Kingfisher Airlines Case

BRAND MANAGEMENT : THE KINGFISHER AIRLINES SAGA

Faculty Contributor:Mithileshwar Jha, Professor

Student Contributors:Arun Subramoniam, Geraj Vinny Rajesh, Monomita Roy, Ravi Parimi, Sundar Rajan G S

The Kingfisher brand has always been associated with glamour, vibrancy and lifestyle. When the premium airlines player made a move to acquire the largest low cost carrier in India, there seemed to be a clear mismatch between the two brands. However, Kingfisher Red had recently been displaced by Indigo Airlines as the preferred low cost carrier for Indian customers. This article aims to understand the reason for this step down even as it characterizes the needs of an air traveler. It also examines whether Kingfisher was right in straddling itself along the economy-luxury axis and the parameters it would have to meet to regain lost ground.

Owned by India's biggest liquor baron, Mr. Vijay Mallya, Kingfisher Airlines (KFA) is one of the finest luxury airlines of India1. Based in Bangalore, the Kingfisher Airlines started operations in May 2005 as a wholly owned subsidiary of the United Breweries Holdings Limited. It entered the Indian aviation market at a time when the low cost service model had galvanized the market and made air-travel accessible to the Indian middle class.

KFA today offers three unique classes of service -Kingfisher First, Kingfisher Class and Kingfisher Red2. Kingfisher First is the business class service of KFA focused on business class passengers who are willing to spend for premium services. Kingfisher Class is the aspirational premium economy service of KFA focused on the growing middle-class that is trendy, savvy and upwardly mobile. Kingfisher Red is the low fare service of KFA focused on the growing middle class who are price conscious. KFA has carved a distinct position for itself by its flamboyant lifestyle image and by offering a great flying experience with comfort seating, personalized entertainment and services to its passengers. KFA...