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a brief comparison about kinfisher and airindia
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SUBMITTED TO-:Miss Amita Shivhare
Kingfisher Airlines
Air India
V/s
Public Sector Company
The public sector, sometimes referred to as the state sector or the government sector, is a part of the state that deals with either the production, ownership, sale, provision, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal. A company operating in public sector of an economy is known as public sector company.
Examples of public sector activity range from delivering social security, administering urban planning and organizing national defense.
Example
Private Sector Company
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of profit.
A company operating in private sector of an economy is known as private sector company. However distinction has to be made between public sector companies and public companies. Public companies are not part of the public sector; they are a particular kind of private sector company that can offer their shares for sale to the general public, i.e. to anyone willing to buy them (as opposed to a privately owned company, shares of which can be sold to someone only if the owner of the shares agrees to sell them).
Reliance & Co. owned by Mukesh Ambani, Tata Group owned by Ratan Tata, Hero group owned by Brij Mohan Das Munjal etcetra.
Example
Public Sector Company Versus Public Company
AVIATION INDUSTRY
• One of the fastest growing industries in the world.
• Origin of Indian aviation industry can be traced back to the year 1912.
• India has the private airlines as its key players
• 75% of the market share is owned by the private sector.
• Problems that the Indian aviation industry is facing and thus immediate attention is needed.
Kingfisher Airlines
•Dr Vijay Mallya is the Chairman and CEO of Kingfisher Airlines. But now Sanjay Agarwal is the CEO of Kingfisher Airlines.
•Kingfisher Airlines Limited launched scheduled airline services on May 9, 2005 with 4 daily flights between BOM & BLR and one A-320 aircraft.
•There are tools for mood lighting such as web chat, inseat plugins for music, live TV with 16 channels on each seat.
Air India•The saga of Air India began by the amalgamation of 8 private airlines, with the passing of Air Corporation Act to nationalize the air transport industry.
•Air India is the flag carrier airline of India and the second largest airline in India in terms of market share. It is part of the government owned Air India Limited (AIL).
•The airline plans to move its corporate headquarters from Mumbai to Delhi sometime in 2013• Following its merger with Indian Airlines, Air India has faced multiple problems, including escalating financial losses, Between September 2007 and May 2011, Air India's domestic market share declined from 19.2% to 14%, primarily because of stiff competition from private Indian carriers.
Mission And The Vision
Basis Air India Kingfisher AirlinesMission To demystify air
travel in India by providing reliable, low-cost and safe travel to the common man.
Kingfisher Airlines will have 'Fly the
Good Times' approach and this will reflect in the
experience we will offer to passengers
Vision To empower every Indian citizen to fly.
The Kingfisher Airlines family will
consistently deliver a safe, value-based and enjoyable travel experience to all our
guests.
Organization Structure And The Span Of Control
BASIS KINGFISHER AIR INDIA
Work specialization high degree of work specialization
a moderate degree of work specialization
Departmentalization
departmentalization by customers
departmentalization by functions
Chain of command clear chain of command.
clear chain of command.
Centralization and decentralization
Centralized decision making authority
Centralized decision making authority
Formalization Very high degree of formalization
high degree of formalization.
Span of control Low span of control because of customer departmentalization
and complexity of tasks.
Very high span of control because of functional departmentalization and Similarity of tasks.
Decision Making StylesOut of the four decision making styles, namely Directive, Analytical, Conceptual and Behavioral, Kingfisher typically has a Directive style of decision making as Mallya’s inability to strategize and place the critical airline business on the national and global front, which is totally different both in nature as well as in approach, than his liquor business. His attitude of ‘Ekla Chalo Re’ in airline venture caused him much harm than good as he didn’t delegate the business operations and decision making rights to other skilled executives who could have taken much better decisions than him.
On the other hand Air India has a mixture of analytical and behavioral styles of decision making as when Government asked its executives if it should give away any relief package to Kingfisher Airlines, the executives made a smart and right move by advising the Government to not to do so by convincing/outwitting by saying that national funds are meant to be used in bailing out national ventures (Air India in this case) first rather than a private one, and that too until and unless it is of some strategic importance to the nation.
Role Of Leaders Kingfisher Airlines
Vijay Mallya's leadership has been the insalvated reason for the failure of the Airlines as well as the failure of Kingfishers employees. He has continously been over indulged and wasting away resources in Kingfisher calendar activities and of course, the multi crore rupee event, IPL where he had diverted huge sums of money from his core businesses. Air India
Though the executives of the fleet have done a lot to make the employees more productive but all the efforts have gone vain Mr Rohit Nandan is the fifth CMD of the carrier, in four years. Infusing funds without empowered leadership, free from political interference, is a waste of taxpayer resources. Air India needs focused leadership, more than anything else.
Work Culture And Managing Control Kingfisher Airlines
The work culture provided by Kingfisher Airlines for its employees is elite in itself. It provides the best facilities and completely infuses its employees to develop and be the best although it's a fact that the same employees haven't been renumerated for 8 consecutive months. The managerial control of Kingfisher Airlines is very high because of the complexity of tasks and the etiquetted service which Kingfisher provides leaves no scope of confusion for its employees. However the employees completely abide to the control process practiced by company.
Air India
On the contrary Air India provides a simple work culture to its employees but focuses on the continous development and learning by making its employees dynamic. It doesn’t practices much of control mechanism as the main decision making authority is government which itself doesn’t wants to be governed by anyone.
Awards & Recognition Air India
•Preferred International Airline award for travel and hospitality from Awaz Consumer Awards 2006 •Best International West Bound Airline out of India for three successive years by Galileo Express Travel World Award•Best Corporate Social Responsibility Initiative. by Galileo Express Travel World Award
Kingfisher Airlines
•Kingfisher Airlines frequent flyer programme, King Club has won Top Honours at the 21st Annual Freddie Awards in the Japan, Pacific, Asia and Australia region.•Kingfisher Airlines has received three global awards at the Skytrax World Airline Awards 2010
Named Best Airline In India / Central Asia; Best Cabin Crew – Central Asia.Kingfisher RED named Best Low Cost Airline in India / Central Asia.
•NDTV Profit Business Leadership Award for Aviation.•Rated India's Second Buzziest Brand 2008 by The Brand Reporter.•Ranked amongst India's Top Service Brands of 2008 by Pitch Magazine.•Voted as India's Favourite Airline.•Rated as Asia Pacific's Top Airline Brand.•Brand Leadership Award.•Economic Times Avaya Award 2006 for Excellence in Customer Responsiveness.•India's No. 1 Airline in customer satisfaction by Business World.•Rated amongst India's most respected companies by Business World.•Rated amongst India's 25 Innovative Companies by Planman Media in 2006.•The Best Airline" and "India's Favourite Carrier' in a Survey conducted by IMB for The Times Of India.•Best New Domestic Airline for Excellent Services and Cuisine by Pacific Area Travel Writers Association (PATWA).•Service Excellence 2005-2006 for a New Airline by Skytrax.•Ranked Third in the survey on India's Most Successful Brand launch of 2005 under the Brand Derby Survey conducted by Business Standard.•Buzziest Brands of 2005 by agencyfaqs and The Brand Reporter.•Rated amongst the Top Ten Internet Advertisers by Yahoo.•Rated amongst the top ten in the Best Television Commercial Jingles by NDTV.•Best New Airline of the Year Award for 2005 by Centre for Asia Pacific Aviation (CAPA) Award in the Asia-Pacific and Middle East region.Listed in the top 100 most trusted brand in The Brand Trust Report
RecommendationsKingfisher Airlines
• Reduce the labor cost
• Simplify the flight operations
• Offer more transparent pricing
• Get smart on fuel
• The process of acquiring spice jet if complete would make
kingfisher the largest player in the aviation industry
• Different modes of pricing should be taken care of.
Air India• So Indian Airlines should emphasis on providing more efficient services both on the ground and in the air as done by Jet Airways to a large extent.
•There should be internal and external audits to look in to the working of various departments.
•Indian Airlines should schedule more number of flights to and from stations like Mumbai, Delhi, Chennai, and Kolkata as these sectors account for high Tax load.
•The check-in time should be minimal. Wherever there is likely to be long cues more counters should be opened.
•Flight status should be made available through SMS.
“This is a world class experience, all at an affordable price. We are not a low‐cost carrier and we do not intend to be one.” “We have broken the shackles of conservative socialism. The growing middle classes want the kind of standard of living you enjoy in the West. So what I am selling is lifestyle.” ‐Vijay Mallya
S.W.O.T AnalysisKingfisher Airlines
STRENGTHS• Quality of the service.• First airline to have a new fleet of airbuses.• Quality and continuous innovation. WEAKNESSES • Still a not in profit organization.• High ticket pricing.• Facing a tough competition from competitors. OPPORTUNITIES • The expanding tourism industry.• The non penetrated domestic market.• International market.• Untapped air cargo market. THREATS • Competitors• Infrastructure issues.• Fuel price hike.• Economic slowdown.
Air India STRENGTHS•Most Experienced airline in the industry.•Only airline with Boeing Air Bus and Dreamliner fleets in the country.•Largest fleet size. WEAKNESSES•Loosing domestic market share.•Scope for improvement in in-flight service. OPPORTUNITIES•Untapped air cargo market.•Scope in international service and tourism. THREATS•Strong competitors.•Fuel price hike.•Overseas market competition.
Conclusion
The healthily competition of domestic airlines has set new trends in the quality of service. Previously in the monopolistic environment of Air India the quality and the desire to win over the constraints was totally dismal. With the oncoming of Kingfisher Airlines and Jet Airways there has been a change in the quality of service and the pride of the job. Hence today it is a matter of great significance that the Air India staff now cares about the passenger comfort and take pains to see that the flight is on time. Air India so should try the high percentage 98% of on time service. Kingfisher is the hallmark of their quality of service. But as everything has its price the charges of Kingfisher Airlines are 9.8x or approximately 10x higher than those of Air India which are the root cause of its failure.
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