The letter read, kingfisher airlines was truly a world class airline and the recipient of numerous national and international awards unfortunately, the macro economic environment and then government policies conspired against us and kingfisher airlines was forced to shut down operations in october 2012. I will be discussing the macro-environmental forces that are affecting the domestic airline industry, with a focus on the south african industry i will also analyse consumer behaviour in the low cost carrier market and the airline industry in general, by finding out what the main factors which. Saga of kingfisher by drsreehari chava 0100 introduction captain gopinath dreamt of bringing air travel within the reach of the common man and conceived air deccan which became the first low-cost airline to fly pan-india in. The pestel model helps in analyzing the factors that affect an industry pestel is the abbreviation for political, economic, social, technological, environment and legal factors of the external macro environment. Macro environment factors: economic economic environment of india and world affects the airline industry to a great extent factors like fluctuations in global fuel prices, exchange rates, slowdown etc have varying impact on the way jet airways has been operating in this sector.
Latest environment news, comment and analysis from the guardian, the world's leading liberal voice. In a connected and globalised world, civil aviation is a catalyst for economic development and trade the domestic sector of indian civil aviation is also witnessing a boom. The cash-strapped kingfisher airlines has decided to put its corporate office in mumbai on the block while it plans to raise about rs 2,000 crore through a rights issue we have moved into a.
Kingfisher airlines is india 's favorite airline and has been voted india 's no1 airline in three independent surveys it is the only airline to offer a premium first class service on domestic routes. The airline industry is very susceptible to changes in the political environment as it has a great bearing on the travel habits of its customers one can never over-look the political factors which influence each and every industry existing in the country. Factors of interest as shown in table-1 were considered as the factors affecting the fuel consumption for the flight vt-kfi - understudy minitab was used to find the correlation between the factors of interest and describe the. The airlines, through international aviation planning groups, participate in various working groups on aviation environmental protection these groups are looking at many options for the reduction of aviation emissions, including operational measures and market mechanisms.
This case explores into the factors that led to troubled times in the airline industry reasons behind the alliance between the archrivals - kingfisher airlines-jet airways - and the expected synergies and the feasibility of the alliance in the short term as well as the long term. The macro environment there are a number of common approaches for how the external factors, which describe the macro environment, can be identified and examined these factors indirectly affect the organization but cannot be controlled by it. The macro-environment consists of those external factors that the company is not in control of but impact on it, the opportunities and threats from the external environment such as the political.
Economic factors, like purchasing power, fuel prices and political stability also affecting airline business players cut throat competition, due to various factors like, cost effectiveness (achieved due to economies of scale, government support and subsidies, market entry and expansion strategies and various other parameters adopted and. The company not even thought of making mr gopinath (ex founder of air deccan) as ceo of the kingfisher airlines to bring the company into a profitable business, lack of proper expertise and experience in the airline industry, lack of management caused the downfall of kingfisher airlines. 5 porters of airline industry threat of new entrants is low the airline industry is so saturated that there is hardly space for a newcomer even to squeeze its way in the main concern for this is the cost of entry.
Pest analysis investigates the important factors that are affecting the industry and influencing the companies operating in that sector pest is an acronym for political, economic, social and technological analysis. Environment concerns have grown steadily in past few yearskingfisher airlines is a five star airline service and thus targets the upper class people like high aviation turbine fuel (atf) prices and congestion problems at high traffic airports like mumbai and delhi so it could be a serious problem in future economic growth of the company. Kingfisher airlines limited case kingfisher airlines limited is an airline based in bangalore, india it is a major indian airline operating 218 flights a day and has an extensive network to 37 destinations, with plans for regional and long-haul international services.