INTRODUCTION

Kingfisher Airline is a private airline based in Bangalore, India. The airline

is owned by Vijay Mallya of United Beverages Group. Kingfisher Airlines

started its operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts.

The airline currently operates on domestic routes. The destinations covered

by Kingfisher Airlines are Bangalore, Mumbai, Delhi, Goa, Chennai,

Hyderabad, Ahmedabad, 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 unique services to its customers. These include:

personal valet at the airport to assist in baggage handling and boarding,

accompanied with refreshments and music at the airport, audio and video

on-demand, with extra-wide personalized screens in the aircraft and three-

course gourmet cuisine.

Kingfisher is one of only 6 airlines in the world to have a 5 star rating from

Skytrax, along with Asian Airlines, Malaysia Airlines, Qatar Airways,

Singapore Airlines and Cathay Pacific Airways. In a short span of time

Kingfisher Airline has carved a niche for itself. The airline offers several

unique services to its customers. These include personal valet at the airport

to assist in baggage handling and boarding, exclusive lounges with private

space, accompanied with refreshments and music at the airport, audio and

video on-demand, with extra-wide personalized screens in the aircraft,

sleeperette seats with extendable footrests, and three-course gourmet cuisine.

History

Kingfisher Airlines is a subsidiary of the UB Group, one of the largest

beverage companies in the world. The branding of the airline is linked to

that of Kingfisher Beer, India’s largest brewery.

The airline, which is headed by the charismatic Dr Vijay Mallya, took to the

skies in May 2005, and attracted attention for its high quality product with

personal inflight entertainment in every seat; custom interior designs for

each aircraft; valet assistance at airports and complimentary hot food and

beverages. The airline initially operated a single class service but

subsequently introduced a highly acclaimed First Class, allowing it to

compete with Jet Airways for the high yield corporate market. In addition to

its A320 family aircraft used on domestic routes, Kingfisher Airlines also

operates ATR-72 turboprops on regional sectors.

Under current Indian regulations, which require airlines to operate 5 years

domestic service before being granted international rights, Kingfisher will

not be permitted to operate overseas until 2010. However, the airline has

very clear international ambitions, with an order book for 45 wide body

aircraft, including A330s, A340s, A350s and A380s.

In just over two years, Kingfisher Airlines has achieved a market share of

10% and has one of the most aggressive expansion plans of all Indian

carriers during 2007. In Jun-07, it dramatically increased its influence in the

market with the acquisition of a 26% shareholding in India’s largest LCC,

Air Deccan, for approximately USD130 million, and an open offer for a

further 20%. Through schedule coordination and joint operations in ground

handling, training, and maintenance, the carriers are projecting annual cost

savings of over USD70 million.

There will also be greater coordination between the two brands, with Air

Deccan to adopt the Kingfisher image in its logo and to switch to a red,

rather than a blue colour scheme. The combined Kingfisher/Deccan group

has a market share of just over 30% and a product range spanning from the

price-sensitive, first-time flyer, to the high yield business traveler, making it

one of the key pillars of the airline industry.

The airline which started its operation on 9th May 2005, following the lease

of 4 Airbus A320 aircraft. As of July 2007, Kingfisher operates only on

domestic routes, however it has announced plans to start flights to the USA

with Airbus A380 aircraft. The airline is owned by the United Beverages

Group under the leadership of Vijay Mallya (which also owns the popular

Indian beer of the same name). The airline promises to suit the needs of air

travellers and to provide reasonable air fares. Kingfisher Airlines' main

"luxury" component is its In-Flight Entertainment System, a first among

Indian airlines. The airliners in-flight Mobile Phone and Internet Services

will be provided by OnAir starting 2008 for longhaul flights.

Services

1. Domestic

Kingfisher First

The domestic Kingfisher First seats have a 48 inch seat pitch and a 125

degree seat recline. There are laptop and mobile phone chargers on every

seat. Passengers can avail of the latest international newspapers and

magazines. There is also a steam ironing service on board Kingfisher First

cabins. Every seat is equipped with a personalized IFE system with AVOD

which offers a wide range of Hollywood and Bollywood movies, English

and Hindi TV programmes, 16 live TV channels and 10 channels of

Kingfisher Radio. Passengers also get BOSE noise cancellation headphones.

Kingfisher Class

The domestic Kingfisher Class has 32-34 inch seat pitch with footrests.

Every seat is equipped with personal IFE systems with AVOD on-board the

Airbus A320 family aircraft. As in Kingfisher First, passengers can access

the latest movies, English and Hindi TV programmes, live TV and

Kingfisher Radio.

On-board the ATR 72-500s there are 17 colour LCD drop-down screens

mounted along with loudspeakers for audio in the cabin overhead, a head-

end unit to handle CDs and DVDs, and a crew control panel. The screens

measure 12.7 cm by 9.3 cm, weigh 0.2 kg each and are spaced every two or

three seat rows along both sides of the cabin.

Kingfisher Red

After Kingfisher Airlines acquired Air Deccan, its name was changed to

Simplifly Deccan and subsequently to Kingfisher Red. Kingfisher Red is

Kingfisher Airline's low-cost class on domestic routes. Passengers are given

complimentary in-flight meals and bottled water. A special edition of Cini

Blitz magazine is the only reading material provided.

Kingfisher Airlines is the first airline in India to extend its King Club

frequent flyer program to its low-cost carrier as well. Passengers can earn

King Miles even when they fly Kingfisher Red, which they can redeem for

free tickets to travel on Kingfisher Airlines or partner airlines.

2. International

Kingfisher First

The international Kingfisher First has full flat-bed seats with a 180 degree

recline, with a seat pitch of 78 inches, and a seat width of 20-24.54 inches.[16]

Passengers are given Merino wool blankets, a Salvatore Ferragamo toiletry

kit, a pyjama to change into, five-course meals and alcoholic beverages.

Also available are in-seat massagers, chargers and USB connectors.

Every Kingfisher First seat has a 17 inch widescreen personal television

with AVOD touchscreen controls and offers 357 hours of programming

content spread over 36 channels, including Hollywood and Bollywood

movies along with 16 channels of live TV, so passengers can watch their

favorite TV programmes live. There is also a collection of interactive games,

a jukebox with customisable playlists and Kingfisher Radio. Passengers are

given BOSE noise cancellation headphones.

The service on board the Kingfisher First cabins includes a social area

comprising a full-fledged bar staffed with a bartender, a break-out seating

area just nearby fitted with two couches and bar stools, a full-fledged chef

on board the aircraft and any-time dining. A turn-down service includes the

conversion of the seat into a fully-flat bed and an air-hostess making the bed

when the passenger is ready to sleep.

Both Kingfisher First and Kingfisher classes feature mood lighting on the

Airbus A330-200 with light schemes corresponding to the time of day and

flight position.

Kingfisher Class

The international Kingfisher Class seats offer a seat pitch of 34 inches, a seat

width of 18 inches and a seat recline of 25 degrees (6 inches). Passengers get

full length modacrylic blankets, full size pillows and business class meals.

There are in-seat chargers and USB connectors.

Each Kingfisher Class seat has a 10.6 inch widescreen personal television

with AVOD touchscreen controls. The IFE is similar to that of the

international Kingfisher First class.

3. In-flight entertainment

Kingfisher's IFE system is the Thales TopSeries i3000/i4000 on-board the

Airbus A320 family aircraft, and Thales TopSeries i5000 on-board the

Airbus A330 family aircraft provided by the France-based Thales Group.

4. Kingfisher Lounge

Kingfisher Lounges are offered to Kingfisher First passengers, along with

King Club Silver and King Club Gold members. Lounges are located in:

Bangalore

Chennai

Delhi

Hyderabad

Mumbai

4. King Club

The Frequent-flyer program of Kingfisher Airlines is called the King Club in

which members earn King Miles every time they fly with Kingfisher or its

partner airlines, hotels, car rental, finance and lifestyle businesses. There are

four levels in the scheme: Red, Silver,Gold and Platinum levels. Members

can redeem points for over a number of schemes. Platinum, Gold and Silver

members enjoy access to the Kingfisher Lounge, priority check-in, excess

baggage allowance, bonus miles, and 3 Kingfisher First upgrade vouchers

for Gold membership. Platinum members get 5 upgrade vouchers.

STRATEGIES OF KINGFISHER AIRLINES

The business and services mentioned above reflect three types of major

strategies employed by the organization at various levels. Namely they are:

CORPORATE LEVEL STRATEGY

At Corporate level KINGFISHER takes special care of the thrust areas of

the organization such as resource mobilization, effective use of resources,

mergers & acquisition, proper management of investment and earnings.

BUSINESS LEVEL STRATEGY

At Business Level the KINGFISHER concentrates on Strategic Business

Unit of the group which includes air lines, research, training, fertilizers,

engineering, and infrastructure management.

FUNCTIONAL LEVEL STRATEGY

At Functional Level special attention is given to different departments which

involves Technical, Marketing, Finance, H.R., Research, Corporate affairs,

Legal & Secretarial.

KEY STEPS TOWARDS STRATEGIC PLANNING

Our Vision

“The Kingfisher Airlines family will consistently deliver a safe, value-

based and enjoyable travel experience to all our guests.”

OUR MISSION

VISION

MISSION

OBJECTIVES

GOALS

VALUES

STRATEGIES

PROGRAMMES

"Kingfisher Airlines will have 'Fly the Good Times' approach and this will

reflect in the experience we will offer to passengers."

Our Values

Safety

This is our overriding value. In our line of business, there is no

compromise.

 

Service

We are all in the hospitality business; we must always seek to serve our

guests and gain their trust, goodwill and loyalty.

 

Happiness

We seek to build an organisation with people who choose to be happy, and

will endeavour to influence our guests and co-workers to be happy too.

 

Teamwork

We will succeed or fail as a team. Each one of us must respect our

colleagues regardless of their rank, and we must work together to ensure

our mutual success.

 

Accountability

Each one of us will be held accountable for the successful execution of our

duties, commitments and obligations, and we will strive to lead by example.

KEY STEPS TOWARDS BUSINESS STRATEGIES

A scan of the internal and external environments forms an important part of

the strategic planning process. Environmental factors internally affecting the

firm can be classified as Strengths or Weaknesses and those externally

affecting to the firm can be classified as Opportunities and Threats. This is

referred to as SWOT Analysis.

STRENGHTS

Large Fleets

Experienced Staff

Dedicated Departure terminal at Delhi

Connectivity with the reservation centers and agents are good

Adequate infrastructure and large network

People are loyal towards the national carrier

Kingfisher Airlines has a modern and complete in – house training facility

WEAKNESSES

High overheads and huge workforce resulting in lower output

Preconceived image of PSU’s

Attitude of the staff

Ageing workforce ( cabin crew )

Kingfisher Airlines has its socio – economic responsibility of catering to the inaccessibility areas at subsidized rate affecting operational expenses

Being a dedicated terminal all services rendered at the airport is presumed by passengers to be done by Kingfisher Airlines

Inaccessibility of the staff over phone

BCG MATRIX

The Boston Consulting Group (BCG) Matrix is a simple tool to assess a

company’s position in terms of its product range. It helps a company think

About its products and services and make decisions about which it should

keep which it should let go and which it should invest in further.

In 1970’s, BCG experience curve work led to inside that has a significant

impact on business thinking i.e. of rapid growth in market share was the

important as the curve suggested then the usual approach resource allocation

in which each business unit funded in on growth seems to be recipe for it

failure.

Business with low market share but high potential would never generate

enough cash to win the race down the experience curve. Those with the high

market share but few changes of growth would generate far more cash than

those would use productivity.

The BCG matrix can be diagrammatically represented as follow

Question Marks

Question marks are products that grow rapidly and as a result consume large

amounts of cash, but because they have low market shares they don’t

generate much cash. The result is a large net cash consumption. A question

mark has the potential to gain market share and become a star, and

eventually a cash cow when the market growth slows. If it doesn’t become a

market leader it will become a dog when market growth declines. Question

marks need to be analysed carefully to determine if they are worth the

investment required to grow market share.

Dogs

Dogs have a low market share and a low growth rate and neither generates

nor consumes a large amount of cash. However, dogs are cash traps because

of the money tied up in a business that has little potential. Such businesses

are candidates for divestiture.

Stars

Stars generate large sums of cash because of their strong relative market

share, but also consume large amounts of cash because of their high growth

rate. So the cash being spent and brought in approximately nets out. If a star

can maintain its large market share it will become a cash cow when the

market growth rate declines.

Cash Cows

As leaders in a mature market, cash cows exhibit a return on assets that is

greater than the market growth rate – so they generate more cash than they

consume. These units should be ‘milked’ extracting the profits and investing

as little as possible. They provide the cash required to turn question marks

into market leaders.

GE GROWTH MATRIX

The GE Matrix is a model to perform business portfolio analysis

on the Strategic Business Units of a corporation. The General

Electronics of USA with the support of consulting firm Mckinsey

and Co. developed a more complicated matrix as a technique of

portfolio analysis.

MCKINSEY 7S FRAMEWORK

Introduction

This paper discusses McKinsey's 7S Model that was created by the

consulting company McKinsey and Company in the early 1980s. Since

then it has been widely used by practitioners and academics alike in

analyzing hundreds of organisations. The paper explains each of the seven

components of the model and the links between them. It also includes

practical guidance and advice for the students to analyse organisations

using this model. At the end, some sources for further information on the

model and case studies available on this website are mentioned.

The McKinsey 7S model was named after a consulting company,

McKinsey and Company, which has conducted applied research in business

and industry (Pascale & Athos, 1981; Peters & Waterman, 1982). All of the

authors worked as consultants at McKinsey and Company; in the 1980s,

they used the model to analyse over 70 large organizations. The McKinsey

7S Framework was created as a recognizable and easily remembered model

in business. The seven variables, which the authors term "levers", all begin

with the letter "S":

Figure: McKinsey's 7S Model

These seven variables include structure, strategy, systems, skills, style,

staff and shared values. Structure is defined as the skeleton of the

organisation or the organisational chart. The authors describe strategy as

the plan or course of action in allocating resources to achieve identified

goals over time. The systems are the routine processes and procedures

followed within the organisation. Staff are described in terms of personnel

categories within the organisation (e.g. engineers), whereas the skills

variable refers to the capabilities of the staff within the organisation as a

whole. The way in which key managers behave in achieving organisational

goals is considered to be the style variable; this variable is thought to

encompass the cultural style of the organisation. The shared values

variable, originally termed superordinate goals, refers to the significant

meanings or guiding concepts that organisational members share (Peters

and Waterman, 1982).

The shape of the model (as shown in figure) was also designed to illustrate

the interdependency of the variables. This is illustrated by the model also

being termed as the "Managerial Molecule". While the authors thought that

other variables existed within complex organisations, the variables

represented in the model were considered to be of crucial importance to

managers and practitioners (Peters and Waterman, 1982).

The analysis of several organisations using the model revealed that

American companies tend to focus on those variables which they feel they

can change (e.g. structure, strategy and systems) while neglecting the other

variables. These other variables (e.g. skills, style, staff and shared values)

are considered to be "soft" variables. Japanese and a few excellent

American companies are reportedly successful at linking their structure,

strategy and systems with the soft variables. The authors have concluded

that a company cannot merely change one or two variables to change the

whole organisation.

For long-term benefit, they feel that the variables should be changed to

become more congruent as a system. The external environment is not

mentioned in the McKinsey 7S Framework, although the authors do

acknowledge that other variables exist and that they depict only the most

crucial variables in the model. While alluded to in their discussion of the

model, the notion of performance or effectiveness is not made explicit in

the model.

ORGANIZATIONAL STRUCTURE OF

KINGFISHER AIRLINES

Kingfisher Airlines is led by a dynamic, extremely talented and experienced team:

Board of Directors

Dr. Vijay Mallya, Chairman & CEO

Mr. Subhash Gupte, Vice–Chairman, The UB Group

Mr. Piyush Mankad

Mr. A.K. Ravi Nedungadi

Diwan Arun Nanda

Mr. V.K. Rekhi

Dr. Naresh Trehan

Mr. Rup Pillai

STRATEGIES FOR KINGFISHER AIRLINES

Market Penetration Strategy Product DevelopmentMarket Development Strategy Diversification

Market Penetration Strategy (1st Quarter)

Encouraging existing Customer to buy more Showing benefits for using more (associating freebies/extra service/membership with primary offering).

Try to look for foreign entrant's weakness (Virgin Atlantic is lacking in Indian values & tastes).

Product Development (2nd Quarter)

Seek additional distribution channels (More tie ups & collaboration: Try seeking collaboration with international carriers, Bilateral discussions over seats and code-sharing between the carriers).

New product development.

Market Development Strategy (3rd Quarter)

Try to find out new customer group (Old-retired persons). Special offering for first time fliers.

Diversification (4th Quarter)

May go for other services like international flights etc. (concentric diversification).

May go for arrangement fashion shows (horizontal diversification). May go for other things, which can lure the youth.

RECOMMENDATIONS

In this extremely competitive environment suggestions are extreme

importance. Kingfisher Airlines with rich Human Resource should

look forward to such suggestion and reward individual whose

suggestion were actually beneficial for the organization

Kingfisher Airlines can introduce Late bird / Night bird flights

between metros

Kingfisher Airlines should schedule more number of flights to and

from station like Delhi, Mumbai, Chennai, Collate, Bangalore as these

sectors account for high payload

Kingfisher Airlines needs to undertake aggressive Marketing

Kingfisher Airlines should undertake customers satisfaction survey

Kingfisher Airlines should make provisions to add up more financial

benefits for its passenger

Flight status should be made available through SMS

New approaches should be identified and rewarded so that it serves as

example for others

Conclusion

After doing a study of this project representing on Kingfisher Airlines, I

have come to a conclusion that Kingfisher Airlines is one of the largest and

most widespread airlines of the country providing its services not only in

India as well as outside India also. It has alliance with many other airlines in

this sector.

Kingfisher Airlines offers world class services to the customer at a nominal

rate. The national carrier takes immense pride in having successfully played

a pivotal role in making various facets of India popular with the people of

the world and acting as the country’s cultural ambassador. The airline uses

the services of one of the advanced plans been operated in the world.

To sum up I would like to say that Kingfisher Airlines is serving its

customer in an appreciated way and going to be in the list of best services

providers in coming years.

Bibliography

Books & Magazines –

1. Kothari, C.R., “Research Methodology”, Wishwa Prakashan,

Delhi, 2004

2. “King of Good Times”, Outlook Business, December 20, 2006

Websites –

1. www.google.co.in

2. www.flykingfisher.com

3. www.theubgroup.com

4. www.kingfisherair.in

5. www.wikipedia.com