Kingfisher Swaps Low-cost for Premium

INDIA’S SECOND biggest private carrier, Kingfisher Airlines, has announced that it will launch a new premium business model and drop its existing low-cost carrier named Kingfisher Red.
The airline’s Chairman and Chief Executive, drinks magnate Vijay Mallya, announced that the changes would come in the next four months.
“We are doing away with Kingfisher Red [formed in 2008] because we do not intend to compete in the low-cost segment,” he said.
“We believe that there are more than enough guests who prefer to travel the full service Kingfisher class and that shows through in our own performance where load factors in the Kingfisher class are more than Kingfisher Red,” he added.
Kingfisher Airlines was launched as a full service carrier in 2005 but just three years later it took control of Deccan which was India’s first budget airline.  The move led to the creation of Kingfisher Red.
“The margins of Kingfisher class are higher than Kingfisher Red.  That’s because the yields are better,” said Mr Mallya.