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Service Management
Presentation on
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AVIATION
INDUSTRY
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TEAM MEMBERS
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AVIATION INDUSTRY
• One of the fastest growing industry
• Private airlines account for around 75% of
the domestic aviation market
• Origin of Indian civil aviation industry can
be traced back in 1912
• Domestic airline market has become very
competitive
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CLASSIFICATION AND
• TYPES
•
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SCHEDULED AIR
TRANSPORT SERVICE
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•
• Air Cargo Service
•
••
•

• • Scheduled or non-
scheduled
•

• Charter basis
•
Non -Scheduled air transport service

• Specific permit
•

• No permission to required for

publish time destinations
schedule and outside India
issue tickets
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Apart from this other

• players categorized into:
• Public Players: Air India, Indian Airlines,
• Private Players: Air Sahara, Kingfisher
Airlines, Spice Jet, Air Deccan,
• Start-up Players: Omega Air, Magic Air,
Premier Star Air
 PEST ANALYSIS
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Economic
•

•
•

Political

• Susceptible to the
•

changes in the •
political environment • Business cycles
• Affected by the trade affect airlines
relations between 2 industry
nations • Global recessions
• Airlines suffer from
the problems of high
corruption levels
•
 PEST ANALYSIS 10

Technological
• Changing travel habits of • Internet has provided
people
many opportunities
• Serve people from varied
income groups • Many internet based
services are being
• Every individual expects provided
customization to the
maximum possible extent • Other developments
• including…….
• A very good example is
of AAI
•
MAJOR PLAYERS IN 11

INDIAN AVIATION
INDUSTRY
Service POSITIONING 12

Low cost Carriers

changing the game

Indigo

Price
Market Share 13
KINGFISHER AIRLINES 14
 KINGFISHER 15

• Kingfisher
AIRLINES
Airlines is a wholly owned subsidiary of
United Breweries Group.
• Kingfisher Airlines Limited is an airline company based
in Bangalore, India
• Operates more than 400 flights a day, network of 77
destinations, with regional and long-haul international
services.
• One of six airlines in the world to have a five-star
rating from skytrax.
•
•

•
•
 KINGFISHER AIRLINES 16

q Main Bases :
§ Bangalore's Bengaluru International Airport
§ Mumbai's Chhatrapati Shivaji International Airport
§ Hyderabad's Rajiv Gandhi International Airport
§ Delhi's Indira Gandhi International Airport.
§ United Breweries Group, has a 50 percent stake in low-cost
carrier Kingfisher Red, formerly known as Air Deccan.
§ In 2008, Kingfisher chairman Vijay Mallya and his Jet Airways
counterpart Naresh Goyal announced a strategic alliance.
•
•
•
 TRAVEL ASSISTANCE
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• Special Care
ü Unaccompanied Minors
ü Senior Citizens
ü Special Needs
• Baggage Tracer- World Tracer
• Special Fares
ü Armed Forces
ü Senior Citizens
ü Student Concession
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PORTER ’ S FIVE FORCES

MODEL
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Threat from
new Entrants
( Virgin
Atlantic,
Qantas Airways)
Bargaining
Power of
Threat from Customers
Bargaining Competition •Economic &
power of (Jet Demographic
Suppliers Airways, Indian changes
Airlines etc) •Higher disposable
incomes
•Increasing no. of
working women
Threat from •Increasing
Substitution awareness
( other •Exposure to
modes of global brands
transportation)
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SWOT ANALYSIS
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- Strengths - Weaknesses
•First airline with full
new fleet of aircraft •Service delivery to
metros and other big
•Quality hospitality cities
provided to customers
•Yet not in profit
•Route rationalization
•High attrition in top
•Already have training brass
academy
•High ticket pricing
•
•
•
- Opportunities - Threats
•Under penetrated domestic •Existing Operators
market
•Infrastructure issue
•International market
•Fuel price hike
•Untapped air cargo market
•Economic slowdown .
•Expanding tourism
industry

•
 BUSINESS STRATEGY
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• Appealing Promotional Line

• Launched Kingfisher express

• Gave best services to its customers

• Company came up with only one class airlines

• Advertisements hoardings at airports

• KFA signed a “non-poaching alliance” with Air Deccan

•

•
 Contd…... 23

• INOX multiplexes in Mumbai publicized

• 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

• The UB groups monthly magazine called “Pegasus”

•
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7 P’s OF AVIATION
INDUSTRY
 PRODUCT
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•

• Domestic & International Air Transport Service.

• 74 domestic destinations• & 8 international destinations
in 8 countries across Asia & Europe.
• Began its international operations by connecting
Bangalore to London
•Services

•Domestic & International:

•Kingfisher First

Kingfisher Red
Kingfisher Class
•
•
•
•
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In-Flight entertainment
 SECONDARY SERVICES
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• King mobile
•
• Little Wings
•
• Kingfisher Holidays
•
• Kingfisher Elite
•
 PLACE
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• Services ranges from Ahmadabad to Agartala & to the major

cities such as Delhi, Bangalore, & Chennai etc.
• To target the metro cities or the tier 1 cities in India
• Tickets can be booked through various channels
ØOnline Booking- www.flykingfisher.com
ØOnline Booking - Yatra.com, MakeMyTrip.com,
ezeego1.com
ØCredit Cards & Debit Cards Payment
ØSMS / Call
ØOutlets in every major city and at every airport
across the country
• Head office is Kingfisher House in Vile Parle (East),
Mumbai,well equipped with trained employees &n spread of
offices across India
•
 PRICE 29

• Higher income group as well as the upper middle

class background.
•
• The youth & the high lifestyle segments.
•

• Sec A, sec B+ socio economic class mainly in

the age group of 25-45 years
•
• Services offered by kingfisher do emphasis on
their policy to target those segments which
are willing to pay for luxury.
•
 PROMOTIO 30

•
N
Showcase themselves as “as new flying
experience
• Many events and advertisements
• Multiple touch points and finer promotional
services
• Loyalty and frequent flyer programs are also
carried out.
• Sponsored many cultural events, sports
events and charity programs
•
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PROMOTION:
ADVERTISEMENTS & PUBLICITY

• Hoardings Brand Ambassador

•
•

NDTV Good
• Media &Press
Releases
• Times Tagline
 SALES PROMOTION
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• Travel Agencies Offers

•

• King Club
»
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 PEOPLE 34

• People’ are the most important ‘p’

• Provide most services that is the selection, training,
and motivation of employees
• There is the ancillary service personnel, the travel agent
who plays a very important role in creating the service
exchange but is not a part of the service.
• The front line staff play a critical role and need to
possess ‘empathy
• Are sent on a 21 day training programme
• One-month bonus or some incentives
•
 PROCESS 35

• Emphasizes on the involvement of channels,

front line staff, travel agency offices, offices
of the tour
• Confirmation of seats
• Details of booking
• Offers concession and allows a change in the
reservation status
• Passenger convenience.
• Provides various facilities at the airport
• Convenient travel

•
 PHYSICAL EVIDENCE 36

• Seating configuration and in-flight food

• Best commercial aircraft
• - Boeing & Airbus -
• Offers a wide selection of meals & highly comfortable
seating.
• Provides extremely spacious and well designed booking
offices and ticket counters
• Elegant interiors and well designed seats

•
•
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 Flower of Services- KINGFISHER 39

AIRLINES

Information

Order Taking Consultation

TRANSPORT

Hospitality & Caretaking Safekeeping

Billing & Payment Exceptions

 BLUEPRINTING 40

• Useful tool to assess and identify service

evidence opportunities.
• The role of customers and employees and the
visible elements of the service are
simultaneously displayed by the service map.
• Blue print provides 2 additional features to add
to the management information.
• 1. provides greater attention to customer interaction;
• 2. Provides a visual representation of the structure
of the service.
•
•
 SUGGESTIONS TO KFA
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• Remove the flights from low frequency routes

• Try to bring down the cost-per-flight if an airport
services more number of flights
• Improve revenue-per-passenger
• Avoid aggressive expansion of fleets
• Avoid full-course meals, give snacks
• Try to focus on smaller aircrafts (50-70 seaters) and fuel
efficient planes for short distance
• For a long term strategy, internationally focus should
remain on one region at a time
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 CHALLENGES 43

• Excess Capacity
• Several new aircrafts were bought within a short span
of time which resulted in excess capacity of around
15% to 20%.
• High Debt Burden
• The top three airlines including Air India, Kingfisher
Airlines and Jet Airways are now carrying a
cumulative debt burden of approximately $8 billion.
• Poor Infrastructure
• Maintenance and Air Traffic Control (ATC)
infrastructure are grossly inadequate if the
industry expects to grow any further.
•

•
 CHALLENGES 44

• Employee Shortage
• There is clearly a shortage of trained and skilled
manpower in the aviation sector as a consequence of
which there is cut-throat competition for employees.
• Regional Connectivity
• What is hampering the growth of regional connectivity is
the lack of airports.
• Rising Fuel Prices
• The rising fuel prices have led to increase in the air
fares.
• High Input Costs
• Increasing manpower costs due to shortage of technical
personnel.
•

•
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 SUGGESTIO 46

• Nshould be same for the foreigners as

Fare charge
• for Indians.
• There should be more transparency (clarity) in
the announcement of flights.
• To open separate counter for single baggage and
last minute departure.
• Security check needs improvement.
• Easy information should be available to
passengers regarding transit baggage.
•
•
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