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Transcript of Kingfisher Project
Report on KINGFISHER AVIATION
Seminar Report
on
“KINGFISHER AVIATION”
Submitted in Partial Fulfillment for the Award of the Diploma of Post Graduate Diploma in Management
(Session 2011-13)
Submitted to: Submitted By: ARZOO TOMAR
Faculty Name:-H.N SINGH Student Name:ARZOO TOMAR
Internal Guide :-KEENIKA Roll No:-11226 PGDM:1ST YEAR
TRIMISTER SEC-“A”
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INSTITUTE OF MANAGEMENT STUDIES, NOIDA
A UGC Recognized Institute
A-8B, Plot –C, Sector-62, Noida
DECLARATION
I ARZOO TOMAR bearing Roll No 11226 Class PGDM 1 ST YEAR of the Institute
of Management Studies, Noida hereby declare that the Seminar Report-108
entitled PROJECT REPORT ON KINGFISHER AVIATION is an original work and the
same has not been submitted to any other Institute for the award of any other
diploma. The suggestions as approved by the faculty were duly incorporated.
Signature of Student
Countersigned
Signature of Faculty Guide
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ACKNOWLEDGEMENT
I ARZOO TOMAR owe a thanks to a great many people who helped and supported
me during the Project Report.
My deepest thanks to Prof. H N Singh, the Course Coordinator who has given a
Project and also guide me in the Project with great attention and care.
My deepest thanks to Lecturer, KEENIKA the Guide of the project for guiding and
correcting various documents of mine with attention and care. He has taken pain
to go through the project and make necessary correction as and when needed.
I express my thanks to the Principal of, IMS NOIDA, for extending his support.
My deep sense of gratitude to Surabhi Singh Class In charge, for her
support and guidance. Thanks and appreciation to my friends for their support
and help in the project.
I would also thank my Institution and my faculty members without whom this
project would have been a distant reality. I also extend my heartfelt thanks to my
family and well wishers.
Report on KINGFISHER AVIATION
CONTENTS
INTRODUCTION OF AVIATION
HISTORY OF AVIATION
INTRODUCTION OF KINGFISHER AVIATION
HISTORY OF KINGFISHER AIRLINES
VISSION AND MISSION
PRODUCT
CODE OF CONDUCT
MANAGEMENT TEAM
MERGERS
ACCQUISITION
STRATEGIC ALLIANCES
CSR
SWOT ANALYSIS
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INTRODUCTION
Aviation is the design, development, production, operation, and use of aircraft,
especially heavier-than-air aircraft. Aviation is derived from avis, the Latin word for bird.
The airline industry provides transportation services for passengers as well as cargo
through scheduled air routes. The aviation industry derives its revenues from regular
ticket fees and freight charges. Other major components of the aviation sector include:
Airtrafficcontrol
Helicopter and private charter services
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Airport management
Express delivery service
I. Aviation is defined as the design, manufacture, use, or operation of aircraft - in which
the term aircraft refers to any vehicle capable of flight. Aircraft can either be heavier-
than-air or lighter-than-air: lighter-than-air craft including balloons and airships, and
heavier-than-air craft including airplanes, autogiros, gliders, helicopters, and
ornithopters.
II. For centuries man has dreamed to soar with the birds. Famous inventors such as
Leonardo da Vinci, John Stringfellow, and Lawrence Hargrave have conjured up
ideas of how to get some of the strangest machines to fly long before the Wright
brothers' famous first flight at Kitty Hawk
III. An airline provides air transport services for traveling passengers and/or freight.
Airlines lease or own their aircraft with which to supply these services and may
form partnerships or alliances with other airlines for mutual benefit. Generally,
airline companies are recognized with an air operating certificate or license issued
by a governmental aviation body.
IV. Airlines vary from those with a single aircraft carrying mail or cargo, through full-
service international airlines operating hundreds of aircraft. Airline services can be
categorized as being intercontinental, intra-continental, domestic, regional, or
international, and may be operated as scheduled services or charters.
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The aviation industry encapsulates the development, operation and management of aircrafts.
While the common perception about the sector is that it’s only about pilots and airhostesses,
there are numerous other, equally significant job options that the industry cannot function
without; from in-flight trainers and aircraft maintenance engineers to baggage handlers and
reservations agents.
Research indicates the global aviation industry is poised to grow at a healthy 5.6% CAGR over
the next 15 years. While major conventional mature markets such as the US and Europe will
witness a significant fall in market share from 61% to 52%, emerging markets, such as India,
China and the Middle East, offer a great growth potential.
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BY- VIJAY MALIYA CHAIRMEN OF UV GROUP
Kingfisher Airlines is an airline group based in India.
INTRODUCTION
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Kingfisher Airlines is also the sponsor of F1 racing outfit, Force India, which Vijay Mallya also
owns
Kingfisher Airlines is the first airline in India to launch this unique service. III. On-board
experience • In-flight entertainment At Kingfisher Airlines, we take pride in being the first
domestic airline in India to offer personalized In-flight Entertainment. Guests have the option of
Live TV, Fun TV and 10 audio channels on Kingfisher Radio with choices appealing to every
segment s expectations. The video choices range from Sports to fashion to an exclusive channel
for kids. Similarly the audio channels range fromGhazals to hip- hop to rock music. All efforts
are made to ensure that you havea wide selection every time you fly with us. Another unique
feature of our In-flight Entertainment system is the on screen moving map that let you know the
Funliner s location, altitude, speed and other relevant flight details. • Meal options We offer our
Guests complimentary meals on all our flights. At this stage, Guests have the choice of opting for
vegetarian or non vegetarian meals on most sectors. The menus are designed considering the
Guest feedback and are frequentlychanged to meet their changing tastes. To ensure that the
Guests get differentchoices every time they travel with us, we have six different types of menu
which are changed everyday. • World class crew Our Crew is personally selected by the
chairman. They undergo a rigorous training program in the Safety and First aid, Service Delivery
and Personality development before they are cleared to take on the role of hosts
Kingfisher Airlines is one of the only seven airlines awarded 5-star rating by Skytrax along
with Cathay Pacific, Qatar Airways, Asiana Airlines, Malaysia Airlines, Singapore Airlines,
and Hainan Airlines [5] Kingfisher operates more than 375 daily flights to 71 destinations, with
regional and long-haul international services.[1] In May 2009, Kingfisher Airlines carried more
than 1 million passengers, giving it the highest market share among airlines in India.[6] Kingfisher
also owns the skytrax award for India's best airliner of the year 2011.
Kingfisher Airlines is also the sponsor of F1 racing outfit, Force India, which Vijay Mallya also
owns
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Founded
:-
2003
Commen
ced:-
operatio
ns
9 May 2005
Hubs:- Bengaluru
International
Airport (Bangal
ore)
Seconda
ry:-
hubs:-
Chhatrapati
Shivaji
International
Airpor
t(Mumbai)
Indira Gandhi
International
Airport (Delhi)
Netaji Subhash
Chandra Bose
International
Airpor
t(Kolkata)
Focus Chennai
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cities:- International
Airport
Cochin
International
Airport(Kochi)
Tiruchirapalli
International
Airport (Trichy)
Pune
International
Airport
Rajiv Gandhi
International
Airport (Hydera
bad)
Sardar
Vallabhbhai
Patel
International
Airpor
t(Ahmedabad)
Frequen
t:-flyer
program
King Club
Airport:- Kingfisher Lounge
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lounge
Allianc
e:-
Oneworld (2012)
Subsidia
ries:-
Kingfisher Xpress
Fleet
size:-
66 (+130 orders)
Destinat
ions:-
71
Compan
y
Slogan:-
Fly The Good
Times
Parent:-
compan
y
united Breweries
Group
Headqua
rters:-
Kingfisher
House, Mumba
i,Maharashtra[2]
Key
people:-
Vijay
Mallya (CMD)
Sanjay
Aggarwal (CEO)
Website:
-
flykingfisher.com
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Kingfisher Airlines Expands Route Network with the Introduction of Services on Four New
Routes New Delhi, November 23, 2007 - Kingfisher Airlines announced that it has further
expanded its route network with the introduction of three new services and the addition of two
new destinations. The newly introduced services connect New Delhi with Jammu with a daily
direct flight in either direction. The second new service launched by Kingfisher Airlines is a
daily direct flight from New Delhi to Lucknow.
Kingfisher Airlines also announced the introduction of a new daily service from Varanasi to
Khajuraho. With the introduction of this new service, Kingfisher Airlines now offers a new
service connecting New Delhi with Khajuraho with a halt at Varanasi.
This will be the first time that Kingfisher Airlines is operating flights to Lucknow and
Khajuraho.
Commenting on the launch of these new routes, Mr. V. Raja, Global Sales Head-Kingfisher
Airlines Limited, added, “The launch of these three new services is consistent with our goal of
tapping emerging routes and offering convenient and frequent services that cater to the unmet
needs of air travellers in India. Given the huge tourism potential of these cities and the
importance that they occupy on the pilgrimage map of India, we see potential to develop and
grow a market for these routes while simultaneously exploring virgin market segments that
would typically fly on this circuit. We look forward to growing this market”.
“The New Delhi-Jammu sector is a route that has a huge untapped potential and with the
superlative Kingfisher experience, we hope to capture this rapidly growing market”, added Mr.
Raja.
People having greater disposable incomes. In 2003, 10 million Indians traveled by air
domestically. In 2004, 25 million took to the skies within India and 6 million Indians traveled
abroad. The more the merrier, More could take to the skiesin the months and years to come, as
wallet friendly new players like Kingfisherairlines spruced up plans to enter the aviation
segment. According to CAPA (Centre for Asia-Pacific aviation) forecasts, the total air traffic
will rise by 5 million actual passengers each year over the next 10 years. Swift liberalizationof
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the Indian market. With the ending of government protection for Indian Airlines, the adoption of
an open skies agreement with the United States and the loosening of a previously tightly
restrictive quota pact with Britain. India is an exciting aviation market.
•••Welcome Kingfisher Airlines!
Kingfisher Airlines commenced commercial operations on 9 May, with its maiden service from
Bangalore to Mumbai with 174-seat A320 aircraft. Other details include: Fleet: To operate a
minimum of 33 aircraft within the next two years and 55 by 2010; Fares: Bangalore-Mumbai
fares are at least 35% lower than Indian Airlines and Jet Airways; Network: Bangalore-Mumbai
frequency increased from two to three times daily on 20 May. Bangalore-Delhi service
commences on 6 June. According to UB Group Chairman, Vijay Mallya, the airline plans to
acquire 11 aircraft byDecember this year and buy one aircraft every month from
Vijay Mallya, the Indian Liquor and Airline business magnate known for his aggressive and
innovative marketing is taking his airline fleet overseas. KingfisherAirlines largely famous for its
saucy air hostesses and top-notch service, plansto fly on multiple routes in US and UK as early
as next year. Mallya placed oneof the biggest Aircraft orders to Airbus at Paris Air Show. The
order was placed for 50 aircrafts worth $7 billion. Kingfisher’s strategy is to open long-
haulroutes and expand the existing domestic routes. The deal, for 50 Airbus planes,included five
A340s, which are only economical to fly on long-haul trips. Mallyaalready has on order five of
Airbus’s jumbo A380s, which he plans to fly non-stop to the U.S. East Coast, and five additional
A340s, which he plans to fly nonstop to America’s West Coast. One of the reasons for Mallya to
put in such a biginvestment is due to the fact that Indian are flying much more than what they
used to earlier. The domestic market is grown by over 40% while the international passengers
have grown by 25% over last year. This growth rate is expected to carry through at least a
decade. The Airline Industry has suddenly seen number of players entering the Indian market
after being dormant for a very long time. Dueto the competition within airlines, the air fares in
some cases have fallen by more than 50%. Very recently the Jet Sahara deal has been making
news for all wrong reasons.
Kingfisher Airlines, American Express to lunch co branded card
Corporate Card issuer American Express and Kingfisher Airlines today announced ajoint
marketing initiative with the launch of the first airline corporate charge card specifically targeted
at the small to medium sized enterprise (SME) market in the country. A market-first, the
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American Express Kingfisher Airlines Corporate Card will offer India-based companies an 8-per
cent rebate on Kingfisher Airlines air travel which is charged to the card and will also offer card
holdersan exclusive membership upgrade within the Kingfisher Airlines frequent flyer
programme, King Club. "I am delighted to announce a strategic alliance between two powerful
brands, which are widely acclaimed and renowned for their premium quality and service," said
Vijay Mallya, chairman and CEO, Kingfisher Airlines Limited. "The American Express
Kingfisher Airlines Corporate Card is squarely targeted at the SME segment. The SME market is
important to Kingfisher Airlines and wehave worked closely with American Express to develop
a compelling corporate product that provides exclusive benefits to both the company and its
employees. "Thecard offers companies a rebate of 8 per cent on all Kingfisher Airlines
ticketpurchases charged to the card, whilst card members will automatically be enrolled in the
King Club frequent flyer programme and earn Bonus King Miles."
Kingfisher Airlines Open 2007 to feature Global Tennis Legends
Since UB Group s acquisition Scottish distiller Whyte & Mackay, a move which elevated the
group to second place in the global spirits market, chairman Vijay Mallya has most definitely
been looking to overtake something and ensure that he is the first to cross the line with the
chequered flag. Spyker Ferrari is most likely what it is. Mallya has decided to get himself a
Formula One team, happily investing a cool 90 million over a weekend, and in the process,
exponentially expanding marketing opportunities for his flagship brand, Kingfisher. Given his
love for fast cars, racehorses, parties, and his trademark flamboyance, a personalF1 team fits like
a glove with the rest of Mallya s portfolio. Mallya estimatesthat Spyker could pull in 25
million in television revenues next year, and plans to cut costs for the loss making endeavour by
relocating some of the research capabilities to India. An Indian team, ideally with an Indian
driver - is an almost sure shot route to unlocking untapped marketing potential in a country
wherehalf the 1.1 billion population is under the age of 25, a substantial chunk of which keenly
follows F1. TV ratings are set to skyrocket, with potentially every Indian kid tuning into F1,
given their ownership in it as a country. If even half of the cricket mania is replicable here,
Kingfisher is most definitely home and dry. However, as Kingsher presently adorns Toyota, team
as part of a $5-million deal ending next year, it could be some time before Spyker wears the
Kingfisher shade of red. In the interim, other UB group brands could possibly find themselves on
the team.
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ICICI Bank and Kingfisher Airlines Launch Co-branded Credit Card
Kingfisher Airlines, India s first true-value, full-service airline, in its cons
tant attempt to provide enhanced value to its consumers entered into an agreemen
t with ICICI Bank , India’s second largest Bank, to create a cobranded credit ca
rd that will allow its members a host of privileges and would also serve as an i
ncentive to become loyal travelers of Kingfisher Airlines.The target consumer For Kingfisher
Airlines is the frequent-flying corporate traveler who seeks deligh
t out of his flying experience. The Airline s offering is in line with the expectations of the
globally aligned Indian who has high propensity to spend. This co
nsumer is also the right potential target for ICICI Bank s premium credit card o
fferings and hence the fit between the two brands is strategically sound. Adds D
r. Vijay Mallya, Chairman & Managing Director, Kingfisher Airlines Limited- "Kin
gfisher Airlines is the embodiment of the modern, global Indian. We are out to r
e-define the air travel industry in India by offering never-before value to the
Indian air traveller. Ranging from our brand new aircraft to the unique Kingfish
er Class experience, Kingfisher Airlines is committed to provide only the best t
o its guests. It is in line with this that we have chosen to align with ICICI Ba
nk - the leader in the credit card industry in the country, to create a unique c
o-branded credit card. This alliance will also further strengthen the corporate
relationship that The UB Group has enjoyed with ICICI Bank
Kingfisher Airlines and dishtv Form an Unprecedented Alliance in the Indian SkieS Kingfisher
Airlines and dishtv introduce LIVE TV in-flight. Now enjoy watching y
our favorite channels 35,000 feet high in the sky History has been created in the world of
entertainment and Indian aviation, with the coming together of two large corporate houses,
dishtv and Kingfisher Airlines, to bring LIVE TV entertainment for the very first time in the
Indian skies. This association signifies the commitment to enhance in-flight entertainment like
never before and a turning point to make the unprecedented happen, the launch of LIVE TV,
35000 feet high in the sky. As a part of the tie-up, the country’s pioneer DTH player, dishtv, will
demonstrate its services on the country’s fastest growing airline, KingfisherAirlines. Now, only
on flying with Kingfisher Airlines, guests will not miss outon any critical news or business
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event, sporting action, Hollywood and Bollywood blockbusters, chartbusting music, and popular
sitcoms, thanks to dishtv’s revolutionary new technology, making digital content services
available on board! Starting services two and half years ago, dishtv marked its presence by
revolutionizing entertainment, right from the Siachen to Kanyakumari, to the remotest areas,
across the country. Next, dishtv conquered the seas, with mobile dish installations on sailing
vessels, within the footprint of the satellite. With the Kingfisher Airlines alliance, dishtv has
achieved yet another milestone by taking digital entertainment to the skies with the launch of
LIVE TV on board every Kingfisher Airlines aircraft.
Added Dr. Vijay Mallya, Chairman and CEO, Kingfisher Airlines Limited, “In 2005,Kingfisher
Airlines launched and redefined the way the Indian air traveler perceived the joy of flying. We
introduced in-flight entertainment on-board all our flights, so much so that our competitors were
compelled to follow suit. Today we take our commitment to take the best of Good Times, one
step further for our guests. Our association with dish TV has helped us create yet another path-
breaking innovation which will revolutionize the way Indians perceive in-flight entertainment
and we are very proud that dishtv will now enable LIVE TV onboard every Kingfisher Airlines
flight. With the launch of LIVE TV onboard, we are not re-defining in-flight entertainment, but
creating history”. The first aircraft empowered by dishtv complete with the LIVE TV service,
will be ready to take-off by theend of December, 2006.Kingfisher Airlines FUN TV will now
comprise of 16 channels of LIVE TV showing business news, current affairs, popular sitcoms,
live sporting action, Hollywood and Bollywood blockbusters, chartbusting music, travel and
lifestyle, 5 channels of the very popular broadcasted video content and 1 moving map channel. In
addition guests can enjoy 10 channels of chartbusting music from hip-hop to retro to old Hindi
melodies on Kingfisher Radio. Kingfisher Airlines was the first Indian carrier to offer In-flight
Entertainment onboard its flights across the country.
So sit back, relax and enjoy the dishtv enabled Kingfisher LIVE TV Experience
Kingfisher Airlines to buy 26 percent in Air Deccan for US$135 million
United Breweries (Holdings) Ltd., which runs Kingfisher Airlines, is to buy 26 p
ercent of Deccan Aviation Ltd, which operates the low-cost carrier Air Deccan, f
or US$135 million. Deccan will issue about 35 million shares at US$3.8 each to U
nited Breweries (Holdings), an 18 percent premium to Deccan’s closing price on W
ednesday. UB Group has paid an advance of US$36.82 million and the balance will
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be paid in next four months. UB Holdings, with its Kingfisher Airline, had been
the natural ally for Air Deccan, Capt. GR Gopinath, MD, Deccan Aviation said, ad
ding that both airlines would complement each other. He said, “Keeping in mind v
arious options we had, we felt that in the long term vision of our company, the
association with UB Holdings will make enormous financial and operational sense
where each other’s best practices could be shared.” Air Deccan would continue to
remain as an independent entity and pursue the low-cost model. While Capt. Gopi
nath would be the Executive Chairman of Deccan Aviation, Mr Mallya would be the
Vice Chairman. Both would appoint six directors each besides having six independ
ent directors on the board, while the board would appoint the Chief Executive Of
ficer. Air Deccan’s Chief Financial Officer Ramki Sundaram would be the acting C
EO, Capt. Gopinath reportedly said.
Kingfisher becomes first Indian customer for A380, A350, & A330
Kingfisher Airlines has become the first Indian carrier to sign a firm contract
with Airbus for the A350 and A380 – the company’s newest and largest aircraft, r
espectively – as well as for the A330. The order is for five A350800s plus five
A380s for intercontinental services, and five A330-200s for regional routes. Del
iveries of Kingfisher’s Airbus A330s are due to begin in the third quarter of 20
07, those of the double-deck A380s in 2010, and those of the A350s in 2012. Engi
ne selections have yet to be announced. Kingfisher will use its A330s on regiona
l routes, including flights to Europe, while the A350 and A380 are destined for
longer nonstop flights – such as to the USA. “India is one of the world’s fastes
t growing markets, especially among the younger emerging generation, and these n
ew Airbus aircraft, with their unmatched passenger appeal, economy and commonali
ty, will give us the lead in competing for their business, “ says Dr Vijay Mally
a, Chairman of the UB Group, one of India’s largest companies and the parent com
pany of Kingfisher Airlines. “We’ll begin with the Airbus A330, which is a great
aircraft and already in widespread service, and then we”ll create a sensation w
hen we become the first Indian carrier with the 21st Century flagship A380, befo
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re adding the world’s newest airliner, the A350. Imagine flying the good times,
not just in India, but worldwide!” Kingfisher Airlines is already an important A
irbus customer – it has ordered ten A320s and three A319s, and has options on a
further 20 single-aisle aircraft. It has established itself as an air-travel phe
nomenon in the Indian market, introducing new standards in passenger appeal – su
ch as personal videoscreens in every seat. In quickly establishing a formidable
record for quality of service and reliability in the Indian skies, Kingfisher is
rapidly becoming a favourite of discerning passengers. Airbus’ A330 is part of
the modern market-leading A330/A340 family, which
Mallya s Kingfisher Airlines Plans IPO In 2006
Kingfisher Airlines, the six-month-old airline of UB Group Chairman and liquor b
aron Vijay Mallya may well preen its plumage. The embryonic carrier aims to laun
ch its initial public offering in the second half of 2006 and spread its wings i
nternationally by 2010 under rapacious plans to be the top Indian carrier, Mally
a said. Kingfisher- which positions itself between a budget airline and a full-s
ervice carrier-plans to raise around $200 million in its IPO to help finance its
purchase of 65 new aircraft to drive its global expansion. Then it picked up 50
planes for an estimated $2.1 billion at the Dubai air show in November. A pugna
cious Mallya, who ranked 26th on the Forbes India 40 last year, told reporters a
t a regional aviation conference he expected to "break-even in the first year of
operation if we are lucky, if not most certainly next year". The man dubbed the
Indian Richard Branson revealed last week he had offered to buy a 100% stake in
the embattled Air Sahara, and he s confident that it will outbid the competitio
n to buy the entire stake in debt-laden carrier, which has extensive operations
on the subcontinent and has access to international routes. Currently Indian car
riers can only fly internationally after five years of domestic operations. King
fisher, which calls its stewardesses "hostesses", provides a personal valet serv
ice and goes the extra air-mile to treat its passengers like guests, plans to la
unch non-stop flights from New Delhi, Bombay and Bangalore to New York by 2010 w
hen
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it takes delivery of its first A380. It has also got its beady eye on routes to
China, Hong Kong, Singapore and Malaysia as well as the Middle East.
History/milestone
Kingfisher….
Our ambition is to be the world’s leading local home improvement retailer.
Kingfisher is Europe’s leading home improvement retailer and the third largest in the world, with
nearly 900 stores in 8 countries in Europe and Asia. We have market-leading
Scientific & Industrial Research (DSIR), Dept. of Biotechnology (DBT), Council for Scientific
and Industrial Research (CSIR) and the Ministry of Finance, Govt.of India. Aviation: UB Group
entered aviation sector in 2005 with the launch of Kingfisher Airlines Limited. Kingfisher
Airlines has captured an impressive market share and has established a niche identity for itself.
The airlines recently acquired 25% stake in Deccan Airlines.
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Present History
Sales of the United Spirits Ltd. are expected to exceed 60 million cases during
the fiscal year 2005-06 making the Group the third largest manufacturer of Spiri
ts products in the world. In addition, USL is one of only three in the world to
own seven millionaire brands and at least five brands rated by Drinks Internatio
nal, UK, to be amongst the ten fastest growing brands in the world in their resp
ective categories. The UB Group’s Brewing Enity - called United Breweries Limite
d (UBL) has also assumed undisputed market leadership with a national market sha
re in excess of 50%. Through a process of aggressive acquisition and market pene
tration, The UB Group today controls 60% of the total manufacturing capacity for
Beer in India. The flagship brand, Kingfisher is now sold in over 52 countries
worldwide having received many accolades for its quality. The UB group is also i
nto manufacture of Fertilizers. The group company Mangalore Chemicals and Fertil
izers Limited ( MCF ) has factory at Panambur in Dakshina Kannada district of Ka
rnataka. In August 2007, the group made a first-of-its-kind media alliance for t
he promotion of NDTV Good Times, a lifestyle television channel run by NDTV.
Financials
In July 2007, United Breweries Limited reported volume growth of 16.3% compared
to the previous year.
Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based United
Breweries Group. The airline started commercial operations in 9 May 2005 with a fleet of four
new Airbus A320-200s operating a flight from Mumbai to Delhi.[7] It started its international
operations on 3 September 2008 by connecting Bengaluru with London.
On 7 June 2010 Kingfisher became a member elect of the Oneworld airline alliance when it
signed a formal membership agreement. A firm date to join the alliance will be announced once
the implementation process is underway, it possibly may take 18 to 24 months.
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Operational performance
Kingfisher Airlines Statistics
]Year ended Passengers carried% Change Average load factor
(%)
April 2007 – March 12,414,336% - 61%
April 2008 – March
2009
200910,850,359 12.6% 60%
April 2009 – June
2009
2,851,360 - 69%
milestone
Adrian Sutil is pursued by Lewis Hamiltonat the 2010 Malaysian GP. Kingfisher is a sponsor of
Force India
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Kingfisher Airlines frequent flyer programme, King Club has won Top Honours
at the 21st Annual Freddie Awards in the Japan, Pacific, Asia and Australia
region.
King Club has won the Freddie Awards 2008 in the following categories:
Best Bonus Promotion
Best Customer Service
Best Member Communications (First Runner-up)
Best Award Redemption (First Runner-up)
Best Elite Level (Second Runner-up)
Best Website (Second Runner-up)
Program of the Year (Second Runner-up)
Kingfisher Airlines has received three global awards at the Skytrax World
Airline Awards 2010
Named Best Airline In India / Central Asia; Best Cabin Crew – Central
Asia.
Kingfisher RED named Best Low Cost Airline in India / Central Asia.
NDTV Profit Business Leadership Award for Aviation.
India's only 5 Star airline, rated by Skytrax and 6th airline in the world.
Rated India's Second Buzziest Brand 2008 by The Brand Reporter.
Ranked amongst India's Top Service Brands of 2008 by Pitch Magazine.
Voted as India's Favourite Airline.
Rated as Asia Pacific's Top Airline Brand.
Brand Leadership Award.
Economic Times Avaya Award 2006 for Excellence in Customer
Responsiveness.
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India's No. 1 Airline in customer satisfaction by Business World.
Rated amongst India's most respected companies by Business World.
Rated amongst India's 25 Innovative Companies by Planman Media in 2006.
The Best Airline" and "India's Favourite Carrier' in a Survey conducted by
IMB for The Times Of India.
Best New Domestic Airline for Excellent Services and Cuisine by Pacific
Area Travel Writers Association (PATWA).
Service Excellence 2005-2006 for a New Airline by Skytrax.
Ranked Third in the survey on India's Most Successful Brand launch of
2005 under the Brand Derby Survey conducted by Business Standard.
Buzziest Brands of 2005 by agencyfaqs and The Brand Reporter.
Rated amongst the Top Ten Internet Advertisers by Yahoo.
Rated amongst the top ten in the Best Television Commercial
Jingles by NDTV.
Best New Airline of the Year Award for 2005 by Centre for Asia Pacific
Aviation (CAPA) Award in the Asia-Pacific and Middle East region.
Listed in the top 100 most trusted brand in The Brand Trust Report.
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Vision/Mission
We constitute a large, global group based in India. We associate with world leaders in order to
adopt technologies and processes that will enable a leadership position in a large spectrum of
activities.
--We are focused on assuming leadership in all our target markets.
--We seek to be the most preferred employer wherever we operate.
--We recognize that our organization is built around people who are our most valuable asset.
--We will always be the partner of choice for customers, suppliers and other creators of
innovation concepts.
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--We will continually increase the long-term value of our Group for the benefit of our
shareholders.
--We will operate as a decentralized organization and allow each business to develop within our
stated values.
--We will be a major contributor to our National Economy and take full advantage of our strong
resource base.
--We commit ourselves to the ongoing mission of achieving Scientific Excellence.
Vision
“The Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel
experience to all our guests.”
Our Values
Safety
This is our overriding value. In our line of business, there is no compromise.
Service
We are all in the hospitality business; we must always seek to serve our guests and gain their
trust, goodwill and loyalty.
Happiness
We seek to build an organisation with people who choose to be happy, and will endeavour to
influence our guests and co-workers to be happy too.
Teamwork
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We will succeed or fail as a team. Each one of us must respect our colleagues regardless of their
rank, and we must work together to ensure our mutual success.
Accountability
Each one of us will be held accountable for the successful execution of our duties, commitments
and obligations, and we will strive to lead by example.
“The Kingfisher Airlines family will consistently deliver a safe, val
ue-based and enjoyable travel experience to all our guests.” Our Values Saf et y
This is our overriding value. In our line of business, there is no compromise.
Servi ce We are all in the hospitality business; we must always seek to serve ou
r guests and gain their trust, goodwill and loyalty. Happ iness We seek to build
an organisation with people who choose to be happy, and will endeavour to influ
ence our guests and co-workers to be happy too. Team work We will succeed or fai
l as a team. Each one of us must respect our colleagues regardless of their rank
, and we must work together to ensure our mutual success. Accounta bi lit y Each
one of us will be held accountable for the successful execution of our duties,
commitments and obligations, and we will strive to lead by example.
Why Aviation? What gladdened Dr. Vijay Mallya must have been a Cabinet decisionon
Wednesday, October 20, 2004, which hiked the permitted foreign direct investment (FDI) limit
in domestic airlines to 49% from the existing 40%.
This move is expected to help fledgling airlines like Kingfisher and Air Deccan.
Jet and Sahara lobbied till the last, some political parties (leftists) tried t
o muddy the waters, but the skies were opening up and Dr. Mallya had cause for c
heer. The bogey of national security concerns raised by the JetSahara cartel fai
led. More than the 9% hike, the decision also signaled to domestic airlines and
foreign investors that the government was serious on aviation reform. Starting a
low cost airline is not the most difficult part, because to start a low cost se
rvice with nation wide operations,
•Assuming that the airplanes are leased the cost is typically between $20-40mn; d
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epending on the scale of operations (a full scale carrier will need investment of around $70-
80mn). A regional service can be started at a much lower cost - around $1015mn. Low cost
carriers can break even in a year or two or at most three.New airlines typically have a major cost
advantage, especially for labor, overestablished (mostly state-owned carriers like Indian Airlines
or Air China). Airtransport is the obvious solution for mobility, if fares can be kept low (as
compared to train fares).
•• •
•Why India?
•Every Indian should fly. There are approximately one billion people & only about
0.05% of them fly.
India is 3rd fastest growing domestic aviation market in the world. (last year g
rowth was 23% & will maintain 20% growth in next five years) Indian Subcontinentis the third
largest market for new aircraft in Asia, behind China (1790) & Japan (640). More and more
middle class families now prefer air travel to traditional rail travel. [Growing Middle-Class
(income over Rs.90,000 p.a.)
MISSION
To study the growth and expansion of Kingfisher Airlines.
To study the structure and workings of Kingfisher Airlines.
To compare Kingfisher Airlines with other Airlines.
To understand the attitu
de towards the services ofKingfisher Airlines.
To study the achievements of Kingfisher Airlines.
To know the important aspect of Kingfisher Airlines.
QUALITY STATEMENTS
Quality leadership is vital to the long-term success of the UB Group in an increasingly
competitive marketplace.
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Building quality into our workplace, products and service is essential to a successful future for
our customers, employees, supplier’s communities and shareholders.
The UB Group will work to provide products and services that always meet or exceed
expectations
Management will commit resources and create an environment in which each employee can
contribute skills, talents and ideas to a never-ending process of improvement and innovation in
all aspects of our business.
Products
Cabin classes
Domestic
Kingfisher First
The domestic Kingfisher First seats have a 48 inch seat pitch and a 126 degree seat recline. There
are laptop and mobile phone chargers on every seat. Passengers can avail of the latest
international newspapers and magazines. There is also a steam ironing service on board
Kingfisher First cabins. Every seat is equipped with a personalised IFE system
with AVOD which offers a wide range ofHollywood and Bollywood movies, English and Hindi
TV programmes, 16 live TV channels and 10 channels of Kingfisher Radio. Passengers also
get BOSE noise cancellation headphones.
Domestic Kingfisher First is only available on selected Airbus A320 family aircraft.
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Kingfisher Class
The domestic Kingfisher Class has 32-34 inch seat pitch.
Every seat is equipped with personal IFE systems with AVOD on-board the Airbus A320 family
aircraft. As in Kingfisher First, passengers can access the movies, English and Hindi TV
programmes, a few live TV channels powered by DishTV and Kingfisher Radio. The screen is
controlled by a controller-console on the seat armrest. Earcup headphones are provided free of
cost to all passengers. The default channel shows, alternating every few seconds, The
aeroplane's ground speed, outside temperature, altitude, distance and time to destination; the
position of the aircraft on a graphical map and one or more advertisements.
Passengers are served meals on most flights. Before take-off, passengers are served
bottled Lemonade
Kingfisher Red
Main article: Kingfisher Red
After Kingfisher Airlines acquired Air Deccan, its name was changed to Simplifly Deccan and
subsequently to Kingfisher Red. Kingfisher Red is Kingfisher Airline's low-cost class on
domestic routes. A special edition of Cine Blitz magazine is the only reading material provided.
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Kingfisher Airlines is the first airline in India to extend its King Club frequent flyer program to
its low-cost carrier as well. Passengers can earn King Miles even when they fly Kingfisher Red,
which they can redeem for free tickets to travel on Kingfisher Airlines or partner airlines.
International
Kingfisher First
The international Kingfisher First has full flat-bed seats with a 180 degree recline, with a seat
pitch of 78 inches, and a seat width of 20-24.54 inches.[23]Passengers are given Merino wool
blankets, a Salvatore Ferragamo toiletry kit, a pyjama to change into, five-course meals and
alcoholic beverages. Also available are in-seat massagers, chargers and USB connectors.
Every Kingfisher First seat has a 17 inch widescreen personal
television with AVOD touchscreen controls and offers 357 hours of programming content spread
over 36 channels, including Hollywoodand Bollywood movies along with 16 channels of live
TV, so passengers can watch their favorite TV programmes live. There is also a collection of
interactive games, a jukebox with customisable playlists and Kingfisher Radio. Passengers are
given BOSE noise cancellation headphones.
The service on board the Kingfisher First cabins includes a social area comprising a full-fledged
bar staffed with a bartender, a break-out seating area just nearby fitted with two couches and bar
stools, a full-fledged chef on board the aircraft and any-time dining. A turn-down service
includes the conversion of the seat into a fully flat bed and an air-hostess making the bed when
the passenger is ready to sleep.
Both Kingfisher First and Kingfisher classes feature mood lighting on the Airbus A330-200 with
light schemes corresponding to the time of day and flight position.
Kingfisher Class
The international Kingfisher Class seats offer a seat pitch of 34 inches, a seat width of 18 inches
and a seat recline of 25 degrees (6 inches). Passengers get full length modacrylic blankets, full
size pillows and meals.
Each Kingfisher Class seat has a 10.6 inch widescreen personal television
with AVOD touchscreen controls. The IFE is similar to that of the international Kingfisher First
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class. It can also be controlled by a detachable remote-control console fitted in the armrest. This
device can be used to control the IFE, reading-lights, play games and even has a credit-card
swipe for shopping on Kingfisher's 'Air Boutique'. It also has a facility for sending text-
messages, though the service isn't provided by Kingfisher.
In-flight entertainment
Kingfisher's IFE system is the Thales TopSeries i3000/i4000 on-board the Airbus A320 family
aircraft, and Thales TopSeries i5000 on-board the Airbus A330 family aircraft provided by
the France-basedThales Group.[24]
Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems on every seat
even on domestic flights. All passengers were given a "welcome kit" consisting of goodies such
as a pen, facial tissue and headphones to use with the IFE system. Now, passengers of kingfisher
class are not given "welcome kits" but as mentioned earlier, a complimentary bottle of lemonade
and earphones for use with the IFE are still given. Initially, passengers were able to watch only
recorded TV programming on the IFE system, but later an alliance was formed with Dish TV to
provide live TV in-flight.[25] And in a marked departure from tradition, Kingfisher Airlines
decided to have an on-screen safety demonstration using the IFE system, however the
conventional safety briefing by the flight attendants still exists on many flights.
King Club
The Frequent-flyer program of Kingfisher Airlines is called the King Club in which members
earn King Miles every time they fly with Kingfisher or its partner airlines, hotels, car rental,
finance and lifestyle businesses. There are four levels in the scheme: Red, Silver,Gold and
Platinum levels. Members can redeem points for over a number of schemes. Platinum, Gold and
Silver members enjoy access to the Kingfisher Lounge, priority check-in, excess baggage
allowance, bonus miles, and 3 Kingfisher First upgrade vouchers for Gold membership. Platinum
members get 5 upgrade vouchers.
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Kingfisher Lounge
Kingfisher Lounges are offered to Kingfisher First passengers, along with King Club
Silver and King Club Gold members. Lounges are located in:
Bengaluru International Airport
Chennai International Airport
Chhatrapati Shivaji International Airport (Mumbai)
Cochin International Airport (Kochi)
Indira Gandhi International Airport (Delhi)
London Heathrow Airport
Netaji Subhash Chandra Bose International Airport (Kolkata)
Rajiv Gandhi International Airport (Hyderabad)
Code of conduct
KINGFISHER AIRLINES’ (formerly DECCAN AVIATION LIMITED) ("We", "Our",
or the "Company") commitment to ethical and lawful business conduct is not only critical to
the Company's success, but also a fundamental shared value of its Board of Directors (the
"Board"), senior management personnel and employees. Our standards for business conduct
provide that, we will uphold ethical and legal standards vigorously, as we pursue our financial
objectives and the Company, the Board and senior management personnel will not compromise
honesty and integrity.
Consistent with these principles, the Board has adopted this Code of Business conduct and Ethics
(the “Code”) as a guide to the high ethical and legal standards expected of its Board and its
senior management personnel.
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The members of the Board and Senior Management Personnel of the Company acknowledge and
accept:
i. the responsibility to carry out their duties in an honest and businesslike manner and within the
scope of their authority, as set forth in the general laws of the land where they operate and in the
Memorandum of Association and Articles of Association of the Company, Corporate
Governance Guidelines; and
ii. that they are entrusted with and responsible for the oversight of the assets and business affairs
of the Company in an honest, fair, diligent and ethical manner, and with the duty to make and
enact informed decisions and policies in the best interests of the Company and its stakeholders.
Accordingly, the Board has adopted this Code and the Directors and Senior Management
Personnel are expected to adhere to the standards of loyalty, good faith, and the avoidance of
conflict of interest that
In performing their daily duties, the Directors/senior management personnel will:
a. Act ethically, diligently, openly, honestly, in good faith and with integrity;
b. Act in the best interests of, and fulfill their fiduciary obligations to the Company and its
stakeholders;
c. Act in good faith, responsibly, and with due care, competence and diligence, without
allowing their independent judgment to be subordinated;
d. Dedicate their best efforts to advancing the Company’s interests and act in a manner that
will enhance and maintain the reputation of the Company;
e. Abide by all applicable laws and regulations, confidentiality obligations and specially
with the Company’s Insider Trading Rules;
f. Become and remain familiar with the Company’s business and the economic and
competitive environment in which it operates and understand its principal business plans,
strategies and objectives; operations results and financial condition and relative
marketplace position;
g. Conduct themselves in a professional, courteous and respectful manner;
h. Be aware of and comply with all applicable laws, rules and regulations that govern the
conduct of the business in all jurisdictions where the Company operates;
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i. Commit the time necessary to prepare for, attend (in person or as appropriate) and
actively participate in regular and special meetings of the Board/ senior management or
other meetings on which they serve/attend;
j. Disclose potential conflicts of interest that they may have regarding any matters that may
come before the Board, and abstain from discussion and voting on any matter in which
the Director/Senior Manager has or may have a conflict of interest;
k. Discharge their duties, as members of the Board and of any Board Committees on which
they serve or as senior management personnel in accordance with their good faith
business judgment and in the best interests of the company and its stakeholders;
l. Inform the Chairman of the Board of changes in their employment, other board positions,
relationships with other business, charitable, and governmental entities, and other events,
circumstances or conditions that may interfere with their ability to perform their duties or
impact the Board's assessment of whether they meet the independence requirements;
m. Maintain the confidentiality of all material non-public information about the Company,
its business and affairs;
n. Make available to and share with fellow Directors and senior management personnel
information as may be appropriate to ensure proper conduct and sound operation of the
Company;
o. Not enter into, without the prior approval of the disinterested members of the Board, any
transaction or relationship with the Company in which they will have a financial or
personal interest (either directly or indirectly, such as through a family member or other
person or organization with which they are associated), or any transaction or situation
which otherwise involves a conflict of interest;
p. Not use confidential information acquired in the course of their service as Directors or
senior management personnel for their personal advantage.
q. Provide leadership in advancing the Company's vision, values and guiding principles; and
r. Respect the confidentiality of information relating to the affairs of the Company acquired
in the course of their service as Directors, except when authorized or legally required to
disclose such information.
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s. Safeguard and properly use Company assets and resources, as well as assets of other
organizations that have been entrusted to the Company.
t. Never request gifts, entertainment or any other business courtesies from people doing
business with the Company (including suppliers, customers, competitors, contractors and
consultants).
Management team
Dr. Vijay Mallya is Chairman of The UB Group, one of India’s
largest conglomerates with diverse interests in brewing,
distilling, real estate, engineering, fertilizers, biotechnology,
information technology and aviation.
Dr. Mallya, was elected by shareholders as Chairman of The UB
Group in 1983, at the age of 28.
The UB Group’s Kingfisher Airlines is today the undisputed
market leader in India’s booming aviation market. In the
short span of just under three years since it was launched,
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Kingfisher Airlines has redefined the whole experience of
flying and has raised the bar by unleashing a host of product
and service innovations. It has received numerous awards
since its inception. With the merger of Air Deccan and
Kingfisher Airlines, the airline covers all segments of air
travel from low fares to premium fares and offers the
maximum number of flights offered by any single airline
network in India.
Dr. Vijay Mallya is the Chairman of public companies both
in India as well as in the USA. He has been the Chairman of
Aventis Pharma
India (previously Hoechst) as well as the Chairman of Bayer
Crop Science in India for over 20 years, in addition to being the
Chairman of several other corporations
United Breweries Ltd (UBL), the flagship company of The UB
Group, is the largest brewing company in India with a national
market share of 50 per cent. Kingfisher beer is currently
available in 52 countries outside India and leads the way amongst
Indian beers in the international market.
United Spirits Limited, the flagship of The UB Group comprises a basket of 145 brands
including 19 millionaire brands. United Spirits recently acquired a hundred percent of premium
scotch distillers Whyte & Mackay.
Dr. Vijay Mallya has received several professional awards both in India and overseas. He
was conferred a Doctorate of Philosophy in Business Administration, by the Southern
California University, Irvine. He has also been nominated as a Global Leader for
Tomorrow by the World Economic Forum. He was conferred France’s highest civilian
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honour – “ Officier de la legion d” Honneur” for his exceptional career as businessman
heading a multinational with diversified interests.
Dr. Mallya is the first Indian ever to become the owner of a Formula One Team. The
Netherlands-based Mol Family and Dr. Mallya have formed a consortium that is now the
joint owner of Force India Formula One, which is also India’s first-ever Formula One
Team and represents India’s first, truly global sports foray.
He is a keen sportsman and is an ardent aviator and yachtsman of distinction. He not only
participates in various sporting events but also supports various sporting activities worldwide.
Kingfisher Airlines is led by a dynamic, extremely talented and experienced team
:Boar d o f Dir ec tors
Dr. Vijay Mallya, Chairman & CEO
Mr. Subhash Gupte, Vice–Chairman, The UB Gr
Oup
Mr. Piyush Mankad
Mr. A.K. Ravi Nedungadi
Diwan Arun Nanda
Mr. V.K.
Rekhi
Dr. Naresh Trehan
Mr. Rup Pillai
Op er ating Tea m
Mr. A. Raghunathan, Executive Vice President and Chief Financial Officer
Mr.
Hitesh Patel, Executive Vice President
Mr.Rajesh Verma, Executive Vice President
Captain D D Gandhi, Vice President – Operations
Chandrashekhar Nene, Vice President – IT
Mr. C.S. Tomar, VP- Engineering & Maintenance
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Bharat Raghavan, Assistant Vice President - Legal and Secretarial
Ms. Rubi Arya, Assistant Vice President HR Mr. Ajit Bhagchandani, General Ma
nager - In-Flight-Services
Mr. Ashwani Khanna, General Manager - Airport Services
Mr. Bhupesh Joshi, General Manager – Airports
Capt Jesudasan, Chief Examiner
Captain K. Ravindran, General Manager - Flight Safety
Major Leslie Ojjit Missal, General Manager – Security
Mr. Ratan Ratnakar, General Manager - Revenue Optimization
Mr. Sanjay Bahadur, General Manager - Corporate Affairs
Mr. Shailesh Borkar, General Manager – Finance
Mr. Umesh Rindani, General Manager - Revenue Accounts
Mr. S.K. Ghorai, General Manager - Quality Control
Captain Sanjeev Marwah, GM-Flight Ops (A320)
Capt PA Bhushan, GM-Flight Operations(ATR)
Mr. Gaurav Commitment Rathore, General Manager Quality & Guest
Mr. Vijay Nair, General Manager – Cargo
Mr. V. Seetharaman, General Manager
- Engineering
Kingfisher Airlines Strengthens Management Team
Mumbai, February 11, 2010 - Kingfisher Airlines, India’s only Five Star airline rated by
Skytrax today announced the appointment of Mr. Amit Agarwal as Senior Vice President-
Corporate Development & Planning at Kingfisher Airlines Limited.
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Commenting on the appointment, Dr. Vijay Mallya, Chairman and CEO, Kingfisher Airlines
Limited said, “Amit has a very strong airline background with rich experience spanning 17 years
with some of the leading airlines of the world. This appointment is consistent with our goal to
strengthen the Kingfisher Airlines Leadership Team with experienced industry executives”.
In his most recent assignment as Managing Director for Revenue Management, Pricing &
Network at Delta Airlines, he was responsible for directing and managing projects impacting
various aspects of airline revenue, technology logistics and resource allocation. Prior to Delta he
was with Continental Airlines & American Airlines.
Mergers
Kingfisher Red, known formerly as Simplifly Deccan and prior to that as Air Deccan, is a low-
cost brand run by Kingfisher Airlines. It is headquartered inMumbai, India.
Accquisition
Kingfisher Airlines' parent company United Breweries Group acquired a 26 percent stake in Air
Deccan's parent company Deccan Aviation. The combined fleet of 71 Airbus A320 family
and ATR aircraft will operate 537 flights to 69 Indian cities, "whilst taking advantage of
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unparalleled synergy benefits arising from a common fleet of aircraft," according to Kingfisher.
"For the near future, Kingfisher will continue to serve the corporate and business travel segment,
while Air Deccan will focus on serving the low-fare segment, but with improved financial
prospects for both carriers," Kingfisher added. Speaking to reporters yesterday, UB Group head
Vijay Mallya said there were no plans to launch an IPO "at this stage" and that UB Group would
have no problem funding the acquisition.
Rebranding
In October 2007, after the acquisition by Kingfisher Airlines, Air Deccan was renamed
"Simplifly Deccan" with its new tagline being "The choice is simple". The old logo was replaced
by the Kingfisher logo and the same font of Kingfisher Airlines was also used on Simplifly
Deccan. The old yellow and blue colors of Air Deccan were replaced by Kingfisher Airlines's red
and white, supposedly to give the same premium look and feel to Deccan as well. The check-in
counters at airports as well as the crew uniforms now had the same red and white colors as those
for Kingfisher Airlines. The new look airline also promised excellent on-time performance, a
wider network and "little delights all the way". Check-in staff would
longer be outsourced, but managed by the airline's own employees, thereby "increasing
accountability and improving service delivery," said Mr Mallya. He also announced that the new
airline would slowly phase out the ageing ATR 42 and A320 planes and replace them with
entirely new aircraft.[15] Changes were also made in the flight schedule of Simplifly Deccan
airlines to better align with that of Kingfisher Airlines. According to agencies, the re-branding
was expected to cost around Rs 15 crore (approximately $3.8m).
In August 2008, it was announced the airline will further change its branding to Kingfisher Red
and will begin operating under Kingfisher's IATA code IT
Strategic alliances
Mumbai: a global cruise firm that owns 22 ships, and Kingfisher Airlines Ltd have formed an
alliance that will offer customers bundled vacation packages and additional benefits for airline’s
frequent fliers.
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This is the first time Royal Caribbean has entered into a strategic alliance of this magnitude in
the Asia-Pacific region, where its ships are sailing out of Singapore, Hong Kong, and Dubai.
Kingfisher Airlines flies to all three of these embarkation ports from cities throughout India and
its tour division, Kingfisher Holidays, bundles vacation packages that include both a Royal
Caribbean cruise and airfare for the Kingfisher Airlines passengers.
Kingfisher Airlines is a member-elect of the global grouping of airlines, oneworld, while Royal
Caribbean International is one of the largest cruise lines in the world, offering vacations to more
than 260 ports around the world.
As a part of this alliance, Kingfisher Airlines is launching an online lucky draw for its frequent
fliers.
A media statement said that Kingfisher Airlines’ frequent fliers will earn miles when they book a
qualifying Royal Caribbean International cruise.For example, frequent fliers will earn 1,500
miles when booking a balcony stateroom on a 4- to 5-night cruise or 2,500 miles for a 6- to 8-
night cruise in a Junior Suite. Members can redeem their miles for upgrades and free airline
tickets.
Csr-corporate social responsibilities
The UB Group is known as a large USD 2.2 billion corporate conglomerate with business
interests ranging from spirits, beer, engineering, fertilizers and civil aviation to pharmaceuticals.
Few, however, are aware that UB is a silent crusader in the field of community services in its
own committed way. The Group has over the years emerged as a socially responsible corporate
citizen.
Its keen pursuit of activities in the field of Life Sciences has led to the setting up of a super
specialty hospital - Mallya Hospital at Bangalore. In June 1991, the Mallya Hospital was
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inaugurated in the central business district of Bangalore in a multi-storied complex with
excellent medical equipment and best medical consultants. It was initially a 150-bed hospital,
which has grown into a 450-bed hospital of which approximately 50 beds are for critical care.
The hospital boasts of multi-specialty disciplines and is the first such hospital in India to be
awarded the ISO 9002 certification. Subsidized health care is given to the under privileged class
of society by providing a general ward which is reserved for them.
The 24 hour Casualty and Trauma Care services are geared to handle all kinds of emergencies,
ably supported by state-of-the-art, imported high-tech ambulances. These ambulances are fully
equipped with Paramedical staff and are literally CCU's on wheel.
The Vittal Mallya Scientific Research Foundation was set up in December 1987, in memory of
the Group’s Founder, late Mr. Vittal Mallya. It has been actively involved with a mission called
“Science for Humanity” and is a non-profit organization participating with the Government in a
Public Private Partnership on various projects.
In the field of education, the Group has assisted in the setting up of the Mallya Aditi
International School where the best possible education is imparted. Mallya Aditi International
School is located on a sprawling five-acre campus in the northern outskirts of Bangalore. It
boasts of buildings of award-winning architectural standard, which allows students to interact
with the sky, the earth and plant life as they move from room to room.
The beautification and entire maintenance of Vittal Mallya road has been the responsibility of the
Group for over 15 years. Plans are afoot to further beautify the road.
The Group’s commitment to the society is not restricted only to the city of Bangalore, but
outside of Karnataka as well. It has also provided an extensive drinking water scheme in
Srinivasapura village and has been actively involved in installation of Rain Water Harvesting
structures at their Palakkad brewery thereby providing drinking water to Ganeshpuram village,
Palakkad. A similar project was carried out at the Brewery in Ponda, Goa, which not only
benefited the Brewery but also the village, whose well-water levels rose to help tide over their
water problems during the dry months.
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Besides, there is an ongoing commitment to society by way of sponsorships of various events
which are organized by charitable bodies. The Group has also been responsible for providing bus
shelters in the city and water tankers to villages around Bangalore facing severe water shortages
during summer.
The UB Group has rebuilt and renovated the Cubbon Park Police Station, exactly a century after
it was originally built as a guard room for the statue of Queen Victoria. Great care has been taken
to maintain the colonial style of this quaint architectural heritage building. This is another unique
Public Private Partnership which the Group is proud to be associated with. The Group will
continue its commitment to society for the betterment of the community.
vittal Mallya Scientific Research Foundation (VMSRF)
RESEARCHING WELLNESS OF LIFE
Established (1987), in memory of the Group's illustrious founder Mr. Vittal Mallya, its prime
objective has been laid to gain both newer and novel technologies that will have substantial
application in industry and health care.
Ably supported by The UB Group, it has established collaborative links with some reputed
research and academic institutions within the country and abroad. The Foundation is led by a
modest group of dedicated scientists trained in reputed institutions in India and abroad.
Today, it is recognized by the Departments of Scientific & Industrial Research (DSIR), Dept. of
Biotechnology (DBT), Council for Scientific and Industrial Research (CSIR) and the Ministry of
Finance, Govt. of India, and has an incredible list of credits to its name.
Patents obtained by VMSRF include
Method of preparation of Insulin by cleavage of a fusion protein and fusion proteins containing
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Insulin A and B Chains (US Patent No.: 6337194B1).
A new soluble double metal salt of group IA IIA of (-) Hydroxycitric acid, process of
preparing the same and its use in beverages and other food products (US Patent No.: 6160172).
An energy efficient process for the production of ethyl alcohol (Patent awarded jointly with
IMTECH).
CheckMite composition and a process for preparing the same (US Patent No.: 6060075).
A process for the preparation of water soluble 'C' inclusion complex of Neem seed Kernel
extracts containing Azadirachtin-A and its use in insecticidal formulation (US Patent filed).
1, 4-Dihydropyridines as calcium channel blockers (US Patent filed).
Swot analysis
1. STRENGTHS
Strong brand value and reputation in the minds of the consumer
UB group as the parent company
First Indian airline to have a new fleet of planes
Quality service and innovation
More than 80 destinations
Less than 100 people (employees) per aircraft
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Focus on LCC segment as well with Kingfisher Red
Financial backing of UB group
Strong and competent management
2. WEAKNESSES
Still in RED (still to Break Even)
(An outstanding of 950crs only to oil marketing cos till may end )
High ticket pricing (KF First & Class)
Tough competition from Indian as well as international players
High maintenance cost at ground and airline
3. OPPORTUNITIES
If able to survive for a couple of years, then can have a big market share
Untapped International Markets
Untapped cargo market
Expanding tourism business
- Poor service of Indian Airlines / Air India
- Problems with Jet airways (strikes etc)
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- Growth in air travel, with businesses and markets doing better.
- More leisure travelers (Eg spicejet has recently added a new flight from Mumbai to Goa)
4. THREATS
- Rising oil prices play havoc with prices and therefore with load factor
- Other low cost airlines providing better services with their newer airplanes (Kingfisher
Red has old aircrafts)
- Government initiatives in railways with fast running trains like Duronto.
- Better roads mean business travelers may prefer taking the road than the train for short
distances, since it comes out cheaper and there are no delays at airports etc.
- Threat of terrorism leads to fewer international travelers
Falling demand
Over capacity in the skies
ATF prices
Economic slowdown
Infrastructure issues
RECOMMENDATIONS
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The new trends of globalization of the economy, liberalisation and technological developments
have opened up a new landscape in the aviation sector. The following recommendations have
been put forth after thorough study of the civil aviation in general and Air India in particular.
Market oriented approach: The Indian civil aviation has to follow the foot prints of international
aviation environment which adopted the market oriented approach after reporting a cumulative
industry loss on international scheduled services of US $ 15.6 billion during 1990 – 1993.
Liberalisation and privatization came to their rescue. Deregulation, new entrants, low fares,
takeovers and mergers became the solution. Similar is the scenario faced by indian airline
companies. Hence is the need for more customer focused initiatives.
Alliance and Mergers: Airline companies are predominantly capital intensive segments. For
instance, a new 747-400 that is mainly used for high volume and long distance travel can cost
about 200 million dollars and a new 737-800 used for regional flights costs about 600 million
dollars. Hence, though initially many players may be seen in this industry, later they enter into
joint ventures and mergers. For instance, merger of Air India and Indian and that of Jet Airways
and Air Sahara. Such mergers are not an end by itself. What might be required in the long run is
two or more airlines forming alliances both in the international and domestic front
Primary to Secondary airport. Because the primary airports can no longer be able to provide
such services, there is an urgent need to shift airport model from primary to secondary. No-frills
carriers will be able to better compete with major IIMK IIML Conference on Global
Competition & Competitiveness of Indian Corporate 320 carriers in competitive markets if they
operate at secondary airports. The government should support and offer temporary subsidies to
secondary airports for this purpose.
Outsource strengths: Airlines which have major strength in providing support services like
maintenance, engineering and ground support services could hive these activities as separate
companies. In line with the global trend, this would enable the airlines companies to benefit
from outsourcing these services and thereby reduce its overheads. For instance, As Air India’s
inherent strengths lies in support services, such services can provided to all other airlines at
large.
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Conducive climate for Strategic Investment: India is currently in the unusual situation of having
potentially billions of dollars of investment preparing to enter the sector – but lacks a clear policy
framework. The domestic airline industry is expected to raise in excess of USD1billion in private
equity and debt in 2007/08, with IPOs likely by Kingfisher and Air India/Indian in 2008/09.
Hence the Ministry of Civil Aviation had to immediately respond to clearing up policies and
procedures in this regard.
Another key policy issues is the level of investment by foreign airlines in Indian carriers,
currently prohibited. Opening this up could bring in much-needed strategic investment and
expertise. Similarly, increasing the overall foreign investment cap from 49% to 74% could ease
the availability of capital generally.
BIBLIOGRAPHY
http://www.foolonahill.com/mbaaviation.html
http://www.economywatch.com/world-industries/airline-industry-aviation-industry.html
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http://en.wikipedia.org/wiki/Airline
http://en.wikipedia.org/wiki/Airline
http://en.wikipedia.org/wiki/JetLite
http://goibibo.ibibo.com/airline/jetlite/
http://www.mapsofindia.com/air-sahara.html
http://www.cleartrip.com/flight-booking/jetlite-airlines.html
http://www.jetliteonlinebooking.net.in/
http://trak.in/tags/business/2010/11/30/jet-airways-jet-konnect-jet-lite-branding/
http://www.slideshare.net/suresh.singh/growth-strategies-presentation-805753
http://www.jetairways.com/EN/IN/PressReleases/
Jet_Airways_is_the_first_airline_in_India_to_introduce_an_in-
flight_safety_manual_in_braille.aspx
http://dspace.iimk.ac.in/bitstream/2259/490/1/309-322.pdf
http://mamikikeyu.wordpress.com/2011/04/17/strategic-alliances-airlines/
http://www.iisjaipur.org/iiim-current-07/OORJA%20May%20Aug%2007/04factfile.pdf
http://en.wikipedia.org/wiki/Jet_Airways