Competive strategy of Kingkisher and Indigo Airlines

8/2/2019 Competive strategy of Kingkisher and Indigo Airlines

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Presented To:-

Prof. Jitendra Singh Chouhan

Presented By:-

Vikas Pal

Lohit Shende

Hitesh Chand1


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First commercial flight in India was made on February18, 1911.

Tata Services became Tata Airlines and then Air-India.

In 1953, the government nationalized the airlines, andcreated Indian Airlines.

JRD Tata remained the chairman of Air-India and adirector on the board of Indian Airlines.

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Political: Govt. is not stable.

modernization of airports

Entry barriers for new players

Economy: Contribution to economy

Disposable income is increasing

GDP is expected to grow up to 9%

Rising fuel cost

Social: Developments in airport cities

Employment opportunitiesSafety regulation

Technology: growth of electronic ticketing

Satellite based navigation system

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It is owned by theBangalore based UnitedBreweries Group.

Mr. Sanjay Agrawal is theCEO of Kingfisher Airlines.

Kingfisher Airlines serves63 domestic destinationsand 8 international

destinations. Kingfisher operates more

than 375 daily flights. A Fleet of 66 Aircrafts.

It is parent company of theairline is Gurgaon-basedInterGlobe Enterprises

Former US Airways EVPMarketing and PlanningBruce Ashby is CEO ofIndiGo.

IndiGo operates to 31destinations in India and 5international destinations.

IndiGo operates more 275daily flights.

It has a fleet of 48 Aircrafts

4Source: flyKIngfisher.com Source: goindigo.in


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Kingfisher Airlines wasestablished in 2003.

It was founded by Mr. VijayMalya.

The airline startedoperations in 9 May 2005from Mumbai to Delhi.

It started its internationaloperations on 3 September2008 by connectingBangalore with London.

IndiGo was established inyear july 2006.

IndiGo was founded byRakesh Gangwal and RahulBhatia.

Its commenced operationson 4 August 2006 with aservice from New Delhi to

Imphal via Guwahati. it was announced to begin

international services on 1September 2011



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Kingfisher Airlineswill have 'Fly the GoodTimes' approach andthis will reflect in the

experience we willoffer to passengers.

"IndiGo is a veryquality consciousairline and passengersafety is paramount

to our company'smission and values,"



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(UB Group)

Fertilizers:MangaloreChemicals &

Fertilizers Limited Aviation

Engineering (DreamBuilders)

International Trading

Beverage Alcohol

Aviation

Hotels

BPO

IT

(Interglobe)

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8Source: DGCA


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Kingfisher Airlines is the first carrierin the country to offer live in-f light

entertainment. Kingfisher Airlines Ltd and Dish TV

have joined hands to provide live in-flight entertainment on Kingfisheraircraft.

The service would enable airlines

customers to book air travel ticketafter securing ngpay application ontheir GPRS-enabled mobile handsets.

On the promotional front, Kingfisherhas signed up the latest divaof Bollywood Ms. Deepika Padukone

as the Brand Ambassador.

A single passenger class.

Single type of airplane to reduce

training and service cost. No frills such as free food/drinks,

lounges.

Emphasis on direct sale of ticketthrough Internet to avoid fee andcommissions paid to travel agents.

Employees working in multiple roles.

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Luxury travel tomultiple destination

Flying to keydestinations across thecountry.

Finest cuisine withvariety.

Brand new fleets ofairbus A-320s & ATRs

Affordable travel

On time arrivals.

Customers loyalty.

Cuisines are notincluded in flight fares.

Use only one type ofaircraft.

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As per strategiesKingfisher airlines, they

are successfully able totarget higher incomegroup peoples but due tohigh operation cost theyarent able to attract to

target middle incomepeoples, which results indecreasing market shareof 22.7% to 19%.

IndiGo has alwaystargeted middle income

group by providingaffordable air travelling,which has increase itsmarket share and still

growing.

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First airline with full newfleet of aircraft.

Brand image withflamboyant personality ofMr. Vijay Malya.

Unmatched in flightservices.

Exclusive terminal sharedeal

Route rationalization

IndiGo has high brandawareness and brand equity.

Cost leadership: Successful

implementation of low coststrategy.

Highly efficient managementthat ensures high rate of on-time arrivals.

Continuous innovation to

improve on non price factors. Tie-up with hotels.

Ease of ticket booking forcustomers

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Highly priced for serviced

offer.

Yet to break

even

High attrition at the top

brass

Scope of productdifferentiation is less

Benefits of the innovationsimplemented by IndiGo toprovide better services tothe customers are short-lived, as these can be easilyimitated by the

competitors IndiGo is not exploring the

untapped domestic aircargo market.

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Under penetrated

domestic markets.

International market.

Untapped air cargo

market.

Expanding tourismindustry.

IndiGo airlines have not ventured

into the huge air freight market which

can contribute a sizeable portion of

the revenue. The flight densitnation of IndiGo

airlines is limited .

The huge untapped international

sectors.

IndiGo airlines should focus on longhaul aircrafts both for domestic and

international sectors.

The chartered flight services still

remain an area not exploited by

Indian aviation industry.15


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Existing operators.

Infrastructure issue.

Fuel price hike.

Economic slow down.

Huge competition from

other Domestic andInternational players

ATF prices have increasedradically since 2005.

Foreign and private players oftenpoach work-force ofcompetitors.

Extensive GovernmentInterference can affect theaccountability of theorganization.

Economic slow down The shortage of trained pilots,

co-pilots and ground staff isseverely limiting the growthprospects of all the airlinecompanies.

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Kingfisher airlines isturning in Dog from Star

because of high loss anddecrease in market sharein last few years, i.e. 1027cores.

Indigo is moving towardsStar from Question mark

due to increase in profitand market share incompare to any othercompany, profit of

Indigo airlines in yearNov 2011 is 650 cores.

Source: Danik Baskar 17 Nov. 2011


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Remove the flights fromlow frequency routes.

Looking at partneringwith premium hotels.

Try to focus on smalleraircraft .

Avoid full-course meals,give snacks.

IndiGo must increase itsdomestic operations.

Extension to freight andchartered services

Indigo require moreexperienced persons tohandle its Internationaloperations.

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Documents

Competive strategy of Kingkisher and Indigo Airlines