Swot Kingfisher Airline

Company Profile

Kingfisher Airlines Limited is an airline based in Bangalore, India. It is a major Indian airline operating 218 flights a day and has an extensive network to 37 destinations, with plans for regional and long-haul international services. Its main bases are Bangalore International Airport, Bangalore, Chhatrapati Shivaji International Airport, Mumbai and Indira Gandhi International Airport, Delhi. Kingfisher Airlines, through one of its holding companies United Breweries Group, has acquired 26% stake in the budget airline Air Deccan and has option to buy further of 20% stake from the secondary market.

Kingfisher is one of only 6 airlines in the world to have a 5 star rating from Skytrax, along with Asiana Airlines, Malaysia Airlines, Qatar Airways, Singapore Airlines and Cathay Pacific Airways.

History

The airline started operations on 9 May 2005, following the lease of 4 Airbus A320 aircraft. As of July 2007, Kingfisher operates only on domestic routes, however it has announced plans to start flights to the USA with Airbus A340 and Airbus A380 aircraft. The airline is owned by the United Breweries Group. The airline promises to suit the needs of air travellers and to provide reasonable air fares. Kingfisher Airlines' main "luxury" component is its In-Flight Entertainment System.

The airline was the first in India to initially, and to continue, to operate with all new aircraft. On June 15, 2005 it became the first (and only) Indian airline to order the Airbus A380. It placed orders for 5 A380s, 5 Airbus A350-800 aircraft and 5 Airbus A330-200 aircraft in a deal valued at over $3 billion. An A380 arrived on 6th May 2007 in New Delhi and in Mumbai on 8th May as part of Kingfisher's second anniversary celebrations

PEST ANALYSIS

PEST Analysis An Introduction

A PEST analysis looks at the external business environment. PEST stands for Political, Economic, Socio cultural and Technological. The analysis examines the impact of each of these factors (and their interplay with each other) on the business. The results can then be used to take advantage of opportunities and to make contingency plans for threats.

Political

• ecological/environmental issues

• current legislation home market

• future legislation

• European/international legislation

• regulatory bodies and processes

• government policies

• government term and change

• trading policies

• funding, grants and initiatives

• home market lobbying/pressure groups

• international pressure groups Economic

• home economy situation

• home economy trends

• overseas economies and trends

• general taxation issues

• taxation specific to product/services

• seasonality/weather issues

• market and trade cycles

• specific industry factors

• market routes and distribution trends

• customer/end-user drivers

• interest and exchange rates

Social

• lifestyle trends

• demographics

• consumer attitudes and opinions

• media views

• law changes affecting social factors

• brand, company, technology image

• consumer buying patterns

• fashion and role models

• major events and influences

• buying access and trends

• ethnic/religious factors

• advertising and publicity Technological

• competing technology development

• research funding

• associated/dependent technologies

• replacement technology/solutions

• maturity of technology

• manufacturing maturity and capacity

• information and communications

• consumer buying mechanisms/technology

• technology legislation

• innovation potential

• technology access, licensing, patents

• intellectual property issues

AVIATION SECTOR POLITICAL FACTORS

KINGFISHER AIRLINES and CURRENT POLITICAL FACTORS :

The airline, that is now not allowed to operate in the international skies, has committed to purchase more than 20 Airbus wide body aircraft, including five Airbus A-380, five A-330 and five A-330, which would start arriving later next year. At present, the Indian Government has stipulated that only those airlines that have completed five years of operations in the domestic skies are allowed to fly on international routes. Kingfisher Airlines took to the Indian skies in May 2005.

Faced with policy constraints here of not being allowed