Sheryl Major Project
Sheryl Major Project
PROJECT REPORT
Submitted by
Reg no : 239207230031
Dr.M.GOVINDASOLAI
Associate Professor-MBA (Airline & Airport Management)
COIMBATORE – 08
2023-2025
CERTIFICATE
This is to certify that the project report entitled “A Study on Customer Satisfaction
Level Of Air Arabia Services At Chennai International Airport” is a Bonafide
record work done by SHERYL ANGELINE REBECCA M, register no:
239207230031 in the partial fulfillment of the requirement for the award of M.B.A
(Airline & Airport Management).
With deep sense of gratitude, I extend my earnest and sincere thanks to my guide
Dr.M.Govindasolai, Associate Professor, for his kind guidance and
encouragement for completing my project successfully.
SIGNATURE
CONTENT
CHAPTER 1 INTRODUCTION 1
APPENDIX 104
ANALYSIS AND INTERPRETATION - TABLE
S No. TITLE PAGE No.
INTRODUCTION
Air Arabia is an Emirati low-cost airline with its head office in the A1 Building
Sharjah Freight Centre, Sharjah International Airport, United Arab Emirates (UAE).
The airline operates scheduled services to 170 destinations in the Middle East, North
Africa, the Arabian subcontinent, Central Asia, and Europe to 22 countries from
Sharjah, 28 destinations in 9 countries from Casablanca, Fez, Nador, and Tangier, 11
destinations in 8 countries from Ras Al Khaimah, and 6 destinations in 4 countries
from Alexandria. Air Arabia's main base is Sharjah International Airport. There are
also operating bases in Ras Al Khaimah and Abu Dhabi as well as in Alexandria and
Casablanca.
HISTORY
Air Arabia was established on 3 February 2003 by an Amiri decree issued by Sultan
bin Muhammad Al-Qasimi, the Ruler of Sharjah and member of the Supreme Council
of the United Arab Emirates, becoming the first low-fare airline in the Middle East.
The airline started operations on 28 October 2003. It broke even during its first year in
business and launched an initial public offering for 55% of its stock early in 2007.
In March 2014, Airbus delivered its 6000th A320 family aircraft to Air Arabia.
1
MANAGEMENT AND OWNERSHIP
Air Arabia launched in October 2003 and was the second low-cost carrier in the Middle
East. The company reported more than AED 19 billion in Q4 2019. The airline broke
even in its first year of operation. Air Arabia consists of a group of airlines and
companies offering travel and tourism services across the Middle East and North
Africa.
As of March 2014, Annual General Meeting, the board members consisted of the
following members:
In 2019, Air Arabia filed a misdemeanour case against Arif Naqvi, the Pakistani
founder and CEO of private equity firm Abraaj Capital following arbitration measures
taken by it in 2018. Naqvi was also a Director of Air Arabia until 2018, and the airline
was one of Abraaj’s unsecured creditors with a loan of $75 million in default.
2
HEADQUARTERS
The headquarters is in the Sharjah airport Freight Centre, on the property of Sharjah
International Airport. The airport is 15 kilometres (9.3 mi) away from central Dubai.
Subsidiaries
Abu Dhabi
Air Arabia Abu Dhabi (2020–present). The airline was launched on 14 July 2020 after
the signing of an agreement between Etihad Airways and Air Arabia. Air Arabia Abu
Dhabi will support the network of destinations and services provided by Etihad
Airways, and in turn will meet the needs of the low-cost and growing travel sector in
the region.
Armenia
Fly Arna (2021–present). In September 2021, Air Arabia announced a joint venture
with the Armenian National Interests Fund (ANIF) to launch a new national airline
called Fly Arna. Fly Arna will operate as a low-cost passenger airline with
Yerevan’s Zvartnots International Airport (EVN) as its base.
3
Egypt
Air Arabia Egypt (2010–present). On 9 September 2009, Air Arabia announced Air
Arabia Egypt as a joint venture with Egyptian travel and tourism company Travco
Group to be based in Alexandria, Egypt.
Jordan
Air Arabia Jordan (2015–2018). In January 2015, Air Arabia announced the
acquisition of a 49% stake in Petra Airlines. The principal shareholder of Petra
Airlines, the RUM Group, retains a 51% stake in the airline, which will be rebranded
as Air Arabia Jordan in early 2015. The first flights of the new airline took place during
the week commencing 18 May 2015, with launch destinations being Kuwait, Sharm El
Sheikh, Erbil, and Jeddah.[21] Air Arabia Jordan ended operations in 2018.
4
Morocco
Air Arabia Maroc (2009–present). Air Arabia, in a joint venture with Moroccan
investors, established Air Arabia Maroc and set up a secondary base in Morocco's
largest city, Casablanca. It began operations in May 2009, allowing Air Arabia to
expand into Europe and Africa.
Nepal
Pakistan
Fly Jinnah (2021–present). In September 2021, Air Arabia announced a joint venture
with Pakistani conglomerate Lakson Group to launch a low cost airline called Fly
Jinnah. This will be a budget carrier serving domestic and international routes from
Pakistan.
5
Service concept
Air Arabia does not provide free catering, but passengers can purchase catering
onboard or in advance. The airline does not, however, serve alcoholic beverages on its
flights.
Air Arabia PJSC (Air Arabia) is the Middle East and North Africa's first and largest
Low Cost Carrier (LCC) services headquartered in Sharjah, the UAE. The company
provides domestic and international air transport services for passengers and cargo to
over 155 destinations across the world. Air Arabia also carries out trading of aircraft,
spare parts and telecommunications devices, aviation training and aircraft repairs and
maintenance services. It also provides services such as aircraft rental, travel and
tourism, air cargo agency, and document transfer services.
Air Arabia was the first airline to introduce the low-cost carrier concept in the region
and is on a mission to serve all Arab countries and beyond, constantly undergoing
aggressive route expansion, taking advantage of its ideally located hubs in the United
Arab Emirates, Morocco and Egypt.
Over the past years, Air Arabia, through continuous market research and customer
feedback, has provided a range of value added services to millions of passengers who
chose to fly with the airline's fleet of A320 aircraft. It operates through a group of
airlines and companies from Sharjah International Airport, Ras Al Khaimah
International Airport & Abu Dhabi International Airport UAE in the UAE; Mohammed
V International Airport in Casablanca Morocco; and Borg El Arab International
Airport in Alexandria, Egypt The company connects various destinations across the
Middle East, North Africa, Asia and Europe. Flying to over 170 destinations spread
across the Middle East, North Africa, Asia and Europe offers comfort, reliability and
value for money air travel across the network.
With a value proposition "Where Next", helps millions of passengers who have chosen
to fly with Air Arabia to fly more often to more places at their own convenience. This
helped the airline to make a difference and set a mark in the aviation industry
6
internationally. Air Arabia is not only committed to providing affordable air travel but
is also dedicated to uplifting the lives of those who are less fortunate. Taking
responsibility and leading on social needs of local and international communities, the
carrier has implemented a corporate social responsibility (CSR) program for
sustainable development with an emphasis on providing better education and
healthcare for underprivileged communities.
Although the year 2021 continued to be challenging for the aviation industry
worldwide, it witnessed recovery across many markets, driven by ease of travel
restrictions and passenger demand. Air Arabia managed to deliver such a performance
signal a steady recovery for operations as well as the industry.
In 2021 and despite the continuing impact of the pandemic, Air Arabia managed to
add 44 new routes across its five hubs in the UAE, Morocco, and Egypt. Air Arabia
Abu Dhabi added a total of 7 new routes from its base in Abu Dhabi International
Airport while Air Arabia Maroc added 16 new routes and Air Arabia Egypt added 15
new routes. Also continued with our strategic growth plans by announcing two new
joint ventures in Armenia and Pakistan. In July was announced the signing of an
7
agreement with the Armenian National Interests Fund (ANIF) to launch Armenia’s
national airline “Fly Arna”.
This was followed by another agreement in September with Lakson Group, one of
Pakistan’s leading business conglomerates, to launch “Fly Jinnah” a new low-cost
airline based in Pakistan. Air Arabia’s top users’ market is the United Arab Emirates
and they receive 1.6M (36.6%) people. Then the 2nd is Arabia with 473.5k (11.1%).
The 3rd is Saudi Arabia with 468k (11.0%).
Performance Summary Air Arabia's latest twelve months ebitda is 1.174 billion. Air
Arabia's ebitda for fiscal years ending December 2017 to 2021 averaged 1.003 billion.
Air Arabia operated at a median ebitdد. إbillion from fiscal years ending December
2017 to 2021. Looking back at the last five years, Air Arabia's ebitda peaked in
December 2019 at 1.464 د. إbillion.
Air Arabia's ebitda hit its five-year low in December 2020 .million 368.5 إ. دof Air
Arabia's ebitda decreased in 2020 (368.5 د. إmillion, -74.8%) and increased in 2021
(1.174 د. إbillion, +218.5%). The company's EBITDA/Sales ratio is relatively high and
results in high margins before depreciation, amortization and taxes. The company
returns high margins, thereby supporting business profitability. The equity is one of
the most attractive in the market regarding earnings multiple-based valuation. Given
the positive cash flows generated by its business, the company's valuation level is an
asset. This company will be of major interest to investors in search of a high dividend
stock. Growth remains a strong point in this company.
In their sales forecast, analysts sound optimistic regarding sales prospects. For the past
year, analysts covering the stock have been revising their EPS expectations upwards
in a significant manner. For the past twelve months, EPS forecast has been revised
upwards. Analysts covering this company mostly recommend stock overweighting or
purchase. Historically, the company has been releasing figures that are above
expectations.
8
Air Arabia PJSC is still a bargain right now according to the price multiple models,
which compares the company's price-to-earnings ratio to the industry average. The
stock’s ratio of 24.74x is currently well-below the industry average of 41.77x, meaning
that it is trading at a cheaper price relative to its peers.
Another thing to keep in mind is that Air Arabia PJSC’s share price is quite stable
relative to the rest of the market, as indicated by its low beta. This means that if the
share price should move towards its industry peers, a low beta could suggest it is not
likely to reach that level anytime soon, and once it’s there, it may be hard to fall back
down into an attractive buying range again.
10
CHAPTER 2
COMPANY PROFILE
G9 ABY ARABIA
Ras Al Khaimah
Sharjah
Frequent-flyer AirRewards
program
11
Subsidiaries Air Arabia Abu Dhabi
Fly Jinnah
Fleet size 83
Profit AED
-0.2 billion (FY 2020)
12
Air Arabia launched in October 2003 and was the second low-cost carrier in the Middle
East. The company reported more than AED 19 billion in Q4 2019. The airline broke
even in its first year of operation.[9] Air Arabia consists of a group of airlines and
companies offering travel and tourism services across the Middle East and North
Africa.
As of March 2014, Annual General Meeting, the board members consisted of the
following members:
In 2019, Air Arabia filed a misdemeanour case against Arif Naqvi, the Pakistani
founder and CEO of private equity firm Abraaj Capital following arbitration measures
taken by it in 2018. Naqvi was also a Director of Air Arabia until 2018, and the airline
was one of Abraaj’s unsecured creditors with a loan of $75 million in default.
13
BUSINESS TRENDS
The key trends for Air Arabia over recent years are shown below (as at year ending 31
December):
Key indicators
Number
Turn Net Number Number Number
Passenger of
over Profit of of of
load factor aircraft
(AE (AED employee passenge destinat
(%) (at year
D m) m) s rs (m) ions
end)
14
2015 3,825 530 7.6 79 41
As the pandemic hit airline services, Air Arabia reported a net loss of AED192 million
($56.2 million) in 2020. Also, the turnover for Q4 of 2020 was 53% below Q4 of 2019.
The airline’s net profits in Q1 of 2021 fell by 52% to AED 33.844 million. Also,
revenue generated in Q1 of 2021 was AED 572.145 after witnessing major drop from
AED 901.374 million in Q1 of 2020.
DESTINATIONS
As of July 2021, Air Arabia serves up to 120 airports across the Middle East, North
Africa, Asia and Europe. On 11 December 2024, Air Arabia announced on its website
the resumption of direct flights between Sharjah and Beirut, Lebanon beginning 18
December 2024.
15
FLEET
CURRENT FLEET
As of March 2025, the Air Arabia group operates an all-Airbus A320 family fleet
composed of the following aircraft:
168
43 Air Arabia
174
Total 83 120
16
FLEET DEVELOPMENT
In November 2017, the airline signed a lease agreement for six A321LR. In April 2019,
Air Arabia received its first A321LR. In November 2019, during the Dubai Air Show,
the airline announced its order of 120 aircraft comprising 73 A320neo, 27 A321neo
and 20 A321XLR, with deliveries from 2024.
LIVERY
Air Arabia has a livery with the aircraft body being painted in three different colors,
red, grey, and white. The tail and each aircraft engine bear the company logo
of Sharjah in the form of a bird. Celebrating 15 years of service in October 2018, a new
livery was introduced and was applied to the whole fleet. The updated logo features a
large red bird logo coming down from tail to rear fuselage with grey accents behind its
wings and billboard-style AirArabia title in English on the front of aircraft with small
Arabic title placed next to it above the windows. The bird logo also adorns the engines
while the title is applied on red winglets.
In September 2018, an Air Arabia Airbus A320 (registered A6-ANV), operating flight
ABY 111 from Sharjah International Airport to Salalah International Airport, was
investigated by the Air Accident Investigation Sector of the UAE due to the co-pilot
turning the wrong direction on the runway.
Financials The Air Arabia board of directors consists of 7 board members. The current
board was appointed by the AGM of 2020 for three years. The airline commenced
operations in October 2003 and achieved financial break-even from its very first year
of services and has been profitable ever since. Air Arabia Dividends between 2008 to
2014: First Abu Dhabi Bank (Previously NBAD) has been the dividend distribution
manager for Air Arabia.
Air Arabia Dividends from 2015 onwards: Since 2015, ESCA (the relevant authority)
has mandated dividend distributions to the stock markets. As Air Arabia is listed in
17
Dubai Financial Market (DFM), DFM is responsible for distributing Air Arabia
Dividends. DFM gives two options for distribution: through direct transfers to bank
accounts or through "Investor cards" depending on preference and request made to
DFM.
Air Arabia (PJSC) is the first publicly listed airline in the region listed on the Dubai
Financial Market and traded under ticker symbol: (DFM:AIRARABIA) is a holding
company with assets worth over AED 13 billion. Established with a modest capital
back in October 2003 as the region's first low-cost carrier, Air Arabia today consists
of a group of airlines and companies offering travel and tourism services across the
globe providing the carrier an independent path to growth and profitability. End-of-
day quote Dubai Financial Market: Share - 03-31 1.62 AED = 0.44USD +0.62%
Air Arabia’s record full year net profit, despite COVID-19 pandemic continuous
impact on aviation, reflects the strength of the business model, growth strategy, and
the group’s management team. In the fourth quarter of 2021, Air Arabia reported a net
profit of AED467m ($127.1m) compared to AED20m ($5.4m) in the same period last
year and a turnover that reached AED1.3bn ($353.9m), an increase of 143 percent
compared to the same quarter last year. This is the fifth consecutive profitable quarter
for the Sharjah-based low-cost carrier since the pandemic hit the aviation industry.
The main opportunities of the company are expanding the market to other countries,
increasing the frequency of flights, as well as offering new services. Although the
company flies already in 50 countries, there are still many states where Air Arabia does
not operate, and its profitability and high organizational level make this expansion
possible.
The remarkable performance for the fourth quarter was supported by higher customer
demand that is visibility increasing as the pandemic restrictions ease. Great benefits
from a revenue source that is a lifeline for many carriers: the cargo boom. Sharjah is
also strategically located close to Dubai and this enables the airline to attract visiting
18
tourists and expatriates who opt to take advantage of the airport as they avoid the delays
and congestion at Dubai airport.
The 2021 agreement to launch Armenia’s national airline Fly Arna and with Lakson
Group, to launch Fly Jinnah, a new low-cost airline based in Pakistan. Both new joint
ventures are managed by Air Arabia Group and will follow the same low-cost business
model. By adopting cost and operating efficiencies, Air Arabia managed to provide
airfares at comparatively discounted prices in comparison with conventional carriers
operating in the same routes.
The strategy has enabled Air Arabia to appeal to a wide group of precise-sensitive
customers. The leading strengths of Air Arabia include operational efficiencies, first-
mover advantage, and a dynamic and lean management structure. In terms of risks the
expansion of the airline with 3 new hubs can be challenging and if not very well
strategically planned can impact the revenue and the operation. The fuel price increase
on a long term can affect the estimated predictions for profit shares. Pandemic and the
war are the enemies of a business that operates under international laws and
restrictions.
Air Arabia actively works to minimize its environmental footprint through various
eco-conscious practices:
19
• Weight Reduction Measures: Actively reduces onboard weight through
lightweight materials and equipment, improving fuel efficiency.
Air Arabia has taken several steps to manage waste and conserve resources:
Through its charitable arm, the Air Arabia Charitable Foundation, the airline
supports socio-economic development:
20
• Healthcare Initiatives: Partners with NGOs and hospitals to provide medical
aid and build healthcare infrastructure in rural areas.
Air Arabia contributes to sustainable economic growth across the regions it serves:
21
• Digitalization for Sustainability: Invests in tech-driven solutions to reduce
inefficiencies—online bookings, automated check-in, and paperless
boarding.
22
partnerships. While operating under a low-cost model, the airline has successfully
integrated key elements of the UN Sustainable Development Goals (SDGs) into its
strategy—making air travel more accessible, inclusive, and environmentally
conscious.
By aligning with Goals 1, 4, 5, 8, 9, 10, 11, 12, 13, and 17, Air Arabia stands as a
notable example of how budget airlines can still contribute meaningfully to global
sustainable development.
23
CHAPTER 3
OBJECTIVE:
The primary objective of this study is to assess and analyse the level of customer
satisfaction and contentment towards Air Arabia services, specifically from the
perspective of passengers at Chennai International Airport. The research aims to:
To identify and evaluate the factors influencing customer satisfaction with Air
Arabia services, including flight experience, customer service, comfort,
affordability, and punctuality.
24
To explore whether customer satisfaction varies based on demographics such
as age, gender, travel purpose, and frequency of air travel.
PRIMARY OBJECTIVE:
• Focus Areas:
• Research Goal:
SECONDARY OBJECTIVE:
The secondary objective of this study is to examine the specific factors contributing to
customer contentment towards Air Arabia at Chennai International Airport, such as the
quality of customer service, pricing, punctuality, ease of booking, and baggage
handling. Additionally, the research aims to analyse the impact of passenger
demographics (age, gender, travel frequency, etc.) on their overall satisfaction with Air
Arabia's services. This objective also includes comparing customer contentment with
Air Arabia against other airlines operating at the same airport to understand its
competitive standing in the market.
SCOPE OF STUDY:
This study on "Customer Contentment Towards Air Arabia: A Reference from Chennai
International Airport" will focus on the evaluation of customer satisfaction with Air
25
Arabia's services provided at Chennai International Airport. The scope will cover the
following aspects:
1. Geographical Scope:
2. Service Dimensions:
The study will focus on various aspects of Air Arabia's service offerings, including:
3. Demographic Focus:
The study will analyse customer satisfaction across different demographic groups, such
as age, gender, travel purpose (business or leisure), and frequency of travel, to identify
patterns and variations in satisfaction levels.
The research will also explore customer contentment towards Air Arabia in
comparison with other airlines operating at Chennai International Airport, focusing on
key areas like service quality, affordability, and overall customer experience.
26
5. Time Frame:
6. Methodology:
The study will rely on primary data collection through surveys, interviews, and
observational techniques at Chennai International Airport. Secondary data will also be
used for context, including existing reports on Air Arabia's service quality, customer
feedback, and industry comparisons.
7. Exclusions:
The study will not include passengers traveling via other airports or those who have
not used Air Arabia services. Additionally, it will not delve deeply into financial
performance or operational aspects of Air Arabia, focusing mainly on customer
satisfaction.
LIMITATION OF STUDY:
1. Geographical Limitation:
The study is limited to passengers traveling through Chennai International
Airport who have flown with Air Arabia. It does not encompass customer
contentment from passengers at other airports or from those who travel with
other airlines.
2. Time Constraints:
The data collection will be conducted within a specific period, which may not
account for seasonal variations in customer satisfaction or long-term trends.
As such, the findings may not fully represent customer contentment across
different times of the year.
27
3. Sample Size and Representation:
The study will rely on a sample of passengers surveyed at Chennai
International Airport, which may not represent the broader customer base of
Air Arabia. The sample size may be limited due to time and logistical
constraints, potentially affecting the generalizability of the results.
4. Self-Reported Data:
The research depends on customer self-reports through surveys and
interviews, which could be biased due to respondents' subjective opinions,
memory recall issues, or social desirability bias.
28
CHAPTER 4
REVIEW OF LITERATURE
Anwar et al. (2024) conducted a mixed-method study revealing a shift in Air Arabia's
strategy from cost leadership to service enhancement. The study highlighted service
gaps, especially in responsiveness and empathy, indicating areas for improvement.
Hassan et al. (2023) evaluated Air Arabia alongside other airlines using the
SERVPERF model and found that while the airline excelled in tangibility and
assurance, it underperformed in responsiveness and empathy, directly impacting
overall customer satisfaction.
Earlier work by Hussain et al. (2014) supported these findings, establishing a strong
link between perceived service quality and loyalty among UAE-based airline
customers, including Air Arabia. El Haddad (2019) emphasized that while Air Arabia
maintains high scores for tangibility and cleanliness, gaps remain in customer support
and complaint handling.
From a digital marketing perspective, Al Maazmi (2020) and Al Mazmi & Bouziane
(2023) focused on Air Arabia’s use of social media for customer engagement. Their
research revealed that effective online communication not only improves visibility but
also strengthens customer relationships and feedback mechanisms.
29
In practical application, the KPMG UAE Customer Experience Report (2023)
recognized Air Arabia’s significant improvements in digital services, operational
efficiency, and affordability—contributing to a better overall customer experience.
Awards and recognitions, such as the ‘Four-Star Low-Cost Carrier’ by APEX and the
‘OPS Excellence Award (2024),’ further validate these service
advancements.Collectively, these studies underscore that while Air Arabia has made
considerable progress in affordability, digital integration, and visual appeal, continued
investment in human service elements like empathy, personalized service, and post-
flight communication will be vital in enhancing long-term customer satisfaction and
loyalty.
30
these dimensions significantly affect passenger satisfaction across different travel
classes.
El Haddad, R. (2019)
This study evaluates the performance of low-cost airlines operating in the MENA
region, including Air Arabia, using customer satisfaction metrics derived from the
SERVQUAL model. The research involved 200 participants and identified a
significant expectation-perception gap, particularly in responsiveness (delays in
customer support) and empathy (handling complaints). However, tangibility (clean
cabins, clear signage) scored high. The paper recommends more training for front-line
staff and streamlined complaint resolution channels to enhance perceived service
quality and brand trust.
Al Maazmi, F. Q. (2020)
Social Media Marketing Strategies: Air Arabia as a Study. This research assesses Air
Arabia's social media marketing strategies and their effectiveness in customer
engagement. Through qualitative content analysis of the airline's social media
channels, the study finds that Air Arabia's strategy involves regular posting of videos
and photographs, with Facebook being the most subscribed platform. The strategic use
of social media has provided a competitive advantage by enhancing brand visibility
and customer interaction. The study recommends that Air Arabia continue to build its
31
brand presence and actively listen to customer feedback online to expand its customer
base.
Title: Air Arabia wins ‘Four-Star Low-Cost Carrier 2022’ rating by APEX
Based on real passenger reviews via APEX (Airline Passenger Experience
Association), Air Arabia was recognized for achieving a four-star rating in the low-
cost category. The rating was based on key areas such as seat comfort, onboard catering
(SkyCafe), cabin cleanliness, and staff service. The award is a testament to Air
Arabia’s consistent efforts to maintain quality within a budget-friendly model. This
also reflects a rising trend of low-cost carriers investing more in customer experience
to improve loyalty and competitiveness.
Hassan, S. W. U., Gul, S., Jameel, K., Akhtar, C. S., & Naveed, S. (2023)
32
boost customer satisfaction and competitive advantage, especially in the low-cost
sector.
The Impact of Air Arabia Social Media Tactics on the Airline’s Communication with
Customers. This study evaluates the role of social media platforms in Air Arabia's
communication and customer engagement strategies. Analyzing data from the airline's
social media accounts between January and November 2019, the research indicates
that strategic use of social media channels has provided Air Arabia with a competitive
advantage. Employees believe that marketing through these platforms has contributed
to increased revenues. However, the study also notes the need for improvements in the
performance of the social media strategy, including marketing approaches,
engagement, and customer loyalty.
33
flexibility. The study highlights that Air Arabia is attempting to differentiate itself
within the low-cost model by enhancing service quality while maintaining
affordability. However, the paper warns of brand confusion and recommends careful
positioning.
Air Arabia honoured with 2024 OPS Award for commitment to operational excellence
Air Arabia received the 2024 “Corporate Award in the Airline Category” at the OPS
Forum in Greece for its exceptional operational efficiency and customer satisfaction.
The airline’s on-time performance, minimal flight disruptions, transparent
communication, and consistent safety records were key reasons for the award. These
factors directly contribute to customer satisfaction, especially for business and frequent
travelers. The recognition highlights Air Arabia’s successful integration of technology
and customer feedback to optimize service delivery and maintain cost-effectiveness.
34
CHAPTER 5
RESEARCH METHODOLOGY
RESEARCH DESIGN
Problem definition
Research design
Field work
Report presentation
35
RESEARCH PROBLEM
RESEARCH DESIGN
• The type of research is descriptive research design and find out what
marked demand for Air Arabia compared to other airlines.
RESEARCH METHODOLOGY
SAMPLE SIZE
The sample size included a total of 200 respondents in Air Arabia office
at Chennai only.
RESEARCH INSTRUMENT
SAMPLING PROCESS
The sampling process consists of the following sequential steps.
POPULATION
The population survey is taken from the employees and Customers of Air
Arabia.
36
PERIOD OF STUDY
The study has been conducted during March 2025.
SAMPLE DESIGN
Sampling is a commonplace idea. Everyone is accustomed to drawing
conclusions about a large group based on a small sample.
For this project Judgment sampling has been adopted, items for the
sample are selected deliberately by the researcher; his choice concerning the
items remains supreme.
The size of the sample is 200. This was decided upon after considering
the specified level of confidence require, standard deviation of the population
and the guidance provided by the guide along with operational ease for analysis
and interpretation. The study was done at Air Arabia at Chennai only.
FIELD WORK
Fieldwork of field operation is the phase, which contacts respondent,
administers the data collection instrument; records the data and returns the data
to a central location for processing.
• Primary Data
• Secondary Data
37
PRIMARY DATA
SECONDARY DATA
Secondary data was already collected from various books, articles,
company files, records, database, Internet, pamphlets etc.
DESIGN OF QUESTIONNAIRE
In the design of the questionnaire sufficient care has been taken to avoid
Ambiguity, leading and misleading questions and personal questions. Sequence
in questioning and length of questionnaire has been done carefully. The
questions should reflect the main objective of the survey, that is, the inclusion of
every item in a questionnaire should give an answer that is significant for his
central problem. Developing a questionnaire can be thought of as moving from
the „inside‟ outward.
The researcher should lay out tentatively the logical implications of his
problem and then prepare questions, which are relevant for these logical
implications. The researcher should consult colleagues, friends and experts on
the problem to get their thinking on the problem.
38
STATISTICAL TOOLS AND ANALYSIS
CHI-SQUARE TEST
39
Were,
O = Observed frequency
E = Expected frequency
E=
(Grand total)
Obtain the difference observed and expected frequencies and find out the
40
²/Eij; this is the required χ² values.
• The χ² value obtained as such should be compared with relevant table
value of χ² and the inference should be drawn.
PERCENTAGE METHOD
Percentage refers to a special kind of ratio. Percentages are used in
making comparisons between two or more series of data. Percentages are used
No. of respondents
Percentage of respondents = -------------------------------- 100
Total respondents
CORRELATION METHOD
Correlation is measured by a correlation coefficient (r), quantifies the strength and
direction of a linear relationship between two variables, ranging from -1 (perfect
negative
correlation) to +1 (perfect positive correlation), with 0 indicating no linear relationship.
𝑟 = 𝑛(𝛴𝑥𝑦) − (∑𝑥)(∑𝑦) √[𝑛𝛴𝑥2 − (𝛴𝑥) 2][𝑛𝛴𝑦 2 − (𝛴𝑦) 2]
41
CHAPTER – 6
ANALYSIS AND INTERPRETATION
TABLE NO: 1
1. 18 – 25 Years 80 40%
2. 25 - 35 Years 20 10%
3. 35 – 45 Years 24 12%
4. 45 – 55 Years 56 28%
Inference
From the above table it is revealed that 40% of the respondents are
18 - 25 years, 10% of the respondents are between 25-35 years, 12% of the
respondents are between 35-45 years, 28% of the respondents are 45 – 55
years and 10 of the respondents are above 55 years.
42
CHART NO:1
43
TABLE NO: 2
GENDER CATEGORY
1. Male 94 47%
Inference
From the above table it reveals that 47% of the respondents are male and
53% of the respondents are female.
44
CHART NO:2
GENDER CLASSIFICATION
Male
Female
47%
53%
45
TABLE NO. 3
2. Unmarried 90 45%
Inference
From the above table it is found that 55% of the respondents are
married, and 45% of the respondents are unmarried.
46
CHART NO:3
MARRIED
UNMARRIED
47
TABLE NO. 4
1. Student 54 27%
2. Employee 80 40%
3. Homemaker 14 7%
4. Professional 2 1%
5. Businessperson 42 21%
6. Others 8 4%
Inference
From the above table it reveals that 54% of the respondents are students,
40% of the respondents are employed, 7% of the respondents are homemaker,
1% of the respondents are professionals, 21% of the respondents are
businesspersons and 4% of the respondents are doing some other occupations.
48
CHART NO:4
EMPLOYMENT STATUS
49
TABLE NO. 5
2. 250000-500000 44 22%
3. 600000-1000000 26 13%
Inference
From the above table it reveals that 12% of the respondents annual
income is below 250000, 22% of the respondent’s annual income was between
Rs.250000to Rs.500000, 13% of the respondent’s annual income was between
Rs.600000 to Rs. 1000000, 21% of the respondent’s annual income was above
Rs. 1000000 and 32% of the respondents comes under not applicable criteria.
50
CHART NO:5
ANNUAL INCOME
51
TABLE NO : 6
1. Business 70 35%
2. Education 30 15%
4. Medical 14 7%
5. Other 8 4%
Inference
From the above table it is reveals that, 35% of the respondents purpose
of travel by Air Arabia was Business, 15% of the respondents purpose was
Education, 39% of the respondents purpose was Leisure Travel , 7% of the
respondents purpose was Medical and 4% of the respondents traveled for other
purposes.
52
CHART NO:6
PURPOSE OF TRAVEL
53
TABLE NO : 7
AIR ARABIA
1. Daily 12 6%
2. Weekly 8 4%
3. Monthly 20 10%
Inference
From the above table it is found that, 6% of the respondents frequency of
travel by Air Arabia was Daily,4% of the respondents travel frequency was
Weekly, 10% of the respondents travel frequency was Monthly and 80% of the
respondents travel frequency was Occasionally.
54
CHART NO:7
FREQUENCY OF TRAVEL
55
TABLE NO : 8
1. High Expensive 12 6%
2. Expensive 38 19%
3. Affordable 20 10%
Inference
From the above table it reveals that, 6% of the respondents opinion towards the Airline
fare was high expensive, 19% of the respondents opinion was expensive, 10% of the
respondents opinion was affordable and only 65% of the respondents opinion was
reasonable .
56
CHART NO:8
57
TABLE NO : 9
3. Neutral 26 13%
4. Dissatisfied 2 1%
Inference
From the above table it reveals that 20% of the respondents satisfaction
level towards response of queries was highly satisfied, 66% of the respondents
were satisfied, 13% of the respondents satisfaction level was Neutral and 1% of
the respondents was dissatisfied.
58
CHART NO:9
70%
60%
50%
40%
30%
20%
10%
0%
HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED
59
TABLE NO : 10
ISSUES
1. Yes 10 5%
2. No 170 85%
3. Maybe 20 10%
Inference
From the above table it reveals that, 5% of the respondents opinion
towards the baggage screening issues was yes , 85 % of the respondents opinion
was no and 10% of the respondents answered maybe.
60
CHART NO:10
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes No Maybe
61
TABLE NO : 11
2. Satisfied 88 44%
3. Neutral 48 24%
4. Dissatisfied 20 10%
Inference
From the above table it reveals that 22% of the respondents satisfaction
level towards response towards baggage handling was highly satisfied, 44% of
the respondents were satisfied, 24% of the respondents satisfaction level was
Neutral and 10% of the respondents were dissatisfied.
62
CHART NO:11
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Highly Satisfied Satisfied Neutral Dissatisfied
63
TABLE NO : 12
2. No 22 11%
Inference
From the above table it reveals that, 89% of the respondent’s opinion
towards the check-in formalities are easy and 11% of the respondents opinion
towards the check-in formalities are not easy.
64
CHART NO:12
65
TABLE NO : 13
1. Yes 30 15%
2. No 170 85%
Inference
From the above table it reveals that, 15% of the respondents opinion
towards the rebooked was yes and 85% of the respondents opinion was no.
66
CHART NO:13
67
TABLE NO : 14
1. Yes 56 28%
2. No 144 72%
Inference
From the above table it reveals that 28% of the respondents opinion
towards the rerouted was yes and 72% of the respondents opinion was no.
68
CHART NO:14
69
TABLE NO : 15
2. Satisfied 80 40%
3. Neutral 34 17%
4. Dissatisfied 16 8%
Inference
From the above table it reveals that 35% of the respondents satisfaction
level towards response for inflight services was highly satisfied, 40% of the
respondents were satisfied, 17% of the respondents satisfaction level was
Neutral and 8% of the respondents were dissatisfied.
70
CHART NO:15
40%
35%
30%
25%
20%
15%
10%
5%
0%
Highly Satisfied Satisfied Neutral Dissatisfied
71
TABLE NO : 16
2. Satisfied 80 40%
3. Neutral 56 28%
4. Dissatisfied 14 7%
Inference
From the above table it reveals that 25% of the respondents satisfaction
level towards response for inflight meals was highly satisfied, 40% of the
respondents were satisfied, 28% of the respondents satisfaction level was
Neutral and 7% of the respondents were dissatisfied.
72
CHART NO:16
40%
35%
30%
25%
20%
15%
10%
5%
0%
Highly Satisfied Satisfied Neutral Dissatisfied
73
TABLE NO : 17
2. No 74 37%
Inference
From the above table it reveals that 63% of the respondents voted yes and
37% of the respondents opinion was no.
74
CHART NO:17
75
TABLE NO : 18
2. No 12 6%
Inference
From the above table it reveals that 94% of the respondents voted yes and
6% of the respondents opinion was no.
76
CHART NO:18
Yes, 94%
77
TABLE NO : 19
2. Satisfied 78 39%
3. Neutral 22 11%
4. Dissatisfied 20 10%
Inference
From the above table it reveals that 40% of the respondents were highly
satisfied, 39% of the respondents were satisfied, 11% of the respondents
satisfaction level was Neutral and 10% of the respondents were dissatisfied.
78
CHART NO:19
79
TABLE NO : 20
RELATIONSHIP BETWEEN
Count
RECOMMEND Total
YES NO
18-25 79 8 87
25-35 40 0 40
AGE 35-45 19 2 21
45-55 31 1 32
ABOVE 55 19 1 20
Chi-Square Tests
Linear-by-Linear
.887 1 .346
Association
80
Inference: The relationship between age and recommendation is not statistically
significant (Chi-square p = 0.278). Majority of all age groups are likely to
recommend, especially the 18–25 age group. The variation across age groups doesn’t
significantly influence recommendation behavior.
Symmetric Measures
CHART NO:20
81
TABLE NO : 21
RELATIONSHIP BETWEEN
Count
FLIGHTFARE Total
BELOW 2LPA 1 1 10 0 12
2LPA-5LPA 2 8 26 8 44
INCOME 6LPA-10LPA 1 3 21 1 26
ABOVE 10LPA 3 12 35 4 54
NOT APPLICABLE 1 14 43 6 64
Chi-Square Tests
a. 10 cells (50.0%) have expected count less than 5. The minimum expected
count is .48.
82
Inference: There is no significant association between income level and perception of
flight fare (p = 0.500). Respondents across all income groups largely perceive flight
fare as "Reasonable," including the highest income category and those who marked
“Not Applicable.
Symmetric Measures
CHART NO:21
83
TABLE NO : 22
RELATIONSHIP BETWEEN
Count
RECOMMEND Total
YES NO
DAILY 2 0 2
WEEKLY 9 0 9
FREQUENCY
MONTHLY 39 1 40
Chi-Square Tests
a. 4 cells (50.0%) have expected count less than 5. The minimum expected
count is .12.
84
Inference: There’s no significant relationship between travel frequency and
likelihood to recommend (p = 0.557). Most people who travel occasionally still
recommend the service, indicating that even infrequent users have a positive
perception.
Symmetric Measures
CHART NO:22
85
TABLE NO : 23
RELATIONSHIP BETWEEN
Count
GENDER Total
MALE FEMALE
DAILY 1 1 2
WEEKLY 1 8 9
FREQUENCY
MONTHLY 22 18 40
OCCASIONALLY 75 74 149
Chi-Square Tests
a. 4 cells (50.0%) have expected count less than 5. The minimum expected
count is .99.
86
Inference: Gender does not significantly influence the frequency of air travel (p =
0.120). Both males and females show similar distribution patterns, especially in the
“Occasionally” category.
Symmetric Measures
CHART NO:23
87
TABLE NO : 24
RELATIONSHIP BETWEEN
Count
CHECKINEXPRIENCE Total
YES NO
18-25 75 12 87
25-35 35 5 40
AGE 35-45 20 1 21
45-55 29 3 32
ABOVE 55 19 1 20
Chi-Square Tests
a. 4 cells (40.0%) have expected count less than 5. The minimum expected
count is 2.20.
88
Inference: The association between age and check-in experience is *not statistically
significant* (p = 0.655). However, all age groups reported a predominantly positive
check-in experience, indicating consistent service quality across age demographics.
Symmetric Measures
CHART NO:24
89
TABLE NO : 25
RELATIONSHIP BETWEEN
Count
BAGGAGEHANDLING Total
18-25 13 11 12 36 15 87
25-35 1 0 7 20 12 40
AGE 35-45 0 1 3 13 4 21
45-55 2 4 4 13 9 32
ABOVE 55 0 1 5 7 7 20
Total 16 17 31 89 47 200
Chi-Square Tests
a. 13 cells (52.0%) have expected count less than 5. The minimum expected
count is 1.60.
90
Inference: While the Pearson Chi-square (p = 0.082) indicates a borderline non-
significant result, the Likelihood Ratio (p = 0.018) and Spearman Correlation (p =
0.010) suggest a weak positive relationship between age and better baggage handling
experience. Older age groups tend to give slightly better ratings.
Symmetric Measures
CHART NO:25
91
TABLE NO : 26
RELATIONSHIP BETWEEN
Count
INFLIGHTMEALS Total
MALE 5 6 21 40 27 99
GENDER
FEMALE 9 13 15 41 23 101
Total 14 19 36 81 50 200
Chi-Square Tests
a. 0 cells (0.0%) have expected count less than 5. The minimum expected
count is 6.93.
Inference: There is *no significant association between gender and rating of in-flight
meals (p = 0.284). Both male and female respondents show similar patterns in meal
satisfaction, with most ratings clustered around 4 and 5 stars.
92
Symmetric Measures
CHART NO:26
93
TABLE NO : 27
RELATIONSHIP BETWEEN
Count
FREQUENCY Total
BELOW 2LPA 0 0 4 8 12
2LPA-5LPA 1 1 14 28 44
INCOME 6LPA-10LPA 0 1 2 23 26
ABOVE 10LPA 1 3 10 40 54
NOT APPLICABLE 0 4 10 50 64
Chi-Square Tests
a. 11 cells (55.0%) have expected count less than 5. The minimum expected
count is .12.
94
Inference: No statistically significant association (p = 0.437) was found between
income level and frequency of travel. However, people earning above 10 LPA and
those in the "Not Applicable" income category travel more occasionally, showing a
slight concentration in that segment.
Symmetric Measures
CHART NO:27
95
CHAPTER – 7
FINDINGS
1. The majority (80%) of the respondents are between 18-25 years age group.
2. The majority (53%) of the respondents are female.
3. The majority (56%) of the respondents are single.
4. The majority (40%) of the respondents’ occupational status was employed.
5. The majority (29%) of the respondents selected not applicable for annual
income.
6. The majority (82%) of the respondents travel frequency by Air Arabia was
occasionally.
7. The majority (29%) of the respondents are travel by air Arabia for Business
purpose.
8. The majority (65%) of the respondent’s opinion towards the fare in Airlines was
reasonable.
9. The majority (66%) of the respondents’ satisfaction level was Good
towards the response of queries from Air Arabia staffs.
10. The majority (85%) of the respondents’ opinion towards the baggage
screening issues was no.
11. The majority (72%) of the respondents’ opinion towards the rebooked was
no.
12. The majority (85%) of the respondents’ opinion towards the rerouted was
no.
13. The majority (89%) of the respondents’ opinion towards the check-in
formalities is not easy.
14. The majority (44%) of the respondents’ opinion on the baggage handling were
satisfied.
15. The majority (40%) of respondents’ opinions regarding the safety inflight
measures were satisfied.
96
16. The majority (40%) of respondents’ opinions about the in-flight meals were
satisfied.
17. The majority (63%) of respondents voted yes for the recommendation of Air
Arabia to others.
18. The majority (94%) of respondents voted yes for the recommendation of Air
Arabia from Chennai International Airport.
19. The majority (40%) of respondents’ opinions regarding the overall services
were highly satisfied.
20. The majority across all age groups, especially 18–25, recommended the
service, showing overall satisfaction is not age-dependent.
21. Most respondents, irrespective of income, found the flight fare to be
reasonable, indicating consistent pricing perception across income levels.
22. Occasional travelers made up the majority and mostly recommended the
service, suggesting positive impressions even from infrequent users.
23. Both male and female respondents predominantly traveled occasionally,
reflecting similar flying habits regardless of gender.
24. All age groups reported mostly positive check-in experiences, indicating
uniform service quality across age demographics.
25. Most age groups rated baggage handling positively, with a slight trend toward
better ratings among older passengers.
26. Both genders gave high ratings (mostly 4 and 5 stars) for in-flight meals,
showing overall satisfaction irrespective of gender.
97
SUGGESTIONS
• Redesign the mobile app and website for smoother booking and check-in.
• Introduce real-time flight updates via app notifications.
• Add AI-powered chat support for quick passenger queries.
• Enhance Air Rewards with better redemption offers and tier benefits.
• Partner with hotels, retail, and transport for wider rewards.
98
7. Sustainability & Eco-Friendly Measures
9. Airport Experience
99
CONCLUSION
This study has provided deep insight into the level of customer contentment towards Air
Arabia, specifically focusing on its operations at Chennai International Airport. As a growing
hub in South India, Chennai Airport plays a significant role in connecting Indian travelers to
the Middle East, Africa, and Europe through Air Arabia. The findings of this report reflect not
only the passengers’ experiences but also point towards broader strategic implications for the
airline’s future growth and service improvement.
100
Digital Experience and Customer Engagement
Air Arabia’s website and app were functional but not user-friendly. Users reported hard
navigation, delayed updates, and a lack of personalization. Inconsistent customer service
response via calls and online chat was a concern.
Such localized strategies can improve customer experience and serve as a blueprint for other
Indian airports.
101
BIBLIOGRAPHY
102
15. Indian Ministry of Civil Aviation. (2023). Regional Connectivity and Passenger
Experience Reports.
16. Chowdhury, M. S. (2012). Service quality and customer satisfaction: A study on
airlines industry. Journal of Business and Management, 3(3), 1–11.
17. Salem, A., & Elbaz, A. M. (2022). Exploring passenger satisfaction in Middle East
low-cost airlines: A comparative analysis. International Journal of Tourism &
Hospitality, 11(1), 45–60.
18. Google Scholar. (2024). Search term: “Customer satisfaction in airline industry India
Air Arabia”. Use for peer-reviewed articles.
103
APPENDIX
Male
Female
Prefer Not To Say
Under 18
18–25
25–35
35–45
45–55
Above 55
Other:
Single
Married
Divorced
104
6. Select Your Employment Status
Student
Business
Employee
Retired
Other:
Not applicable
Below ₹2,50,000
₹2,50,000 – ₹5,00,000
₹6,00,000 – ₹10,00,000
Above ₹10,00,000
Other:
Business
Leisure
Medical
Educational
Other:
Daily
Weekly
Monthly
Occasionally
Other:
105
10. Your Opinions Regarding Air Arabia Flight Fare
Extremely Expensive
Expensive
Reasonable
Affordable
Other:
Excellent
Good
Fair
Poor
12. Have You Ever Faced Baggage Related Issues With Us?
Yes
No
Maybe
13. How satisfied are you with the baggage handling (speed, safety, no damage)?
Options: 1 – 2 – 3 – 4 – 5
Yes
No
106
16. Did You Ever Re-book Your Flight?
Yes
No
Maybe
17. Your Rating Towards the Inflight Safety Measures For Passengers
Options: 1 – 2 – 3 – 4 – 5
Yes
No
Maybe
107