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Miss Amita Shivhare

Kingfisher
Airlines
Air
India
V/s
Public Sector Company
The public sector, sometimes referred to as the state sector or
the government sector, is a part of the state that deals with either the
production, ownership, sale, provision, delivery and allocation of goods
and services by and for the government or its citizens, whether
national, regional or local/municipal. A company operating in public
sector of an economy is known as public sector company.
Examples of public sector activity range from delivering social security,
administering urban planning and organizing national defense.
Example
Private Sector Company
In economics, the private sector is that part of the economy,
sometimes referred to as the citizen sector, which is run by private
individuals or groups, usually as a means of profit.

A company operating in private sector of an economy is known as
private sector company. However distinction has to be made
between public sector companies and public companies. Public
companies are not part of the public sector; they are a particular
kind of private sector company that can offer their shares for sale to
the general public, i.e. to anyone willing to buy them (as opposed to
a privately owned company, shares of which can be sold to
someone only if the owner of the shares agrees to sell them).
Reliance & Co. owned by Mukesh Ambani, Tata Group owned by
Ratan Tata, Hero group owned by Brij Mohan Das Munjal etcetra.
Example
Public Sector Company Versus Public Company
AVIATION INDUSTRY
One of the fastest growing industries in the world.

Origin of Indian aviation industry can be traced back to the year
1912.

India has the private airlines as its key players

75% of the market share is owned by the private sector.

Problems that the Indian aviation industry is facing and thus
immediate attention is needed.

Kingfisher Airlines
Dr Vijay Mallya is the Chairman and CEO
of Kingfisher Airlines. But now Sanjay
Agarwal is the CEO of Kingfisher Airlines.

Kingfisher Airlines Limited launched
scheduled airline services on May 9, 2005
with 4 daily flights between BOM & BLR
and one A-320 aircraft.

There are tools for mood lighting such as
web chat, inseat plugins for music, live TV
with 16 channels on each seat.

Air India
The saga of Air India began by the amalgamation of 8
private airlines, with the passing of Air Corporation
Act to nationalize the air transport industry.

Air India is the flag carrier airline of India and the
second largest airline in India in terms of market
share. It is part of the government owned Air India
Limited (AIL).

The airline plans to move its corporate headquarters
from Mumbai to Delhi sometime in 2013
Following its merger with Indian Airlines, Air India
has faced multiple problems, including escalating
financial losses, Between September 2007 and May
2011, Air India's domestic market share declined from
19.2% to 14%, primarily because of stiff competition
from private Indian carriers.
Mission And The Vision
Basis Air India Kingfisher Airlines
Mission To demystify air travel
in India by providing
reliable, low-cost and
safe travel to the
common man.
Kingfisher Airlines
will have 'Fly the Good
Times' approach and
this will reflect in the
experience we will
offer to passengers
Vision To empower every
Indian citizen to fly.
The Kingfisher
Airlines family will
consistently deliver a
safe, value-based and
enjoyable travel
experience to all our
guests.
Organization Structure And The Span Of Control
BASIS KINGFISHER AIR INDIA
Work specialization high degree of work
specialization
a moderate degree of work
specialization
Departmentalization

departmentalization by
customers
departmentalization by
functions
Chain of command clear chain of command. clear chain of command.
Centralization and
decentralization
Centralized decision
making authority
Centralized decision
making authority
Formalization Very high degree of
formalization
high degree of
formalization.

Span of control Low span of control
because of customer
departmentalization and
complexity of tasks.
Very high span of control
because of functional
departmentalization and
Similarity of tasks.
Decision Making Styles
Out of the four decision making styles, namely Directive, Analytical,
Conceptual and Behavioral, Kingfisher typically has a Directive style of
decision making as Mallyas inability to strategize and place the critical
airline business on the national and global front, which is totally
different both in nature as well as in approach, than his liquor
business. His attitude of Ekla Chalo Re in airline venture caused him
much harm than good as he didnt delegate the business operations
and decision making rights to other skilled executives who could have
taken much better decisions than him.

On the other hand Air India has a mixture of analytical and behavioral
styles of decision making as when Government asked its executives if
it should give away any relief package to Kingfisher Airlines, the
executives made a smart and right move by advising the Government
to not to do so by convincing/outwitting by saying that national funds
are meant to be used in bailing out national ventures (Air India in this
case) first rather than a private one, and that too until and unless it is
of some strategic importance to the nation.
Role Of Leaders
Kingfisher Airlines

Vijay Mallya's leadership has been the insalvated reason for the failure
of the Airlines as well as the failure of Kingfishers employees. He has
continously been over indulged and wasting away resources in
Kingfisher calendar activities and of course, the multi crore rupee
event, IPL where he had diverted huge sums of money from his core
businesses.
Air India

Though the executives of the fleet have done a lot to make the
employees more productive but all the efforts have gone vain Mr Rohit
Nandan is the fifth CMD of the carrier, in four years. Infusing funds
without empowered leadership, free from political interference, is a
waste of taxpayer resources. Air India needs focused leadership, more
than anything else.

Work Culture And Managing Control
Kingfisher Airlines

The work culture provided by Kingfisher Airlines for its employees is
elite in itself. It provides the best facilities and completely infuses its
employees to develop and be the best although it's a fact that the same
employees haven't been renumerated for 8 consecutive months. The
managerial control of Kingfisher Airlines is very high because of the
complexity of tasks and the etiquetted service which Kingfisher provides
leaves no scope of confusion for its employees. However the employees
completely abide to the control process practiced by company.

Air India

On the contrary Air India provides a simple work culture to its
employees but focuses on the continous development and learning by
making its employees dynamic. It doesnt practices much of control
mechanism as the main decision making authority is government which
itself doesnt wants to be governed by anyone.
Awards & Recognition
Air India
Preferred International Airline award for travel and hospitality from
Awaz Consumer Awards 2006
Best International West Bound Airline out of India for three
successive years by Galileo Express Travel World Award
Best Corporate Social Responsibility Initiative. by Galileo Express
Travel World Award

Kingfisher Airlines

Kingfisher Airlines frequent flyer programme, King Club has won Top Honours
at the 21st Annual Freddie Awards in the Japan, Pacific, Asia and Australia
region.
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.
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 Favourite Airline.
Rated as Asia Pacific's Top Airline Brand.
Brand Leadership Award.
Economic Times Avaya Award 2006 for Excellence in Customer
Responsiveness.
India's No. 1 Airline in customer satisfaction by Business World.
Rated amongst India's most respected companies by Business World.
Rated amongst India's 25 Innovative Companies 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 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.
Buzziest Brands of 2005 by agencyfaqs 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 Trust Report
Recommendations
Kingfisher Airlines

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.

Air India

So Indian Airlines should emphasis on providing more efficient services
both on the ground and in the air as done by Jet Airways to a large extent.


There should be internal and external audits to look in to the working of
various departments.

Indian Airlines should schedule more number of flights to and from
stations like Mumbai, Delhi, Chennai, and Kolkata as these sectors
account for high Tax load.

The check-in time should be minimal. Wherever there is likely to be long
cues more counters should be opened.

Flight status should be made available through SMS.

This is a world class experience, al
l at an affordable price. We are not a
lowcost carrier and we do not inten
d to be one. We have broken the s
hackles of conservative socialism. T
he growing middle classes want the
kind of standard of living you enjoy
in the West. So what I am selling is li
festyle.

Vijay Mallya
S.W.O.T Analysis
Kingfisher Airlines
STRENGTHS
Quality of the service.
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.
OPPORTUNITIES
The expanding tourism industry.
The non penetrated domestic market.
International market.
Untapped air cargo market.
THREATS
Competitors
Infrastructure issues.
Fuel price hike.
Economic slowdown.

Air India
STRENGTHS
Most Experienced airline in the
industry.
Only airline with Boeing Air Bus and
Dreamliner
fleets in the country.
Largest fleet size.
WEAKNESSES
Loosing domestic market share.
Scope for improvement in in-flight
service.
OPPORTUNITIES
Untapped air cargo market.
Scope in international service and
tourism.
THREATS
Strong competitors.
Fuel price hike.
Overseas market competition.
Conclusion
The healthily competition of domestic airlines has set new trends in
the quality of service. Previously in the monopolistic environment
of Air India the quality and the desire to win over the constraints
was totally dismal. With the oncoming of Kingfisher Airlines and Jet
Airways there has been a change in the quality of service and the
pride of the job. Hence today it is a matter of great significance that
the Air India staff now cares about the passenger comfort and take
pains to see that the flight is on time. Air India so should try the
high percentage 98% of on time service. Kingfisher is the hallmark
of their quality of service. But as everything has its price the
charges of Kingfisher Airlines are 9.8x or approximately 10x higher
than those of Air India which are the root cause of its failure.
GRATITUDES
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