You are on page 1of 3

Strengths: - Strong brand image - Focus on LCC segment as well with Kingfisher Red - Financial backing of UB group - Strong

and competent management Weakness: - High maintenance cost at ground and airline Opportunities - Poor service of Indian Airlines / Air India - Problems with Jet airways (strikes etc) - Growth in air travel, with businesses and markets doing better. - More leisure travelers (Eg spicejet has recently added a new flight from Mumbai to Goa) Threats: - Rising oil prices play havoc with prices and therefore with load factor - Other low cost airlines providing better services with their newer airplanes (Kingfisher Red has old aircrafts) - Government initiatives in railways with fast running trains like Duronto. - Better roads mean business travelers may prefer taking the road than the train for short distances, since it comes out cheaper and there are no delays at airports etc. - Threat of terrorism leads to fewer international travelers

ntroduction Kingfisher Airlines is owned by a multi millionaire Mr. Vijay Malaya. Organizations core business strategy was to produce drinking bear but entering into the airline industry is a part of their expansion strategy. The organization entered the airline business which was facing stiff competition and have managed to enter it in a novel approach. Strengths

y y y y y y y

The brand of kingfisher was experiencing growth day by day and from 6% market share in the first six months the airlines achieved 7.6% market share in 2006. Kingfisher Airlines was getting recognized and in the first two years the airline company received awards like Best New Airline of the year 2005 and Service excellence award for a new airline in 2006. KFA posses the element of change in its strategy and its owner Vijay Malaya changed the positioning of the brand by targeting the youth and mobile customers. The brand was successfully marketed as a FUNLINER (Fernando, 2006). The crew of Kingfisher Airlines is well organized and they are fully equipped technically. The posses the best management team thats manages the entire staff and devises strategies for them. Weaknesses KFAs share was round about 8% in the Indian market and their biggest flaw was that they keep on changing the strategies. They didnt stick to single strategy and thats why results are not viable enough. The company is doing well but they are not presenting good numbers. In the beginning the airline was established as a single class airline but after the changing trends of the business Kingfisher Airlines changed its strategy when they focused on the business class.

Opportunities

y y y

Competition is increasing in the country and new markets are opening up for entrants like Kingfisher Airlines. People in India are changing their preferences and because of the low rates people are adopting airlines as their mode of traveling. Domestic customers of India for have increased from 26.36million to 40.09million (Fernando, 2006). Promoting fun might be a viable option because its an unconventional method in the airline industry. Similarly, targeting film starts, models and sportsmen can also be a viable option for the company.

y y y y y y

1. STRENGTHS Strong brand value and reputation in the minds of the consumer UB group as the parent company First Indian airline to have a new fleet of planes Quality service and innovation More than 80 destinations Less than 100 people (employees) per aircraft 2. WEAKNESSES Still in RED (still to Break Even) (An outstanding of 950crs only to oil marketing cos till may end ) High ticket pricing (KF First & Class) Tough competition from Indian as well as international players 3. OPPORTUNITIES If able to survive for a couple of years, then can have a big market share Untapped International Markets Untapped cargo market Expanding tourism business 4. THREATS Falling demand Over capacity in the skies ATF prices Economic slowdown Infrastructure issues

y y

y y y y

y y y y y