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KFA modeled its strategy on the strategies of JetBlue Airways , in providing value added air
travel services at economical prices. KFA purchased brand new A320 aircraft powered; the
cockpit was a paperless environment. The airline called its aircraft 'Kingfisher Funliners' to
represent the fun-filled experience it wished to provide to its customers.

All the aircraft had in-flight entertainment systems and well designed interiors. There was only
one class, i.e., the Kingfisher Class, rather than the economy class and business class bifurcation
of other airlines.

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KFA's Pricing

Mallya made it clear that KFA would not be

positioned as a low cost carrier as passengers
would attribute the features of low cost carriers
like low quality of service, delayed flight
timings, etc., to KFA as well.

Hence, the airline was called a budget airline

and not an LCC. Fares were above those of
LCCs but lower than the economy class fares of
Jet, Sahara, and IA. KFA also allowed multiple
fare options and auctioning of tickets on all
traffic routes...

Kfa's Promotional Strategy

     


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The case discusses the strategy of Kingfisher Airlines (KFA), which launched its domestic air
service operations in May 2005. KFA was promoted by the UB Group and positioned as a
budget carrier that offered a single class- "Kingfisher Class'.

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KFA successfully leveraged the youthful and vibrant image of its Kingfisher Beer brand and
called its airlines as 'Funliners' to emphasize the fun-filled experience. Within the first six
months of its launch, KFA managed to corner a 6% market share in the domestic air travel
market.

KFA also had plans to operate on international routes. However, the increasing popularity of
low cost airlines like Air Deccan, launch of new low cost carriers like SpiceJet and GoAir, and
Jet Airways' acquisition of Air Sahara, further intensified the competition in the Indian aviation
sector. In an effort to make KFA profitable at the earliest, KFA modified its 'single class'
approach and began to offer an upgraded business class service- 'Kingfisher First'.

Gssues:

ü Understand the marketing and branding strategies adopted by Kingfisher Airlines.

ü Understand the opportunities and challenges for a newly established airline in the Indian
aviation industry.

Contents:

Page No.
Flying the Good Times 2
Background 4
The 'Funliner' Experience 5
KFA's Pricing 6
Kfa's Promotional Strategy 6
Reservation and Support Services 8
People 8
KFA's Expansion Plans 9
Will the good times last? 10
Exhibits 11

Keywords:

Kingfisher Airlines, United Breweries (UB Group), Vijay Mallya, Services Marketing, Brand
Positioning, Brand Extension, Budget Carrier / Value Carrier, JetBlue Airways, In-flight
Entertainment System, Airbus A320 and A380, Jet Airways, Low Cost Carrier (LCC), Air
Deccan, Indian Aviation Industry, Kingfisher Beer

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