Kingfisher Airlines was founded in 2005 and grew rapidly to become one of India's largest airlines. It aimed to target the growing middle class segment with affordable pricing and high quality service. However, Kingfisher struggled with high costs and debt, facing stiff competition from low-cost carriers. While it had a strong brand and reputation early on, Kingfisher's long-term viability depended on its ability to control costs and deliver an on-time, affordable service to customers.

1. oKingfisher Airlines……….The king of good timesBY: ANKIT KUMARPGDM-I Semester

2. BACKGROUNDGovernment of India nationalized 9 Airline Companies in 1953According to Act IAC and AI have a Monopoly1994-IAC renamed IA1995-Six private airlines accounted for 10% of market share2003-Air Deccan Started its Domestic air travel operations.

3. BACKGROUND(Contd.)Various Promotional schemes used by Air Deccan.2005-Number of Domestic Passengers increased. So right time to launch KFA

4. INTRODUCTION Started its Operations in India on May 9,2005

5. In December 2005 KFA had 9 aircrafts having a 6% Market Share

6. In 2006 Market share increased to 7.6%

7. Various Awards-Best new Airline Award, Service Excellence for a new Airline

8. Competition grew up because of Low Cost Carrier. INTRODUCTION(Contd.)Acquisition of Air Sahara by Jet AirwaysHigh Aviation turbine FuelKFA planning to launch ‘Kingfisher Express’ as Low Cost Carrier Airlines.

9. DemographicCompetitorsProductEconomicDistributorsENVIRONMENTMARKETINGCustomersKINGFISHER PricePromotionPolitical-legalPlaceSuppliersEmployeesSocio-cultural

10. PESTEL ANALYSIS 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

11. PESTEL ANALYSIS 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-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.

12. PESTEL ANALYSIS 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.

13. PRODUCTCurrently the kingfisher airline operates the aircrafts like the airbus A 320, A 319-100 and ATC-72.

14. After acquiring the Deccan kingfisher has started a new fleet known as Kingfisher Red. The 7Ps ….

15. The 7Ps …. PLACECovers even the toughest terrains in the country, and the services ranges from Ahmadabad to Agartala and to the major cities such as Delhi, Bangalore, and Chennai etc.

16. The main strategy that kingfisher follows is to target the metro cities or the tier 1 cities in India.PROMOTION There are many events and advertisements through which kingfisher airlines is promoted.

17. There are multiple touch points and finer promotional services working for the promotional activities.

18. Loyalty and frequent flyer programs are also carried out.The 7Ps …. PRICEThe price segments that kingfisher targets is the higher income group as well as the upper middle class background.

19. There are a few segments that are majorly for the youth and the high lifestyle segments.

20. Socio economic class mainly in the age group of 25-45 years are the main segments for which there is a specific prices offered by kingfisher.

21. Some of the services offered by kingfisher do emphasis on their policy to target those segments which are willing to pay for luxury.The 7Ps …. PEOPLEThe selection, training and motivation of employees can make a huge difference in customer satisfaction. Employees at KFA exhibit competence, a caring attitude, responsiveness, initiative, problem-solving ability and good will.PHYSICAL EVIDENCECompanies demonstrate their service quality through physical evidence and presentation.Apolstery (seat covers, curtains, carpet, tray cover, uniform of the air hostesses etc.), catering tie-ups with 5stars, in-flight entertainment

22. PROCESSCUSTOMERSALES UNITAGENTSAIRLINEINTERNETAIRPORT BAGGAGE SCANNINGRESERVATIONCHECK-IN BAGGAGESECURITYBOARDING/ EMBARKATIONFLYING/ TRANSPORTATIONDISEMBARKATION AT DESTINATIONBAGGAGE DELIVERYEXIT

23. S.W.O.T. ANALYSISSTRENGTHS Strong brand value and reputation in the minds of customers.

24. Quality of the service.

25. Route rationalization.

26. First airline to have a new fleet of airbuses.

27. Quality and continuous innovation.WEAKNESSES Still a not in profit organization.

28. High ticket pricing.

29. Facing a tough competition from competitors.S.W.O.T. ANALYSISOPPORTUNITIES The expanding tourism industry.

30. The non penetrated domestic market.

31. International market.

32. Untapped air cargo market.THREATS Competitors

33. Infrastructure issues.

34. Fuel price hike.

35. Tourism saturation

36. Economic slowdown.

37. Promotions and sponsorship declining.CommissionsGave 10 % commissions to agentsGave incentives to agents. Agents who got KFA a business of more than Rs 1 million a month had a chance to win luxury cars through lucky draws.

38. Support ServicesLaunch of ‘King Mobile’, an sms service to keep guests updated about flight schedules and status of departure.Pick up services from hotel to airport.Porters at the airport to help with luggage.In-flight services (news and entertainment television).

39. Will the Good times last? KFA Positioning

40. Targeting the growing middle class segment that was net savvy, young and upwardly mobile, with a propensity to spend.

41. Maintaining a good passenger load factor

42. Launch of Kingfisher First

43. Expanding tourism industryContd..Greater Disposable incomeStrong Brand value and reputation in the minds of customer.The non penetrated Domestic MarketCritical factor will be ability to keep costs low & the offer of an on time service at an affordable price.

44. SummaryKFA was the first Indian carrier to place an order for A380s. KFA offered a facility for home delivery of tickets on demandMultiple fare options and auctioning of tickets on all traffic routesFrequent flyer rewards, benefits & recognition Alliance with Dish TV to bring live TV in Flight26% stake in Deccan AviationQuality & Continuous innovation

45. SUGGESTIONS Reduce the labor costSimplify the flight operationsOffer more transparent pricingGet smart on fuelThe process of acquiring spice jet if complete would make kingfisher the largest player in the aviation industryDifferent modes of pricing should be taken care of.