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Study Of The Scenario Of Indian Aviation Industry In A Span Of Five Years And The Rise And Fall Of Kingfisher Airlines In Those Years

5143 words - 21 pages


Indian Aviation Industry
It is one of the fastest Growing Aviation Market. There are approximately one billion people and 0.05% of them fly. More and more middle class families now prefer air transport than other traditional mode of transport. The Indian travel market has nearly tripled to $ 51 billion by 2011, from $16.3 billion in 2005-06. Origin of Indian civil aviation industry India occupies an eminent position in the civil aviation sector with a large fleet of aircrafts. Estimates show that the domestic and international passenger ...view middle of the document...

The airline suppliers are mainly aircraft manufacturers, airports, fuel companies and there isn't a lot of cutthroat competition among suppliers. Also, the likelihood of a supplier integrating vertically is rare. Power of Buyers is medium to and increasing The cost involved with switching airplanes is decreasing as customers can access internet easily to compare and buy air tickets online nowadays. With emerge of budget airlines like Jetstar, Spicejet, Indigo and AirDeccan, more customers including travel agents and individuals prefer to take the budget airlines rather than full service airlines
Competitive Rivalry is high
Airline industry is completely saturated. There are more service providers than needed in both local as well as international markets. The various airlines are competing for the same customers. The airlines are continually competing against each other in terms of prices, technology, in-flight entertainment, customer services etc. Highly competitive industries generally earn low returns because the cost of competition is very high.

Market Share For April 2013
Airline Market Share (%)
Indigo 29.8
Jet Airways (India) 22.6
SpiceJet 19.6
Air India (Dom) 19.2
GoAir 8.9

Kingfisher airlines as is apparent has seen a decline in last some years, stooping from the 2nd best airline in India in terms of market share to not even making it in top5.
Hence the objective of our report is To Study the Rise and Fall of Kingfisher Airlines and to suggest ways it could have resented the fall.


Kingfisher Airlines is a wholly owned subsidiary of United Breweries Holdings Limited Kingfisher Airlines Limited is an airline company based in Bangalore, India. This airline was introduced in the market to target the domestic luxury segment. Kingfisher Airlines was introduced into the Indian airline market by the Indian Business Tycoon Dr Vijay Mallya Kingfisher is one of only six airlines in the world to have a five-star rating from Skytrax.
Until December 2011, Kingfisher Airlines had the second largest share in India's domestic air travel market. However due to a severe financial crisis faced by the airline at the beginning of 2012, it has the lowest market share since April 2012.
The airline had shut down its operations when on 20 October 2012 the DGCA suspended its flying license. The suspension had been due to failure to give an effective response to the show-cause notice issued by DGCA. However, the airline had locked out its employees for several days before this suspension. On 25 October 2012, the employees agreed to return to work. In February 2013 the Indian government...

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