A Project Report On Kingfisher Airlines

Submitted by
Kaustubh Anilrao Dalal 11BSP0445

Salient Feature Indian Aviation Industry

Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries. In the past decade, air travel has grown by 7% per year. Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion passengers last year. In the leisure market, the availability of large aircraft such as the Boeing 747 made it convenient and affordable for people to travel further to new and exotic destinations. Governments in developing countries realized the benefits of tourism to their national economies and spurred the development of resorts and infrastructure to lure tourists from the prosperous countries in Western Europe and North America. As the economies of developing countries grow, their own citizens are already becoming the new international tourists of the future. Business travel has also grown as companies become increasingly international in terms of their investments, their supply and production chains and their customers. The rapid growth of world trade in goods and services and international direct investment have also contributed to growth in business travel. Worldwide, IATA, International Air Transport Association, forecasts international air travel to grow by an average 6.6% a year to the end of the decade and over 5% a year from 2000 to 2010. These rates are similar to those of the past ten years. In Europe and North America, where the air travel market is already highly developed, slower growth of 4%-6% is expected. The most dynamic growth is centred on the Asia/Pacific region, where fast-growing trade and investment are coupled with rising domestic prosperity. Air travel for the region has been rising by up to 9% a year and is forecast to continue to grow rapidly, although the Asian financial crisis in 1997 and 1998 will put the brakes on growth for a year or two. In terms of total passenger trips, however, the main air travel markets of the future will continue to be in and between Europe, North America and Asia. Airlines' profitability is closely tied to economic growth and trade. During the first half of the 1990s, the industry suffered not only from world recession but travel was further depressed by the Gulf War. In 1991 the number of international passengers dropped for the first time. The financial difficulties were exacerbated by airlines overordering aircraft in the boom years of the late 1980s, leading to significant excess capacity in the market. IATA's member airlines suffered cumulative net losses of $20.4bn in the years from 1990 to 1994. Since then, airlines have had to recognize the need for radical change to ensure their survival and prosperity. Many have tried to cut costs aggressively, to reduce capacity growth and to increase load factors. At a time of renewed economic growth, such actions have returned the industry as a whole to profitability: IATA airlines' profits were $5bn in 1996, less than 2% of total revenues. This is below the level IATA believes is necessary for airlines to reduce their debt, build reserves and sustain investment levels. In addition, many airlines remain unprofitable.

To meet the requirements of their increasingly discerning customers, some airlines have to invest heavily in the quality of service that they offer, both on the ground and in the air. Ticketless travel, new interactive entertainment systems, and more comfortable seating are just some of the product enhancements being introduced to attract and retain customers. A number of factors are forcing airlines to become more efficient. In Europe, the European Union (EU) has ruled that governments should not be allowed to subsidize their loss-making airlines. Elsewhere too, governments' concerns over their own finances and recognition of the benefits of privatization have led to a gradual transfer of ownership of airlines from the state to the private sector. In order to appeal to prospective shareholders, the airlines have to become more efficient and competitive. Deregulation is also stimulating competition, such as that from small, low-cost carriers. The US led the way in 1978 and Europe is following suit. The EU's final stage of deregulation took effect in April 1997, allowing an airline from one member state to fly passengers within another member's domestic market. Beyond Europe too, 'open skies' agreements are beginning to dismantle some of the regulations governing which carriers can fly on certain routes. Nevertheless, the aviation industry is characterized by strong nationalist sentiments towards domestic 'flag carriers'. In many parts of the world, airlines will therefore continue to face limitations on where they can fly and restrictions on their ownership of foreign carriers. Despite this, the airline industry has proceeded along the path towards globalization and consolidation, characteristics associated with the normal development of many other industries. It has done this through the establishment of alliances and partnerships between airlines, linking their networks to expand access to their customers. Hundreds of airlines have entered into alliances, ranging from marketing agreements and code-shares to franchises and equity transfers. The outlook for the air travel industry is one of strong growth. Forecasts suggest that the number of passengers will double by 2010. For airlines, the future will hold many challenges. Successful airlines will be those that continue to tackle their costs and improve their products, thereby securing a strong presence in the key world aviation markets.

Company Profile
Kingfisher Airlines Limited is an airline group based in India. Its head office is in Andheri (East),Mumbai and Registered Office in City, Bangalore. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-cost carrier Kingfisher Red. The airline has been facing financial issues for many years. Until December 2011, Kingfisher Airlines had the second largest share in India's domestic air travel market. However due to the severe financial crisis faced by the airline, it has the lowest market share currently. In May 2009, Kingfisher Airlines carried more than 1 million passengers, giving it the highest market share among airlines in India.[7] Kingfisher also won the Skytrax award for India's best airline of the year 2011. Kingfisher Airlines is also the sponsor of F1 racing outfit, Force India, which Vijay Mallya also owns.

Highlights
1) Kingfisher airlines provide the quality of service to the customers by the help of quality leadership and price differentiation this company is making profit margin in the airlines industry. 2) The air hostesses in the kingfisher airlines are given the training in every six month to meet the demand of the customers. 3) Kingfisher is India's largest domestic airline, serving over 55 cities on the Indian Subcontinent, as well as offering scheduled international service to destinations in the UK, UAE, Sri Lanka, Nepal, Bangladesh, Thailand and Hong Kong. 4) Kingfisher merged with Air Deccan in 2008, which saw the launch of LCC Kingfisher Red and international service. Kingfisher has announced that it will join the one world alliance in 2011. 5) Kingfisher airlines has a fleet of 11 brand new A320 family aircrafts and has a route connecting 15 key business and holiday destinations with more than 70 flights across India every day. Chairman Vijay Mallya himself guarantees an experience like never before, and each member of the kingfisher family takes accountability of the exertion of services in the right manner.

Gaps in the present service design:

GAP 1 Lack of upward communication:
The employees of kingfisher airlines are dont do upward communication with their senior manager due to which manager can not able to understand what happening in the organisational premises and managers are not able to take decision due to the lack of upward communication.

Inadequate service recovery:

The employees of Kingfisher Airlines are not able to implement the service of serve food to customers properly due to customers are not happy by the service of Kingfisher Airlines

GAP-2 Absence of customer driven standard:

In the economy class there is problem that kingfisher airlines can not able to provide customers driven standard and quality of service to the customers as take the example of Kingfisher Airlines that to the economy class the customers are treated as unethically i.e. In the Kingfisher Airlines there is the absence of customer driven standard.

Poor service design:

In kingfisher airlines the airhostess takes lot of time to deliver the order of customers it gives the problem of poor service design and mismanagement in service design process of the organisation.

GAP-3 Failure to match supply and demand:

In the economy class the passenger have reported that in the Kingfisher Airlines there is the problem of demand and supply of goods which are required to the customers that are not available in the proper quantity so that the Kingfisher Airlines show the service barrier that failure to match supply and demand.

Customers are not fulfilling roles:

Customers are not taking the responsibility that to keep clean the environment of airlines and flight, due to which lot of cost incurred in the cleaning the flight and surrounding of airlines.

GAP- 4 Lack of integrated marketing communication:

The advertising and promotional activities of the kingfisher airlines is very low due to which there is the problem that customers are not aware about scheme and discount on flights.

Inadequate horizontal communication:

In the kingfisher airlines there is the vast problem of inadequate horizontal communication because the various managers from the various departments do not communicate with each other due to which there is the problem in the decision making to the organisation and form the barriers of communication

Suggestion to remove these gaps

GAP- 1

Improvement in upward communication

First of all the employees of the organisation have to encourage to do the communication with the group member and with the manager even also manager

have to appreciate the communication of the employees and have to give feedback to the person who are doing communication with managers by that procedure we can able to do improvement in the upward communication of Kingfisher Airlines Service recovery: The Kingfisher airlines have to give training to the employees to the various parameters such as 1. How to serve food to the customers 2. How to deal with the customers 3. How to meet the expectation of customers

Gap-2 Customer driven standard:

The kingfisher airlines have to give training to the employees that to how to behave ethically with the customers by the help of training programme and there implementation we can able to meet the customer driven standard

Service design:
The Managers of kingfisher airlines have to design service in proper manner and implement it in the new way due to which the poor service design will not be in existence GAP-3

Demand and supply:

To meet the demand of the customers and to keep the smooth supply of goods in the flight the supply chain management should maintain properly and to meet the demand of customers.

Customers initiative:
Kingfisher Airlines customers have to give instruction while boarding in the flights that please dont spit in the premises of airlines or if they will do such type of activity than heavy charges have to give to individuals if kingfisher airlines do this announcement the customer will able to understand the matter of cleanliness and give initiative to keep clean premises.

GAP - 4

Integrated marketing communication:

The Kingfisher Airlines have to enhance the integrated marketing communication by the help of advertisement and promotional activity due to which customer will attracted towards the service of Kingfisher Airlines.

Horizontal communication:
Kingfisher airlines should implement the intranet facility to set the horizontal communication within the organisation due to which all problem of horizontal communication will be removed.