Kingfisher Airlines

Name of the Writer

Name of the Institution

Kingfisher Airlines

Introduction

In 2003, Kingfisher Airlines was established. Kingfisher Airlines is an airline group based in India and owned by the Bangaluru-based United Breweries Group. Kingfisher established itself as a quality service airline in a short time span. Despite, the excellent quality service to customers and rapid expansion, Kingfisher Airlines came across a significant dilemma in profit making. The key issue is not in attaining breakeven, but there is no indication that the airline is moving towards financial feasibility. In the year 2011, Kingfisher Airlines accumulated losses were about 10 million, along with a debt of 8000 crores (Ojha, 2012).

Discussion

Cost-cutting Measures

There is no secret that Kingfisher Airlines has encountered hard times in controlling the cost. More significantly, the problem faced by Kingfisher Airlines refers to financial viability, which results in slimming revenue books over the last few years. The airline must find ways to save money and shave costs, without testing its customers' loyalty.

Kingfisher Airlines need to take measures with regards to the size counts; since, less-full planes or few travelers, and each airplane that departs is one of the major costs. Thus, Kingfisher Airlines need cut back on several flight offerings, must cut the capacity or decrease the number of seats, and squeeze more travelers on fewer airplanes. This measure will also decrease the demand for off-board and on-board employees because of fewer flights, which eventually reduce the cost. However, this does not means to fire or employee lay-offs.

There is no doubt that Airline industry is primarily a fuel based economy. The cost automatically arises when the prices of fuel increases. Hence, Kingfisher Airlines need to consider this fact and need to take measures by trimming a few tons of fuel. A number of airlines have limited their offering of food and beverages, as well as change the heavy metal trays and carts to plastic accessories, along with schedule more direct paths of flight, which can also be implemented by Kingfisher Airlines to reduce the cost. Kingfisher Airlines can also cut the cost by charging more for extra luggage; thus, passengers will carry less baggage by which luggage storage cost will decrease (Thompson & Martin, 2010).

A number of airlines creatively reduce the cost by putting into practice saving measures, such as repainting with less paint and replace old with new light material carpet. For instance, the Aircraft Interiors Middle East accounts that replacing carpet results in the saving up to 25 percent in saving of weight. This measure could be adapted by Kingfisher Airlines as it will not harm loyalty of the customer while reduce the cost.

Kingfisher Airlines can share resources with other airlines to cut the cost. SkyTeam means the conglomeration of airlines has shaped to permits airlines to share terminal facilities of passengers and cargo, administrative and maintenance operations, consolidate sales, as well as integrate frequent programs of flyer.

Another mean by which Kingfisher Airlines can reduce the cost is by the use of technology. The ...