Kingfisher Airlines stated it would end its low-cost operations in four months to focus on premium operations, contrary to its rivals in India who are increasingly adding low-fare capacity in the price-sensitive market to cater to rising demand for air travel in the fast growing domestic market.

Kingfisher Airlines chairman Dr Vijay Mallya stated the move to “do away” with its low-cost subsidiary, which is taking place 52 months after the acquisition of Air Deccan, has been prompted by higher demand for premium seats and better margins and load factors on full-service operations, adding there are enough operators and capacity in the low-cost space. "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..."