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Kingfisher Airlines

……….The king of good times


By Shruti Bhatia, IILM Lodhi Road
AVIATION INDUSTRY
 One of the fastest growing industries in the world.

 Origin of Indian aviation industry can be traced back to the


year 1912.

 India has the private airlines as its key players

 75% of the market share is owned by the private sector.

 Problems that the Indian aviation industry is facing and thus


immediate attention is needed.
AVIATION INDUSTRY
 High rising prices of the ATF.
 The cost of labour is rising in our country
 Shortage of skilled labour
 Infrastructure constraints.

 Main players in the aviation industry....


 Jet airways
 Kingfisher
 Indian
 Spice jet
 Air India
MARKET SHARE
Current Scenario

 Jet Airlines + Air Sahara-> Jet & Jet Lite -> 29.4 %
 Kingfisher + Deccan -> 28.9 %
 Indian Airlines + Air India -> 19.8%
Kingfisher airlines
 Dr Vijay Mallya is the Chairman and
CEO of Kingfisher Airlines
 Kingfisher Airlines Limited launched
scheduled airline services on May 9,
2005 with 4 daily flights between BOM
& BLR and one A-320 aircraft.
 There are tools for mood lighting such
as web chat, inseat plugins for music,
liveTV with 16 channels on each seat
 100 percent E ticket airline
PESTEL ANALYSIS
POLITICAL FACTORS
1) Open sky policy
2) FDI limits: 100% for Greenfield airports
74% for the existing airports
100% through special permission
49% for airlines.

ECONOMICAL FACTORS
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
PESTEL ANALYSIS
SOCIAL FACTORS
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.

TECHNOLOGICAL FACTORS
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.
PESTEL ANALYSIS
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 .

LEGAL FACTORS
1) FDI limits
2) Bilateral treaties
3) Airlines acquisitions and the leasing cost.
The 4Ps ….
PRODUCT
 Currently the kingfisher airline operates the aircrafts like the airbus
A 320, A 319-100 and ATC-72.
 After acquiring the Deccan kingfisher has started a new fleet known
as kingfisher red.

Here we emphasis on the kingfisher airlines.


The 4Ps ….
PLACE
 Covers even the toughest terrains in the country, and the services
ranges from Ahmadabad to Agartala and to the major cities such as
Delhi, Bangalore, and Chennai etc.
 The main strategy that kingfisher follows is to target the metro cities or
the tier 1 cities in India.

PROMOTION
 There are many events and advertisements through which kingfisher
airlines is promoted.
 There are multiple touch points and finer promotional services working
for the promotional activities.
 Loyalty and frequent flyer programs are also carried out.
The 4Ps ….
PRICE
 The price segments that kingfisher targets is the higher income
group as well as the upper middle class background.
 There are a few segments that are majorly for the youth and the high
lifestyle segments.
 Sec A, sec B+ socio economic class mainly in the age group of 25-45
years are the main segments for which there is a specific prices
offered by kingfisher.
 Some of the services offered by kingfisher do emphasis on their
policy to target those segments which are willing to pay for luxury.
S.W.O.T. ANALYSIS
STRENGTHS
• Strong brand value and reputation in the minds of customers.
• Quality of the service.
• Route rationalization.
• First airline to have a new fleet of airbuses.
• Quality and continuous innovation.

WEAKNESSES
• Still a not in profit organization.
• High ticket pricing.
• Facing a tough competition from competitors.
S.W.O.T. ANALYSIS

OPPORTUNITIES
• The expanding tourism industry.
• The non penetrated domestic market.
• International market.
• Untapped air cargo market.

THREATS
• Competitors
• Infrastructure issues.
• Fuel price hike.
• Tourism saturation
• Economic slowdown.
• Promotions and sponsorship declining.
SUGGESTIONS

 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.