Kingfisher Airlines Case Study

7749 Words 31 Pages
Register to read the introduction… Employee shortage: There is clearly a shortage of trained and skilled manpower in the aviation sector as a consequence of which there is cut-throat competition for employees which, in turn, is driving wages to unsustainable levels. Moreover, the industry is unable to retain talented employees.

2. Regional connectivity: One of the biggest challenges facing the aviation sector in India is to be able to provide regional connectivity. What is hampering the growth of regional connectivity is the lack of airports.

3. Rising fuel prices: As fuel prices have climbed, the inverse relationship between fuel prices and airline stock prices has been demonstrated. Moreover, the rising fuel prices have led to increase in the air fares.

4. Declining yields: LCCs and other entrants together now command a market share of around 46%. Legacy carriers are being forced to match LCC fares, during a time of escalating costs. Increasing growth prospects have attracted & are likely to attract more players, which will lead to more competition. All this has resulted in lower returns for all operators.

5. Gaps in infrastructure: Airport and air traffic control (ATC) infrastructure is inadequate to support growth. While a start has been made to upgrade the infrastructure, the results will be visible only after 2 - 3
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The immediate families of these personnel are also eligible for these concessions.
(f) The company has launched Kingfisher First, which is a print campaign to promote its first class service. It is a personalized campaign, which has Vijay Mallya, signing off by saying, "I have created a product which is better than what I would have created for myself."
People: For any airline brand, its people and staff form the backbone as they form the contact points with customers. Kingfisher is known for the excellently trained On-Board crew and the support staff. Sporting red Uniforms in sync with the brand logo, Kingfisher crew was awarded the Best Cabin Crew in central Asia at Skytrax World Airline Awards 2010
Process: Kingfisher provides Online booking of tickets along with tele booking and also through its outlets at all major airports. Passengers are given complimentary in-flight meals and bottled water.
Physical Evidence: The high quality of service can be found evident from the exclusive Kingfisher Lounge at major airports, Personal valets, Pick up facilities, Gourmet Cuisine, In-Flight entertainment etc.

Future

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