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Report on KINGFISHER AVIATION Seminar Report o n “KINGFISHER AVIATION” Submitted in Partial Fulfillment for the Award of the Diploma of Post Graduate Diploma in Management (Session 2011-13) Submitted to: Submitted By: ARZOO TOMAR Faculty Name:-H.N SINGH Student Name:ARZOO TOMAR Internal Guide :-KEENIKA Roll No:-11226 PGDM:1 ST YEAR TRIMIST ER SEC-“A”

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Page 1: Kingfisher Project

Report on KINGFISHER AVIATION

Seminar Report

on

“KINGFISHER AVIATION”

Submitted in Partial Fulfillment for the Award of the Diploma of Post Graduate Diploma in Management

(Session 2011-13)

Submitted to: Submitted By: ARZOO TOMAR

Faculty Name:-H.N SINGH Student Name:ARZOO TOMAR

Internal Guide :-KEENIKA Roll No:-11226 PGDM:1ST YEAR

TRIMISTER SEC-“A”

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INSTITUTE OF MANAGEMENT STUDIES, NOIDA

A UGC Recognized Institute

A-8B, Plot –C, Sector-62, Noida

DECLARATION

I ARZOO TOMAR bearing Roll No 11226 Class PGDM 1 ST YEAR of the Institute

of Management Studies, Noida hereby declare that the Seminar Report-108

entitled PROJECT REPORT ON KINGFISHER AVIATION is an original work and the

same has not been submitted to any other Institute for the award of any other

diploma. The suggestions as approved by the faculty were duly incorporated.

Signature of Student

Countersigned

Signature of Faculty Guide

Page 3: Kingfisher Project

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ACKNOWLEDGEMENT

I ARZOO TOMAR owe a thanks to a great many people who helped and supported

me during the Project Report.

My deepest thanks to Prof. H N Singh, the Course Coordinator who has given a

Project and also guide me in the Project with great attention and care.

My deepest thanks to Lecturer, KEENIKA the Guide of the project for guiding and

correcting various documents of mine with attention and care. He has taken pain

to go through the project and make necessary correction as and when needed.

I express my thanks to the Principal of, IMS NOIDA, for extending his support.

My deep sense of gratitude to Surabhi Singh Class In charge, for her

support and guidance. Thanks and appreciation to my friends for their support

and help in the project.

I would also thank my Institution and my faculty members without whom this

project would have been a distant reality. I also extend my heartfelt thanks to my

family and well wishers.

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CONTENTS

INTRODUCTION OF AVIATION

HISTORY OF AVIATION

INTRODUCTION OF KINGFISHER AVIATION

HISTORY OF KINGFISHER AIRLINES

VISSION AND MISSION

PRODUCT

CODE OF CONDUCT

MANAGEMENT TEAM

MERGERS

ACCQUISITION

STRATEGIC ALLIANCES

CSR

SWOT ANALYSIS

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INTRODUCTION

Aviation is the design, development, production, operation, and use of aircraft,

especially heavier-than-air aircraft. Aviation is derived from avis, the Latin word for bird.

The airline industry provides transportation services for passengers as well as cargo

through scheduled air routes. The aviation industry derives its revenues from regular

ticket fees and freight charges. Other major components of the aviation sector include:

Airtrafficcontrol

 

Helicopter and private charter services

 

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Airport management

 

Express delivery service

I. Aviation is defined as the design, manufacture, use, or operation of aircraft - in which

the term aircraft refers to any vehicle capable of flight. Aircraft can either be heavier-

than-air or lighter-than-air: lighter-than-air craft including balloons and airships, and

heavier-than-air craft including airplanes, autogiros, gliders, helicopters, and

ornithopters.

II. For centuries man has dreamed to soar with the birds. Famous inventors such as

Leonardo da Vinci, John Stringfellow, and Lawrence Hargrave have conjured up

ideas of how to get some of the strangest machines to fly long before the Wright

brothers' famous first flight at Kitty Hawk

III. An airline provides air transport services for traveling passengers and/or freight.

Airlines lease or own their aircraft with which to supply these services and may

form partnerships or alliances with other airlines for mutual benefit. Generally,

airline companies are recognized with an air operating certificate or license issued

by a governmental aviation body.

IV. Airlines vary from those with a single aircraft carrying mail or cargo, through full-

service international airlines operating hundreds of aircraft. Airline services can be

categorized as being intercontinental, intra-continental, domestic, regional, or

international, and may be operated as scheduled services or charters.

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The aviation industry encapsulates the development, operation and management of aircrafts.

While the common perception about the sector is that it’s only about pilots and airhostesses,

there are numerous other, equally significant job options that the industry cannot function

without; from in-flight trainers and aircraft maintenance engineers to baggage handlers and

reservations agents.

Research indicates the global aviation industry is poised to grow at a healthy 5.6% CAGR over

the next 15 years. While major conventional mature markets such as the US and Europe will

witness a significant fall in market share from 61% to 52%, emerging markets, such as India,

China and the Middle East, offer a great growth potential.

Page 8: Kingfisher Project

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BY- VIJAY MALIYA CHAIRMEN OF UV GROUP

Kingfisher Airlines is an airline group based in India.

INTRODUCTION

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Kingfisher Airlines is also the sponsor of F1 racing outfit, Force India, which Vijay Mallya also

owns

Kingfisher Airlines is the first airline in India to launch this unique service. III. On-board

experience • In-flight entertainment At Kingfisher Airlines, we take pride in being the first

domestic airline in India to offer personalized In-flight Entertainment. Guests have the option of

Live TV, Fun TV and 10 audio channels on Kingfisher Radio with choices appealing to every

segment s expectations. The video choices range from Sports to fashion to an exclusive channel

for kids. Similarly the audio channels range fromGhazals to hip- hop to rock music. All efforts

are made to ensure that you havea wide selection every time you fly with us. Another unique

feature of our In-flight Entertainment system is the on screen moving map that let you know the

Funliner s location, altitude, speed and other relevant flight details. • Meal options We offer our

Guests complimentary meals on all our flights. At this stage, Guests have the choice of opting for

vegetarian or non vegetarian meals on most sectors. The menus are designed considering the

Guest feedback and are frequentlychanged to meet their changing tastes. To ensure that the

Guests get differentchoices every time they travel with us, we have six different types of menu

which are changed everyday. • World class crew Our Crew is personally selected by the

chairman. They undergo a rigorous training program in the Safety and First aid, Service Delivery

and Personality development before they are cleared to take on the role of hosts

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 [5] 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.[6] 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

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Founded

:-

2003

Commen

ced:-

operatio

ns

9 May 2005

Hubs:- Bengaluru

International

Airport (Bangal

ore)

Seconda

ry:-

hubs:-

Chhatrapati

Shivaji

International

Airpor

t(Mumbai)

Indira Gandhi

International

Airport (Delhi)

Netaji Subhash

Chandra Bose

International

Airpor

t(Kolkata)

Focus Chennai

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cities:- International

Airport

Cochin

International

Airport(Kochi)

Tiruchirapalli

International

Airport (Trichy)

Pune

International

Airport

Rajiv Gandhi

International

Airport (Hydera

bad)

Sardar

Vallabhbhai

Patel

International

Airpor

t(Ahmedabad)

Frequen

t:-flyer

program

King Club

Airport:- Kingfisher Lounge

Page 12: Kingfisher Project

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lounge

Allianc

e:-

Oneworld (2012)

Subsidia

ries:-

Kingfisher Xpress

Fleet

size:-

66 (+130 orders)

Destinat

ions:-

71

Compan

y

Slogan:-

Fly The Good

Times

Parent:-

compan

y

united Breweries

Group

Headqua

rters:-

Kingfisher

House, Mumba

i,Maharashtra[2]

Key

people:-

Vijay

Mallya (CMD)

Sanjay

Aggarwal (CEO)

Website:

-

flykingfisher.com

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Kingfisher Airlines Expands Route Network with the Introduction of Services on Four New

Routes New Delhi, November 23, 2007 - Kingfisher Airlines announced that it has further

expanded its route network with the introduction of three new services and the addition of two

new destinations. The newly introduced services connect New Delhi with Jammu with a daily

direct flight in either direction. The second new service launched by Kingfisher Airlines is a

daily direct flight from New Delhi to Lucknow.

Kingfisher Airlines also announced the introduction of a new daily service from Varanasi to

Khajuraho. With the introduction of this new service, Kingfisher Airlines now offers a new

service connecting New Delhi with Khajuraho with a halt at Varanasi.

This will be the first time that Kingfisher Airlines is operating flights to Lucknow and

Khajuraho.

Commenting on the launch of these new routes, Mr. V. Raja, Global Sales Head-Kingfisher

Airlines Limited, added, “The launch of these three new services is consistent with our goal of

tapping emerging routes and offering convenient and frequent services that cater to the unmet

needs of air travellers in India. Given the huge tourism potential of these cities and the

importance that they occupy on the pilgrimage map of India, we see potential to develop and

grow a market for these routes while simultaneously exploring virgin market segments that

would typically fly on this circuit. We look forward to growing this market”.

“The New Delhi-Jammu sector is a route that has a huge untapped potential and with the

superlative Kingfisher experience, we hope to capture this rapidly growing market”, added Mr.

Raja.

People having greater disposable incomes. In 2003, 10 million Indians traveled by air

domestically. In 2004, 25 million took to the skies within India and 6 million Indians traveled

abroad. The more the merrier, More could take to the skiesin the months and years to come, as

wallet friendly new players like Kingfisherairlines spruced up plans to enter the aviation

segment. According to CAPA (Centre for Asia-Pacific aviation) forecasts, the total air traffic

will rise by 5 million actual passengers each year over the next 10 years. Swift liberalizationof

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the Indian market. With the ending of government protection for Indian Airlines, the adoption of

an open skies agreement with the United States and the loosening of a previously tightly

restrictive quota pact with Britain. India is an exciting aviation market.

•••Welcome Kingfisher Airlines!

Kingfisher Airlines commenced commercial operations on 9 May, with its maiden service from

Bangalore to Mumbai with 174-seat A320 aircraft. Other details include: Fleet: To operate a

minimum of 33 aircraft within the next two years and 55 by 2010; Fares: Bangalore-Mumbai

fares are at least 35% lower than Indian Airlines and Jet Airways; Network: Bangalore-Mumbai

frequency increased from two to three times daily on 20 May. Bangalore-Delhi service

commences on 6 June. According to UB Group Chairman, Vijay Mallya, the airline plans to

acquire 11 aircraft byDecember this year and buy one aircraft every month from

Vijay Mallya, the Indian Liquor and Airline business magnate known for his aggressive and

innovative marketing is taking his airline fleet overseas. KingfisherAirlines largely famous for its

saucy air hostesses and top-notch service, plansto fly on multiple routes in US and UK as early

as next year. Mallya placed oneof the biggest Aircraft orders to Airbus at Paris Air Show. The

order was placed for 50 aircrafts worth $7 billion. Kingfisher’s strategy is to open long-

haulroutes and expand the existing domestic routes. The deal, for 50 Airbus planes,included five

A340s, which are only economical to fly on long-haul trips. Mallyaalready has on order five of

Airbus’s jumbo A380s, which he plans to fly non-stop to the U.S. East Coast, and five additional

A340s, which he plans to fly nonstop to America’s West Coast. One of the reasons for Mallya to

put in such a biginvestment is due to the fact that Indian are flying much more than what they

used to earlier. The domestic market is grown by over 40% while the international passengers

have grown by 25% over last year. This growth rate is expected to carry through at least a

decade. The Airline Industry has suddenly seen number of players entering the Indian market

after being dormant for a very long time. Dueto the competition within airlines, the air fares in

some cases have fallen by more than 50%. Very recently the Jet Sahara deal has been making

news for all wrong reasons.

Kingfisher Airlines, American Express to lunch co branded card

Corporate Card issuer American Express and Kingfisher Airlines today announced ajoint

marketing initiative with the launch of the first airline corporate charge card specifically targeted

at the small to medium sized enterprise (SME) market in the country. A market-first, the

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American Express Kingfisher Airlines Corporate Card will offer India-based companies an 8-per

cent rebate on Kingfisher Airlines air travel which is charged to the card and will also offer card

holdersan exclusive membership upgrade within the Kingfisher Airlines frequent flyer

programme, King Club. "I am delighted to announce a strategic alliance between two powerful

brands, which are widely acclaimed and renowned for their premium quality and service," said

Vijay Mallya, chairman and CEO, Kingfisher Airlines Limited. "The American Express

Kingfisher Airlines Corporate Card is squarely targeted at the SME segment. The SME market is

important to Kingfisher Airlines and wehave worked closely with American Express to develop

a compelling corporate product that provides exclusive benefits to both the company and its

employees. "Thecard offers companies a rebate of 8 per cent on all Kingfisher Airlines

ticketpurchases charged to the card, whilst card members will automatically be enrolled in the

King Club frequent flyer programme and earn Bonus King Miles."

Kingfisher Airlines Open 2007 to feature Global Tennis Legends

Since UB Group s acquisition Scottish distiller Whyte & Mackay, a move which elevated the

group to second place in the global spirits market, chairman Vijay Mallya has most definitely

been looking to overtake something and ensure that he is the first to cross the line with the

chequered flag. Spyker Ferrari is most likely what it is. Mallya has decided to get himself a

Formula One team, happily investing a cool 90 million over a weekend, and in the process,

exponentially expanding marketing opportunities for his flagship brand, Kingfisher. Given his

love for fast cars, racehorses, parties, and his trademark flamboyance, a personalF1 team fits like

a glove with the rest of Mallya s portfolio. Mallya estimatesthat Spyker could pull in 25

million in television revenues next year, and plans to cut costs for the loss making endeavour by

relocating some of the research capabilities to India. An Indian team, ideally with an Indian

driver - is an almost sure shot route to unlocking untapped marketing potential in a country

wherehalf the 1.1 billion population is under the age of 25, a substantial chunk of which keenly

follows F1. TV ratings are set to skyrocket, with potentially every Indian kid tuning into F1,

given their ownership in it as a country. If even half of the cricket mania is replicable here,

Kingfisher is most definitely home and dry. However, as Kingsher presently adorns Toyota, team

as part of a $5-million deal ending next year, it could be some time before Spyker wears the

Kingfisher shade of red. In the interim, other UB group brands could possibly find themselves on

the team.

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ICICI Bank and Kingfisher Airlines Launch Co-branded Credit Card

Kingfisher Airlines, India s first true-value, full-service airline, in its cons

tant attempt to provide enhanced value to its consumers entered into an agreemen

t with ICICI Bank , India’s second largest Bank, to create a cobranded credit ca

rd that will allow its members a host of privileges and would also serve as an i

ncentive to become loyal travelers of Kingfisher Airlines.The target consumer For Kingfisher

Airlines is the frequent-flying corporate traveler who seeks deligh

t out of his flying experience. The Airline s offering is in line with the expectations of the

globally aligned Indian who has high propensity to spend. This co

nsumer is also the right potential target for ICICI Bank s premium credit card o

fferings and hence the fit between the two brands is strategically sound. Adds D

r. Vijay Mallya, Chairman & Managing Director, Kingfisher Airlines Limited- "Kin

gfisher Airlines is the embodiment of the modern, global Indian. We are out to r

e-define the air travel industry in India by offering never-before value to the

Indian air traveller. Ranging from our brand new aircraft to the unique Kingfish

er Class experience, Kingfisher Airlines is committed to provide only the best t

o its guests. It is in line with this that we have chosen to align with ICICI Ba

nk - the leader in the credit card industry in the country, to create a unique c

o-branded credit card. This alliance will also further strengthen the corporate

relationship that The UB Group has enjoyed with ICICI Bank

Kingfisher Airlines and dishtv Form an Unprecedented Alliance in the Indian SkieS Kingfisher

Airlines and dishtv introduce LIVE TV in-flight. Now enjoy watching y

our favorite channels 35,000 feet high in the sky History has been created in the world of

entertainment and Indian aviation, with the coming together of two large corporate houses,

dishtv and Kingfisher Airlines, to bring LIVE TV entertainment for the very first time in the

Indian skies. This association signifies the commitment to enhance in-flight entertainment like

never before and a turning point to make the unprecedented happen, the launch of LIVE TV,

35000 feet high in the sky. As a part of the tie-up, the country’s pioneer DTH player, dishtv, will

demonstrate its services on the country’s fastest growing airline, KingfisherAirlines. Now, only

on flying with Kingfisher Airlines, guests will not miss outon any critical news or business

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event, sporting action, Hollywood and Bollywood blockbusters, chartbusting music, and popular

sitcoms, thanks to dishtv’s revolutionary new technology, making digital content services

available on board! Starting services two and half years ago, dishtv marked its presence by

revolutionizing entertainment, right from the Siachen to Kanyakumari, to the remotest areas,

across the country. Next, dishtv conquered the seas, with mobile dish installations on sailing

vessels, within the footprint of the satellite. With the Kingfisher Airlines alliance, dishtv has

achieved yet another milestone by taking digital entertainment to the skies with the launch of

LIVE TV on board every Kingfisher Airlines aircraft.

Added Dr. Vijay Mallya, Chairman and CEO, Kingfisher Airlines Limited, “In 2005,Kingfisher

Airlines launched and redefined the way the Indian air traveler perceived the joy of flying. We

introduced in-flight entertainment on-board all our flights, so much so that our competitors were

compelled to follow suit. Today we take our commitment to take the best of Good Times, one

step further for our guests. Our association with dish TV has helped us create yet another path-

breaking innovation which will revolutionize the way Indians perceive in-flight entertainment

and we are very proud that dishtv will now enable LIVE TV onboard every Kingfisher Airlines

flight. With the launch of LIVE TV onboard, we are not re-defining in-flight entertainment, but

creating history”. The first aircraft empowered by dishtv complete with the LIVE TV service,

will be ready to take-off by theend of December, 2006.Kingfisher Airlines FUN TV will now

comprise of 16 channels of LIVE TV showing business news, current affairs, popular sitcoms,

live sporting action, Hollywood and Bollywood blockbusters, chartbusting music, travel and

lifestyle, 5 channels of the very popular broadcasted video content and 1 moving map channel. In

addition guests can enjoy 10 channels of chartbusting music from hip-hop to retro to old Hindi

melodies on Kingfisher Radio. Kingfisher Airlines was the first Indian carrier to offer In-flight

Entertainment onboard its flights across the country.

So sit back, relax and enjoy the dishtv enabled Kingfisher LIVE TV Experience

Kingfisher Airlines to buy 26 percent in Air Deccan for US$135 million

United Breweries (Holdings) Ltd., which runs Kingfisher Airlines, is to buy 26 p

ercent of Deccan Aviation Ltd, which operates the low-cost carrier Air Deccan, f

or US$135 million. Deccan will issue about 35 million shares at US$3.8 each to U

nited Breweries (Holdings), an 18 percent premium to Deccan’s closing price on W

ednesday. UB Group has paid an advance of US$36.82 million and the balance will

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be paid in next four months. UB Holdings, with its Kingfisher Airline, had been

the natural ally for Air Deccan, Capt. GR Gopinath, MD, Deccan Aviation said, ad

ding that both airlines would complement each other. He said, “Keeping in mind v

arious options we had, we felt that in the long term vision of our company, the

association with UB Holdings will make enormous financial and operational sense

where each other’s best practices could be shared.” Air Deccan would continue to

remain as an independent entity and pursue the low-cost model. While Capt. Gopi

nath would be the Executive Chairman of Deccan Aviation, Mr Mallya would be the

Vice Chairman. Both would appoint six directors each besides having six independ

ent directors on the board, while the board would appoint the Chief Executive Of

ficer. Air Deccan’s Chief Financial Officer Ramki Sundaram would be the acting C

EO, Capt. Gopinath reportedly said.

Kingfisher becomes first Indian customer for A380, A350, & A330

Kingfisher Airlines has become the first Indian carrier to sign a firm contract

with Airbus for the A350 and A380 – the company’s newest and largest aircraft, r

espectively – as well as for the A330. The order is for five A350800s plus five

A380s for intercontinental services, and five A330-200s for regional routes. Del

iveries of Kingfisher’s Airbus A330s are due to begin in the third quarter of 20

07, those of the double-deck A380s in 2010, and those of the A350s in 2012. Engi

ne selections have yet to be announced. Kingfisher will use its A330s on regiona

l routes, including flights to Europe, while the A350 and A380 are destined for

longer nonstop flights – such as to the USA. “India is one of the world’s fastes

t growing markets, especially among the younger emerging generation, and these n

ew Airbus aircraft, with their unmatched passenger appeal, economy and commonali

ty, will give us the lead in competing for their business, “ says Dr Vijay Mally

a, Chairman of the UB Group, one of India’s largest companies and the parent com

pany of Kingfisher Airlines. “We’ll begin with the Airbus A330, which is a great

aircraft and already in widespread service, and then we”ll create a sensation w

hen we become the first Indian carrier with the 21st Century flagship A380, befo

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re adding the world’s newest airliner, the A350. Imagine flying the good times,

not just in India, but worldwide!” Kingfisher Airlines is already an important A

irbus customer – it has ordered ten A320s and three A319s, and has options on a

further 20 single-aisle aircraft. It has established itself as an air-travel phe

nomenon in the Indian market, introducing new standards in passenger appeal – su

ch as personal videoscreens in every seat. In quickly establishing a formidable

record for quality of service and reliability in the Indian skies, Kingfisher is

rapidly becoming a favourite of discerning passengers. Airbus’ A330 is part of

the modern market-leading A330/A340 family, which

Mallya s Kingfisher Airlines Plans IPO In 2006

Kingfisher Airlines, the six-month-old airline of UB Group Chairman and liquor b

aron Vijay Mallya may well preen its plumage. The embryonic carrier aims to laun

ch its initial public offering in the second half of 2006 and spread its wings i

nternationally by 2010 under rapacious plans to be the top Indian carrier, Mally

a said. Kingfisher- which positions itself between a budget airline and a full-s

ervice carrier-plans to raise around $200 million in its IPO to help finance its

purchase of 65 new aircraft to drive its global expansion. Then it picked up 50

planes for an estimated $2.1 billion at the Dubai air show in November. A pugna

cious Mallya, who ranked 26th on the Forbes India 40 last year, told reporters a

t a regional aviation conference he expected to "break-even in the first year of

operation if we are lucky, if not most certainly next year". The man dubbed the

Indian Richard Branson revealed last week he had offered to buy a 100% stake in

the embattled Air Sahara, and he s confident that it will outbid the competitio

n to buy the entire stake in debt-laden carrier, which has extensive operations

on the subcontinent and has access to international routes. Currently Indian car

riers can only fly internationally after five years of domestic operations. King

fisher, which calls its stewardesses "hostesses", provides a personal valet serv

ice and goes the extra air-mile to treat its passengers like guests, plans to la

unch non-stop flights from New Delhi, Bombay and Bangalore to New York by 2010 w

hen

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it takes delivery of its first A380. It has also got its beady eye on routes to

China, Hong Kong, Singapore and Malaysia as well as the Middle East.

History/milestone

Kingfisher….

Our ambition is to be the world’s leading local home improvement retailer.

Kingfisher is Europe’s leading home improvement retailer and the third largest in the world, with

nearly 900 stores in 8 countries in Europe and Asia. We have market-leading

Scientific & Industrial Research (DSIR), Dept. of Biotechnology (DBT), Council for Scientific

and Industrial Research (CSIR) and the Ministry of Finance, Govt.of India. Aviation: UB Group

entered aviation sector in 2005 with the launch of Kingfisher Airlines Limited. Kingfisher

Airlines has captured an impressive market share and has established a niche identity for itself.

The airlines recently acquired 25% stake in Deccan Airlines.

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Present History

Sales of the United Spirits Ltd. are expected to exceed 60 million cases during

the fiscal year 2005-06 making the Group the third largest manufacturer of Spiri

ts products in the world. In addition, USL is one of only three in the world to

own seven millionaire brands and at least five brands rated by Drinks Internatio

nal, UK, to be amongst the ten fastest growing brands in the world in their resp

ective categories. The UB Group’s Brewing Enity - called United Breweries Limite

d (UBL) has also assumed undisputed market leadership with a national market sha

re in excess of 50%. Through a process of aggressive acquisition and market pene

tration, The UB Group today controls 60% of the total manufacturing capacity for

Beer in India. The flagship brand, Kingfisher is now sold in over 52 countries

worldwide having received many accolades for its quality. The UB group is also i

nto manufacture of Fertilizers. The group company Mangalore Chemicals and Fertil

izers Limited ( MCF ) has factory at Panambur in Dakshina Kannada district of Ka

rnataka. In August 2007, the group made a first-of-its-kind media alliance for t

he promotion of NDTV Good Times, a lifestyle television channel run by NDTV.

Financials

In July 2007, United Breweries Limited reported volume growth of 16.3% compared

to the previous year.

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.[7] It started its international

operations on 3 September 2008 by connecting Bengaluru with London.

On 7 June 2010 Kingfisher became a member elect of the Oneworld airline alliance when it

signed a formal membership agreement. A firm date to join the alliance will be announced once

the implementation process is underway, it possibly may take 18 to 24 months.

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Operational performance

Kingfisher Airlines Statistics

]Year ended Passengers carried% Change Average load factor

(%)

April 2007 – March 12,414,336% - 61%

April 2008 – March

2009

200910,850,359 12.6% 60%

April 2009 – June

2009

2,851,360 - 69%

milestone

Adrian Sutil is pursued by Lewis Hamiltonat the 2010 Malaysian GP. Kingfisher is a sponsor of

Force India

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Kingfisher Airlines frequent flyer programme, King Club has won Top Honours

at the 21st Annual Freddie Awards in the Japan, Pacific, Asia and Australia

region.

King Club has won the Freddie Awards 2008 in the following categories:

Best Bonus Promotion

Best Customer Service

Best Member Communications (First Runner-up)

Best Award Redemption (First Runner-up)

Best Elite Level (Second Runner-up)

Best Website (Second Runner-up)

Program of the Year (Second Runner-up)

Kingfisher Airlines has received three global awards at the Skytrax World

Airline Awards 2010

Named Best Airline In India / Central Asia; Best Cabin Crew – Central

Asia.

Kingfisher RED named Best Low Cost Airline in India / Central Asia.

NDTV Profit Business Leadership Award for Aviation.

India's only 5 Star airline, rated by Skytrax and 6th airline in the world.

Rated India's Second Buzziest Brand 2008 by The Brand Reporter.

Ranked amongst India's Top Service Brands of 2008 by Pitch Magazine.

Voted as India's Favourite Airline.

Rated as Asia Pacific's Top Airline Brand.

Brand Leadership Award.

Economic Times Avaya Award 2006 for Excellence in Customer

Responsiveness.

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India's No. 1 Airline in customer satisfaction by Business World.

Rated amongst India's most respected companies by Business World.

Rated amongst India's 25 Innovative Companies by Planman Media in 2006.

The Best Airline" and "India's Favourite Carrier' in a Survey conducted by

IMB for The Times Of India.

Best New Domestic Airline for Excellent Services and Cuisine by Pacific

Area Travel Writers Association (PATWA).

Service Excellence 2005-2006 for a New Airline by Skytrax.

Ranked Third in the survey on India's Most Successful Brand launch of

2005 under the Brand Derby Survey conducted by Business Standard.

Buzziest Brands of 2005 by agencyfaqs and The Brand Reporter.

Rated amongst the Top Ten Internet Advertisers by Yahoo.

Rated amongst the top ten in the Best Television Commercial

Jingles by NDTV.

Best New Airline of the Year Award for 2005 by Centre for Asia Pacific

Aviation (CAPA) Award in the Asia-Pacific and Middle East region.

Listed in the top 100 most trusted brand in The Brand Trust Report.

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Vision/Mission

We constitute a large, global group based in India. We associate with world leaders in order to

adopt technologies and processes that will enable a leadership position in a large spectrum of

activities.

--We are focused on assuming leadership in all our target markets.

--We seek to be the most preferred employer wherever we operate.

--We recognize that our organization is built around people who are our most valuable asset.

--We will always be the partner of choice for customers, suppliers and other creators of

innovation concepts.

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--We will continually increase the long-term value of our Group for the benefit of our

shareholders.

--We will operate as a decentralized organization and allow each business to develop within our

stated values.

--We will be a major contributor to our National Economy and take full advantage of our strong

resource base.

--We commit ourselves to the ongoing mission of achieving Scientific Excellence.

Vision

“The Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel

experience to all our guests.”

Our Values

Safety

This is our overriding value. In our line of business, there is no compromise.

Service

We are all in the hospitality business; we must always seek to serve our guests and gain their

trust, goodwill and loyalty.

Happiness

We seek to build an organisation with people who choose to be happy, and will endeavour to

influence our guests and co-workers to be happy too.

Teamwork

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We will succeed or fail as a team. Each one of us must respect our colleagues regardless of their

rank, and we must work together to ensure our mutual success.

Accountability

Each one of us will be held accountable for the successful execution of our duties, commitments

and obligations, and we will strive to lead by example.

“The Kingfisher Airlines family will consistently deliver a safe, val

ue-based and enjoyable travel experience to all our guests.” Our Values Saf et y

This is our overriding value. In our line of business, there is no compromise.

Servi ce We are all in the hospitality business; we must always seek to serve ou

r guests and gain their trust, goodwill and loyalty. Happ iness We seek to build

an organisation with people who choose to be happy, and will endeavour to influ

ence our guests and co-workers to be happy too. Team work We will succeed or fai

l as a team. Each one of us must respect our colleagues regardless of their rank

, and we must work together to ensure our mutual success. Accounta bi lit y Each

one of us will be held accountable for the successful execution of our duties,

commitments and obligations, and we will strive to lead by example.

Why Aviation? What gladdened Dr. Vijay Mallya must have been a Cabinet decisionon

Wednesday, October 20, 2004, which hiked the permitted foreign direct investment (FDI) limit

in domestic airlines to 49% from the existing 40%.

This move is expected to help fledgling airlines like Kingfisher and Air Deccan.

Jet and Sahara lobbied till the last, some political parties (leftists) tried t

o muddy the waters, but the skies were opening up and Dr. Mallya had cause for c

heer. The bogey of national security concerns raised by the JetSahara cartel fai

led. More than the 9% hike, the decision also signaled to domestic airlines and

foreign investors that the government was serious on aviation reform. Starting a

low cost airline is not the most difficult part, because to start a low cost se

rvice with nation wide operations,

•Assuming that the airplanes are leased the cost is typically between $20-40mn; d

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epending on the scale of operations (a full scale carrier will need investment of around $70-

80mn). A regional service can be started at a much lower cost - around $1015mn. Low cost

carriers can break even in a year or two or at most three.New airlines typically have a major cost

advantage, especially for labor, overestablished (mostly state-owned carriers like Indian Airlines

or Air China). Airtransport is the obvious solution for mobility, if fares can be kept low (as

compared to train fares).

•• •

•Why India?

•Every Indian should fly. There are approximately one billion people & only about

0.05% of them fly.

India is 3rd fastest growing domestic aviation market in the world. (last year g

rowth was 23% & will maintain 20% growth in next five years) Indian Subcontinentis the third

largest market for new aircraft in Asia, behind China (1790) & Japan (640). More and more

middle class families now prefer air travel to traditional rail travel. [Growing Middle-Class

(income over Rs.90,000 p.a.)

MISSION

To study the growth and expansion of Kingfisher Airlines.

To study the structure and workings of Kingfisher Airlines.

To compare Kingfisher Airlines with other Airlines. 

To understand the attitu

de towards the services ofKingfisher Airlines.

 To study the achievements of Kingfisher Airlines.

To know the important aspect of Kingfisher Airlines.

QUALITY STATEMENTS

Quality leadership is vital to the long-term success of the UB Group in an increasingly

competitive marketplace.

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Building quality into our workplace, products and service is essential to a successful future for

our customers, employees, supplier’s communities and shareholders.

The UB Group will work to provide products and services that always meet or exceed

expectations 

Management will commit resources and create an environment in which each employee can

contribute skills, talents and ideas to a never-ending process of improvement and innovation in

all aspects of our business.

Products

Cabin classes

Domestic

Kingfisher First

The domestic Kingfisher First seats have a 48 inch seat pitch and a 126 degree seat recline. There

are laptop and mobile phone chargers on every seat. Passengers can avail of the latest

international newspapers and magazines. There is also a steam ironing service on board

Kingfisher First cabins. Every seat is equipped with a personalised IFE system

with AVOD which offers a wide range ofHollywood and Bollywood movies, English and Hindi

TV programmes, 16 live TV channels and 10 channels of Kingfisher Radio. Passengers also

get BOSE noise cancellation headphones.

Domestic Kingfisher First is only available on selected Airbus A320 family aircraft.

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Kingfisher Class

The domestic Kingfisher Class has 32-34 inch seat pitch.

Every seat is equipped with personal IFE systems with AVOD on-board the Airbus A320 family

aircraft. As in Kingfisher First, passengers can access the movies, English and Hindi TV

programmes, a few live TV channels powered by DishTV and Kingfisher Radio. The screen is

controlled by a controller-console on the seat armrest. Earcup headphones are provided free of

cost to all passengers. The default channel shows, alternating every few seconds, The

aeroplane's ground speed, outside temperature, altitude, distance and time to destination; the

position of the aircraft on a graphical map and one or more advertisements.

Passengers are served meals on most flights. Before take-off, passengers are served

bottled Lemonade

Kingfisher Red

Main article: Kingfisher Red

After Kingfisher Airlines acquired Air Deccan, its name was changed to Simplifly Deccan and

subsequently to Kingfisher Red. Kingfisher Red is Kingfisher Airline's low-cost class on

domestic routes. A special edition of Cine Blitz magazine is the only reading material provided.

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Kingfisher Airlines is the first airline in India to extend its King Club frequent flyer program to

its low-cost carrier as well. Passengers can earn King Miles even when they fly Kingfisher Red,

which they can redeem for free tickets to travel on Kingfisher Airlines or partner airlines.

International

Kingfisher First

The international Kingfisher First has full flat-bed seats with a 180 degree recline, with a seat

pitch of 78 inches, and a seat width of 20-24.54 inches.[23]Passengers are given Merino wool

blankets, a Salvatore Ferragamo toiletry kit, a pyjama to change into, five-course meals and

alcoholic beverages. Also available are in-seat massagers, chargers and USB connectors.

Every Kingfisher First seat has a 17 inch widescreen personal

television with AVOD touchscreen controls and offers 357 hours of programming content spread

over 36 channels, including Hollywoodand Bollywood movies along with 16 channels of live

TV, so passengers can watch their favorite TV programmes live. There is 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 includes a social area comprising a full-fledged

bar staffed with a bartender, a break-out seating area just nearby fitted with two couches and bar

stools, a full-fledged chef on board the aircraft and any-time dining. A turn-down service

includes the conversion of the seat into a fully flat bed and an air-hostess making the bed when

the passenger is ready to sleep.

Both Kingfisher First and Kingfisher classes feature mood lighting on the Airbus A330-200 with

light schemes corresponding to the time of day and flight position.

Kingfisher Class

The international Kingfisher Class seats offer a seat pitch of 34 inches, a seat width of 18 inches

and a seat recline of 25 degrees (6 inches). Passengers get full length modacrylic blankets, full

size pillows and meals.

Each Kingfisher Class seat has a 10.6 inch widescreen personal television

with AVOD touchscreen controls. The IFE is similar to that of the international Kingfisher First

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class. It can also be controlled by a detachable remote-control console fitted in the armrest. This

device can be used to control the IFE, reading-lights, play games and even has a credit-card

swipe for shopping on Kingfisher's 'Air Boutique'. It also has a facility for sending text-

messages, though the service isn't provided by Kingfisher.

In-flight entertainment

Kingfisher's IFE system is the Thales TopSeries i3000/i4000 on-board the Airbus A320 family

aircraft, and Thales TopSeries i5000 on-board the Airbus A330 family aircraft provided by

the France-basedThales Group.[24]

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 earlier, a complimentary bottle of lemonade

and earphones for use with the IFE are still given. 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.[25] 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.

King Club

The Frequent-flyer program of Kingfisher Airlines is called the King Club in which members

earn King Miles every time they fly with Kingfisher or its partner airlines, hotels, car rental,

finance and lifestyle businesses. There are four levels in the scheme: Red, Silver,Gold and

Platinum levels. Members can redeem points for over a number of schemes. Platinum, Gold and

Silver members enjoy access to the Kingfisher Lounge, priority check-in, excess baggage

allowance, bonus miles, and 3 Kingfisher First upgrade vouchers for Gold membership. Platinum

members get 5 upgrade vouchers.

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Kingfisher Lounge

Kingfisher Lounges are offered to Kingfisher First passengers, along with King Club

Silver and King Club Gold members. Lounges are located in:

Bengaluru International Airport

Chennai International Airport

Chhatrapati Shivaji International Airport  (Mumbai)

Cochin International Airport  (Kochi)

Indira Gandhi International Airport  (Delhi)

London Heathrow Airport

Netaji Subhash Chandra Bose International Airport  (Kolkata)

Rajiv Gandhi International Airport  (Hyderabad)

Code of conduct

KINGFISHER AIRLINES’ (formerly DECCAN AVIATION LIMITED) ("We", "Our",

or the "Company") 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.

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The members of the Board and Senior Management Personnel of the Company acknowledge and

accept:

i. the responsibility to carry out their duties in an honest and businesslike manner and within the

scope of their authority, as set forth in the general laws of the land where they operate and in the

Memorandum of Association and Articles of Association of the Company, Corporate

Governance Guidelines; and

ii. that they are entrusted with and responsible for the oversight of the assets and business affairs

of the Company in an honest, fair, diligent and ethical manner, and with the duty to make and

enact informed decisions and policies in the best interests of the Company and its stakeholders.

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:

a. Act ethically, diligently, openly, honestly, in good faith and with integrity;

b. Act in the best interests of, and fulfill their fiduciary obligations to the Company and its

stakeholders;

c. Act in good faith, responsibly, and with due care, competence and diligence, without

allowing their independent judgment to be subordinated;

d. Dedicate their best efforts to advancing the Company’s interests and act in a manner that

will enhance and maintain the reputation of the Company;

e. Abide by all applicable laws and regulations, confidentiality obligations and specially

with the Company’s Insider Trading Rules;

f. Become and remain familiar with the Company’s 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;

g. Conduct themselves in a professional, courteous and respectful manner;

h. 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;

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i. 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;

j. 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;

k. 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;

l. 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;

m. Maintain the confidentiality of all material non-public information about the Company,

its business and affairs;

n. 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;

o. 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;

p. Not use confidential information acquired in the course of their service as Directors or

senior management personnel for their personal advantage.

q. Provide leadership in advancing the Company's vision, values and guiding principles; and

r. 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.

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s. Safeguard and properly use Company assets and resources, as well as assets of other

organizations that have been entrusted to the Company.

t. Never request gifts, entertainment or any other business courtesies from people doing

business with the Company (including suppliers, customers, competitors, contractors and

consultants).

Management team

Dr. Vijay Mallya is Chairman of The UB Group, one of India’s

largest conglomerates with diverse interests in brewing,

distilling, real estate, engineering, fertilizers, biotechnology,

information technology and aviation.

Dr. Mallya, was elected by shareholders as Chairman of The UB

Group in 1983, at the age of 28. 

The UB Group’s Kingfisher Airlines is today the undisputed

market leader in India’s booming aviation market. In the

short span of just under three years since it was launched,

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Kingfisher Airlines has redefined the whole experience of

flying and has raised the bar by unleashing a host of product

and service innovations. It has received numerous awards

since its inception. With the merger of Air Deccan and

Kingfisher Airlines, the airline covers all segments of air

travel from low fares to premium fares and offers the

maximum number of flights offered by any single airline

network in India.

Dr. Vijay Mallya is the Chairman of public companies both

in India as well as in the USA. He has been the Chairman of

Aventis Pharma

India (previously Hoechst) as well as the Chairman of Bayer

Crop Science in India for over 20 years, in addition to being the

Chairman of several other corporations

United Breweries Ltd (UBL), the flagship company of The UB

Group, is the largest brewing company in India with a national

market share of 50 per cent. Kingfisher beer is currently

available in 52 countries outside India and leads the way amongst

Indian beers in the international market.

United Spirits Limited, the flagship of The UB Group comprises a basket of 145 brands

including 19 millionaire brands. United Spirits recently acquired a hundred percent of premium

scotch distillers Whyte & Mackay.

Dr. Vijay Mallya has received several professional awards both in India and overseas. He

was conferred a Doctorate of Philosophy in Business Administration, by the Southern

California University, Irvine. He has also been nominated as a Global Leader for

Tomorrow by the World Economic Forum. He was conferred France’s highest civilian

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honour – “ Officier de la legion d” Honneur” for his exceptional career as businessman

heading a multinational with diversified interests.

Dr. Mallya is the first Indian ever to become the owner of a Formula One Team. The

Netherlands-based Mol Family and Dr. Mallya have formed a consortium that is now the

joint owner of Force India Formula One, which is also India’s first-ever Formula One

Team and represents India’s first, truly global sports foray.

He is a keen sportsman and is an ardent aviator and yachtsman of distinction. He not only

participates in various sporting events but also supports various sporting activities worldwide.

Kingfisher Airlines is led by a dynamic, extremely talented and experienced team

:Boar d o f Dir ec tors

Dr. Vijay Mallya, Chairman & CEO 

 Mr. Subhash Gupte, Vice–Chairman, The UB Gr

Oup

 Mr. Piyush Mankad

 Mr. A.K. Ravi Nedungadi

 Diwan Arun Nanda

 Mr. V.K.

Rekhi

 Dr. Naresh Trehan

 Mr. Rup Pillai

Op er ating Tea m

Mr. A. Raghunathan, Executive Vice President and Chief Financial Officer 

Mr.

Hitesh Patel, Executive Vice President

 Mr.Rajesh Verma, Executive Vice President

 Captain D D Gandhi, Vice President – Operations

 Chandrashekhar Nene, Vice President – IT

 Mr. C.S. Tomar, VP- Engineering & Maintenance

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 Bharat Raghavan, Assistant Vice President - Legal and Secretarial

Ms. Rubi Arya, Assistant Vice President HR  Mr. Ajit Bhagchandani, General Ma

nager - In-Flight-Services

 Mr. Ashwani Khanna, General Manager - Airport Services

 Mr. Bhupesh Joshi, General Manager – Airports

 Capt Jesudasan, Chief Examiner

 Captain K. Ravindran, General Manager - Flight Safety

 Major Leslie Ojjit Missal, General Manager – Security

 Mr. Ratan Ratnakar, General Manager - Revenue Optimization

 Mr. Sanjay Bahadur, General Manager - Corporate Affairs

 Mr. Shailesh Borkar, General Manager – Finance

 Mr. Umesh Rindani, General Manager - Revenue Accounts

 Mr. S.K. Ghorai, General Manager - Quality Control

 Captain Sanjeev Marwah, GM-Flight Ops (A320)

 Capt PA Bhushan, GM-Flight Operations(ATR)

 Mr. Gaurav Commitment Rathore, General Manager Quality & Guest

Mr. Vijay Nair, General Manager – Cargo 

Mr. V. Seetharaman, General Manager

- Engineering

Kingfisher Airlines Strengthens Management Team

Mumbai, February 11, 2010 - Kingfisher Airlines, India’s only Five Star airline rated by

Skytrax today announced the appointment of Mr. Amit Agarwal as Senior Vice President-

Corporate Development & Planning at Kingfisher Airlines Limited.

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Commenting on the appointment, Dr. Vijay Mallya, Chairman and CEO, Kingfisher Airlines

Limited said, “Amit has a very strong airline background with rich experience spanning 17 years

with some of the leading airlines of the world. This appointment is consistent with our goal to

strengthen the Kingfisher Airlines Leadership Team with experienced industry executives”.

In his most recent assignment as Managing Director for Revenue Management, Pricing &

Network at Delta Airlines, he was responsible for directing and managing projects impacting

various aspects of airline revenue, technology logistics and resource allocation. Prior to Delta he

was with Continental Airlines & American Airlines.

Mergers

Kingfisher Red, known formerly as Simplifly Deccan and prior to that as Air Deccan, is a low-

cost brand run by Kingfisher Airlines. It is headquartered inMumbai, India.

Accquisition

Kingfisher Airlines' parent company United Breweries Group acquired a 26 percent stake in Air

Deccan's parent company Deccan Aviation. The combined fleet of 71 Airbus A320 family

and ATR aircraft will operate 537 flights to 69 Indian cities, "whilst taking advantage of

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unparalleled synergy benefits arising from a common fleet of aircraft," according to Kingfisher.

"For the near future, Kingfisher will continue to serve the corporate and business travel segment,

while Air Deccan will focus on serving the low-fare segment, but with improved financial

prospects for both carriers," Kingfisher added. Speaking to reporters yesterday, UB Group head

Vijay Mallya said there were no plans to launch an IPO "at this stage" and that UB Group would

have no problem funding the acquisition.

Rebranding

In October 2007, after the acquisition by Kingfisher Airlines, Air Deccan was renamed

"Simplifly Deccan" with its new tagline being "The choice is simple". The old logo was replaced

by the Kingfisher logo and the same font of Kingfisher Airlines was also used on Simplifly

Deccan. The old yellow and blue colors of Air Deccan were replaced by Kingfisher Airlines's red

and white, supposedly to give the same premium look and feel to Deccan as well.  The check-in

counters at airports as well as the crew uniforms now had the same red and white colors as those

for Kingfisher Airlines. The new look airline also promised excellent on-time performance, a

wider network and "little delights all the way". Check-in staff would

longer be outsourced, but managed by the airline's own employees, thereby "increasing

accountability and improving service delivery," said Mr Mallya. He also announced that the new

airline would slowly phase out the ageing ATR 42 and A320 planes and replace them with

entirely new aircraft.[15] Changes were also made in the flight schedule of Simplifly Deccan

airlines to better align with that of Kingfisher Airlines. According to agencies, the re-branding

was expected to cost around Rs 15 crore (approximately $3.8m).

In August 2008, it was announced the airline will further change its branding to Kingfisher Red

and will begin operating under Kingfisher's IATA code IT

Strategic alliances

Mumbai: a global cruise firm that owns 22 ships, and Kingfisher Airlines Ltd have formed an

alliance that will offer customers bundled vacation packages and additional benefits for airline’s

frequent fliers.

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This is the first time Royal Caribbean has entered into a strategic alliance of this magnitude in

the Asia-Pacific region, where its ships are sailing out of Singapore, Hong Kong, and Dubai.

Kingfisher Airlines flies to all three of these embarkation ports from cities throughout India and

its tour division, Kingfisher Holidays, bundles vacation packages that include both a Royal

Caribbean cruise and airfare for the Kingfisher Airlines passengers.

Kingfisher Airlines is a member-elect of the global grouping of airlines, oneworld, while Royal

Caribbean International is one of the largest cruise lines in the world, offering vacations to more

than 260 ports around the world.

As a part of this alliance, Kingfisher Airlines is launching an online lucky draw for its frequent

fliers.

A media statement said that Kingfisher Airlines’ frequent fliers will earn miles when they book a

qualifying Royal Caribbean International cruise.For example, frequent fliers will earn 1,500

miles when booking a balcony stateroom on a 4- to 5-night cruise or 2,500 miles for a 6- to 8-

night cruise in a Junior Suite. Members can redeem their miles for upgrades and free airline

tickets.

Csr-corporate social responsibilities

The UB Group is known as a large USD 2.2 billion corporate conglomerate with business

interests ranging from spirits, beer, engineering, fertilizers and civil aviation to pharmaceuticals.

Few, however, are aware that UB is a silent crusader in the field of community services in its

own committed way. The Group has over the years emerged as a socially responsible corporate

citizen.

Its keen pursuit of activities in the field of Life Sciences has led to the setting up of a super

specialty hospital - Mallya Hospital at Bangalore. In June 1991, the Mallya Hospital was

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inaugurated in the central business district of Bangalore in a multi-storied complex with

excellent medical equipment and best medical consultants. It was initially a 150-bed hospital,

which has grown into a 450-bed hospital of which approximately 50 beds are for critical care.

The hospital boasts of multi-specialty disciplines and is the first such hospital in India to be

awarded the ISO 9002 certification. Subsidized health care is given to the under privileged class

of society by providing a general ward which is reserved for them.

The 24 hour Casualty and Trauma Care services are geared to handle all kinds of emergencies,

ably supported by state-of-the-art, imported high-tech ambulances. These ambulances are fully

equipped with Paramedical staff and are literally CCU's on wheel.

The Vittal Mallya Scientific Research Foundation was set up in December 1987, in memory of

the Group’s Founder, late Mr. Vittal Mallya. It has been actively involved with a mission called

“Science for Humanity” and is a non-profit organization participating with the Government in a

Public Private Partnership on various projects.

In the field of education, the Group has assisted in the setting up of the Mallya Aditi

International School where the best possible education is imparted. Mallya Aditi International

School is located on a sprawling five-acre campus in the northern outskirts of Bangalore. It

boasts of buildings of award-winning architectural standard, which allows students to interact

with the sky, the earth and plant life as they move from room to room.

The beautification and entire maintenance of Vittal Mallya road has been the responsibility of the

Group for over 15 years. Plans are afoot to further beautify the road.

The Group’s commitment to the society is not restricted only to the city of Bangalore, but

outside of Karnataka as well. It has also provided an extensive drinking water scheme in

Srinivasapura village and has been actively involved in installation of Rain Water Harvesting

structures at their Palakkad brewery thereby providing drinking water to Ganeshpuram village,

Palakkad. A similar project was carried out at the Brewery in Ponda, Goa, which not only

benefited the Brewery but also the village, whose well-water levels rose to help tide over their

water problems during the dry months.

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Besides, there is an ongoing commitment to society by way of sponsorships of various events

which are organized by charitable bodies. The Group has also been responsible for providing bus

shelters in the city and water tankers to villages around Bangalore facing severe water shortages

during summer.

The UB Group has rebuilt and renovated the Cubbon Park Police Station, exactly a century after

it was originally built as a guard room for the statue of Queen Victoria. Great care has been taken

to maintain the colonial style of this quaint architectural heritage building. This is another unique

Public Private Partnership which the Group is proud to be associated with. The Group will

continue its commitment to society for the betterment of the community.

vittal Mallya Scientific Research Foundation (VMSRF)

RESEARCHING WELLNESS OF LIFE

Established (1987), in memory of the Group's illustrious founder Mr. Vittal Mallya, its prime

objective has been laid to gain both newer and novel technologies that will have substantial

application in industry and health care.

Ably supported by The UB Group, it has established collaborative links with some reputed

research and academic institutions within the country and abroad. The Foundation is led by a

modest group of dedicated scientists trained in reputed institutions in India and abroad.

Today, it is recognized by the Departments of Scientific & Industrial Research (DSIR), Dept. of

Biotechnology (DBT), Council for Scientific and Industrial Research (CSIR) and the Ministry of

Finance, Govt. of India, and has an incredible list of credits to its name.

Patents obtained by VMSRF include

Method of preparation of Insulin by cleavage of a fusion protein and fusion proteins containing

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Insulin A and B Chains (US Patent No.: 6337194B1).

A new soluble double metal salt of group IA IIA of (-) Hydroxycitric acid, process of

preparing the same and its use in beverages and other food products (US Patent No.: 6160172).

An energy efficient process for the production of ethyl alcohol (Patent awarded jointly with

IMTECH).

CheckMite composition and a process for preparing the same (US Patent No.: 6060075).

A process for the preparation of water soluble 'C' inclusion complex of Neem seed Kernel

extracts containing Azadirachtin-A and its use in insecticidal formulation (US Patent filed).

1, 4-Dihydropyridines as calcium channel blockers (US Patent filed).

Swot analysis

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

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Focus on LCC segment as well with Kingfisher Red

Financial backing of UB group

Strong and competent management

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

High maintenance cost at ground and airline

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

- Poor service of Indian Airlines / Air India

- Problems with Jet airways (strikes etc)

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- Growth in air travel, with businesses and markets doing better.

- More leisure travelers (Eg spicejet has recently added a new flight from Mumbai to Goa)

4.   THREATS

- Rising oil prices play havoc with prices and therefore with load factor

- Other low cost airlines providing better services with their newer airplanes (Kingfisher

Red has old aircrafts)

- Government initiatives in railways with fast running trains like Duronto.

- Better roads mean business travelers may prefer taking the road than the train for short

distances, since it comes out cheaper and there are no delays at airports etc.

- Threat of terrorism leads to fewer international travelers

Falling demand

Over capacity in the skies

ATF prices

Economic slowdown

Infrastructure issues

RECOMMENDATIONS

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The new trends of globalization of the economy, liberalisation and technological developments

have opened up a new landscape in the aviation sector. The following recommendations have

been put forth after thorough study of the civil aviation in general and Air India in particular.

Market oriented approach: The Indian civil aviation has to follow the foot prints of international

aviation environment which adopted the market oriented approach after reporting a cumulative

industry loss on international scheduled services of US $ 15.6 billion during 1990 – 1993.

Liberalisation and privatization came to their rescue. Deregulation, new entrants, low fares,

takeovers and mergers became the solution. Similar is the scenario faced by indian airline

companies. Hence is the need for more customer focused initiatives.

Alliance and Mergers: Airline companies are predominantly capital intensive segments. For

instance, a new 747-400 that is mainly used for high volume and long distance travel can cost

about 200 million dollars and a new 737-800 used for regional flights costs about 600 million

dollars. Hence, though initially many players may be seen in this industry, later they enter into

joint ventures and mergers. For instance, merger of Air India and Indian and that of Jet Airways

and Air Sahara. Such mergers are not an end by itself. What might be required in the long run is

two or more airlines forming alliances both in the international and domestic front

Primary to Secondary airport. Because the primary airports can no longer be able to provide

such services, there is an urgent need to shift airport model from primary to secondary. No-frills

carriers will be able to better compete with major IIMK IIML Conference on Global

Competition & Competitiveness of Indian Corporate 320 carriers in competitive markets if they

operate at secondary airports. The government should support and offer temporary subsidies to

secondary airports for this purpose.

Outsource strengths: Airlines which have major strength in providing support services like

maintenance, engineering and ground support services could hive these activities as separate

companies. In line with the global trend, this would enable the airlines companies to benefit

from outsourcing these services and thereby reduce its overheads. For instance, As Air India’s

inherent strengths lies in support services, such services can provided to all other airlines at

large.

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Conducive climate for Strategic Investment: India is currently in the unusual situation of having

potentially billions of dollars of investment preparing to enter the sector – but lacks a clear policy

framework. The domestic airline industry is expected to raise in excess of USD1billion in private

equity and debt in 2007/08, with IPOs likely by Kingfisher and Air India/Indian in 2008/09.

Hence the Ministry of Civil Aviation had to immediately respond to clearing up policies and

procedures in this regard.

Another key policy issues is the level of investment by foreign airlines in Indian carriers,

currently prohibited. Opening this up could bring in much-needed strategic investment and

expertise. Similarly, increasing the overall foreign investment cap from 49% to 74% could ease

the availability of capital generally.

BIBLIOGRAPHY

http://www.foolonahill.com/mbaaviation.html

http://www.economywatch.com/world-industries/airline-industry-aviation-industry.html

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http://en.wikipedia.org/wiki/Airline

http://en.wikipedia.org/wiki/Airline

http://en.wikipedia.org/wiki/JetLite

http://goibibo.ibibo.com/airline/jetlite/

http://www.mapsofindia.com/air-sahara.html

http://www.cleartrip.com/flight-booking/jetlite-airlines.html

http://www.jetliteonlinebooking.net.in/

http://trak.in/tags/business/2010/11/30/jet-airways-jet-konnect-jet-lite-branding/

http://www.slideshare.net/suresh.singh/growth-strategies-presentation-805753

http://www.jetairways.com/EN/IN/PressReleases/

Jet_Airways_is_the_first_airline_in_India_to_introduce_an_in-

flight_safety_manual_in_braille.aspx

http://dspace.iimk.ac.in/bitstream/2259/490/1/309-322.pdf

http://mamikikeyu.wordpress.com/2011/04/17/strategic-alliances-airlines/

http://www.iisjaipur.org/iiim-current-07/OORJA%20May%20Aug%2007/04factfile.pdf

http://en.wikipedia.org/wiki/Jet_Airways