Growth Strategies Case Study

Case Title:

Kingfisher Airlines International Route Expansion Plans : Will it Succeed?

Abstract:
With its takeover of Air Deccan, Kingfisher has pre-planned its strategy for overseas operations, anticipating Deccan’s eligibility to fly on international routes by August 2008. But as per Indian government regulations for international operations, it would need to increase its ownership stake to 51% from the current 46% to qualify to fly on overseas routes, or it should sport Deccan’s colours to its tail. For its overseas operation, Kingfisher planned to adopt a game-changing model, offering nonstop flights on long-haul route, first among Indian overseas flights. Kingfisher planned to position itself as a first class (one first class seat equals between eight and ten economy seats) and business class (one business class seat equals between six and eight economy seats) airline in outbound category. It also planned to revolutionise international air travel by extending some of the services offered to first class and business class in outbound category to economy class passengers with all new aircraft. Initially, Kingfisher intended to target the key US-India route, which is already occupied by other international rivals like Air India, Delta Air Lines, and Continental Airlines. Analysts pointed out that, Kingfisher’s plans might be right for overseas operations but were skeptical in the wake of its domestic losses. Whether, Kingfisher would be able to succeed in the highly competitive international airline market needs to be seen.

Pedagogical Objectives:

• To understand the competition and consolidation in Indian aviation industry
• Analyse the dynamic business expansion strategy of Kingfisher Airlines
• To understand the positioning strategy of Kingfisher Airlines on international route – the business model
• Analyse the competition on international air travel route.

Keywords :  Indian Aviation Market; Passenger Traffic Growth; International Route; Government Regulations; Business Model; Positioning; Full Cost Carriers; Low Costs Carriers; Growth Strategies Case Study; Overseas Operations; Competition; Kingfisher Airlines; Simplifly Deccan; Foreign Airlines In India; Long Haul Non-Stop Flights

Contents : 
Kingfisher - Deccan Airlines: A Brief Note
Highlights of International Air Transport Policy of Indian Aviation
Flow of Indian outbound traffic 2002-2006
Kingfisher - Deccan Overseas Operation Plans
India-New York Sector Air Fares
Kingfisher - Deccan International: The Future
Overview of Kingfisher Airlines
Kingfisher Airline - Awards and Accolades