Kingfisher Airlines to phase out Kingfisher Red no-frill class product
Kingfisher Airlines stated (28-Sep-2011) the carrier would "do away" with its low-cost subsidiary Kingfisher Red as there are "enough" passengers for the full-service carrier (IANS/PTI/AFP/The Hindu Business Line/Business Standard/NDTV/Live Mint/Hindustan Times/Reuters/Manorama Online/DHNS/Rediff/DNA India/Economic Times, 28-Sep-2011). "We are doing away with Kingfisher Red because we don’t intend to compete in the low-cost segment,” Dr Mallya said, adding that there are enough operators and capacity in the low-cost space. The carrier is undertaking a cabin reconfiguration which will add significant number of seats while simultaneously phasing out the Kingfisher Red no-frill class product. The reconfiguration process will be concluded in the next four months. The carrier currently offers three classes of service: Kingfisher First, Kingfisher Class Economy and Kingfisher Red No Frills Economy. Following re-configuration of all Airbus aircraft, the number of economy seats across the Airbus fleet will increase by approximately 10%. Kingfisher Airlines commenced service in 2005 as a full-service airline and two years later acquired LCC Air Deccan, renaming it Kingfisher Red to compete. [more - original PR]
Kingfisher Airlines: "Yes, we are doing away with Kingfisher Red, as we don't intend to compete in the low-cost segment. But all is not gloom and doom. We believe 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 Kingfisher Class are more than in Kingfisher Red," Vijay Mallya, Chairman. Source: IANS, 28-Sep-2011.