Analysis of Kingfisher. Essay
Analysis of Kingfisher.
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. The airline currently operates on domestic routes. The destinations covered by Kingfisher Airlines are Bangalore, Mumbai, Delhi, Goa, Chennai, Hyderabad, Ahmedabad, Cochin, Guwahati, Kolkata, Pune, Agartala, Dibrugarh, Mangalore and Jaipur.
In a short span of time Kingfisher Airline has carved a niche for itself. The airline offers several unique services to its customers. These include: personal valet at the airport to assist in baggage handling and boarding, accompanied with refreshments and music at the airport, audio and video on-demand, with extra-wide personalized screens in the aircraft and three-course gourmet cuisine.
Kingfisher is one of only 6 airlines in the world to have a 5 star rating from Sky tax, along with Asian Airlines, Malaysia Airlines, Qatar Airways, Singapore Airlines and Cathay Pacific Airways. In a short span of time Kingfisher Airline has carved a niche for itself. The airline offers several unique services to its customers.
These include personal valet at the airport to assist in baggage handling and boarding, exclusive lounges with private space, accompanied with refreshments and music at the airport, audio and video on-demand, with extra-wide personalized screens in the aircraft, sleeper seats with extendable footrests, and three-course gourmet cuisine.
Kingfisher Airlines is a subsidiary of the UB Group, one of the largest beverage companies in the world. The branding of the airline is linked to that of Kingfisher Beer, India’s largest brewery. The airline, which is headed by the charismatic Dr Vijay Mallya, took to the skies in May 2005, and attracted attention for its high quality product with personal in flight entertainment in every seat; custom interior designs for each aircraft; valet assistance at airports and complimentary hot food and beverages.
The airline initially operated a single class service but subsequently introduced a highly acclaimed First Class, allowing it to compete with Jet Airways for the high yield corporate market. In addition to its A320 family aircraft used on domestic routes, Kingfisher Airlines also operates ATR-72 turboprops on regional sectors.
Under current Indian regulations, which require airlines to operate 5 years domestic service before being granted international rights, Kingfisher will not be permitted to operate overseas until 2010. However, the airline has very clear international ambitions, with an order book for 45 wide body aircraft, including A330s, A340s, A350s and A380s.
In just over two years, Kingfisher Airlines has achieved a market share of 10% and has one of the most aggressive expansion plans of all Indian carriers during 2007. In Jun-07, it dramatically increased its influence in the market with the acquisition of a 26% shareholding in India’s largest LCC, Air Deccan, for approximately USD130 million, and an open offer for a further 20%.
Through schedule coordination and joint operations in ground handling, training, and maintenance, the carriers are projecting annual cost savings of over USD70 million. There will also be greater coordination between the two brands, with Air Deccan to adopt the Kingfisher image in its logo and to switch to a red, rather than a blue color scheme.
The combined Kingfisher/Deccan group has a market share of just over 30% and a product range spanning from the price-sensitive, first-time flyer, to the high yield business traveler, making I tone of the key pillars of the airline industry. The airline which started its operation on 9th May 2005, following the lease of 4 Airbus A320 aircraft. As of July 2007, Kingfisher operates only on domestic routes; however it has announced plans to start flights to the USA with Airbus A380 aircraft.
The airline is owned by the United Beverages Group under the leadership of Vijay Mallya (which also owns the popular Indian beer of the same name). The airline promises to suit the needs of air travelers and to provide reasonable air fares. Kingfisher Airlines’ main “luxury” component is its In-Flight Entertainment System, a first among Indian airlines. The airliners in-flight Mobile Phone and Internet Services will be provided by On Air starting 2008 for long haul flights.
“The Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel experience to all our guests.” 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 organization with people who choose to be happy, and will Endeavour to influence our guests and co-workers to be happy too. Teamwork 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.
“Kingfisher Airlines will have ‘Fly the Good Times’ approach and this will reflect in the experience we will offer to passengers.” SERVICES
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 personalized IFE system with AVOD which offers a wide range of Hollywood and Bollywood movies, English and Hindi TV programmers’, 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. 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 movies, English and Hindi TV programmers’, a few live TV channels powered by Dish TV, and Kingfisher Radio.
The screen is controlled by a controller-console on the seat armrest. Ear cup headphones are provided free of cost to all passengers. The default channel shows, alternating every few seconds, the aero plane’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.
Economy class meal on-board a Kingfisher Airlines domestic flight. Kingfisher Red
After Kingfisher Airlines acquired Air Deccan, its name was changed to Simplify 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.
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
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. 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 touch screen controls and offers 357 hours of programming content spread over 36 channels, including Hollywood and Bollywood movies along with 16 channels of live TV, so passengers can watch their favorite TV programmers’ live. There is also a collection of interactive games, a jukebox with customizable 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 touch screen controls. The IFE is similar to that of the international Kingfisher First 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. CARGO
Kingfisher Xpress is a new Door-to-Door cargo delivery service from Kingfisher Airlines. Kingfisher Xpress same day service will be India’s first and only same day delivery by air service. In-flight entertainment
Kingfisher’s IFE system is the Thales Top Series i3000/i4000 on-board the Airbus A320 family aircraft, and Thales Top Series i5000 on-board the Airbus A330 family aircraft provided by the France-based Thales Group.
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.
The in flight magazines are special editions of magazines owned by Mallya’s media publishing house (VJM Media) viz. Hi! Blitz for domestic flights and Hi! Living for international flights. 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. 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. Kingfisher Lounge
Kingfisher Lounges are offered to Kingfisher First passengers, along with King Club Silver and King Club Gold members. Lounges are located in: Bangalore 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)
However, note that the airline has suspended operation in London, Kochi, Kolkata and Hyderabad.
AWARDS AND ACHIEVEMENTS
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. 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 Favorite Airline.
Rated as Asia Pacific’s Top Airline Brand.
Brand Leadership Award.
Economic Times Avaya Award 2006 for Excellence in Customer Responsiveness. 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 Plan man Media in 2006. The Best Airline” and “India’s Favorite 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. Busiest Brands of 2005 by agency fans 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.
1) Open sky policy
2) FDI limits: 100% for Greenfield airports
74% for the existing airports
100% through special permission
49% for airlines
1) Contribution to the Indian economy.
2) Rising cost of fuel.
3) Investment in the sector of aviation.
4) The growth of the middle income group family affects the aviation sector.
1) Development of cities leads to better services and airports. 2) Employment opportunities.
3) Safety regulations.
4) The status symbol attached to a plane travel.
1) The growth of e-commerce and e-ticketing.
2) Satellite based navigation system.
3) Modernisation and privatisation of the airports.
4) Developing green field airports with private sector for example in Bangalore the airport corporation limited. ENVIRONMENTAL FACTORS
1) The increase in the global warming.
2) The sudden and unexpected behavior of the atmosphere and the dependency on whether. 3) Shortage of the infrastructural capacity
4) Tourism saturation.
1) FDI limits
2) Bilateral treaties
3) Airlines acquisitions and the leasing cost.
Strong brand value and reputation in the minds of customers. Quality of the service.
First airline to have a new fleet of airbuses.
Quality and continuous innovation.
Still a not in profit organization.
High ticket pricing.
Facing a tough competition from competitors.
The expanding tourism industry.
The non penetrated domestic market.
Untapped air cargo market.
Fuel price hike.
Promotions and sponsorship declining.
lower middle, upper middle, lower upper segment
Magazine and Newspaper ads
Exposure at non-corporate event
Participation in International Air shows
Endorsing celebrities like
Katrina Kaif and Yana Gupta
Dynamic pricing model – Multiple fare levels
No hidden restrictions.
Pricing model – 8 different levels
Discounts provided from time to time
Backbone of the brand
Hospitality industry and consider their customer as guests
Interpersonal skills, aptitude, and service knowledge
Online Booking – www.flykingfisher.com
Online Booking – Yatra.com, MakeMyTrip.com, ezeego1.com
Credit Cards & Debit Cards Payment
SMS / Call
Outlets in every major city and at every airport across the country PHYSICAL EVIDENCE
Exclusive lounge space
world class cabin crew
5 trendy video- Fun TV; 10 music stations -Kingfisher Radio
Booking the ticket – online booking or tele-booking or from any of the kingfisher outlet
Jet Airways (I)
Global Vectra Helico
PROFIT & LOSS STATEMENT
Profit and Loss for the Year
Non Recurring Items
Other Non Cash Adjustments
Equity Dividend (%)
Shares in Issue (Lakhs)
EPS – Annualised (Rs)
Profit Before Tax
Net Cash Flows from Operating Activity
Net Cash Used in Investing Activity
Net Cash Used in Financing Activity
Net Inc/Dec in Cash and Cash Equivalent
Cash and Cash Equivalent – Beginning of the Year
Cash and Equivalent – End of the Year
Reserves & Surplus
(-) Acc. Depreciation
Capital Work in Progress.
Cash And Bank
Loans And Advances
Total Current Assets
Total Current Liabilities
NET CURRENT ASSETS
TOTAL ASSETS (A+B+C+D+E)
Can tie up with Corporate and Government Companies by Providing Unique Travel Solutions for Professional and Personal Use. Can implement programs implemented by South West Airlines to penetrate market. Product Development
Seek additional distribution channels such as more tie ups and Collaboration. Collaboration with international carriers, bilateral discussions over seats and code sharing between the carriers. Market Development
Special offerings for first time fliers.
Try to find out new customer group such as old-retired persons. Diversification
Can enter into other Transport Services like Bus Services between Major Cities and Other Services.
Current Indian scenario : Air travel
For majority of people preference-No frills – low cost airlines Kingfisher competing with both the “no frills – low cost” airlines as well as those with frills. Three unique classes of service :–
Kingfisher First (Business class)
Kingfisher Class (Premium economy)
Kingfisher Red (Low fare)
Current segmentation based on social class & income level
Social classes: which use full carrier services and those which use first class services of the railways Income level : Low cost carrier for those who travel by first class railway
Problem with positioning
Brand relates to Lifestyle
Needs to change brand perception
Currently perceived as Lifestyle slogan
Red color of crew :Reflects Royalty
Over dependence on brand image of Mr. Mallaya
Jet airways : Reflects professionalism
Advertisement reflecting Value for Money
Gain operational efficiencies through alliances as with Jet Airways Leverage
New fleet, Unmatched flight service
Innovative ideas-LIVE TV with 16 channels
Air Boutique, in Kingfisher Airlines
A joint promotion, i.e. using MakeMyTrip services and flying Kingfisher Airlines. By partnering with Kingfisher Airlines, further convenience in travel is offered at no extra cost- Added value Fleet size expansion
Reduce the labor cost
Simplify the flight operations
Offer more transparent pricing
Get smart on fuel
The process of acquiring spice jet if complete would make kingfisher the largest player in the aviation industry Different modes of pricing should be taken care of.
After doing a study of this project representing on Kingfisher Airlines, I have come to a conclusion that Kingfisher Airlines is one of the largest and most widespread airlines of the country providing its services not only in India as well as outside India also. It has alliance with many other airlines in this sector.
Kingfisher Airlines offers world class services to the customer at a nominal rate. The national carrier takes immense pride in having successfully played a pivotal role in making various facets of India popular with the people of the world and acting as the country’s cultural ambassador. The airline uses the services of one of the advanced plans been operated in the world. To sum up I would like to say that Kingfisher Airlines is serving its customer in an appreciated way and going to be in the list of best services providers in coming years.