Swot of kingfisher airlines

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

1. Product Kingfisher First (International & domestic routes) Kingfisher Class (International & domestic routes) Kingfisher Red – formerly known as Air Deccan (Domestic routes) Flying Chef 2. PriceKingfisher Airlines being a premium airline adopts a premium pricing strategyKingfisher Red its low fare arm adopts a low fare pricing The pricing strategy aviation industry is highly dependent on the behaviour of the crude oil prices, dollar rates and competition. Fuel at present accounts for 45 per cent of an airline’s total operating cost.3. PlaceKingfisher Airlines operates services to 80 destinations domestic as well as international. International operations started on 3 September 2008, with a flight from Bangalore to London. One of the reasons to acquire Air Deccan was to gain entry on to the international circuit, by gaining advantage on Air Deccan`s eligibility to fly international (as per DGCA rules) It also has plans to add several international destinations such as Bangkok, Hong Kong, Karachi, Kuala Lumpur, Lahore, Malé and Singapore in 20094. PromotionKingfisher Airlines as a brand is promoted in many ways When it was launched Yana Gupta was the brand ambassador Hoardings/ Press Release Kingfisher Airlines sponsors Mumbai ATP Open KF First sponsors Mtv Style Awards 06 Kingfisher kicks off Rs 1 billion campaign (On Launch of its international flight to London) Formula 1 team (Force India) IPL team (Royal Challengers) Red Pouch The colour “RED” King Club frequent flier programme Vijay Mallya himself is a brand ambassador for all his brands including Kingfisher Airlines5. Physical EvidenceKingfisher Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts. Kingfisher Airlines was the first airline in India to operate with all new aircraft. On June 15 2005 Kingfisher Airlines became the first Indian airline to order the Airbus A380, to be delivered by 2014 Fleet size of 73 and 137 orders placed The planes have the best in-flight facilities that match world class standards6. ProcessKFs Tickets through ATMs The Roving Agent Web Check-In FlyBuy SMS Flight Updates Mobile Ticketing7. People

Being a service industry it has two types of customers: External Customers (Passengers) Internal Customers (Employees) Kingfisher Airlines uses the term “Guests” for its external customers. Dr Mallya tells his crew to treat every guest “In the same way as if they have visited his home.” In an airline,Cabin Crew play an important role because they are the ones who deliver the service and therefore they are termed as The Walking Billboards of an organization.

2.2) PESTEL analysis:

For analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization’s supply and demand levels and its costs (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). The “radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole

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organization (Tsiakkiros, 2002). PESTEL analysis is one of them that are merely a framework that categorizes environmental influences as political, economic, social, technological forces, environmental and legal. The results can then be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans (Byars, 1991; Cooper, 2000).

Kotler (1998) claims that PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.

The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research reports. PEST also ensures that company’s performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). PEST is useful for Kingfisher airlines because they decided to enter its business operations into new markets and new countries. The use of PEST, in this case, helps to break free of unconscious assumptions, and help to effectively adapt to the realities of the new environment. So Kingfisher airlines before entering into market or country they should analyse the PESTEL then they should operate. The factors which will affect the airline industry are

Political factors:

Whether Government support for national carriers

Knowing Security controls

Restriction on migrations

Economical factors

· How will be the National growth rates i.e. whether increase or decrease

· Fuel prices will increase or decrease. For example fuel rates are increased then its necessarily to increase the price of the fare. Again there is a problem if fare is increased the number of customers travelling by airways will reduce, it leads to less turn over.

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Social

· rise in travel by elderly

· student international study exchanges

Technological

· fuel-efficient engines and airframes

· security check technologies

· teleconferencing for business

Environmental

· noise pollution controls

· energy consumption control

· Land for growing airports

Legal

· Restrictions on mergers

· Preferential airport rights for some carriers