Your SlideShare is downloading. ×
 
AGENDA <ul><li>Indian Aviation Industry </li></ul><ul><li>Kingfisher Airlines </li></ul><ul><ul><li>SLEPT analysis </li></...
INDIAN AVIATION INDUSTRY <ul><li>One of the Fastest Growing Aviation Market </li></ul><ul><li>There are approximately one ...
INDIAN AVIATION INDUSTRY <ul><li>Over 1100 registered aircrafts  </li></ul><ul><li>By 2020, Indian airports are estimated ...
GROWTH OF THE AVIATION INDUSTRY
CLASSIFICATION <ul><li>Scheduled air transport service </li></ul><ul><ul><li>Domestic and international airlines </li></ul...
ABOUT KINGFISHER AIRLINES <ul><li>Kingfisher Airlines  started it's operations on  May 9th, 2005  and they began by leasin...
OFFERINGS <ul><ul><li>Kingfisher Airlines offers (First to do this) </li></ul></ul><ul><ul><li>Brand new aircraft,  </li><...
SLEPT ANALYSIS
SOCIAL FACTORS <ul><li>Development of cities leads to better services and airports </li></ul><ul><li>Employment opportunit...
LEGAL FACTORS <ul><li>Bilateral treaties </li></ul><ul><li>Airlines acquisitions and the leasing cost </li></ul><ul><li>In...
ECONOMIC FACTORS <ul><li>Contribution to the Indian economy </li></ul><ul><li>Rising cost of fuel </li></ul><ul><li>Invest...
POLITICAL REGULATORS <ul><li>Directorate General of Civil Aviation  </li></ul><ul><ul><li>Controls Flying Licenses, Pilots...
POLITICAL FACTORS <ul><li>Foreign airlines are not allowed to buy a stake in domestic airlines </li></ul><ul><li>The five ...
POLITICAL FACTORS - FDI <ul><li>FDI limits:  </li></ul><ul><ul><li>100% for Greenfield airports </li></ul></ul><ul><li>74%...
TECHNOLOGICAL FACTORS <ul><li>The growth of e-commerce and e-ticketing </li></ul><ul><li>Mobile and online check-in </li><...
PORTERS FIVE FORCE  MODEL
SWOT ANALYSIS
KINGFISHER AIRLINES INTERNATIONAL
<ul><li>International Routes Operated By Kingfisher :- -  Bangalore-London Heathrow Airport- (Began Sep 3rd, 08) - Mumbai-...
<ul><li>Plans to strengthen its overseas operations with the induction of upto 5 more A330s during 2010 </li></ul><ul><li>...
EFFECTS OF SLOWDOWN ON  KINGFISHER AIRLINES
EFFECTS OF SLOWDOWN ON KFA <ul><li>Due to decline in the passenger traffic and intense competition in the industry, the av...
<ul><li>Large part of its fleet is leased and not owned </li></ul><ul><li>Returning surplus aircrafts and is deferring the...
REASONS FOR KFA IN LOSSES <ul><li>Huge interest outgo due to heavy investments in purchase of aircrafts </li></ul><ul><li>...
SUGGESTIONS TO KFA <ul><li>Remove the flights from low frequency routes </li></ul><ul><li>Try to bring down the cost-per-f...
PRESENTED BY: <ul><li>APARNA NARAYANAN – 07 </li></ul><ul><li>AMOL SHAH – 85 </li></ul><ul><li>VENKATESH SHANKAR - 111 </l...
THANK YOU
Upcoming SlideShare
Loading in...5
×

Kingfisher Airlines

20,345

Published on

An analysis done on Kingfisher Airlines(India), under the subject International Business. The focus was more on SLEPT analysis. The presentation was made by Final Year Management students at SIESCOMS b-school, Nerul, Navi Mumbai, Maharashtra, India. Source for the presentation : Internet and Kingfisher Airline Website

Published in: Business
7 Comments
41 Likes
Statistics
Notes
No Downloads
Views
Total Views
20,345
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
7
Likes
41
Embeds 0
No embeds

No notes for slide

Transcript of "Kingfisher Airlines"

  1. 2. AGENDA <ul><li>Indian Aviation Industry </li></ul><ul><li>Kingfisher Airlines </li></ul><ul><ul><li>SLEPT analysis </li></ul></ul><ul><ul><li>Porter’s 5 Force Model </li></ul></ul><ul><ul><li>SWOT analysis </li></ul></ul><ul><ul><li>International </li></ul></ul><ul><li>Effects of Slowdown on Kingfisher Airlines </li></ul><ul><li>Our Suggestions </li></ul>
  2. 3. INDIAN AVIATION INDUSTRY <ul><li>One of the Fastest Growing Aviation Market </li></ul><ul><li>There are approximately one billion people & only about 0.05% of them fly </li></ul><ul><li>More and more middle class families now prefer air travel to traditional rail travel </li></ul><ul><li>The Indian travel market is expected to triple to $51 billion by 2011 from $16.3 billion in 2005-06 </li></ul><ul><li>AAI totally manages 127 airports </li></ul><ul><ul><li>Includes 13 International airports </li></ul></ul><ul><ul><li>7 Custom airports </li></ul></ul><ul><ul><li>80 Domestic airports </li></ul></ul><ul><ul><li>28 Civil enclaves </li></ul></ul>
  3. 4. INDIAN AVIATION INDUSTRY <ul><li>Over 1100 registered aircrafts </li></ul><ul><li>By 2020, Indian airports are estimated to handle 100 million passengers, including 60 million domestic passengers </li></ul><ul><li>The amount of cargo handled will fall in the range of 3.4 million tonnes per annum   </li></ul>
  4. 5. GROWTH OF THE AVIATION INDUSTRY
  5. 6. CLASSIFICATION <ul><li>Scheduled air transport service </li></ul><ul><ul><li>Domestic and international airlines </li></ul></ul><ul><li>Non-scheduled air transport service </li></ul><ul><ul><li>Which includes charter operators and air taxi operators </li></ul></ul><ul><li>Air cargo service </li></ul><ul><ul><li>Air transportation of cargo and mail </li></ul></ul><ul><li>Players in aviation industry can be categorized in three groups: </li></ul><ul><ul><li>Public players </li></ul></ul><ul><ul><li>Private players </li></ul></ul><ul><ul><li>Start up players  </li></ul></ul>
  6. 7. ABOUT KINGFISHER AIRLINES <ul><li>Kingfisher Airlines started it's operations on May 9th, 2005 and they began by leasing four Airbus 320 flights </li></ul><ul><li>Coined the term &quot;Value carrier&quot; : that means they are not Like Air Deccan & will offer some frills </li></ul><ul><li>Kingfisher has been certified as being one of six airlines in the world to have a five star rating from Skytrax </li></ul><ul><li>Kingfisher Airlines has defined target audience - SEC A, SEC B+ (socio-economic class) in the age group of 25-45 years of age </li></ul><ul><li>In July 2008 , Kingfisher's share of Indian aviation market stood at 14.3% while its sister carrier Air Deccan's share stood at 13.5% </li></ul>
  7. 8. OFFERINGS <ul><ul><li>Kingfisher Airlines offers (First to do this) </li></ul></ul><ul><ul><li>Brand new aircraft, </li></ul></ul><ul><ul><li>Personal assistance in baggage handling </li></ul></ul><ul><ul><li>Video on demand services </li></ul></ul><ul><ul><li>Designer interiors </li></ul></ul><ul><ul><li>Gourmet cuisine and </li></ul></ul><ul><ul><li>In-flight entertainment (there are 5 channels of FUN TV and 10 channels of Kingfisher Radio, which are personalized) </li></ul></ul>
  8. 9. SLEPT ANALYSIS
  9. 10. SOCIAL FACTORS <ul><li>Development of cities leads to better services and airports </li></ul><ul><li>Employment opportunities </li></ul><ul><li>Safety regulations </li></ul><ul><li>Airlines has become a commodity business </li></ul>
  10. 11. LEGAL FACTORS <ul><li>Bilateral treaties </li></ul><ul><li>Airlines acquisitions and the leasing cost </li></ul><ul><li>In the United States, low-cost airlines often operated from small airports that charged lower fees and that did not suffer from the congestion at large airports </li></ul><ul><li>In India, however, government policy did not allow the creation of airports closer than 150 km from each other, and the old airports at Bangalore and Hyderabad were closed down when the new ones were started </li></ul><ul><li>M&A Laws </li></ul>
  11. 12. ECONOMIC FACTORS <ul><li>Contribution to the Indian economy </li></ul><ul><li>Rising cost of fuel </li></ul><ul><li>Investment in the sector of aviation </li></ul><ul><li>The growth of the middle income group family affects the aviation sector </li></ul><ul><li>Shortage of the infrastructure capacity </li></ul>
  12. 13. POLITICAL REGULATORS <ul><li>Directorate General of Civil Aviation </li></ul><ul><ul><li>Controls Flying Licenses, Pilots, certifying aircrafts, and all procedures to govern airports and airspace </li></ul></ul><ul><li>Bureau of Civil Aviation Security </li></ul><ul><li>AAI (Airport Authority of India) : </li></ul><ul><ul><li>Assigned the responsibility of managing national and international airports and administration through ATC (Air Traffic Control) </li></ul></ul><ul><li>IATA (International Air Transport Association) </li></ul><ul><li>International Route Regulation </li></ul>
  13. 14. POLITICAL FACTORS <ul><li>Foreign airlines are not allowed to buy a stake in domestic airlines </li></ul><ul><li>The five categories proposed in the Cabinet note for FDI review include: </li></ul><ul><ul><li>Maintenance </li></ul></ul><ul><ul><li>Training facilities </li></ul></ul><ul><ul><li>Cargo handling </li></ul></ul><ul><ul><li>Passenger handling </li></ul></ul><ul><ul><li>Chartered services </li></ul></ul>
  14. 15. POLITICAL FACTORS - FDI <ul><li>FDI limits: </li></ul><ul><ul><li>100% for Greenfield airports </li></ul></ul><ul><li>74% for the existing airports </li></ul><ul><li>100% through special permission </li></ul><ul><li>100% for NRIs </li></ul><ul><li>FDI ceiling in Airline sector is 49% currently </li></ul>
  15. 16. TECHNOLOGICAL FACTORS <ul><li>The growth of e-commerce and e-ticketing </li></ul><ul><li>Mobile and online check-in </li></ul><ul><li>Modernisation and privatisation of the airports </li></ul><ul><li>Upgradation of ATC </li></ul>
  16. 17. PORTERS FIVE FORCE MODEL
  17. 18. SWOT ANALYSIS
  18. 19. KINGFISHER AIRLINES INTERNATIONAL
  19. 20. <ul><li>International Routes Operated By Kingfisher :- - Bangalore-London Heathrow Airport- (Began Sep 3rd, 08) - Mumbai-London Heathrow Airport- (Began Jan 5th, 09) - Bangalore-Colombo- (Began Jan 19th, 2009) - Chennai-Colombo- (Began Jan 19th, 2009) </li></ul><ul><li>Kingfisher Airlines plans to add several destinations such as Dubai, Singapore, Bangkok, Dhaka, Hong Kong, Kuala Lumpur and Maldives in the first quarter of 2009 </li></ul><ul><li>Kingfisher Airlines announced its alliance with Hilton HHonors the guest rewards program </li></ul>KINGFISHER GOING INTERNATIONAL
  20. 21. <ul><li>Plans to strengthen its overseas operations with the induction of upto 5 more A330s during 2010 </li></ul><ul><li>Break-even </li></ul><ul><ul><li>They should get revenues of around $3,00,000 a flight from Bangalore-London and Mumbai–London </li></ul></ul><ul><ul><li>The airline has already got a 70 per cent seat factor on its Bangalore-London route and about 60 per cent on the Mumbai-London route </li></ul></ul><ul><ul><li>For short haul international flights, it could deploy its low fare offering, Kingfisher Red </li></ul></ul>KINGFISHER GOING INTERNATIONAL
  21. 22. EFFECTS OF SLOWDOWN ON KINGFISHER AIRLINES
  22. 23. EFFECTS OF SLOWDOWN ON KFA <ul><li>Due to decline in the passenger traffic and intense competition in the industry, the aviation industry considering allowing foreign airlines to buy up to 25% stake in the domestic airlines </li></ul><ul><li>Vijay Mallya's Kingfisher Airlines has decided to sell its 25% equity for around Rs 2,000 crore </li></ul><ul><li>- The decision comes as a part of the carrier's operational and financial restructuring plans </li></ul><ul><li>- International airlines like Virgin Atlantic, Kuwait-based low-cost airline Jazeera Airways and British Airways Plc have expressed their interests in buying stakes in Indian carriers </li></ul>
  23. 24. <ul><li>Large part of its fleet is leased and not owned </li></ul><ul><li>Returning surplus aircrafts and is deferring the deliveries of the new ones </li></ul><ul><li>Airline is also returning 9 aircrafts to the leasing companies and some of them have already been returned </li></ul><ul><li>Kingfisher's operations shrank 21% in 6 months to December 2008 </li></ul><ul><li>Kingfisher Airlines posted a loss of Rs 626 crore in the third quarter ended December 31, 2009 </li></ul><ul><li>Kingfisher will not take delivery of any wide-body aircraft before 2012 </li></ul>EFFECTS OF SLOWDOWN ON KFA Contd…
  24. 25. REASONS FOR KFA IN LOSSES <ul><li>Huge interest outgo due to heavy investments in purchase of aircrafts </li></ul><ul><li>Highly competitive industry </li></ul><ul><li>Non-remunerative airfare structure </li></ul><ul><li>Long gestation periods </li></ul><ul><li>Operating in non-profitable sectors </li></ul><ul><li>High operational costs </li></ul><ul><li>The increase in loss in the quarter was on account of initiation costs of international operations (Rs174 crore) and the exchange rate impact of dollar-denominated expenses (Rs60 crore) </li></ul>
  25. 26. SUGGESTIONS TO KFA <ul><li>Remove the flights from low frequency routes </li></ul><ul><li>Try to bring down the cost-per-flight i f an airport services more number of flights </li></ul><ul><li>Improve revenue-per-passenger </li></ul><ul><li>Avoid aggressive expansion of fleets </li></ul><ul><li>Avoid full-course meals, give snacks </li></ul><ul><li>Try to focus on smaller aircrafts (50-70 seaters) and fuel efficient planes for short distance </li></ul><ul><li>For a long term strategy, internationally focus should remain on one region at a time </li></ul>
  26. 27. PRESENTED BY: <ul><li>APARNA NARAYANAN – 07 </li></ul><ul><li>AMOL SHAH – 85 </li></ul><ul><li>VENKATESH SHANKAR - 111 </li></ul>
  27. 28. THANK YOU

×