Are Automated Service Interactions more effective in retaining existing customers and attracting new ones? How can various emerging technologies, including the Internet of Things, smart devices, or wearables, be integrated with automated service interactions to create optimal value?
Impacts of e-service quality on customer loyalty: An empirical study of UK internet grocery market. How do brands exploit impulsive buying? Impact of e-marketing on influencing consumer purchase decision: case of UK luxury industry. Financial Management Role of Capital structure in improving the firm performance: an exploratory study on UK manufacturing firms. The evolution and implementation of investment banking in emerging markets.
How does European financial supervision affect cross-border financial investment? What is the impact of foreign direct investment on emerging economies? Assessing the factors that promote foreign direct investment in Asian economies — the case of India. The challenges of financial institutions in emerging economies. A study into the impact of multinational trade agreements on the growth of emerging economies: The case of Russia. How online digital platforms have helped organizations in recruiting effectively and efficiently. Investigating the efficacy of performance appraisal from the perception of employees in UK retail industry.
To investigate the role of motivation in HRM — A study highlighting the most important motivation factors for future business leaders. The effect of performance management for large and diversified business organizations. In our country, too, there is a need for establishing systems which can generate monetary and non-monetary information about human beings in the organizations, particularly about managerial talents whose dearth is felt by business organizations.
Human Resource Accounting HRA Problems: There are certain operational problems in human resource accounting because it attempts to measure intangibles. Therefore, subjective factors may play crucial role. In the case of financial accounting, there are certain specified standards which every organization follows. However, in the case of human Therefore, various organizations that adopt human asset valuation use their own models.
With the result, value of human assets of two organizations may not be comparable. However, many of these problems are of operational nature or if attitudinal nature. These may be overcome by developing suitable organizational climate and culture. References: 1 Eric G. Flamholtz Bowers Terms and Concepts in Accounts, New York. India: Towards transparency and uniformity.
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Business line. Chennai, l. Praxis, Business Line. Meeting, D. Future cash flow measurements. Journal of Accountancy, 4 , Plant Engineering 61 4 , The New Organizational Wealth. San Francisco: Berrett-Koehler. Most of the countries in the world are members of the International Civil Aviation Organization ICAO and work together to establish common standards and recommended practices for civil aviation through that agency. All scheduled air transport is commercial, but general aviation can be either commercial or private.
Normally, the pilot, aircraft, and operator must all be authorized to perform commercial operations through separate commercial licensing, registration, and operation certificates. Domestic airlines have been allowed to fly overseas, forge partnerships with foreign carriers while foreign carriers in turn have been interlining with domestic airlines to access secondary destinations. The government has also tried to ensure an environment conducive for growth of all stakeholders associated with Indian aviation segment. With the rise in the number of airlines, growing passenger segment and route expansion, there is however a need for Indian airports to have their infrastructure in lace, which unfortunately at present is the weakest link in the chain.
Greenfield and modernisation projects are being developed on PPP model to develop facilities conforming to international standards and to encourage the domestic operators to shift base, so as to decongest major airports. To monitor the quality of services rendered by various airports and their tariff, an independent regulator, Airport Economic Regulatory Authority AERA , is proposed to be appointed. To ensure competitive practices in ground handling services, the government has proposed adoption of a new ground handling policy from January Global and domestic aircraft manufacturers are upbeat on the aircraft demands from India.
With the growth in the passenger and aircraft traffic in India, there has also been a significant focus on requirement of However, on the manpower front, currently there is a shortage of qualified pilots and other technical staff including Aircraft Maintenance Engineers and Air Traffic Controllers. While there are a lot of new avenues in aerospace services in the coming decades, the constraints associated need to be addressed to enable the smooth growth of the sector.
Some of the issues faced by the sector include mounting losses of the airlines, rising aviation fuel prices, congestion at airports, shortage of qualified pilots and technical manpower, up gradation of security, land acquisition, high taxation, high airport charges etc. There is a need to study the causes of the issues and address the same thereby paving an unobstructed growth path for the various opportunities requirement of maintenance, repair and overhaul MRO facilities.
There is a need to study the causes of the issues and address the same thereby paving an unobstructed growth path for the various opportunities. Currently, India has airports - including 15 international airports. Over the past ten years the Indian civil aviation sector grew by In In , J. Tata flew an air mail service airplane, after which Tata Airlines ventured into scheduled air transport services. However in , the Indian government once again granted permission to private sector companies to provide air taxi service.
While these policy changes led to a dramatic increase in the number of private airline carriers; due to viability issues, by the end of the 20th century all private air carriers, except Jet Airlines and Air Sahara, exited the market. Furthermore, introduction of low cost airlines also changed the perception that air travel was reserved only for the elites. Currently, India maintains bilateral While 72 foreign airlines fly in and out of India,16 four private domestic carriers - Jet Air, Indigo, SpiceJet17 and Kingfisher - fly to 35 destinations in 25 countries.
Air India, the national carrier maintains a number of international routes: seven destinations in North America, nine destinations in Europe, 12 destinations in the Gulf, two destinations in the Middle East, two destinations in Africa, and 13 destinations in West and East Asia. The conference provided a forum for nations to amend and modernize existing ASAs. Until the Directorate General of Civil Aviation DGCA controlled every aspect of flying including the licensing of pilots, certifying aircraft and issuing all rules and procedures governing Indian airports and airspace.
This Act gave the AAI the power to manage all national and international airports and administer every aspect of air transport operation through the air traffic control. Within the Indian context of airport regulation, AERA takes the following things into consideration: airports are natural monopolies; airports are public goods, both in the case of Brownfield and Greenfield airports the Government of India has made land Lastly, the same Act established the Appellate Tribunal which handles appeals from service providers and consumer groups.
Market Structure and Competition Issues: According to economic theory, market structures range from a perfectly competitive market to a monopoly. A perfectly competitive market is one where there are numerous producers selling the same product or service to a very large number of customers. Each producer supplies the good or service to a fraction of the market and hence does not have any influence on the market price. Competition among the suppliers drives the prices down to a point where they just recover their average cost.
The monopolist has the ability to set the price by restricting the output. This in turn results in the consumers being worse off than in a perfectly competitive market where consumers enjoy the benefits of competition among the producers. A market structure that falls between the two extremes - perfect competition and monopoly - is an oligopoly. In an oligopoly there are few suppliers who control a significant share of the market. Pricing in an oligopoly falls between a perfectly competitive market where the market players have no pricing power and a monopoly where a single producer can fix the highest price possible, subject to demand.
Competition in an oligopoly can lead to two outcomes. The non-competitive outcome of an oligopoly is cartel behaviour, i. There are no civil aviation markets in the world that could be characterized as a perfectly competitive market. Generally civil aviation markets exhibit either monopolistic or oligopolistic market characteristics.
The Indian civil aviation market post deregulation can be characterized as an oligopoly.
Keeping in mind the characteristics of the oligopolistic market structure, the regulator of such a market needs to engage in positive regulation that both creates a level competitive playing field and mitigates In order to mitigate anticompetitive behaviour regulation should ensure the reduction of artificial and natural barriers to market entry, to the extent that this is practically possible.
Furthermore, the regulator would need to ensure that regulation does not create artificial barriers to entry. Lastly, the regulator needs to install regulatory mechanisms ensuring transparency in behaviour of market participants. A high four firm concentration ratio and HHI above the 1, benchmark, indicates a high degree of concentration within the industry. Additionally, during the gestation period, a private carrier needs adequate staying power to buy aircraft and capacity in order to absorb initial operating losses.
Other important barriers to entry include capacity and investment constraints, as well as the absence of a level playing field or competitive neutrality The strategy of each firm depends on the behaviour of rival firms. Analysis of the identified issues: In this section, competition impeding issues are discussed in depth.
In addition, these rules and regulations are compared with those in the United States, the United Kingdom, and the European Union. With regards to aircraft with take-off mass of less than 40, kg, the start-up fleet minimum remains at five aircraft - purchased or leased - with the minimum equity requirement starting at Rs 20 crore and growing by Rs 10 crore with every five Therefore, fleet and equity requirements instituted by these regulations limit not only the number of new market entrants, but also the size of firms that enter, as they should possess enough capital to fulfill these requirements.
Since all market participants will likely come to similar conclusions, incumbent market participants will feel no urgency to change their prices, services and business models. Without new and unfamiliar competitors entering the market, there Exists no incentive to change the way these established airlines operate and therefore, customer service and choice are adversely affected.
Instead of fleet and equity requirements, new and incumbent air carrier service providers can submit financial information which establishes their financial viability and illustrates how they plan on succeeding within the civil aviation sector. Furthermore, new market entrants should also submit a concrete six month or yearlong business plan detailing how the firm plans to finance its operational expenses.
Impact on Competition: Such fleet, equity and experience requirements deter entry and thereby reduce consumer choice of international passenger air carriers. For example, from to the Indian government raised capacity entitlements for international carriers four-fold; however, Indian carriers were unable to take advantage of this increase, because these carriers did not have enough planes - as required by Civil Aviation Requirements CAR - while foreign carriers such as Emirates benefited from this policy tremendously.
Consumers choose from a limited number of passenger air carriers and if they find their current airline service provider unsatisfactory, their choice of another service provider is constrained by the relatively small number of carriers. For example, currently, a passenger who wishes to fly directly to Paris chooses from two international carriers: Air India and Air France. Jet Air has thus far unsuccessfully sought flying rights to Paris from the Indian government.
Furthermore, the Open Sky policy allows foreign airlines into India as long as they abide by Indian safety regulations and are licensed by their home country, which may not require minimum 20 aircraft fleet size and five years operational experience. In effect, this policy creates a two-tier competitive environment for international carriers - foreign and Indian - putting Indian domestic carriers that want to provide international services at a disadvantage.
For example, in order to provide international air carrier service, a US carrier must only comply with the air traffic rules of the foreign country, the pertinent U. Air Traffic Forecast for Indian Aviation: Results of Air Passenger Traffic Forecasts: Domestic air traffic that would be carried by Scheduled Carriers in India in is set to cross Million Passengers as against 54 Million in suggesting a growth of approximately three times the present traffic in ten years.
In fact Domestic Passengers carried grew 3. International passengers to and from India by will be 92 Million implying a growth of about 2. The decade to witnessed a growth of 2. Forecast for suggests that domestic air passengers to be carried in India will be Million. For the same year international passengers will be Million excluding transhipment passengers.
GDP elasticity of 1. Domestic passenger traffic is relatively less sensitive to domestic GDP as compared to international passenger traffic to global GDP. Comparison of Results with Forecast Made by Other Agencies: Overall air traffic is set to grow at an annual average growth rate of Over the period from to the rate of growth will be Domestic traffic growth will be higher at This pattern is consistent with the long term trends noticed in India for the last 20 years i.
Air Bus39 Forecast made for India arrived at a growth rate of 9. Forecasts obtained from our econometric modeling exercise are in line with the forecasts obtained by independent agencies like CAPA where the estimates correspond to the most likely scenario as exhibited in. According to MOCA estimates, the domestic passenger carried would be million, international passenger carried would be Similarly, forecasts of independent agencies have been compared with those of MOCA estimates in Graph 2 for the year It states that the domestic passenger traffic will push the overall passenger traffic in comparison to the international passenger traffic to and from India.
On the other hand, domestic RPK grew at an annual average growth rate of It is evident that domestic RPK has grown in the past and is expected to grow at a faster rate in future in comparison to domestic passenger carried indicating that passenger traffic growth alone will not reflect the actual utilization of air transport during a phase when market is growing. Newer areas of growth in context of air traffic have emerged in the last 20 years and in the next 20 years newer regions are expected to emerge.
With newer destination pairs being added aggressively by airlines especially in Tier II and Tier III markets, faster growth in domestic passenger carried due to affordability of air transport, rising personal disposable income and growing urban young middle income population will push up the growth rate in domestic RPK. Over the long haul, air travel will increasingly be the preferred mode of transport without the prospect of intermodal substitution.
Such a comparison for international passenger traffic could not be carried out due to non-availability of RPK for international passengers. For the forecast of air cargo traffic from to , GDP growth rate assumptions are the same as the ones used for passenger forecast discussed earlier. Elasticity coefficients obtained from the econometric exercise are 1.
A sensitivity analysis has been undertaken; the results for the same are given in Annex III. The forecast numbers that have been used in this report pertain to the Base Case scenario. Higher domestic cargo traffic is also indicative of the general health of the economy. Higher cargo volume indicates greater final consumption, better performance of domestic manufacturing and services sector. By , domestic cargo traffic might witness over two and half times the traffic of while the international cargo traffic will also witness over two times the traffic of General Aviation: General aviation may include business flights, air charter, private aviation, flight training, ballooning, parachuting, gliding, hang gliding, aerial photography, foot- launched powered hang gliders, air ambulance, crop dusting, charter flights, traffic reporting, police air patrols and forest fire fighting.
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General aviation includes all non- scheduled civil flying, both private and commercial. Each country regulates aviation differently, but general aviation usually falls under different regulations depending on whether it is private or commercial and on the type of equipment involved. Many small aircraft manufacturers serve the general aviation market, with a focus on private aviation and flight training. The most important recent developments for small aircraft which form the bulk of the GA fleet have been the introduction of advanced avionics including GPS that were formerly found only in large airliners, and the introduction of composite materials to Ultra light and homebuilt aircraft have also become increasingly popular for recreational use, since in most countries that allow private aviation, they are much less expensive and less heavily regulated than certified aircraft.
The largest aircraft to be built, to date, is the Antonov An This aircraft comes from the Ukraine, and it was built back in the s. This aircraft includes 6 engines, mounted on the wing. Its wingspan is 88 metres feet and it is 84 metres long feet. This aircraft holds the world payload record, after it transported , pounds worth of goods. Weighing in at 1. National: Many countries have national airlines that the government owns and operates. Fully private airlines are subject to a great deal of government regulation for economic, political, and safety concerns.
For instance, governments often intervene to halt airline labour actions to protect the free flow of people, communications, and goods between different regions without compromising safety. In the past, these governments dictated airfares, route networks, and other operational requirements for each airline. Since deregulation, airlines have been largely free to negotiate their own operating arrangements with different airports, enter and exit routes easily, and to levy airfares and supply flights according to market demand. The entry barriers for new airlines are lower in a deregulated market, and so the U.
The added competition, together with pricing freedom, means that new entrants often take market share with highly reduced rates that, to a limited degree, full service airlines must match. This is a major constraint on profitability for established carriers, which tend to have a higher cost base. As a result, profitability in a deregulated market is uneven for most airlines.
International: Groups such as the International Civil Aviation Organization establish worldwide standards for safety and other vital concerns. Most international air traffic is regulated by bilateral agreements between countries, which designate specific carriers to operate on specific routes. The model of such an agreement was the Bermuda Agreement between the US and UK following World War II, which designated airports to be used for transatlantic flights and gave each government the authority to nominate carriers to operate routes. Bilateral agreements are based on the "freedoms of the air", a group of generalized traffic rights ranging from the freedom to overfly a country to the freedom to provide domestic flights within a country a very rarely granted right known as cabotage.
Most agreements permit airlines to fly from their home country to designated airports in the other country: some also extend the freedom to provide continuing service to a third country, or to another destination in the other country while carrying passengers from overseas. In the s, "open skies" agreements became more common. These agreements take many of these regulatory powers from state governments and open up international routes to further competition. Open skies agreements have met some criticism, particularly within the European Union, whose airlines would be at a comparative disadvantage with the United States' because of cabotage restrictions.
Industry Trends: The pattern of ownership has been privatized in the recent years, that is, the ownership has gradually changed from governments to private and individual sectors or organizations. This occurs as regulators permit greater freedom and non- government ownership, in steps that are usually decades apart.
This pattern is not seen for all airlines in all regions. Growth rates are not consistent in all regions, but countries with a de-regulated airline industry have more competition and greater pricing freedom. This results in lower fares and sometimes dramatic spurts in traffic growth.
The U. The industry has been observed to be cyclical in its financial performance. Four or five years of poor earnings proceed five or six years of improvement. In times of profit, airlines lease new generations of airplanes and upgrade services in response to higher demand. Since , the industry has not earned back the cost of capital during the best of times. Conversely, in bad times losses can be dramatically worse.
Warren Buffett once said that despite all the money that has been invested in all airlines, the net profit is less than zero. He believes it is one of the hardest businesses to manage. As in many mature industries, consolidation is a trend. Airline groupings may consist of limited bilateral partnerships, long-term, multi-faceted alliances between carriers, equity arrangements, mergers, or takeovers. Since governments often restrict ownership and merger between companies in different countries, most consolidation takes place within a country.
In the U. Many international airline managers are lobbying their governments to permit greater consolidation to achieve higher economy and efficiency. Air Traffic Control: Air traffic control ATC involves communication with aircraft to help maintain separation — that is, they ensure that aircraft are sufficiently far enough apart horizontally or vertically for no risk of collision. Controllers may co-ordinate position reports provided by pilots, or in high traffic areas such as the United States they may use radar to see aircraft positions. There are generally four different types of ATC air traffic control: ATC is especially important for aircraft flying under instrument flight rules IFR , where they may be in weather conditions that do not allow the pilots to see other aircraft.
However, in very high-traffic areas, especially near major airports, aircraft flying under visual flight rules VFR are also required to follow instructions from ATC. In addition to separation from other aircraft, ATC may provide weather advisories, terrain separation, navigation assistance, and other services to pilots, depending on their workload. ATC do not control all flights. The majority of VFR flights in North America are not required to talk to ATC unless they are passing through a busy terminal area or using a major airport , and in many areas, such as northern Canada and low altitude in northern Scotland, Air traffic control services are not available even for IFR flights at lower altitudes.
It codifies the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth. The ICAO Council adopts standards and recommended practices concerning air navigation, its infrastructure, flight inspection, prevention of unlawful interference, and facilitation of border-crossing procedures for international civil aviation. ICAO defines the protocols for air accident investigation Commissioners serve as independent experts, who although nominated by their states, do not serve as state or political representatives.
Once approved by the Commission, standards are sent to the Council, the political body of ICAO, for consultation and coordination with the Member States before final adoption. Large networks of specialized parts suppliers from around the world support these manufacturers, who sometimes provide only the initial design and final assembly in Until the s, most major airlines were flag carriers, sponsored by their governments and heavily protected from competition.
Since then, open skies agreements have resulted in increased competition and choice for consumers, coupled with falling prices for airlines. The combination of high fuel prices, low fares, high salaries, and crises such as the September 11, attacks and the SARS epidemic have driven many older airlines to government-bailouts, bankruptcy or mergers. At the same time, low-cost carriers such as Ryanair, Southwest and Westjet have flourished.
This was subsequently renamed in July as Air India Ltd. In , the Air Corporations Act was passed. Air India International Ltd. IAL were incorporated under the Companies Act, NACIL was incorporated. The scheme of amalgamation of Air India Ltd. By the end July, the airline started carrying non-stop flights to USA. However, by August it was considered that Air India did not meet the minimum standard requirements for membership, so the invitation was postponed. In the same years, on the 1st of December, the daily non-stop flight on the Delhi - New York route was extended to Washington. This extraordinary measure was taken as a result of the unstable political climate in Egypt.
First such accident happened in November , all 48 people on board dying, and the last one on the 23rd of June , when a Boeing B was blown up in mid-air by a suitcase-bomb and all passengers and 22 crew on board perished. Air India International Sector: Air India connects to major international destinations across continents. For booking, passengers can always take assistance of AI call centre. Air India Domestic Sector: Air India is one of the few airlines that connect different parts of the country through regular flights.
These short-haul routes are connected by Airbus A family and recently, by Boeing Moreover, all the popular tourist destinations are connected by AI flights, such as Agra, Goa and Leh. For travelling to these domestic destinations, travellers can easily book tickets online. Air India Baggage, Flight Status: Air India has made efforts to make travelling a fun experience for passengers by offering a range of facilities, including online ticket booking and flight schedule information.
Throughout its history, AI has upgraded its existing services as well as introduced many to help passengers manage their trip without hassle. Among its many offerings, the web check in option has made life simpler for travellers. Also, the availability of flight status as well as information regarding baggage on the web has proved to be extremely beneficial. There is also free baggage allowance option available for certain destinations, which not many passengers know about. To know about all the services and facilities, passengers can check the website. They can easily get information regarding anything, be it ticket booking, routes.
Besides, innumerable domestic destinations are connected by Air India airlines, such as Agra, Bhopal, Or in other words, a drop in the ocean. The flying allowance to its pilots can wait. Air India is the largest international carrier from the country and with the entry of Tata-SIA, Jet-Etihad, is set to face higher competition on international routes.
It is yet to make an entry into the LCC space to compete with local carriers. French in-flight entertainment and Service Company — Thales could be responsible for the implementation of the wifi service.
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The company has been asked to make a presentation by the Air India management. The Air India management will examine the technical aspects of the step, and will also ensure that the service is implemented in a cost-neutral way. The Federal Aviation Administration in the US recently ruled in favour of allowing the usage of personal electronic devices like e-books and being able to watch video on their devices while in flight.
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