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Kingfisher has adopted an extremely simple pricing structure so that irrespective of the fare that a customer buys at, the rules, regulation and cancellation policy remain the same. This is a paradigm shift in the way airline pricing works.

Announcing that airline is a full-service 'value carrier', the tickets can be bought through usual sources. But what has given it an edge is that it has started with 'the home delivery system'. The new fleet of A-320 has several amenities to make flying comfortable for regular flyers.

As some other operators are also expected to fly on domestic routes, the skies may get crowded. But Kingfisher has already established a fine rapport with Indian Airlines in regard to ground handling, engineering and aircraft maintenance support. The two airlines have entered into several other agreements, which will provide much-needed revenue to the IA, while Kingfisher will effect sufficient saving in keeping 'overhead expenses in check.

Do they go by the Type: Reality or Myth?

The obvious question will be can we term kingfisher airlines as a low cost carrier, where: -

• They are paying a behemoth amount of 100 crores to Indian Airlines to do their ground handling.

• They have spent extra on fitting every seat with a screen & serve hot free meals.

The Challenges Ahead

• The fluctuating aviation turbine fuel (ATF) prices are always a concern for low cost airlines, according to analysts. Many doubt how long these no-frills airlines can survive in the market. In Europe, low cost airline boom was followed by a bust, which only a few competitors survived. Since low cost airliners depend on maximum utilization due to lack of stand-by aircraft, any technical snag would adversely affect the travelers as only a refund is made and no alternative travel arrangements are done.

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* Contributed by -
Manasi Panigrahi,
Pursuing MBA, Batch of 2006,
ICFAI Business School, Hyderabad.