Kingfisher Airlines Limited was an airline group based in Bengaluru in India and it was subsidiary company of United Breweries Group. It was owned by CMD Vijay Mallya. It was established in 2003 and started its operation on 9 May 2005. It operated flights to 25 domestic destinations in India. On 3rd September 2008, Kingfisher Airlines started its first international operations by connecting Bengaluru to London. Kingfisher was originally launched as an economy airline with single – class configuration airlines with good food and impressive entertainment systems. After two year of operation, suddenly they shifted their focus to luxury. In order to expand quickly, they keep on changing their business model, there was no time for the airline …show more content…
Whether they want to go for low cost/budget airlines or luxury section. If they focus on either one, they might have succeeded. Or they can go for low cost airlines at domestic level to fulfill needs of large Indian population and go for luxury airlines at international level.
2) Acquisition of Air Deccan: Kingfisher acquires Air Deccan to get the international airlines flying license. They should use their aircrafts to increase its connectivity to major flying routes in India at a lower cost than other competitors in India, due to having more number of air crafts.
3) Professional management: They should have employed professionals from world who has rich experience in managing the airlines industry for example Singapore Airlines.
4) Sell away IPL team/ business: After one or two years, Kingfisher should sell away their IPL team to generate some cash for their airline business and to make a full stop on cash burning activities like advertising for IPL team and related activities.
5) Input more funds: During financial loss in Airlines business, the parent company, United Breweries need to input more money to take out airlines business from debt trap and try to win confidence of investors and
In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.
Established in 2005, until December 2011, Kingfisher Airlines had the second largest share in India's domestic air travel market. However, the airline had been facing financial issues for many years, and due to a severe financial crisis faced by the airline at the beginning of 2012, this share dropped to the lowest in the market in April 2012.
be a failure on the airlines part, but rather the nature of the business itself not being able to keep
Five major passenger airlines dominate their industry by size (Grant, 2013, p. 479). But their size, legacy costs and hub and spoke business model created significant exit barriers (Grahm & Vowles, 2006, p. 108). New competitors not only started with no entry barriers but also few if any exit barriers. Legacy carriers had to identify new innovative strategies to augment their core business models to profitably compete.
using their own core competencies to turn the airline around. By applying their own strategies,
Air India began its services in 1932 and has been operating in India for the last 78 years. It is the oldest passenger flight of India. The government of India holds 49% of Air India’s share with an option to acquire 2% more since 1946. This made Air India a public sector thus enabled it to operate flights internationally. In spite of being a public sector company Air India has been running in loss for the past 10 years.
* Qantas Airways Limited may have won the capacity war between itself and Virgin Australia, but the cost has been considerable. The company now needs to consider drastic measures that were previously out of the question, such as selling low cost carrier Jetstar or its highly profitable loyalty programme. Much of Qantas Airways Limited’s future, however, is in the hands of the Australian Parliament, and whether or not it dismantles the 1992 Qantas Sales Act to allow majority foreign ownership.
There were few players at the time of independence including Tata Airlines, Indian National Airways, Deccan Airways .In 1953 ,the government nationalized the
Air Asia leading airline was established with the dream of making flying possible for everyone. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. With a route network that spans through to over 20 countries, Air Asia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes and a passionate approach to business. Together with our associate companies, Air Asia X, Thai Air Asia, Indonesia Air Asia, Philippines Air Asia and Japan Air Asia.
The other factor that leads to the success of the airline had adequate capital to start the
From these calculations it is apparent that the firm is making a loss on these flights. This is a weak position to be in and the firm should consider alternatives.
Airline Industry is 500 billion dollars, creative and dynamic industry. In early 2001, airline business was going through very rough patch because of economic crisis
Abstract The aim of this paper is to identify challenge faced to Low-Cost Carriers (LCCs) or Low-Cost Airlines and provide new insights into the development and competitive strategy for LCCs. LCCs are still a relatively new phenomenon in Australia since Virgin Blue and Jetstar came to the market. There are over 30 LCCs have been launched since 2002 worldwide. In fact, LCCs have been very successful in the USA and Europe since 1990s. For example, in 1994 less than 3 million passengers flew on LCCs. In 1999, five years later, this figure had risen to about 17.5
To be able to adjust with stiff competition that keep increasing in the airlines market, airlines industries tend to come up with different approaches and strategies to be more competitive. Air Asia, like any other airlines adopt strategic approach to marketing and expand their market reach and give better and satisfying service delivery to their target market. Being an industry that considers differentiation strategy, Air Asia continue to focus on their low cost approach, frequently flights approach, guest convenience, ticketless services, easy payment channels, internet booking, reservations and sales offices, and authorized travel
QANTAS, one of the world’s oldest airline was founded in November 16, 1920 in Queensland. The company is registered in the name of Queensland and Northern Territory Aerial Services Limited (QANTAS). It is the tenth best airline in the world which ranked seventh in the category of world’s best business class airlines and fourth in world’s best inflight entertainment in 2015 (Platt, 2015). Starting with the small biplane which had capabilities of transporting only two passengers, the company has now advance and luxurious Airbus with capabilities of carrying 500 passengers around half way of the world in a single day. It employees over 30,000 people and collects about $1.6 billions of revenue in a year. ("Qantas | All Inclusive Airfares On Australia Pacific 's Best Airline," 2016).