This could end up being very tricky as the business selected should have been both challenging as well much like some scope for applying managerial ideas. Kingfisher is state-owned, and is also given by the Ministry of Civil Aviation. It is one of the two flag service providers of India, the other being Air India. The Kingfisher was rebranded as Indian for advertising purposes as a part of an application to revamp its image in preparation for an initial open public offering IPO.
Are the good times over? Veena Tripathi Assistant Professor K. The growing middle classes want the kind of standard of living you enjoy in the West.
The case discusses about the journey of Kingfisher airlines and the reasons behind the downfall the company has been going through in the current times. Case Objectives: 12 | P a g e To get an insight on the current position of the aviation Industry To know about the reasons for the downfall of much talked about Kingfisher Airlines. BPCL (Bangalore Petro Chemical Ltd) has even filed a court case for recovery on unpaid dues of over cr. cr. stewardesses. kaja-net.com. fuel prices It has a total debt of Rs. Kingfisher airlines . Frontier Airlines (F9) has announced plans to start new services from Washington Dulles International (IAD) airport. The ultra low fare carrier will start nonstop flights to fourteen destinations, with the first being planned on August 19,
So what I am selling is lifestyle. Kingfisher Airlines was established in It started its international operations on 3 September In MayKingfisher Airlines carried more than 1 million passengers; giving it the highest market share among airlines in India. Kingfisher also won the Skytrax award for India's best airline of the year He provided the means for that.
The company had identified over touch points — right from the first brand contact via travel agent or its website to smartly dressed Kingfisher help at the airports to the entire in-flight experience with Live TV and meal offering 3 Page with about six different types of choices on the menu.
All this lead to its promise: Kingfisher First is the business class service of KFA focused on business class passengers who are willing to spend for premium services. Kingfisher Class is the aspirational premium economy service of KFA focused on the growing middle-class that is trendy, savvy and upwardly mobile.
Kingfisher Red is the low fare service of KFA focused on the growing middle class who are price conscious. KFA has carved a distinct position for itself by its flamboyant lifestyle image and by offering a great flying experience with comfort seating, personalized entertainment and services to its passengers Market segmentation was right — SEC A, SEC B in the age group of years and married young professionals with kids in the age group of years with an annual income of more than Rs.
An all women in-cabin crew,Flying Models wore designer red short dresses. Advertising was at its peek. Deepika Padukone was hired as the face of the brand.
It had been 4 years since birth of Kingfisher Airlines and shareholders were still waiting to receive first dividend from the company but company continued its run of losses and reported a marginally increased losses of INR KFA is more of a business failure than a marketing failure.
The only marketing failure that can be find out in the entire gamut of things was the takeover of Air Deccan and formation of Kingfisher Red and thereby diluting the brand value, KFA stood for. Dr Mallya wanted to change the thought or wanted us to believe that airlines were no more a means of going from place A to B.
But the general middle class and also upper class in India consider travelling as a means of transport. There is a few selected class that wouldlike to pay extra for getting luxury while travelling. Aviation Industry is presently in the state of more supply and lessDemand.
They were almost as old as Kingfisher Airlines but what new about them was that they had restructured themselves with time but had always stayed on course with it comes down to business model.
There is still a big class of people who prefer to travel by Indian Railways and therefore the 5 Page strategy of Kingfisher was more suited for the Business class customers. Much of the travel through flights between metros is covered in less than two hours.
In-flight entertainment or a movie is started only after the seat-belt signs are off. Most passengers on domestic flights are not looking forward to in-flight entertainment. A tie-up with DishTV for live entertainment meant installation of more than 50 customised dishes on aircrafts.
Offering free headphones was also an added cost for the company. Kingfisher Airlines decided to introduce Kingfisher Red and then it automatically entered into a price war against all other carriers especially domestically.
Airline business has extremely long gestation periods. The business fliers which were earlier loyal to Kingfisher Airlines used all their frequent flier miles, bought free tickets, gave the same to their families and did not return back.
As soon as Kingfisher realised that they had committed a mistake by changing model of Air Deccan, it in a haphazard way increased prices of Kingfisher Red and brought the same on par with other airlines.
At this point of time Kingfisher Red had become a lost opportunity and even the management was confused if it would call it a normal carrier or a low cost one. While KFA truly offered a premium and luxury service it took pride in calling itself a budget airlines.
Amidst this all, Dr Mallya forgot that he was operating in a business where fuel costs are variable and taxes are discretionary. Add to all this the costs of high-blitz advertising, including the deal with Ms Padukone, putting up exclusive lounges at airports, gourmet cuisine, tele-booking centres in Kingfisher First, aircraft costs, acquisition costs of Air Deccan… and what not.
It was a clear case coming true of the Indian proverb: Aamdani atthani, kharcha Rupaiya. The domestic aviation market of India too has been growing rapidly, and is estimated by IATA International Air Transport Association to emerge as the third biggest domestic aviation sector in the world by the yearafter USA and China.
Hence, on the whole, FDI in aviation in India, is going to be hugely popular and preferred by foreign aviation companies and investors, because of being very profitable and secured.
The foreign carriers have so far not been allowed to directly invest in Indian carriers for security reasons, although 49 percent FDI by non-airline players was allowed. Soon after it was finalized in Septemberthe shares of all the airlines soared 7 Page high.Case study on Kingfisher Airlines.
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Kingfisher Airlines is the only airline to provide connectivity between New Delhi and Agra.. through travel agents and by logging on to their website. Frequency of flights: Kingfisher Airlines offers the maximum number of flights offered by any single airline network in India.
Frontier Airlines (F9) has announced plans to start new services from Washington Dulles International (IAD) airport. The ultra low fare carrier will start nonstop flights to fourteen destinations, with the first being planned on August 19, CASESTUDY ON KINGFISHER AIRLINES Kingfisher Airlines Ltd.
(KAIR) is a private airline based in Bangalore, India. Currently, the Indian carrier is struggling with a cash shortage and losses, it will end international flights and cut many local routes as it seeks funds to revive operations.