KINGFISHER

AIRLINES

A BRIEF CASE STUDY

KINGFISHER AIRLINES

kingfisher airline started its operation on 9th may 2005

A major Indian airline based in Mumbai.
Kingfisher Airline is one of the only seven Airlines awarded 5 star rating by
Skytrax.
In may 2009 Kingfisher Airlines Carried more than 1 million passengers.
Total connection of 70 cities and 7 international destinations. Flying over
350 flights a day.
Current fleet size of 67 aircrafts and market share of 20.8%
Recognized as one of the India s most respected companies in 2006.
India s only five star airline

SERVICES
Domestic

Kingfisher first
Kingfisher class
Kingfisher red
International

Kingfisher
Kingfisher
Kingfisher
Kingfisher

first
class
red
Lounge.

Financial strategies
Key

initiative to enhance performance.

New frequent flyer program launch with unique feature

non air rewards , family club etc.
Improve internet booking engine.
Stringent

actions planned and undertaken to

keep cost under control.
Redelivery of non-operational aircraft.
Reduced engineering cost by 10-15 % by induction of
new key vendors.
Fuel monitoring system reduction in fuel consumptions
Control on overheads ,e.g. optimized offices and
warehouse spaces.

 Non

HR Strategies

poaching alliance with Air Deccan

Flying models selection procedure through
national level model contest.
Hand picked staff by Mr. Vijay malya.
Bank on buddy programme.
HR connect magazine.

HR strategy

Marketing Mix
PRODUCT

Domestic and international air journeys

Airbus A-320 , A-319-100 and ATC 72, ATR 72-500 and ATR 42500
Merger with Air Deccan KINGFISHER RED
Kingfisher Elite.
PRICE

Target higher income group

SEC A-1 , A-2 , B-1.
Business class.

PLACE

Wide network major focus metro cities.

Flight bookings.
Book in person
Travel agents
Online
India s first Fly by SMS services.

Promotion strategy
Personal

selling

Travel agency
Offers
Frontline staff
King club
Brand Ambassador
Hoardings
Personal feedback

People
Special luxurious services.
Inflight entertainment
System on every seats
Kingfisher Elite
Custom design Luxurious interiors.
State of the art technology features
Exclusive check-In counters.
Experienced and highly trained professional crew.
Special Assistance
Guest with disabilities and reduced mobility
Unaccompanied minors
Expectant mothers and infant
Other special needs , wheelchair /stretcher.
Special meals

Strategic overview.
KFA

started its customer as GUEST rather then

passengers.
Appealing promotional line FLY THE GOOD
TIMES and it reflected in the experience
company offered to its passengers
KFA gave best services to its customers like
providing world class interiors and in-flight
entertainment systems
KFA came up with only one class airlines
KFA created new category of Aviation
hospitality thus making service and hospitality
main focus.

Swot analysis
STRENGTH

Strong brand value and reputation

Regional connectivity
Efficient staff
Capitalization
Visionor
Quality and continuous innovation

WEAKNESSES

Indian psychology
Infrastructure constrains.
Facing tough competition from
competitors.

OPPORTUNITIES

Expected huge investments

Expanding tourism industry
The non-penetrated domestic
market
Un-tapped air cargo market.

THREATS
Competitors
Fuel price hike
Economic shutdown.

Kingfisher airlines (factors)

POLITICAL FACTORS.
Open sky policies
FDI limits :100% for green field airport
74% for existing airport
100% through special permission
49% for airlines
ECONOMICAL FACTORS
Contribution to Indian economy.
Rising cost of fuel
Investment in sector of aviation
The growth of middle income group affect the aviation
sectors

SOCIAL FACTORS
Development of cities leads to better services and
airports
Employment opportunities
Safety regulation
The status symbol attached to air travel

TECHNOLOGICAL FACTORS

The growth of e-commerce and e-ticketing

Satellite based navigation system.
Modernization and privatization in airport
Development of green field airport with private
sectors e.g Bangalore airport corporation limited.

ENVIRONMENTAL FACTORS
The increase in global warming
The sudden and unexpected behavior of atmosphere
and dependency on weather.
Shortage of infrastructural capacity.
Tourism saturation
LEGAL FACTORS
FDI limits
Bilateral treaties
Airlines acquisition and leasing cost

Reason for failure

1. Lack of delegation is the primary reason. 'I am taking things personally,' Vijay Mallya, chairman of Kingfisher Airlines, says
when it comes to running his airline.
2. Unlike his other two major businesses - the spirits and beer segments - which have been running exceptionally smoothly
under the helm of managing directors, the airline has been crash landing because of one trouble or another with frequent changes
in strategy and direction as well as the absence of no long term CEO or MD.
3. Step-child treatment to Air Deccan
Captain GR Gopinath, who sold his low-cost airline Deccan Airline to Kingfisher Airlines, admitted that there was a disconnect
between the two arms of the airline models. Low-cost aviation business was treated as a step-child. Post the merger, whenever
there was an Air Deccan and Kingfisher flight at almost the same time-slots, a decision was taken to do away with the Air Deccan
flight in the hope that the passengers will graduate to Kingfisher full-service. But just the opposite happened.
4.In-flight interruption
Unlike road or rail transport, where theres much of scenery around to keep you busy, flights are usually boring. Much of the travel
through flights between metros is covered in less than two hours. In-flight entertainment or a movie is started only after the seatbelt signs are off. And then theres interruption of meals being served. Most passengers on domestic flights are not looking forward
to in-flight entertainment. They want to reach their destination on time. In-flight entertainment can be handy for a weary traveller
on international circuits only.
5. Unfair fares
While KFA truly offered a premium and luxury service it took pride in calling itself a budget airlines. It refrained itself from calling
itself an LCC (Low-cost-carrier) as its fares while were higher than the LCCs, it kept its fares lower than Jet Airways, Indian Airlines
(now Air India) and the erstwhile Sahara.
6. Burning fuel
Amidst this all, Dr Mallya forgot that he was operating in a business where fuel costs are variable and taxes are discretionary. Add to
all this the costs of high-blitz advertising, including the deal with Ms Padukone, putting up exclusive lounges at airports, gourmet
cuisine, tele-booking centres, the expansive and expensive frills (touch screen seat controls, sensuous mood lighting, unique starry
sky, in-seat chargers, in-seat massagers, an exclusive amenity kit and facilities like jacket ironing, music streaming through Bose
noise cancellation headphones) in Kingfisher First aircraft costs, acquisition costs of Air Deccan and what not.

Thank
you