PROJECT REPORT ON “KINGFISHER AIRLINES”

Submitted in Partial Fulfillment for the Award of the Degree of Bachelor in Business Administration 2010-2012

Und er the Guidance of: Ms. Ekta Dargan Designation: Faculty Submitted By: Rahul Nanda Enrollment No:1046110709 Course:BBA GEN 3rd sem (SS)

Maharaja Agrasen Institute of Management Studies Affiliated to Guru Gobind Singh Indraprastha University, Delhi PSP Area, Plot No. 1, Sector 22, Rohini, Delhi 110086

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STUDENT DECLARATION
This is to certify that I have completed the Summer Project titled “Kingfisher Airlines” under the guidance of “Ms. Ekta Dargan” in partial fulfillment of the requirement for the award of Degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.

Date: Place:

Signature: Name: Rahul Nanda Enrollment no: 1046110709

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CERTIFICATE FROM THE INSTITUTE GUIDE
This is to certify that the summer project titled “Kingfisher Airlines”is an academic work done by “Rahul Nanda” submitted in the partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi, under my guidance & direction.

To the best of my knowledge and belief the data & information presented by him/her in the project has not been submitted earlier.

Signature:

Name of the Faculty:

Designation:

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Kakkar. Ekta Dargan for allowing me to work on a very intrinsic part of aviation sector.S) for his great support in completion of this project.K.A.M. Mudit Bhargava.I. It gave me enormous gratification to articulate my thankfulness and heart full sense of indebtedness to my dearest friend. my indebtedness to my mentor & guide. N. Director (M. – 1046110709 Executive Summary 4 . Ms. as they helped me a lot in accomplishing this project of mine. I also put forward my heartiest thanks to Dr. “Kingfisher Airlines” I also thank her for the ideas and basic concepts she delivered and shared with me.ACKNOWLEDGEMENT I acknowledge with gratitude and appreciation. RAHUL NANDA Enrollment No.

you will find that the research methodology of the report is mentioned. and different services offered by it such as Airport services.W. In 5th Chapter you will find some of the limitations of project being face by me.T analysis of Kingfisher Airlines in which the strengths. weaknesses are highlighted. In 2nd Chapter of this report.O. In 4th Chapter you will find conclusion and suggestion on the project on Kingfisher Airlines. It aims to make its reader well versed with each and every aspect of Kingfisher Airlines. about the Management Team. in which you will find its fleet. departments. In it you will also find about the Events. current destination.ground services. In 3rd chapter you will find an overview of Kingfisher Airlines. This project is overall an attempt to make you aware or to cover every Possible aspect of Kingfisher Airlines in India and around the world STUDENT DECLARATION CERTIFICATE FROM THE INSTITUTE GUIDE 5 . Awards. It throws light on the following:In 1st Chapter you will find the objective of doing the project on Kingfisher Airlines.How to book travel on Kingfisher Airlines? And even about the S. You will further notice .This project is an attempt to give knowledge about Kingfisher Airlines. on . In-flight services.

1 Company Profile 1.1 Meaning Of Research 2.2 History 1.1 Overview 3.3 Methodology Chapter 3 Corporate Overview 3.1 Conclusion 4.7 Awards.2 Objectives Of Research 2.3 Avition industry in India 3.8 Finding & Analysis Chapter 4 Conclusion and Suggestions 4.2 About the aviation industry 3. Events & Sponsorships 3.3 Objective Chapter 2 Research Methodology 2.2 Suggestions Chapter 5 Limitations of the study 6 .6 Products & Services Fleets 3.ACKNOWLEDGEMENT EXICUTIVE SUMMERY TABLE OF CONTENTS Chapter 1 Introduction 1.4 Basic Facts 3.5 In the News 3.

1 Company’s Profile 7 .Chapter 1 INTRODUCTION 1.

It was the first airline in India to operate with all new aircrafts. Cochin. Kolkata. In a short span of time Kingfisher Airline has carved a niche for itself. has acquired 26% stake in the budget airline Air Deccan and has option to buy further of 20% stake from the secondary market. India. Ahmedabad.Kingfisher Airline is a private airline based in Bangalore. Guwahati. Dibrugarh. The airline offers several unique services to its customers. Kingfisher Airlines is also the first Indian airline to order the Airbus A380. UB holdings Ltd.2 History 8 . These include: personal valet at the airport to assist in baggage handling and boarding. accompanied with refreshments and music at the airport. The airline currently operates on domestic routes. Hyderabad. Mumbai. The airline is owned by Vijay Mallya of United Beverages Group. Kingfisher Airlines currently operates with a brand new fleet of 8 Airbus A320 aircraft. Delhi. Mangalore and Jaipur. 1. Pune. Chennai. Goa. The destinations covered by Kingfisher Airlines are Bangalore. with extra-wide personalized screens in the aircraft and three. Kingfisher Airlines started its operations on May 9. Agartala.course gourmet cuisine. 3 Airbus A319-100 aircraft and 4 ATR-72 aircraft. 2005 with a fleet of 4 Airbus A320 aircrafts. audio and video on-demand.

and an open offer for a further 20%. Through schedule coordination and joint operations in ground handling. the carriers are projecting annual cost savings of over USD70 million. training. Air Deccan. A340s. with Air Deccan to adopt the Kingfisher image in its logo and to switch to a red. In addition to its A320 family aircraft used on domestic routes. In just over two years. 9 . Kingfisher will not be permitted to operate overseas until 2010. for approximately USD130 million. However. Kingfisher Airlines also operates ATR-72 turboprops on regional sectors. which is headed by the charismatic Dr Vijay Mallya. and maintenance. The airline initially operated a single class service but subsequently introduced a highly acclaimed First Class. India’s largest brewery. The airline. which require airlines to operate 5 years domestic service before being granted international rights. custom interior designs for each aircraft. In Jun-07. with an order book for 45 wide body aircraft. A350s and A380s. The branding of the airline is linked to that of Kingfisher Beer. Under current Indian regulations. rather than a blue colour scheme. it dramatically increased its influence in the market with the acquisition of a 26% shareholding in India’s largest LCC. one of the largest beverage companies in the world. There will also be greater coordination between the two brands. including A330s. the airline has very clear international ambitions. valet assistance at airports and complimentary hot food and beverages. Kingfisher Airlines has achieved a market share of 10% and has one of the most aggressive expansion plans of all Indian carriers during 2007.Kingfisher Airlines is a subsidiary of the UB Group. and attracted attention for its high quality product with personal inflight entertainment in every seat. allowing it to compete with Jet Airways for the high yield corporate market. took to the skies in May 2005.

Present History Sales of the United Spirits Ltd. however it has announced plans to start flights to theUSA with Airbus A380 aircraft. first-time flyer. USL is one of only three in the world to own seven millionaire brands and at least five brands rated by Drinks International. to the high yield business traveler. The airline is owned by the United Beverages Group under the leadership of Vijay Mallya (which also owns the popular Indianbeer of the same name). making it one of the key pillars of the airline industry.The combined Kingfisher/Deccan group has a market share of just over 30% and a product range spanning from the price-sensitive. The flagship 10 .called United Breweries Limited (UBL) . The airlines recently acquired 25% stake in Deccan Airlines. a first among Indian airlines. The airline promises to suit the needs of air travellers and to provide reasonable air fares. Through a process of aggressive acquisition and market penetration. In addition. The UB Group’s Brewing Enity . to be amongst the ten fastest growing brands in the world in their respective categories. UK. Aviation UB Group entered aviation sector in 2005 with the launch of Kingfisher Airlines Limited. Kingfisher Airlines has captured an impressive market share and has established a niche identity for itself.has also assumed undisputed market leadership with a national market share in excess of 50%. Kingfisher operates only on domestic routes. are expected to exceed 60 million cases during the fiscal year 2005-06 making the Group the third largest manufacturer ofSpirits products in the world. The airline which started its operation on 9th May 2005 following the lease of 4 Airbus A320 aircraft. As of July2007. The airliners in-flight Mobile Phone and Internet Services will be provided byOnAir starting 2008 for longhaul flights. Kingfisher Airlines' main "luxury" component is its InFlight Entertainment System. The UB Group today controls 60% of the total manufacturing capacity for Beer in India.

To study the structure and workings of Kingfisher Airlines. Financials In July 2007. Chapter 2 11 .3 Objectives The main objectives of the study of this project are – • • • • To study the growth and expansion of Kingfisher Airlines. 1. The group company Mangalore Chemicals and Fertilizers Limited (MCF ) has factory at Panamburin Dakshina Kannada district of Karnataka. a lifestyle television channel run by NDTV. In August 2007.3% compared to the previous year. the group made a first-of-its-kind media alliance for the promotion of NDTV Good Times. To understand the attitude towards the services of Kingfisher Airlines. To compare Kingfisher Airlines with other Airlines. United Breweries Limited reported volume growth of 16. Kingfisher is now sold in over 52 countries worldwide having received many accolades for its quality. The UB group is also into manufacture of Fertilizers.brand.

Research Methodology 2.1Meaning of Research 12 .

In it we study the 13 . Studies with this object in view are known as descriptive research studies.” Some people consider research as a movement. a movement from the known to the unknown. situation or a group. research comprises defining and redefining problems. Research is an academic activity and as such the term should be used in a technical sense. 2.3 Methodology Research methodology is a way to systematically solve the research problem. Studies with this object in view are known as diagnostic research studies. It may be understood as a science of studying how research is done scientifically. as following:• • • . making deductions and reaching conclusions. organizing and evaluating data. Studies with this object in view are termed as exploratory or formulative research studies. and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. According to Clifford Woody. Though each research study has its own specific purpose but the research objectives can be listed into a number of broad categories. To determine the frequency with which something occurs or with which it is associated with something else. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet.Redman and Mory define research as a “systemized effort to gain new knowledge. To gain familiarity with a phenomenon or to achieve new insights into it. collecting. 2. formulating hypothesis or suggested solutions.2 Objectives of Research The purpose of research is to discover answers to questions through the application of scientific procedures. To portray accurately the characteristics of a particular individual.

It is necessary for the researcher to know not only the research methods or techniques but also the methodology.various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. Data Source The data can be collected from two sources. i. Research Methodology involves research plan that has following major steps: • • • Defining the Data Source Research Approach Data Analysis Defining the Data Source The data required for familiarizing with the role of Aviation Sector. I have collected the entire data of this project on Kingfisher Airlines from SECONDARY SOURCES like websites. Primary and Secondary. newspapers and magazines.e. “Kingfisher Airlines” as collected from the web sites and journals Research Approach The research was carried out under following major steps: 14 . books.

the present way of working and the current strategy of Kingfisher Airlines was gathered and thoroughly analyzed which gave the researcher an insight into company’s profile and organization structure was made with the help of company’s web site. company’s manuals . developments.• LEARNING ABOUT THE COMPANY At the very outset. it was analyzed methodically. • COLLECTION OF DATA Under this step the secondary data was collected though company’s website. brochures and other relevant published material. company’s manuals. brochures and other relevant published material. the information regarding the origin. This helped the researcher to understand the present working scenario and gain familiarity with the organization’s strategic moves. The importance and the purpose of move was identified to assess the benefits and the risks faced by the company in the field of Aviation Chapter 3 15 . Data Analysis After the data about the developments and its future goals had been collected.

Corporate Overview 3.1 Overview Our Vision 16 .

” Our Values • Safety This is our overriding value. In our line of business. commitments and obligations. • Happiness We seek to build an organisation with people who choose to be happy. we must always seek to serve our guests and gain their trust.“The Kingfisher Airlines family will consistently deliver a safe. Each one of us must respect our colleagues regardless of their rank.2 About the aviation industry 17 . there is no compromise. and will endeavour to influence our guests and co-workers to be happy too. and we will strive to lead by example. 3. • Accountability Each one of us will be held accountable for the successful execution of our duties. goodwill and loyalty. value-based and enjoyable travel experience to all our guests. • Team work We will succeed or fail as a team. • Service We are all in the hospitality business. and we must work together to ensure our mutual success.

which hiked the permitted foreign direct investment (FDI) limit in domestic airlines to 49% from the existing 40%. because to start a low cost service with nation wide operations. some political parties (leftists) tried to muddy the waters.What gladdened Dr. 18 .05% of them fly. • Low cost carriers can break even in a year or two or at most three. the decision also signaled to domestic airlines and foreign investors that the government was serious on aviation reform. • Air transport is the obvious solution for mobility. Starting a low cost airline is not the most difficult part. • A regional service can be started at a much lower cost . depending on the scale of operations (a full scale carrier will need investment of around $70-80mn).Sahara cartel failed.around $1015mn. The bogey of national security concerns raised by the Jet. This move is expected to help fledgling airlines like Kingfisher and Air Deccan.3 Aviation industry in India • Every Indian should fly. 3. especially for labor. There are approximately one billion people & only about 0. but the skies were opening up and Dr. Vijay Mallya must have been a Cabinet decision on Wednesday. • New airlines typically have a major cost advantage. if fares can be kept low (as compared to train fares). Jet and Sahara lobbied till the last. October 20. • Assuming that the airplanes are leased the cost is typically between $20-40mn. Mallya had cause for cheer. over established (mostly state-owned carriers like Indian Airlines or Air China). 2004. More than the 9% hike.

000 p. with its maiden service from Bangalore to Mumbai with 174-seat A320 aircraft.90. the total air traffic will rise by 5 million actual passengers each year over the next 10 years. as wallet friendly new players like Kingfisher airlines spruced up plans to enter the aviation segment. • In 2003.• India is 3rd fastest growing domestic aviation market in the world.4 Basic Facts Kingfisher Airlines commenced commercial operations on 9 May. (last year growth was 23% & will maintain 20% growth in next five years) • Indian Subcontinent is the third largest market for new aircraft in Asia.a. 3. With the ending of government protection for Indian Airlines. 10 million Indians traveled by air domestically.) • People having greater disposable incomes. • Swift liberalization of the Indian market. • More and more middle class families now prefer air travel to traditional rail travel. • According to CAPA (Centre for Asia-Pacific aviation) forecasts. 19 . the adoption of an open skies agreement with the United States and the loosening of a previously tightly restrictive quota pact with Britain. behind China (1790) & Japan (640). India is an exciting aviation market. More could take to the skies in the months and years to come. In 2004. • The more the merrier. [Growing Middle-Class (income over Rs. 25 million took to the skies within India and 6 million Indians traveled abroad.

Kingfisher Airlines has contracted Indian Airlines to operate government mandated socio-economic routes on its behalf. 20 . Air Deccan Managing Director GR Gopinath welcomed Kingfisher. If you look at the emerging India. entrepreneurs?people who have a much greater propensity to spend than when I was young. Fares: Bangalore-Mumbai fares are at least 35% lower than Indian Airlines and Jet Airways. Mallya is optimistic about the prospects for the airline. This forms part of a INR1. Bangalore-Delhi service commences on 6 June. biotechnology. stating the move would energise the market.2 billion agreement with Indian Airlines for outsourcing of ground handling and maintenance services for a minimum of two years. According to Capt Gopinath. which is targeting India’s increasingly affluent middle large. Network: Bangalore-Mumbai frequency increased from two to three times daily on 20 May.Other details include: Fleet: To operate a minimum of 33 aircraft within the next two years and 55 by 2010. the airline plans to acquire 11 aircraft by December this year and buy one aircraft every month from January 2006. According to UB Group Chairman. Vijay Mallya. by 2010 there will be a new generation of consumers of about 150 million. Who are these people? These are youngsters who are earning money out of information technology. there is a tremendous need for airline capacity as the requirement is huge. said Dr Mallya. Dr. Airlines operating on trunk routes in India are obligated to operate a certain proportion of capacity to remote regions.

and 1.999 (USD69.000 one-way tickets each day priced at INR4.000 one-way tickets each day priced at INR2. The airline is seeking to launch Delhi-Mumbai service in August 2005 3.20) on Mumbai-Bangalore service in May (travel dates not disclosed).999 on Bangalore-Delhi service in June.Meanwhile. Kingfisher Airlines is offering 1.5 In the News • The “King Of Good Times” has done it again: Is the World Ready? 21 .

American Express to lunch co branded card Kingfisher Airlines Open 2007 to feature Global Tennis Kingfisher F1: Marketing. A350. & Mallya's Kingfisher Airlines Plans IPO In 2006 Kingfisher ties up with perfume brands in promotional offer A330 The “King Of Good Times” has done it again:is the world reddy 22 . The Vijay Mallya way ICICI Bank and Kingfisher Airlines Launch Co-branded Credit Card Kingfisher Airlines and dishtv Form an Unprecedented Alliance in the Indian Skies Legends • • • • Kingfisher Airlines to buy 26 percent in Air Deccan for US$135 million Kingfisher becomes first Indian customer for A380.• • • • • Kingfisher Airlines.

plans to fly on multiple routes in US and UK as early as next year. The deal. The Airline Industry has suddenly seen number of players entering the Indian market after being dormant for a very long time. Very recently the Jet Sahara deal has been making news for all wrong reasons. Mallya already has on order five of Airbus’s jumbo A380s. which are only economical to fly on long-haul trips. East Coast. Kingfisher’s strategy is to open long-haul routes and expand the existing domestic routes. which he plans to fly non-stop to the U. The domestic market is grown by over 40% while the international passengers have grown by 25% over last year. One of the reasons for Mallya to put in such a big investment is due to the fact that Indian are flying much more than what they used to earlier. included five A340s. the air fares in some cases have fallen by more than 50%. Kingfisher Airlines. which he plans to fly nonstop to America’s West Coast. Kingfisher Airlines largely famous for its saucy air hostesses and top-notch service.Vijay Mallya. Mallya placed one of the biggest Aircraft orders to Airbus at Paris Air Show. and five additional A340s. This growth rate is expected to carry through at least a decade. Due to the competition within airlines. for 50 Airbus planes. American Express to lunch co-branded card 23 .S. the Indian Liquor and Airline business magnate known for his aggressive and innovative marketing is taking his airline fleet overseas. The order was placed for 50 aircrafts worth $7 billion.

which are widely acclaimed and renowned for their premium quality and service. the American Express Kingfisher Airlines Corporate Card will offer India-based companies an 8-per cent rebate on Kingfisher Airlines air travel which is charged to the card and will also offer card holders an exclusive membership upgrade within the Kingfisher Airlines frequent flyer programme. chairman and CEO. King Club. A market-first. "The card offers companies a rebate of 8 per cent on all Kingfisher Airlines ticket purchases charged to the card." Kingfisher Airlines Open 2007 to feature Global Tennis Legends 24 ." said Vijay Mallya. Kingfisher Airlines Limited. "I am delighted to announce a strategic alliance between two powerful brands. "The American Express Kingfisher Airlines Corporate Card is squarely targeted at the SME segment. The SME market is important to Kingfisher Airlines and we have worked closely with American Express to develop a compelling corporate product that provides exclusive benefits to both the company and its employees.Corporate Card issuer American Express and Kingfisher Airlines today announced a joint marketing initiative with the launch of the first airline corporate charge card specifically targeted at the small to medium sized enterprise (SME) market in the country. whilst card members will automatically be enrolled in the King Club frequent flyer programme and earn Bonus King Miles.

Wimbledon and US Open Champion Lleyton Hewitt and former world number one and Australian and US Open Champion. thanks in no small measure to the combined efforts of Dr.000 Kingfisher Airlines Open is being organized by Globosport. top notch players from around the world will take centre stage at the upcoming Kingfisher Airlines Open 2007. 2006 Australian Open runner-up Marcos Baghdatis. and Globosport Kingfisher F1: Marketing. India's leading sports and entertainment management company headed by Indian tennis ace Mahesh Bhupathi. The inaugural edition of the Kingfisher Airlines Open held last year went down as a hugely successful and popular tournament in the annals of Indian tennis history.Kingfisher Airlines Limited today announced that the second edition of the Kingfisher Airlines Open will take place in Mumbai from September 24 through 30th September 2007. Marat Safin. The Vijay Mallya way 25 . The strong line-up that will battle it out on the hard courts of Mumbai includes powerpacked performers like 2007 Wimbledon semi-finalist Richard Gasquet. Widely acclaimed as South Asia's most prestigious Association of Tennis Players (ATP) event. Vijay Mallya. The US$416. Chairman and CEO of Kingfisher Airlines Limited.

ideally with an Indian driver . and in the process. Given his love for fast cars. If even half of the cricket mania is replicable here. However. it could be some time before Spyker wears the Kingfisher shade of red. chairman Vijay Mallya has most definitely been looking to overtake something and ensure that he is the first to cross the line with the chequered flag. given their ownership in it as a country. other UB group brands could possibly find themselves on the team. TV ratings are set to skyrocket. Spyker Ferrari is most likely what it is. parties. In the interim. as Kingsher presently adorns Toyota's team as part of a $5-million deal ending next year. a move which elevated the group to second place in the global spirits market. Mallya estimates that Spyker could pull in €25 million in television revenues next year.is an almost sureshot route to unlocking untapped marketing potential in a country where half the 1.1 billion population is under the age of 25. ICICI Bank and Kingfisher Airlines Launch Co-branded Credit Card 26 . Kingfisher. happily investing a cool €90 million over a weekend.Since UB Group's acquisition Scottish distiller Whyte & Mackay. a personal F1 team fits like a glove with the rest of Mallya's portfolio. a substantial chunk of which keenly follows F1. and his trademark flamboyance. exponentially expanding marketing opportunities for his flagship brand. and plans to cut costs for the loss making endeavour by relocating some of the research capabilities to India. Kingfisher is most definitely home and dry. with potentially every Indian kid tuning into F1. An Indian team. Mallya has decided to get himself a Formula One team. racehorses.

Ranging from our brand new aircraft to the unique Kingfisher Class experience. to create a co. global Indian. India's first true-value. Kingfisher Airlines Limited"Kingfisher Airlines is the embodiment of the modern.Kingfisher Airlines. This consumer is also the right potential target for ICICI Bank's premium credit card offerings and hence the fit between the two brands is strategically sound. Adds Dr. in its constant attempt to provide enhanced value to its consumers entered into an agreement with ICICI Bank .the leader in the credit card industry in the country. Chairman & Managing Director. This alliance will also further strengthen the corporate relationship that The UB Group has enjoyed with ICICI Bank Kingfisher Airlines and dishtv Form an Unprecedented Alliance in the Indian Skies 27 . full-service airline. India’s second largest Bank. It is in line with this that we have chosen to align with ICICI Bank . The Airline's offering is in line with the expectations of the globally aligned Indian who has high propensity to spend. Vijay Mallya. We are out to redefine the air travel industry in India by offering never-before value to the Indian air traveller. to create a unique co-branded credit card.The target consumer for Kingfisher Airlines is the frequent-flying corporate traveler who seeks delight out of his flying experience. Kingfisher Airlines is committed to provide only the best to its guests.branded credit card that will allow its members a host of privileges and would also serve as an incentive to become loyal travelers of Kingfisher Airlines.

we are not re-defining in-flight entertainment. will demonstrate its services on the country’s fastest growing airline. “In 2005. Hollywood and Bollywood blockbusters. dishtv has achieved yet another milestone by taking digital entertainment to the skies with the launch of LIVE TV on board every Kingfisher Airlines aircraft. Now. across the country. Kingfisher Airlines launched and redefined the way the Indian air traveler perceived the joy of flying. with mobile dish installations on sailing vessels. one step further for our guests. within the footprint of the satellite. Now enjoy watching your favorite channels 35. chartbusting music. making digital content services available on board! Starting services two and half years ago. to bring LIVE TV entertainment for the very first time in the Indian skies. to the remotest areas. dishtv and Kingfisher Airlines. Our association with dish TV has helped us create yet another path-breaking innovation which will revolutionize the way Indians perceive in-flight entertainment and we are very proud that dishtv will now enable LIVE TV onboard every Kingfisher Airlines flight. thanks to dishtv’s revolutionary new technology. Today we take our commitment to take the best of Good Times. Added Dr. but creating history”. dishtv.000 feet high in the sky History has been created in the world of entertainment and Indian aviation. As a part of the tie-up. only on flying with Kingfisher Airlines. Kingfisher Airlines Limited. right from the Siachen to Kanyakumari. dishtv marked its presence by revolutionizing entertainment. the launch of LIVE TV. so much so that our competitors were compelled to follow suit. This association signifies the commitment to enhance in-flight entertainment like never before and a turning point to make the unprecedented happen. 28 . and popular sitcoms. Chairman and CEO. Kingfisher Airlines. the country’s pioneer DTH player.Kingfisher Airlines and dishtv introduce LIVE TV in-flight. With the launch of LIVE TV onboard. We introduced in-flight entertainment on-board all our flights. dishtv conquered the seas. Vijay Mallya. guests will not miss out on any critical news or business event. with the coming together of two large corporate houses. sporting action. With the Kingfisher Airlines alliance. Next. 35000 feet high in the sky.

travel and lifestyle. current affairs.The first aircraft empowered by dishtv complete with the LIVE TV service. chartbusting music. Kingfisher Airlines was the first Indian carrier to offer In-flight Entertainment on board its flights across the country.. 2006. live sporting action. popular sitcoms. relax and enjoy the dishtv enabled Kingfisher LIVE TV Experience. which runs Kingfisher Airlines. will be ready to take-off by the end of December. which operates the low-cost carrier Air Deccan. 29 .Kingfisher Airlines FUN TV will now comprise of 16 channels of LIVE TV showing business news. In addition guests can enjoy 10 channels of chartbusting music from hip-hop to retro to old Hindi melodies on Kingfisher Radio. Kingfisher Airlines to buy 26 percent in Air Deccan for US$135 million United Breweries (Holdings) Ltd. Hollywood and Bollywood blockbusters. 5 channels of the very popular broadcasted video content and 1 moving map channel. is to buy 26 percent of Deccan Aviation Ltd. for US$135 million. So sit back.

GR Gopinath. Kingfisher becomes first Indian customer for A380.8 each to United Breweries (Holdings). Air Deccan’s Chief Financial Officer Ramki Sundaram would be the acting CEO. Gopinath reportedly said. Capt. The order is for five A350. A350. and five A330-200s for regional routes. the association with UB Holdings will make enormous financial and operational sense where each other’s best practices could be shared. &A330 Kingfisher Airlines has become the first Indian carrier to sign a firm contract with Airbus for the A350 and A380 – the company’s newest and largest aircraft. UB Holdings. Mr Mallya would be the Vice Chairman. Deccan Aviation said.82 million and the balance will be paid in next four months. adding that both airlines would complement each other. While Capt.Deccan will issue about 35 million shares at US$3. had been the natural ally for Air Deccan. Capt. UB Group has paid an advance of US$36. Gopinath would be the Executive Chairman of Deccan Aviation.800s plus five A380s for intercontinental services. we felt that in the long term vision of our company. “Keeping in mind various options we had. respectively – as well as for the A330. 30 .” Air Deccan would continue to remain as an independent entity and pursue the low-cost model. while the board would appoint the Chief Executive Officer. an 18 percent premium to Deccan’s closing price on Wednesday. with its Kingfisher Airline. Both would appoint six directors each besides having six independent directors on the board. MD. He said.

and these new Airbus aircraft. but worldwide!” Kingfisher Airlines is already an important Airbus customer – it has ordered ten A320s and three A319s. and those of the A350s in 2012. Chairman of the UB Group. before adding the world’s newest airliner. introducing new standards in passenger appeal – such as personal video. the six-month-old airline of UB Group Chairman and liquor baron Vijay Mallya may well preen its plumage. economy and commonality. not just in India. while the A350 and A380 are destined for longer nonstop flights – such as to the USA. Engine selections have yet to be announced. “ says Dr Vijay Mallya. will give us the lead in competing for their business. one of India’s largest companies and the parent company of Kingfisher Airlines. Imagine flying the good times. “We’ll begin with the Airbus A330. 31 . those of the double-deck A380s in 2010. In quickly establishing a formidable record for quality of service and reliability in the Indian skies. Mallya's Kingfisher Airlines Plans IPO In 2006 Kingfisher Airlines. and then we”ll create a sensation when we become the first Indian carrier with the 21st Century flagship A380. Kingfisher is rapidly becoming a favourite of discerning passengers. The embryonic carrier aims to launch its initial public offering in the second half of 2006 and spread its wings internationally by 2010 under rapacious plans to be the top Indian carrier. It has established itself as an air-travel phenomenon in the Indian market.Deliveries of Kingfisher’s Airbus A330s are due to begin in the third quarter of 2007. the A350. Mallya said. with their unmatched passenger appeal.screens in every seat. which is a great aircraft and already in widespread service. especially among the younger emerging generation. Kingfisher will use its A330s on regional routes. and has options on a further 20 single-aisle aircraft. “India is one of the world’s fastest growing markets. including flights to Europe.

Currently Indian carriers can only fly internationally after five years of domestic operations. The man dubbed the Indian Richard Branson revealed last week he had offered to buy a 100% stake in the embattled Air Sahara. if not most certainly next year". Then it picked up 50 planes for an estimated $2.000 to anyone who purchases flight coupon booklets having two flight coupons for Rs 10000.which positions itself between a budget airline and a full-service carrier-plans to raise around $200 million in its IPO to help finance its purchase of 65 new aircraft to drive its global expansion. A pugnacious Mallya. provides a personal valet service and goes the extra air-mile to treat its passengers like guests. plans to launch non-stop flights from New Delhi. which calls its stewardesses "hostesses". Singapore and Malaysia as well as the Middle East Kingfisher ties up with perfume brands in promotional offer Kingfisher Airlines has announced a “Scent of Good Times” Offer.1 billion at the Dubai air show in November. told reporters at a regional aviation conference he expected to "break-even in the first year of operation if we are lucky. Paul Smith and Kenzo. It has also got its beady eye on routes to China. which has extensive operations on the subcontinent and has access to international routes. under which it gives away reputed perfume brands worth Rs 4. For this. 32 . Bombay and Bangalore to New York by 2010 when it takes delivery of its first A380. and he's confident that it will outbid the competition to buy the entire stake in debt-laden carrier. Kingfisher has tied up with leading perfume brands like Pierre Cardin.Kingfisher. who ranked 26th on the Forbes India 40 last year. Hong Kong. Kingfisher.

Goa. With more than 70 flights daily across India. Kolkata. 2006. Our Partners Program has so far ensured we have offered the best value possible to our guests. 3. The coupons will be valid till June 30 of this year. Hyderabad. Chennai. General Manager. Kingfisher is the first and the only Indian carrier to have signed a contract with Airbus for A380 and A350. 5 Airbus A35033 . Kingfisher Airlines has ordered 5 A380. Life Style and other leading outlets at Mumbai. by buying Kingfisher Airlines flight coupons worth Rs. Gurgaon. In a deal valued at over $3 billion. Pune and Jaipur. Bangalore.6 Products and Services Fleets The first Indian airline to initiate and continue operations with all new aircrafts. Kingfisher Airlines connects to 15 key destinations through a fleet of 11 brand new A320 family aircrafts.The flight coupons can be used for travelling between any two airports where Kingfisher Airlines operates flights. Paul Smith. 10. Kenzo.000/. to provide maximum value to our guests and also create an opportunity to communicate with the relevant target audience through a non-conventional platform.” said Girish Shah. The Kingfisher Airlines Scent of Good Times offer is available at leading departmental stores and chains like Shoppers’ Stop. Delhi. This scheme too enables air travelers to experience the “Scent of Good Times”. “The idea behind the scheme is to associate with like-minded leading international brands. Kingfisher Airlines. like Pierre Cardin.and getting a fabulous offer on leading international brands. Marketing.

The first aircraft from that order was delivered to the airlines on March 31. followed by the A380s in2010 and the A350s in2012.2006. • On November 20. 2005 at the same air show.800 aircraft and 5 Airbus A330-200 aircrafts. Kingfisher Airlines announced that it would be buying 20 ATR 72-500s (plus 15 options). Deliveries for the planes are likely to start from2008. It placed orders for 5 A380s. • On November 21. Kingfisher Airlines placed an order to acquire 30 more A320s in a deal estimated to be worth $2 billion. Engine making joint venture International Aero Engines will supply the engines for the planes. The last of the 20 planes would be handed over to Kingfisher Airlines by2008. The Kingfisher Airlines fleet consists of the following aircraft – • On June 15. 2005 at the Dubai Air Show. The deal is estimated to be worth $500 million dollars with the deliveries starting from March2006. 2006 an Airbus A319 of Kingfisher Airlines was the first aircraft in that class to land on the short older runway at Mangalore e airport. 5 Airbus A350-800 aircraft and 5 Airbus A330-200 aircraft in a deal valued at over $3 billion. 34 . Delivery of the A330s is due to start in late2007. • On January 13. 2005 it became the first (and only) Indian airline to order theAirbus A380.

The airline plans to use this for its Bangalore-San Francisco and MumbaiNew York route.7 AWARDS. Kingfisher signed a contract for five Airbus A340-500 HGWs.• On the April 24. 3.awarded to Kingfisher Airlines by NDTV. EVENTS & SPONSERSHIPS Significant Awards and Accolades • "NDTV Profit Business Leadership Award for Aviation" . Delivery is expected for 2008 • Kingfisher was also the first Indian airline to bring the latest super jumbo Airbus 380 to India.in the service and hospitality Segment against several acclaimed hotels. • "Brand Leadership Award" . 2006. A 380 arrived on 6 may 2007 in New Delhi and in Mumbai on 8th May as part of Kingfisher's second anniversary celebrations. leading banks and other 35 .

• Economic Times Avaya Award 2006 for Excellence in “Customer Responsiveness” . 1 Airline in customer satisfaction" .Skytrax. • “Buzziest Brands of 2005” .Pacific Area Travel Writers Association (PATWA) the biggest travel writers’ organisation. that conducts independent annual surveys across various industries related with Travel and Tourism in order to select the best in each category. Economic Times.Business World • Rated amongst India’s 25 Innovative Companies . • "India's No.Airlines.Survey conducted by Planman Media • “The Best Airline” and “India’s Favourite Carrier” . a UK based specialist global air transport advisor • “Ranked Third in the survey on India’s Most Successful Brand launch of 2005” . representing members from 70 countries across the globe.The prestigious Award is Presented by the highly acclaimed Business Daily.Business World • "Rated amongst India's most respected companies" . • “Best New Domestic Airline for Excellent Services and Cuisine” .Business Standard.Ranked amongst the Top Ten 36 .In a Survey conducted by IMB for The Times Of India. • “Service Excellence for a New Airline” .under the Brand Derby Survey conducted by India’s leading business daily .

Centre for Asia Pacific Aviation (CAPA) Award in the Asia-Pacific and Middle East region. in the survey conducted by agencyfaqs. the 37 .NDTV Events Kingfisher to refresh the Hutch Delhi Half Marathon As was the case with the Mumbai Marathon. Kingfisher is again. involved with the Delhi Half Marathon. • Best New Airline of the Year” .Yahoo India • Rated amongst the top ten in the Best Television Commercial Jingles . • Rated amongst Top Ten Internet Advertisers .com and Brand Reporter.buzziest brands of 2005 & 2006 across product categories. Billed as the richest and most prestigious half-marathon in India.

ranging from authentic Karnataka cuisine to more exotic offerings like Thai and Chinese cuisine.event is generating a lot of buzz and is sure to repeat the thrills and excitement of its Mumbai counterpart Kingfisher has developed a signature campaign to promote its involvement with the event and the same has been hugely appreciated. all in one place! The Kingfisher Festival held on 7th May. Mangal Pandey-The Rising. The festival catered food to suit every taste. the other Kingfisher drinkers won tickets to the first day show. 2005. where winners had the opportunity to mingle with the stars of the film at the premiere in Mumbai. was an event. Also. Rights for the publicity stills were secured and used in press ads and collaterals. the promo was a huge success with consumers getting a 'rise' out of their favorite brew. loads of entertainment and of course. Kingfisher 'Rising' to the occasion Kingfisher was in the thick of 1-Day celebrations across the country. and was attended by about 2000 people. amongst other prizes in their respective towns. Besides the few that got to mingle with the stars. in the run up to the event scheduled on Oct 16th. The promo was conducted in Bangalore. that did just that. 38 . thanks to it's association with Aamir Khan's magnum opus. at the Palace Grounds. Needless to say. your favourite beer. Kingfisher! Kingfisher Festival A selection of cuisines. Mumbai and Pune. Kingfisher organized two 'Marathon Bashes' at popular hangouts in the city where Delhites were able to celebrate the spirit of the marathon with a series of fun games.

Variety was not restricted to the food alone. The variety in entertainment had everyone from toddlers to the senior citizens having a great time. The event was kicked off by Manoj Chopra with his feats of strength. His feat of ripping a telephone directory in half with his bare hands was a rare one. K.S Ramesh, India’s renowned magician also entertained the public with his bag of tricks. A fashion show in true KF-style, showcased the silks designed by the Maharaja of Mysore. For those, who simply wanted to rock, Amit Heri and his band belted out some great fusion music, and the grand finale was a performance by Sufi maestro, Syed Adil Husseini. The highlight of the Festival was Kingfisher beer, ensuring that the crowd truly had a Good Time, courtesy Kingfisher.

Viva Carnival! Viva Kingfisher!

The much awaited Goa Carnival took place in the 1st week of February. The ‘Darling of Goa’ Kingfisher, grabbed yet another opportunity to showcase its strengths in this state by maintaining its high visibility and high impact communication that is Goa - centric.

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Parades at Panjim, Madgaon and Vasco were tied up with Kingfisher, with Panjim having beer stations selling beer on the entire route of the parade. Panjim also saw the Kingfisher float which drew a huge response from the revelers. Similarly all the major carnival parties were sponsored by Kingfisher ensuring that revelers had enough to cheer about late into the nights, chanting Viva Carnival! Viva Kingfisher.

Sponsorship

A Kingfisher-sponsored Toyota F1 car: "Fly Kingfisher" Kingfisher Airlines is an official sponsor of the Panasonic Toyota F1 Team. Kingfisher Airlines has entered a 2 year agreement to be a sponsor of Toyota F1 beginning in 2007. The "Fly Kingfisher" logo appears on the sides of the Toyota F1 Car and on the driver's overalls and helmet.

Some Strategies Adopted by Kingfisher Airlines • Kingfisher Airlines will be emphasizing on spunky, well-done

Interiors and trained airhostesses. • Borrowing from the Kingfisher beer tagline of "The King of Good Times" the theme of "Fly the Good Times" is given to KFA.

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• Kingfisher is planning to capture the Indian budget 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 will be selected through a nationwide

Contest. • The Kingfisher "Fun liners" will have 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. • AIR Deccan has signed a non-poaching agreement with Kingfisher Airlines to ensure that the two airlines do not poach each other's pilots.

3.8 Finding & Analysis
SOME FUTURE STRATEGIES FOR KINGFISHER AIRLINES Market Penetration Strategy (1st Quarter) • Encouraging existing Customer to buy more Showing benefits for using more (associating freebies/extra service/membership with primary offering). • Try to look for foreign entrant's weakness (Virgin Atlantic is lacking 41

Bilateral discussions over seats and code-sharing between the carriers). • New product development. which can lure the youth. • May go for arrangement fashion shows (horizontal diversification). Market Development Strategy (3rd Quarter) • Try to find out new customer group (Old-retired persons). • Special offering for first time fliers. • May go for other things. Diversification (4th Quarter) • May go for other services like international flights etc. 42 . Product Development (2nd Quarter) • Seek additional distribution channels (More tie ups & collaboration: Try seeking collaboration with international carriers. (concentric diversification).in Indian values & tastes).

Sahara or Lowest 43 fares & no Twoclass. Gopinath It has It has Floated It has Naresh Goyal Malwood Group & Ajay Singh PositioningFares Fares lower than those of Jet.Attributes Kingfisher Air Deccan Jet Airways Indian Airlines 25% higher than kingfisher airlines Spice jet 25% lower than that of Jet Price & Sahara Permission to fly to US It has Permission to fly to UK IPO Not yet Going to float in Sept'06 EMI Scheme Targeted Customers Promoters Low end customers UB Group (Dr. Captain Vijay Mallya) G. R. fullservice is low cost but not .

T ANALYSIS OF KINGFISHERAIRLINES STRENGHTS • • • • Large Fleets Experienced Staff Dedicated Departure terminal at Delhi Connectivity with the reservation centers and agents are good 44 .W.O.Comparative Analysis of low cost Airlines S.

• • • Adequate infrastructure and large network People are loyal towards the national carrier Kingfisher Airlines has a modern and complete in – house training Facility WEAKNESSES • • • • • • • • High overheads and huge workforce resulting in lower output Preconceived image of PSU’s Attitude of the staff Ageing workforce ( cabin crew ) Kingfisher Airlines has its socio – economic responsibility ofcatering to the inaccessibility areas at subsidized rate affecting operational expenses Being a dedicated terminal all services rendered at the airport is presumed by passengers to be done by Kingfisher Airlines Inaccessibility of the staff over phone 45 .

Chapter – 4 Conclusion & Suggestions 46 .

Kingfisher Airlines offers world class services to the customer at a nominal rate. 47 . 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 country’s cultural ambassador. 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. 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.1 Conclusion After doing a study of this project representing on Kingfisher Airlines.4. The airline uses the services of one of the advanced plans been operated in the world. It has alliance with many other airlines in this sector.

Collate. • Kingfisher Airlines can introduce Late bird / Night bird flights between metros • Kingfisher Airlines should schedule more number of flights to and from station like Delhi.2 Suggestions • In this extremely competitive environment suggestions are extreme importance. Mumbai.4. Chennai. 48 . Kingfisher Airlines with rich Human Resource should look forward to such suggestion and reward individual whose suggestion were actually beneficial for the organization.

service is the main thing provided by their larger peers. • The next issue to tackle is to properly position itself in the aviation market. customer service and value-added services. 49 . for survival. despite the infrastructure constraints.Bangalore as these sectors account for high payload • • Kingfisher Airlines needs to undertake aggressive Marketing Kingfisher Airlines should undertake customers satisfaction survey • Kingfisher Airlines should make provisions to add up more financial benefits for its passenger • • Flight status should be made available through SMS New approaches should be identified and rewarded so that it serves as example for other. The Challenges Ahead • Experts say that airlines compete primarily on three fortes . While no-frillers fight the price war.low fares. • The critical factor will be (depending upon the model followed) the ability to keep costs low & the offer of an on time service at an affordable price.

which could have been easily do away with. • A certain amount of churn & turmoil for players who don't have the deep pockets (as happened in USA many smaller airlines with out deep pockets fell by the wayside unable to sustain the predatory pricing techniques adopted by their strong opponents). 99. Chapter – 5 LIMITATION OF STUDY 50 . • The outdated Aviation rules in India which compels the low cost carriers to add more to their operating cost. 221 on one seat) looks ridiculous for a ticket worth Rs.• The Indian customers are not that much mature as compared to their American contemporaries. They will not pay more for just mere entertainment or watching TV in a flight of one / one & half hour journey. • Taxes like passenger service fee (PSF = Rs.

• As the data was gathered from the secondary sources. LIMITATIONS • The data could be gathered from secondary source thus any error in the information would have also got replicated in this report. • • Time constraint was the major limitation faced by the researcher. Another problem was knowledge constraint and this report was an attempt to gather as much of relevant data as possible. the validity of the data could not be tested. 51 .5.

• Another constraint was the lack of information regarding proper route map by the organization due to which it could not be included in the project report. Bibliography 52 . However. every effort is made to ensure that these do not in any way adversely affect the results of the study and inject an element of objecting in the report.

2004 2.com www. December 20. Delhi. 2006 Websites • • www. Kothari.com 53 .“King of Good Times”.Bibliography • Books 1. C. “Research Methodology”. Outlook Business.theubgroup..flykingfisher.R. Wishwa Prakashan.

com www.thebusinessedition.com www.com 54 .iloveindia.com www.wikipedia.com www.airtravel.com www.com www.kingfisherair.about.com www.mapsofindia.findarticles.com www.toyota-f1.• • • • • • • • • • www.businesswireindia.coolavenue.in www.

Annexure 55 .

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