COMPANY FACTS PRESENTAION

ON

KINGFISHER

AIRLINES

LOGO OF THE COMPANY

INTRODUCTION & HISTORY

• Kingfisher Airlines is a subsidiary of the

UB Group, one of the largest beverage

companies in the world .

• The destinations covered by Kingfisher

Airlines are

Bangalore, Mumbai, Delhi, Goa, Chennai,

Hyderabad, Ahmedabad, Cochin, Guwahati

, Kolkata, Pune, Agartala, Dibrugarh, Mang

alore and Jaipur.

• Kingfisher Airline is a private airline based in Bangalore, India. The airlines owned by Vijay Mallya of United Beverages Group.

• Kingfisher Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts.

VISSION & MISSION

• Vision –

“The KFA family will

continually deliver a

safe, value based and

enjoyable travel experience

to all our guests.”

• "Kingfisher Airlines will

have 'Fly the Good Times'

approach and this will

reflect in the experience

we will offer to

passengers.“

LOCATION OF THE COMPANY-HO

• King fisher airlines limited

was an airlines group based

in india.

• Its head office is in andheri

,mumbai.

• Its registered office in UB city

Bangalore.

Company structure

BOARD OF DIRECTORS

• Dr. Vijay Mallya, Chairman & Managing Director

• Mr. Subhash R. Gupte, Vice Chairman

• Mr. A. K. Ravi Nedungadi

• Mr. Manmohan Singh Kapur

PRESIDENT & CFO - THE UB GROUP Mr. A. K. Ravi Nedungadi.

CHIEF EXECUTIVE OFFICER Mr. Sanjay Aggarwal

BOARD OF DIRECTORS AND KEY PEOPLE

OPERATIONAL PERFORMANCE

Overall company performance highlights: FY12

Total revenue of Rs. 5,715 Cr (-11.8% vs. FY11)

Passenger revenue declined by 11.8% over FY11

EBITDA loss of Rs. 855 Cr vs. profit of Rs. 140 Cr in FY11 (a decline of Rs. 995 Cr

over FY11)

EBITDAR profit of Rs. 13 Cr vs. profit of Rs. 1,124 Cr in FY11)

Total RASK (revenue per available seat kilometers)declined to Rs. 3.72 from Rs.

4.01 in FY11 (-7%)

Passenger RASK declined by 8% over FY11 (Rs. 3.48 to Rs. 3.20)

Ex-fuel EBITDAR CASK(cost avialble seat per kilometer) reduced to Rs. 1.79 from

Rs. 1.92

in FY11 (-7%)

CASK (EBITDA) increased by 9% over FY11 (Rs. 4.28 from Rs. 3.93) (Earnings

before interest, taxes, depreciation and amortization)

AWARDS AND ACHIEVEMENTS

„Best Airline in India and Central Asia‟, „Best Economy Class Seats‟ and „Staff

Service Excellence Award for airlines in India and Central Asia‟ in World Airline Awards,2010

'5-STAR AIRLINE' award by Skytrax for 3rd consecutive year, 2010

'IndIa’s Favourite Airline' in HT MARS Consumer Satisfaction Survey

, 2009(hindhustan times)

Kingfisher Airlines frequent flyer programme, King Club has won Top Honors at the

21st Annual Freddie Awards in the Japan, Pacific, Asia and Australia region.

NDTV Profit Business Leadership Award for Aviation"

Kingfisher Airlines has received three global awards at the SKYTRAX

World Airline Awards

NDTV Profit Business Leadership Award for Aviation"

awarded to Kingfisher Airlines by NDTV twice in two years

"India's only 5 Star airline", rated by Skytrax and "6th airline in the world"

rated India's "Second Buzziest Brand 2008" by agfaqs! and The Brand

Reporter

ranked amongst India's "Top Service Brands of 2008"

in a ranking by Pitch magazine

Economic Times Avaya Award 2006 for Excellence in "Customer

Responsiveness"

FINACIAL POSITION

BEFORE CRISIS AFTER CRISIS

MAKET SHARE WAS 28% MARKET SHARE WAS 3.44%

SHARE HOLDERS

PROFIT AND LOSS STATEMENTS

BALANCE SHEET

1569.9

5868.07

4734.62

6314.965823.91

1781.46

5822.37 4747.51

5289.34

7651.81

-188.14 -1608.83 -1647.22-1027.4

-2328.01

-4000

-2000

0

2000

4000

6000

8000

10000

FY 08 FY 09 FY 10 FT 11 FY 12

INCOME

EXPENDITURE

PROFIT

COMPETITORSATTRIBUTES KINGFISHER JET AIRWAYS SPICE JET

Price 25% higher than jet

Airways and Indian

Lower than

Kingfisher airlines

Extremely low

Permission to fly to

US

NO YES NA

Permission to fly to

UK

YES YES NA

IPOINTIAL PUBLIC OFFERINGS

Floated Floated Floated

Targeted Customer Both ends of

customer

Both ends of

customer

Lower end of

customers

Positioning Premium Domestic

Segment

Premium Domestic

Segment and

international

Segment

Lowest fares and no

frills

PESTLE ANALYSIS

• Open sky policy ( INCRESE IN FUEL PRICE)

POLITICAL FACTORS

(Foreign direct investments)

• FDI limits: 100% for Greenfield airports

74% for the existing airports

100% through special permission

49% for airlines

ECONOMICAL FACTORS

Contribution to the Indian economy.

Rising cost of fuel.

Investment in the sector of aviation.

The growth of the middle income group family affects the aviation sector.

SOCIAL FACTORS

Development of cities leads to better services and airports.

Employment opportunities.

Safety regulations.

The status symbol attached to a plane travel.

TECHNOLOGICAL FACTORS

The growth of e-commerce and e-ticketing.

Satellite based navigation system.

Modernisation and privatisation of the airports.

Developing green field airports with private sector for example in Bangalore the

airport corporation limited.

The sudden and unexpected behavior of the atmosphere and the

dependency on whether

ENVIRONMENTAL FACTORS

LEGAL FACTORS

FDI limits

Swot Analysis

Strong brand value and reputation in the minds of the consumer.

UB group as the parent company.

Quality service and innovation.

More than 80 destinations.

Less than 100 people (employees) per aircraft.

Strength

Weakness High maintenance cost at ground and airline.

High ticket pricing (KF First & Class).

Tough competition from Indian as well as international players.

Heavy Debt.

Swot Analysis

OPPORTUNITIES

Threat

If able to survive for a couple of years, then can have a big

market share.

Expanding tourism business.

Reputation of providing the best Quality & Services in Indian

skies.

Growth in air travel, with businesses and markets doing better.

Rising Fuel Costs.

Rising Labour Costs.

Other low cost airlines providing better services.

Government initiatives in railways with fast running trains

like Duronto.

Economic slowdown.

P‟s

PRODUCT

PRICE

PLACE

PROMOTION

PEOPLE

PROCESS

PHYSICAL EVIDENCE

Product

In-Flight entertainment

1. Core

Transportation

2 Supplementary

Check in

Food on board

Connecting flight

Complementary gifts

In-flight entertainment

Frequent flier programs

PriceBased on

Class of travel

Load factors

Date of travel

Day of travel

Profit margins

Competitors pricing

PLACE

“Vijay Mallya” himself is a brand and the brand “Kingfisher” has also established a remarkable standing in the market place

Kingfisher has a wide distribution channel that gives easy access to it‟s customers

Tickets can be booked through various channelsConsolidation

Tour Operator/ Travel Agency (Clear trip, make my trip.com

Affiliated with companies

Direct through home leased system

Kingfisher has a plush corporate office

in Andheri, well equipped with trained

employees & has a spread of offices

across India

Promotion:

advertisements & publicity

Brand ambassadorHoardings

Media & Press Releases Tag lineNDTV good times

King fisher calendar

PEOPLE• At Kingfisher Airlines, „people‟ are the most important „p‟

• People provide most services that is the selection, training, and motivation of

employees

• The airhostesses at Kingfisher come in contact with the customers in the process of

providing the service, while the cock-pit crew are employees who contribute to the

service product but do not come in direct contact with the customers.

• Dr. Mallya handpicks the air hostesses for his Airlines as they is expected to possess

a pleasing personality with polite service handling

• Whereas the cock pit crew at Kingfisher Airlines require to possess high analytical and

technical skills

• Also at Kingfisher, there is the ancillary service personnel, the travel agent who plays a

very important role in creating the service exchange but is not a part of the service.

• At Kingfisher Airlines, the front line staff play a critical role in ensuring that the service

is delivered to the customers as promised

PROCESSThe process of Kingfisher airlines‟ service lays emphasis on the

involvement of channels, front line staff, travel agency offices, offices of the

tour operators or so form where the services flow & reach to the ultimate users.

The process begins at the time of reservation goes on to the

confirmation of seats. For e.g.: Computer reservation system of

Kingfisher Airlines enables any reservation request from anywhere in the

world to be auctioned in minutes. The reservation facility is accessible through

all-major computerized reservation system of the world.

By giving details of where to book and how to book Kingfisher airlines

help in providing quality services to the customers.

They also offer concession, by not charging any cancellation charges and also

giving them the option to make a change in the reservation status if they request.

All these facilities go a long way in increasing passenger convenience.

PHYSICAL EVIDENCE• Physical Evidence refers to the environment in which the service is

delivered and where the service industry and customer interact.

• At Kingfisher Airlines, the aircraft by itself, the seating configuration which is

meant to be comfortable and spacious, and the in-flight food provided would

make up the physical evidence in this service.

• Boeing & Airbus are the 2 best commercial aircraft makers and almost all

airline industries make use of one of these airlines. The seating is such

that it is comfortable and there is enough leg space.

• The in-flight food is another, important aspect, a wide selection of meals is

offered to the passengers. Passengers are requested to indicate

their reference at the time of reservation itself. Kingfisher Airlines has

introduced new sleeper seats with electric controls for reclining lumbar

support, leg rest extension, expanded seat back height for a more

insulated environment, thus providing highly comfortable seating.

Conclusion

• The ROI is low for kingfisher airlines.

(ROI = Profit / Capital Employed)

• Being a private carrier it has potential to improve on its

margins with effective cost reduction policies.

• The strategy of Vijay Mallya is that he uses Kingfisher

Airlines to popularize his beer “Kingfisher” thus helping him to

leverage his brand name to a win-win situation in both his

businesses .

THANKU……………………..

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