Competive strategy of Kingkisher and Indigo Airlines
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Transcript of Competive strategy of Kingkisher and Indigo Airlines
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8/2/2019 Competive strategy of Kingkisher and Indigo Airlines
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Presented To:-
Prof. Jitendra Singh Chouhan
Presented By:-
Vikas Pal
Lohit Shende
Hitesh Chand1
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First commercial flight in India was made on February18, 1911.
Tata Services became Tata Airlines and then Air-India.
In 1953, the government nationalized the airlines, andcreated Indian Airlines.
JRD Tata remained the chairman of Air-India and adirector on the board of Indian Airlines.
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Political: Govt. is not stable.
modernization of airports
Entry barriers for new players
Economy: Contribution to economy
Disposable income is increasing
GDP is expected to grow up to 9%
Rising fuel cost
Social: Developments in airport cities
Employment opportunitiesSafety regulation
Technology: growth of electronic ticketing
Satellite based navigation system
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It is owned by theBangalore based UnitedBreweries Group.
Mr. Sanjay Agrawal is theCEO of Kingfisher Airlines.
Kingfisher Airlines serves63 domestic destinationsand 8 international
destinations. Kingfisher operates more
than 375 daily flights. A Fleet of 66 Aircrafts.
It is parent company of theairline is Gurgaon-basedInterGlobe Enterprises
Former US Airways EVPMarketing and PlanningBruce Ashby is CEO ofIndiGo.
IndiGo operates to 31destinations in India and 5international destinations.
IndiGo operates more 275daily flights.
It has a fleet of 48 Aircrafts
4Source: flyKIngfisher.com Source: goindigo.in
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Kingfisher Airlines wasestablished in 2003.
It was founded by Mr. VijayMalya.
The airline startedoperations in 9 May 2005from Mumbai to Delhi.
It started its internationaloperations on 3 September2008 by connectingBangalore with London.
IndiGo was established inyear july 2006.
IndiGo was founded byRakesh Gangwal and RahulBhatia.
Its commenced operationson 4 August 2006 with aservice from New Delhi to
Imphal via Guwahati. it was announced to begin
international services on 1September 2011
5Source: flyKIngfisher.com Source: goindigo.in
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Kingfisher Airlineswill have 'Fly the GoodTimes' approach andthis will reflect in the
experience we willoffer to passengers.
"IndiGo is a veryquality consciousairline and passengersafety is paramount
to our company'smission and values,"
6Source: flyKIngfisher.com Source: goindigo.in
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(UB Group)
Fertilizers:MangaloreChemicals &
Fertilizers Limited Aviation
Engineering (DreamBuilders)
International Trading
Beverage Alcohol
Aviation
Hotels
BPO
IT
(Interglobe)
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8Source: DGCA
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Kingfisher Airlines is the first carrierin the country to offer live in-f light
entertainment. Kingfisher Airlines Ltd and Dish TV
have joined hands to provide live in-flight entertainment on Kingfisheraircraft.
The service would enable airlines
customers to book air travel ticketafter securing ngpay application ontheir GPRS-enabled mobile handsets.
On the promotional front, Kingfisherhas signed up the latest divaof Bollywood Ms. Deepika Padukone
as the Brand Ambassador.
A single passenger class.
Single type of airplane to reduce
training and service cost. No frills such as free food/drinks,
lounges.
Emphasis on direct sale of ticketthrough Internet to avoid fee andcommissions paid to travel agents.
Employees working in multiple roles.
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Luxury travel tomultiple destination
Flying to keydestinations across thecountry.
Finest cuisine withvariety.
Brand new fleets ofairbus A-320s & ATRs
Affordable travel
On time arrivals.
Customers loyalty.
Cuisines are notincluded in flight fares.
Use only one type ofaircraft.
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As per strategiesKingfisher airlines, they
are successfully able totarget higher incomegroup peoples but due tohigh operation cost theyarent able to attract to
target middle incomepeoples, which results indecreasing market shareof 22.7% to 19%.
IndiGo has alwaystargeted middle income
group by providingaffordable air travelling,which has increase itsmarket share and still
growing.
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First airline with full newfleet of aircraft.
Brand image withflamboyant personality ofMr. Vijay Malya.
Unmatched in flightservices.
Exclusive terminal sharedeal
Route rationalization
IndiGo has high brandawareness and brand equity.
Cost leadership: Successful
implementation of low coststrategy.
Highly efficient managementthat ensures high rate of on-time arrivals.
Continuous innovation to
improve on non price factors. Tie-up with hotels.
Ease of ticket booking forcustomers
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Highly priced for serviced
offer.
Yet to break
even
High attrition at the top
brass
Scope of productdifferentiation is less
Benefits of the innovationsimplemented by IndiGo toprovide better services tothe customers are short-lived, as these can be easilyimitated by the
competitors IndiGo is not exploring the
untapped domestic aircargo market.
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Under penetrated
domestic markets.
International market.
Untapped air cargo
market.
Expanding tourismindustry.
IndiGo airlines have not ventured
into the huge air freight market which
can contribute a sizeable portion of
the revenue. The flight densitnation of IndiGo
airlines is limited .
The huge untapped international
sectors.
IndiGo airlines should focus on longhaul aircrafts both for domestic and
international sectors.
The chartered flight services still
remain an area not exploited by
Indian aviation industry.15
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Existing operators.
Infrastructure issue.
Fuel price hike.
Economic slow down.
Huge competition from
other Domestic andInternational players
ATF prices have increasedradically since 2005.
Foreign and private players oftenpoach work-force ofcompetitors.
Extensive GovernmentInterference can affect theaccountability of theorganization.
Economic slow down The shortage of trained pilots,
co-pilots and ground staff isseverely limiting the growthprospects of all the airlinecompanies.
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Kingfisher airlines isturning in Dog from Star
because of high loss anddecrease in market sharein last few years, i.e. 1027cores.
Indigo is moving towardsStar from Question mark
due to increase in profitand market share incompare to any othercompany, profit of
Indigo airlines in yearNov 2011 is 650 cores.
Source: Danik Baskar 17 Nov. 2011
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Remove the flights fromlow frequency routes.
Looking at partneringwith premium hotels.
Try to focus on smalleraircraft .
Avoid full-course meals,give snacks.
IndiGo must increase itsdomestic operations.
Extension to freight andchartered services
Indigo require moreexperienced persons tohandle its Internationaloperations.
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