Analysis of Kingfisher. Essay

IntroductionKingfisher business passage business is a semiprivate respiratory tract base in Bangalore, India. The airlines owned by Vijay M entirelyya of fall in Beverages Group. Kingfisher air lanes started its operations on May 9, 2005 with a fleet of 4 aeratebus A320 aircrafts. The airline currently operates on house servant routes. The destinations coered by Kingfisher airmanshiplines ar Bangalore, Mumbai, Delhi, Goa, Chennai, Hyderabad, Ahmedabad, Cochin, Guwahati, Kolkata, Pune, Agartala, Dibrugarh, Mangalore and Jaipur.In a pathetic span of measure Kingfisher Airline has work a niche for itself. The airline offers several unusual answers to its customers. These let in individualized valet at the airport to assist in luggage handling and boarding, accompanied with refreshments and music at the airport, audio and video on-demand, with exceptional-wide modify checks in the aircraft and triplet-course gourmet cuisine.Kingfisher is angiotensin converting enzy me of only 6 airlines in the stadium to shake a 5 star rating from Sky tax, 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 run 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, sleeper stools with let outable footrests, and three-course gourmet cuisine.HISTORYKingfisher Airlines is a adjuvant of the UB Group, one of the largest beverage companies in the military man. The branding of the airline is linked to that of Kingfisher Beer, Indias 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 h igh fibre merchandise with personal in flight go intotainment in both situation custom interior designs for each aircraft valet assistance at airports and complimentary hot food and beverages.The airline initially operated a single(a) bod service but subsequently introduced a highly acclaimed starting signal come apart, allowing it to compete with blue jet Airways for the high yield corporate market. In admission to its A320 family aircraft utilize on interior(prenominal) routes, Kingfisher Airlines also operates ATR-72 turboprops on regional sectors. infra current Indian regulations, which require airlines to operate 5 years domestic service before being granted multinational rights, Kingfisher give non be permitted to operate eitherplaceseas 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 middling over devil years, Kingfisher Airlines has achieved a market shargon of 10% and has one of the intimately aggressive expansion plans of all Indian attack aircraft toters during 2007. In Jun-07, it dramatically increased its influence in the market with the acquisition of a 26% sh atomic number 18holding in Indias largest LCC, Air Dec brook, 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 argon projecting annual cost savings of over USD70 million. There leave also be greater coordination in the midst of the two brands, with Air Deccan to adopt the Kingfisher image in its logo and to switch to a red, rather than a blue color scheme.The combined Kingfisher/Deccan assemblage has a market shargon of just over 30% and a product range spanning from the outlay-sensitive, first-time flyer, to the high yield business traveler, making I spirit of the key pillars of the airline industry. The airline which st arted its operation on 9th May 2005, quest the lease of 4 Airbus A320 aircraft. As of July 2007, Kingfisher operates only on domestic routes even it has announced plans to start flights to the USA with Airbus A380 aircraft.The airline isowned by the United Beverages Group under the leadership of Vijay Mallya (which also owns the popular Indian beer of the a same(p)(p) shit). The airline promises to suit the needs of air travelers 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 goods will be provided by On Air starting 2008 for long haul flights.VISIONThe Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel experience to all our guests. VALUES rubber eraserThis is our overriding value. In our line of business, there is no compromise. ServiceWe are all in the hospitality business we mustine ss always stress to serve our guests and gain their trust, goodwill and loyalty.HappinessWe seek to build an organization with people who choose to be happy, and will exertion to influence our guests and co-workers to be happy too. TeamworkWe will succeed or go against as a team. Each one of us must approve our colleagues regardless of their rank, and we must work to catch up withher to ensure our mutual success. officeEach one of us will be held accountable for the productive execution of our du constipates, commitments and obligations, and we will strive to lead by example.MISSIONKingfisher Airlines will have Fly the Good Times approach and this will bound in the experience we will offer to passengers. SERVICESDOMESTICKingfisher lowThe domestic Kingfisher freshman adorn have a 48 progress seat pitch and a 126 degree seat recline.There are laptop and mobile phone chargers on both seat. Passengers can gain of the latest international risingspapers and clips. There is also a steam iron service on board Kingfisher First cabins. Every seat is furnish with a personalized IFE system with AVOD which offers a wide range of Hollywood and Bollywood movies, English andHindi TV programmers, 16 live TV conduct and 10 bring of Kingfisher Radio. Passengers also get BOSE affray cancellation headphones.Domestic Kingfisher First is only available on selected Airbus A320 family aircraft. Kingfisher ClassThe domestic Kingfisher Class has 32-34 inch seat pitch.Every seat is equipped with personal IFE systems with AVOD on-board the Airbus A320 family aircraft. As in Kingfisher First, passengers can access movies, English and Hindi TV programmers, a a couple of(prenominal) live TV channels powered by Dish TV, and Kingfisher Radio.The screen is controlled by a controller-console on the seat armrest. Ear cup headphones are provided free of cost to all passengers. The default channel shows, alternating every few seconds, the aero planes ground speed, outside tempe rature, altitude, distance and time to destination, the position of the aircraft on a graphical map, and one or to a greater extent advertisements. Passengers are served meals on most flights. Before take-off, passengers are served feeding bottled lemonade.Economy var. meal on-board a Kingfisher Airlines domestic flight. Kingfisher RedAfter Kingfisher Airlines acquired Air Deccan, its name was alterationd to Simplify Deccan and subsequently to Kingfisher Red. Kingfisher Red is Kingfisher Airlines low-cost fall apart on domestic routes. A circumscribed edition of Cine Blitz magazine is the only reading material provided.Kingfisher Airlines is the first airline in India to extend its King inn 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. world-wideKingfisher FirstThe international Kingfisher First has full phas e of the moon flat-bed seats with a one hundred eighty degree recline, with a seat pitch of 78 inches, and a seat width of 20-24.54 inches.32 Passengers are given Merino wool blankets, a Salvatore Ferragamo toilet articles 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 touch screen 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 espouse their favorite TV programmers live. There is also a collection of interactive games, a jukebox with customizable playlists and Kingfisher Radio. Passengers are given BOSE noise cancellation headphones.The service on board the Kingfisher First cabins includes a social knowledge base comprising a full-fledged bar staffed with a bartender, a break-out seatin g flying field 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 amply flat bed and an air-hostess making the bed when the passenger is ready to sleep. twain Kingfisher First and Kingfisher telles feature mood lighting on the Airbus A330-200 with light schemes corresponding to the time of sidereal day and flight position. Kingfisher ClassThe 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 meals.Each Kingfisher Class seat has a 10.6 inch widescreen personal television with AVOD touch screen controls. The IFE is equivalent to that of the international Kingfisher First class. It can also be controlled by a detachable remote-control console fitted in the armrest. This device can be used to contr ol the IFE, reading-lights, play games and even has a credit-card swipe for shopping on Kingfishers Air Boutique. It also has a facility for direct text-messages, though the service isnt provided by Kingfisher. CARGOKingfisher XpressKingfisher Xpress is a modernistic Door-to-Door cargo delivery service from Kingfisher Airlines. Kingfisher Xpress same day service will be Indiasfirst and only same day delivery by air service. In-flight entertainmentKingfishers IFE system is the Thales peak Series i3000/i4000 on-board the Airbus A320 family aircraft, and Thales clear up Series i5000 on-board the Airbus A330 family aircraft provided by the France-based Thales Group.Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems on every seat even on domestic flights. All passengers were given a welcome kit consisting of goodies such as a pen, facial tissue and headphones to use with the IFE system. Now, passengers of Kingfisher class are not given welcome kits but, as mentioned earlier, a complimentary bottle of lemonade and earphones for use with the IFE are still given.The in flight magazines are special editions of magazines owned by Mallyas media publishing house (VJM Media) viz. Hi Blitz for domestic flights and Hi Living for international flights. Initially, passengers were able to watch only recorded TV programming on the IFE system, but by and by an alliance was formed with Dish TV to provide live TV in-flight.34 And in a marked departure from tradition, Kingfisher Airlines decided to have an on-screen prophylactic demonstration using the IFE system however the conventional safety instruct by the flight attendants still exists on many flights. King ClubThe 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 modus vivendi businesses. There are four take aims in the scheme Red, silver g rey, Gold and atomic number 78 levels. Members can redeem points for over a number of schemes. Platinum, Gold and eloquent members enjoy access to the Kingfisher Lounge, priority check-in, excess baggage allowance, bonus miles, and 3 Kingfisher First heave vouchers for Gold membership. Platinum members get 5 upgrade vouchers. Kingfisher LoungeKingfisher Lounges are offered to Kingfisher First passengers, along with King Club Silver and King Club Gold members. Lounges are located in Bangalore internationalistic aerodromeChennai multinational AirportChhatrapati Shivaji worldwide Airport (Mumbai)Cochin International Airport (Kochi)Indira Gandhi International Airport (Delhi)London Heathrow Airport networkaji Subhash Chandra Bose International Airport (Kolkata)Rajiv Gandhi International Airport (Hyderabad)However, note that the airline has suspended operation in London, Kochi, Kolkata and Hyderabad.AWARDS AND ACHIEVEMENTSKingfisher Airlines frequent flyer programme, King Club has wo n Top Honors at the 21st Annual Freddie lay outs in the Japan, Pacific, Asia and Australia region. King Club has won the Freddie Awards 2008 in the following categories outstrip Bonus Promotion outgo Customer ServiceBest Member Communications (First Runner-up)Best Award Redemption (First Runner-up)Best Elite Level (Second Runner-up)Best Website (Second Runner-up)Program of the form (Second Runner-up)Kingfisher Airlines has received three global awards at the Skytrax World Airline Awards 2010 Named Best Airline In India / Central Asia Best Cabin Crew Central Asia. Kingfisher RED named Best Low Cost Airline in India / Central Asia. NDTV Profit lineage Leadership Award for Aviation.Indias only 5 Star airline, rated by Skytrax and 6th airline in the world. Rated Indias Second Buzziest strike out 2008 by The crisscross Reporter. Ranked amongst Indias Top Service Brands of 2008 by discard Magazine. Voted as Indias Favorite Airline.Rated as Asia Pacifics Top Airline Brand.Brand Lea dership Award.Economic Times Avaya Award 2006 for virtue in Customer Responsiveness. Indias No. 1 Airline in customer satisfaction by Business World. Ratedamongst Indias most prize companies by Business World. Rated amongst Indias 25 Innovative Companies by computer programme man Media in 2006. The Best Airline and Indias Favorite common carrier in a Survey conducted by IMB for The Times of India. Best hot Domestic Airline for Excellent Services and Cuisine by Pacific Area Travel Writers Association (PATWA). Service Excellence 2005-2006 for a youthful Airline by Skytrax.Ranked third in the survey on Indias Most Successful Brand launch of 2005 under the Brand Derby Survey conducted by Business Standard. Busiest Brands of 2005 by agency fans and The Brand Reporter. Rated amongst the Top Ten Internet Advertisers by Yahoo.Rated amongst the top ten in the Best Television Commercial Jingles by NDTV. Best New Airline of the Year Award for 2005 by Centre for Asia Pacific Aviation (CAP A) Award in the Asia-Pacific and Middle East region. Listed in the top 100 most trusted brand in The Brand Trust Report.POLITICAL FACTORS1) subject sky policy2) FDI limits 100% for Greenfield airports74% for the existing airports100% by special permission49% for airlinesECONOMICAL FACTORS1) Contribution to the Indian economy.2) boost cost of fuel.3) Investment in the sector of zephyr.4) The ontogenesis of the middle income group family affects the aviation sector.SOCIAL FACTORS1) knowledge of cities leads to better services and airports. 2) Employment opportunities.3) Safety regulations.4) The status symbol attached to a plane travel.TECHNOLOGICAL FACTORS1) The growth of e-commerce and e-ticketing.2) Satellite based navigation system.3) Modernisation and privatisation of the airports.4) Developing green field airports with private sector for example in Bangalore the airport corporation limited. environmental FACTORS1) The increase in the global warming.2) The sudden and unexpe cted behavior of the aviation and the dependency on whether. 3) Shortage of the infrastructural capacity4) Tourism saturation.LEGAL FACTORS1) FDI limits2) reversible treaties3) Airlines acquisitions and the leasing cost.STRENGTHSStrong brand value and reputation in the minds of customers. tone of voice of the service. avenue rationalization.First airline to have a new fleet of airbuses.Quality and continuous innovation.WEAKNESSESStill a not in profit organization. towering ticket price.Facing a tough competition from competitors.OPPORTUNITIESThe expanding tourism industry.The non penetrated domestic market.International market.Untapped air cargo market.THREATSCompetitorsInfrastructure issues.Fuel price hike.Tourism saturationEconomic slowdown.Promotions and sponsorship declining.STP ANALYSISSEGMENTATION geographical RegionDensitySocial ClassesIncome LevelTARGETINGKingfisher Firstcompany executivesKingfisher Classlower middle, upper middle, lower upper segmentPOSITIONINGmodus vive ndiBenefitsQualityPsPRODUCTFleet SizeAircraftsInternational ForayPROMOTIONSAdvertisementsMagazine and Newspaper adsExposure at non-corporate event booking in International Air showsEndorsing celebrities likeKatrina Kaif and Yana GuptaPRICEDynamic pricing model Multiple fare levelsUniform rulesNo hidden restrictions.price model 8 different levelsDiscounts provided from time to timePEOPLE mainstay of the brandExtensive trainingsHospitality industry and consider their customer as guestsInterpersonal skills, aptitude, and service knowledgePLACEOnline Booking www.flykingfisher.comOnline Booking Yatra.com, MakeMyTrip.com, ezeego1.com confidence Cards & Debit Cards PaymentSMS / CallOutlets in every major city and at every airport across the province PHYSICAL EVIDENCEPersonal valetsExclusive lounge spaceHi BlitzGourmet cuisineworld class cabin combination5 trendy video- Fun TV 10 music send -Kingfisher RadioPROCESSBooking the ticket online booking or tele-booking or from any of the kingfisher outletCOMPETITORSCompany sales(Rs.Million) modernPrice variegate (%)P/E Ratio pamperketCap.(Rs.Million)52-WeekHigh/LowJet Airways (I)127768.30305.856.380.0026405.26518/167Spice Jet28795.0829.508.660.0014288.3243/15Kingfisher Airlines62333.7912.952.780.008747.0844/13 orbiculate Vectra Helico2315.759.70-0.100.00135.8026/9Jagson Airlines97.254.102.500.0082.6910/3MARKET SHARE wampum & LOSS STATEMENT violate11 featherbed10Mar09Mar08Jun0712 Months12 Months12 Months12 Months12 MonthsINCOMESales Turnover6,233.385,067.925,269.171,456.281,800.21Excise Duty0.000.000.000.000.00NET SALES6,233.385,067.925,269.171,456.281,800.21 separate Income0.000.000.000.000.00 native INCOME6,422.585,140.005,863.601,504.921,830.19EXPENDITUREManufacturing Expenses3,466.832,911.813,715.471,297.511,597.06Material Consumed56.6940.8951.1943.7945.94Personal Expenses680.54689.38825.42244.96247.72Selling Expenses659.07687.02683.8285.0017.90Administrative Expenses426.21418.41546.47110.20154.00Expenses Capital ised0.000.000.000.000.00Provisions do0.000.000.000.000.00 essential EXPENDITURE5,289.344,747.515,822.361,781.462,062.61 operational Profit944.04320.41-553.19-325.17-262.40EBITDA1,133.24392.4941.24-276.54-232.42Depreciation203.02162.80133.2018.2817.67Other Write-offs38.0154.4938.3918.3126.25EBIT892.20175.20-130.35-313.13-276.34sake2,340.322,245.592,029.33434.44466.05EBT-1,448.12-2,070.39-2,159.68-747.57-742.39Taxes-455.35-700.00-546.38-494.453.40Profit and Loss for the Year-992.76-1,370.39-1,613.30-253.12-745.79Non Recurring Items-107.62-405.384.4764.98312.12Other Non interchange Adjustments72.9931.280.00-0.914.09Other Adjustments0.0097.270.000.970.00REPORTED PAT-1,027.40-1,647.22-1,608.83-188.14-419.58KEY ITEMSPreference Dividend0.000.000.000.000.00Equity Dividend0.000.000.000.000.00Equity Dividend (%)0.000.000.000.000.00 destinys in Issue (Lakhs)4,977.792,659.092,659.091,357.991,354.70EPS Annualised (Rs)-20.64-61.95-60.50-18.47-30.97CASHFLOW STATEMENTParticularsMar11Mar10Mar09Ma r08Jun07Profit Before Tax-1,520.78-2,417.92-2,155.21-682.59-416.18Net Cash Flows from Operating activity-2.23-1,665.09-645.78-541.52-552.58Net Cash Used in Investing Activity38.05235.13206.6313.82119.48Net Cash Used in Financing Activity-81.721,464.55290.11-9.23993.68Net Inc/Dec in Cash and Cash Equivalent-45.9034.60-149.04-536.93560.57Cash and Cash Equivalent Beginning of the Year206.47171.87320.91817.05256.47Cash and Equivalent End of the Year160.57206.47171.87280.12817.05BALANCE SHEETParticularsMar11Mar10Mar09Mar08Jun07Liabilities12 Months12 Months12 Months12 Months12 MonthsShare Capital1,053.83370.39371.02145.89135.47Reserves & Surplus-4,005.02-4,268.84-2,496.3652.99249.23Net Worth-2,951.19-3,898.45-2,125.35198.87384.70Secured Loans5,184.534,842.432,622.52592.38716.71Unsecured Loans1,872.553,080.173,043.04342.00200.00TOTAL LIABILITIES4,105.884,024.153,540.211,133.261,301.41AssetsGross Block2,254.262,048.141,891.80322.33340.77(-) Acc. Depreciation682.37493.62316.2943.5533.74Ne t Block1,571.891,554.511,575.52278.78307.03Capital flirt in Progress.673.35980.601,630.95346.25357.62Investments.0.050.050.050.000.41Inventories187.65164.88147.2548.6461.62Sundry Debtors440.53322.49229.8427.1635.24Cash And Bank252.36206.47171.87280.12817.05Loans And Advances5,380.194,604.313,640.42832.48149.76Total Current Assets6,260.735,298.134,189.371,188.411,063.68Current Liabilities4,463.863,908.033,814.63687.31449.15Provisions62.1146.7745.559.526.94Total Current Liabilities4,525.973,954.803,860.18696.83456.09NET CURRENT ASSETS1,734.761,343.34329.19491.58607.59Misc. Expenses125.84145.644.5116.6428.75TOTAL ASSETS (A+B+C+D+E)4,105.884,024.153,540.211,133.261,301.41FUTURE STRATEGIESMarket PenetrationCan tie up with Corporate and Government Companies by Providing Unique Travel Solutions for captain and Personal Use. Can implement programs implemented by South westerly Airlines to penetrate market. Product DevelopmentSeek additional distribution channels such as more tie ups and Col repelation. Collaboration with international carriers, isobilateral discussions over seats and code sharing between the carriers. Market DevelopmentSpecial offerings for first time fliers.Try to find out new customer group such as old-retired persons. DiversificationCan enter into other Transport Services like Bus Services between Major Cities and Other Services.PROBLEM IDENTIFICATIONCurrent Indian scenario Air travelFor majority of people preference-No frills low cost airlines Kingfisher competing with both the no frills low cost airlines as well as those with frills. Three unique classes of service Kingfisher First (Business class)Kingfisher Class (Premium economy)Kingfisher Red (Low fare)Current segmentation based on social class & income levelSocial classes which use full carrier services and those which use first class services of the railways Income level Low cost carrier for those who travel by first class railwayProblem with positioningBrand relates to LifestyleRECO MMENDATIONSNeeds to change brand perceptionCurrently perceived as Lifestyle guidewordRed color of crew Reflects RoyaltyOver dependence on brand image of Mr. MallayaJet airways Reflects professionalismAdvertisement reflecting Value for Money throw operational efficiencies through alliances as with Jet Airways LeverageUponNew fleet, unusual flight serviceInnovative ideas-LIVE TV with 16 channelsAir Boutique, in Kingfisher AirlinesA joint promotion, i.e. using MakeMyTrip services and flying Kingfisher Airlines. By partnering with Kingfisher Airlines, further convenience in travel is offered at no extra cost- Added value Fleet size expansionSUGGESTIONReduce the labor costSimplify the flight operationsOffer more liquid pricingGet smart on fuelThe process of getting spice jet if complete would make kingfisher the largest player in the aviation industry Different modes of pricing should be taken care of. outcomeAfter 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 domain 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 gelid role in making various facets of India popular with the people of the world and acting as the countrys 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 qualifying to be in the list of best services providers in approaching years.