KF Airline PESTEL Analysis

7/31/2019 KF Airline PESTEL Analysis

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Kingfisher Airlines

.The king of good times


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One of the fastest growing industries in the world.

Origin of Indian aviation industry can be traced back to the

year 1912.

India has the private airlines as its key players

75% of the market share is owned by the private sector.

Problems that the Indian aviation industry is facing and thus

immediate attention is needed.

AVIATION INDUSTRY


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High rising prices of the ATF.

The cost of labour is rising in our country

Shortage of skilled labour

Infrastructure constraints.

Main players in the aviation industry....

Jet airways

Kingfisher

Indian

Spice jet

Air India

AVIATION INDUSTRY


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Current Scenario

Jet Airlines + Air Sahara-> Jet & Jet Lite -> 29.4 % Kingfisher + Deccan -> 28.9 %

Indian Airlines + Air India -> 19.8%


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Dr Vijay Mallya is the Chairman and CEO of Kingfisher Airlines

Kingfisher Airlines Limited launched scheduled airline services on

May 9, 2005 with 4 daily flights between BOM & BLR and one A-320

aircraft.

There are tools for mood lighting such as web chat, inseat plugins for

music, liveTV with 16 channels on each seat

100 percent E ticket airline

Kingfisher airlines


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POLITICAL FACTORS

1) Open sky policy

2) FDI limits: 100% for Greenfield airports

74% for the existing airports100% through special permission

49% for airlines.

ECONOMICAL FACTORS

1) Contribution to the Indian economy.

2) Rising cost of fuel.

3) Investment in the sector of aviation.

4) The growth of the middle income group family affects the aviation sector

PESTEL ANALYSIS


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SOCIAL FACTORS

1) Development of cities leads to better services and airports.

2)Employment opportunities.

3)Safety regulations.

4) The status symbol attached to a plane travel.

TECHNOLOGICAL FACTORS

1) The growth of e-commerce and e-ticketing.

2) Satellite based navigation system.3) Modernisation and privatisation of the airports.

4) Developing green field airports with private sector for example in

Bangalore the airport corporation limited.

PESTEL ANALYSIS


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ENVIRONMENTAL FACTORS

1)The increase in the global warming.

2)The sudden and unexpected behavior of the atmosphere and the

dependency on whether.

3)Shortage of the infrastructural capacity

4)Tourism saturation.

LEGAL FACTORS1) FDI limits

2) Bilateral treaties

3) Airlines acquisitions and the leasing cost.

PESTEL ANALYSIS


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PRODUCT

Currently the kingfisher airline operates the aircrafts like the airbus

A 320, A 319-100 and ATC-72.

After acquiring the Deccan kingfisher has started a new fleet known

as kingfisher red.

Here we emphasis on the kingfisher airlines.

The 4Ps .


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PLACE

Covers even the toughest terrains in the country, and the services

ranges from Ahmadabad to Agartala and to the major cities such as

Delhi, Bangalore, and Chennai etc. The main strategy that kingfisher follows is to target the metro cities or

the tier 1 cities in India.

PROMOTION

There are many events and advertisements through which kingfisherairlines is promoted.

There are multiple touch points and finer promotional services working

for the promotional activities.

Loyalty and frequent flyer programs are also carried out.

The 4Ps .


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PRICE

The price segments that kingfisher targets is the higher income group

as well as the upper middle class background.

There are a few segments that are majorly for the youth and the high

lifestyle segments.

Sec A, sec B+ socio economic class mainly in the age group of 25-45

years are the main segments for which there is a specific prices

offered by kingfisher.

Some of the services offered by kingfisher do emphasis on their

policy to target those segments which are willing to pay for luxury.

The 4Ps .


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S.W.O.T. ANALYSIS

STRENGTHS Strong brand value and reputation in the minds of customers.

Quality of the service.

Route rationalization.

First airline to have a new fleet of airbuses. Quality and continuous innovation.

WEAKNESSES

Still a not in profit organization. High ticket pricing.

Facing a tough competition from competitors.


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OPPORTUNITIES

The expanding tourism industry.

The non penetrated domestic market.

International market.

Untapped air cargo market.

THREATS

Competitors

Infrastructure issues. Fuel price hike.

Tourism saturation

Economic slowdown.

Promotions and sponsorship declining.

S.W.O.T. ANALYSIS


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SUGGESTIONS

Reduce the labor cost

Simplify the flight operations

Offer more transparent pricing

Get smart on fuel

The process of acquiring spice jet if

complete would make kingfisher the largest

player in the aviation industry

Different modes of pricing should be taken

care of.


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KF Airline PESTEL Analysis

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