Assignment

On
Preparatory Studies

Jaipuria Institute of Management, Indore

PGDM Batch 2018-20

Submitted to: Submitted by:

Dr. Girish Agarwal Ritika Agarwal
Neelam
Anurag Mishra
Karan Sharma
Apoorva Tanvani
Mary Gervasis
Writeup on Comparison between Kingfisher airlines
and Indigo
Kingfisher Airlines was a excellent example of a mismanagement
which turned into a scam later on. Airline was established in 2003
and its first aircraft had took off in 2005. Though it was the second
largest airline and the quality of services provided was excellent, the
airlines lacked in operational efficiency. Few reasons of the downfall
of Kingfisher Airlines were the lack of CEO or managing director in
the company. Flying on non-profitable routes, change in strategies
time to time, unsustainable business model.
The company was confused weather it should have a low cost model
or premium cost model. It kept on shifting between the economy,
premium and mixed segments. The company was already at a loss
and continued to take wrong decisions. The company invested a
huge amount of money to expand internationally at very low
margins. The next mistake made by the airlines is the acquisition of
loss making Deccan airlines. Again the company was not able to
position kingfisher Red (previous deccan Airlines) as a low cost or
premium cost carrier. Due to this Kingfisher became competitor of its
own acquired company i.e. Kingfisher Red.
On the other hand Indigo has a excellent business model. It is known
for its Standardisation and operational excellency. It has been always
clear about its target audience and won people’s trust as a low fare
carrier. It has generated profits.
For every company it is very important to do right calculation and
future assumptions which are lacking in Kingfisher airlines.