Kingfisher Airlines- Fly the good times

Sector structure/Market size

With a growth rate of 18 per cent per annum, the Indian aviation industry is one of the fastest growing aviation industries in the world.

Today, private airlines account for around 75 per cent share of the domestic aviation market.

India has jumped to 9th position in world's aviation market from 12th in 2006. The scheduled domestic air services are now available from 82 airports as against 75 in 2006.

Road Ahead Passenger traffic is projected to grow at a

CAGR of over 15 per cent in the next 5 years.

The Vision 2020 statement announced by the Ministry of Civil Aviation, envisages creating infrastructure to handle 280 million passengers by 2020.

Investment opportunities of US$ 110 billion envisaged up to 2020 with US$ 80 billion in new aircraft and US$ 30 billion in development of airport infrastructure.

CompanyProfile

It is a private airline based in Bangaluru, India, owned by the United Beverages Group.

Kingfisher Airlines Limited is India's largest airline.

Operates more than 400 flights a day, network of 77 destinations, with regional and long-haul international services.

One of six airlines in the world to have a five-star rating

Kingfisher Airlines, through one of its holding companies United Breweries Group, has acquired 26% stake in the budget airline Air Deccan and has option to buy further of 20% stake from the secondary market.

A strategic code-sharing agreement with Jet Airways, & an alliance with the Hilton Hotels Corporation.

Headquarters: UB City, Bangaluru

Started operations on 9 May 2005, following the dry lease of four brand new Airbus A320-200 aircraft.

Its first flight was from Mumbai to Delhi

At the launch of the airline, Dr. Mallya said that he is "committed to achieving our ambition of making Kingfisher Airlines India's largest private airline both in capacity and market share by 2010.“

Brand ambassador : Deepika Padukone

In January 2007, Kingfisher entered into a multi-year partnership deal with Toyota Motorsport to be an official partner of the Toyota F1 racing team.

In October 2007, the airline announced Deepika Padukone as its brand ambassador, replacing Yana Gupta.

In September 2008, Kingfisher announced its plans to raise US$ 100 million through equity.

MILE STONES ON ITS WAY

On 13 October 2008, Kingfisher chairman Vijay Mallya and his Jet Airways counterpart Naresh Goyal announced a strategic alliance after a meeting in Mumbai.

The alliance was formed to implement code-sharing between the two airlines on both domestic & international flights, joint fuel management to reduce expenses, common ground handling, joint utilization of crew & sharing of their frequent flier programmes, namely King Club & Jet Privilege.

On 12 January 2009, Kingfisher Airlines announced its alliance with Hilton HHonors, the guest rewards program for the more than 3,000 hotels of the Hilton Hotels Corporation worldwide.

The new alliance allows members of the King Club frequent flyer programme to earn both King Miles and Hilton HHonors points when they stay at Hilton Hotels.

Product Analysis Domestic & International Air Transport

Service. 74 domestic destinations & 3 international

destinations in 3 countries across Asia & Europe.

On 3 September 2008, Kingfisher Airlines began its international operations by connecting Bangaluru to London.

Major attributes

Safety Service Happiness Teamwork Accountability

Kingfishers design there words……

Business Strategy A single class combined with the experience of business class with

economy.

The fares are positioned in between that of a low cost carrier and the economy class fares of Jet, Sahara etc.

KFA allows multiple fare options and auctioning of tickets on all traffic route

The marketing department showcased the airlines as ‘The new flying experience’.

Offer in-flight silent auctions for lifestyle products and in-flight sales of dry packaged food and beverages.

Special fares for all personnel serving in the Indian Armed Forces, the Union Government, State governments, and employees of all public sector units in the country.

Marketing Strategy Kingfisher Airlines is the first carrier in the country to offer live in-

flight entertainment.

Kingfisher Airlines Ltd and Dish TV have joined hands to provide live inflight entertainment on Kingfisher aircraft.

The service would enable airline’s customers to book air travel ticket after securing ‘ngpay’ application on their GPRS-enabled mobile handsets.

On the promotional front, Kingfisher has signed up Ms.Deepika Padukone as the Brand Ambassador.

Ambush advertising as shown in the strategic placement of own advertisement hoardings vis-à-vis those of Jet Airways.

Smart King…..

Customer Recovery & Relationship Management

Frequent Flier Program

King Club Membership

Mileage Accrual Benefit

Airport Facilities for King Club Members

Swot Analysis

Strengths:1. Strong brand value and reputation.2. Quality of service.3. First airline to have new fleet of airbuses.

Weaknesses:1. High ticket prices.2. Still not a profit making organization.

Swot contd….. Opportunities:1. The expanding tourism Industry.2. Untapped Air cargo market.3. Under penetrated Domestic Market.

Threats:1. Number of competitors.2. Increasing popularity of low cost airlines eg.

SpiceJet, GoAir.3. Fuel Price Hike.

References:

Indian Brand equity Foundation website, www.ibef.com.

Assam times, Community Newspaper Business section of website Maps of

India.com. En.wikipedia.org/wiki/Airline#Airline_personnel www.indianchild.com/india_civil_aviation.html Kingfisherblog.wordpress.com www.iloveindia.com/economy-of-india www.bangaloreaviation.com