Kingfisher Airlines, India ‘s favorite air hose, is India ‘s largest air hose runing more than 400 flights a twenty-four hours and has web of 72 finishs, with regional and long-haul international services. Its motto is “ Fly The Good Timess ” .It is owned by UB Group ( United Breweries ) based in Bangalore which is the universes figure three liquors company.Kingfisher is one of six air hoses in the universe along with Cathay Pacific Airlines, Asiana Airlines, Qatar Airways, Malaysia Airlines and Singapore Airlines to hold a five-star evaluation from Skytrax, a UK based administration which is the universe ‘s prima independent travel forum, it is the most accepted and esteemed award that honours air hose Product and Service Quality Excellence.
Indian Aviation Industry
India is one of the fastest turning air power markets in the universe, it is soon graded figure nine and is continuously turning at the astonishing growing rate of 18 % and have the possible to turn farther at a higher rate.
Indian air power industry took it wings in December 1912 when first flight was operated between Karachi and Delhi, this flight was operated by the Indian air services in coaction with UK based Imperial Airways as an extension of their London Karachi path.In 1932, JRD Tata founded TATA air hose, the first Indian air hose. In 1948 TATA air hose in coaction with the authorities founded Air India.
The version of unfastened sky policy in 1990 made the industry undergo rapid and dramatic transmutation, it allowed the foreign air hoses of any state to run and it besides helped private companies to get down off their operations in India.
Major key participants in Indian air power industry are Kingfisher Airlines, Jet airways, Air India, Spice Jet, Indigo Airlines etc.
Kingfisher air hoses started its operations on 9 May 2005 with four leased airbus A-320 aircrafts with its inaugural flight from Mumbai to Delhi, at the clip the president Dr Vijay Mallya said that he is “ committed to accomplishing the aspiration of doing Kingfisher Airlines India ‘s largest private air hose both in capacity and market portion by 2010. ” he did turn out it in the twelvemonth 2009 itself.In the one-fourth stoping Apr – Jun 2009, Kingfisher Airlines carried more than a million riders in and across India, giving them the highest market portion amongst air hoses in India. It mergered with Air Deccan in December’2007 and renamed it as Kingfisher Red, Kingfisher Airlines low cost theoretical account in India.
Kingfisher Airlines soon serves 65 domestic and 7 international finishs in states acrossAsia, Gulf andEurope.
Domestic Destinations include Major Cities like Delhi, Mumbai, Bangalore, Chennai, Calcutta, Hyderabad, Goa, Srinagar, Jaipur to call a few.
International Destinations Include London, Dubai, Hong Kong, Singapore, Dhaka, Colombo and Bangkok.
Kingfisher Airlines ‘ fleet presently consists of ATR 42, ATR 72 And Airbus A – 320 Family of Aircrafts for their domestic and short draw international flights and they use Airbus A 330-200 aircrafts for their long draw international flights. Soon there are 69 aircrafts in operation and the orders for another 34 aircrafts have been placed and are due for bringing in twosome of old ages.The mean age of the aircrafts in kingfisher air hoses as on July 2009 was 2.9 old ages.
Current International Operations Management Strategy of Kingfisher Airlines.
In international operational direction the chief motivation of the administration is to pull off its operations expeditiously and efficaciously i.e. doing best usage of all the resources available to them and supplying clients with the high value merchandises and services.
As we all know money is the cardinal driving force in air power industry due to its immense set up cost and current fuel monetary values being at all clip high so pull offing the air hoses operations in a really efficient manner is imperative to accomplish low operating costs, maintaining in head the quality of service people perceive for the air hoses.
Kingfisher ‘s operational scheme is surrounded by the company ‘s vision and values
“ The Kingfisher Airlines household will systematically present a safe, value-based and gratifying travel experience to all our invitees. ”
This is our overruling value. In our line of concern, there is no via media.
We are all in the cordial reception concern ; we must ever seek to function our invitees and derive their trust, good will and trueness.
We seek to construct an administration with people who choose to be happy, and will endeavor to act upon our invitees and colleagues to be happy excessively.
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.
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
The Transformational Model For Kingfisher Airlines
- Materials – It ‘s the aircrafts that Kingfisher operates for its operations
- Information – Continuous Research and Surveys of the finishs where people want to wing
- Customers – It ‘s the riders who will acquire on the aircraft
- Facilities – Its the airdrome from where the riders embark and disembark from the aircraft
- Consumables – It ‘s the synergisms between the operations and technology and invitee services section
- Peoples – They are the most of import factor while presenting the whole experience. It includes Pilots, cabin crew, land staff, applied scientists etc.
They all go through the transformational procedure
- Goods and services – It ‘s the phase when you reach your concluding finish. It ‘s the Overall experience of acquiring into the going airdrome, so winging and so go outing the arrival country of the arrival airdrome.
Kingfisher footings its input as the figure of seats available per aircraft and the end product is the figure of riders flown on that aircraft.
Kingfisher soon flies to seven international finishs in states acrossAsiaandEurope.
Kingfisher Airlines had adopted scheme of amalgamations and acquisitions and strategic confederations with different air hoses companies both in the local and foreign markets to come in the planetary air power market and so spread out their international operations.
Kingfisher air hoses started its operations on 9 may 2005 and wanted to wing overseas in 2008, as they were reasonably new to the air power market and Indian civil air power ministry has a regulation that no Indian bearer can acquire a licence to wing abroad till the clip they complete at that place five old ages in Indian skies, this prompted kingfisher to look for possible bearers who were nigh to there five old ages of completion with whom they could unify with and get down their international operations. Finally there zeroed in on Air Deccan, a low cost bearer in India who were finishing at that place five old ages of operations in August 2008 and kingfisher merged with them on 20 December 2007 and acquired 46 per centum interest in Deccan air power.
It was decided that the merged entity will b called as kingfisher air hoses and the barter ratio was fixed at 7: 3, that meant the stockholders in UB group promoted kingfisher air hoses will have three portions of deccan air power for every seven portions they held. The amalgamation non merely gave kingfisher air hoses the license to wing abroad but besides gave them an chance to synergize the operations of both the companies in aircraft use and care as both use Airbus and ATR ‘s, cabin and cockpit crew, paths were rationalised, slots use improved riders got better connectivity as kingfisher flew to chief tubes and deccan was functioning little metropoliss. Air deccan has been renamed as kingfisher red which flies as a low cost theoretical account for kingfisher air hoses.
Last twelvemonth kingfisher had a really of import strategic confederation with jet airways one of their chief rivals in India. , this confederation had a major influence on the market portion in the Indian air power market as the portion went on to about 58 % , the major ground behind was the confederation was to assist them cut down cost and increase efficiency.
The confederation involved codification sharing understandings on each others flight on both domestic and international sectors joint fuel direction, common land managing staff and equipments, an interline understanding, cross selling each others flight through a planetary ticketing system, the confederation besides enhanced the crew use as both cabin and cockpit crew of similar air types could be used and they all could utilize the common preparation installations and all the riders could utilize the any of the frequent winging programmes of the two air hose.
One of the major international schemes that kingfisher uses is of partnerships with assorted major trade names of the universe in assorted sectors viz. air hoses, recognition cards, auto leases, hotels, publication etc through their frequent winging plan called male monarch nine.
It is India most rewarding frequent winging plan in coaction with premium spouses such as:
These ties up with the large names in this air power market gave them a large encouragement as it enhanced their trade name image every bit good. Passengers were acquiring far more benefits after these bind up such as they got option to utilize their frequent winging milage added on to the card of their pick on any one of the above mentioned air hoses. They could utilize there free tickets earned through milage on any of the spouse air hoses.They could utilize the installations such as airdrome sofas of any of the stated air hoses
The confederation with the recognition card companies was an of import move for kingfisher as before many people used to do there purchases from recognition cards merely in retail sector and now it besides gave them an option to buy tickets straight form the air hoses and besides use it as a frequent winging card and acquire the advantages of the card harmonizing to there tier benefits, such as salvation and ascents.
These ties up with the remainder of the auto leases, hotel and printing companies gave them an border as riders could really derive points on every dealing they were making with these companies and all the points were acquiring accumulated under one card and hence giving them tonss of benefits in a really short span of clip.
Then came at that place featuring confederations which took them excessively new highs they tied up with Toyota Panasonic to make a Formula 1 squad called Force India. They entered this coaction as Formula 1 is one of the most popular and most viewed athleticss in the universe and gave them a immense worldwide spectator ship and so came the biggest of them all when they bought a Indian Prime Minister conference ( Cricket ) called Royal Challengers and was vastly promoted all over the universe, both these mega featuring games, gave them a instant worldwide exposure.
This strategic confederation with different planetary trade names non merely set them on a planetary map but besides increases their trade name image and repute in the mentality of the travelers.
Kingfisher air hoses outsource at that place ground operations in their bases outside India they merely have 4 to 5 direct employees in every state where they operate that include station director, invitee services director, invitee services supervisor, selling and gross revenues director rest all are outsourced from the land managing company, they take attention of the cheque in, technology and remainder of the airdrome operations.
There land managing company in London is ( CGSL ) Cobalt Ground Solutions Limited ( a amalgamation between Air France Services Limited AFSL and KLM Ground services KGS ) , in Singapore they are handled by ( AAT ) Asia Airfreight Terminal and in Hong Kong by ( JASL ) Jardine Airport Services Limited.
Future of kingfisher air hoses
Kingfisher air hoses have major international enlargement programs and their current international scheme seems to be executable but to stay sustainable they have to continuously innovate and improvise.
Airlines besides plans to raise about 600 Million dollars out of which 400 million dollars will be raised through private equity, another 100 million through right issue and rest 100 million dollars by planetary depositary grosss ( GDR ) , by March following twelvemonth.
To suit this immense hereafter international enlargement kingfisher programs to add more wings they have placed orders for new aircrafts to airbus for the international and domestic usage
To beef up its current international operations scheme of amalgamations and acquisitions kingfisher needs a long term strategic operations be aftering which will provide to its immense enlargement in twosome of old ages that would in peculiar cater to the Structural determinations doing countries such as
- Facilities and substructure
Airports is one the most of import factor when any air hoses consider there international operations. Kingfisher flies international soon from Mumbai, Bangalore and Calcutta airdromes, but shortly they would be winging from Delhi as good which is the biggest international airdrome in India. Bangalore has late got trade name new airdrome with first-class installations and other international airdromes are being upgraded, a new international terminus ( T3 ) is being built at Delhi Indira Gandhi International Airport and Mumbai Chattarpati Shivaji International Airport.
The capacity is measured in footings of the figure of seats on the aircraft and the capacity of the airdromes to manage the riders. kingfishers soon flies with 30 first category and 187 economic system seats on their A 330 on their long draw flights, harmonizing to the present ATF ( air power turbine fuel ) monetary values kingfisher interrupt even when they have load factor of 70 per centum. They calculate their grosss and siting capacity with the undermentioned ratios
- Gross rider stat mi =
- Gross per available place stat mi =
- Available place stat mi =
( No. of gross paying riders ) X ( No. of stat mis flown during the period )
( Gross )
( No. of seats available )
( No.of seats available for riders ) X ( No. of stat mis flown during the period )
The capacity of the international airdromes are besides continuously being increased to run into the turning demand of international riders, a new international terminus edifice is being made in Delhi international airdrome that will be functional in three months clip it will be able to manage 60 million riders per annum ( mppa ) , to the current capacity of 25 million.
Kingfisher have reengineered there operational scheme by presenting a universe category IT application to give them an border and optimise their operations and it was done by agitating custodies with Sabre air hoses solutions which is a planetary air hoses package and services company. Its chief purpose was to supply more than 20 endeavor applications such as rider reserves, pricing, fining and look into in package ‘s to increase their operational efficiency. They besides signed a direct connect handiness understanding with saber which enables kingfisher to market and sell its merchandises through all saber connected terminuss worldwide
They use Rolling agents every bit good for cheque in, when its busy they there ground staff forces keeping PDA ‘s and a little pressman. They approach these riders waiting in the waiting line and they check them in and publishing embarkation cards at that place and so they can drop off their bags at the particular counter without any demand to stand in the waiting line. It ‘s the first clip this sort of nomadic cheque in services are being provided in India.
Even the new aircrafts they have ordered are all equipped with latest engineering with all the advanced safety characteristics plus they are fuel efficient and create less pollution than the traditional aircrafts.
Very of import from the point of position of an air hose that it has the most appropriate supply concatenation webs, those facilitate their overall operations. Timing is the key in air power and all the supply concatenation spouses ‘ work in tandem to maintain the aircrafts on clip and therefore assisting air hoses to keep the OTP ( On Time Performance ) .
Some of the sections are in house like technology, operations, cabin visual aspect, despatch, invitee services, lading and security, few of them are outsourced like catering, refuelling etc.
It is imperative and the 2nd most dearly-won resource after aircrafts that the air hoses spend money on. It includes recruiting and preparation Captains, pilots, applied scientists, cabin crew, land staff, land animal trainers etc.
Kingfisher spends a batch of gross to upkeep these valuable resources, the exile captains be a batch of money so now they are developing more and more pilots so that they can cut down the cost for this they have opened there ain preparation academies.
Staff good being have ever been the premier docket for kingfisher air hoses and it even reflects in their vision and values.
They are best in the Indian air power industry and have received several awards for their service quality and are besides rated as a 5 star air hose by skytrax as mentioned earlier, this is all because of the universe category cabin crew, captains, land forces which speaks a batch about ther human resource policies.
A comprehensive competitory advantage demands to be maintained as the air hoses operates in a extremely competitory industry and the undermentioned porters five forces theoretical account will assist them analyzing their place in the market and place themselves consequently.
Porters five forces Model
- Dickering Power Of Suppliers –
- Dickering powers of clients –
- Menace of new entrants –
- Menace of replacements –
- Competitive competition within the industry –
In this Case the Bargaining power of providers is rather low, as there are chiefly three providers in air power industry viz. Airbus, Boeing and ATR. Kingfisher places all there orders to airbus and are they have a strong relationship with them. Switch overing to a new provider would intend a really high care cost for another type of planes and developing the cockpit an cabin crew another clip and money consuming act.
The bargaining power of clients is rather high as it ‘s a extremely competitory market and with so many air hoses winging to the same finish it gives the riders the pick to take the air hose and therefore all air hoses by and large charges lower limit of menu in conformity to their rival ‘s monetary value to make full their aircrafts.
The air power industry as a whole is extremely competitory and there are opportunities that few air hoses that may merely wing domestic may besides shortly get down winging international, authoritiess can alter their sky policies at any given clip and can ease the norms for domestic participants to wing abroad. Otherwise a typical new entrant is rather difficult top get into as the air power industry is besides enduring immense losingss and the cost of come ining this industry is significant.
The menace of replacements is negligible as you can either travel by air, route or H2O. A client winging domestic may still acquire a opportunity to acquire on the route or a little trip down in sail to travel to a nearby topographic point but non on international scenario it ‘s more clip consuming and unrealistic.
It operates in a extremely competitory environment therefore ensuing in really low returns as the cost of competition is so high, the chief rivals for kingfisher is virgin Atlantic, British air passages, jet air passages, emirates and Singapore air hoses.
Challenges that kingfisher is presently confronting and will confront in future
- Rising ATF costs
- Carbon Footprints
- Government Policies and other regulative
Rising monetary value of Air Turbine Fuel ( ATF ) is one major concerns for all the air hoses worldwide, soon its costs around 76 $ per barrel and experts are stating it will travel upto 100 $ per barrel in twosome of months as rough oil monetary values are increasing once more, but this is still better as last grand 2008 the ATF was bing them 150 $ per barrel, it was the common cause for all the air hoses to register losingss and infact many air hoses went bankrupt. These high fuel costs triggers all air hoses to increase the menus therefore ensuing in less people going and hence loss of gross.
The sum of CO2 emanations from the air power sector is quickly increasing and presently is turning about 3 – 4 % per twelvemonth. Hence more modern fuel efficient and less CO2 breathing aircrafts are the demand of the hr.
These yearss air hoses worldwide are plighting to cut down the C emanations by 50 % by 2050 that will be compared with 2005 degrees and besides to do the industry growing carbon impersonal by 2020.Hence kingfisher air hoses while puting orders for there future aircrafts have kept all these points in head.
We can cipher are carbon footmarks per flight by snaping on the undermentioned nexus
It is a changeless menace from the authorities organic structures as they can come up with new unfastened sky policies leting more competition and more flights to be operated and besides from other regulative as they can come up with a new ordinance and norms sing winging conditions, labour Torahs that can do a industrial agitation ensuing in work stoppages.
Therefore we see that Kingfisher ‘s international operations scheme is based on amalgamations and acquisitions and how closely they monitor there structural based determinations countries as discussed above to optimise their operations.
They have monolithic ties and partnerships with planetary trade names all over the universe these strategic confederation with different planetary trade names non merely set them on a planetary map but besides increases their trade name image and repute in the mentality of the travelers many creases. Kingfisher air hoses have major international enlargement programs and their current international scheme seems to be executable but to stay sustainable they have to continuously innovate and improvise
The hereafter for kingfisher ‘s operations is based on monolithic enlargement they are be aftering to get down following twelvemonth every bit shortly as they start acquiring new aircrafts and blessings from the civil air power ministry, we besides highlighted how few factors can impact them and what they can make to minimise them.
Hence we can see that how kingfisher ‘s international operations work and what ‘s the hereafter of this elect air hose and why does it has the ticket line “ Fly the Good Timess ” .
- Kingfisher Airlines Company website www.flykingfisher.com
- UB groups website www.theubgroup.com/.india
- www.business-standard.com/india/storypage.php? autono=31511
- hypertext transfer protocol: //www.energyefficiencynews.com/policy/i/2646/
- hypertext transfer protocol: //www2.icao.int/en/carbonoffset/Pages/default.aspx
- hypertext transfer protocol: //student.dcu.ie/~slejhad2/porter.htm
- Barnes, D. ( 2008 ) Operations Management: An international position
- Marketing Management 12th edition ( 2007 ) Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha