
trillion by 2036. For the same year, Airports Council International (ACI) reported that airport industry revenue
surpassed $172.2 billion of which 55.8% accounts for aeronautical charges, nearly 40% for non-aeronautical
sources and 4.3% for non-operating revenues. The same report indicating a global return on invested capital
(ROIC) of 7.4% and airport industry net profit margin of over 20% which decreased slightly compared to 2018.
(ACI 2019a.)
OBJECTIVES
1. To study of minimize the risk of overbooking or unsold seats in air transportation
2. To minimize investment inventory at minimum level to profitability.
3. To give appropriate suggestions to provide better customer service through fast delivery to customer
and low customer charges.
Data Collection:
Secondary data: Review of related literatures from Google Scholar, Shod Ganga, Science direct.
Scope
Scope of the study is to find out passenger satisfaction in view of the different services provided by Mumbai
International Airport Ltd. (MIAL). The study covers the different aspect of passenger satisfaction. Airport
management will get help from this Customer satisfaction survey report.
RESEARCH METHODOLOGY
Review of literature, Diagrammatical representation of data.
Computer Reservation System and Global distribution System
Computer Reservation System is also called as Central Reservation System.
Global distribution System (GDS) and Computer Reservation System (CRS) have the same functions but, CRS only
provides information about airlines. With Global distribution System, you can reserve a ticket, book a hotel room
or rent a car. This is why they are known as Global Distribution System because you can reserve everything with
GDS.
Relationship between the pricing, reservation control and Computer reservation system (CRS)
GAP BODHI TARU
A GLOBAL JOURNAL OF HUMANITIES
( ISSN – 2581-5857 )
Impact Factor: SJIF - 5.551, IIFS - 5.125
Globally peer-reviewed and open access journal.
GAP BODHI TARU – Volume - VII
February 2024
Special Issue on “Viksit Bharat - Towards Five Trillion Economy”
https://www.gapbodhitaru.org/
115
Goals of Airlines and Customer
Airports Council International (ACI) Rank
Rank of Indian Airports in the world’s busiest airports by total passenger traffic:
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
New Delhi Airport
31
25
21
16
12
17
16
13
9
Mumbai Airport
47
35
29
29
28
41
-
-
28
GAP BODHI TARU
A GLOBAL JOURNAL OF HUMANITIES
( ISSN – 2581-5857 )
Impact Factor: SJIF - 5.551, IIFS - 5.125
Globally peer-reviewed and open access journal.
GAP BODHI TARU – Volume - VII
February 2024
Special Issue on “Viksit Bharat - Towards Five Trillion Economy”
https://www.gapbodhitaru.org/
116
Interpretation
Mumbai's Chhatrapati Shivaji Maharaj Airport and Delhi Airport are listed in world ranking by ACI rank. Also,
Mumbai's Chhatrapati Shivaji Maharaj Airport Platinum rating by ACI and Asia-Pacific in green airports
recognition (GAR) programme for 2023.
Passenger Traffic from year 2015 to 2022
Year
Passengers Traffic (Domestic +International)
2015
40637377
2016
44680555
2017
47204259
2018
49876769
2019
47055740
2020
16389870
2021
19786522
2022
38332106
31
25
21
16
12
17
16
13
9
47
35
29 29
28
41
28
0
10
20
30
40
50
2014 2015 2016 2017 2018 2019 2020 2021 2022
Passengers
Year
Airports Council International (ACI) Rank
New Delhi Airport Mumbai Airport
40637377
44680555
47204259
49876769
47055740
16389870
19786522
38332106
0
10000000
20000000
30000000
40000000
50000000
60000000
2015 2016 2017 2018 2019 2020 2021 2022
Passenges in Cr.
Year
Passenger Traffic
Passenger Traffic
GAP BODHI TARU
A GLOBAL JOURNAL OF HUMANITIES
( ISSN – 2581-5857 )
Impact Factor: SJIF - 5.551, IIFS - 5.125
Globally peer-reviewed and open access journal.
GAP BODHI TARU – Volume - VII
February 2024
Special Issue on “Viksit Bharat - Towards Five Trillion Economy”
https://www.gapbodhitaru.org/
117
Interpretation:
From the above bar diagram, we interpret that passenger traffic at the air transportation is increasing from the
year 2015 to 2018. But due to CORONA pandemic start from March 2019 passenger traffic is decreasing.
Passengers Traffic International Airport Mumbai month wise from August 2022 to July 2023
Interpretation:
Passengers traffic at the Mumbai airport is increasing in trends from the month of August 2022 to July2023, but
some decreases trend in the month of February and April 2023.
EMSR model
available seats on an aircraft. Seat inventory management is the process of limiting the number of seats made
available to each fare class. The objective of both strategies is to maximize the total revenues generated by the
mix of fare products sold for a flight.
The EMSR model was implemented as part of an automated seat inventory control system at Mumbai
International Airport and tested on a sample of actual flights. Compared to flights managed by existing manual
methods, flights for which fare class booking limits were set and revised automatically on the basis of the EMSR
decision model carried more passengers at a lower yield, and generated higher total revenues.
Passengers Traffic (Domestic +International) in Top metro airports in Crores
Delhi
Mumbai
Bengaluru
Hyderabad
Chennai
Kolkata
2022-23
6.5
4.4
3.2
2
1.8
1.7
2021-22
3.9
2.2
1.6
1.2
0.95
1.1
% Growth
66
102
96
69
95
61
1.7
1.8
2
3.2
4.4
6.5
1.1
0.95
1.2
1.6
2.2
3.9
0 1 2 3 4 5 6 7
Kolkata
Chennai
Hyderabad
Bengaluru
Mumbai
Delhi
Passengers traffic in Crores
Airport
Passengers Traffic 2021-22 and 2022-23
2021-22 2022-23
GAP BODHI TARU
A GLOBAL JOURNAL OF HUMANITIES
( ISSN – 2581-5857 )
Impact Factor: SJIF - 5.551, IIFS - 5.125
Globally peer-reviewed and open access journal.
GAP BODHI TARU – Volume - VII
February 2024
Special Issue on “Viksit Bharat - Towards Five Trillion Economy”
https://www.gapbodhitaru.org/
118
Interpretation
Reject H0, By the data we interpret that, in the financial year 2022-23, the year-on-year growth in Mumbai
domestic and international passenger traffic combined was 102%. The Mumbai airport is the highest passenger
traffic growth among all metro airports in the country for the second straight year in a row.
Research in Overbooking or unsold seats in air transportation
Overbooking of seats in airline is not done randomly. Airlines use an algorithm which suggests the number of
seats to be overbooked on the basis of previous data about the number of last-minute cancellations.
For example, in July 2017, it was reported that United Airlines had forced a passenger to hold her two-year-old
child on her lap over the duration of a 4 Hr. flight. This was after reselling the seat of child's just before time of
departure to a standby passenger (Zhang, 2017).
Bumping
But occasionally,
it will be happening when there are more passengers scheduled to fly on an airplane than available seats. The
business practice of bumping is not illegal. Airlines oversell their scheduled flights to a certain extent in order to
compensate for -
smoothly. But sometimes, passengers are bumped as a result of oversales practices.
Not all airlines engage in the practice of selling more tickets than available seats on an aircraft. Some airlines
simply sell enough tickets to fill every seat properly. Although this practice significantly reduces the chances that
a passenger will be bumped, the airline may still bump passengers in rare circumstances - such as when the seat
why they may be asked to give
up their seats and what rights they may have. Before an airline forces a passenger to give up his/her seat due to
overbooking, the airline must ask passengers on the flight if they are willing to give up their seat voluntarily in
exchange for compensation.
Voluntarily Giving Up Your Seat
If a flight has more passengers who are ready to fly than there are seats available, airlines must first ask
passengers to give up their seats voluntarily, in exchange for compensation, before bumping anyone
involuntarily. Airlines may offer passengers incentives, such as money or vouchers, to volunteer. There is no limit
to the amount of money or vouchers that the airline may offer, and passengers are free to negotiate with the
airline. If an airline offers a reduced rate ticket, free ticket, or voucher to passengers in exchange for volunteering
to fly on a different flight, the airline must tell passengers about any and all restrictions that may apply to the use
of the reduced rate ticket, free ticket, or voucher before passengers decide whether or not to give up their
confirmed reserved space on the currently oversold flight.
Traditional upgrade optimization is conducted by sequentially optimizing the pricing for the cabins in the order
of business, first, and economy cabins, respectively. After an upper cabin is optimized for seat allocation, the
remaining seats therein are left to the next lower cabin for optimization.
Minimize investment inventory at minimum level to profitability. There are many factors affecting to minimize
expenditure on airline inventory. Air travelling and Oil prices are linked oil supply reductions drive GDP declines.
But oil and travel are negatively correlated when GDP demand surges drive price of oil increases. So, oil prices
can either increase or decrease airline profit cycles, depending on the time period sampled.
Data from the (Airline International Destination Satisfaction Study,) showed that 40% of customers
said positive customer experience would have more of an impact on their decision to rebook with an airline, than
a cheaper price.
The majority of the customers are waited in the queue of security check point counter for 6-10 minutes duration
of time. The maximum of the customers is thought that the departure or arrival time was very important while
making a decision to choose the airline. The majority of the customers are thought that the fewer stops of flight
and better connection was very important while making a decision to choose the airline. The majority of the
passengers are thought that the air fare of the flight is very important while making a decision to choose the
airline
CONCLUSION
2) Mumbai's Chhatrapati Shivaji Maharaj Airport and Delhi Airport are listed in world ranking by ACI rank.
Also, Mumbai's Chhatrapati Shivaji Maharaj Airport Platinum rating by ACI and Asia-Pacific in green airports
recognition (GAR) programme for 2023.
GAP BODHI TARU
A GLOBAL JOURNAL OF HUMANITIES
( ISSN – 2581-5857 )
Impact Factor: SJIF - 5.551, IIFS - 5.125
Globally peer-reviewed and open access journal.
GAP BODHI TARU – Volume - VII
February 2024
Special Issue on “Viksit Bharat - Towards Five Trillion Economy”
https://www.gapbodhitaru.org/
119
3) Mumbai domestic and international passenger traffic combined was 102%. The Mumbai airport is the
highest passenger traffic growth among all metro airports in the country for the second straight year in a row.
In general, high percentage of passengers are dissatisfied with quality of services being provided by
There are number of problems and suggestions reported by passengers. These problems and
suggestions should be studied carefully by MIAL in order to improve passenger satisfaction levels; that will have
a direct impact on their business.
It is concluded from the study that customers are satisfied with the quality, service and, safety provided
by the airlines.
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GAP BODHI TARU
A GLOBAL JOURNAL OF HUMANITIES
( ISSN – 2581-5857 )
Impact Factor: SJIF - 5.551, IIFS - 5.125
Globally peer-reviewed and open access journal.
GAP BODHI TARU – Volume - VII
February 2024
Special Issue on “Viksit Bharat - Towards Five Trillion Economy”
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customerknowledge
