VISION “The Kingfisher Airlines family will consistentlydeliver a safe, value based and enjoyable travelexperience to all our guests.”Kingfisher Commenced its operations on May9,2005.Sanjay Agarwal is the current CEO of thecompanyKingfisherAirlines is also the sponsor of F1 racingoutfit, Force India
Top ManagementFinanc Marketin Operation e HR g s
31destinations in India 63 domestic destinations in Focused & Profit making India routes Many Unprofitable routes like Low price compared to King Nasik , Hubli etc. fisher red Strict rules by DGCA on Focus on Low Cost Airlines implementation of Time Table Innovative and radical Operations shifted to New Terminals in Delhi & Mumbai. method so fair line back Focus diverted from high end operations like service to low cost financing , leasing. More Turnaround time as Less Turnaround time as compared to Indigo compared to Kingfisher red
Standardized Aircraft Less Inventory of Spares Less Training Cost Less Maintenance Cost Less Operational cost Effective Terminal Use Easy Scheduling Diversified Aircrafts with differentcapacities High Inventory of Spares High Training Cost High Maintenance Cost High Operational Cost Scheduling difficult More Human Resources required
WHAT WENT WRONG?• Frankly, it was a hassle-free decision for Vijay Mallya to completelysuspend services on his budget carrier Kingfisher Red, says one ofhis close confidantes.• Formerly known as Air Deccan, Mallya had bought 26% stake inthis airline from his friend-cum-neighbour Captain Gopinath in 2007 atRs 550 crore and later picked up additional 20% stake at around Rs155 a share.• The intention of acquiring Deccan was only aimed at givingKingfisher Airlines (KFA) an access to international routes quickly.• Government rules gave overseas flight rights only to airlineswith a minimum of five years experience, and KFA was behind inthe queue after Deccan.•“Mallya never believed in low fare business model even when hebought the airline,” says an official with the airline.
• The dismal performance of Red all these years madeMallya realise that the high profile „classy image‟ of his veryown KFA is taking a hit due to him simultaneously runninga low cost service.• Meanwhile, discontinuing Kingfisher Red may have comeas a surprise to a few at a time when low fare carriers likeJet Lite, Indigo and Spice Jet are doing better then their fullservice peers in terms of load factors--- but the news hasnot sprung any surprise to analysts and Kingfisher Airlines(KFA) officials who had guessed something of this sort wason its way.
RECOMENDATIONS –MARKETING STRATEGY Holiday packages-at unprofitable routes • like Nasik, Aurangabad •Pricing-Should beat par with Spice jet and Indigo •Tie-ups with Corporate •Frequent flyer programmes •Better deals and offers for flyers in air
GENERALRECCOMMENDATIONS back1.Route rationalisation: Cutting unprofitable sectors and services to several cities2.Debt recast: Asking banks to reduce rates or take a cut on loans or find a local investor„3.Raising capital: It has plans to raise $200 million through GDR4.FDI: If the FDI limit is raised and foreign airlines are allowed to buy a stake, Mallya could recapitalise Kingfisher