2. 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.
3. 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 up to 2020 with US$ 80 billion in new
aircraft and US$ 30 billion in development of
airport infrastructure.
4. Company
Profile
It is a private airline based in Bangaluru, India, owned by the
United Beverages Group.
Kingfisher Airlines Limited is India's largest airline.
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
5. Kingfisher Airlines, through one of its holding companies
United Breweries Group, has acquired 26% stake in the
budget airline Air Deccan and has option to buy further of
20% stake from the secondary market.
A strategic code-sharing agreement with Jet Airways, &
an alliance with the Hilton Hotels Corporation.
Headquarters: UB City, Bangaluru
6. 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
making Kingfisher Airlines India's largest
private airline both in capacity and market
share by 2010.“
Brand ambassador : Deepika Padukone
7. MILE STONES ON ITS WAY
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
Padukone as its brand ambassador, replacing
Yana Gupta.
In September 2008, Kingfisher announced its
plans to raise US$ 100 million through equity.
8. On 13 October 2008, Kingfisher chairman Vijay Mallya
and his Jet Airways counterpart Naresh Goyal
announced a strategic alliance after a meeting in
Mumbai.
The alliance was formed to implement code-sharing
between the two airlines on both domestic &
international flights, joint fuel management 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 with Hilton 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 flyer programme to earn both King Miles and
Hilton HHonors points when they stay at Hilton Hotels.
9. Product Analysis
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 Bangaluru
to London.
10. Major attributes
Safety
Service
Happiness
Teamwork
Accountability
Kingfishers design there words……
11. Business Strategy
A single class combined with the experience of business class with
economy.
The fares are positioned in between that of a low cost carrier and the
economy class fares of Jet, Sahara etc.
KFA allows multiple fare options and auctioning of tickets on all traffic
route
The marketing department showcased the airlines as ‘The new flying
experience’.
Offer in-flight silent auctions for lifestyle products and in-flight sales of
dry packaged food and beverages.
Special fares for all personnel serving in the Indian Armed Forces, the
Union Government, State governments, and employees of all public
sector units in the country.
12. Marketing Strategy
Kingfisher Airlines is the first carrier in the country to offer live in-
flight entertainment.
Kingfisher Airlines Ltd and Dish TV have joined hands to provide
live inflight entertainment on Kingfisher aircraft.
The service would enable airline’s customers to book air travel
ticket after securing ‘ngpay’ application on their GPRS-enabled
mobile handsets.
On the promotional front, Kingfisher has signed up Ms.Deepika
Padukone as the Brand Ambassador.
Ambush advertising as shown in the strategic placement of own
advertisement hoardings vis-à-vis those of Jet Airways.
14. Customer Recovery &
Relationship Management
Frequent Flier Program
King Club Membership
Mileage Accrual Benefit
Airport Facilities for King Club
Members
15. Swot Analysis
Strengths:
2. Strong brand value and reputation.
3. Quality of service.
4. First airline to have new fleet of airbuses.
Weaknesses:
8. High ticket prices.
9. Still not a profit making organization.
16. Swot contd…..
Opportunities:
2. The expanding tourism Industry.
3. Untapped Air cargo market.
4. Under penetrated Domestic Market.
Threats:
8. Number of competitors.
9. Increasing popularity of low cost airlines eg.
SpiceJet, GoAir.
10. Fuel Price Hike.
17. References:
Indian Brand equity Foundation website,
www.ibef.com.
Assam times, Community Newspaper
Business section of website Maps of
India.com.
En.wikipedia.org/wiki/Airline#Airline_personnel
www.indianchild.com/india_civil_aviation.html
Kingfisherblog.wordpress.com
www.iloveindia.com/economy-of-india
www.bangaloreaviation.com
