2 kingfisher airlines business startegy

8/8/2019 2 Kingfisher Airlines Business Startegy

1/23

CASE STUDY

KINGFISHER AIRLINES - BUSINESS STRATEGY AND MARKET

ANALYSIS

FOR INDIAN BUSINESS


2/23

KINGFISHER AIRLINES - BUSINESS STRATEGY AND MARKET

ANALYSIS FOR INDIAN BUSINESS

Aviation Sector in India an Overview

History of Civil Aviation in India.

1. The history of civil aviation in India began in December 1912. This waswith the opening of the first domestic air route between Karachi and Delhi by theIndian state Air services in collaboration with the Imperial Airways, UK, though itwas a mere extension of London-Karachi flight of the latter airline. Three yearslater, the first Indian airline, Tata Sons Ltd., started a regular airmail service

between Karachi and Madras without any patronage from the government. At thetime of independence, the number of air transport companies, which were

operating within and beyond the frontiers of the company, carrying both air cargoand passengers, was nine. It was reduced to eight, with Orient Airways shifting toPakistan. These airlines were: Tata Airlines, Indian National Airways, Air Serviceof India, Deccan Airways, Ambica Airways, Bharat Airways and Mistry Airways.

2. In early 1948, a joint sector company, Air India International Ltd., wasestablished by the Government of India and Air India (earlier Tata Airline) with acapital of Rs 2 crore and a fleet of three Lockheed constellation aircraft. Its firstflight took off on June 8, 1948 on the Mumbai (Bombay)-London air route. At thetime of its nationalisation in 1953, it was operating four weekly services betweenMumbai-London and two weekly services between Mumbai and Nairobi. The jointventure was headed by JRD Tata, a visionary who had founded the first Indianairline in 1932 and had himself piloted its inaugural flight.

3. A chronological diary of major milestones is as given below:

(a) 1953: Nationalisation of Aircraft Industry. The assets of 8 existingcompanies were transferred to two entities in the aviation sector controlled

by the Government into two companies viz. Indian Airlines, primarily

serving domestic sectors, and Air India, primarily serving the internationalsectors. This had the following implications:

Aviation became a preferred mode of transport for elite classRestricted Growth of Aviation IndustryHigh Cost structureUnderdevelopment of infrastructure


3/23

(b) 1986: Private Sector Players permitted as Air taxi operators. Jet, AirSahara, etc. started service.(c) 1990: The Open-sky policy came in April 1990. The policy allowedair taxi- operators to operate flights from any airport, both on a charter and anon charter basis and to decide their own flight schedules, cargo and

passenger fares. The operators were, however, required to use aircraft with aminimum of 15 seats and conform to the prescribed rules.(c) 1994: Private Carriers permitted to operate scheduled services. Sixoperators granted license, however only Jet and Air Sahara able to service.(d) 2003: Entry of low cost carriers. Air Deccan, Spice Jet, Go Air,Indigo. This had the following implications:

Aviation becomes more affordable with check fares and discountschemes.Various Operators with different business model in the industry.

Huge growth in Aviation sector.

Regulatory Environment of Aviation Sector

The regulatory environment of the Indian Aviation Industry comprises thefollowing:

(a) Federation of Indian Airlines. Federation of Indian Airlines is abody formed by the scheduled carriers in India. FIA, as the voice of India'sairline industry, works to identify and take up issues on behalf of theindustry, with various regulatory authorities, government departments andother key stake-holders. The functioning of the FIA is guided by anExecutive Council, comprising chiefs of each of the member airlines.

(b) Ministry of Civil Aviation. The Ministry of Civil Aviation inIndia is located at New Delhi. The ministry formulates national policies &

programs for development & regulation of civil aviation & also preparesschemes for the growth & expansion of Civil Aviation in India.The ministryalso monitors airport facilities, air traffic services & the carriage of

passengers & goods by air. Under its purview are the followingAttached/Autonomousorganizations:

Directorate General of Civil Aviation. The Directorate General ofCivil Aviation (DGCA) is a principal regulatory body for the aviationindustry in India. DGCA is headquartered in Delhi.Bureau of Civil Aviation Security.Indira Gandhi Rashtriya Uran Akademi set up at Fursatganj tostandardize and improve the flying training facilities in the country,training pilots on fixed wing and rotary wing aircraft.


4/23

Air India Ltd. & Indian Airlines Ltd, now merged under a holdingcompany, viz. National Aviation Corporation of India Ltd (NACIL).Pawan Hans Helicopters Ltd.Airport Authority of India.

(c) Civil Aviation Policy. The mission of Civil Aviation Policy is tomaintain a competitive civil aviation environment which ensures safety andsecurity in accordance with international standards, promotes efficient, cost-effective and orderly growth of air transport and contributes to social andeconomic development of the country. The strategic objectives are asfollows:

(i) Trade, tourism and overall economic activity and growth isencouraged.

(ii) Safe, efficient, reliable and widespread quality air transport servicesare provided at reasonable prices.

(iii)Effective systems are put in place for timely crisis and disastermanagement, including investigation of incidents/accidents

(d) Open Skies Agreement. India and the United States signed alandmark agreement, permitting any number of airlines to operate anynumber of flights to any point in each other's territory. The agreement willenhance passenger and cargo services between the countries, decreaseairfares and accompany innovations and new partnerships in the aviationindustry.

Sector structure/Market size. The Indian aviation industry is one of the fastestgrowing aviation industries in the world, with a growth rate of 18 per cent perannum. The government's open sky policy has led to many overseas playersentering the market and the industry has been growing both in terms of players andnumber of aircrafts. Today, private airlines account for around 75 per cent share ofthe domestic aviation market. India has jumped to 9th position in 2009 in world'saviation market from 12th in 2006. India has 454 airports and airstrips. Of these,

16 are designed international airports. The scheduled domestic air services are nowavailable from 82 airports.

Potential for Growth. The Indian Civil Aviation market grew at a compoundannual growth rate (CAGR) of 18 per cent, and was worth US$ 5.6 billion in 2008.The Centre for Asia Pacific Aviation (CAPA) forecasted that domestic traffic will


5/23

increase by 25 per cent to 30 per cent till 2010 and international traffic growth by15 per cent, taking the total market to more than 100 million passengers by 2010.By 2020, Indian airports are expected to handle more than 100 million passengersincluding 60 million domestic passengers and around 3.4 million tonnes of cargo

per annum.

Airport Infrastructure. Airport infrastructure is being developed at a fast pace tocope up with the growth of air transport operations. A simultaneous operation from

parallel runways having facilities for category 3B level operations has now becomea reality. Ground based communication, navigation and surveillance facilities arenow being replaced by satellite based facilities. India is developing its new satellite

based navigation system Gagan, which will enable precision approaches at allairports in India. The following are the salient developments:

a) Mumbai and Delhi airports have already been privatised and are beingupgraded at an estimated investment of US$ 4 billion over 2006-16.

b) Greenfield airports developed by private consortia at Bangalore andHyderabad are now operational involving a total investment of over 800million USD.c) A second greenfield airport being planned at Navi Mumbai is going to

be developed using public-private partnership (PPP) mode at an estimatedcost of US$ 2.5 billion.d) 35 other city airports are proposed to be upgraded. The city sidedevelopment will be undertaken through PPP mode.e) Over the next five years, AAI has planned a massive investment ofUS$ 3.07 billion43 per cent of which will be for the three metro airportsin Kolkata, Chennai and Trivandrum, and the rest will go into upgradingother non-metro airports and modernising the existing aeronautical facilities.

Aviation Investment Policy. The major policies supporting infrastructure whichare now in place are as given below.

a) 100 per cent FDI under automatic route is permissible for greenfieldairports.

b) For existing airports, Foreign equity up to 100 per cent is permittedthrough automatic approvals and up to 100 per cent through special

permission (from FIPB, Ministry of Finance).c) Private developers allowed to setup captive airstrips and generalairports 150 km away from an existing airport.d) 100 per cent tax exemption for airport projects for a period of 10years.


6/23

e) 49 per cent FDI is permissible in domestic air transport services underthe automatic route, but not by foreign airline companies. Foreigninstitutional investors might have shareholdings more than the limited 49%in the domestic sector. 100 per cent equity ownership by Non-ResidentIndians (NRIs) is permitted.f) 74 per cent FDI is permissible in cargo and non-scheduled airlines.g) The Indian government plans to set up an Airport EconomicRegulatory Authority to provide a level playing field to all players.

Major Investments. During 2007-08, various companies have shown aninterest in the Indian aviation industry. Investment in airport infrastructure wasover US$ 5 billion in 2008 and will go up US$ 9 billion by 2013, of which close toUS$ 6.8 billion is expected to come through public private partnerships (PPP)model, according to a study by research firm Frost & Sullivan. The major firms

investing are as given below:a) Tata Advanced System Limited (TAS), to set up a US$ 113.63 millionhelicopter manufacturing unit at the Aerospace Special Economic Zone(SEZ) in Adhibatla village near the Hyderabad international airport.

b) Global Vectra Helicopters, to invest US$ 130 million during the nexttwo years to increase its fleet strength as well as consolidate its operations.c) GMR Infrastructure to invest US$ 151 million corporate jet market inIndia, and US$ 60 million for a proposed JV with aircraft componentmanufacturers such as Honeywell and Safran to set up a componentsassembly plant in the country.d) Changi Airports International has picked up a 26 per cent stake forUS$ 20 million in Bengal Aerotropolis Pvt Ltd (BAPL).

Road Ahead.a) Passenger traffic is projected to grow at a CAGR of over 15 per centin the next 5 years.

b) The Ministry of Civil Aviation, envisages creating infrastructure tohandle 280 million passengers by 2020.c) Investment opportunities of US$ 110 billion envisaged up to 2020

with US$ 80 billion in new aircraft and US$ 30 billion in development ofairport infrastructure.d) Associated areas such as maintenance, repair and overhaul (MRO)and training offer high investment potential. A report by Ernst & Youngsays the MRO category in the aviation sector can absorb up to US$ 120

billion worth of investments by 2020.


7/23

e) Aerospace major Boeing forecasts that the Indian market will require1,000 commercial jets in the next 20 years, which will represent over 3 percent of Boeing Commercial Airplanes forecasted market worldwide. Thismakes India a US$ 100 billion market in 20 years.

Challenges for the aviation sector

Rising fuel prices.Employee shortageRegional connectivityGaps in infrastructureHigh input costs

O verview of Domestic Airlines Market

India at present has twelve competing airlines in the domestic market as against asingle government owned airline in 1991. According to McKinsey Quarterly(2005) the Indian aircraft market is the worlds second largest commercialaircraft market. On-time performance and service levels have risendramatically and fares have dropped. The players in the current airline marketinclude airlines like Indigo, Go Air, Spicejet and Kingfisher Red (Air Deccan)with low-cost, low-fare and no frills along with premium airlines likeKingfisher and Jet Airways, in addition to the National Carrier Air India.Competition has brought in some price advantages to travellers and has

converted many railway passengers to airline travellers. Because of proliferatednumber of players in the airline industry, airlines may enjoy new businessopportunities along with high competitive threats.

Key Players in Indian Aviation Industry

Air India is the national flag carrier airline of India with a network ofpassenger and cargo services worldwide. It is the merger of the erstwhile state-owned airlines in the country, Air India and Indian Airlines now known as

National Aviation Corporation of India Ltd (NACIL). Air India has 44 world-wide destinations. The airline has been profitable in most years since itsinception, but is facing an acute resource crunch these days. The Airline hasapproached the Govt for a bail-out package.

Other Airlines on Domestic Routes


8/23

a) SpiceJet is a low-cost airline. Their marketing theme "offering low'everyday spicey fares' and great guest services to price conscioustravellers". Their aim is to compete with the Indian Railways passengerstravelling in AC coaches.b) Air Deccan (Kingfisher Red) is an airline based in Bangalore, India.It was India's first low-cost carrier. Air Deccan grew rapidly since it firststarted air operations in 2003, and despite its almost disastrous maideninaugural flight (which caught fire), it continued to grow. The growingIndian economy and the increasing number of middle-class people in Indiahas greatly helped its growth. The Airline changed its brand name toKingfisher Red after association with the Kingfisher Airline.c) GoAir The Peoples Airline, a low cost carrier promoted by TheWadia Group is a domestic budget airline based in Mumbai, Indiaestablished in June 2004. Its a relatively small player as compared to other

low cost airlines.d) Kingfisher Airlines is an airline based in Bangalore, India. Servicesstarted on 9 May 2005, following the lease of 4 Airbus A320 aircraft. Itinitially operates only on domestic routes. The airline promises to suit theneeds of air travellers and to provide reasonable air fares.e) IndiGo Airlines is a new and a private domestic airline based inIndia. IndiGo placed an order for 100 Airbus A320 aircraft during the 2005Paris Air Show. The total order was worth US $6 billion; one of the highest

by any domestic carrier during the show. The low-fare carrier has startedoperations from 04 Aug 06.f) Jet Airways a regular airline which offers normal economy and

business class seats. Jet Airways, along with Air Sahara, is the only airlinewhich survived the dismal period of 1990s when many private airlines inIndia were forced to close down. Jet Airways is an airline based in Indiaserving domestic and international routes. The airline operates over 300flights to 43 destinations across the. Air Sahara has now merged with JetAirways and changed the brand name to Jetlite.

Market Share. The market shares of the Major Airlines (First quarter 2009) are

as given in the pie chart below:(a) Kingfisher: 26.08 %(b) Jet Airways: 16.72 %(c) Jetlite: 7.39 %(d) Air India: 17.66 %(e) Indigo: 13.75 %(f) Spicejet: 11.72 %
http://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/May_9http://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/Airbus_A320http://en.wikipedia.org/wiki/Airbus_A320http://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/Paris_Air_Showhttp://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/May_9http://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/Airbus_A320http://en.wikipedia.org/wiki/Airbus_A320http://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/Paris_Air_Showhttp://en.wikipedia.org/wiki/Airline


9/23


10/23

telephones, to gambling machines, showers, massage services and suit ironingservices in the recently introduced arrival lounges. Business passengers believe itis worth extra money if they can save time and arrive looking fresh for animportant meeting. Business passengers will avoid transit flights even if a longerflight could save them money. But amongst other perks, flexible reservationservices are probably the most important to them. Reservations for business tripsare often made just a couple of days in advance. A no penalty cancellation policy isalso very important to business passengers.

It is observed that the best way to reach business travellers is through printedadvertising. Many airlines design special promotional programs that targetcorporate bookers and meeting planners, who are responsible for business tripsreservations. Frequent flyer programs are an added bonus for business passengers.

Leisure Travellers. They represent a totally different market. The mostimportant consideration for most of them is the price. The lower the airfare, themore people will fly the respective airline. By and large, with the exception ofwealthy travellers, this segment will not pay extra for premium services and willagree to change several planes during their trip if this option costs less than a directflight.

Despite lower margins provided by this segment, leisure travellers are veryimportant to the bottom line of airlines. Part of the reason is that technological

progress in the area of tele-conferencing and increased use of the internet forbusiness communications is expected to reduce the number of business travellers.Thus, airlines are counting on the leisure segment to provide further growth.

The tough issue in airline marketing management is how airlines can benefit fromthe growth opportunities in the leisure segment without losing immediate profitopportunities in the business segment. By improving services and reducing pricesfor economy class passengers, airlines risk that some business passengers willswitch to economy class. Since business class passengers are not many, a companyrelying mostly on business travellers will often end up flying half-empty planes,

losing the potential revenue generated by lower priced economy seats.

On the other hand, few airlines catering solely to economy class passengers can besuccessful because a low fare carrier must fill the entire plane if it is to generaterevenue from its low-margin operations. Thus the airline tries to sell the economyseats at a cheaper price early, while keeping enough seats reserved for businesstravellers, who usually book at the last minute. Keeping just the right amount of


11/23

business seats reserved is important: selling too few economy seats in advance mayresult in a less-than-full plane while selling too many economy seats may result ina full plane, but with insufficient revenue to gain a profit.

A Study of Kingfisher Airlines

Introduction to UB group UB group based in Bangalore, is a conglomerate ofdifferent companies with a major focus on the brewery (beer) and alcoholic

beverages industry. The company markets most of its beer under the Kingfisherbrand. The group is headed by Dr Vijay Mallya. The UB Group was founded by aScotsman, Thomas Leishman in 1857. Kingfisher, the Group's most visible and

profitable brand, made a modest entry in the sixties. During the 1950's and 60's, thecompany expanded greatly by acquiring other breweries. First was the addition ofMcDowell as one of the Group subsidiaries, a move which helped United

Breweries to extend its portfolio to wines and spirits business. Strategically, theGroup moved into agro-based industries and medicines when Mallya acquiredKissan products and formed a long-term relationship with Hoechst AG of Germanyto create the Indian pharmaceutical company now known as Aventis Pharma, theIndian subsidiary of the global pharma major Sanofi-Aventis. The UB GroupsBrewing Entity - called United Breweries Limited (UBL) - has also assumedundisputed market leadership with a national market share in excess of 50%.Through a process of aggressive acquisition and market penetration, The UBGroup today controls 60% of the total manufacturing capacity for Beer in India.

Kingfisher Airlines Kingfisher Airline is a private airline based in Bangalore,India. The airline is owned by the United Beverages Group. Kingfisher Airlinesstarted its operations on 09 May 05 with a fleet of 4 Airbus A320 aircrafts. Themajor destinations covered by Kingfisher Airlines on domestic routes areBangalore, Mumbai, Delhi, Goa, Chennai, Hyderabad, Ahmedabad, Cochin,Guwahati, Kolkata, Pune, Agartala, Dibrugarh, Mangalore and Jaipur.

It is a major Indian luxury airline operating 218 flights a day and has an extensivenetwork to 37 destinations, with plans for regional and long-haul international

services. It has announced plans to start flights to the USA with Airbus A380aircraft. Its main bases are Bangalore International Airport, Bangalore, ChhatrapatiShivaji International Airport, Mumbai and Indira Gandhi International Airport,Delhi, with a hub at Sardar Vallabhbhai Patel International Airport, Ahmedabad.Kingfisher Airlines, through one of its holding companies United BreweriesGroup, has acquired 26% stake in the budget airline Air Deccan and has option to

buy further of 20% stake from the secondary market.


12/23

Kingfisher is one of only 6 airlines in the world to have a 5 star rating fromSkytrax, along with Asian Airlines, Malaysia Airlines, Qatar Airways, SingaporeAirlines and Cathay Pacific Airways. In a short span of time Kingfisher Airline hascarved a niche for itself. The airline offers several unique services to its customers.These include personal valet at the airport to assist in baggage handling and

boarding, exclusive lounges with private space, accompanied with refreshmentsand music at the airport, audio and video on-demand, with extra-wide personalizedscreens in the aircraft, sleeperette seats with extendable footrests, and three-coursegourmet cuisine.

The following are the major attributes of the Airline:

(a) Vision: The Kingfisher Airlines family will consistently deliver

a safe, value-based and enjoyable travel experience to all our guests.(b) Safety: This is an overriding value. In this line of business, thereis no compromise.(c) Service: In hospitality business customer satisfaction is veryimportant and building trust, goodwill and loyalty of customers is at primefocus.(d) Happiness: Kingfisher seeks to build an organisation with peoplewho choose to be happy, and will endeavour to influence their guests andco-workers to be happy too.(e)

Teamwork: Kingfisher believes that We will succeed or fail as a

team. Each one of us must respect our colleagues regardless of their rank,and we must work together to ensure our mutual success.(f) Accountability: Every employee in Kingfisher will be heldaccountable for the successful execution of their duties, commitments andobligations, and they will strive to lead by an example.

Product: Premium class seats

(a) Sleeperette seats with extendable footrests. 48" seat pitch and a 125recline. Fully-adjustable headrests.

(b)Laptop and mobile phone chargers in each seat.(c) Comfortable pillows and snug blankets.

Price: Initially Kingfisher airlines did not differentiate between businessclass and economy class. But eventually they decreased the prices of business classand called those seats as premium seats. Fares were very average as it had to targetmiddle class as well as premium class people. The introduction of Kingfisher Red


13/23

services have given the airline a Low-Cost option to compete with other No-frills airlines. It is important to note that the Kingfisher Red serves complementarymeals on board, thereby increasing the perception of More Value for Money forthe passengers.

Promotion: Various promotional strategies have been adopted by Kingfisherairlines like the following:

(a) The 'Power Flyer' a consumer incentive offer targeted at thecorporate traveller(b) Passengers are offered in flight entertainment options and contestslike Kingfisher Flying Face of the Month' and attractive discounts of

branded merchandise.(c) Offer in-flight silent auctions for lifestyle products and in-flight sales

of dry packaged food and beverages.(d) The marketing department showcased the airlines as The newflying experience.(e) Kingfisher Airlines has announced special fares for all personnelserving in the Indian Armed Forces, the Union Government, Stategovernments, and employees of all public sector units in the country. Theimmediate families of these personnel are also eligible for theseconcessions.(f) The company has just launched Kingfisher First, which is a printcampaign to promote its first class service. It is a personalized campaign,which has Vijay Mallya, signing off by saying, "I have created a productwhich is better than what I would have created for myself."

SWOT ANALYSIS

A SWOT analysis carried out on the Airline reveals the following:

(a) Strengths:Strong Brand value & Reputation in the minds of customers.

Quality of the service.First airline to have new fleet of airbuses.

(b) Weaknessess:High Ticket prices.Still not a profit-making organization.


14/23

(c) Opportunities:The expanding tourism Industry.Untapped Air cargo market.Under penetrated Domestic Market.

(d) Threats:Competitors.Fuel Price Hike.Economic Slowdown/Recession.Alienation of Government passengers. The Government servantstravelling on Official Duty have to use Air-India only.Tourism Saturation.Declining Promotions and sponsorship.

MARKETING STRATEGIESKingfisher Airlines is the first carrier in the country to offer live in-flightentertainment.Kingfisher Airlines Ltd and Dish TV have joined hands to provide live in-flight entertainment on Kingfisher aircraft.The service would enable airlines customers to book air travel ticket aftersecuring ngpay application on their GPRS-enabled mobile handsets.On the promotional front, Kingfisher has signed up the latest diva ofBollywood Ms.Deepika Padukone as the Brand Ambassador.Ambush advertising as shown in the strategic placement of ownadvertisement hoardings vis--vis those of Jet Airways, as shown in the

picture below.


15/23


16/23

The market leadership of Kingfisher Airlines is evident from the present marketshare as indicated in the chart below:


17/23

7 Ps Analysis of Kingfisher Airlines with respect to customer

satisfaction

Product

Kingfisher Airlines offers unparalleled service to its guests. The success of this

airline in a very short period of time can be attributed to the novel services

introduced by it. Following are some of the differentiating features:

Roving agents: A roving agent is a check in counter on the move. The

guests with hand baggage are not required to stand in the queue at the check

in counters. The roving agents come to the customers and assist them.

Different check in options: The airlines allows it customers to do a web

check in from its website apart from the option of the airport check in.

Special care for unaccompanied minors, senior citizens and those with

reduced mobility: The airline takes the responsibility of escorting the

children safely to their destination. The ground crew assists in check-in and

boarding process. The flight attendants take care of the child to ensure a

comfortable and enjoyable flight. At the destination, the staff escorts the


18/23


19/23

Price

Kingfisher Airlines has been termed as the first full frills true value carrier.

The airline has a very well defined target audience which is the Sec A and Sec B+

of the Indian economy and that falls within the age group of 25 45 years with

high disposable incomes. This section of the population is modern, trendy and

upwardly mobile looking for a great flying experience. They have traveled

extensively and are aware if the international flying trends. This segment really

doesnt mind shelling out the money as long as they get the experience they are

looking for. Gourmet cuisine and in flight entertainment are offered on board.

The whole Kingfisher experience is about luxury, comfort, enjoyment and

relaxation. The passengers are looking for value for money and the airline is able

to live up to their expectations.

Promotion

Kingfisher Airlines has adopted a well rounded approach to reach out to their

customers. Their objective is to create a place in the minds of their customers for

their brand and to ensure that the message gets across effectively. Kingfisher

Airlines has a 360 degree promotion strategy in place. They reach out to their

customers through all media of communication such as television, radio, print,

outdoor, malls and multiplexes, clubs and pubs and their in flight magazine.

They ensure that they communicate with their customers at multiple touch points.

They have tied up with several brands across industries such as Tata Tetley, Pepsi,

Microsoft, Inox, ICICI bank and the Park Hotels.


20/23

Kingfisher Airlines has introduced a co branded credit card. This is in association

with ICICI bank. The card owner earns 100 points on every spend. The points can

be converted into King Miles. The card also comes with a lot of other benefits such

as discounts and privileges.

King Club is the airlines loyalty program. As a member of King Club, customers

enjoy a range of exclusive privileges and benefits for each membership level from

the moment they have reserved their travel till the time they reach their final

destination.The more a customer flies with Kingfisher Airlines the more he will be

rewarded.

People

Kingfisher Airlines cabin and ground crew is the hallmark of their services. The

real winning factor for Kingfisher Airlines is the quality of staff service being

provided to customers, and it is of course critical that the airline is able to sustain

these high quality levels as they experience continued and rapid expansion. Staff

delivers high standards of service efficiency, and in a sincere and charming mannerthat makes the airline stand out from the rest. The crew undergoes rigorous training

programs.

Kingfisher Airlines has also instituted the Kingfisher Training Academy to cater to

the growing demand for trained Service oriented professionals. The academy

provides intensive training on Airlines Orientation covering Airline Rules &

Regulations, Cabin Familiarization, Galley Management and AnnouncementDelivery.

Process


21/23

Following are the processes that add to the satisfaction experienced by Kingfisher

customers

Kingfisher Airlines facilitates easy booking of tickets. The passengers can

book their seats by calling their 24/7 customer care, by logging on to their

website, designated travel agents and at the airports.

The airline provides its customers with a personalized valet service at all

airports across the country. The valet service staff assists the passengers

right from the time they reach at the airport till they check in and also upon

arrival at the destination. Upon arrival, this staff guides the passengers to the

right baggage belt and assists them with it.

The airline tries to ensure that the passengers can retrieve their baggage after

they disembark from the aircraft in the shortest possible time. However, this

is also subject to the infrastructure of the airports.

Physical Evidence

Fleet: The airline has a brand new fleet of aircraft comprising of 18 ATR

72s, 4 A 319s, 13 A 320s, 8 A 321s, 2 A 330s.


22/23

Interiors of the aircraft: All the aircrafts of Kingfisher airlines have

designer interiors. The moment a passenger enters the aircraft, what strikes

him is the bold use of red color.

Cleanliness inside the aircraft: All the aircrafts are well maintained for

cleanliness and a pleasant experience.

References:1. Indian Brand equity Foundation website,www.ibef.com.2. Assam times, Community Newspaper3. Business section of website Maps of India.com.4. En.wikipedia.org/wiki/Airline#Airline_personnel5. www.indianchild.com/india_civil_aviation.html6 Kingfisherblog.wordpress.comhttp7. www.iloveindia.com/economy-of-india8. www.bangaloreaviation.com
http://www.ibef.com/http://www.ibef.com/http://www.iloveindia.com/economy-of-indiahttp://www.ibef.com/http://www.iloveindia.com/economy-of-india


23/23

2 kingfisher airlines business startegy

Documents