18995201 Kingfisher Airlines Analysis

8/3/2019 18995201 Kingfisher Airlines Analysis

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Analysis On KingfisherAirlines



ContentsAviation industryCompany profile – Kingfisher Airlines

7p’s Analysis

3c’s Analysis

Customer recovery & relationship managementCompany Profile – Jet Airways

7p’s Analysis

3c’s Analysis

Customer recovery & relationship management

Comparison – Kingfisher Airlines & Jet Airways



Aviation Industry in India Civil aviation in India started with its first commercial

flight on February 18, 1911

Journey from Allahabad to Naini

First domestic air route between Karachi and Delhi was

opened in December 1912 by the Indian State Air Services

in collaboration with the Imperial Airways, UK as anextension of London-Karachi flight of the Imperial

Airways.



Sector structure/Market

size

With a growth rate of 18 per cent per annum, the Indian

aviation industry is one of the fastest growing aviation

industries in the world.

Today, private airlines account for around 75 per cent

share of the domestic aviation market.

India has jumped to 9th position in world's aviation

market from 12th in 2006. The scheduled domestic air

services are now available from 82 airports as against 75 in

2006.



Road Ahead Passenger traffic is projected to grow at a CAGR of over

15 per cent in the next 5 years.

The Vision 2020 statement announced by the Ministry of Civil Aviation, envisages creating infrastructure to handle

280 million passengers by 2020.

Investment opportunities of US$ 110 billion envisaged upto 2020 with US$ 80 billion in new aircraft and US$ 30

billion in development of airport infrastructure.



KINGFISHER

AIRLINES



Company

Profile Kingfisher Airlines Limited is India's largest airline.

Based in Bangalore.

Operates more than 400 flights a day, network of 77

destinations, with regional and long-haul international

services. One of six airlines in the world to have a five-star rating



Main bases:

Bangalore's Bengaluru International Airport

Mumbai's Chhatrapati Shivaji International Airport

Hyderabad's Rajiv Gandhi International Airport

Delhi's Indira Gandhi International Airport.

Through one of its holding companies United Breweries

Group, has a 50 percent stake in low-cost carrier

Kingfisher Red, formerly known as Air Deccan.



May 2009, Kingfisher Airlines carried more than a million

passengers, giving it the highest market share amongairlines in India.

Frequent flyer program called King Club.

A strategic code-sharing agreement with Jet Airways, & an

alliance with the Hilton Hotels Corporation.

Headquarters: UB City, Bangalore



Started operations on 9 May 2005, following the dry lease

of four brand new Airbus A320-200 aircraft.

Its first flight was from Mumbai to Delhi

At the launch of the airline, Dr. Mallya said that he is"committed to achieving our ambition of makingKingfisher Airlines India's largest private airline both incapacity and market share by 2010.“

Brand ambassador : Deepika Padukone



In January 2007, Kingfisher entered into a multi-year

partnership deal with Toyota Motorsport to be an official

partner of the Toyota F1 racing team.

In October 2007, the airline announced Deepika Padukoneas its brand ambassador, replacing Yana Gupta.

In September 2008, Kingfisher announced its plans to raise

US$ 100 million through equity.



On 13 October 2008, Kingfisher chairman Vijay Mallya and his Jet

Airways counterpart Naresh Goyal announced a strategic allianceafter a meeting in Mumbai.

The alliance was formed to implement code-sharing between the two

airlines on both domestic & international flights, joint fuelmanagement to reduce expenses, common ground handling, joint

utilization of crew & sharing of their frequent flier programmes,

namely King Club & Jet Privilege.

On 12 January 2009, Kingfisher Airlines announced its alliance withHilton HHonors, the guest rewards program for the more than 3,000

hotels of the Hilton Hotels Corporation worldwide.

The new alliance allows members of the King Club frequent flyerprogramme to earn both King Miles and Hilton HHonors points when

they stay at Hilton Hotels.





7P’s Analysis Product:

Domestic & International Air Transport Service.

74 domestic destinations & 3 international destinations in 3

countries across Asia & Europe.

On 3 September 2008,Kingfisher Airlines

began its international

operations by

connecting Bangaloreto London.



Services:

Domestic & International:

Kingfisher First

Kingfisher Red

Kingfisher Class

Place:

Services ranges from Ahmadabad to Agartala & to the

major cities such as Delhi, Bangalore, & Chennai etc.

The main strategy that kingfisher follows is to target the

metro cities or the tier 1 cities in India.



Promotion:

Events & advertisements

Multiple touch points & finer promotional services

working for the promotional activities.

Loyalty & frequent flyer programs are also carried out.



Price: Higher income group as well as the upper middle class

background.

The youth & the high lifestyle segments.

Sec A, sec B+ socio economic class mainly in the age

group of 25-45 years: a specific prices offered bykingfisher.

Services offered by kingfisher do emphasis on their

policy to target those segments which are willing to

pay for luxury.People: Hospitality industry, Interpersonal skills, aptitude, &

service knowledge people.



Physical evidence:

Exclusive lounge space, Hi! Blitz, Gourmet cuisine, world

class cabin crew, 5 trendy video- Fun TV, 10 music stations-Kingfisher Radio .

Process:

Booking the ticket-online booking

Tele-booking

Kingfisher outlet.



3C’s Analysis Customer:

Business Class travelers, Corporate, Leisure

travelers, Students, King Club members

Company:

Kingfisher Airlines is an airline group based in

Mumbai. Its registered office is in UB tower inBangalore.



Communication:

Advertisements in television, newspapers, business

magazines, etc.Very famous Kingfisher Yearly Calendar.

Sponsorship to various events.

Loyalty programs like King Club.



Customer Recovery &

Relationship Management Frequent Flier Program

King Club Membership

Mileage Accrual Benefit

Airport Facilities for King Club Members



SWOTAnalysis

STRENGTH

WEAKNESS

OPPORTUNITIES

THREATS

S.W.O.T. Analysis

• First airline with full new fleet of aircraft

• Quality hospitality provided to

customers

• Route rationalization

• Already have training academy

• Service delivery to metros and

other big cities

• Yet not in profit

• High ticket pricing

•

High attrition in top brass

•Under penetrated domesticmarket

• International market

• Untapped air cargo market

• Expanding tourism industry

•Existing Operators

• Infrastructure issue

• Fuel price hike

• Economic slowdown.

- Strengths - Weaknesses

- Opportunities - Threats

Documents

18995201 Kingfisher Airlines Analysis