A PROJECT REPORT ON KINGFISHER AIRLINES LTD. Submitted to Piyush sir Prepared by Hetal Odedara Div - A Enroll.

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Overview of Airlines industry in India

The aviation industry in India is one of those sectors that saw a constant pace of growth among the other industries in the world over the past many years. The open sky policy of the government has helped a lot of overseas players entering the aviation market in India. From then, it has only been growing in terms of players and the number of aircrafts. At present, private airlines account for around 75% portion of the domestic aviation market. The 9th largest aviation market in the world is India. Taking the help of the statistics from the Ministry of Civil Aviation, approximately 29.8 million passengers traveled to/from India in 2008, showing a surge of 30% from 2007. The prediction stated that international passengers will touch 50 million by 2015. More opportunities in the aviation industry in India are likely to make way for about 69 foreign airlines from 49 countries.

Growth of aviation industry in India

The Indian Civil Aviation market grew at a CAGR of 18%, being valued round US$ 5.6 billion in 2008. Further statistics revealed that the air traffic in August 2009 was a double digit figure. The domestic airliners flew 3.67 million passengers in August 2009, as against 2.92 million in the corresponding period of 2007, up by 26%. The Centre for Asia Pacific Aviation (CAPA) has estimated that the domestic traffic will go up by 25% to 30% till 2010 along with a surge in the international traffic by 15%. There would be more than 100 million passengers by 2010. Then again by 2020, Indian airports will in all probability handle over 100 million passengers every year. The investment plans to the tune of US$ 9 billion has been made by

the Aviation Ministry for modernizing the existing airports by 2010. In terms of domestic passengers' volume, US have always been the leader with followers in the league like China, Japan and India. The number of domestic flights went up by 69% from 2005 to 2008, with the domestic aviation sector growing at 9-10%.

Name of the players

Market Share

Kingfisher Airlines and Kingfisher Red (previously 28% Air Deccan) Jet Airways and Jet Lite (previously Air Sahara) Air India and Indian (previously Indian Airlines) IndiGo SpiceJet GoAir Paramount Airways MDLR Airlines 25% 16% 14% 12% 3% 2% 0.004%

Kingfisher Airlines

Vision
"The Kingfisher Airlines family will consistently deliver a safe, valuebased and enjoyable travel experience to all our guests."

Mission
"Kingfisher Airlines will have 'Fly the Good Times' approach and this will reflect in the experience we will offer to passengers

Introduction
Kingfisher Airlines Limited is an airline group based in India Its head office is in Andheri (East), Mumbai and Registered Office in UB 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 a severe financial crisis faced by the airline at the beginning of 2012, it has the lowest market share since April 2012.The airline has temporarily shut down its operations when on October 20, 2012 the DGCA suspended its flying license. This suspension had been due to failure to give an effective response to the show-cause notice issued by DGCA. However, The airline had locked out its employees for several days before this suspension. On 25 October 2012, the employees agreed to return to work.

HISTORY
Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based United Breweries Group. The airline started commercial operations in 9 May 2005 with a fleet of four new Airbus A320-200s operating a flight from Mumbai to Delhi.[9] It started its international operations on 3 September 2008 by connecting Bengaluru with London. Alliance Oneworld Subsidiaries xpress Key people VIJAY MALLYA(CMD) SANJAY AGGARWAL(CEO) HITESH PATEL(EVP)

Strategic Management
"Strategic management is an ongoing process that assesses the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment." (Lamb, 1984) The systematic analysis of the factors associated with customers and competitors(the external environment) and the organization itself(the internal environment) to provide the basis for maintaining optimum management practices. The objective of strategic management is to achieve better alignment of corporate policies and strategic priorities.

PROCESS OF STRATEGIC MANAGEMENT

Developing a strategic vision

Setting objectives

Crafting a strategy to achieve the objectives and vision

Implementing and executing the strategy

Monitoring developments, evaluating performance, and making corrective adjustments

Revise as needed in light of actual performance, changing conditions, new opportunities, and new ideas

VALUE CHAIN ANALYSIS

ENVIRONMENTAL ANALYSIS Sociological Todays air traveler is like any other consumer looking for value for money. Disposable incomes are on the rise and the consumer is willing to spend more for quality and brands. Air travel is no more about transporting passengers. It is more about the flying experience. People like travelling in planes. Kingfisher airlines has a very good social image. Being a five star airlines, customers want to travel with Kingfisher. Also, the brand charges a premium price that is why only upper Socio Economic Class people prefer Kingfisher airlines. The lifestyle of the people is improving. Luxury is becoming necessary. They are ready to pay more for luxury services. Kingfisher has a strong advantage here. So, we can conclude that sociological conditions are favouring Kingfisher airlines.

Technological People are becoming more and more tech-savvy. Kingfisher does provide a TV at the back of the seat. That means every commuter has his own TV. Apart from that, Kingfisher also has facilities such as e-booking. Now, commuters can even book the tickets by mobiles. So, it can be stated that Kingfishers image and sales are driven by technology too.

Economic Figures indicate that purchasing power of Indians is increasing. People look for more options now, even luxury goods. Bank Credit is easily available in case of travelling. Economic slowdown is one of the major factor which is affecting the sales of aviation industry. In INDIA there is a mixed economy so private organization easily perform their tasks within any given economic system of course,

organization are influenced by a variety of economic features over which they have little independent control, such as inflation, interest rates and recession Another important input to the enterprise is the nature of government fiscal and policies.

Ecological One important factor is that how natural factor affects the aviation industry as whole. The most important factor is the stability of the weather. The timings of the flight are highly affected by shifts in weather. Also, it can be noticed that a highly unstable weather is directly proportional to the added costs to the company. For example, if there is a delay in the flight, the company has to provide facility for accommodations of commuters. In India, weather is quite stable in most of the time during the year. Thus, aviation is a profitable business in India, if we consider ecological factor.

Political The political environment is stable. In India, government changes after 5 years. Also, it is a democratic country. Kingfisher has an added advantage over here that the owner of Kingfisher, Vijay Mallya has very good political network. That means even political environment favours Kingfisher airlines.

Legal Aviation fuel prices in India are regulated by government. So the competition for price becomes quite still. All the companies in the industry have to pay the same amount for fuel. Now companies can increase or decrease the prices depending on the services they provide. A premium service provider, of course, would charge the prices for its services.

Ethical Indians are highly ethical people. They always make a trade off between what is right and what is wrong before they make any purchase decision. For example, if a company says that 50% of their contributions will go for the charity, then Indians are more likely to buy products or services of that company. Kingfisher airline gives value for the money. It is Indias only five star airline service provider. Hence, considered ethical.

Porters 5 Forces for Kingfisher Airlines

Threats from competitors: The level of threat from the domestic competitors is very high. Competitors like Jet Airways, Indian are some of the old well established players in the market which prove to be strong competitors for the emerging Kingfisher Airlines

Threats from new entrants: The level of threat from new entrants is quite low such as Virgin Atlantic, Qantas. The major players in the Indian aviation industry form an obstacle to foreign airlines and moreover Indian flyers prefer to have an Indian experience on the flight.

Threats of substitutes: The introduction of high speed trains, high tech buses and other means of transport has given more options to people to travel. Aviation in India is booming and with the entry of several new players in the market competition has stiffened. In such a scenario

it is imperative for any airline to build its brand and have a focused marketing strategy in place

Bargaining power of suppliers: The bargaining power of suppliers is medium. For example, Airbus and Boeing are the major aircraft manufacturers and there arent many aircraft manufacturers other than these two, this confines Kingfishers options therefore the bargaining power of Airbus or Boeing increases. In case of other suppliers such as caters the bargaining power of the suppliers is low therefore Kingfisher has many other options of caters to contract to.

Bargaining power of customers: The bargaining power of the customers is low since kingfisher is designed to meet the total comfort and value for money; therefore customers arent reluctant to pay a little more sum to gain this experience.

Competition Analysis
Kingfishers only strong obstacle proves to be Jet Airways, since Jet has control on both ends of the market and secondly it has penetrated into the international market as well. Benchmarking against Jet Airways, Kingfisher Airlines has acquired Air Deccan which was one of the most profitable low cost airlines, hence kingfisher too has entered in the lower end of the market but bearing in mind that they havent changed the name Deccan to Kingfisher Airlines so that the brand doesnt lower. Kingfisher is still testing the lower end of the market with Deccan. Kingfisher is also going to start non-stop flights to US so as to foray into the international market.

New players into the market Name |Magic Air |Go Airlines |Indus Airways |Inter Globe |Air One |Crystal Air |Paramount Air |Visa Air |East West Airlines

Kingfishers strategy to take on Major competitor, Jet Airways: Kigfisher Airlines, positioning itself as a budget airline has

announced fares for the Bangalore-Mumbai sector, which are 35 per cent lower than those of Indian Airlines and Jet Airways but lower than those offered by Air Deccan. However, unlike Air Deccan, which is purely a low-frills airline, Kingfisher promises frills like in-flight entertainment with television sets for individual seats and professional models as flight attendants The new fares may start a fare war among the domestic airlines, will be about 40 per cent lower than Kingfisher Airlines' competitors in the Bangalore-Delhi sector. The airline will operate on this sector from next month. Kingfisher's lowest fare is Rs3,900 for the Bangalore-Mumbai sector, with the next highest being Rs4,900 and the highest at Rs5,900. About 30 per cent of the seats will be reserved for the first and the second set of fares and the rest for the highest priced fares. On the Bangalore-Delhi sector, Kingfisher Airlines has priced the first slab at Rs6,900, the next at Rs8,900 and the highest at Rs10,900.

Customer Analysis
Kingfisher Airlines has a clearly defined target audience- SEC A, SEC B+ (socio-economic class) in the age group of 25-45 years of age. This segment has traveled extensively and is aware of international travel trends. They are modern, trendy and upwardly mobile looking for a great flying experience.

Kingfisher Airlines offers brand new aircraft, designer interiors, gourmet cuisine and in flight-entertainment (there are five channels of FUN TV and 10 channels of Kingfisher Radio, which are personalized). Today, the air traveler not only wants to commute faster but also be entertained . Kingfisher Airlines has a very well rounded marketing strategy in place. They apply a 360-degree approach towards marketing. They communicate with guests at multiple touch points. The idea is to create brand recall and get the message across effectively. Given this they use all media of communication be it television, print, radio, outdoor, malls, multiplexes, clubs, pubs, in-flight etc. Our guests are constantly informed of our new offers. Kingfisher Airlines operates in the full service true value category and in that sense is not targeting the same consumer as the LCCs. Given that there is little reason for them to worry as in their category they offer the best service and have become the most preferred and favorite of our target audience. Kingfisher Airlines won the Skywars Most Preferred Airlines Survey conducted by IMB across categories of consumers as well as the CAPA and Skytrax awards. With our 360-approach Kingfisher finds it pretty easy to connect with their consumers both in-flight and on-ground. Their loyalty program/frequent flyer program better known as the King Club uses DM and CRM to keep all our King Club members constantly updated on the ongoing and upcoming offers apart from the day to day developments at Kingfisher Airlines. They have over 100,000 members in their program and offer specialized offers to specific profiles among them depending on their interests. In the past, they have offered tickets to theatre screenings, fashion shows, sports screenings etc.

SWOT analysis
Strengths: Kingfisher Airlines have targeted the Indian domestic luxury segment, therefore operating in a niche market. Kingfisher Airlines has a strong financial support from the parent company UB Group and Kingfisher itself is a well established brand. The customer service provided on Kingfisher is extremely exceptional for a domestic airline, hence providing an ultimate flying experience. Kingfisher Airlines is well known for its highly trained and attractive staff.

Weakness: The company has a immature organisational structure and lacks mature management practices. The company is unable to generate expected returns on the investments done. Loads are lesser than that of its competitor Jet Airways which is a reflection of its marketing and sales capabilities. The main weakness of the company is the overspending of funds.

Opportunities: The Indian aviation industry is a growing industry with a growth rate of nearly 24%. There are a large number of domestic untapped routes.

 There has being a growth in the disposable income of the people especially in the middle class, therefore more people can afford to fly by a luxury airline. The air cargo market is still untapped.

Threats: Fierce competition from other airlines such as Jet Airways Cost cutting is become a prime need in the aviation industry, hence pressurising a lot of airline companies Infrastructure constraints the major rises in fuel prices

Strategies:
Segmentation: Customers are segmented into classes of status conscious air traveler, SEC upper middle, HHI 25K+, Wired, Professional. Kingfisher Airlines has a clearly defined target audience- SEC A, SEC B+ (socio-economic class) in the age group of 25-45 years of age. This segment has traveled extensively and is aware of international travel trends. They are modern, trendy and upwardly mobile looking for a great flying experience.

Targeting: The main target is executives and their family. They have targeted on passengers who are not really economy conscious but seeking an airline commensurate with their standing/status, who love to be pampered, are price insensitive, seek a pleasurable in-flight ambience and experience.

Position: The airline is deliberately positioned as A never before experience and Funliner.

Differentiation: The plane has only one class. There are no male pursers. Kingfisher has brand new A320. It provides personalised video screens with 5 channels and 10 kingfisher radio channels

Market penetration
Encouraging existing Customer to buy more Showing benefits for using more associating freebies/extra service/membership with primary offering. Try to look for foreign entrants weakness such as Virgin Atlantic which lacks in Indian values & tastes.

Product development
Seek additional distribution channels such as more tie ups & collaboration, try seeking collaboration with international carriers, bilateral discussions over seats and code-sharing between the carriers.

Market development
Try to find out new customer group such as Old-retired persons. Special offering for first time fliers

Diversification
May go for other services like international flights (concentric diversification). May go for arrangement fashion shows (horizontal diversification).

Business-level strategy
An integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets

Kingfisher is a sponsor of Force India

Dr. Vijay Mallya

Vijay Mallya (born on 18 December 1955 in Kolkata, India) is an industrialist and a second-time member of India's parliament. He is the chairman of the UB Group an Indian conglomerate, with diverse interests in brewing, distilling, aviation, pharmaceuticals, real estate, engineering, fertilizers,biotechnology and information technology.

Businesses
At the time of his father's death, Mallya was unanimously elected Chairman of United Breweries. As part of his modernisation bid, he consolidated the various companies under one umbrella group called the "UB Group", spun off non-core and loss-making businesses and focused on the core business of beverage alcohol. Kingfisher beer controls more than 50 per cent market share of India's beer market. The beer is available in 52 countries outside India and leads the way among Indian beers in the international

market. United Spirits Ltd, the flagship of the UB Group, has achieved the historic milestone of selling 114 million cases, becoming the largest spirits company in the world by volume.

Politics
Mallya was elected to the Rajya Sabha Upper House of India's Federal parliament in both 2002 and 2010 as an independent candidate from his home state of Karnataka.

Awards
Was conferred an honorary degree of Doctorate of Philosophy in Business Administration, by theSouthern California University for Professional Studies of Santa Ana, California in 1997. Awarded the Entrepreneur of the Year award at The Asian Awards. Nominated as a "Global Leader for Tomorrow" by the World Economic Forum. Received France's highest civilian award the Legion of Honour.

Code of business(corporate governance)

KINGFISHER AIRLINES commitment to ethical and lawful business conduct is not only critical to the Company's success, but also a fundamental shared value of its Board of Directors (the "Board"), senior management personnel and employees. Our standards for business conduct provide that, we will uphold ethical and legal standards vigorously, as we pursue our financial objectives and the Company, the Board and senior management personnel will not compromise honesty and integrity. Consistent with these principles, the Board has adopted this Code of Business conduct and Ethics (the Code) as a guide to the high ethical and legal standards expected of its Board and its senior management personnel. Accordingly, the Board has adopted this Code and the Directors and Senior Management Personnel are expected to adhere to the standards of loyalty, good faith, and the avoidance of conflict of interest that In performing their daily duties, the Directors/senior management personnel will: Act ethically, diligently, openly, honestly, in good faith and with integrity; Act in the best interests of, and fulfill their fiduciary obligations to the Company and its stakeholders; Act in good faith, responsibly, and with due care, competence and diligence, without allowing their independent judgment to be subordinated; Dedicate their best efforts to advancing the Companys interests and act in a manner that will enhance and maintain the reputation of the Company; Abide by all applicable laws and regulations, confidentiality obligations and specially with the Companys Insider Trading Rules; Become and remain familiar with the Companys business and the economic and competitive environment in which it operates and understand its principal business plans,

strategies and objectives; operations results and financial condition and relative marketplace position; Conduct themselves in a professional, courteous and respectful manner; Be aware of and comply with all applicable laws, rules and regulations that govern the conduct of the business in all jurisdictions where the Company operates; Commit the time necessary to prepare for, attend (in person or as appropriate) and actively participate in regular and special meetings of the Board/ senior management or other meetings on which they serve/attend; Disclose potential conflicts of interest that they may have regarding any matters that may come before the Board, and abstain from discussion and voting on any matter in which the Director/Senior Manager has or may have a conflict of interest; Discharge their duties, as members of the Board and of any Board Committees on which they serve or as senior management personnel in accordance with their good faith business judgment and in the best interests of the company and its stakeholders; Inform the Chairman of the Board of changes in their employment, other board positions, relationships with other business, charitable, and governmental entities, and other events, circumstances or conditions that may interfere with their ability to perform their duties or impact the Board's assessment of whether they meet the independence requirements; Maintain the confidentiality of all material non-public information about the Company, its business and affairs; Make available to and share with fellow Directors and senior management personnel information as may be appropriate to ensure proper conduct and sound operation of the Company; Not enter into, without the prior approval of the disinterested members of the Board, any transaction or relationship with the Company in which they will have a financial or personal interest (either directly or indirectly, such as through a family member or other person or organization with which they are associated), or any transaction or situation which otherwise involves a conflict of interest;

Not use confidential information acquired in the course of their service as Directors or senior management personnel for their personal advantage. Provide leadership in advancing the Company's vision, values and guiding principles; and Respect the confidentiality of information relating to the affairs of the Company acquired in the course of their service as Directors, except when authorized or legally required to disclose such information. Safeguard and properly use Company assets and resources, as well as assets of other organizations that have been entrusted to the Company. Never request gifts, entertainment or any other business courtesies from people doing business with the Company (including suppliers, customers, competitors, contractors and consultants).

Annual Confirmation All Directors and Senior Management Personnel will annually on or before June 30 of every year or such other date as may be determined in this regard sign a confirmation that they have read and will comply with this Code. Non - compliance Suspected violations of this Code must be reported to the Chairman of the Board or the Chairman of the Audit Committee. All reported violations will be appropriately investigated. Directors who violate this Code may be subject to sanctions, up to and including a request to resign as Director or the Boards seeking removal of the Director, where permitted by applicable law. Waivers and amendments The Company is continuously reviewing and updating all its policies and procedures and therefore this Code is subject to modification. The Board must approve any amendment or waiver of any provision of this Code in writing.

Attribute P:E Ratio E.P.S. Sales Face value Net profit margin Last bonus ROI Last dividend Return equity on average

Value -0.27 -40.30 741.28 10 -15.99 0:0 -64.19 0%

Date 21/11/2012 Mar'12 Mar'12

Mar'11 -

0.00

Mar'11

BSE
Nov 23, 17:00 13.72 0.25 (+1.86%) VOLUME -- 5,831,501 PREV. CLOSE -- 13.47 OPEN PRICE -- 13.50 BID PRICE (QTY.) -- 0.00 (0) OFFER PRICE (QTY.) -- 13.72 (7,686) TODAYS LOW/HIGH -- 13.13 13.98 52 WK LOW/HIGH -- 7.01 30.90

NSE
Nov 23, 17:00 13.70 0.30 (+2.24%) VOLUME -- 17,243,439 PREV. CLOSE -- 13.40 OPEN PRICE -- 13.40 BID PRICE (QTY.) -- 13.70 (31449) OFFER PRICE (QTY.) -- 0.00 (0) TODAYS LOW/HIGH -- 13.15 14.00 52 WK LOW/HIGH -- 7.05 30.75

Return on Assets Excluding Revaluations , -97.56, -72.99, -156.01, 84.05, 12.68

Current strategy of Kingfisher Airlines

Following strategies were followed to make it one of the leading Airlines in India.

Functional strategies
It planned to re-launch its commercial air service called UB Airway again which it had to withdraw it due to government restrictions. The company gave best services to its customers that were like providing world class interiors, and in-flight entertainment systems. The company came up with only one class airlines rather than other airlines that had Business Class; Economy Class the idea was to combine Business Class experiences and Economy Class experiences in one. Having a single class freed up more leg space for passengers when compared to normal economy class flights. The company started addressing its customers as GUEST rather than passengers. The company made its mark by providing its guests with more legroom and bigger seats so as to provide better comfort. KFA has set its sight to become Indias largest airline both is capacity and in market share.

KFAs Promotional Strategies & Marketing Strategies

It came up with a very appealing promotional lineFly the good times and it reflected in the experience the company offered to its passengers KFA is also launched Kingfisher express in order to tap into the growing LCC segment. Also launched the facility of web check-in, allowing travelers to print their boarding passes via www.flykingfisher.com and the introduction of the Roving Agent at the airport. The Roving Agent is like a check-in counter on the move. You no longer need to go to the check-in counter and wait for long. As part of its promotional

strategy

the marketing team of

KFA

showcased the

airline

asthe new flying experience. The following initiatives were taken as part of its promotional strategy Advertisements hoardings at airports depicted the stylish interiors o f the Funliners, which conveyed youthful, fun-filled, and world class image. INOX multiplexes in Mumbai publicized KFAs special offers for a month. KFA was the official travel airlines for the cast and crew of Mangal Pandey- the movie. KFA made use of various fashion shows, celebrity golf matches, New Year parties allto build its Kingfisher brand. The UB groups monthly magazine called Pegasus published information about KFA along with other information related to UB group. KFA launched many attractive offers to promote its sales like the KingCard in association with ICICI Bank, in August 2005.

This was meant to create loyalcustomers for KFA by providing benef its like privileged access to lounges,restaurants, free refreshments at airports, access to 180 golf clubs across India, specialinvites for lifestyle shows. In October, KFA launched Chill Times Offer in the month of August 2005 andSeptember 2005. In October they launched the King Saver Offer which said Fly like a King, dont play like one. KFA targeted the frequent fliers business traveler segment, which was dominated by Jet Airways. By offering a King Saver Booklet, This booklet contained six free flight tickets and was presented as a free gift if the passenger bought two such booklets each worth Rs. 26,999.Passengers could avail off this offer if they showed there Jet Privilege Member (Gold or Platinum) card.

Financial strategies:
KFA came up with many new financial strategic moves that made it one of the leaders of aviation industry the company had adopted following strategies: The company is planning to spend close to Rs 40 crore on various media and below-the-line marketing activities for the year 2009-10 Cut down the salaries of the staff like trainee pilot now drawing Rs2 0k as compare to Rs2.0lacs. To come over the financial crisis the KFL is considering an option of retrenchment. It purchased brand new A320 aircrafts powered by the cockpit that was a paperless environment. KFA was first Indian carrier to place an order for A380s.

Expansion strategy

To further its expansion plan KFA put in its bid to buy Sahara in November 2005.However negotiation came to a standstill when KFA felt the valuation of Sahara Airlines of around US$750mn to US$1 bn. was too high.KFA has plans to make an Initial Public Offer (IPO) and raise around US$200 mn that would be used for its fleet acquisition and route expansion activities. KFA set up Kingfisher International Inc. (KII), a subsidiary in US for its international operations. KFA plans to operate international routs by end of 2007. But KFA had yet to receive permission from the Indian government. According to Indian government domestic air carriers are not allowed to fly international routes without five year of domestic flying experience. But Mr. Mallya said if he failed to convince the government to change its rules, it would start an airline in a foreign country and fly it to India. Human Resource Strategies Prior to launch, KFA signed a non-poaching alliance with Air Deccan under which both the airlines agreed not to hire each others employee. KFAs flight attendants called Flying models were selected through a national level model contest.KFA also stressed the fact that its employees had to be capable enough to meet the airlines high service standards .Mr. Mallya said Kingfisher Airlines Limited has a first class management team not just at top most level but also in the second line. This is part of the UB groups commitment to human resources.

Recommended Strategies
Should tie up with different state tourism (like Goa, Kerala, Tamil Nadu etc) to promote domestic air traffic. Running online contests to boost traffic Looking at partnering with premium hotels, so that the customers of hotelsdirectly choose Kingfisher airlines for traveling. To minimize the air fuel cost and other operating expenses of aircraft they should purchase new more fuel efficient and advance technology based aircraft.

Code sharing with other airlines. Rescheduling of flights so that they can adjust the load. More tie ups are required like they can also be a part of STAR alliance. At the time of recession making collusions and cartels could be a good idea. In such a scenario it is imperative for any airline to build its brand and have a focused marketing strategy and created a new category of Aviation hospitality thus making service and hospitality as main focus. The company should join hands with certain banks like ICICI, SBI etc. to offer e-ticketing.

Mergers and acquisitions

Dec. 2007 Low-cost carrier Deccan and Vijay Mallya-led Kingfisher Airlines decided to merge and create a single corporate entity to cut down operational costs and accelerate their journey to profitability. Shares of Deccan Aviation have doubled in a little over a month in anticipation of a reverse merger of Kingfisher Airlines into Deccan Aviation. Details of Deccan-Kingfisher merger, valuations firm KPMG. and swap ratio will be worked out by accountancy

Mallya would be the chairman and CEO of the merged entity, while executive chairman of Deccan, Captain G R Gopinath would be the vice-chairman.

Strategic partners
1.Kingfisher Airlines Inks Strategic Alliance with American Express. Partners launch Indias first Airline Corporate Charge Card Program Fast trackCorporate Savings with exclusive Rebates, Disco unts, and Employee Rewards with King Club and Bonus Points. 2.Strategic and operational alliance with rival domestic carrier Jet Airways owned by Naresh Goel in 2009

International
Kingfisher First Prior to losing its A330 fleet, Kingfisher offered an international business/first product called Kingfisher First which featured full flatbed seats with a 180 degree recline, with a seat pitch of 78 inches, and a seat width of 20-24.54 inches.[35] Passengers were given Merino wool blankets, a Salvatore Ferragamo toiletry kit, a pyjama to change into, five-course meals and alcoholic beverages. Also available were in-seat massagers, chargers and USB connectors. Every Kingfisher First seat had a 17 inch widescreen personal television with AVOD touchscreen controls and offers 357 hours of programming content spread over 36 channels, including Hollywood and Bollywood movies along with 16 channels of live TV, so passengers can watch their favorite TV programmes live. There was also a collection of interactive games, a jukebox with customisable playlists and Kingfisher Radio. Passengers are given BOSE noise cancellation headphones. The service on board the Kingfisher First cabins included a social area comprising a full-fledged bar staffed with a bartender, a breakout seating area just nearby fitted with two couches and bar stools, a full-fledged chef on board the aircraft and any-time dining. A turndown service included the conversion of the seat into a fully flat bed and an air-hostess making the bed when the passenger is ready to sleep.

Inflight entertainment
Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems on every seat even on domestic flights. All passengers were given a "welcome kit" consisting of goodies such as a pen, facial tissue and headphones to use with the IFE system. Now, passengers of Kingfisher class are not given "welcome kits" but, as mentioned are special earlier, a complimentary of bottle of by lemonade Mallya's and earphones for use with the IFE are still given. The inflight magazines editions magazines owned media publishing house (VJM Media) viz. Hi! Blitz for domestic flights and Hi! Living for international flights. Initially, passengers were able to watch only recorded TV programming on the IFE system, but later an alliance was formed with Dish TV to provide live TV in-flight.[37] And in a marked departure from tradition, Kingfisher Airlines decided to have an on-screen safety demonstration using the IFE system, however the conventional safety briefing by the flight attendants still exists on many flights.

Financial difficulties
The airline has never made in money. 2005, it Ever has since been the airline commenced operations reporting

losses.[citation needed] After acquiring Air Deccan, Kingfisher suffered a loss of over 1,000 crore (US$182 million) for three consecutive years.[citation needed] By early 2012, the airline accumulated losses of over 7,000 crore (US$1.27 billion) with half of its fleet grounded and several members of its staff going on strike.[citation needed] Kingfisher's position in top Indian airlines on the basis of market share had slipped to 5 from 2 because of the airline's chronic inability to make a profit. As response, Dr. Vijay Mallya called on the Chairman of Central Board of Direct Taxes and offered to pay up the dues by 13 December 2011 as the Income Tax Department had frozen all its bank accounts.[10] The Kingfisher bank accounts were unfrozen on 14 December 2011.[11] Due nonpayment, several Kingfisher's vendors had filed winding up petition with the High Court. As on November 2011, winding up petition of seven creditors was pending before the Bangalore High Court.[12] In the past Lufthansa Technik & Bharat Petroleum Corporation Limited(BPCL) had also filed winding up petition against Kingfisher Airlines[13] During late February 2012, Kingfisher Airlines continued to sink into financial crisis, but the effects suddenly became more dramatic. Several flights were cancelled and aircraft were grounded. The cash-strapped airline claimed that the disruptions will continue for four days due to unexpected events including bird strikes which rendered aircraft out of service. The airline shut down most international short-haul operations and also temporarily closed bookings. Out of the 64 aircraft, only 22 were known to be operational by 20 February. With this, Kingfisher's market share clearly dropped to 11.3%. The cancellation of the flights was accompanied by a 13.5% drop in the stocks of the company on 20 February 2012. The CEO of the airlines, Sanjay Agarwal was

summoned by the Directorate General of Civil Aviation and the Chairman CBDT to explain the disruptions of the operations. In March 2012, the airline was suspended by the International Air Transport Association from using its inter-airline fund clearing system. The suspension meant that the airline would have to deal directly with other airlines when sharing revenue on services. Tax authorities in India, in May 2012, froze the company's accounts, due to the deduction of income taxes that deducted the salaries of their employees that were not forwarded to government since March 2009. Due to the ongoing financial crisis, an Airbus A330-200 aircraft was impounded at London Heathrow Airport in the United Kingdom under Court Orders due to unpaid fees to aircraft leasing companies and RBS. In June 2012, because cheques issued by Kingfisher had bounced, GVK - India's second-largest airport operator - launched legal proceedings against Kingfisher Airlines.