FORE School of Management

Year 2023-2025

Project Report
on
ORGANIZATIONAL DESIGN AND ORGANIZATIONAL
STRUCTURE OF KINGFISHER AIRLINES

Organisation Design And Change

Submitted to:

Prof. Chiradip Bandyopadhyay

Submitted by: PGDM-FM 06, Section F

Amit Yadav 064009
Chirag Hotwani 064015
Harsh Bohra 064018
Hritik Chauhan 064020
Purvi Gandhi 064036
 ACKNOWLEDGEMENTS

This report has become a reality with the kind support and help of many individuals. We,
as a group, would like to extend our sincere thanks to all of them.

Foremost, we would like to extend our special thanks of gratitude to Professor Chiradip
Bandyopadhyay, who gave us a golden opportunity to work on the delightful project of
understanding the organizational design and organizational structure of Kingfisher
Airlines..

Also, we, members of Group 12: Amit Yadav, Chirag Hotwani, Harsh Bohra, Hritik
Chauhan and Purvi Gandhi would like to thank each other for coordinating efficiently to
come up with this report. It has been a privilege for us to work together on this report.

We would also like to thank our classmates who have provided their valuable suggestions
on our report which gave us immense inspiration to improve the quality of the assignment.
Above all, we feel indebted to our families and friends for their continuous support.

Finally, we would also like to expand our appreciation to all those who have directly and
indirectly guided us in writing this project.
 LETTER OF TRANSMITTAL
15th November, 2023
The Course Lecturer
FORE School of Management
New Delhi

Subject: Organizational Design and Organizational Structure of Kingfisher Airlines

Dear Professor,
We feel immense pleasure and gratitude in presenting to you our final term project report.
As challenging as the task of concluding this project was, equally valuable is the learning
that we derived at each and every step of this project. Understanding the highly
knowledgeable lessons, from the company’s perspective was a highly challenging
task in itself.
This project report majorly revolves around understanding the organizational design and
organizational structure of Kingfisher Airlines.
This project report is a collective outcome of hard work and efforts put in by each and
every individual and meets the desired requirements for the completion of the project, as
per our knowledge and understanding. Kindly accept this humble effort of bringing
forward our research and findings, on the subject matter.

Yours Sincerely,
Group 12
FM-06 F
 EXECUTIVE SUMMARY

Kingfisher Airlines, a notable participant in the Indian aviation sector from 2005 to 2012,
emerges as a captivating subject for strategic examination, despite facing financial challenges
that led to its cessation. The enduring brand recognition and historical importance of
Kingfisher Airlines make it an intriguing case study, offering valuable insights into the
complexities and hurdles of a fiercely competitive market.

A focal point of this analysis entails a thorough exploration of Kingfisher Airlines'

organizational structure, shedding light on the intricacies of airline management and
providing a deeper understanding of the broader dynamics within the Indian aviation
industry. This includes navigating regulatory intricacies, comprehending market competition,
and adapting to the evolving preferences of air travellers.

Moreover, the airline's financial crisis and subsequent closure present profound lessons in
crisis management, financial prudence, and the consequences of unsustainable business
practices. Examining Kingfisher Airlines' operational challenges allows for a comprehensive
grasp of issues ranging from fleet management and route planning to the nuances of customer
service.

This analysis aims to distil valuable insights from the distinctive trajectory of Kingfisher
Airlines, contributing to a nuanced comprehension of strategic management, resilience in the
business landscape, and the ever-changing dynamics of the aviation industry. Through this
exploration, the study seeks to provide pertinent lessons for future enterprises and contribute
to the broader discourse on effective business strategies and industry adaptability.
Table of Contents
EXECUTIVE SUMMARY ................................................................................................ 4
COMPANY INTRODUCTION ......................................................................................... 6
OBJECTIVES .................................................................................................................. 8
REASONS FOR SELECTING KINGFISHER AIRLINES ............................................. 10
METHODS ADOPTED FOR THE STUDY .................................................................... 12
DATA COLLECTION .......................................................................................................... 12
DATA ANALYSIS ................................................................................................................. 12
METHODOLOGIES ADOPTED ......................................................................................... 13
ANALYSIS ..................................................................................................................... 14
PORTER’S 5 FORCES FRAMEWORK .............................................................................. 14
PESTEL ANALYSIS ............................................................................................................. 16
ORGANIZATIONAL STRUCTURE .................................................................................... 18
ORGANISATIONAL CHART .............................................................................................. 20
STRUCTURAL DIMENSION .............................................................................................. 22
CONTEXTUAL DIMENSIONS OF KINGFISHER ............................................................. 26
ORGANISATIONAL CULTURE ......................................................................................... 29
CONCLUSION AND INFERENCE ............................................................................... 31
CONCLUSION ..................................................................................................................... 31
INFERENCES ...................................................................................................................... 32
REFERENCES .............................................................................................................. 33
 COMPANY INTRODUCTION

Kingfisher Airlines, a privately-owned aviation enterprise headquartered in Bangalore, India,

commenced its operations on May 9, 2005, under the stewardship of Vijay Mallya, an
influential figure associated with the United Beverages Group. Focused primarily on
domestic routes, the airline swiftly garnered attention by serving key destinations such as
Bangalore, Mumbai, Delhi, Goa, Chennai, and Hyderabad, initially operating with a fleet
comprising four Airbus A320 aircraft.

Central to Kingfisher Airlines' identity is its vision, encapsulated in a mission statement that
pledges a consistent delivery of a safe, value-driven, and enjoyable travel experience for all
passengers. The airline's core values underscore the paramount importance of safety, an
unwavering commitment in an industry where compromise is not an option. Service
excellence is a linchpin, recognizing the airline's integral role in the hospitality sector,
emphasizing a commitment to serving guests and fostering trust and loyalty.

A unique facet of Kingfisher Airlines' values is the emphasis on happiness, aspiring to

cultivate an organizational culture where individuals actively choose happiness, influencing
both colleagues and passengers positively. Teamwork is highlighted as critical to success,
promoting mutual respect and collaboration among colleagues irrespective of their rank.
Accountability, the final core value, ensures that each member of the organization is
responsible for the successful execution of duties, commitments, and obligations, setting a
standard through exemplary leadership.

The airline's service offerings span across various classes. Domestically, Kingfisher First
boasts personalized in-flight entertainment (IFE) systems, laptop and mobile phone chargers,
and spacious 48-inch seat pitches. Kingfisher Class provides a comfortable 32-34 inch seat
pitch with personal IFE systems, catering to a broader audience, while Kingfisher Red serves
the cost-conscious segment.

On the international front, Kingfisher First delivers a premium experience with full flat-bed
seats, extensive in-flight entertainment, and gourmet meals. The Kingfisher Class ensures a
quality travel experience with a 34-inch seat pitch. Cargo services are extended through
Kingfisher Xpress, offering a novel door-to-door delivery service.

In its commitment to passenger satisfaction, Kingfisher Airlines introduced the King Club
frequent-flyer program, entailing benefits such as lounge access, priority check-in, and
upgrade vouchers. Renowned for its innovative services, Kingfisher Airlines solidified its
position in the aviation industry, embodying its commitment to "Fly the Good Times" and
crafting an enriching travel experience for its passengers.
 OBJECTIVES

Organizational Design is a set of complex strategy that intends to change the values, attitudes,
beliefs and structure of an organization, in order to better acquaint itself with
new technologies, competitive markets and fierce challenges.

Organizational Design is a step by step methodology, which helps an

organization in identifying dysfunction within workflows, structures, systems and
procedures, in order to realign ten with the current business goals and then
implementing new changes by developing business plans.

The objectives for from the following project are:

1. Understanding Organizational Dynamics:
• Develop a comprehensive understanding of the organizational structure and
design of Kingfisher Airlines.
• Explore the internal processes, including culture, communication, and
structural elements, to gain insights into the overall organizational dynamics.
2. Integration of Various Dimensions:
• Investigate how Kingfisher Airlines integrates various dimensions, including
cultural and structural aspects, within its organization.
• Understand how different processes and dimensions work together to form a
cohesive organizational framework.
3. Research Approaches in Organizational Analysis:
• Examine and compare various research approaches employed by organizations
for analysis, encompassing both primary and secondary research methods.
4. Factors Influencing the Organization:
• Identify and analyse the factors influencing Kingfisher Airlines, utilizing
frameworks such as Porter's Five Forces and the PESTEL analysis, to
understand the external forces shaping the organization.
5. Impact of Contextual and Structural Dimensions:
 • Analyse the influence of contextual and structural dimensions on the
organizational design and culture of Kingfisher Airlines.
• Identify how external factors and internal structures impact decision-making
processes and overall organizational behaviour.

6. Organizational Culture Exploration:

• Explore the various facets of organizational culture within Kingfisher Airlines,

focusing on values, attitudes, and beliefs that shape the work environment.

7. Features of Current Organizational Structure:

• Enlist and evaluate the features of the current organizational structure adopted
by Kingfisher Airlines.

• Understand the rationale behind the chosen organizational design and how it
aligns with the airline's business goals.

8. Challenges Faced by Kingfisher Airlines:

• Investigate and analyse the challenges encountered by Kingfisher Airlines in

terms of contextual and structural dimensions.

• Explore how these challenges impact the organization's ability to adapt to new
technologies, competitive markets, and other industry challenges.

These objectives collectively aim to provide a comprehensive analysis of Kingfisher Airlines'

organizational structure, focusing on both contextual and cultural dimensions for the ODC
assignment.
 REASONS FOR SELECTING KINGFISHER AIRLINES

Kingfisher Airlines, a prominent Indian carrier operational from 2005 to 2012, marked its
presence with a distinctive blend of luxury and service excellence. Owned by Vijay Mallya of
United Beverages Group, the airline soared to fame with a fleet of Airbus A320 aircraft,
offering domestic flights to key destinations.

Despite initial success, financial challenges led to its closure, creating a narrative of rise and
fall. Kingfisher Airlines' brand recognition, historical significance, organizational structure
complexities, insights into the aviation industry, crisis management lessons, and operational
challenges present a compelling case for in-depth analysis. This multifaceted exploration
promises to unravel valuable lessons and insights relevant to strategic management and
business studies.

Engaging in a project related to Kingfisher Airlines presents a rich opportunity for a

comprehensive analysis, offering insights into various facets that remain significant despite
the airline's financial challenges and eventual closure in 2012:

• Brand Recognition: Despite financial difficulties, Kingfisher Airlines retained a

prominent position in the aviation sector. Investigating the factors contributing to its
brand recognition, analysing the impact of marketing strategies, and understanding
the evolution of brand perception over time provide valuable insights into brand
management within the aviation industry.

• Historical Significance: The ascent and descent of Kingfisher Airlines form a

captivating historical narrative. A research project can delve into the airline's journey,
pinpointing crucial moments, external influences, and internal decisions that shaped
its trajectory. This historical analysis serves as a compelling case study for
comprehending challenges faced by businesses in competitive markets.

• Organizational Structure: The organizational structure of Kingfisher Airlines is a

pivotal area for exploration. Scrutinizing the airline's hierarchy, decision-making
processes, and departmental interactions offers insights into the intricacies of
 managing an airline business. Analysing the organizational structure may unveil
correlations between internal dynamics and the company's financial health.

• Industry Dynamics: A project centred on Kingfisher Airlines facilitates an

examination of the aviation industry in India. This encompasses scrutinizing
regulatory frameworks influencing the airline's operations, understanding market
competition, and assessing customer preferences. Insights into industry dynamics
have broader applications for comprehending challenges and opportunities in the
Indian aviation sector.

• Lessons in Crisis Management: Kingfisher Airlines' financial crisis and subsequent

shutdown provide a rich context for studying crisis management in a real-world
business scenario. Evaluating decision-making processes during the crisis, the
efficacy of crisis communication, and the subsequent impact on stakeholders offers
valuable lessons for businesses confronting financial challenges.

• Operational Challenges: Researching Kingfisher Airlines allows for a detailed

examination of the operational challenges inherent in running an airline. This involves
scrutinizing fleet management decisions, route planning strategies, and customer
service practices. Understanding operational intricacies provides insights into the
practical aspects of sustaining a successful airline operation.

In summary, a holistic project on Kingfisher Airlines can deliver a nuanced exploration of

brand management, historical business trajectories, organizational dynamics, industry-
specific challenges, crisis management strategies, and operational intricacies within the
aviation sector. Each facet contributes to a comprehensive understanding of the complexities
involved in managing and sustaining an airline business.
 METHODS ADOPTED FOR THE STUDY

As a discipline, methodology focuses on the systematic and theoretical evaluations of

research methods. Methods and principles in a field of study are examined in terms of their
theoretical underpinnings.

DATA COLLECTION
The data was obtained from secondary sources, to conduct the study, various secondary
sources used for the study are:-

1. Kingfisher’s website: This includes data collection directly from company’s website.
It included data on the company’s aircrafts, corporate information, financial reports
and other relevant details.

2. Third party websites: This includes data collected from external websites. This
includes analyses, reviews or news articles about nestle. It added diverse perspective
from sources independent of the company.

3. Private blogs: It refers to insights or opinions from individuals who maintain personal
blogs. This offered a more subjective viewpoint like personal experiences.

4. .Other secondary resources: There are lot more secondary resources such as reports,
publications etc. It allows for flexibility in including various materials.

DATA ANALYSIS
1. Goal of Data Analysis: The primary objective is to extract valuable information, draw
meaningful opinions, and support decision-making processes. Data analysis serves as
the means to achieve these goals and objectives.
2. Approaches and Techniques: We used different techniques for data analysis such as
qualitative analysis, quantitative analysis and regression analysis.It helped to derive
valuable insights from the collected data.
 3. Deep Dive into Organizational Aspects: We fixed the focus areas of the analysis,
particularly delving into the organizational structure and design of kingfisher. This
implies a detailed examination of how the company is organized internally or how it
works internally.
4. Exploring Organizational Culture: It Highlights that the data analysis includes an
exploration of kingfisher's organizational culture and environment. This involves
understanding the shared values, beliefs, culture and practices within the company.
5. Understanding Structural and Contextual Dimensions: It Indicated us that the analysis
goes beyond surface-level observations to comprehend both the structural aspects
(how the organization is organized) and contextual dimensions (how external factors
influence the organization)

METHODOLOGIES ADOPTED
1. Qualitative: A qualitative approach involves gathering information in a narrative or
descriptive form. This includes capturing the experiences of passengers,
understanding the perception of the airline's brand in the minds of passengers, and
exploring qualitative aspects of its services without relying on quantitative data.

2. Secondary: Using secondary sources entails depending on previously released

information from multiple sources. This can include gathering data from non-
kingfishers airlines-generated sources such as news reviews and reports.

3. Descriptive: A descriptive approach includes explaining the organizational structure

and design using pertinent facts. This involved outlining the responsibilities,
management hierarchy and other organizational features.

4. Exploratory: Using and exploratory approach means looking into the theories and
explanations that have been proposed in relation to kingfishers airlines. In order to
obtain a deeper understanding without pre-established hypotheses.
 ANALYSIS

PORTER’S 5 FORCES FRAMEWORK

These forces refers to micro environment and the company ability to serve its customers and
make a profit. These five forces includes three forces from horizontal competition and two
forces from vertical competition. The five forces are discussed below:

• Threat of New Entrants:

Kingfisher Plc faces the constant pressure of potential new entrants in the highly
dynamic consumer services industry. The influx of new competitors often leads to
innovation, lower pricing strategies, and cost reduction. To counter these threats,
Kingfisher can focus on continuous innovation, introducing new products and
services that not only attract new customers but also retain existing ones.
Additionally, building economies of scale can be an effective strategy, enabling
Kingfisher to lower fixed costs per unit. Investing in research and development and
setting industry standards regularly can create effective barriers that discourage new
players from entering the market.

• Bargaining Power of Suppliers:

In the retail industry, where Kingfisher sources its raw materials from numerous
suppliers, the bargaining power of suppliers can impact profit margins. To mitigate
this, Kingfisher can establish an efficient supply chain with multiple suppliers,
experiment with product designs using different materials, and develop dedicated
suppliers whose business relies heavily on Kingfisher. This strategy, seen in the
practices of successful companies like Wal-Mart and Nike, can diminish the
bargaining power of suppliers, contributing to improved profitability.

• Bargaining Power of Buyers:

Buyers in the consumer services sector, being price-conscious, hold a significant
bargaining power. To tackle this, Kingfisher can build a large customer base, reducing
 individual buyer influence. Rapid innovation in products and services can limit buyer
bargaining power, as customers are less likely to seek discounts on constantly
evolving offerings. By continuously introducing new products, Kingfisher can not only
maintain customer loyalty but also reduce the defection of existing customers to
competitors.

• Threats of Substitute Products or Services:

The threat of substitutes poses a risk to industry profitability. Kingfisher can address
this by adopting a service-oriented approach, understanding core customer needs,
and increasing switching costs for customers. By offering unique value propositions
and differentiating itself from competitors, Kingfisher can minimize the impact of
substitute products or services.

• Rivalry among Existing Competitors:

The retail industry is known for intense competition, impacting prices and overall
profitability. Kingfisher, operating in this competitive landscape, can tackle rivalry by
building sustainable differentiation, achieving economies of scale, and even
considering collaborations with competitors to expand the market size. Strategies
focused on long-term profitability rather than short-term gains can help Kingfisher
navigate the challenges posed by intense rivalry.
PESTEL ANALYSIS

This is the detailed PESTEL or PESTLE analysis of Kingfisher Airlines which has been
operating in Airline industry. This analysis will cover the impact of political, economic,
social, technological, legal and environmental factors on the company. It's is important for
Kingfisher to identify these factors and take them into consideration while formulating &
implementing strategies.

Being a part of UB group, the Kingfisher airline started its operations in 2005 but failed badly
despite of having the loyal customers, wide network and brand visibility. It has however
submitted a rehabilitation plan to take a fresh start. PESTLE Analysis is carried out to
understand the risks from various factors which may result in the growth or decree of any
company.

• Political Factors: Kingfisher Airlines operates within a dynamic political landscape,

shaped by policies such as the Open Sky Policy in India. This policy presents
opportunities for the airline to explore new routes and expand its operations but also
introduces the challenge of heightened competition from foreign carriers.
Additionally, vigilance is required to adapt to any alterations in Foreign Direct
Investment (FDI) limits, as these changes can significantly impact the airline industry.
Kingfisher's positive contributions to the Indian economy are pivotal for fostering
government support; however, economic downturns may pose threats to such backing.
The volatility in fuel prices, influenced by political stability in oil-producing regions
and government policies, necessitates strategic planning to navigate these fluctuations
effectively.

• Economic Factors: The economic backdrop significantly influences Kingfisher

Airlines' operations. The growth of the middle-income group offers a strategic avenue
for the airline to tailor its services, yet economic downturns may dampen travel
demand, requiring adaptive strategies. Government-supported investment in the
aviation sector provides potential growth opportunities, but a lack of such investment
may impede overall infrastructure development. The global economic climate's
impact on disposable income for travel demands a keen understanding to navigate
 potential shifts. The rising cost of fuel, tethered to economic stability and government
policies, necessitates vigilant cost management to sustain operational efficiency.

• Social Factors: Social dynamics, including urban development, employment

generation, safety considerations, and perceptions of air travel, play a crucial role for
Kingfisher Airlines. Urban development offers opportunities for improved airport
infrastructure, enhancing operational efficiency. While creating employment
opportunities is socially beneficial, labor disputes present threats to operational
continuity. Adhering to stringent safety regulations is an opportunity to bolster
reputation and customer trust, although it may escalate operational costs. The
symbolic status of air travel presents an opportunity to cater to luxury-conscious
consumers, yet economic downturns may impact the demand for premium services.

• Technological Factors: Technological advancements shape the operational landscape

for Kingfisher Airlines. The growth of e-commerce and e-ticketing provides avenues
for enhanced efficiency through digital platforms, although potential disruptions to
traditional booking systems demand adaptability. Implementation of a satellite-based
navigation system offers improved safety and navigation capabilities, with high
implementation costs posing a challenge. Modernization and privatization of airports
provide opportunities for enhanced facilities and operational efficiency, but careful
navigation is required concerning dependence on privately operated airports.
Collaboration for greenfield airport development offers growth prospects, albeit with
infrastructure challenges during the developmental phase necessitating strategic
planning.

• Environmental Factors: Environmental considerations are increasingly pivotal for

Kingfisher Airlines. The impact of global warming necessitates the adoption of eco-
friendly practices, offering opportunities for positive contributions to environmental
sustainability. However, adherence to stricter environmental regulations presents
challenges, requiring alignment with sustainable principles. Unpredictable
atmospheric behaviour, influenced by climate change, necessitates contingency
planning to mitigate operational disruptions. Infrastructural capacity shortages, arising
from increased air travel demand, mandate advocacy for increased capacity to prevent
 operational bottlenecks. Sustainable tourism practices present opportunities to
minimize environmental impact and prevent community backlash.

• Legal Factors: Navigating legal complexities is paramount for Kingfisher Airlines.

Foreign Direct Investment (FDI) limits and bilateral treaties are crucial for
international growth, demanding adaptability to changes. Acquisitions and leasing
costs involve intricate legal considerations, impacting fleet management and
necessitating careful assessment. Data protection laws are becoming increasingly
critical, requiring compliance to safeguard customer information. Intellectual property
rights protection is vital, demanding scrutiny of protection levels in different markets
to secure innovations.

In summary, a comprehensive grasp of these political, economic, social, technological,

environmental, and legal factors equips Kingfisher Airlines to make informed decisions,
adapt to challenges, and capitalize on opportunities within a dynamic external environment.

ORGANIZATIONAL STRUCTURE

An organisation structure helps an organisation in defining how the job tasks must be
formally divided, allocated and coordinated. Key elements of an organisational structure are:
• Hierarchy
• Departmentalization
• Span of Control
• Centralization vs. Decentralization
• Formalization

Kingfisher Airlines, during its operation from 2005 to 2012, exhibited a hierarchical
organizational structure characterized by distinct elements that defined its internal
framework. The hierarchy within the airline was clearly defined, with a Board of Directors at
the top overseeing strategic decisions and setting the overall direction for the company.
Reporting directly to the Board, the Management Team, led by the Chief Executive Officer
(CEO) and Chief Operating Officer (COO), played a crucial role in executing the established
policies and strategies.

Departmentalization within Kingfisher Airlines involved the grouping of employees and

resources into specialized units, including Operations, Marketing, Finance, Human
Resources, Maintenance, and Customer Service. This structure facilitated a focused approach
to various aspects of the airline's operations, ensuring efficiency and coordination.

The span of control in Kingfisher Airlines' structure determined the number of subordinates
reporting to each managerial level. The airline aimed for an optimal balance, avoiding
excessive layers of management while maintaining effective oversight.

Decision-making authority within Kingfisher Airlines leaned toward centralization, with

strategic decisions primarily originating from the top leadership. The Board and senior
executives held significant decision-making power, influencing the direction of the airline.

Formalization was evident in the structure, with established rules, procedures, and policies
governing organizational activities. This formality aimed to provide clarity, structure, and
standardization in the airline's processes.

Overall, Kingfisher Airlines' organizational structure reflected a traditional hierarchical

model with a clear chain of command, well-defined departments, and a balance between
centralization and formalization to ensure effective and efficient operations within the
aviation industry.
 Fig. Organisational structure of Kingfisher Airlines

ORGANISATIONAL CHART
An organizational chart is a visual representation of the intricate relationships among
members within a company. It encapsulates the connections between managers and
subordinates, directors and managing directors, and the chief executive officer's ties with
multiple divisions. To enhance clarity in understanding the organizational framework, it is
practical to break down a comprehensive organizational chart into smaller, more focused
segments, each depicting a distinct division within the company.

Distribution in Kingfisher Airlines Organizational Chart:

Kingfisher Airlines' organizational structure is methodically arranged into top, middle, and
lower levels, providing a visual depiction of its management hierarchy.

• Top-Level Management:
At the apex of the organizational hierarchy rests the Board of Directors, overseeing
strategic decision-making and governance. Directly reporting to the Board is the
Chief Executive Officer (CEO), who holds the mantle of overall leadership and
executive decision-making. Collaborating with the CEO is the Managing
Director/Chief Operating Officer (COO), responsible for managing daily operations
and coordinating various departments.
 • Middle-Level Management:
This tier houses departmental managers, each leading specific divisions such as
Operations, Marketing, Finance, Human Resources, Maintenance, and Customer
Service. These managers are instrumental in translating strategic plans and policies
into actionable directives.

• Lower-Level Management:
Supervisors, officers, and superintendents comprise the lower-level management,
focusing on day-to-day supervision and coordination within their respective
departments. They serve as crucial conduits of communication between top-level
management and frontline employees.

• Frontline Employees:
The foundation of the organizational structure is formed by frontline employees,
diligently executing tasks and operations under the guidance and supervision of the
lower-level management.

This breakdown of Kingfisher Airlines' organizational chart into top, middle, and lower levels
provides a lucid representation of the company's hierarchical structure and reporting
relationships.
STRUCTURAL DIMENSION

Given the data we have and the above chart that we have gathered, the below
mentioned pointers are relevant for Kingfishers Airlines Organizational structure.

Hierarchical Structure is as follows basis the given data

Top-Level Management:
CEO & Chairman - Positioned at the apex of the organizational hierarchy, responsible for
overall strategic direction, decision-making, and representing the company at a high level.
Governing Body Comprises various committees overseeing critical aspects of the airline's
operations such as Finance, Training, Selection, and Estate.
Director: Likely overseeing day-to-day operations and acting as a liaison between top
management and different departments
Administration Department:
Deputy Director Administration: Second in command in the administrative hierarchy,
assisting the director and overseeing various administrative functions.
Sr. Financial Advisor: Responsible for financial planning, budgeting, and advising top
management on financial matters.
.
Sr. Administrative Officer: Likely handling administrative duties, coordinating office
procedures, and managing administrative staff.
Estate Manager: Overseeing real estate and property-related matters for the organization.
Store Officer: Responsible for inventory management and procurement of necessary supplies.
Superintending Engineer: Likely overseeing engineering and maintenance operations.
Security Officer: In charge of the airline's security protocols and procedures.
Public Relation Officer: Handling public relations, managing the company's image, and
external communications.
Centres/Departments:
Recruitment Department: Managed by a Recruitment Officer, responsible for sourcing,
selecting, and hiring candidates.
Security Management: Supervised by a Security Superintendent, ensuring the safety and
security of both personnel and assets.
Other Centers/Departments: Each headed by Chiefs or managers responsible for their
respective functions (e.g., operations, customer service, maintenance).

The structural design of Kingfisher Airlines is as follows

Clear Chain of Command: The structure indicates a clear hierarchy with designated roles and
responsibilities at each level, enabling a streamlined flow of communication and decision-
making.
Functional Departments: Departments are divided based on specific functions like
administration, recruitment, security, etc., reflecting a functional organizational structure.

Centralized Authority: Decision-making power appears centralized at the top levels (CEO,
Director, Governing Body), ensuring a uniform direction for the entire organization.

Specialization and Division of Labor: Each department seems specialized in its function,
promoting efficiency and expertise in their respective areas.
Emphasis on Security and Administrative Efficiency: The inclusion of dedicated roles for
security management and administrative operations highlights the importance placed on these
aspects within the airline.

Integration of Contemporary Practices: The organizational structure seems aligned with

modern practices, integrating technology (evident in the various technology partnerships) and
HR practices (employee incentives, training programs).
The contextual dimensions of Kingfisher Airlines provide a broader understanding of the
environmental factors and circumstances that influenced its operations and strategies.
Contextual dimensions include various external and internal factors impacting the
organization:

This structure emphasizes a clear chain of command and specialization within departments. It
showcases a hierarchical approach with a centralized decision-making process and distinct
job roles. The application of various management theories seems evident in the establishment
of roles, authority, and the maintenance of organizational efficiency and unity.
CONTEXTUAL DIMENSIONS OF KINGFISHER
External Contextual Dimensions:
Industry Environment: Aviation Industry Dynamics: The airline industry is highly
competitive, sensitive to economic fluctuations, fuel prices, regulatory changes, and
technological advancements.
Market Saturation: The level of competition from other airlines, especially in a market with
multiple carriers, affects market share, pricing strategies, and route expansions.
Economic Factors:

Economic Cycles: Economic conditions, such as recessions or economic downturns, affect

passenger demand for air travel, disposable income, and overall profitability.
Fuel Prices: Volatility in fuel prices impacts operational costs significantly, influencing ticket
prices and profit margins.
Legal and Regulatory Environment:

Regulatory Compliance: Adherence to aviation regulations, safety standards, and

government policies (foreign investment limits, FDI regulations, aviation laws) is crucial for
operations.
Advancements in Aircraft Technology: Newer, more fuel-efficient aircraft impact
operational costs and environmental sustainability.
Digitalization and Automation: The adoption of digital platforms for ticketing, booking
systems, and customer engagement affects operational efficiency and customer experience.
Consumer Preferences: Changing consumer preferences, travel habits, and expectations in
terms of service quality, convenience, and amenities.
Safety and Security Concerns: Public perceptions of airline safety standards and security
measures impact customer trust and loyalty.
Internal Contextual Dimensions:
Organizational Culture:

Leadership Style: The leadership approach and management practices influence employee
morale, engagement, and decision-making processes within the company.
Employee Relations: The company's approach to employee welfare, training, and career
development impacts workforce productivity and retention.
Financial Context:

Financial Performance: The financial health of the company, including revenue streams,
cost structures, profitability, and debt management, influences strategic decisions and
investments.
Operational Challenges:

Service Quality: Ensuring consistent service quality, on-time performance, and operational
efficiency.
Maintenance and Safety Standards: Maintaining high safety standards and adherence to
regulatory requirements in aircraft maintenance and operations.
Brand Image and Reputation:

Customer Perception: Public perception of the brand, customer satisfaction levels, and
brand loyalty influence market positioning and competitiveness.
Strategic Alliances and Partnerships:

Alliances with Other Airlines: Collaborations and partnerships with other airlines or service
providers impact market reach, code-sharing agreements, and operational synergies.
Understanding these contextual dimensions is crucial as they provide insights into how
external and internal factors shaped Kingfisher Airlines' strategies, operations, challenges
faced, and responses in the dynamic aviation industry landscape.
Technology Investments: The airline's partnership with Sabre Airline Solutions reflects a
response to technological advancements in aviation, showcasing an adaptation to industry
innovations to improve operations and passenger experiences.
Financial Stability and Growth: The mention of contracts, revenue management systems, and
training programs indicates the airline's focus on growth and operational efficiency despite
challenges in the economic environment.
Regulatory and Political Factors:
Compliance and Regulatory Adherence: The implementation of SabreSonic Passenger
Solutions and adherence to aviation standards reflect the airline's efforts to comply with
industry regulations and enhance safety and operational standards.
Market Dynamics and Competition:
Service Excellence and Differentiation: Recognition for service excellence and initiatives like
the Joint Aviation Authorities Airline Transport Pilot License (JAA ATPL) Pilot Ground
Training course depict a strategy to differentiate and compete in a crowded airline market.
Workforce and Organizational Culture:
Talent Management and Training: Emphasizing recruitment strategies involving multiple
tests, comprehensive training campaigns, and a structured selection process suggests a focus
on acquiring skilled personnel and nurturing a competent workforce.
Customer Expectations and Market Trends:
Adapting to Changing Market Demands: Leveraging technology for market analysis and
revenue maximization demonstrates an effort to adapt to evolving customer preferences and
market trends.
Globalization and International Operations:
Global Partnerships and Expansion: Collaborations with international technology providers
like Sabre Airline Solutions and Pratt & Whitney reflect Kingfisher's globalization efforts and
the need to integrate with global standards and systems.
ORGANISATIONAL CULTURE

Kingfisher Airlines is well-known for its pared-down, unconventional business model. Its focus
on punctual arrivals and departures, and no-frills, yet friendly service, has helped the airline to
thrive in a time when many others are failing. Kingfisher approach may not be for everyone,
but those looking for a great value and dependability find Kingfisher Airlines to be the perfect
choice.
1. Kingfisher is known for its flight attendants' and pilots' kooky in-flight announcements
and playful attitudes. Even the CEO has a sense of humor; his main focus is to satisfy
the customer in every need. Kingfisher proves that it is possible to have a good time
while saving money.
2. Kingfisher is dedicated to keeping its employees happy, and it shows in the lack of
turnover. Most airlines laid off employees due to sagging sales, but Kingfisher kept all
of its personnel. This loyalty, combined with a profit sharing program and a much
higher ratio of supervisors to employees than most airlines, explains why employees
perform so efficiently and enthusiastically.
3. Kingfisher is famous for its lack of assigned seating. While some, especially those
boarding last, lament the inability to choose a seat, it is one reason the airline is able to
board its passengers so quickly. Kingfisher considered adopting assigned seating after
complaints from frequent business travelers, but simply modified it instead. Open
seating is still used, but now customers are assigned a number in line, so that less
standing time is required when passengers go to the appropriate queue (A, B or C,
depending on check-in time)
4. Innovation (Risk Orientation)
Innovation is the mainstay of Kingfisher Airlines Ltd Debt Restructuring; the culture at
Kingfisher Airlines Ltd Debt Restructuring encourages innovation and risk-taking.
They trust their employees to come up with innovative and new ideas. Kingfisher
Airlines Ltd Debt Restructuring realizes the importance of innovation, and the
company's culture promotes innovation, which means that the company encourages its
creative employees to add creativity to their performance. Innovation is nurtured when
the employees' organizational culture and personal characteristics focus on creative and
innovative ideas (Scott & Bruce, 1994).
5. Attention to Detail (Precision Orientation)
Kingfisher Airlines Ltd Debt Restructuring puts effort and attention to detail when it
comes to designing a new product or to design policies for the employees to create a
positive culture. Kingfisher Airlines Ltd Debt Restructuring gives the right amount of
attention to detail, as low attention to detail can result in a lack of systematic processes
and can also impact quality and productivity (Miron, Erez, & Naveh, 2004). Also, too
much attention to detail could detract the attention needed from the resources to
generate new and innovative ideas; hence Kingfisher Airlines Ltd Debt Restructuring
keeps an optimal approach towards attention to detail (Miron-Spektor, Erez, & Naveh,
2007).

6. Emphasis on Outcome (Achievement Orientation)

The company gives flexibility to its sales force to do whatever they want to do to
generate sales, and the Kingfisher Airlines Ltd Debt Restructuring is focused on the
outcomes. Kingfisher Airlines Ltd Debt Restructuring emphasizes goal and
achievement accomplishment. The company measures the success and performance of
the employee through the achievement of goals. According to research, companies like
Kingfisher Airlines Ltd Debt Restructuring hold their managers and employees
accountable for the success of the company, and such companies do build systems that
reward employees. Companies that have a performance-oriented culture tend to
perform better than those companies which are lacking in creating such a culture
(Nohria, Joyce, & Roberson, 2003).
 CONCLUSION AND INFERENCE

CONCLUSION
Kingfisher Airlines was a prominent Indian carrier that operated from 2005 to
2012. The airline was known for its distinctive blend of luxury and service
excellence, quickly gaining popularity among travelers. However, despite its
initial success, Kingfisher Airlines faced financial challenges that ultimately led
to its closure.

A thorough analysis of Kingfisher Airlines' organizational structure, cultural

dimensions, and contextual factors reveals several key insights. The company's
hierarchical structure, while initially effective in managing a rapidly growing
airline, ultimately proved inflexible in adapting to changing market conditions.
Additionally, the emphasis on customer service and luxury experiences, while
initially attracting a loyal customer base, became unsustainable as financial
pressures mounted.

The external contextual factors that impacted Kingfisher Airlines included the
global economic downturn, the rise of low-cost carriers, and the increasing
competition in the Indian aviation industry. These factors made it increasingly
difficult for Kingfisher Airlines to maintain profitability and compete
effectively in the market.

Internal contextual factors, such as the airline's high operating costs, its debt
burden, and its decision to expand into international markets without adequate
preparation, also contributed to its downfall. These challenges were
compounded by the company's inability to adapt its management practices and
organizational structure to address the changing market dynamics.
INFERENCES
The case of Kingfisher Airlines provides valuable lessons for businesses
operating in dynamic and competitive industries. It highlights the importance of
organizational agility, adaptability, and a focus on operational efficiency.
Additionally, it underscores the need to carefully consider external and internal
contextual factors when making strategic decisions.

Key takeaways from the analysis of Kingfisher Airlines include:

• A rigid organizational structure can hinder a company's ability to adapt to

changing market conditions.
• Excessive emphasis on luxury and service excellence can become
unsustainable during financial constraints.
• External factors such as economic downturns and competitive pressures
can significantly impact a company's profitability.
• Internal factors such as high operating costs, debt burdens, and ill-
conceived expansion strategies can contribute to a company's downfall.
• Organizational agility, adaptability, and a focus on operational efficiency
are crucial for success in dynamic and competitive industries.

By understanding the factors that contributed to Kingfisher Airlines' success

and eventual downfall, businesses can learn valuable lessons and make
informed decisions to enhance their sustainability and competitiveness in the
face of evolving market conditions
 REFERENCES

• https://in.linkedin.com/company/kingfisher-airlines
• http://fernfortuniversity.com/term-papers/porter5/lse/412-kingfisher-plc.php
• https://casemarathon.com/darden/kingfisher-airlines-ltd-debt-restructuring/porters-
analysis.php
• https://freepestelanalysis.com/pestel-pestle-analysis-of-kingfisher-airlines/
• https://embapro.com/frontpage/pestelcase/10002-kingfisher-airlines
• https://www.slideshare.net/dspatra/analysis-of-kingfisher-airlines
• https://www.slideshare.net/SuryadevMaity/org-structurekingfisher-airlines
• Company Overview Of Kingfisher Airlines Limited Management Essay (ukessays.com)
• Organizational Business Culture of Kingfisher Airlines - Essay (allfreepapers.com)
• Organizational Culture for Kingfisher Airlines Ltd Debt Restructuring
(247caseanalysis.com)