The Low Cost Airline Kingfisher Red Airlines Tourism Essay

Kingfisher Red Airlines before known as Air Deccan or Simplifly Deccan is a low-priced air hose and is a subordinate of Kingfisher Airlines. Air Deccan, now Kingfisher Red was established in the twelvemonth 2003 with the purpose to enable every Indian citizen to wing was taken over by United Beverages Group main Dr. Vijay Mallya and became Kingfisher Red on August 29, 2008. With the coup d’etat, the bluish signature coloring material of former Simplifly Deccan is now Red. Kingfisher Red air hose now operates under the flight codification ‘IT ‘ alternatively of the earlier ‘DN ‘ codification. Currently, Kingfisher Red air hose serves as the low cost flight bearer of the UB Group and the degree of service offered will be improved bit by bit. Flight agendas, booking options and other related information about Kingfisher Red are available on MakeMyTrip.

Kingfisher Airlines began its operations on 9 May 2005, following the rental of four Airbus A320 aircraft. The inaugural flight was from Mumbai to Delhi. On June 15, 2005, it became the first ( and merely ) Indian air hose to order the Airbus A380. It placed orders for five A380s, five Airbus A350-800 aircraft and five Airbus A330-200 aircraft in a trade valued at over $ 3 billion. Delivery of the A330s was due to get down in late 2007, followed by the A380s in 2010 and the A350s in 2012.

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Ever since its launch in May 2005, Kingfisher Airlines has blazed a trail of inventions and introduced a scope of market-firsts that have wholly redefined the whole experience of winging. By promoting its clients to a degree of being ‘guests ‘ and non merely riders, Kingfisher Airlines has endeared itself to consumers. Kingfisher Airlines was the first Indian air hose to present in-flight amusement ( IFE ) system on domestic flights. Passengers on-board are provided complimentary ‘welcome kit ‘ that contains a pen, facial tissue and earphone to utilize with the IFE system. Kingfisher Airlines has made confederation with Dish Television to supply unrecorded Television amusement to riders.

As of July 2007, Kingfisher operates merely on domestic paths ; nevertheless it started its international operations on 3rd September, 2008 with a flight between Bangalore and London, and subsequently on added new international finishs, viz. Hong Kong, Dhaka, Colombo, Singapore, Dubai and Bangkok. However, on 15th September 2009, Kingfisher Airlines withdrew the London service.

On December 19th, 2007 Air Deccan and Kingfisher Airlines decided to unify. Kingfisher Airlines ‘ parent company United Breweries ( UB Group ) have acquired 46 % of Air Deccan ‘s parent Deccan Aviation, which possesses 52 % of the entire bets.

In May 2009, Kingfisher Airlines bearer over a million riders that provided it the highest market portion among the air hoses in India.

Executive sum-up & A ; Introduction of the company:

“ Welcome to a universe without riders ”

Welcome aboard Kingfisher Airlines, where you are made to experience like an honoured invitee and non merely a rider. At Kingfisher, a flight is non a journey between two airdromes but an experience of a life-time.

As their honored invitee you can see Kingfisher Airlines in three alone categories of service – Kingfisher First ( Business category ) Kingfisher Class ( Premium economic system ) and Kingfisher Red ( Low menu ) . Kingfisher First and Kingfisher Class is available on our international paths excessively.

As Kingfisher takes off into the international skies, you can anticipate a first experience. Every Kingfisher aircraft meets the planetary criterions that I have set in footings of safety and public presentation. Our bran-new fleet incorporates the latest engineering and each aircraft is fitted with a individualized in-flight amusement system and top quality programming content from around the universe for your screening and listening pleasance, and to make an environment that you will truly cherish.

Aboard their flights, you will be delighted by the assorted centripetal experiences on offer – from teasing olfactory properties of universe culinary art to the charming touch of your personal curative massage place – we truly hold thought about every small thing that will tickle pink you.

Kingfisher Airlines is a portion of The UB Group that is one of India ‘s largest pudding stones with diverse involvements and a planetary presence. The UB Group is besides the largest Indian maker of drink intoxicant ( beer & A ; liquors ) and the 2nd largest drinks group in the universe. The lone Five Star Airline in the Indian skies, Kingfisher Airlines has ever been on the head of invention, presenting several number ones in Indian air power. Be it first in-flight service, delicious epicure culinary art or a radical personal in-flight amusement system onboard.

The air hose has received legion awards for invention, client reactivity and trade name leading since its origin. Kingfisher Airlines has introduced a new category of service called Kingfisher Red ( once Deccan ) , a alone category of low menu winging offering a batch of benefits besides the hallmark Kingfisher service at low menus. With this, Kingfisher Airlines now offers its invitees three categories of service, Kingfisher First ( concern category ) , Kingfisher Class ( premium economic system category ) and Kingfisher Red ( low menu economic system category ) . All the above three categories will besides be available on the Airline ‘s international paths.

Board of managers of the company:

Dr Vijay Mallya – Chairman, Kingfisher Airlines

Dr. Vijay Mallya holds a PhD in Business Administration, is a good known industrialist and a Member of Parliament ( Council of States ) . He took over the reins of UB Group at the immature age of 28 and has been instrumental in turning it into a transnational concern pudding stone. Dr. Vijay Mallya is the Chairman of the UB Group and several other public companies in India and abroad and has won broad acknowledgment from distinguished establishments.

Mr. Subhash Gupte – Vice-Chairman, Kingfisher Airlines

Before fall ining the UB Group ten old ages ago, Mr. Gupte has spent over 25 old ages in the civil air power industry and has served as the moving Chairman and Managing Director of Air India. He came on board Kingfisher Airlines as a strategic way supplier to the company.

Mr. A. K. Ravi Nedungadi

Mr. A. K. Ravi Nedungadi a Chartered and Cost Accountant joined the UB Group in 1990 as the Corporate Treasurer. Within two old ages, he became the Group Finance Director of the Group ‘s international concern pull offing the concerns of UB International, which included the pigment giant Berger Jenson and Nicholson, crossing 27 states. As the rule leading resource of UB Group, he was instrumental in reasoning the acquisition of Shaw Wallace & A ; Co, Bouvet Ladubay, Whyte & A ; Mackay, Air Deccan, etc. and has been profoundly engaged with the creative activity of Kingfisher Airlines Ltd. he is a receiver of many awards of excellence including the Udyog Ratan Award, CNBC TV18 ‘s – Chief financial officer of the Year – M & A ; A, etc. and is on the Board of several companies, both in India and overseas.

Mr. Vijay Amritraj

Mr. Vijay Amritraj, a receiver of the Padma Shri, a designated United Nations Messenger of Peace and a receiver of the International Sportsman of the Year Award for the twelvemonth 1987, was the youngest participant to play Davis Cup for any state. He later served India in the Davis Cup for 20 old ages and led India to Davis Cup finals twice in 1974 and 1987. Vijay founded the BAT ( Britannia Amritraj Tennis ) Academy in India and besides held the place of President of the ATP ( Association of Tennis Professionals ) .

Mr. Anil Kumar Ganguly

Mr. Anil Kumar Ganguly is a fellow member of the Institute of Chartered Accountants of India. He has over four decennaries of experience in assorted aspects of corporate direction, such as finance, accounting, audit, revenue enhancement and corporate personal businesss, and besides has rich experience in gross revenues and selling in India every bit good as abroad and cognition in countries of corporate funding, direction, corporate administration, audit, revenue enhancement, international selling, and undertaking control. He was the whole clip Director of Britannia Industries Limited and was the Managing Director of Nabisco Brands ( Malaysia ) .

Mr. Diwan Arun Nanda

Mr. Diwan Arun Nanda is the Chairman and Managing Director of Rediffusion DYR. He is a Gold Medalist from the Indian Institute of Management, Ahmedabad, and started his selling calling with Levers before he co-founded Rediffusion, one of the taking advertisement bureaus in India. He besides served as a member of the Air India board.

Dr. Naresh Trehan

Dr. Naresh Trehan is India ‘s prima Cardio Thoracic and Vascular Surgeon. He founded the Escorts Heart Institute & A ; Research Centre and is its Executive Director. He has been conferred both Padmashree and Padmabhushan awards by the Government of India. He has besides been a Professor of Surgery at the New York University Medical Centre.

Mr. Piyush Mankad

Mr. Piyush Mankad is a distinguished member of the Indian Administrative Service and has served in the Cabinet Committee in the Ministry of Finance. He besides serves on the board of assorted companies as an Independent Director.

Mr. G.N. Bajpai

Mr. G.N. Bajpai, served for 3 old ages as the president of Securities and Exchange Board of India, ( SEBI ) . Mr. Bajpai was earlier the president of the Life India Corporation of India. Mr. Bajpai is credited with streamlining the securities watchdog and market regulator. Under his stewardship, SEBI improved its processs for implementing conformity to guarantee market unity and for protecting the involvements of investors and India became one of the few states to present ‘straight through processing ‘ ( STP ) in the stock market. It was during his term of office that the derived functions market in equities has grown and developed.

Vision and Valuess

Vision

“ The Kingfisher Airlines household will systematically present a safe, value-based and gratifying travel experience to all our invitees. ”

Valuess

Safety

This is our overruling value. In our line of concern, there is no via media.

Service

We are all in the cordial reception concern ; we must ever seek to function our invitees and derive their trust, good will and trueness.

Happiness

We seek to construct an organisation with people who choose to be happy, and will Endeavor to act upon our invitees and colleagues to be happy excessively.

Teamwork

We will win or neglect as a squad. Each one of us must esteem our co-workers irrespective of their rank, and we must work together to guarantee our common success.

Accountability

Each one of us will be held accountable for the successful executing of our responsibilities, committednesss and duties, and we will endeavor to take by illustration.

Awards and accomplishment:

‘Best Airline in India and Central Asia ‘ , ‘Best Economy Class Seats ‘ and ‘Staff Service Excellence Award for air hoses in India and Central Asia ‘ in World Airline Awards,2010

‘5-STAR AIRLINE ‘ award by Skytrax for 3rd back-to-back twelvemonth, 2010

‘India ‘s Favorite Airline ‘ in HT MARS Consumer Satisfaction Survey, 2009

‘Best Airline in India and Central Asia ‘ , ‘Best Cabin Crew-Central Asia ‘ for Kingfisher Airlines and ‘Best Low-Cost Airlines in India and Central Asia ‘ for Kingfisher Red services in SKYTRAX World Airline Awards, 2009

‘Bonus Promotion ‘ ( Japan, Pacific, Asia, Australia ) and ‘Best Customer Service ‘ ( Japan, Pacific, Asia, Australia ) in Freddie Award, 2009

Kingfisher Airlines frequent circular programme, King Club has won Top Awards at the 21st Annual Freddie Awards in the Japan, Pacific, Asia and Australia part.

King Club has won the Freddie Awards 2008 in the undermentioned classs:

Best Bonus Promotion

Best Customer Service

Best Member Communications

Best Award Redemption*

Best Elite Level

Best Website

Plan of the Year

Current scheme of the company:

The instance discusses the scheme of Kingfisher Airlines ( KFA ) , which launched its domestic air service operations in May 2005. KFA was promoted by the UB Group and positioned as a budget bearer that offered a individual class- “ Kingfisher Class ‘ .

KFA modeled its scheme on the schemes of JetBlue Airways, in supplying value added air travel services at economical monetary values. KFA purchased trade name new A320 aircraft powered ; the cockpit was a paperless environment. The air hose called its aircraft ‘Kingfisher Funliners ‘ to stand for the fun-filled experience it wished to supply to its clients.

Mallya made it clear that KFA would non be positioned as a low cost bearer as riders would impute the characteristics of low cost bearers like low quality of service, delayed flight timings, etc. , to KFA every bit good.

KFA ‘s clients could book their air tickets either online at the KFA web site ( www.flykingfisher.com ) , at any KFA office, or through an approved travel agent. KFA besides offered a installation for place bringing of tickets on demand. In December 2005, KFA launched its SMS service called ‘King Mobile ‘ to maintain its invitees updated about flight agendas and flight position through blink of an eye Mobile qui vives…

Hence, the air hose was called a budget air hose and non an LCC. Menus were above those of LCCs but lower than the economic system category menus of Jet, Sahara, and IA. KFA besides allowed multiple menu options and auctioning of tickets on all traffic paths…

All the aircraft had in-flight amusement systems and good designed insides. There was merely one category, i.e. , the Kingfisher Class, instead than the economic system category and concern category bifurcation of other air hoses.

KFA modeled its scheme on the schemes of JetBlue Airways, in supplying value added air travel services at economical monetary values. KFA purchased trade name new A320 aircraft powered ; the cockpit was a paperless environment. The air hose called its aircraft ‘Kingfisher Fun line drives ‘ to stand for the fun-filled experience it wished to supply to its clients.

All the aircraft had in-flight amusement systems and good designed insides. There was merely one category, i.e. , the Kingfisher Class, instead than the economic system category and concern category bifurcation of other air hoses.

“ We are traveling to hold a individual category which will unite the experience of concern category with economic system, ” said Ajit Bhagchandani, General Manager of KFA. Having a individual category freed up more infinite and legroom for riders when compared to normal economic system category seats. KFA was besides the lone air hose in India to turn to its riders as ‘guests ‘ .

“ They are traveling to hold a individual category which will unite the experience of concern category with economic system, ” said Ajit Bhagchandani, General Manager of KFA. Having a individual category freed up more infinite and legroom for riders when compared to normal economic system category seats. KFA was besides the lone air hose in India to turn to its riders as ‘guests ‘ .

KFA successfully leveraged the youthful and vivacious image of its Kingfisher Beer trade name and called its air hoses as ‘Fun line drives ‘ to stress the fun-filled experience. Within the first six months of its launch, KFA managed to corner a 6 % market portion in the domestic air travel market.

FUTURE scheme of the company:

KFA besides plans to run on international paths. However, the increasing popularity of low cost air hoses like Air Deccan, launch of new low cost bearers like Spice Jet and Go Air, and Jet Airways ‘ acquisition of Air Sahara, farther intensified the competition in the Indian air power sector. In an attempt to do KFA profitable at the earliest, KFA modified its ‘single category ‘ attack and began to offer an upgraded concern category service- ‘Kingfisher First ‘ .

During KFA ‘s launch map in May 2005, Mallya mentioned that the air hose would add at least one aircraft to its fleet every month till the terminal of 2005. KFA started off with four A320 ‘s and had nine aircraft by the terminal of December 2005. In June 2005, KFA placed an order worth US $ 5 billion at the Paris Air Show, for five new A380 aircraft, five A350-800 aircraft, and five A330-200 aircraft. KFA was the first Indian bearer to put an order for A380s.

The proposed buyout of Sahara by Jet Airways and the monetary value war among all the air hoses was an indicant of the competition constructing up in the Indian air power sector. With respect to the increased competition, Mallya said, “ Certain there will be a bloodletting… in alleged low-priced air hoses who seek to change over the railroad rider into air hose rider. We are positioned highly otherwise. ” He besides said that KFA targeted the turning in-between category section that was net understanding, immature and upwardly Mobile, with a leaning to pass.

Prior to its launch, KFA signed a ‘non-poaching confederation ‘ with Air Deccan under which both air hoses agreed non to engage each other ‘s employees. However, most of KFA ‘s crew came from Jet and Sahara.

KFA ‘s flight attenders besides called ‘flying theoretical accounts ‘ were selected through a national degree theoretical account competition. The garb of KFA ‘s cabin crew was designed by celebrated manner interior decorator Manoviraj Khosla.

KFA besides stressed the fact that its employees had to be capable plenty to run into the air hoses ‘ high service criterions.

FUTURE OF THE COMPANY:

Both king fisher and jet airways the two private sector air lines are in bad form with immense accrued losingss. so far the authorities has non yet changed the norms by which they can hold a foreign spouse in equity. if the new authorities liberalizes the norms and let overseas air hose to hold the interest they will last otherwise there is traveling to be a large job in air power in India as both are non able to pay their crude oil measure to oil selling company.

Kingfisher is doing its entry into the Gulf with day-to-day flights linking Dubai with Bangalore. It is the first clip Kingfisher Airline will run flights to the Middle East and it is the 4th international path of the reputed airliner. Before this, Kingfisher Airlines has operated flights to paths like London, Colombo and Dhaka.

KFA is positive about turning its international paths in the close hereafter. The Kingfisher Airlines frailty president planetary gross revenues Siva Ramachandran added that the air hose perceives its chief rival on its Dubai paths as Emirates, but it is positive about viing with the likes of Jet Airways excessively. The sky above Middle East will see more activity with Kingfisher Airlines fall ining the disturbance. Book your Kingfisher Airlines ticket online and bask going to your favourite finish in Gulf at inexpensive rates.

SWOT Analysis:

Strengths:

– Strong trade name image

– Focus on LCC section every bit good with Kingfisher Red

– Financial backup of UB group

– Strong and competent direction

Failing:

– High care cost at land and air hose

Opportunities

– Poor service of Indian Airlines / Air India

– Problem with Jet air passages ( work stoppages etc )

– Growth in air travel, with concerns and markets making better.

– More leisure travellers ( E.g. spice jet has late added a new flight from Mumbai to Goa )

Menaces:

– Rising oil monetary values play mayhem with monetary values and hence with burden factor

– Other low cost air hoses supplying better services with their newer aeroplanes ( Kingfisher Red has old aircrafts )

– Government enterprises in railroads with fast running trains like Duronto.

– Better roads mean concern travellers may prefer taking the route than the train for short distances, since it comes out cheaper and there are no holds at airdromes etc.

– Menace of terrorist act leads to fewer international travellers

FINANCIAL STATEMENTS SHOWING LOSS OF THE COMPANY