Kingfisher Airlines - The 'Funliner' Experience

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Case Details:

Case Code : MKTG131
Case Length : 14 Pages
Period : 2005 - 2006
Organization : - Kingfisher Airlines
Pub Date : 2006
Teaching Note :Not Available
Countries : India
Industry : Aviation

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Prior to its launch, KFA signed a 'non-poaching alliance' with Air Deccan under which both airlines agreed not to hire each other's employees. However, most of KFA's crew came from Jet and Sahara.

KFA's flight attendants also called 'flying models' were selected through a national level model contest. The attire of KFA's cabin crew was designed by noted fashion designer Manoviraj Khosla.

KFA also stressed the fact that its employees had to be capable enough to meet the airlines' high service standards...

KFA's Expansion Plans

During KFA's launch function in May 2005, Mallya mentioned that the airline would add at least one aircraft to its fleet every month till the end of 2005. KFA started off with four A320's and had nine aircraft by the end of December 2005. In June 2005, KFA placed an order worth US$ 5 billion at the Paris Air Show, for five new A380 aircraft, five A350-800 aircraft, and five A330-200 aircraft. KFA was the first Indian carrier to place an order for A380s.

Will the good times last?

The proposed buyout of Sahara by Jet Airways and the price war among all the airlines was an indication of the competition building up in the Indian aviation sector. With regard to the increased competition, Mallya said, "Sure there will be a bloodbath ... in so-called low-cost airlines who seek to convert the railway passenger into airline passenger. We are positioned extremely differently.” He also said that KFA targeted the growing middle class segment that was net savvy, young and upwardly mobile, with a propensity to spend.

Exhibit

Exhibit I: Brief Note on the UB Group
Exhibit II: Market Share of Major Airlines in India (As On January 2006)
Exhibit III: List of Airlines That Were Planning to Start Operations (As of April 2006)
Exhibit IV: Comparision of Fares of Various Airlines

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