analysisofkingfisherairlines-120725002354-phpapp01.docx

8/11/2019 analysisofkingfisherairlines-120725002354-phpapp01.docx

1/31

A PROJECT REPORT ON

SUBMITTED BY,

DEBASIS PATRA

REGISTRATION No-11A6247007

PGDM-AVIATION MANAGEMENT

REGIONAL COLLEGE OF MANAGEMENT


2/31

2

CERTIFICATE

This is to certify that the project work

ANALYSIS OF KINGFISHER AIRLINESis

a bonafide record of work done by Mr. Debasis

Patra under my guidance in partial fulfillment of

the requirements for the programme in PGDM inAviation.

Prof. S. N. Mishra

Head

PGDM- Aviation Management


3/31

3

ACKNOWLEDGEMENT

I take immense pleasure in thanking Prof. S. N. Mishra,

Head (Aviation Management) for having permitted me to carry

out this project work.

Finally, yet importantly, I would like to express my heartfelt

thanks to my beloved MOTHER for her blessings, my friends,

my seniors for their help and wishes for the successful

completion of this project.

DEBASIS PATRA


4/31

4

INDEX

INTRODUCTION

HISTORY

VISION, VALUES, MISSION

SERVICES

AWARDS AND ACHIEVEMENTS

PESTEL ANALYSIS

SWOT ANALYSIS

STP ANALYSIS

7 Ps

COMPETITORS

MARKET SHARE

PROFIT & LOSS STATEMENT

CASHFLOW STATEMENT

BALANCE SHEET

FUTURE STRATEGIES

PROBLEM IDENTIFICATION RECOMMENDATIONS

SUGGESTION

CONCLUSION


5/31


6/31


7/31

7

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 color 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 I tone 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 bythe 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 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 Services will

be provided by On Air starting 2008 for long haul flights.


8/31

8

VISION

The Kingfisher Airlines family will consistently deliver a

safe, value-based and enjoyable travel experience to all our guests.

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 organization with people who choose to be

happy, and will Endeavour to influence our guests and co-workers tobe 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.


9/31

9

MISSION

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

and this will reflect in the experience we will offer to passengers."

SERVICES

DOMESTIC

Kingfisher First

The domestic Kingfisher First seats have a 48 inch seat pitchand a 126 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

programmers, 16 live TV channels and 10 channels of KingfisherRadio. Passengers also get BOSE noise cancellation headphones.

Domestic Kingfisher First is only available on selected

Airbus A320 family aircraft.

Kingfisher Class

The 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 few 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,


10/31

10

the aero planes ground speed, outside temperature, altitude, distance

and time to destination, the position of the aircraft on a graphical map,

and one or more advertisements.

Passengers are served meals on most flights. Before take-off,

passengers are served bottled lemonade.

Economy class meal on-board a Kingfisher Airlines

domestic flight.

Kingfisher Red

After Kingfisher Airlines acquired Air Deccan, its name waschanged to Simplify Deccan and subsequently to Kingfisher Red.

Kingfisher Red is Kingfisher Airline's low-cost class on domestic

routes. A special edition of Cine 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.

INTERNATIONAL

Kingfisher First

The international Kingfisher First has full flat-bed seats witha 180 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 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 touch screen controls and offers 357


11/31

11

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 TVprogrammerslive. There is

also a collection of interactive games, a jukebox with customizableplaylists 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 meals.

Each Kingfisher Class seat has a 10.6 inch widescreen

personal television with AVOD touch screen controls. The IFE is

similar 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 control the IFE, reading-lights,

play games and even has a credit-card swipe for shopping on

Kingfisher's 'Air Boutique'. It also has a facility for sending text-

messages, though the service isn't provided by Kingfisher.


12/31

12

CARGO

Kingfisher Xpress

Kingfisher Xpress is a new Door-to-Door cargo delivery

service from Kingfisher Airlines. Kingfisher Xpress same day service

will be India's first and only same day delivery by air service.

In-flight entertainment

Kingfisher's IFE system is the Thales Top Series

i3000/i4000 on-board the Airbus A320 family aircraft, and Thales

Top 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 Mallya's 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 later an alliance

was formed with Dish TV to provide live TV in-flight.[34] And in amarked departure from tradition, Kingfisher Airlines decided to have

an on-screen safety demonstration using the IFE system; however the

conventional safety briefing by the flight attendants still exists on

many flights.

King Club

The Frequent-flyer program of Kingfisher Airlines is calledthe King Club in which members earn King Miles every time they fly


13/31


14/31

14

AWARDS AND ACHIEVEMENTS

Kingfisher Airlines frequent flyer programme, King Club has

won Top Honors at the 21st Annual Freddie Awards in theJapan, Pacific, Asia and Australia region.

King Club has won the Freddie Awards 2008 in the following

categories:

Best Bonus Promotion

Best Customer Service

Best 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 Year (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 Business Leadership Award for Aviation.India's only 5 Star airline, rated by Skytrax and 6th airline in the

world.

Rated India's Second Buzziest Brand 2008 by The Brand

Reporter.

Ranked amongst India's Top Service Brands of 2008 by Pitch

Magazine.

Voted as India's Favorite Airline.Rated as Asia Pacific's Top Airline Brand.


15/31

15

Brand Leadership Award.

Economic Times Avaya Award 2006 for Excellence in

Customer Responsiveness.

India's No. 1 Airline in customer satisfaction by BusinessWorld.

Rated amongst India's most respected companies by Business

World.

Rated amongst India's 25 Innovative Companies by Plan man

Media in 2006.

The Best Airline" and "India's Favorite Carrier' in a Survey

conducted by IMB for The Times of India.Best New Domestic Airline for Excellent Services and Cuisine

by Pacific Area Travel Writers Association (PATWA).

Service Excellence 2005-2006 for a New Airline by Skytrax.

Ranked third in the survey on India's 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 (CAPA) Award in the Asia-Pacific and

Middle East region.

Listed in the top 100 most trusted brand in The Brand TrustReport.


16/31

16

POLITICAL FACTORS

1) Open sky policy

2) FDI limits: 100% for Greenfield airports

74% for the existing airports

100% through special permission

49% for airlines

ECONOMICAL FACTORS

1) Contribution to the Indian economy.

2) Rising cost of fuel.

3) Investment in the sector of aviation.

4) The growth of the middle income group family affects the

aviation sector.


17/31

17

SOCIAL FACTORS

1) Development of cities leads to better services and airports.

2) Employment opportunities.

3) Safety regulations.

4) The status symbol attached to a plane travel.

TECHNOLOGICAL FACTORS

1) 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 FACTORS

1) The increase in the global warming.

2) The sudden and unexpected behavior of the atmosphere and the

dependency on whether.

3) Shortage of the infrastructural capacity

4) Tourism saturation.

LEGAL FACTORS

1) FDI limits

2) Bilateral treaties

3) Airlines acquisitions and the leasing cost.


18/31

18

STRENGTHS

Strong brand value and reputation in the minds of customers.

Quality of the service.

Route rationalization.

First airline to have a new fleet of airbuses.

Quality and continuous innovation.

WEAKNESSES

Still a not in profit organization.

High ticket pricing.

Facing a tough competition from competitors.


19/31

19

OPPORTUNITIES

The expanding tourism industry.

The non penetrated domestic market.

International market.

Untapped air cargo market.

THREATS

Competitors

Infrastructure issues.

Fuel price hike.

Tourism saturation

Economic slowdown.

Promotions and sponsorship declining.


20/31

20

STP ANALYSIS

SEGMENTATION

Geographic Region

Density

Social Classes

Income Level

TARGETING

Kingfisher First

company executives

Kingfisher Class

lower middle, upper middle, lower upper

segment

POSITIONING

Lifestyle

Benefits

Quality


21/31

21

Ps

PRODUCT

Fleet Size

Aircrafts

International

Foray

PROMOTIONS

Advertisements

Magazine and Newspaper

ads

Exposure at non-corporate

event

Participation in

International Air shows

Endorsing celebrities like

Katrina Kaif and Yana

Gupta


22/31

22

PRICE

Dynamic pricing model -

Multiple fare levels

Uniform rules

No hidden restrictions.

Pricing model - 8 different

levels

Discounts provided from time

to time

PEOPLE

Backbone of the

brand

Extensive trainings

Hospitality industryand consider their

customer as guests

Interpersonal skills,

aptitude, and service

knowledge

PLACE

Online Booking - www.flykingfisher.com

Online Booking - Yatra.com, MakeMyTrip.com,

ezeego1.com

Credit Cards & Debit Cards Payment

SMS / Call
http://www.flykingfisher.com/http://www.flykingfisher.com/http://www.flykingfisher.com/


23/31

23

Outlets in every major city and at every airport

across the country

PHYSICAL EVIDENCE

Personal valets

Exclusive lounge

space

Hi! Blitz

Gourmet cuisine

world class cabin

crew

5 trendy video-

Fun TV; 10 music

stations -

Kingfisher Radio

PROCESS

Booking the ticket - online booking or tele-booking

or from any of the kingfisher outlet


24/31


25/31

25

PROFIT & LOSS STATEMENT

Mar'11 Mar'10 Mar'09 Mar'08 Jun'07

12 Months 12 Months 12 Months 12 Months 12 Months

INCOME:

Sales Turnover 6,233.38 5,067.92 5,269.17 1,456.28 1,800.21

Excise Duty 0.00 0.00 0.00 0.00 0.00

NET SALES 6,233.38 5,067.92 5,269.17 1,456.28 1,800.21

Other Income 0.00 0.00 0.00 0.00 0.00

TOTAL INCOME 6,422.58 5,140.00 5,863.60 1,504.92 1,830.19

EXPENDITURE:

Manufacturing Expenses 3,466.83 2,911.81 3,715.47 1,297.51 1,597.06

Material Consumed 56.69 40.89 51.19 43.79 45.94

Personal Expenses 680.54 689.38 825.42 244.96 247.72

Selling Expenses 659.07 687.02 683.82 85.00 17.90

Administrative Expenses 426.21 418.41 546.47 110.20 154.00

Expenses Capitalised 0.00 0.00 0.00 0.00 0.00

Provisions Made 0.00 0.00 0.00 0.00 0.00

TOTAL EXPENDITURE 5,289.34 4,747.51 5,822.36 1,781.46 2,062.61

Operating Profit 944.04 320.41 -553.19 -325.17 -262.40

EBITDA 1,133.24 392.49 41.24 -276.54 -232.42

Depreciation 203.02 162.80 133.20 18.28 17.67

Other Write-offs 38.01 54.49 38.39 18.31 26.25

EBIT 892.20 175.20 -130.35 -313.13 -276.34

Interest 2,340.32 2,245.59 2,029.33 434.44 466.05

EBT -1,448.12 -2,070.39 -2,159.68 -747.57 -742.39

Taxes -455.35 -700.00 -546.38 -494.45 3.40


26/31

26

Profit and Loss for the Year -992.76 -1,370.39 -1,613.30 -253.12 -745.79

Non Recurring Items -107.62 -405.38 4.47 64.98 312.12

Other Non Cash Adjustments 72.99 31.28 0.00 -0.9 14.09

Other Adjustments 0.00 97.27 0.00 0.97 0.00

REPORTED PAT -1,027.40 -1,647.22 -1,608.83 -188.14 -419.58

KEY ITEMS

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00

Shares in Issue (Lakhs) 4,977.79 2,659.09 2,659.09 1,357.99 1,354.70

EPS - Annualised (Rs) -20.64 -61.95 -60.50 -18.47 -30.97

CASHFLOW STATEMENT

Particulars Mar'11 Mar'10 Mar'09 Mar'08 Jun'07

Profit Before Tax -1,520.78 -2,417.92 -2,155.21 -682.59 -416.18

Net Cash Flows from Operating Activity -2.23 -1,665.09 -645.78 -541.52 -552.58

Net Cash Used in Investing Activity 38.05 235.13 206.63 13.82 119.48

Net Cash Used in Financing Activity -81.72 1,464.55 290.11 -9.23 993.68

Net Inc/Dec in Cash and CashEquivalent -45.90 34.60 -149.04 -536.93 560.57

Cash and Cash Equivalent - Beginning ofthe Year

206.47 171.87 320.91 817.05 256.47

Cash and Equivalent - End of the Year 160.57 206.47 171.87 280.12 817.05


27/31

27

BALANCE SHEETParticulars Mar'11 Mar'10 Mar'09 Mar'08 Jun'07

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 1,053.83 370.39 371.02 145.89 135.47

Reserves & Surplus -4,005.02 -4,268.84 -2,496.36 52.99 249.23

Net Worth -2,951.19 -3,898.45 -2,125.35 198.87 384.70

Secured Loans 5,184.53 4,842.43 2,622.52 592.38 716.71

Unsecured Loans 1,872.55 3,080.17 3,043.04 342.00 200.00

TOTAL LIABILITIES 4,105.88 4,024.15 3,540.21 1,133.26 1,301.41

Assets

Gross Block 2,254.26 2,048.14 1,891.80 322.33 340.77

(-) Acc. Depreciation 682.37 493.62 316.29 43.55 33.74

Net Block 1,571.89 1,554.51 1,575.52 278.78 307.03

Capital Work in Progress. 673.35 980.60 1,630.95 346.25 357.62

Investments. 0.05 0.05 0.05 0.00 0.41

Inventories 187.65 164.88 147.25 48.64 61.62

Sundry Debtors 440.53 322.49 229.84 27.16 35.24

Cash And Bank 252.36 206.47 171.87 280.12 817.05

Loans And Advances 5,380.19 4,604.31 3,640.42 832.48 149.76

Total Current Assets 6,260.73 5,298.13 4,189.37 1,188.41 1,063.68

Current Liabilities 4,463.86 3,908.03 3,814.63 687.31 449.15

Provisions 62.11 46.77 45.55 9.52 6.94

Total Current Liabilities 4,525.97 3,954.80 3,860.18 696.83 456.09

NET CURRENT ASSETS 1,734.76 1,343.34 329.19 491.58 607.59

Misc. Expenses 125.84 145.64 4.51 16.64 28.75

TOTAL ASSETS (A+B+C+D+E) 4,105.88 4,024.15 3,540.21 1,133.26 1,301.41


28/31

28

FUTURE STRATEGIES

Market Penetration

Can tie up with Corporate and Government Companies by

Providing Unique Travel Solutions for Professional and Personal Use.

Can implement programs implemented by South West Airlines to

penetrate market.

Product Development

Seek additional distribution channels such as more tie ups and

Collaboration.

Collaboration with international carriers, bilateral 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.


29/31

29

PROBLEM IDENTIFICATION

Current Indian scenario : Air travel

For 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 :

o Kingfisher First (Business class)

o Kingfisher Class (Premium economy)

o Kingfisher Red (Low fare)

Current segmentation based on social class & income level

Social 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 railway

Problem with positioning

Brand relates to Lifestyle


30/31

30

RECOMMENDATIONS

Needs to change brand perception

Currently perceived as Lifestyle slogan

Red color of crew :Reflects Royalty

Over dependence on brand image of Mr. Mallaya

Jet airways : Reflects professionalism

Advertisement reflecting Value for Money

Gain operational efficiencies through alliances as with Jet

Airways

Leverage Upon:

New fleet, Unmatched flight service

Innovative ideas-LIVE TV with 16 channels

Air Boutique, in Kingfisher Airlines

A 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 expansion


31/31

SUGGESTION

Reduce the labor cost

Simplify the flight operations

Offer more transparent pricing

Get smart on fuel

The process of acquiring spice jet if complete would make

kingfisher the largest player in the aviation industry

Different modes of pricing should be taken care of.

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 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 going to be in the list of best services providers in coming

years.

Date post:	02-Jun-2018
Category:	Documents
Upload:	vaibhav-prasad
View:	219 times
Download:	0 times

analysisofkingfisherairlines-120725002354-phpapp01.docx

Documents