Table of Contents
Kingfisher Airlines, an Indian private airline group set up in 2003, managed to rapidly grow into the biggest player in the Indian domestic airlines market within just five years from its establishment. However, the carrier did not enjoy its prime market position for long, as financial mismanagement and frequent strategy changes led to its sad demise.
Features and benefits
* This case study analyses the Indian aviation sector, its opportunities and threats.
* This case study analyses the competitive landscape, including major players and their revenues.
* This case study analyses Kingfisher Airlines and the failure of its inconsistent strategy.
Passenger traffic in India is expanding rapidly and the country is currently ranked fourth globally in terms of domestic passenger volumes. Increases in per-capita income and the introduction of low cost airlines have contributed towards this rapid expansion. Further growth is however dependent on an expected increase in per capita GDP.
Despite fast increasing passenger volumes, the Indian aviation industry recorded a noticeable loss in 2013. The industry is facing great infrastructural issues associated with the need for large investment outlay, high taxes and airport charges and these factors combined make India one of the costliest places in the world to run a fleet of planes.
After a modest start, Kingfisher managed to quickly build strong brand reputation and high visibility, by becoming the first ever player in the Indian aviation sector, to operate in the lucrative niche of premium domestic flights. By 2009, Kingfisher was the largest passenger carrier in the country.
Your key questions answered
* How big is the Indian aviation sector and how fast is it growing? What are the main growth drivers?
* Why are most of the players struggling with falling income? Why is India one of the costliest places to run a fleet of planes?
* How has liberalization changed the competitive landscape of the Indian aviation sector? Who are the main players of the Indian aviation sector?
* Why did Kingfisher's strategy prove unsuccessful?
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