IILM

Project
On
Kingfisher
Airlines

Submitted to - From
Brijesh Kumar Singh
PGP20095884
Contents
1. Introduction..................................................................................................................................2
1.1 History...................................................................................................................................2
1.2 Today.....................................................................................................................................2
1.3 Indian Airports.......................................................................................................................3
1.4 Infrastructure..........................................................................................................................3
1.5 FDI.........................................................................................................................................4
1.6 Aviation Regulator.................................................................................................................4
2. Introductions to Kingfisher Airlines............................................................................................5
Vijay Mallya................................................................................................................................6
Characteristics of Vijay Mallya...................................................................................................6
3. Present Situation of Kingfisher Airlines......................................................................................7
3.1Strategic Planning...................................................................................................................7
3.2 Organizational Structure........................................................................................................7
3.3 Human Resource Management..............................................................................................8
3.4 Marketing & Sales Promotion...............................................................................................8
3.5 Pricing of Products................................................................................................................9
3.6 Location.................................................................................................................................9
3.7 Planning for Growth............................................................................................................10
4. Major Players.............................................................................................................................11
5. Competitors................................................................................................................................12
New players into the market......................................................................................................13
6. SWOT analysis for Kingfisher Airlines....................................................................................14
7. Industrial life cycle....................................................................................................................15
8. Porter’s 5 Forces for Kingfisher Airlines..................................................................................16
9. Position of Kingfisher Airlines..................................................................................................18
10. Focused Differentiation (Kingfisher Airlines).........................................................................19
11. Strategies adopted by Kingfisher Airlines...............................................................................20
1. Introduction

1.1 History

The birth of aviation in India began happened on Feb 18, 1911 when Henri Piquet flew a
Humber biplane. In 1932, JRD Tata, a visionary launches India’s first scheduled airline, Tata
Airline and also piloted its first inaugural fight. In early 1948, a joint sector company, Air India
International Ltd. was established by the Government of India and Air India (earlier Tata Airline)
with a capital of Rs 2 crore and a fleet of three Lockheed constellation aircraft. The joint venture
was headed by J.R.D. Tata.

After the Second World War as many as eleven private domestic airlines operated in
India. The supply-demand was not in balance as the Indian aviation market was still in a
fledgling state. Many of these airlines were making heavy losses as a result of which the
government decided to nationalize the airlines by forming one domestic carrier and one
international flag carrier. In 1953 Air-India International (name truncated to Air-India in 1962)
became a public sector corporation along with Indian Airlines Corporation (catering to domestic
and regional routes). Eight erstwhile private airlines were merged to form Indian Airlines Corp.,
namely Deccan Airways, Bharat Airways, Air India, Himalayan Aviation, Kalinga Airlines, Indian
National Airways, Air Services of India and Air-Services India. The fleet was fairly big consisting
of 73 DC-3 Dakotas, 12 Vikings, 3 DC-4s and some other smaller aircraft. (*)

1.2 Today

There has been a marked change in the aviation scenery in India. Whereas prior to 1992
when the two public sector airlines, namely Air-India and Indian Airlines enjoyed a monopoly in
the domestic sector, today a dozen airlines are competing for a market share. The Indian
aviation industry is expanding by leaps and bounds. A slew of low-cost airlines is operating or
will commence operations during the current year. India's main airports are beginning to face
capacity constraints and are in the process of being modernized. Indian airlines have lately
placed a record number of aircraft orders. As an example, ATR received firm orders for 90 new
aircraft in 2005 of which India's (Kingfisher Airlines and Air Deccan) share was 55 per cent.

1.3 Indian Airports

A government controlled body AAI (Airports Authority of India) manages 127 airports in
the country comprising 15 international airports, 7 restricted international airports, 80
domestic airports and 25 enclaves at defiance airfields. Indian airports handled 51.9 million
domestic, 22.4 million international passengers and 1.4 million tons of cargo in the year ended
March 2006. Projected traffic for 2012 is 130 million passengers.

1.4 Infrastructure

The government of India has recognized the need to improve the aviation infrastructure
in the country. Airports account for 40 per cent of India's trade by value and 95 per cent of
international travel to and from India takes place through this mode. According to estimates,
the present infrastructure can support a 20 per cent growth in passenger traffic and 10 per cent
growth in cargo traffic. The ministry of aviation estimates that there is a need for an investment
of Rs 260 - Rs 360 billion. The restructuring of the first phase of Delhi airport is expected to be
completed by 2009 at a cost of Rs 1.9 billion. Expansion and up gradation of the current facility
at Mumbai is already under way. Work has started on a new international airport at Bangalore.
Apart from strengthening of the Hyderabad runway at a cost of Rs 700 million, a new
international airport is also being planned at a cost of Rs 13 billion. The government has also
decided to modernize 25 airports in non-metro cities. Improvement of another 55 airports is
also on the anvil.
1.5 FDI

Forty nine per cent foreign direct investment (FDI) is permitted in financing airport
infrastructure as well as in airport ground handling. The government has recently increased FDI
from 40 per cent to 49 per cent in domestic air carriers. However foreign airlines are not
permitted to pick up a stake directly or indirectly. Non-resident Indians and corporate bodies
are allowed to hold up to 100 per cent equity in domestic airlines.

1.6 Aviation Regulator

The Aviation Ministry plans to table a Bill to establish an independent Civil Aviation
Economic Regulatory Authority (CAERA). The new regulator would be responsible for
formalizing all charges to be levied on operators and ensuring a level playing field for all players.
Its tasks would include fixing of tariff, finalizing parking and user charges, issuing broad
guidelines to service providers, settling disputes among stakeholders in new airports and
arbitrating between various users and service providers, including airlines. Initially the scope of
the regulator would be limited to regulating the economic aspects of Delhi, Mumbai, Bangalore
and Hyderabad airports where there is private participation and AAI is a stakeholder.
Henceforth, the AAI too would be answerable to the new regulator. To start with, CAERA is
expected to be a single-member regulator assisted by technical staff. The Bill seeks to expand
its role in the days ahead. That may become necessary anyway, given the liberalization
initiatives underway in the sector.
2. Introductions to Kingfisher Airlines

Kingfisher Airlines is a wholly owned subsidiary of United Breweries Holdings Limited

(the second largest brewery group in the world), the UB Group's investments holding company.
Kingfisher Airlines has been allocated the IATA airline code of 'IT'. The UB Group is one of India's
largest conglomerates with a turnover of US $2 billion and is the largest Indian manufacturer of
beverage alcohol-beer and liquor. With the foray of UB Group’s birds into the Indian aviation
industry, Kingfisher Airlines has become a force to reckon with. The Airline already has a
number of firsts to its credit. Kingfisher Airlines Limited is an airline company based in
Bangalore, India. This airline was introduced in the market to target the domestic luxury
segment.

Kingfisher Airlines was introduced into the Indian airline market by the Indian Business
Tycoon Dr Vijay Mallya (the owner of United Breweries Limited). It was introduced on 9th May,
2005. It operates in 37 destinations with 218 flights a day. It has a fleet size of 71 and also the
first Indian domestic airlines to introduce the Airbus A380.

Kingfisher is one of only six airlines in the world to have a five-star rating from Skytrax,
along with Asiana Airlines, Malaysia Airlines, Qatar Airways, Singapore Airlines and Cathay
Pacific Airways. Kingfisher airlines have been awarded “The best new airline of the year 2005”.
Presently kingfisher airlines has acquired Air Deccan (one of the major profitable domestic low
cost airline) hence penetrating into the lower segment of the market too.
Vijay Mallya

Vijay Mallya is 51 years old was born in India. Vijay Mallya has amassed an enormous
fortune from inherited and growing. With an estimated current net worth of around $1.5
billion, he is ranked by Forbes (2007) as the 692th-richest person in world. UB group chairman
Vijay Mallya, a trained pilot himself and an avid aviation enthusiast, has delivered an ultimate
product to the Indian aviation industry which is called as Kingfisher Airlines, names after the
popular liquor brand of the UB group (Taking a very different approach again).

Characteristics of Vijay Mallya

Grasp opportunities: Since the Indian aviation industry is a growing market, Vijay Mallya
positively noticed the opportunities of expansion in this industry hence launched Kingfisher
Airlines.

Risk taker: Vijay Mallya did know the strong competition he would have to face from the old
player Jet Airways which could shatter his dreams but he never went on a back foot, instead he
took the risk of launching Kingfisher Airlines with a focused aim of conquering the industry.

Need for achievement: Vijay Mallya is very much known for his different approaches in any
industry which helps him outplay the others. To capture every possible industry has been his
goal from the start of his business career.

Sense of independence: Vijay Mallya likes to be his own boss rather than working in someone’s
shoes. The freedom to play and create a market of his own makes him a successful Tycoon.

Ability to accept change: Though Vijay Mallya makes his own stand in the market but all his
groups have be very much adaptive to the changes in both the external and internal
environment.
3. Present Situation of Kingfisher Airlines

3.1Strategic Planning

 Target Market: The Company has targeted a niche market for its operations. The
company operates in the luxury segment of the Indian aviation industry and leads
the competition with its world class services at competitive prices
 Master strategy to stay ahead of the competition: The Company has adopted
aggressive strategy of customer acquisition through world class services which have
increased their market share and made them a preferred choice within the customer
base.
 Transparency within the organisation: The employees are aware of the company’s
policies and the top management encourages the employees to develop their skills
to help them become the best in the industry
 Potential opportunities for business development: The Company has overtaken its
competitors in order to extend their services in the low cost segment along with the
existing premium class and this has provided them with an opportunity to develop
and extend their operations more profoundly.

3.2 Organizational Structure

 Relationship between individuals and functions: There are specific people for
specific jobs in the company and the company has hired some of the most
experienced people in the industry to help them move towards their goal of
becoming a leading player in the Indian aviation industry
 Job description: There are clearly defined roles in the top and the middle
management and these are complimented by the ground level employees in
 the company. The company has a sound organizational structure which is backed up
by a strong parent company.

3.3 Human Resource Management

 Recruitment: Recruiting quality people is a major plus point of the company. They
hire the best people in the industry and pay them handsomely so that they
contribute to the company’s goals and ambitions to the best of their capabilities.
The crew members of Kingfisher are paid more than their counterparts in any other
airline company in India.
 Training: The Company provides its employees with suitable training and
development opportunities to help them grow and develop their skills which are
unmatched in the industry. This aspect of their training has helped their employees
in creating a sound impression on their customers and they have become a highly
admired airline company in India.
 Performance appraisal: The employees are paid good salaries and performance
based incentives to motivate them even more.

3.4 Marketing & Sales Promotion

 Market Segment: The Company operates in the premium segment of the Indian
domestic segment offering world class flying experience to its customers. The
company is entering into the low cost sector along with the existing premium
segment.
 Mode of Marketing & Sales: The Company does extensive marketing through
celebrities, sponsorship of sports events etc. The sales are mainly done through
offices and websites and through SMS booking.
  Market Research: The Company has done an extensive market research before
entering into the aviation industry and they have specifically targeted a niche
market wherein they are concentrating on the premium segment. They are also
entering into the low cost segment through acquisition of smaller competitors.

3.5 Pricing of Products

 Pricing Strategy: The Company offers world class services at the most competitive
prices. Their services are rated as the best in the Indian aviation industry and their
pricing strategy aims at acquiring customers from their competitors by providing
state of the art services at very competitive prices.
 Break-Even Analysis: The company carefully analyzes its load factors in order to
optimize their investments in the operations and to break even because they are
operating in a very dynamic industry and it is very crucial for them to have a measure
their costs so that they can optimize the profitability of their operations.

3.6 Location

 Accessibility to Market: They have a good accessibility to their target market

through modern fleet of aircraft and the best trained staff in the industry. They are
backed up by a strong parent company so they can afford to spend considerable
sums of money to establish themselves as a major player in the Indian domestic
airline industry.
 Availability of customers: They have earned their customer’s trust with their
services over time and have willing customers ready to use their services again and
again and this has given them an edge over their competitors.
3.7 Planning for Growth

 Advance Planning: They are entering into the low cost sector along with their
existing operations in the premium segment and this offers excellent chances for
future growth as they will have a monopoly in the industry through a well-targeted
product mix wherein they will have a major share of both segments.
 Recurring Crises: Despite their best efforts to become the best airline in the
industry, they have not been able to make considerable profits ever since their
introduction in the industry. They are lagging behind the nearest rival but they are
still trying their best to cope up and become a market leader.
Mission Statement
 We constitute a large, global group based in India. We associate with world leaders in order to
adopt technologies and processes that will enable a leadership position in a large spectrum of
activities.
 We are focused on assuming leadership in all our target markets.
 We seek to be the most preferred employer wherever we operate.
 We recognize that our organization is built around people who are our most valuable asset.
 We will always be the partner of choice for customers, suppliers and other creators of
innovative concepts.
 We will continually increase the long-term value of our Group for the benefit of our
shareholders.
 We will operate as a decentralized organization and allow each business to develop within our
stated values.
 We will be a major contributor to our National Economy and take full advantage of our strong
resource base.
 We commit ourselves to the ongoing mission of achieving Scientific Excellence.

Quality Statement

 Quality leadership is vital to the long-term success of the UB Group in an increasingly

competitive marketplace.
 Building quality into our workplace, products and service is essential to a successful future for
our customers, employees, supplier’s communities and shareholders.
 The UB Group will work to provide products and services that always meet or exceed
expectations
 Management will commit resources and create an environment in which each employee can
contribute skills, talents and ideas to a never-ending process of improvement and innovation in
all aspects of our business.
4. Major Players

Domestic market can be divided into 2 segments:

Premium – Indian, Jet, Sahara, Kingfisher
No Frills – Deccan, Spice jet, GO Air

The Domestic Aviation Market Share

Jet Airways
2% 6% 0%
8% Indian
34%
8% Deccan
Sahara
KingFisher
GoAir
21% SpiceJet
21%
Chartered Flights

AIRLINE CURRENT ACQUISITION INVESTMENT

FLEET PLANS US$ billion
Jet Airways 53 30 by 2012 2.0
Air Deccan 29 79 by 2010 2.7
Kingfisher 11 100 by 2012 4.5
Spice Jet 6 38 by 2010 1.9
Go Air 4 33 by 2008 2.4
Indian 55 50
Achievements
 Kingfisher Airlines has received three global awards at the SKYTRAX World Airline
Awards
- 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"
- awarded to Kingfisher Airlines by NDTV twice in two years
 "India's only 5 Star airline", rated by Skytrax and "6th airline in the world"
to be certified as 5 star airline by Skytrax
 rated India's "Second Buzziest Brand 2008"
by agfaqs! and The Brand Reporter
 ranked amongst India's "Top Service Brands of 2008"
in a ranking by Pitch magazine
 voted as "India's Favourite Airline"
in a survey conducted by an independent research firm with 46% votes compared to
9Ws 23%
 rated as Asia Pacific's "Top Airline Brand"
in a survey conducted by TNS on 'Asia Pacific's Top 1,000 Brands' for 2008
 "Brand Leadership Award"
in the service and hospitality segment against several acclaimed hotels, leading banks
and other airlines
 Economic Times Avaya Award 2006 for Excellence in "Customer Responsiveness"
the prestigious award is presented by the highly acclaimed Business Daily, Economic
Times
 "India's No. 1 Airline in customer satisfaction"
- Business World
 "Rated amongst India's most respected companies"
- Business World
 "Rated amongst India's 25 Innovative Companies"
in a survey conducted by Planman Media in 2006
 "The Best Airline" and "India's Favourite Carrier"
in a Survey conducted by IMB for The Times Of India
 "Best New Domestic Airline for Excellent Services and Cuisine"
Pacific Area Travel Writers Association (PATWA) the biggest travel writers'
organisation, representing members from 70 countries across the globe, that
conducts independent annual surveys across various industries related with Travel
and Tourism in order to select the best in each category
 "Service Excellence 2005-2006 for a New Airline"
 by Skytrax, a UK based specialist global air transport advisor
 "Ranked Third in the survey on India's Most Successful Brand launch of 2005" under
the Brand Derby Survey conducted by India's leading business daily - Business
Standard
 "Buzziest Brands of 2005"
ranked amongst the Top Ten buzziest brands of 2005 and 2006 across product
categories, in the survey conducted by agencyfaqs and The Brand Reporter
 Rated amongst the Top Ten Internet Advertisers
- Yahoo! India
 Rated amongst "the top ten in the Best Television Commercial Jingles"
- NDTV
 "Best New Airline of the Year" Award for 2005
Centre for Asia Pacific Aviation (CAPA) Award in the Asia-Pacific and Middle East
region
5. Competitors
Attributes Kingfisher Jet Airways Indian Spice Jet
Airlines
Price 25% higher than Lower than Lower than Jet Extremely low
Jet Airways and Kingfisher Airways
Indian Airlines
Permission to fly It has It has NA NA
to US
Permission to fly It hasn’t It has NA NA
to UK
IPO Floated Floated Not yet Not yet
EMI scheme It doesn’t It doesn’t It has It doesn’t
Targeted Both ends of Both ends of Lower end of Lower end of
Customers customers customers customers customers
Positioning Premium Two-class, full- Low fares Lowest fares and
segment service airline no frills
that will further
leverage its
domestic and
international
reach
Kingfisher’s only strong obstacle proves to be Jet Airways, since Jet has control on both
ends of the market and secondly it has penetrated into the international market as well.
Benchmarking against Jet Airways, Kingfisher Airlines has acquired Air Deccan which was one of
the most profitable low cost airlines, hence kingfisher too has entered in the lower end of the
market but bearing in mind that they haven’t changed the name “Deccan” to “Kingfisher
Airlines” so that the brand doesn’t lower. Kingfisher is still testing the lower end of the market
 with Deccan. Kingfisher is also going to start non-stop flights to US so as to foray into the
international market.

New players into the market

Name Magic Go Indus Inter Air One Crystal Paramount Visa East
Air Airlines Airways Globe Air Air Air West
Airlines

Type No frills Low Value Low Regional Regional Regional Low Value
domestic Cost carrier Cost Cost carrier
airlines
6. SWOT analysis for Kingfisher Airlines

Strengths:
 Kingfisher Airlines have targeted the Indian domestic luxury segment, therefore
operating in a niche market.
 Kingfisher Airlines has a strong financial support from the parent company UB Group
and “Kingfisher” itself is a well-established brand.
 The customer service provided on Kingfisher is extremely exceptional for a domestic
airline, hence providing an ultimate flying experience.
 Kingfisher Airlines is well known for its highly trained and attractive staff.

Weakness:
 The company has a immature organisational structure and lacks mature management
practices.
 The company is unable to generate expected returns on the investments done.
 Loads are lesser than that of its competitor Jet Airways which is a reflection of its
marketing and sales capabilities.
 The main weakness of the company is the overspending of funds.

Opportunities:
 The Indian aviation industry is a growing industry with a growth rate of nearly 24%.
 There are a large number of domestic untapped routes.
 There has being a growth in the disposable income of the people especially in the
middle class, therefore more people can afford to fly by a luxury airline.
 The air cargo market is still untapped.

Threats:
 Fierce competition from other airlines such as Jet Airways
 Cost cutting is become a prime need in the aviation industry, hence pressurising a lot of
airline companies
 Infrastructure constraints
 The major rises in fuel prices
7. Industrial life cycle

 Indian aviation industry growth rate=24%

 Kingfisher airlines growth rate=37%

India is the 3rd fastest growing domestic aviation market in the world with a growth rate
of about 24%.Indian Subcontinent is the third largest market for new aircraft in Asia, behind
China (1790) & Japan (640). More and more middle class families now prefer air travel to
traditional rail travel this because of the growing income which is over Rs 90,000 per annum for
a normal employees. People are also having an increasing disposable income. The Indian
aviation has swiftly expanded after its liberation with the ending of government protection for
Indian Airlines, the adoption of an open skies agreement with the United States and the
loosening of a previously tightly restrictive quota pact with Britain, hence making the Indian
market very exciting to carry out business. These are the some of the possible factors that
drove the Indian flamboyant business tycoon Vijay Mallya to eye this particular market. Since
the introduction of Kingfisher Airlines it has maintained a rapid growth rate of about 37% which
is really extremely remarkable

8. Porter’s 5 Forces for Kingfisher Airlines

Threats from competitors:

The level of threat from the domestic competitors is very high. Competitors like Jet
Airways, Indian are some of the old well established players in the market which prove to be
strong competitors for the emerging Kingfisher Airlines

Threats from new entrants:

 The level of threat from new entrants is quite low such as Virgin Atlantic, Qantas. The
major players in the Indian aviation industry form an obstacle to foreign airlines and moreover
Indian flyers prefer to have an Indian experience on the flight.
Threats of substitutes:
The introduction of high speed trains, high tech buses and other means of transport has
given more options to people to travel.

Bargaining power of suppliers:

The bargaining power of suppliers is medium. For example, Airbus and Boeing are the
major aircraft manufacturers and there aren’t many aircraft manufacturers other than these
two, this confines Kingfisher’s options therefore the bargaining power of Airbus or Boeing
increases. In case of other suppliers such as caters the bargaining power of the suppliers is low
therefore Kingfisher has many other options of caters to contract to.

Bargaining power of customers:

The bargaining power of the customers is low since kingfisher is designed to meet the
total comfort and value for money; therefore customers aren’t reluctant to pay a little more
sum to gain this experience.
9. Position of Kingfisher Airlines

The position of Kingfisher Airlines in the market can be determined using the Bowman’s
Clock.

Bowman’s clock:

1 - Low price/low added value - Likely to be segment specific

2 - Low price - Risk of price war and low margins/need to be a 'cost leader'.

3 – Hybrid - Low cost base and reinvestment in low price and differentiation
4 - Differentiation –Without a price premium - Perceived added value by user, yielding market
share benefits
With a price premium -Perceived added value sufficient to bear price premium

5 - Focused differentiation - Perceived added value to a 'particular segment' warranting a premium

price

6 - Increased price/standard - Higher margins if competitors do not value follow/risk of losing

market share.

7 - Increased price/low values - Only feasible in a monopoly situation

8 - Low value/standard price - Loss of market share

10. Focused Differentiation (Kingfisher Airlines)

Kingfisher Airlines operates in a niche market which is the luxury segment of the market
therefore on the bowman’s clock it lies on the focused differentiation. The prices of the air
tickets for Kingfisher Airlines is comparatively higher than other airlines but the benefits and
services rendered by them is exceptionally excellent.
 Brand loyalty: “Vijay Mallya” himself is a brand in the first place and the brand
“kingfisher” has also established a remarkable standing in the market place. Even before
the introduction of Kingfisher Airlines into the aviation industry the company always
thought the brand image of Kingfisher must always outstand in any industry. Therefore
focus on quality service, entertainment and better technology made “Kingfisher Airlines”
to be known as a unique airline. Kingfisher airlines address all its customers as “guests”
rather than passengers which bring a sense of importance in the flyer’s mind.

 Insulation from competitors: Kingfisher Airlines is the only domestic airline that has the
technology and standards as that of an international flight. Since the UB group stands as
 a strong financial support for Kingfisher behind it, hence these milestones are been able
to be crossed. These factors prove out be a competitive edge for Kingfisher over other
competitors.

 Excellent marketing skills: Vijay Mallya has always used celebrities as his medium to
deliver his products to the customer. Popular celebrities like Katrina Kaif, Shah Rukh
Khan have always been in his good books. He even endorses his products through
sports like F1, golf, cricket so as to popularize his brand which has turned out to be
successful strategy. Promotions are also done through events, parties and swimsuit
calendars that have been the key strategy to concentrate the youth.

 Additional services: SMS ticketing and Web check in has been organized by this airlines
for the ease of their customers. Kingfisher is the only domestic airline that has the home
ticket delivery service as their additional service.

 Highly skilled employees: The recruitment process is personally carried out by the CEO
of the company Dr Vijay Mallya to ensure the best possible staffs serve his guests. The
company offers an attractive package of Rs 75,000 and additional benefits which is a rare
scenario in a domestic airline firm. The employees have to undergo systematic training
programmers in order to successfully fly on Mallya’s birds.

 Innovative: The Company has always had the flair for new technology; the future
introduction of Airbus A380’s would give them a clean advantage in the market. All the
aircrafts of Kingfisher are equipped with the CAT-III B technology that is very useful for
pilots in case of low visibility therefore avoiding cases of delay or mishaps during bad
weather.

11. Strategies adopted by Kingfisher Airlines

 Kingfisher Airlines is not a run-of-the mill Indian airline but else a value-added, designer
some-frillier flight.
 Kingfisher Airlines emphasizes on spunky, well-done interiors and trained airhostesses.

 Each A-320 carries 180 passengers.

 Borrowing from the Kingfisher beer tagline of “The King of Good Times” the theme of
“Fly the Good Times” is given to Kingfisher Airlines.

 Kingfisher has captured the Indian airline market with the twin engines of ‘special flying
experience’ and ‘value for money’. (Contests like ‘Kingfisher flying face of the month’ are
on cards).

 The Kingfisher airhostesses are selected through a nationwide contest.

 The Kingfisher “Fun liners” has in-flight silent auctions for lifestyle products and sales of
packaged food and beverages.

 The Kingfisher brand of exuberant, youthful and fast-paced image is leveraged (the brand
recall).

 Brand endorsement, Kingfisher Airline has roped in model Katrina Kaif to endorse the
airline.

 Acquiring Air Deccan has helped Kingfisher to eye the deeper end of the market too.

 In another strategic move, the airline entered into a breakthrough agreement with Indian
Airlines, making it the first ‘public-private’ partnership in the sector. This partnership
under which Indian Airlines will provide all ground handling services at its exclusive
terminals in Mumbai and Delhi will allow Kingfisher Airlines to efficiently manage
investments and overhead costs. The partnership encompasses a host of areas like
mutual assistance on account of cockpit commonality and over a period of time will
expand to cover engineering and schedule coordination. It ensures that Indian Airlines
makes incremental returns on its existing infrastructure.
 Kingfisher has adopted an extremely simple pricing structure so that irrespective of the
fare that a customer buys at, the rules, regulation and cancellation policy remain the
same.