Objectives of Kingfisher Airlines Essay

KINGFISHER AIRLINESKingfisher oxygenate passages Limited is an air duct collection base in India Its head slip is in Andheri (East), Mumbai and Registered Office in UB City, Bangalore. Kingfisher airways, through its fire confederacy joined Breweries Group, has a 50% postal service in low- terms carrier Kingfisher Red. The air hose has been confront fiscal issues for many years. Until December 2011, Kingfisher Air course of studys had the second largest grant in Indias ho utilize servant air endure market. However due to a severe fiscal crisis faced by the respiratory tract business at the get of 2012, it has the lowest market share since April 2012. Vijay Mallya is looking at reports of Q3 of 2008 , thinking that seat there beany elan to at least break even in this critical time of economic slow subject. line perseverance is very sensitive industry triggered hard by the quoin across the world. Kingfisher reports Rs. 592.96 crore net loss (from exhibit-1) for th e string ended 31st December 2008.Indian gentle wind sector is buckling infra rising fuel prices & workforce cost and falling air occupation. Sales stood at Rs 1,447 crore versus Rs 1,353 crore, in line with Jet Airways, which in like manner stick on a net loss of Rs 214 crore for the pull in under review because of poor load occurrenceors. The familiarity claimed that technically, the financial results for the third quarter can non be compared with the corresponding 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 everywhere last year. High fuel and other run costs coupled with lower load factors contri just nowed to the losings at Kingfisher, an industry observer said. On the practicable front, Kingfisher saw incorporated traffic being frivol away during the quarter because of the economic slowdown. Yields and front-end load factor also suffered The full i mpact of the price reduction in aviation turbine fuel will lower the airlines unravel costs,HISTORYKingfisher Airline is a private airline based in Bangalore, India. The airlines owned by Vijay Mallya of United Beverages Group. Kingfisher Airlines started its operations on May 9, 2005 with a happen of 4 Airbus A320 aircrafts. The destinations c all overed 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 exserts some(prenominal) unique work to its customers. These include personal serviceman at the airport to assist in luggage handling and boarding, exclusive lounges with private space, accompanied with refreshments and euphony at the airport, audio and video on-demand, with extra-wide personalized screens in the aircraft, sleeperette seats with extendable footrests, and three-co urse gourmet cuisine.CURRENT SCENARIOKingfisher Airlines currently fails with a brand new fleet of 8 AirbusA320 aircraft, 3 Airbus A319-100 aircraft and 4 ATR-72 aircraft. It was the kickoff airline in India to operate with all new aircrafts. Kingfisher Airlines isalso the first Indian airline to point the Airbus A380. It mail serviced 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 headache in aviation industry, Kingfisher airlines and Jet airways (used to be competitors), organise alignment (October, 2008) to significantly rationalize and reduce costs and provide improved standards and a wider choice of air extends options to consumers with immediate effect.Kingfisher airline has won global awards at the SKYTRAX World Airline Awards ceremony 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 firm to merge and create a single corporate entity to cut down operational costs and urge on their journey to profitability. Shares of Deccan Aviation have doubled in a little over a month in anticipation of a reverse amalgamation 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 CEO of the merged entity, while decision maker chairman of Deccan, Captain G R Gopinath would be the vice-chairman.STRATEGIC PARTNERS1. Kingfisher Airlines Inks Strategic Alliance with American Express. Partners set in motion Indias first Airline bodied transmit Card Program Fast track Corporate Savings with exclusive Rebates, Discounts, and Employee Rewards with King Club and premium Points.2. Strategic and operational alliance with riv al home(prenominal) carrier Jet Airways owned by Naresh Goel in 2009.Current strategy of Kingfisher AirlinesFollowing strategies were followed to make it one and only(a) of the leading Airlines in India.Functional strategiesIt planned to re-launch its commercial air service called UB Airway again which it had to drive it due to government restrictions. The Company gave best services to its customers that were like providing world enlighten interiors, and in-flight entertainment systems. The company came up with only one class airlines quite an than other airlines that had Business affiliate rescue Class the idea was to combine Business Class arrives and Economy Class experiences in one. Having a single class freed up more(prenominal) leg space for passengers when compared to dominion economy class flights.The company started addressing its customers as lymph node rather than passengers. The company made its mark by providing its guests with more legroom and bigger seats s o as to provide better comfort.KFA has set its sight to move around Indias largest airline both is capacity and in market share. KFAs Promotional Strategies & Marketing StrategiesIt came up with a very appealing Promotional line move 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 meshing check-in, allowing travelers to print their boarding passes via www.flykingfisher.com and the introduction of the Roving federal agent at the airport. The Roving Agent is like a check-in counter on the move. You no longitudinal need to go to the check-in counter and gestate for long. As cut off of itsPromotional strategythe merchandising team of KFA showcased the airline as the new travel experience. The following initiatives were taken as part of its promotional strategyAdvertisements hoardings at airports depicted the voguish interior s of the Fun liners, which conveyed youthful, fun-filled, and world class image.INOX multiplexes in Mumbai publicize KFAs finical offers for a month.KFA was the official travel airlines for the cast and crew of Mangal Pandey- the movie .KFA made use of various fashion shows, celebrity golf matches, virgin Year parties allto build its Kingfisher brand.The UB groups monthly magazine called Pegasus publish entropy about-face along with other information related to UB group.KFA launched many attractive offers to kick upstairs its sales like the King Card in friendship 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 poke out in the month of August 2005 and September 2005. In October they launched the King Saver brook which said Fly lik e a King, dont flow like one. KFA targeted the frequent fliersbusiness traveler segment, which was dominated by Jet Airways. By oblation a King Saver Booklet, this booklet contained six free flight tickets and was presented as a free gift if the passenger bought two such booklets each worth Rs. 26,999.Passengers could avail off this offer if they showed there Jet Privilege Member (Gold or Platinum) card.Financial strategiesKFA came up with many new financial strategic 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 mechanical 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 expanding upon plan KFA put in its bid to sully Sahara in November 2005.However negotiation came to a standstill when KFA mat the valuation of Sahara Airlines of around US$750mn to US$1 bn. was too postgraduate.KFA has plans to make an Initial Public Offer (IPO) and raise around US$200 mn that would be used for its fleet acquisition and bridle-path expansion activities.KFA set up Kingfisher Intertheme Inc. (KII), a subsidiary in US for its international operations. KFA plans to operate international routs by end of 2007. But KFA had that 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 flying experience. But Mr. Mallya said if he failed to incline the government to change its rules, it would start an airline in a foreign country and fly it to India . compassionate 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 level model contest.KFA also stressed the fact that its employees had to be capable enough to meet the airlines high service standards.Mr. Mallya said Kingfisher Airlines Limited has a first class management team not unless at top 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 different state tourism (like Goa, Kerala, Tamil Nadu etc) to promote domestic air traffic.2. Running online contests to boost traffic3. Looking at partnering with premium hotels, so that the customers of hotels presently choose Kingfisher airlines for traveling.4. To minimize the air fuel cost and other operating expenses of aircraft they should purchase new more f uel efficient and advance technology based aircraft.5. Code sharing with other airlines.6. Rescheduling of flights so that they can adjust the load.7. More tie ups are requisite 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 focused marketing strategy and created a new category of Aviation hospitality thus making service and hospitality as main focus.10. The Company should join hands with certain banks like ICICI, SBI etc. to offer e-ticketing.