Kingfisher Airlines - Analysis

Analysis On Kingfisher Airlines

Contents ü Aviation industry ü Company profile – Kingfisher Airlines ü 7p’s Analysis ü 3c’s Analysis ü Customer recovery & relationship management ü Company Profile – Jet Airways ü 7p’s Analysis ü 3c’s Analysis ü Customer recovery & relationship management ü Comparison – Kingfisher Airlines & Jet Airways

Aviation Industry in India ü Civil aviation in India started with its first commercial flight on February 18, 1911 ü Journey from Allahabad to Naini ü First domestic air route between Karachi and Delhi was opened in December 1912 by the Indian State Air Services in collaboration with the Imperial Airways, UK as an extension of London-Karachi flight of the Imperial Airways.

Sector structure/Market ü With a growth rate of 18 per cent per annum, the Indian aviation industry is one of the fastest growing aviation industries in the world. ü Today, private airlines account for around 75 per cent share of the domestic aviation market. ü India has jumped to 9th position in world's aviation market from 12th in 2006. The scheduled domestic air services are now

Road Ahead ü Passenger traffic is projected to grow at a CAGR of over 15 per cent in the next 5 years. ü The Vision 2020 statement announced by the Ministry of Civil Aviation, envisages creating infrastructure to handle 280 million passengers by 2020. ü Investment opportunities of US$ 110 billion envisaged up to 2020 with US$ 80 billion in new aircraft and US$ 30 billion in development of airport infrastructure.

KINGFISHER AIRLINES

Company Profile

ü Kingfisher Airlines Limited is India's largest airline. ü Based in Bangalore. ü Operates more than 400 flights a day, network of 77 destinations, with regional and long-haul international services. ü One of six airlines in the world to have a five-star rating

ü Main bases: § Bangalore's Bengaluru International Airport § Mumbai's Chhatrapati Shivaji International Airport § Hyderabad's Rajiv Gandhi International Airport § Delhi's Indira Gandhi International Airport. ü Through one of its holding companies United Breweries Group, has a 50 percent stake in low-cost carrier Kingfisher Red, formerly known as Air Deccan.

ü May 2009, Kingfisher Airlines carried more than a million passengers, giving it the highest market share among airlines in India. ü Frequent flyer program called King Club. ü A strategic code-sharing agreement with Jet Airways, & an alliance with the Hilton Hotels Corporation. ü Headquarters: UB City, Bangalore

ü Started operations on 9 May 2005, following the dry lease of four brand new Airbus A320-200 aircraft. ü Its first flight was from Mumbai to Delhi ü At the launch of the airline, Dr. Mallya said that he is "committed to achieving our ambition of making Kingfisher Airlines India's largest private airline both in capacity and market share by 2010.“ ü Brand ambassador : Deepika Padukone

ü In January 2007, Kingfisher entered into a multi-year partnership deal with Toyota Motorsport to be an official partner of the Toyota F1 racing team. ü In October 2007, the airline announced Deepika Padukone as its brand ambassador, replacing Yana Gupta. ü In September 2008, Kingfisher announced its plans to raise US$ 100 million through equity.

ü On 13 October 2008, Kingfisher chairman Vijay Mallya and his Jet Airways counterpart Naresh Goyal announced a strategic alliance after a meeting in Mumbai. ü The alliance was formed to implement code-sharing between the two airlines on both domestic & international flights, joint fuel management to reduce expenses, common ground handling, joint utilization of crew & sharing of their frequent flier programmes, namely King Club & Jet Privilege. ü On 12 January 2009, Kingfisher Airlines announced its alliance with Hilton HHonors, the guest rewards program for the more than 3,000 hotels of the Hilton Hotels Corporation worldwide. ü The new alliance allows members of the King Club

7P’s Analysis Product:

ü Domestic & International Air Transport Service. ü 74 domestic destinations & 3 international destinations in 3 countries across Asia & Europe. ü On 3 September 2008, Kingfisher Airlines began its international operations by connecting Bangalore to London.

Services: Domestic & International: ü Kingfisher First ü Kingfisher Red ü Kingfisher Class

Place: ü Services ranges from Ahmadabad to Agartala & to the major cities such as Delhi, Bangalore, & Chennai etc. ü The main strategy that kingfisher follows is to target the metro cities or the tier 1 cities in India.

Promotion: ü Events & advertisements ü Multiple touch points & finer promotional services working for the promotional activities. ü Loyalty & frequent flyer programs are also carried out.

Price: ü Higher income group as well as the upper middle class background. ü The youth & the high lifestyle segments. ü Sec A, sec B+ socio economic class mainly in the age group of 25-45 years: a specific prices offered by kingfisher. ü Services offered by kingfisher do emphasis on their policy to target those segments which are willing to pay for luxury.

People: ü Hospitality industry, Interpersonal skills, aptitude, & service knowledge people.

Physical evidence: ü Exclusive lounge space, Hi! Blitz, Gourmet cuisine, world class cabin crew, 5 trendy video- Fun TV, 10 music stations -Kingfisher Radio .

Process: ü Booking the ticket-online booking ü Tele-booking ü Kingfisher outlet.

3C’s Analysis Customer: ü Business Class travelers, Corporate, Leisure travelers, Students, King Club members Company: ü Kingfisher Airlines Airbus A320-200 taxiing at Bangalore International Airport, ATR 72-500, Airbus A330-200, Kingfisher Airlines' fleet

Communication: üAdvertisements in television, newspapers, business magazines, etc. üVery famous Kingfisher Yearly Calendar. üSponsorship to various events. üLoyalty programs like King Club.

Customer Recovery & ü Frequent Flier Program ü King Club Membership ü Mileage Accrual Benefit ü Airport Facilities Members

for

King

Club

JETAIRWAYS

Company Profile

ü In May 1974, Naresh Goyal founded Jetair (Private) Limited with the objective of providing Sales and Marketing representation to foreign airlines in India. ü In 1991, he set up Jet Airways (India) Private Limited, for the operation of scheduled air services on domestic sectors in India. ü Jet Airways has emerged as India's largest private domestic airline.

ü It has been acclaimed by frequent travelers as the most preferred carrier offering the highest quality of comfort, courtesy and standards of in flight and ground service and reliability of operations. ü It currently has a market share of 46.7%. ü Jet Airways has been voted India's 'Best Domestic Airline' consecutively and won several national and international awards. ü Jet Airways is an airline based in Mumbai, India. ü On 12 April 2007, Jet Airways agreed to buy out Air Sahara for 14.5 billion rupees (US$340 million). Air Sahara was renamed JetLite ü It is India's second largest international airline after Air India and along with its subsidiary, Jetlite, the second largest domestic airline in India.

7P’s Analysis Product: Domestic & International Air Transport Service.

Place: Jet Airways serves 44 domestic destinations and 20 international destinations in 17 countries across Asia, Europe and North America. It operates a scissors-hub at Brussels Airport.

Promotion: Companion Free Offer, One Fare, Concessional fares, Jet Privilege Offers, Jet Airways Citibank Credit Cards, Corporate Deal Offers, International Specials, Camp Rock contest, Festival specials, Student specials, Surprises etc. Advertising and Branding, Hoardings, Brand Ambassadors, Sponsorships, Event Organization.

Price: Economy & Club Premiere Fare Discounted fare for senior citizens & defense personnel Advance Passenger Excursion/ APEX Fares One Fare Night Saver Fares Check Fares US Dollar Fares & Visit India Fares. People: Crew members, ground staff, customers, suppliers.

Physical evidence: Services, Elaborate Flight Offices - Org. & Ticket Booking Agents Virtual Services, Aircrafts, Logo

Process: Booking the ticket - online booking or tele-booking, Ground services

3C’s Analysis Customer: Business Class travelers, Corporate, Leisure Travelers, Students Company: Jet Airways is an airline based in Mumbai, India. It is India's third largest airline after Air India and Kingfisher Airlines. It operates over 400 daily flights to 64 destinations worldwide. Its primary base is Mumbai's Chhatrapati Shivaji International Airport with secondary hubs at Bangalore, Brussels, Chennai, Delhi and Hyderabad, Kolkata and Pune as focus cities.

Communication: üAdvertisements in newspapers, business magazines, etc. üSponsorship to various events. üLoyalty programs.

Customer Recovery & ü “Jet Privilege” Frequent Flier Program ü Mileage Accrual Benefit ü Airport Facilities

Comparis on

Kingfisher Vs Jet.flv

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