This project report provides an overview of Kingfisher Airlines. It includes sections on the history of the airline starting in 2005, its vision to consistently deliver a safe and enjoyable travel experience. Services offered by Kingfisher are described, including domestic Kingfisher First and Class seating and amenities. The report also includes analyses of Kingfisher's PESTEL, SWOT, STP, competitors and financial status. Recommendations are provided to address issues and help ensure future success.
A project report on how kingfisher airlines went from being the largest domestic airline to being locked out in the cold. Marketing management, Marketing mix, marketing strategy, productivity and efficiency, current ratio, and it failures
This is the case related to air india, here it is shown that how air india is competing with the other airlines without any good marketing strategy. In this case you will find that air India's customer service in aviation industry. figure and charts would show the financial part of air india.
A project report on how kingfisher airlines went from being the largest domestic airline to being locked out in the cold. Marketing management, Marketing mix, marketing strategy, productivity and efficiency, current ratio, and it failures
This is the case related to air india, here it is shown that how air india is competing with the other airlines without any good marketing strategy. In this case you will find that air India's customer service in aviation industry. figure and charts would show the financial part of air india.
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Strategic Mistakes That Led To The Failure Of Kingfisher AirlinesSourav Giri
Industry Overview
Introduction to UB Group & KFA
Industry Analysis Based on Porters Five Forces
Identification of Crisis & Reasons for Failure
Identification & Analysis of Strategic Risks
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Conclusion
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
Strategic Mistakes That Led To The Failure Of Kingfisher AirlinesSourav Giri
Industry Overview
Introduction to UB Group & KFA
Industry Analysis Based on Porters Five Forces
Identification of Crisis & Reasons for Failure
Identification & Analysis of Strategic Risks
Critical Mistakes in Decision Making & Strategy
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Analysis of kingfisher airlines
1. A PROJECT REPORT ON
SUBMITTED BY,
DEBASIS PATRA
REGISTRATION No-11A6247007
PGDM-AVIATION MANAGEMENT
REGIONAL COLLEGE OF MANAGEMENT
2. CERTIFICATE
This is to certify that the project work
“ANALYSIS OF KINGFISHER AIRLINES” is
a bonafide record of work done by Mr. Debasis
Patra under my guidance in partial fulfillment of
the requirements for the programme in PGDM in
Aviation.
Prof. S. N. Mishra
Head
PGDM- Aviation Management
2
3. ACKNOWLEDGEMENT
I take immense pleasure in thanking Prof. S. N. Mishra,
Head (Aviation Management) for having permitted me to carry
out this project work.
Finally, yet importantly, I would like to express my heartfelt
thanks to my beloved MOTHER for her blessings, my friends,
my seniors for their help and wishes for the successful
completion of this project.
DEBASIS PATRA
3
5. INTRODUCTION:
Kingfisher Airline is a private airline based in Bangalore,
India. The airlines owned by Vijay Mallya of United Beverages
Group. Kingfisher Airlines started its operations on May 9, 2005 with
a fleet of 4 Airbus A320 aircrafts. The airline currently operates on
domestic routes. The destinations covered by Kingfisher Airlines are
Bangalore, Mumbai, Delhi, Goa, Chennai, Hyderabad, Ahmedabad,
Cochin, Guwahati, Kolkata, Pune, Agartala, Dibrugarh, Mangalore
and Jaipur.
In a short span of
time Kingfisher Airline has
carved a niche for itself. The
airline offers several unique
services to its customers.
These include: personal valet
at the airport to assist in
baggage handling and
boarding, accompanied with
refreshments and music at
the airport, audio and video on-demand, with extra-wide personalized
screens in the aircraft and three-course gourmet cuisine.
Kingfisher is one of only 6 airlines in the world to have a 5
star rating from Sky tax, along with Asian Airlines, Malaysia Airlines,
Qatar Airways, Singapore Airlines and Cathay Pacific Airways. In a
short span of time Kingfisher Airline has carved a niche for itself. The
airline offers several unique services to its customers. These include
personal valet at the airport to assist in baggage handling and
boarding, exclusive lounges with private space, accompanied with
refreshments and music at the airport, audio and video on-demand,
5
6. with extra-wide personalized screens in the aircraft, sleeper seats with
extendable footrests, and three-course gourmet cuisine.
HISTORY
Kingfisher Airlines is a subsidiary of the UB Group, one of the
largest beverage companies in the world. The branding of the airline
is linked to that of Kingfisher Beer, India’s largest brewery.
The airline, which is headed by the charismatic Dr Vijay
Mallya, took to the skies in May 2005, and attracted attention for its
high quality product with personal in flight entertainment in every
seat; custom interior designs for each aircraft; valet assistance at
airports and complimentary hot food and beverages. The airline
initially operated a single class service but subsequently introduced a
highly acclaimed First Class, allowing it to compete with Jet Airways
for the high yield corporate market. In addition to its A320 family
aircraft used on domestic routes, Kingfisher Airlines also operates
ATR-72 turboprops on regional sectors.
Under current Indian regulations, which require airlines to
operate 5 years domestic service before being granted international
rights, Kingfisher will not be permitted to operate overseas until 2010.
However, the airline has very clear international ambitions, with an
order book for 45 wide body aircraft, including A330s, A340s, A350s
and A380s.
In just over two years, Kingfisher Airlines has achieved a
market share of 10% and has one of the most aggressive expansion
plans of all Indian carriers during 2007. In Jun-07, it dramatically
increased its influence in the market with the acquisition of a 26%
shareholding in India’s largest LCC, Air Deccan, for approximately
USD130 million, and an open offer for a further 20%. Through
6
7. schedule coordination and joint operations in ground handling,
training, and maintenance, the carriers are projecting annual cost
savings of over USD70 million.
There will also be greater coordination between the two brands,
with Air Deccan to adopt the Kingfisher image in its logo and to
switch to a red, rather than a blue color scheme. The combined
Kingfisher/Deccan group has a market share of just over 30% and a
product range spanning from the price-sensitive, first-time flyer, to
the high yield business traveler, making I tone of the key pillars of the
airline industry.
The airline which started its operation on 9th May 2005,
following the lease of 4 Airbus A320 aircraft. As of July 2007,
Kingfisher operates only on domestic routes; however it has
announced plans to start
flights to the USA with
Airbus A380 aircraft.
The airline is owned by
the United Beverages
Group under the leadership
of Vijay Mallya (which
also owns the popular
Indian beer of the same
name). The airline promises to suit the needs of air travelers and to
provide reasonable air fares. Kingfisher Airlines' main "luxury"
component is its In-Flight Entertainment System, a first among Indian
airlines.
The airliners in-flight Mobile Phone and Internet Services will
be provided by On Air starting 2008 for long haul flights.
7
8. VISION
“The Kingfisher Airlines family will consistently deliver a
safe, value-based and enjoyable travel experience to all our guests.”
VALUES
Safety
This is our overriding value. In our line of business, there is no
compromise.
Service
We are all in the hospitality business; we must always seek to serve
our guests and gain their trust, goodwill and loyalty.
Happiness
We seek to build an organization with people who choose to be
happy, and will Endeavour to influence our guests and co-workers to
be happy too.
Teamwork
We will succeed or fail as a team. Each one of us must respect our
colleagues regardless of their rank, and we must work together to
ensure our mutual success.
Accountability
Each one of us will be held accountable for the successful execution
of our duties, commitments and obligations, and we will strive to lead
by example.
8
9. MISSION
"Kingfisher Airlines will have 'Fly the Good Times' approach
and this will reflect in the experience we will offer to passengers."
SERVICES
DOMESTIC
Kingfisher First
The domestic Kingfisher First seats have a 48 inch seat pitch
and a 126 degree seat recline. There are laptop and mobile phone
chargers on every seat. Passengers can avail of the latest international
newspapers and magazines. There is also a steam ironing service on
board Kingfisher First cabins. Every seat is equipped with a
personalized IFE system with AVOD which offers a wide range of
Hollywood and Bollywood movies, English and Hindi TV
programmers’, 16 live TV channels and 10 channels of Kingfisher
Radio. Passengers also get BOSE noise cancellation headphones.
Domestic Kingfisher First is only available on selected
Airbus A320 family aircraft.
Kingfisher Class
The domestic Kingfisher Class has 32-34 inch seat pitch.
Every seat is equipped with personal IFE systems with
AVOD on-board the Airbus A320 family aircraft. As in Kingfisher
First, passengers can access movies, English and Hindi TV
programmers’, a few live TV channels powered by Dish TV, and
Kingfisher Radio. The screen is controlled by a controller-console on
the seat armrest. Ear cup headphones are provided free of cost to all
passengers. The default channel shows, alternating every few seconds,
9
10. the aero plane’s ground speed, outside temperature, altitude, distance
and time to destination, the position of the aircraft on a graphical map,
and one or more advertisements.
Passengers are served meals on most flights. Before take-off,
passengers are served bottled lemonade.
Economy class meal on-board a Kingfisher Airlines
domestic flight.
Kingfisher Red
After Kingfisher Airlines acquired Air Deccan, its name was
changed to Simplify Deccan and subsequently to Kingfisher Red.
Kingfisher Red is Kingfisher Airline's low-cost class on domestic
routes. A special edition of Cine Blitz magazine is the only reading
material provided.
Kingfisher Airlines is the first airline in India to extend its
King Club frequent flyer program to its low-cost carrier as well.
Passengers can earn King Miles even when they fly Kingfisher Red,
which they can redeem for free tickets to travel on Kingfisher Airlines
or partner airlines.
INTERNATIONAL
Kingfisher First
The international Kingfisher First has full flat-bed seats with
a 180 degree recline, with a seat pitch of 78 inches, and a seat width
of 20-24.54 inches.[32] Passengers are given Merino wool blankets, a
Salvatore Ferragamo toiletry kit, a pyjama to change into, five-course
meals and alcoholic beverages. Also available are in-seat massagers,
chargers and USB connectors.
Every Kingfisher First seat has a 17 inch widescreen
personal television with AVOD touch screen controls and offers 357
10
11. hours of programming content spread over 36 channels, including
Hollywood and Bollywood movies along with 16 channels of live TV,
so passengers can watch their favorite TV programmers’ live. There is
also a collection of interactive games, a jukebox with customizable
playlists and Kingfisher Radio. Passengers are given BOSE noise
cancellation headphones.
The service on board the Kingfisher First cabins includes a
social area comprising a full-fledged bar staffed with a bartender, a
break-out seating area just nearby fitted with two couches and bar
stools, a full-fledged chef on board the aircraft and any-time dining. A
turn-down service includes the conversion of the seat into a fully flat
bed and an air-hostess making the bed when the passenger is ready to
sleep.
Both Kingfisher First and Kingfisher classes feature mood
lighting on the Airbus A330-200 with light schemes corresponding to
the time of day and flight position.
Kingfisher Class
The international Kingfisher Class seats offer a seat pitch of
34 inches, a seat width of 18 inches and a seat recline of 25 degrees (6
inches). Passengers get full length modacrylic blankets, full size
pillows and meals.
Each Kingfisher Class seat has a 10.6 inch widescreen
personal television with AVOD touch screen controls. The IFE is
similar to that of the international Kingfisher First class. It can also be
controlled by a detachable remote-control console fitted in the
armrest. This device can be used to control the IFE, reading-lights,
play games and even has a credit-card swipe for shopping on
Kingfisher's 'Air Boutique'. It also has a facility for sending text-
messages, though the service isn't provided by Kingfisher.
11
12. CARGO
Kingfisher Xpress
Kingfisher Xpress is a new Door-to-Door cargo delivery
service from Kingfisher Airlines. Kingfisher Xpress same day service
will be India's first and only same day delivery by air service.
In-flight entertainment
Kingfisher's IFE system is the Thales Top Series
i3000/i4000 on-board the Airbus A320 family aircraft, and Thales
Top Series i5000 on-board the Airbus A330 family aircraft provided
by the France-based Thales Group.
Kingfisher was the first Indian airline to have in-flight
entertainment (IFE) systems on every seat even on domestic flights.
All passengers were given a "welcome kit" consisting of goodies such
as a pen, facial tissue and headphones to use with the IFE system.
Now, passengers of Kingfisher class are not given "welcome kits" but,
as mentioned earlier, a complimentary bottle of lemonade and
earphones for use with the IFE are still given. The in flight magazines
are special editions of magazines owned by Mallya's media publishing
house (VJM Media) viz. Hi! Blitz for domestic flights and Hi! Living
for international flights. Initially, passengers were able to watch only
recorded TV programming on the IFE system, but later an alliance
was formed with Dish TV to provide live TV in-flight.[34] And in a
marked departure from tradition, Kingfisher Airlines decided to have
an on-screen safety demonstration using the IFE system; however the
conventional safety briefing by the flight attendants still exists on
many flights.
King Club
The Frequent-flyer program of Kingfisher Airlines is called
the King Club in which members earn King Miles every time they fly
12
13. with Kingfisher or its partner airlines, hotels, car rental, finance and
lifestyle businesses. There are four levels in the scheme: Red, Silver,
Gold and Platinum levels. Members can redeem points for over a
number of schemes. Platinum, Gold and Silver members enjoy access
to the Kingfisher Lounge, priority check-in, excess baggage
allowance, bonus miles, and 3 Kingfisher First upgrade vouchers for
Gold membership. Platinum members get 5 upgrade vouchers.
Kingfisher Lounge
Kingfisher Lounges are offered to Kingfisher First
passengers, along with King Club Silver and King Club Gold
members. Lounges are located in:
Bangalore International Airport
Chennai International Airport
Chhatrapati Shivaji International Airport (Mumbai)
Cochin International Airport (Kochi)
Indira Gandhi International Airport (Delhi)
London Heathrow Airport
Netaji Subhash Chandra Bose International Airport (Kolkata)
Rajiv Gandhi International Airport (Hyderabad)
However, note that the airline has suspended operation in
London, Kochi, Kolkata and Hyderabad.
13
14. AWARDS AND ACHIEVEMENTS
Kingfisher Airlines frequent flyer programme, King Club has
won Top Honors at the 21st Annual Freddie Awards in the
Japan, Pacific, Asia and Australia region.
King Club has won the Freddie Awards 2008 in the following
categories:
Best Bonus Promotion
Best Customer Service
Best Member Communications
(First Runner-up)
Best Award Redemption (First
Runner-up)
Best Elite Level (Second
Runner-up)
Best Website (Second Runner-
up)
Program of the Year (Second Runner-up)
Kingfisher Airlines has received three global awards at the
Skytrax World Airline Awards 2010
Named Best Airline In India / Central Asia; Best Cabin Crew –
Central Asia.
Kingfisher RED named Best Low Cost Airline in India / Central
Asia.
NDTV Profit Business Leadership Award for Aviation.
India's only 5 Star airline, rated by Skytrax and 6th airline in the
world.
Rated India's Second Buzziest Brand 2008 by The Brand
Reporter.
Ranked amongst India's Top Service Brands of 2008 by Pitch
Magazine.
Voted as India's Favorite Airline.
Rated as Asia Pacific's Top Airline Brand.
14
15. Brand Leadership Award.
Economic Times Avaya Award 2006 for Excellence in
Customer Responsiveness.
India's No. 1 Airline in customer satisfaction by Business
World.
Rated amongst India's most respected companies by Business
World.
Rated amongst India's 25 Innovative Companies by Plan man
Media in 2006.
The Best Airline" and "India's Favorite Carrier' in a Survey
conducted by IMB for The Times of India.
Best New Domestic Airline for Excellent Services and Cuisine
by Pacific Area Travel Writers Association (PATWA).
Service Excellence 2005-2006 for a New Airline by Skytrax.
Ranked third in the survey on India's Most Successful Brand
launch of 2005 under the Brand Derby Survey conducted by
Business Standard.
Busiest Brands of 2005 by agency fans and The Brand Reporter.
Rated amongst the Top Ten Internet Advertisers by Yahoo.
Rated amongst the top ten in the Best Television Commercial
Jingles by NDTV.
Best New Airline of the Year Award for 2005 by Centre for
Asia Pacific Aviation (CAPA) Award in the Asia-Pacific and
Middle East region.
Listed in the top 100 most trusted brand in The Brand Trust
Report.
15
16. POLITICAL FACTORS
1) Open sky policy
2) FDI limits: 100% for Greenfield airports
74% for the existing airports
100% through special permission
49% for airlines
ECONOMICAL FACTORS
1) Contribution to the Indian economy.
2) Rising cost of fuel.
3) Investment in the sector of aviation.
4) The growth of the middle income group family affects the
aviation sector.
16
17. SOCIAL FACTORS
1) Development of cities leads to better services and airports.
2) Employment opportunities.
3) Safety regulations.
4) The status symbol attached to a plane travel.
TECHNOLOGICAL FACTORS
1) The growth of e-commerce and e-ticketing.
2) Satellite based navigation system.
3) Modernisation and privatisation of the airports.
4) Developing green field airports with private sector for example
in Bangalore the airport corporation limited.
ENVIRONMENTAL FACTORS
1) The increase in the global warming.
2) The sudden and unexpected behavior of the atmosphere and the
dependency on whether.
3) Shortage of the infrastructural capacity
4) Tourism saturation.
LEGAL FACTORS
1) FDI limits
2) Bilateral treaties
3) Airlines acquisitions and the leasing cost.
17
18. STRENGTHS
• Strong brand value and reputation in the minds of customers.
• Quality of the service.
• Route rationalization.
• First airline to have a new fleet of airbuses.
• Quality and continuous innovation.
WEAKNESSES
• Still a not in profit organization.
• High ticket pricing.
• Facing a tough competition from competitors.
18
19. OPPORTUNITIES
• The expanding tourism industry.
• The non penetrated domestic market.
• International market.
• Untapped air cargo market.
THREATS
• Competitors
• Infrastructure issues.
• Fuel price hike.
• Tourism saturation
• Economic slowdown.
• Promotions and sponsorship declining.
19
20. STP ANALYSIS
• SEGMENTATION
Geographic Region
Density
Social Classes
Income Level
• TARGETING
Kingfisher First
company executives
Kingfisher Class
lower middle, upper middle, lower upper
segment
• POSITIONING
Lifestyle
Benefits
Quality
20
21. P’s
҈ PRODUCT
Fleet Size
Aircrafts
International
Foray
҈ PROMOTIONS
Advertisements
Magazine and Newspaper
ads
Exposure at non-corporate
event
Participation in
International Air shows
Endorsing celebrities like
Katrina Kaif and Yana
Gupta
21
22. ҈ PRICE
Dynamic pricing model -
Multiple fare levels
Uniform rules
No hidden restrictions.
Pricing model - 8 different
levels
Discounts provided from time
to time
҈ PEOPLE
Backbone of the
brand
Extensive trainings
Hospitality industry
and consider their
customer as guests
Interpersonal skills,
aptitude, and service
knowledge
҈ PLACE
Online Booking - www.flykingfisher.com
Online Booking - Yatra.com, MakeMyTrip.com,
ezeego1.com
Credit Cards & Debit Cards Payment
SMS / Call
22
23. Outlets in every major city and at every airport
across the country
҈ PHYSICAL EVIDENCE
Personal valets
Exclusive lounge
space
Hi! Blitz
Gourmet cuisine
world class cabin
crew
5 trendy video-
Fun TV; 10 music
stations -
Kingfisher Radio
҈ PROCESS
Booking the ticket - online booking or tele-booking
or from any of the kingfisher outlet
23
28. FUTURE STRATEGIES
Market Penetration
Can tie up with Corporate and Government Companies by
Providing Unique Travel Solutions for Professional and Personal Use.
Can implement programs implemented by South West Airlines to
penetrate market.
Product Development
Seek additional distribution channels such as more tie ups and
Collaboration.
Collaboration with international carriers, bilateral discussions
over seats and code sharing between the carriers.
Market Development
Special offerings for first time fliers.
Try to find out new customer group such as old-retired persons.
Diversification
Can enter into other Transport Services like Bus Services
between Major Cities and Other Services.
28
29. PROBLEM IDENTIFICATION
Current Indian scenario : Air travel
For majority of people preference-No frills – low
cost airlines
Kingfisher competing with both the “no frills - low cost”
airlines as well as those with frills.
Three unique classes of service :–
o Kingfisher First (Business class)
o Kingfisher Class (Premium economy)
o Kingfisher Red (Low fare)
Current segmentation based on social class & income level
Social classes: which use full carrier services and
those which use first class services of the railways
Income level : Low cost carrier for those who travel
by first class railway
Problem with positioning
Brand relates to Lifestyle
29
30. RECOMMENDATIONS
Needs to change brand perception
Currently perceived as Lifestyle slogan
Red color of crew :Reflects Royalty
Over dependence on brand image of Mr. Mallaya
Jet airways : Reflects professionalism
Advertisement reflecting Value for Money
Gain operational efficiencies through alliances as with Jet
Airways
Leverage Upon:
New fleet, Unmatched flight service
Innovative ideas-LIVE TV with 16 channels
Air Boutique, in Kingfisher Airlines
A joint promotion, i.e. using MakeMyTrip services and flying
Kingfisher Airlines.
By partnering with Kingfisher Airlines, further
convenience in travel is offered at no extra cost- Added
value
Fleet size expansion
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31. SUGGESTION
Reduce the labor cost
Simplify the flight operations
Offer more transparent pricing
Get smart on fuel
The process of acquiring spice jet if complete would make
kingfisher the largest player in the aviation industry
Different modes of pricing should be taken care of.
CONCLUSION
After doing a study of this project representing on Kingfisher
Airlines, I have come to a conclusion that Kingfisher Airlines is one
of the largest and most widespread airlines of the country providing
its services not only in India as well as outside India also. It has
alliance with many other airlines in this sector.
Kingfisher Airlines offers world class services to the customer
at a nominal rate. The national carrier takes immense pride in having
successfully played a pivotal role in making various facets of India
popular with the people of the world and acting as the country’s
cultural ambassador. The airline uses the services of one of the
advanced plans been operated in the world. To sum up I would like to
say that Kingfisher Airlines is serving its customer in an appreciated
way and going to be in the list of best services providers in coming
years.
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