ABOUT KINGFISHER AIRLINES:-

Kingfisher Red, known formerly as Simplifly Deccan and prior to that as Air Deccan, is a low-
cost brand run by Kingfisher Airlines. It is headquartered in Mumbai, India.[1]

Passengers can earn frequent flyer miles (called King Miles) for tickets booked on Kingfisher
Red through the King Club loyalty program run by its parent Kingfisher Airlines. In-flight
reading material is limited to a special edition of Cine Blitz magazine printed exclusively for
Kingfisher Red.

History

Formerly known as Air Deccan, the airline was previously operated by Deccan Aviation. It was
started by Captain G. R. Gopinath and its first flight took off on 23 August 2003 from Hyderabad
to Vijaywada.[2] It was known popularly as the common man's airline, with is logo showing two
palms joined together to signify a bird flying. The tagline of the airline was "Simpli-fly,"
signifying that it was now possible for the common man to fly. The dream of Captain Gopinath
was to enable "every Indian to fly at least once in his lifetime." Air Deccan was the first airline in
India to fly to second tier cities like Hubballi, Mangalore, Madurai and Visakhapatnam from
metropolitan areas like Bangalore and Chennai.

On 25 January 2006, Deccan went public by filing a red herring prospectus with the Securities
and Exchange Board of India. Deccan planned to offload 25 percent of its stake in the initial
public offering (IPO) that opened on 18 May. However, due to the stock market downturn at that
time, Air Deccan's IPO barely managed to scrape through, even after extending the issue closing
date and reducing the price band.[3]

On 27 February 2007, Air Deccan switched to US-based airline reservations hosting service
provider Radixx International, becoming the second major domestic Indian carrier after GoAir to
switch to the Radixx Air Enterprise reservation system.[4] Before moving to the Radixx
reservation system, Air Deccan was using a reservation system provided by the Delhi-based
InterGlobe Technologies.

Less than expected growth in the Indian aviation sector coupled with overcrowding and the
resultant severe competition between airlines resulted in almost all the Indian carriers, including
Air Deccan, running into heavy losses. After initially trying to get in fresh capital for running the
airline, Captain Gopinath eventually succumbed to pressures for consolidation. On 19 December
2007, it was announced that Air Deccan would merge with Kingfisher Airlines. Since Indian
aviation regulations prohibited domestic airlines from flying on international routes until they
had operated in the domestic market for five years, it was decided to instead merge Kingfisher
Airlines into Deccan Aviation, following which Deccan Aviation would be renamed Kingfisher
Airlines. This was because Air Deccan was the older of the two airlines, and therefore would be
the first to qualify for flying on international routes.[5][6] The merger became effective April 2008,
with Vijay Mallya becoming the Chairman and CEO of the new company, while G. R. Gopinath
became its Vice-Chairman.
After the merger, Air Deccan switched to the Sabre reservation system used by Kingfisher
Airlines, thereby replacing the previous solution provided by Radixx.

Competitors

Air Deccan's phenomenal growth spurred the entry of more than half a dozen low-cost air
carriers in India. In its present avatar as Kingfisher Red, the airline faces stiff competition from
SpiceJet, IndiGo Airlines, Jet Lite and GoAir. The growth of these low-cost air carriers has also
forced mainstream domestic Indian airlines to lower their fares.

Revenue

In a statement to the National Stock Exchange of India, Air Deccan reported a net loss of Rs 3.4
billion ($74 million) for the 15-month period between 1 April 2005 and 30 June 2006. It
originally hoped to break even in the current financial year but executives are quoted in the local
media as saying it now does not expect to post profits until 2008 as a result of intense
competition following the launch of several other new airlines. Air Deccan has now turned
profitable on the back of a strong October–December 2006 quarter, posting a profit of Rs. 9.64
crores (a little more than US$ 2 million).[11]

Acquisition by Kingfisher Airlines

Kingfisher Airlines' parent company United Breweries Group acquired a 26 percent stake in Air
Deccan's parent company Deccan Aviation. The combined fleet of 71 Airbus A320 family and
ATR aircraft will operate 537 flights to 69 Indian cities, "whilst taking advantage of unparalleled
synergy benefits arising from a common fleet of aircraft," according to Kingfisher. "For the near
future, Kingfisher will continue to serve the corporate and business travel segment, while Air
Deccan will focus on serving the low-fare segment, but with improved financial prospects for
both carriers," Kingfisher added. Speaking to reporters yesterday, UB Group head Vijay Mallya
said there were no plans to launch an IPO "at this stage" and that UB Group would have no
problem funding the acquisition.

Rebranding

In October 2007, after the acquisition by Kingfisher Airlines, Air Deccan was renamed
"Simplifly Deccan" with its new tagline being "The choice is simple". The old logo was replaced
by the Kingfisher logo and the same font of Kingfisher Airlines was also used on Simplifly
Deccan. The old yellow and blue colors of Air Deccan were replaced by Kingfisher Airlines's red
and white, supposedly to give the same premium look and feel to Deccan as well.[12] The check-
in counters at airports as well as the crew uniforms now had the same red and white colors as
those for Kingfisher Airlines. The new look airline also promised excellent on-time performance,
a wider network and "little delights all the way". Check-in staff would no longer be outsourced,
but managed by the airline's own employees, thereby "increasing accountability and improving
service delivery," said Mr Mallya. He also announced that the new airline would slowly phase
out the ageing ATR 42 and A320 planes and replace them with entirely new aircraft.[13] Changes
were also made in the flight schedule of Simplifly Deccan airlines to better align with that of
Kingfisher Airlines. According to agencies, the re-branding was expected to cost around Rs 15
crore (approximately $3.8m).

In August 2008, it was announced the airline will further change its branding to Kingfisher Red
and will begin operating under Kingfisher's IATA code IT.[14][15]

Vision and Values

OUR VISION

“The Kingfisher Airlines family will consistently deliver a safe, value-based and
enjoyable travel experience to all our guests.”

OUR 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 organisation 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.
Kingfisher airlines launched its domestic air service operations in May 2005.KFA was
promoted by UB group and offered a single class- “Kingfisher Class”. KFA successfully   
leverage the youthful and vibrant image of its kingfisher beer brand and called its
airlines as ‘Funliners’ to emphasize the fun-filled experience. Within the first six
months of its launch, KFA managed to corner a 6% market share in the domestic air
travel mark.
KFA started its operation in May 7, 2005, positioning itself as a budget carrier and not as Low
Cost Carrier (LCC).

Following strategies were followed to make it one of the leading Airlines in India.

 It came up with a very appealing promotional line

“Fly the good times” and it reflected in the
experience the company offered to its passengers.
 KFA is also  launched Kingfisher express in order to
tap into the growing LCC segment.
 It planned to re-launch its commercial air service
called UB Airway again which it had to withdraw it
due to government restrictions.
 The company gave best services to its customers
that were like providing world class interiors, and in-
flight entertainment systems.
 The company came up with only one class airlines
rather than other airlines that had Business Class;
Economy Class the idea was to combine Business
Class experiences and Economy Class experiences
in one.

Having a single class freed up more leg space for passengers when compared to normal economy
class flights.

 The company started addressing its customers as

“GUEST” rather than passengers.
 The company made its mark by providing its guests
with more legroom and bigger seats so as to provide
better comfort.

KFA has set its sight to become India’s largest airline both is capacity and in market share.

KFA’s Promotional Strategies

As part of its promotional strategy the marketing team of KFA showcased the airline as “the new
flying experience”. The following initiatives were taken as part of its promotional strategy…

 Advertisements hoardings at airports depicted the

stylish interiors of the “Funliners”, which conveyed
youthfull, fun-filled, and world class image.
 INOX multiplexes in Mumbai publicized KFA’s 
special offers for a month.
 KFA was the official travel airlines for the cast and
crew of “Mangal Pandey”- the movie.
 KFA made use of various fashion shows, celebrity
golf matches, New Year parties all to build its
“Kingfisher” brand.
 The UB groups monthly magazine called “Pegasus”
published information about KFA along with other
information related to UB group.
 KFA launched many attractive offers to promote its
sales like the “King Card” in association with ICICI
Bank, in August 2005. This was ment to creat loyal
customers for KFA by providing benefits like
privileged access to lounges, restaurants, free
refreshments at airports, access to 180 golf clubs
across India, special invites for lifestyle shows .
 In October, KFA launched “Chill Times Offer” in
the month of August 2005 and September 2005.
 In October they launched the “King Saver Offer”
which said “Fly like a King, don’t play like one”.
 KFA targeted the frequent fliers business traveler
segment, which was dominated by Jet Airways. By
offering a “King Saver Booklet”, This booklet
contained six free flight tickets and was presented as
a free gift if the passenger bought two such booklets
each worth Rs. 26,999.Passengers could avail off
 this offer if they showed there Jet Privilege Member
(Gold or Platinum) card.

Financial strategies:

KFA came up with many new financial strategic moves that made it one of the leaders of
aviation industry the company had adopted following strategies:

 It purchased brand new A320 aircrafts powered by

the cockpit that was a paperless environment.

 In June 2005 KFA planned to order US$5 bn at the

Paris Air Show, for 5 new A350-800 aircraft, and five
A330-200 aircraft.

 KFA was first Indian carrier to place an order for

A380s.

 In November 2005 it placed an order for 30 A 320

and 20 ATR72-500 aircraft at the Dubai Air Show.
This ATR72-500 was worth US$750.

To further its expansion plan KFA put in its bid to buy Sahara in November 2005.How ever
negotiation came to a standstill when KFA felt the valuation of Sahara Airlines of around
US$750mn to US$1 bn. was too high.

KFA has plans to make an Initial Public Offer (IPO) and raise around US$200 mn that would be
used for its fleet acquisition and route expansion activities.

KFA set up Kingfisher International Inc. (KII), a subsidiary in US for its international
operations. KFA plans to operate international routs by end of 2007. But KFA had yet to receive
permission from the Indian government.

According to Indian government domestic air carriers are not allowed to fly international routes
without five year of domestic flying experience. But Mr. Mallya said if he failed to convince the
government to change its rules, it would start an airline in a foreign country and fly it to India.

Human Resource Strategies

Prior to launch, KFA signed a “non-poaching alliance” with Air Deccan under which both the
airlines agreed not to hire each other’s employee. KFA’s flight attendants called “Flying models”
were selected through a national level model contest.

KFA also stressed the fact that its employees had to be capable enough to meet the airlines’ high
service standards.

Among one of the biggest HR move for KFA was addition of Nigel Harwood as Chief Operating
Officer with effect from August 1, 2005, to strengthen its management team.

Mr. Mallya said “Kingfisher Airlines Limited has a first class management team not just at top
most level but also in the second line. This is part of the UB group’s commitment to human
resources”.
SWOT OF KINGFISHER AIRLINES

Strengths:
- Strong brand image
- Focus on LCC segment as well with Kingfisher Red
- Financial backing of UB group
- Strong and competent management

Weakness:
- High maintenance cost at ground and airline

Opportunities
- Poor service of Indian Airlines / Air India
- Problems with Jet airways (strikes etc)
- Growth in air travel, with businesses and markets doing better.
- More leisure travelers (Eg spicejet has recently added a new flight from Mumbai to Goa)

Threats:
- Rising oil prices play havoc with prices and therefore with load factor
- Other low cost airlines providing better services with their newer airplanes (Kingfisher Red has
old aircrafts)
- Government initiatives in railways with fast running trains like Duronto.
- Better roads mean business travelers may prefer taking the road than the train for short
distances, since it comes out cheaper and there are no delays at airports etc.
- Threat of terrorism leads to fewer international travelers

Services Offered by kingfisher airlines:-

Cabin classes

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 personalised IFE system with AVOD
which offers a wide range of Hollywood and Bollywood movies, English and Hindi TV
programmes, 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.

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 the movies, English and Hindi TV
programmes, a few live TV channels powered by DishTV and Kingfisher Radio. The screen is
controlled by a controller-console on the seat armrest. Earcup headphones are provided free of
cost to all passengers. The default channel shows, alternating every few seconds, The aeroplane'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.

On-board the ATR 72-500s there are 17 colour LCD drop-down screens mounted along with
loudspeakers for audio in the cabin overhead, a head-end unit to handle CDs and DVDs, and a
crew control panel. The screens measure 12.7 cm by 9.3 cm, weigh 0.2 kg each and are spaced
every two or three seat rows along both sides of the cabin.

After Kingfisher Airlines acquired Air Deccan, its name was changed to Simplifly Deccan and
subsequently to Kingfisher Red. Kingfisher Red is Kingfisher Airline's low-cost class on
domestic routes. Passengers are given complimentary in-flight meals and bottled water. 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.[24] 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
touchscreen controls and offers 357 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 programmes live. There is also a collection of interactive games, a
jukebox with customisable 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 business class meals.

Each Kingfisher Class seat has a 10.6 inch widescreen personal television with AVOD
touchscreen 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.

In-flight entertainment
Kingfisher's IFE system is the Thales TopSeries i3000/i4000 on-board the Airbus A320 family
aircraft, and Thales TopSeries i5000 on-board the Airbus A330 family aircraft provided by the
France-based Thales Group.[25]

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 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. 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.[26] 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.

The Frequent-flyer program of Kingfisher Airlines is called the King Club in which members
earn King Miles every time they fly 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.