31-07-2012, 01:01 PM
Case study on Kingfisher Airlines decline
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History of the Airline Industry:
In December 1912, the first domestic air route was opened between Delhi and Karachi by
The Indian State Air Services (in collaboration with Imperial Airways of the UK). This
marked a new beginning in India. Three years later, Tata Sons started a regular air mail
service between Karachi and Madras. At that time, there were a few transport companies
operating within and also beyond the frontiers of the country, carrying both air cargo and passengers. Some of these were Tata Airlines, Indian National Airways, Air Service of
India, Deccan Airways, Ambica Airways, Bharat Airways and Mistry Airways. The Tata
Airlines was converted into a public limited company in the year 1946 and renamed Air
India Limited. In 1948 a joint sector company-Air India International was established by
the Government of India and Air India headed by J.R.D. Tata. In 1953, the Parliament
passed the Air Corporation Act. Air India International and Indian Airlines Corporation
came into formal existence and Air India International was nationalized.
The Indian Aviation sector was liberalized in commence in 1990 with private sector
players being allowed to operate as air taxi operators in India. A number of private
players commenced domestic operations like Damania, East-West, Modiluft, Air Sahara
and NEPC, entered the industry. However, a decade later none of them have survived.
Today the Indian Aviation sector is dotted with new players like Air Deccan, Indian
Airlines, SpiceJet, GoAir, Air Indigo, KingFisher, Jagson Airlines and Jet Air. The
domestic market share is given in Table –1.
Kingfisher Airlines:
Kingfisher Airlines is an airline group based in India. Its head office is Kingfisher House in Vile Parle (East), Mumbai. 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.
Kingfisher Airlines is one of the only seven airlines awarded 5-star rating by Skytrax along with Cathay Pacific, Qatar Airways, Asiana Airlines, Malaysia Airlines, Singapore Airlines, and Hainan Airlines Kingfisher operates more than 375 daily flights to 71 destinations, with regional and long-haul international services.[1] In May 2009, Kingfisher Airlines carried more than 1 million passengers, giving it the highest market share among airlines in India. Kingfisher also owns the skytrax award for India's best airliner of the year 2011.
Kingfisher Airlines is also the sponsor of F1 racing outfit, Force India, which Vijay Mallya also owns
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.
Air Deccan:
A wholly owned subsidiary of Deccan Aviation, Air Deccan, is India’s first low cost
carrier. It has a vision to enable every Indian to fly and has adopted the mascot of the
common man of cartoonist Laxman. The common man represents the airline’s simple
and no frills approach. Air Deccan is the nano of Aviation industry; what nano plans to
do to the automobile industry (converting two wheelers into four wheelers) Air Deccan
has done to Aviation industry (shifting people from rail travel to travel by air). The prices
of air ticket have down drastically as low price offerings were initiated by Air Deccan.
Now focus is towards customers. Today there is a new segment of travelers; the leisure
customers. Yet another segment is introduced and that is the first time travelers.