Mis of Kingfisher Airlines

7/27/2019 Mis of Kingfisher Airlines

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MANAGEMENT INFORMATION SYSTEMKINGFISHER AIRLINES

Submitted By:

VIJAY MAURYA

MBA II SEM, SEC A ROLL NO-52DEPARTMENT OF BUSINESS ADMINISTRATION,

UNIVERSITY OF LUCKNOW


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Background to organization:

Kingfisher airline is a private airline owned by Vijay Mallya of United Beverage

(UB) Group. It is based in the southern city of India, Bangalore. The UB Group is

Indias largest manufacturer of beer and spirits. Kingfisher Airlines started its

operations on the 9th of May, 2005. It began with a fleet of 4 airbus A320

aircrafts. Its first flight was from Mumbai to Delhi.

Since its launch in May 2005, Kingfisher Airlines has introduced a range of market-

firsts that enabled them to capture the attention of air travelers. By considering its

customers as guests and not just passengers, kingfisher Airlines has won the

hearts of customers. On the 19th of December 2007, Air Deccan and Kingfisher

Airlines decided to merge. Kingfisher Airlines parent company United

Breweries(UB Group) have acquired 46% of Air Deccans parent Deccan

Aviation, which possesses 52% of the total stakes.Kingfisher operates more than 400 flights a day and has a network of 78 regional

and international destinations. International operations started on the 3rd of

September 2008, with its maiden flight from Bangalore to London. In May 2009,

Kingfisher Airlines has the highest market share among airlines in India by carrying

more than a million passengers.

A United Kingdom based independent research and quality evaluation body for

airlines Skytrax, has conferred the prestigious 5-star airline status on Kingfisher

Airlines. A 5 star status recognizes an airline with the highest standard of product

across several stringent quality assessment categories and one that consistently

delivers high standards of service in on-board and airport environments. This

honour makes Kingfisher Airlines one of only 6 airlines in the world to have a 5 star

rating. Kingfisher Airlines is the only 5 star certified airline in India and the only

domestic airline in the world to receive a 5 star rating.


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Mission Statement:

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.

valuable assets.

creators of innovative concepts.

-term value of our Group for the benefit of

our shareholders.

d organization and allow each business to

develop within our stated values.

advantage of our resource base.


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SWOT analysis of Kingfisher AirlinesStrengths:

-flight service.

Weakness:

-even.

Opportunities:

et size expansion.

Threat:


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Description of nature of Information Systems:

Information system: An information system can be defined technically as a set of

interrelated components that collect (or retrieve) process, store, and distribute

information to support decision making and control in an organization. In

addition to supporting decision making, coordination, and control, informationsystems may also help managers and workers analyze problems, visualize

complex subjects, and create new products. (Kenneth C Laudon, Jane

P.Laudon; 1997)

Kingfisher Airlines, one of Indias fastest-growing airlines, has chosen Sabre Airline

Solutions to provide a full suite of more than 20 enterprise applications to

enhance its guest processing functions, as the airline continues its rapid

expansion of its operations. With the implementation of Sabre Airline Solutions

passenger reservations and departure control systems, the SabreSonic Passenger

Solutions, Kingfisher Airlines will be able to manage its reservations, pricing,ticketing and reporting more efficiently.

Kingfisher Airlines is also among the first in India to offer the latest range of check-

in options for its guests, including web check-in facilities and Roving Agents

that use mobile devices to check in guests to help alleviate check-in queues at

airports.

Kingfisher Airlines entire suite of Sabre Airline Solutions products is fully hosted

through Sabre eMergo web access, an application service provider environment

that provides the technology without the cost of acquiring and maintaining

costly hardware and infrastructure systems.

Kingfisher Airlines is also leveraging other technology from Sabre Airline Solutions

to help analyze the market and determine the best approaches to maximize

revenue, including Sabre AirMax Revenue Manager, the Quasar passenger

revenue accounting system and the SabreLoyalty Suite. To optimize operations,

Kingfisher Airlines is also leveraging the Sabre AirOps Flight Operations Suite and

the Sabre Rocade Crew Management System.

Through a separate deal, Kingfisher Airlines has also become the first new-entrant

carrier in India to distribute its inventory through the Sabre global distributionsystem (GDS). It signed a Direct Connect Availability (DCA) agreement, the

highest level of participation in the Sabre system. With this, Kingfisher Airlines can

now market and sell its products through all Sabre connected travel agents

globally.


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Functional use of information systems:

In order to function, airlines must deal with many different pieces of information

about customers, employees, payments, products & services etc. They must

organize work activities that use this information to operate efficiently and

enhance the overall performance of the company. Information systems make itpossible for firms to manage all their information, make better decisions, and

improve the execution of their business processes.

To a large extent, the performance of a business firm depends on how well its

business processes are designed and co-ordinated. Kingfisher Airlines entered

into a strategic partnership with Sabre Airline Solutions to provide the depth and

width of application solutions to ensure airline management best practices.

Kingfisher Airlines information system functionally concerns with:

Marketing:Airlines need to plan and analyze data, to determine how to best offer their

schedule to customers and make the most revenue. With the implementation of

Sabre Airline Solutions, Kingfisher Airlines has got systems in place to deal with

Fares Management, Revenue Management, Planning and Scheduling etc.

Industry experts state that effective use of an automated pricing system can add

a 1% revenue improvement. The return on investment model validates this and

generally shows approximately 1.5% revenue improvement for an airline using this

system in a competitive fare environment.

Selling:

Airlines increase sales by enhancing their ability to reach customers through their

preferred distribution channels. Sabre Airline Solutions provided kingfisher Airlines

with a real-time interface solutions preferred by travelling companies worldwide

for reservations, ticketing, check-in and a multitude of other business functions.

These applications are designed to give customers the ability to create highly

customized front ends to real time host systems, databases, peripheral devices

and other information sources using a simple yet robust application developmenttool. These solutions help a business realize a return on investment in as few a

three months.

Serving:

Turning customers into advocates is a key component in building a successful

customer-centric business strategy. The success of airlines is heavily dependent

on delivering a positive customer experience. Setting reasonable expectations,

delivering on these expectations, and then collecting real-time feedback in

order to learn from customers will be the key mechanism for improving acustomer experience. The Sabre Airline Solutions offer systems to improve the

travel experience and ensure customer satisfaction, making it easy for travellers

throughout their journey.


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Operating:

When a customer purchases ticket on an airline, a promise is made to that

customer. It is a promise to get the customer from point A to point B as close to

on-time as possible. It is the responsibility of the airlines operations to deliver on

the promise made. Sabre Airline Solutions helps deliver the promise at the lowest

operating cost. Using the operations


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solution allows optimizing the span of operations with flexibility and choice by

deploying solutions that:

d customer experience.

Human Resource:

Airlines have a human resource function that handles tasks concerning the

personnel resource of the organisation. The human resource function is

responsible for attracting, developing, and maintaining the firms workforce.

Human resources information systems support activities such as identifying

potential employees, maintaining complete record on existing employees, and

creating programs to develop employees talent and skills.

Finance and accounting:

The finance function is responsible for managing the airlines financial assets, such

as cash, stocks, bonds, etc. The finance function is also in-charge of managing

the capitalization of the firm. To determine whether the firm is getting the best

return on investments, the finance function must obtain a considerable amount

of information from sources external to the firm.

No wonder Kingfisher Airlines has won many major awards like NDTV Profit

Business Leadership Award for Aviation, Service Excellence for a New Airline,

Indias No.1 Airline in Customer Satisfaction etc. Its all because Kingfisher

Airlines has opted to invest in Sabre Airline Solutions, the industry that provides the

best information systems available in the market.


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Constituency use of information systems:

Depending on the functions, levels, specialties, and interest in an organisation,

there are various types of information systems. An organisation can be divided

into strategic (senior), Middle and operational levels. People in the organisation

have unique information needs and thus require various set of IT tools.

Information systems are built to serve these different organizational levels.Senior management makes long-range strategic decisions about products and

services as well as ensure financial performance of the firm.

They need systems that address strategic issues and long term trends, both in the

firm and in the external environment.

Executive support systems (ESS) help senior management make these decisions.

ESS addresses non-routine decisions requiring judgment, evaluation, and insight

because there is no agreed-on procedure for arriving at a solution. ESS present

graphs and data from many sources through an interface that is easy for senior

managers to use.ESS, for example, serves the purpose of predicting labour needs for years to

come. This enables Kingfisher Airlines to evaluate labour needs and hence

access labor needs in years to come.

Middle management carries out the programs and plans of senior management.

They need systems to help with monitoring, controlling, decision-making, and

administrative activities. The principal question addressed by such systems is this:

Are things working well?

Management Information Systems (MIS) provide middle managers with reports

on the organizations current performance. This information is used to monitor

and control the business and predict future performance.

Management Information Systems is an arrangement of data processing and

information systems in an orderly manner to support the management in

achieving the business objectives. It is designed to provide the information which

is exceptional in nature from the point of view of business. By nature, MIS is an

open system interfacing continuously with the internal and the external

environment and is self organizing to meet the ever increasing and changing

needs of the organisation.Decision-support systems (DSS) support non-routine decision making for middle

management. They focus on problems that are unique and rapidly changing, for

which the procedure for arriving at a solution may not be fully predefined in

advance

MIS, for example, records how many training and development program was

held during the year, select new employees and provide training etc. This

enables Kingfisher Airlines to get information about the training programmes and

can identify the knowledge that the new employees has about the work. Thus,

Kingfisher Airlines can get good employees with proper skills, which will help toreduce unnecessary costs.

Operational managers need systems that keep track of the elementary activities

and transactions of the organization, such as sales, receipts, cash deposits,

payroll, credit decisions, and the flow of materials in a factory.


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Transaction Processing Systems (TPS) provide this kind of information. Transaction

processing system is a computerized system that performs and records the daily

routine transactions necessary to conduct business.

TPS, for example, serves the purpose of recording employees attendances,

employee holidays, complains that arises for the food they provide etc. This

enables Kingfisher Airlines to clearly get the record of employees attendances,

holidays, food quality etc. This enforces Kingfisher Airlines to act on providing

extra employees and also change food depending on customer preference.

(Kenneth C Laudon, Jane P.Laudon; 2007)


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Recommendations:

-to the maximum possible level to ensure the privacy of

the customers.

to deal with system

failure is very important.

This results in higher profitability. The profit should be returned back to the

customers in the form of lowering air fares

-even point. The top level executives should

consider getting into break-even point before they can invest anymore oninformation systems.

Conclusion:

In airlines industry, the pressure to provide better customer service has never

been greater. Yet the pressure to reduce operating costs is equally strong. To

meet these challenges, there are plenty of software solutions that help airports,

airlines and ground handling companies distinguish themselves by making travel

more convenient and easy. Kingfisher Airlines has stylishly entered the market

only a few years ago and is now one of the most popular airlines in India. This is

due to the service they provide using the latest and best software solutions

available in the market.

Despite not reaching the break-even point in the business, Kingfisher Airlines has

invested and is investing in the latest information systems with the hope that it will

pay back in the long run, knowing that a good information technology enables

operations to run successfully, while emphasizing customer service. Technology

has the potential to answer the demands of politicians and the travelling public

increasing the level of security, without creating excessive time delays andwithout adding significantly to the cost of capital.


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References:

10th edition.

Systems,

How Businesses Use Information Systems, pp 81.

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fisher_Airlines#1.

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Mis of Kingfisher Airlines