Kingfisher airline

Kingfisher AirlinesKingfisher Airlines

……………….The king of good times.The king of good timesBy Shruti Bhatia, IILM Lodhi RoadBy Shruti Bhatia, IILM Lodhi Road

One of the fastest growing industries in the world.One of the fastest growing industries in the world.

Origin of Indian aviation industry can be traced Origin of Indian aviation industry can be traced back to the year 1912.back to the year 1912.

India has the private airlines as its key playersIndia has the private airlines as its key players

75% of the market share is owned by the private 75% of the market share is owned by the private sector.sector.

Problems that the Indian aviation industry is Problems that the Indian aviation industry is facing and thus immediate attention is needed.facing and thus immediate attention is needed.

AVIATION INDUSTRYAVIATION INDUSTRY AVIATION INDUSTRYAVIATION INDUSTRY

High rising prices of the ATF.High rising prices of the ATF. The cost of labour is rising in our country The cost of labour is rising in our country Shortage of skilled labour Shortage of skilled labour Infrastructure constraints.Infrastructure constraints.

Main players in the aviation industry....Main players in the aviation industry.... Jet airwaysJet airways KingfisherKingfisher IndianIndian Spice jetSpice jet Air IndiaAir India

AVIATION INDUSTRYAVIATION INDUSTRY AVIATION INDUSTRYAVIATION INDUSTRY

MARKET SHAREMARKET SHARE

Current ScenarioCurrent Scenario

Jet Airlines + Air Sahara-> Jet & Jet Lite -> 29.4 %Jet Airlines + Air Sahara-> Jet & Jet Lite -> 29.4 %

Kingfisher + Deccan -> 28.9 %Kingfisher + Deccan -> 28.9 %

Indian Airlines + Air India -> 19.8%Indian Airlines + Air India -> 19.8%

Dr Vijay Mallya is the Chairman and CEO Dr Vijay Mallya is the Chairman and CEO of Kingfisher Airlinesof Kingfisher Airlines

Kingfisher Airlines Limited launched Kingfisher Airlines Limited launched scheduled airline services on May 9, 2005 scheduled airline services on May 9, 2005 with 4 daily flights between BOM & BLR with 4 daily flights between BOM & BLR and one A-320 aircraft.and one A-320 aircraft.

There are tools for mood lighting such as There are tools for mood lighting such as web chat, inseat plugins for music, liveTV web chat, inseat plugins for music, liveTV with 16 channels on each seatwith 16 channels on each seat

100 percent E ticket airline100 percent E ticket airline

Kingfisher airlinesKingfisher airlines Kingfisher airlinesKingfisher airlines

POLITICAL FACTORSPOLITICAL FACTORS

1) 1) Open sky policyOpen sky policy

2)2) FDI limits: 100% for Greenfield airports FDI limits: 100% for Greenfield airports

74% for the existing airports74% for the existing airports

100% through special permission100% through special permission

49% for airlines.49% for airlines.

ECONOMICAL FACTORSECONOMICAL FACTORS

1) 1) Contribution to the Indian economy.Contribution to the Indian economy.

2) Rising cost of fuel.2) Rising cost of fuel.

3) Investment in the sector of aviation.3) Investment in the sector of aviation.

4) The growth of the middle income group family affects the aviation sector4) The growth of the middle income group family affects the aviation sector

PESTEL ANALYSIS PESTEL ANALYSIS PESTEL ANALYSIS PESTEL ANALYSIS

SOCIAL FACTORSSOCIAL FACTORS

1)1) Development of cities leads to better services and airports. Development of cities leads to better services and airports.

2)Employment opportunities.2)Employment opportunities.

3)Safety regulations.3)Safety regulations.

4) The status symbol attached to a plane travel.4) The status symbol attached to a plane travel.

TECHNOLOGICAL FACTORSTECHNOLOGICAL FACTORS 1) The growth of e-commerce and e-ticketing.1) The growth of e-commerce and e-ticketing.

2) Satellite based navigation system.2) Satellite based navigation system.

3) Modernisation and privatisation of the airports.3) Modernisation and privatisation of the airports.

4) Developing green field airports with private sector for example in 4) Developing green field airports with private sector for example in Bangalore the airport corporation limited.Bangalore the airport corporation limited.


ENVIRONMENTAL FACTORSENVIRONMENTAL FACTORS 1)The increase in the global warming.1)The increase in the global warming.

2)The sudden and unexpected behavior of the atmosphere and the 2)The sudden and unexpected behavior of the atmosphere and the dependency on whether.dependency on whether.

3)Shortage of the infrastructural capacity3)Shortage of the infrastructural capacity

4)Tourism saturation4)Tourism saturation..

LEGAL FACTORSLEGAL FACTORS 1) FDI limits1) FDI limits

2) Bilateral treaties2) Bilateral treaties

3) Airlines acquisitions and the leasing cost.3) Airlines acquisitions and the leasing cost.


PRODUCTPRODUCT

Currently the kingfisher airline operates the aircrafts like the airbus Currently the kingfisher airline operates the aircrafts like the airbus

A 320, A 319-100 and ATC-72.A 320, A 319-100 and ATC-72.

After acquiring the Deccan kingfisher has started a new fleet known After acquiring the Deccan kingfisher has started a new fleet known

as kingfisher red. as kingfisher red.

Here we emphasis on the kingfisher airlines.Here we emphasis on the kingfisher airlines.

The 4Ps …. The 4Ps …. The 4Ps …. The 4Ps ….

PLACEPLACE Covers even the toughest terrains in the country, and the services Covers even the toughest terrains in the country, and the services

ranges from Ahmadabad to Agartala and to the major cities such as ranges from Ahmadabad to Agartala and to the major cities such as Delhi, Bangalore, and Chennai etc.Delhi, Bangalore, and Chennai etc.

The main strategy that kingfisher follows is to target the metro cities or The main strategy that kingfisher follows is to target the metro cities or the tier 1 cities in India.the tier 1 cities in India.

PROMOTION PROMOTION There are many events and advertisements through which kingfisher There are many events and advertisements through which kingfisher

airlines is promoted.airlines is promoted. There are multiple touch points and finer promotional services working There are multiple touch points and finer promotional services working

for the promotional activities.for the promotional activities. Loyalty and frequent flyer programs are also carried out.Loyalty and frequent flyer programs are also carried out.


PRICEPRICE

The price segments that kingfisher targets is the higher income The price segments that kingfisher targets is the higher income

group as well as the upper middle class background.group as well as the upper middle class background.

There are a few segments that are majorly for the youth and the high There are a few segments that are majorly for the youth and the high

lifestyle segments.lifestyle segments.

Sec A, sec B+ socio economic class mainly in the age group of 25-Sec A, sec B+ socio economic class mainly in the age group of 25-

45 years are the main segments for which there is a specific prices 45 years are the main segments for which there is a specific prices

offered by kingfisher.offered by kingfisher.

Some of the services offered by kingfisher do emphasis on their Some of the services offered by kingfisher do emphasis on their

policy to target those segments which are willing to pay for luxury.policy to target those segments which are willing to pay for luxury.


S.W.O.T. ANALYSISS.W.O.T. ANALYSIS

STRENGTHSSTRENGTHS• Strong brand value and reputation in the minds of customers.Strong brand value and reputation in the minds of customers.• Quality of the service.Quality of the service.• Route rationalization.Route rationalization.• First airline to have a new fleet of airbuses.First airline to have a new fleet of airbuses.• Quality and continuous innovation.Quality and continuous innovation.

WEAKNESSESWEAKNESSES

• Still a not in profit organization.Still a not in profit organization.• High ticket pricing.High ticket pricing.• Facing a tough competition from competitors.Facing a tough competition from competitors.

OPPORTUNITIESOPPORTUNITIES

• The expanding tourism industry.The expanding tourism industry.• The non penetrated domestic market.The non penetrated domestic market.• International market.International market.• Untapped air cargo market.Untapped air cargo market.

THREATSTHREATS

• CompetitorsCompetitors• Infrastructure issues.Infrastructure issues.• Fuel price hike.Fuel price hike.• Tourism saturationTourism saturation• Economic slowdown.Economic slowdown.• Promotions and sponsorship declining.Promotions and sponsorship declining.

S.W.O.T. ANALYSISS.W.O.T. ANALYSIS

SUGGESTIONSSUGGESTIONS Reduce the labor costReduce the labor cost

Simplify the flight operationsSimplify the flight operations

Offer more transparent pricingOffer more transparent pricing

Get smart on fuelGet smart on fuel

The process of acquiring spice jet if The process of acquiring spice jet if

complete would make kingfisher the largest complete would make kingfisher the largest

player in the aviation industryplayer in the aviation industry

Different modes of pricing should be taken Different modes of pricing should be taken

care of.care of.

Kingfisher airline

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