Kingfisher Airlines Limited Company Profile Commerce Essay

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Good leaders are always made and never born. To become a successful leader we must always have the desire and willpower. Good leaders are always developed through a process that keeps going on and never ending that is inclusive of self-study, education, training, and experience. Great leaders are people who continually keep working and studying to improve their skills and they never rest on their laurels which they keep getting in the process.

In simple words Leadership is a process in which a person can influence his co-workers to accomplish certain objectives in certain time and make the organization more cohesive and coherent.

A leader must always understand who exactly he is and what he is capable of. The most important part of a successful leader is his followers, If they do not trust or lack confidence in their leader, then they will be uninspired. An organisation with uninspired co-workers will show a negative graph on achievements and inturn reflect on the leader. A successful leader must convince his followers, not himself or his superiors, that he is always trust worthy of being followed.All this can be achieved only through constant training and experience .

Functions of a leader:

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The functions of a leader can be best understood from the following diagram:

LEADERSHIP

EVALUATING

CONTROLLING

INFORMING

INITIATING

PLANNING FUNCTION

.

INTRODUCTION ABOUT THE FIRST COMPANY

1.1 MISSION STATEMENT: "KINGFISHER AIRLINES WILL HAVE FLY THE GOOD TIMES APPROACH AND THIS WILL REFLECT IN THE EXPERIENCE WE OFFER TO THE PASSENGERS"

1.2 Company profile :

Kingfisher Airlines Limited is an airline group based in India. Its head office is located at Andheri (East), Mumbai and Registered Office in UB City, Bangalore. Kingfisher Airlines, is under its parent company United Breweries Group(UB GROUP). Kingfisher Airlines was established in 2003, however the airline started commercial operations in 9 May 2005 with a fleet of four new Airbus A320-200s.Its first operating a flight was from Mumbai to Delhi. It started its international operations on 3 September 2008 by connecting Bangalore with London.

Kingfisher fleet consist of Airbus A330, A320, A319, A321, ATR 72-500 &ATR 42-500.Kingfisher Airlines at the initial stages have won many awards like

'Best Airline in India and Central Asia', 'Best Economy Class Seats' and 'Staff Service Excellence Award for airlines in India and Central Asia' in World Airline Awards,2010

'5-STAR AIRLINE' award by Skytrax for 3rd consecutive year, 2010

'India's Favourite Airline' in HT MARS Consumer Satisfaction Survey , 2009

Kingfisher Airlines due to a severe financial crisis at the beginning of 2012 had lowest market share. The airline has temporarily shut down its operations when on October 20, 2012 the DGCA suspended its flying license. This suspension had been due to failure to give an effective response to the show-cause notice issued by DGCA.

However According to Economic times Kingfisher Airlines has established a strategic alliance with Abu-Dhabhi based EIthad Airways. There were reports on Tuesday in certain section of the media that Etihad would pay Rs 3,000 crore for a 48% stake in Kingfisher.

1.3 About the chairman :

Vijay Mallya is an industrialist he is the chairman of the UB Group - an Indian conglomerate, with diverse interests in brewing, distilling, aviation, pharmaceuticals, real estate, engineering, fertilizers, biotechnology and information technology

He is the son of industrialist Vittal Mallya.He took over as the chairman of the company at the age of 28.He is also member of Indian Parliament.

Mallya completed his graduation with a Bachelors from Commerce degree. During his college years he was interning in his family businesses. After he graduated, he interned at the American part of Hoechst in the United States.

With sudden demise of his father , Mallya was unanimously elected Chairman of United Breweries. Mallaya as the chairman modernisation by, consolidating the various companies under one umbrella group called the "UB Group".Mallaya mainly focused on the core business of beverage alcohol. Kingfisher beer from the house of United breweries controls more than 50 per cent market share of India's beer market. The beer is available in 52 countries outside India and leads the way among Indian beers in the international market.United Spirits Ltd, the core flagship of the UB Group, has achieved the historic milestone by becoming the largest spirits company in the world by volume.Kingfisher airlines became part of his empire in the year 2003.

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Vijay Mallya apart from business has other unique interests . He has won many trophies in professional car racing and is a keen yachtsman and aviator.He is the ardent sports man fan unlike his contemporaries, a few of his accomplishments are he owns a Formula One team, a cricket team and a football league - under one company called UB Sports.

Vijay Mallya is the first Indian ever to own a Formula one team Force India Formula One, It actually represents the country's first, truly global sports foray. Vijay Mallya has also won numerous trophies in horse racing including several prestigious Derbies.

Chairman's vision:

"The Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel experience to all our guests."

1.5 Current Aviation Industry in India:

The Indian Aviation Industry has been going through a turbulent phase over the past several years facing multiple pressure in the form of high jet fuel prices and limited pricing power contributed by industry.Over the near term the challenges facing the airline operators are related to high debt burden and liquidity constraints - most operators need significant equity infusion to effect a meaningful improvement in balance sheet.The year 2012 began with utmost crucial challenges ever since the 2004 sectoral reforms came into existence. The biggest irony is that the Indian aviation sector though in the midst of the fast developing economy showed that collectively Indian carriers shall lose around $ 2.5 billion by the end of 2012, lower than the worst year for the sector, 2008-09, where the air traffic was dropping and fuel prices hobnailed.

The International Air Transport Association (IATA) has termed the 12.4% plunge in domestic air travel recorded here in October 2012 is highest fall anywhere - as a reflection of "the weakening economy and struggles" within the domestic airline industry .

1.6 Current Situation of Kingfisher:

The kingfisher airline from the time of its inception never showed any accountable profit from may 2005, it has been reporting losses. After acquiring Air Deccan, Kingfisher suffered a loss of over INR1,000 crore (US$182 million) for three consecutive years. By the beginning of 2012, Kingfisher airline had a total gross losses of over INR7,000 crore (US$1.27 billion) with half of its fleet grounded and several members of its staff going on strike. Kingfisher's position took a deep plunge falling from 2 to 5on the basis of market share because of the airline's chronic inability to make a profit and the condition of Indian Aviation sector.

2. INTRODUCTION ABOUT THE SECOND COMPANY

2.1 MISSION STATEMENT:

"MISSION STATEMENT:"TO GROW A PROFITABLE AIRLINE WHERE PEOPLE LOVE TO FLY AND WHERE PEOPLE LOVE TO WORK"

2.2 Company's Profile:

Virgin Airways is a part of Virgin Group Ltd which is a British multinational conglomerate company founded by business tycoon Richard Branson. Its core business areas are travel, entertainment and lifestyle and it consists of more than 400 companies worldwide.The net worth of Virgin Group as of September 2008 was £5.01 billion.

Virgin Airways was founded in 1984, Virgin Atlantic Airways at this point is the Britain's second largest carrier serving the world's major cities.Singapore Airlines holds 49% of Virgin Atlantic Airways share.On 22 June of 1984, Virgin Atlantic airways operated its inaugural flight service between Gatwick and Newark using a leased Boeing 747-200 named Maiden Voyager. Virgin Atlantic showed profitable results during the first 12 months with the aide of sister company Virgin Records'

In 1986, Vigin airways added another Boeing 747 and started a scheduled route from Gatwick to Miami. Due to increase in demand additional aircraft were acquired for routes from Gatwick to New York JFK (1988), Tokyo (1989), Los Angeles (1990), Boston (1991), and Orlando (1992.

Virgin Airways are currently operate Boeing 747 and Airbus A340 aircraft. Reports show that they have ordered six Airbus A380 aircraft, due to be delivered by 2015.All thes aircraft are double-decker and the world's largest.The airways already have Ten operating Airbus A330-300s from early 2011, whilst 15 new Boeing 787-9 Dreamliners will start operation by 2014.

2.3 About the Chairman:

Sir Richard Charles Nicholas Branson is the founder and chairman of Virgin Group which consists of more than 400 companies.

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Branson started out his first business venture at the age of 16, it was a magazine called Student .In 1970, he set up an audio-record mail-order business. In 1972, he opened his first chain of record stores, Virgin Records, later it went on to become what is know as today as Virgin Megastores. Branson's Virgin brand grew rapidly during the 1980s, as he set up Virgin Atlantic Airways and expanded the Virgin Records music label.

Branson is the 4th richest citizen of the United Kingdom, according to the Forbes 2011 list of billionaires, with an estimated net worth of US$4.2 billion.

Branson did his schooling at Stowe School until the age of sixteen. At a very young age Branson Suffered from dyslexia and that reflected on his academic performance as a student, but later discovered his ability to connect with others.

Branson was different from other contemporary leader , because of his love for adventure sports.He even has quite a few accolades that speaks for itself like

In January 1991, Branson crossed the Pacific from Japan to Arctic Canada, 6,700 miles (10,800 km), in a balloon of 2,600,000 cubic feet (74,000 m3). This broke the record, with a speed of 245 miles per hour (394 km/h).

Between 1995 and 1998 Branson, Per Lindstrand and Steve Fossett made attempts to circumnavigate the globe by balloon

In March 2004, Branson set a record by travelling from Dover to Calais in a Gibbs Aquada in 1 hour, 40 minutes and 6 seconds, the fastest crossing of the English Channel in an amphibious vehicle.

2.4 Current Aviation Industry in United Kingdom:

As of now results show that UK is working more closely with other countries on the emission problem. At an annual growth rate of only half of that experienced by the UK's relatively mature aviation industry in 2004 would equate to the EU25's aviation sector accounting for almost 40% of permissible emissions in 2050 under the 550ppmv regime, or as much as 80% if 450ppmv is the target.

The report is to develop aircraft emission scenarios for each EU nation over the period 2002-2050, taking into account fuel efficiency improvements and sometimes applying uplift factors3 relating to radiactive force.

The 'FOE' 2050 multi-sector UK scenarios developed a report to show that aviation growth would have very significant implications for the UK energy supply mix in those 2050 scenarios in which domestic energy consumption is high.

The objectives for the UK aviation's are:

To provide an overview of the scientific, aviation and climate policy background to the projected increase in UK aviation greenhouse gas emissions;

To consider the implications of different growth in aviation scenarios on the necessary UK aviation infrastructure.

Aviation has become one of the fastest growing sectors of the world economy (GAO, 2000).

In the UK, the Department for Transport (DfT) anticipates a near trebling of air passengers by 2030. Current demand is in the region of 180 million air passengers, while the mid point forecast of national demand for 2030 is 500 million passengers per year (mppa)

(DfT, 2000: 17).

DfT forecasts show freight traffic in the SE increasing from 1.8 million tonnes per year today to 6-8 m tonnes per year by 2030.

The Commission expresses commitment to the development of 'sustainable forms of transport'.

2.5 Current situation of Virgin Atlantic Airways:

Virgin Airways has been showing a negative profit for the fiscal year 2012.It has reported a loss of 80 million pounds compared to 18.5 million pounds profit the previous year.

Virgin Atlantic Airways in the fiscal year 2008 should a profit of 22.9million pounds and increased marginally in the fiscal year 2009 to 68.4 million pounds.The year 2010 was a tremendous blow for them because it showed a loss of 132 million pounds.The reasons were due to bad market and the European economic crisis and increase in jet fuel prices as well.During that period there was a reduction in travel as well.

However in the fiscal year 2011 it showed a marginal profit of 18.5 million pounds.But the subsequent year 2012 in slumped once again into losses and reported a loss of 80.2 million pounds but was not as worse as the fiscal year 2010.

3. LEADERSHIP STYLE OF VIJAY MALLYA:

Vijay mallaya founder chairman of kingfisher airlines shows a total Autocratic style, all decision making powers are under his control. However the main key element of this kind of leadership style is that it permits quick decision-making, as only one person decides for the whole group and keeps each decision to himself until he feels it needs to be shared with the rest of the group

Mallaya is also know as the RICHARD BRANSON of India.The liquor tycoon is flamboyant and outspoken. Mallya's entrepreneurial style and his trade acquisitions, etc., reveals sharp business acumen. By studying his profile and various instances in his life, lot of his traits show competencies of a sucessful leader and entrepreneur.Vijay mallaya follows certain business traits and these are initiative, persistence, knowledge, systematic planning and leadership.

Mallya strongly believes taking initiative is acting out of choice rather than compulsion, he always takes the lead rather than waiting for others to start.According to mallya Knowledge for a leader is a must he has to know the functional expertise, knowing who knows, consulting experts, reading relevant material and an overall openness to ideas and information.Mallya has a never say die attitude On the whole Vijay Mallaya can be defined as a person with lot self-confidence who leads people and motivate them.

Vijay Mallya always believes living life king size and spending his vast fortune on doingthe good things in life .Vijay Mallaya is a hard task master and when it comes to business time is never a constraint for him because he is known for holding meetings in smoke-filled rooms at ungodly hours.

3.1Current company performance of Kingfisher:

3.3 Critics if leadership can help its performance:

Mallaya's leadership play a vital role in the organization.It is he who drives the company to sucess or failure.He has to balance between the two roles independently and in synergy so he use these roles as a catalyst for getting the best out of the team every time. The performance can be achieved by setting goals

Vijay Mallaya can help the performance of his company by giving the power of Delegation and always focus on the teams strength before delegating.Vijay Mallaya can empower the team by giving controlled discretion so that each member will in turn be open in expressing the ideas and increase the company's performance.A sucessful leader is one who always gives credit to his employees.Keeping all these factors, Vijay Mallaya can drive his company from pit and rise it to the epitome of success.

4. LEADERSHIP STYLE OF RICHARD BRANSON:

Branson is a very natural born leader and shows all the characteristics of successful leader.Sir Richard Brason has a more Democratic stlye.He always takes suggestions even from people at the bottom of the hierarchy of his company.He has always made it a point of sharing the decision making abilities with group members by promoting the interests of the group members and by practicing equality which he believes will further boost his company's performance.

Sir Richard Branson is also known for his unique character and leadership styles with the amalgamation of adventure in it.,he is a person who willingly takes risk and strongly believes that people are the foundation to his company's success.

  He is definitely a Democratic leader. He always pays attention to input from other people and gives utmost importance to it.He always carries a notebook in his pocket all the time just in case he hears something interesting from people that he interacts with on any level.

Whether it be an employee, friend, business partner or complete stranger, for according to him he always believes that good ideas can come from anywhere and anytime. He has said in an interview that,   "Virgin Group is an organization driven on informality and information, one that is bottom heavy rather then strangled by top level management".Making it clearly evident that he is open for ideas.

    Branson will still ultimately make the top decision and never hesitate to take risks . He also stresses on the importance of being a simple guy and making your employees feel important. He feels that praise goes much farther than criticism and he likes to make sure his people that work with him are taken care of.

4.2 Current company performance of Virgin Atlantic Airways:

Virgin Airways has been showing a negative profit for the fiscal year 2012.It has reported a loss of 80 million pounds compared to 18.5 million pounds profit the previous year.

4.3 Critics if leadership can help its performance:Do this based on above chart

5. WHO IS THE BETTER LEADER:

The two have quite a bit in common in terms of their loud personalities. Richard Branson has had no problems being in the limelight, neither does Vijay Mallya. Both seem to have a posse of beauties living the larger than life image. Branson and Mallya- their lifestyles defy the lifestyle of the ordinary rich and famous with both owning islands and home around the world.But the question here is though Brason has been in the airline industry for more than 30 years he is able to balance and create profits unlike Vijay mallaya.

Ironically both had started with different business before entering into aviation industry. Both made their fortunes outside the aviation business - Branson through his music company Virgin Records, and Mallya through his liquor business, United Spirits. Both men began their careers early in life - Branson founded Virgin Records when he was 20; Mallya took over as UB Group chairman at 28 after his father's death.

In aviation too, similarities abound. Branson entered a market dominated by British Airways; the Indian skies were lorded over by Jet Airways in Kingfisher's infant years.

Today, everything about Branson and Mallya is as different as chalk and cheese.The reason according to me is Mallya's flamboyance and extravagance, especially his association glamorous events like the Formula One race and his Kingfisher calenders when his airlines was taking a plunge in terms of profit and was heading towards a vertical down graph accompanied by severe bankruptcy and payment dues for employees, have drawn a lot of criticism. At any point of time in this society entrepreneurs and successful people have to get their balance right in their lifestyle. People are always evaluated by how they use their money in a more constructive manner, in making people's lives better.

Flamboyance is always dangerous. If you show your wealth too much, that's never a good thing mainly for a business person. You've got to get the balance right, especially in a country like India where there are poor people.

That's were Brason scores more than mallaya and proves he is a better leader.He always Flamboyance is always dangerous. If you show your wealth too much, that's never a good thing mainly for a business person. You've got to get the balance right, especially in a country like India where there are poor people.

That's were Brason scores more than mallaya and proves he is a better leader.He always follows simplicity and focuses on issues that can make a difference ,keeping aside the factor that he even owns a island like mallaya does. But that's not of any discussion at this moment.

6. ORGANIZATIONAL STRUCTURE OF KINGFISHER:

The company's organizational structure is as follows:

Director

RUP

PILLAI

Chairman and CEO

Vijay mallaya

DIRECTOR

DR. NARESH

TREHAN

Vice chairman

Subhash Gupte

Director

DIWAN ARUN NANDA

Director

A.K. RAVI

NEDUGADI

Director

PIYUSH MANKAD

Director

V.K REKHI

The kingfisher has always been led by dynamic, extremely talented and experienced team. The above hierarchy indicates the company structure and the decisions are made based on the order shown. The board of directors are just part of the discussion forum. However the authoritative decision is done by the chairman and CEO Mallya and in his absence the power of making the decision will be given temporarily to the vice chairman Mr.SubhashGupte.

6.1 Current business process of Kingfisher:

DO THIS

6.2 Weakness of Kingfisher:

The Weakness of Kingfisher's Airways are listed in points for easy understanding:

Always high over head cost resulting in lower output.

Predetermined thoughts about public sector units.

Failure of improving the Attitude of the staff and replacing the ageing crew with young and energetic staff.

Investing more on services that really don't count.

Poor customer service because of inaccessibility of staff over the phone.

Kingfisher airlines socio- economic responsibility of redering to poor accessibility area at subsidized rate affecting operating expenses keeping in mind the large fleet of aircrafts it has and the ever increasing jet fuel price.

Kingfisher's dedicated terminal has created a mindset that all services rendered at the airport is done by kingfisher airlines.

6.3 Recommendations for Kingfisher airlines:

After the bailout, Kingfisher Airlines should increase the number of flights and increase the number of destinations as well. The number of flights should be mostly to and from metro cities because they account for their major payload.They need to follow aggressive marketing like issue pamphlets, advertise during breaks in movie theatre must use all means to create awareness and pull more people.Frequent customer satisfaction survey must be undertaken and changes must be done accordingly and make the customer feel that customer satisfaction is their primary focus

Technology advancement in terms of their operations should be done, making people more easy to access and book tickets without any complications.

Of all the points the core focus should be on diversification. Should step in the international market by introducing international destinations thereby creating overseas awareness.Tie-ups with international flights is the best option.Try to find and read about the customers and issue special offerings for first time fliers.

7. ORGANIZATION STRUCTURE OF VIRGIN ATLANTIC AIRWAYS:

FOUNDER AND CHAIRMAN

RICARD BRASON

CEO

STEVE RIDGWAY

Chief commercial officer

Julie southern

Chief financial officer

Tim livett

Chief operating officer

Steve griffith

Director of IT

David Bulman

Director of operations, safety and security

Corneel Koster

Director of corporate communications

Greg Dawson

Director of HR and External Affairs

Jill Brady

Director of Cargo

John Llyod

Director of World Wide Sales

Maria Sebastian

Director of Marketing

Simon Llyod

Director of Engineering

Philip Maher

Director of Commercial and Revenue planning

Edmond Rose

7.1 Current business process of Virgin Atlantic Airways:

The Process of , the company's main motto of involving every employee in the customer satisfaction process, both directly and indirectly.Virgin Atlantic's process has always related to both internal communications through employees and external communication through strategic alliances to further capabilities. The Virgin Atlantic management structure allows all head officers to report directly to Richard Branson. Sir Richard Branson is himself active in communicating with employees. He says in his book, Richard Branson:Losing My Virginity, "I also insist that we continually ask our staff for their suggestions,and I try my hand at their jobs". The company at present is also engaged in code share and strategic alliance with various airlines across the globe , thus permitting greater external communication.

7.2 Weakness of Virgin Atlantic Airways:

The weakness is listed in points for better understanding:

The frequency of delayed flights must decrease dramatically

Diversification of travel routes must be implemented

In cabin services must be changed according to the customers need and demands if not all atleast a few

With the technological advancement people prefer to use internet on the go, hassle free web connection must be provided.

Further more brand dilution must be avoided as Richard Branson is a one man manager being the owner and director of multiple companies image may be too global and not focused towards the important sector i.e Airline sector.

Fuel prices are always increasing ,it accounts for 15% of total airline expense, hence extravagance expenses should be cut down.

7.3 Recommendations for Virgin Atlantic Airways:

Virgin Atlantic Airways should make their stand clear they cannot go out and serve all customers in the broad market. Virgin Atlantic Airways need to focus on their core market, so that they can serve more efficiently and do their jobs more effective.

The other strategy that Virgin Airways must deploy is the Mass-Market strategy. According to this strategy the company develops a single product and is marketed to potential customers and there by understanding their needs and by this customer satisfaction is met.

Virgin Atlantic Airways are known for their state of the art facilities and their low prices.Customers are however not satisfied at times when their is a failure of their facilities.The main goal of the company is to provide business class service at affordable price.In order to avoid this frequent quality check should be undertaken before and after the flight so that they can fix the issue well ahead of time. Information and openness is a better way to handle customers, customers should be informed beforhand if there is a problem of service or delay in flight schedule.

Gaining reputation and providing a good service must be the moto of any service industry.People aho provide these are the crew staff and the employees.Virgin Atlantic Airways should conduct frequent disciplinary actions on their employees, because they are the one render their service to the customers.By the above said procedure the company can know what exactly is the customers need and give it much better than expected.

Lastly they should get a bit more diverse and not believing in a single trans atlantic route and explore services to other countries as well.