Objectives of Kingfisher Airlines Essay

KINGFISHER AIRLINESKingfisher air travel passages control is an wayline group based in India Its head office is in Andheri (East), Mumbai and Registered Office in UB City, Bangalore. Kingfisher Airlines, through its pargonnt play along united Breweries Group, has a 50% stake in low-cost carrier Kingfisher Red. The airline has been face financial issues for numerous years. Until December 2011, Kingfisher Airlines had the second largest share in Indias domestic air travel market. However due to a distasteful financial crisis faced by the airline at the beginning of 2012, it has the lowest market share since April 2012. Vijay M completelyya is looking at reports of Q3 of 2008 , thinking that can there beany way to at least break even in this critical season of economic slowdown. Aviation industry is very bleak industry triggered hard by the fadeout across the world. Kingfisher reports Rs. 592.96 crore net wrong (from exhibit-1) for the quarter ended 31st December 2008.Ind ian aura area is buckling beneath rising open fire prices & manpower be and falling air traffic. Sales stood at Rs 1,447 crore versus Rs 1,353 crore, in line with feed Airways, which excessively affix a net loss of Rs 214 crore for the quarter under review because of piteous load operators. The company claimed that technically, the financial precedes for the third quarter cannot be compared with the fit quarter because the Vijay Malaya-led Kingfisher was not listed last year and this years result include figures of erstwhile Air Deccan, which Kingfisher took oer last year. High fuel and other operational costs coupled with lower load factors contributed to the losings at Kingfisher, an industry observer said. On the operational front, Kingfisher saw integrated traffic being hit during the quarter because of the economic slowdown. Yields and front-end load factor also suffered The full impact of the price reduction in line turbine fuel will lower the airlines operatin g costs,HISTORYKingfisher Airline is a private airline based in Bangalore, India. The airlines owned by Vijay Mallya of United Beverages Group. Kingfisher Airlines set-backed its operations on May 9, 2005 with a go across of 4 Airbus A320 aircrafts. The destinations c over by Kingfisher Airlines are Bangalore, Mumbai, Delhi, Goa, Chennai, Hyderabad, Ahmadabad, Cochin, Guwahati,Kolkata,Pune, Agartala, Dibrugarh, Mangalore and Jaipur.In a short span of time Kingfisher Airline has carved a niche for itself. The airline offers several rummy services to its customers. These include personal valet at the airport to function in baggage handling and embarkment, exclusive lounges with private space, accompanied with refreshments and medicine at the airport, audio and video on-demand, with extra-wide personalized screens in the aircraft, sleeperette seats with extendible footrests, and three-course gourmet cuisine.CURRENT SCENARIOKingfisher Airlines currently hold ups with a brand new f leet of 8 AirbusA320 aircraft, 3 Airbus A319-100 aircraft and 4 ATR-72 aircraft. It was the inaugural airline in India to operate with all new aircrafts. Kingfisher Airlines isalso the first Indian airline to station the Airbus A380. It placed orders for 5 A380s, 5 A350-800 aircrafts and 5Airbus A330-200 aircrafts in a deal valued at over $3 billion on June 15,2005. With the sign of trouble in aviation industry, Kingfisher airlines and Jet airways (used to be competitors), formed alliance (October, 2008) to significantly rationalize and come down costs and provide improved standards and a wider choice of air travels options to consumers with immediate effect.Kingfisher airline has won global awards at the SKYTRAX World Airline Awards Lords Supper held recently in Hamburg, Germany (2009).Air France KLM is in talks with Jet Airways and Kingfisher Airline for having a code-share agreement .The conclusion of this agreement.MERGERS AND ACQISITIONSDec. 2007Low-cost carrier Deccan and Vijay Mallya-led Kingfisher Airlines decided to merge and score a single corporate entity to cut down operational costs and accelerate their journey to profitability. Shares of Deccan Aviation have doubled in a little over a month in anticipation of a reverse merger of Kingfisher Airlines into Deccan Aviation. Details of Deccan-Kingfisher merger, valuations and swap ratio will be worked out byaccountancy firm KPMG. Mallya would be the chairman and chief executive officer of the merged entity, while executive chairman of Deccan, Captain G R Gopinath would be the vice-chairman.STRATEGIC PARTNERS1. Kingfisher Airlines Inks Strategic Alliance with American Express. Partners launch Indias first Airline Corporate Charge Card Program degenerate track Corporate Savings with exclusive Rebates, Discounts, and Employee Rewards with King Club and bounty Points.2. Strategic and operational alliance with rival domestic carrier Jet Airways owned by Naresh Goel in 2009.Current schema of Kingfi sher AirlinesFollowing strategies were followed to put one across it one of the leading Airlines in India.Functional strategiesIt planned to re-launch its commercial air service called UB Airway again which it had to withdraw it due to government restrictions. The connection gave best services to its customers that were similar providing world class interiors, and in-flight entertainment systems. The company came up with only one class airlines rather than other airlines that had art sieve Economy Class the idea was to combine Business Class experiences and Economy Class experiences in one. Having a single class freed up more leg space for passengers when compared to normal economy class flights.The company started addressing its customers as GUEST rather than passengers. The company made its mark by providing its guests with more legroom and bigger seats so as to provide snap off comfort.KFA has set its sight to become Indias largest airline both is capacitance and in market share. KFAs promotional Strategies & Marketing StrategiesIt came up with a very appealing Promotional line Fly the good times andit reflected in the experience the company offered to its passengers. KFA is also launched Kingfisher express In order to tap into the growing LCCsegment. Also launched the facility of web check-in, allowing travelers to print their boarding passes via www.flykingfisher.com and the introduction of the Roving Agent at the airport. The Roving Agent is desire a check-in counter on the move. You no longer invite to go to the check-in counter and wait for long. As vocalism of itsPromotional outlinethe marketing team of KFA showcased the airline as the new flight of steps experience. The following initiatives were taken as part of its promotional strategyAdvertisements hoardings at airports depicted the stylish interiors of the Fun liners, which conveyed youthful, fun-filled, and world class image.INOX multiplexes in Mumbai publicized KFAs special offers f or a month.KFA was the official travel airlines for the upchuck and crew of Mangal Pandey- the movie .KFA made use of various fashion shows, honor golf matches, New Year parties allto build its Kingfisher brand.The UB groups monthly magazine called Pegasus print information about-face along with other information related to UB group.KFA launched many attractive offers to promote its sales similar the King Card in association with ICICI Bank, in August 2005. This was meant to create loyal customers for KFA by providing benefits like privileged access to lounges, restaurants, free refreshments at airports, access to 180 golf clubs across India, special invites for lifestyle shows.In October, KFA launched Chill Times conjure in the month of August 2005 and September 2005. In October they launched the King saver Offer which said Fly like a King, dont play like one. KFA targeted the frequent fliersbusiness traveler segment, which was dominate by Jet Airways. By offering a King saviour Booklet, this booklet contained six free flight tickets and was presented as a free gift if the passenger bought two such booklets each worth(predicate) Rs. 26,999.Passengers could avail off this offer if they showed there Jet Privilege ingredient (Gold or Platinum) card.Financial strategiesKFA came up with many new financial strategical moves that made it one of the leaders of aviation industry the company had adopted following strategies1. The company is planning to spend close to Rs 40 crore on various media and below-the-line marketing activities for the year 2009-102. Cut down the salaries of the staff like trainee pilot now drawing Rs20k as compare to Rs2.0lacs.3. To come over the financial crisis the KFL is considering an option of retrenchment.4. It purchased brand new A320 aircrafts powered by the cockpit that was a paperless environment.5. KFA was first Indian carrier to place an order for A380s.Expansion strategyTo further its expansion plan KFA put in its bid to debase Sahara in November 2005.However negotiation came to a standstill when KFA felt the valuation of Sahara Airlines of some US$750mn to US$1 bn. was too high.KFA has plans to make an Initial familiar Offer (IPO) and raise around US$200 mn that would be used for its fleet acquisition and route expansion activities.KFA set up Kingfisher International Inc. (KII), a subsidiary in US for its international operations. KFA plans to operate international routs by end of 2007. But KFA had yet to receive permission from the Indian government. According to Indian government domestic air carriers are not allowed to flyinternational routes without five year of domestic debauched experience. But Mr. Mallya said if he failed to convince the government to change its rules, it would start an airline in a foreign country and fly it to India. gracious Resource StrategiesPrior to launch, KFA signed a non-poaching alliance with Air Deccan under which both the airlines agreed not to hire each others employee. KFAs flight attendants called Flying models were selected through a national train model contest.KFA also stressed the fact that its employees had to be capable replete to meet the airlines high service standards.Mr. Mallya said Kingfisher Airlines Limited has a first class management team not just at circus tent most level but also in the second line. This is part of the UB groups commitment to human resources.*Recommended Strategies1. Should tie up with various state tourism (like Goa, Kerala, Tamil Nadu etc) to promote domestic air traffic.2. test online contests to boost traffic3. Looking at partnering with premium hotels, so that the customers of hotels now choose Kingfisher airlines for traveling.4. To minimize the air fuel cost and other operating expenses of aircraft they should purchase new more fuel efficient and advance technology based aircraft.5. Code sharing with other airlines.6. Rescheduling of flights so that they can coiffure the load.7. M ore tie ups are required like they can also be a part of STAR alliance.8. At the time of recession making collusions and cartels could be a goodidea.9. In such a scenario it is imperative for any airline to build its brand and have concentrate marketing strategy and created a new category of Aviation cordial reception thus making service and hospitality as main focus.10. The follow should join hands with certain banks like ICICI, SBI etc. to offer e-ticketing.