5. VISION “The Kingfisher Airlines family will consistently
deliver a safe, value based and enjoyable travel
experience to all our guests.”
Kingfisher Commenced its operations on May
9,2005.
Sanjay Agarwal is the current CEO of the
company
KingfisherAirlines is also the sponsor of F1 racing
outfit, Force India
19. 31destinations in India 63 domestic destinations in
Focused & Profit making India
routes Many Unprofitable routes like
Low price compared to King Nasik , Hubli etc.
fisher red Grounding of 14 aircrafts
Low Terminal cost like D1 in Strict rules by DGCA on
New Delhi & 1 Bin Mumbai implementation of Time Table
Multiple Hopping, leading to
Focus on Low Cost Airlines
cascading effect. Hence
Innovative and radical ,delay of flight
method so fair line back Operations shifted to New
end operations like Terminals in Delhi & Mumbai.
financing , leasing. Focus diverted from high
Less Turnaround time as service to low cost
compared to Kingfisher red More Turnaround time as
compared to Indigo
20. Standardized Aircraft
Less Inventory of Spares
Less Training Cost
Less Maintenance Cost
Less Operational cost
Effective Terminal Use
Easy Scheduling
Diversified Aircrafts with different
capacities
High Inventory of Spares
High Training Cost
High Maintenance Cost
High Operational Cost
Scheduling difficult
More Human Resources
required
21. WHAT WENT WRONG?
Frankly, it was a hassle-free decision for Vijay Mallya to completely
suspend services on his budget carrier Kingfisher Red , says one of
his close confidantes. Formerly known as Air Deccan, Mallya had
bought 26% stake in this airline from his friend-cum-neighbour
Captain Gopinath in 2007 at Rs 550 crore and later picked up
additional 20% stake at around Rs 155 a share.
The intention of acquiring Deccan was only aimed at giving
Kingfisher Airlines (KFA) an access to international routes quickly.
Government rules gave overseas flight rights only to airlines with
a minimum of five years experience, and KFA was behind in the
queue after Deccan. “Mallya never believed in low fare business
model even when he bought the airline,” says an official with the
airline.
22. The dismal performance of Red all these years made Mallya realise that
the high profile „classy image‟ of his very own KFA is taking a hit due to
him simultaneously running a low cost service.
Meanwhile, discontinuing Kingfisher Red may have come as a surprise
to a few at a time when low fare carriers like Jet Lite, Indigo and Spice
Jet are doing better then their full service peers in terms of load factors--
- but the news has not sprung any surprise to analysts and Kingfisher
Airlines (KFA) officials who had guessed something of this sort was on
its that case, an official at KFA explains, “A year ago, Mallya had met
In way.
many brand consultants in Europe who had advised him to hive off
Kingfisher Red into a separate entity from its parent, KFA-- a move that
could help the airline have an identity of its own just like JetLite--- a low
cost arm of its arch rival Jet Airways which is doing very well with almost
90% load factors on domestic routes.
But this idea did not see any daylight as the close coterie of Mallya had
a better plan which was aimed at consolidating KFA‟s image as a „luxury
carrier‟ and reducing operating losses. Quickly, his battery of experts
went back to the drawing board, just recently, only to convince their
boss that Kingfisher Red has to go off the radar and Mallya agreed.
23. RECOMENDATIONS –
MARKETING STRATEGY
Holiday packages-at unprofitable routes
•
like Nasik, Aurangabad
•Pricing-Should beat par with Spice jet
and Indigo
•Tie-ups with Corporate
•Frequent flyer programmes
•Better deals and offers for flyers in air
24. GENERAL
RECCOMMENDATIONS back
1.Route rationalisation: Cutting
unprofitable sectors and services to
several cities
2.Debt recast: Asking banks to reduce rates
or take a cut on loans or find a 'local
investor„
3.Raising capital: It has plans to raise $200
million through GDR
4.FDI: If the FDI limit is raised and foreign
airlines are allowed to buy a stake, Mallya
could recapitalise Kingfisher
