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Kingfisher Airlins crisis and solutions

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Page 1: Kingfisher Airlins crisis and solutions
Page 2: Kingfisher Airlins crisis and solutions

Kingfisher Airlines is an airline group based in India.

Its head office is The Qube in Andheri (East), Mumbai; and Registered Office in UB

City, Bangalore.

Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based United

Breweries Group.

Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-

cost carrier Kingfisher Red.

The airline started commercial operations in 9 May 2005 with a fleet of four new Airbus A320-

200s operating a flight from Mumbai to Delhi.

It started its international operations on 3 September 2008 by connecting Bengaluru with

London.

Kingfisher also owns the Skytrax award for India's best airline of the year 2011

!ntroduction

Page 3: Kingfisher Airlins crisis and solutions

STARTING OF THE CRISES

1. DEBT RESTRUCTURING

2. CRISIS TILL CONTINUE

3. DELAYED SALARY

4. FUEL DUES

5. AAI REPORTS

6. AIRCRAFT LEASE RENTAL DUES

7. SERVICE TAX

Market share of Kingfisher Airlines as on January 2012 in the domestic Aviation

Page 4: Kingfisher Airlins crisis and solutions

SWOT Analysis1. STRENGTHS

• Strong brand value and reputation in the minds of the consumer

• UB group as the parent company

• First Indian airline to have a new fleet of planes

• Quality service and innovation

• More than 80 destinations

• Less than 100 people (employees) per aircraft

2.WEAKNESSES

Still in RED (still to Break Even)(An outstanding of 950crs only to oil marketing cost till may end )

High ticket pricing (KF First & Class)

Tough competition from Indian as well as international players

Page 5: Kingfisher Airlins crisis and solutions

3.OPPORTUNITIES

If able to survive for a couple of years, then can have a big market share

Untapped International Markets

Untapped cargo market

Expanding tourism business

4. THREATS

Falling demand

Over capacity in the skies

ATF prices(Automatic Transmission Fluid)

Economic slowdown

Infrastructure issues

Page 6: Kingfisher Airlins crisis and solutions

Solut ion

Change the management

Change the entire board of directors

Management should be given to different or new system

Decentralization in authority

Make.belive

Page 7: Kingfisher Airlins crisis and solutions

• leasing out their planes (unused or minimally used planes) to other carriers

• cancelling all orders of airplanes

• Transparency and confidence building measures firstly amongst its own employees and then the customers

• Cut costs by not flying to expensive sectors and airports resulting in huge parking costs and low returns

• Focus on tier II ND tier III cities where other airlines may n have made considerable inroads and judge the operating costs of the same

• FDI in aviation must be permitted

Solut ion

Page 8: Kingfisher Airlins crisis and solutions