Case Study Kingfisher

7/29/2019 Case Study Kingfisher

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International Journal of Business and Management Cases Vol. 1 No. 3

August|2012 www.ijbmc.com Page |1

Crisis and Debt Restructuring at Kingfisher AirlinesBhavdeep S Kochar, Assistant Professor, Lovely Professional University

AbstractAirlines industry has always been a very challenging one to operate in. Very few companies are actually earningprofit in this industry. Kingfisher Airlines, a dream venture of Vijaya Mallya also stepped into this industry tocreate a difference and to redefine the experience of flying. But Kingfisher Airlines once known for its premiumquality and class is in the deep crisis now and is actually fighting for its space in the sky. The study aims toanalyze the crisis at Kingfisher Airlines and the measures taken by the company to overcome the same with aspecial focus on Debt Restructuring done by the company in 2010-11.

Keywords: Kingfisher, Airlines, Debt Restructuring

1. News of Kingfisher AirlinesMay 2009: Kingfisher Airlines carried more than 1 million passengers, giving it the highest market share amongairlines in India.March 2010: 5-STAR AIRLINE CROWN FOR KINGFISHER AIRLINES, Top global recognition forIndias premium carrier AGAIN for 3rd consecutive year.November, 2010: Kingfisher Airlines King Club Program Awarded the Best Program of the Year in theMiddle East and Asia/Oceania region by The Frequent Traveler AwardsDecember 2011: Kingfisher Airlines had the second largest share in India's domestic air travel market.2011:Kingfisher Airlines crowned the Best Indian Airline in UK.2012:By early 2012, the airline accumulated losses of over 7,000 crore (US$1.4 billion) with half of its fleet groundedand several members of its staff going on strike because of their unpaid salaries. Kingfisher's position in topIndian airlines on the basis of market share slipped to last from second because of the crisis.


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March 2012:Government may cancel Kingfisher Airlines license: Ajit Singh (Indian Aviation Minister)

Kingfisher airlines once the king of sky is fighting for the sky.

I will bounce back- Vijay Mallya

2.

Brief about Kingfisher AirlinesKingfisher Airlines established in 2003 is owned by the Bengaluru based United Breweries Group. The airlinecommenced its domestic commercial operations from 9 May 2005 with a fleet of four new Airbus taken on leaseand operating from Mumbai to Delhi. Ever since its launch, Kingfisher redefined the experience of flying byadding all new range of innovative products and services for its customers, like the In-flight Entertainment (IFE)system on domestic flights.

Kingfisher planes crossed the domestic sky on 3 September 2008 by starting a flight from Bengaluru to Londonand further to Hong Kong, Dhaka, Colombo, Singapore, Bangkok and Dubai.

On December 19th 2007, the big fish (Kingfisher Airlines) galloped the small fish (Air Deccan, low costairlines). United Breweries (UB Group), the parent company of Kingfisher Airlines acquired 46% of AirDeccans parent Deccan Aviation.

3. How Problems started at Kingfisher AirlinesKingfisher Airlines had been reporting losses since 2005, as it never reached its break-even and the situationaggravated in 2007, when Kingfisher acquired Air Deccan after which the former suffered a loss of over 1,000crore INR for three consecutive years. By early 2012, Kingfisher had accumulated losses of over 7,000 croreINR with several flights grounded and staff going on strike due to non-payment of salaries. The market share ofKingfisher Airlines slipped to last from second due to this crisis.

3.1 Start of the Crisis and Financial Problems at Kingfisher AirlinesKingfisher Airlines witnessed various problems during its crisis. How all it started and what were the difficultiesfaced by Kingfisher during this have been highlighted as follows:

3.1.1 Fuel DuesSince past several years, Kingfisher Airlines was defaulting in making fuel bill payments and in July 2011,HPCL (Hindustan Petroleum Corporation Limited) expurgated the fuel supply for around 2 hours to KingfisherAirlines in lieu of non-payment of overdue fuel bills.

Bharat Petroleum Corporation in 2009 filed a case against Kingfisher airlines again for non-payment of fueldues. High Court in its order directed Kingfisher to pay the entire due amount (INR 245 crore) by November2010 and Kingfisher obliged the Court order by paying the dues in installments.

3.1.2 Delayed SalaryOwing to dearth of funds, Kingfisher Airlines didnt paid salaries to its employees from October 2011 to

January 2012.

Kingfisher in its report to DGCA (9

th

Jan, 2012) stated that the salary dues has been paid to 60% of itsemployees and the remaining due salary will be paid latest by 31 st January 2012.

In between, Kingfisher pilots, protesting against the non-payment of salaries started making in-flightannouncements quoting "It is their sense of duty towards the guest that is making them fly despite not beingpaid salaries for the past two months". Kingfisher also defaulted in paying Tax Deducted at Source from theemployees income to the tax department.

3.1.3 Dues of Aircraft Lease RentKingfisher Airlines was making default in aircraft lease rentals. As a result, in Nov 2008, GE CommercialAviation Services (one of the lessors to Kingfisher Airlines) cautioned Kingfisher to retrieve 04 leased A320planes in lieu of default. Kingfisher Airlines initially denied regarding any default in payment. GECAS in returnfiled a complaint with DGCA seeking repossession of four A320 aircrafts. To this, Kingfisher Airlines in Jan

2009 made petition with Karnataka High Court that to refrain GECAS from repossessing the aircrafts, but theCourt rejected the same and Kingfisher had to return aircrafts to GECAS.


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Again in July 2010, DVB Aviation Finance Asia Ltd (a lessor from Singapore), prosecuted Kingfisher Airlinesin a UK court for not paying lease rent of A320 (Aircraft leased from DVB) for three months.

Till now, 15 out of total 66 aircrafts in the fleet of Kingfisher Airlines were grounded and Kingfisher was facingproblem in meeting maintenance and overhaul expenses.

3.1.4 AAI Slams NoticeKingfisher Airlines was functioning on a cash & carry basis for the past 6 months, with daily payments

amounting to 0.8 crore INR. As a result, Airports Authority of India on February 2012 slammed notice toKingfisher regarding accumulated dues of 255.06 crore INR. The airline was operating on a cash and carry basisfor the last six months, with daily payments amounting to 0.8 crore INR.

3.1.5 Service Tax DuesKingfisher also being a defaulter in service tax payments got warning from S.K. Goel (Chairman, Central Boardof Excise and Customs) on 9 December 2011 regarding possibility of legal action against Kingfisher for notpaying service tax. Kingfisher Airlines as on 10th Jan 2012, had service tax arrears of 60 crore INR. TheAirlines got a concession from Ministry of Finance and an order to pay the dues by 31 st March 2012. Kingfisherpaid 20 crore INR in January 2012 towards its dues for December 2011 and part of its arrears.

3.1.6 Kingfisher AirlinesA NPATill December 2011 end, the bank dues of Kingfisher Airlines were around INR 260 crore to INR 280 crore.Lenders refused to lend any more money to Kingfisher till the previous dues are clear. If the dues were not paidin time, Kingfisher Airlines would automatically have been treated as NPA (Non-performing asset) in theaccounts of banks. So, the airlines paid one month interest amount to the banks on the last working day of 3 rdquarter of financial year 2011-12 to avoid turning Kingfisher Airlines account into NPA.

But, State Bank of India (SBI), the largest creditor to Kingfisher Airlines and the leader of consortium of banksin DRP (Debt Recast Package) declared Kingfisher Airlines a NPA on 5th Jan 2012. SBI had an exposure ofINR 1,457 crore in Kingfisher Airlines. By Feb 2012, many more banks declared Kingfisher Airlines as NPA.Those were SBI, Bank of Baroda, PNB, IDBI, Central Bank, BOI and Corporation Bank

3.1.7 Other ProblemsKingfisher Airlines suffered many other problems like, Erosion of its net worth; Frozen bank accounts; Much ofits fleet grounded; and Suspension of ticket sales by IATA on March 7, 2012 on account of non-payment ofdues. All these problems further graved the situation.

4. Measures taken by Kingfisher Airlines During Crisis4.1 Key Revenue Initiatives One world alliance Membership: to drive inbound domestic passenger growth Co-branded credit cards: introduced King Club ICICI co-brand card Kingfisher Express: DTD Cargo Express service to tap under penetrated air-cargo delivery service.4.2 Key Cost Reduction Initiatives Rationalizing distribution channels: Reduction of S&D costs by reviewing distribution channels,

negotiating GDS contracts

Renegotiating vendor agreements:o Additional airport and fuel discounto Additional discounts from airportso E&M costs to reduce with new vendoro Renewal of operating leases at a discount to existing rates

Control discretionary Spendo Reduce rentals, cost of transportation, local conveyance and communicationo Optimize space

Operational efficiencyo Reduce fuel consumption for Airbus and ATR operationso Target E&M spend reduction (in house C-checks, Controlled re-delivery)

4.3 Capital Recast Debt Re-schedulement (discussed in detail in later section of this study) Equity Infusion


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5. Kingfisher Airlines Capitalizing its ExpensesKingfisher Airlines moved from expensing to capitalizing in its Financial Statements in 2011.Capitalizing: When the company distribute the cost of acquiring asset over a period of years.Expensing: When cost of acquiring is shown in one year as a current expense.

The benefit of capitalizing costs is that both the EBITDAR and the EBITDA metric dear to KAIR areinflated and remain unaffected by the subsequent increase in amortization that flows below the

EBITDA/EBITDAR line, which was highly criticized by Veritas, a Canadian research Company.

5.1 Effects of Capitalization on Key FiguresCompany may follow expensing or capitalizing method to record some items in its financial statements. Andboth the methods affect companys balance sheet, income statement and cash flow statement in a differentmanner. Apart from this, the companys financial ratios also depict different p icture based on the method used.The impact of capitalizing over expensing on various ratios has been summarized below:

Net Income: A company capitalizing its expenses will report higher profit initially as compared to expensingwhere higher profits will be shown in the later years.Stockholders' Equity:Expensing firms will have lower stockholders equity in the initial years, lesser profitsand thus slighter retained earnings vis--vis capitalizing.Assets Reported on the Balance Sheet: A company that capitalizes its costs will report higher total assets as

compared to the case when company expenses the same costs.

6. Debt Recast by Kingfisher AirlinesKingfisher Airlines in 2010 was allowed to recast its debt in lieu of ongoing crisis. By Nov 2010, Kingfisher hasrestructured 8000 crore INR worth of debt in which all of its 18 lenders agreed to cut interest rates and convertpart of their loans given to Kingfisher into equity. Lenders converted 650 crore INR of debt into preferenceshares which further was to be converted into equity when the airline lists on the Luxembourg Stock Exchangeby selling global depositary receipts (GDR). Shares were to be converted into ordinary equity at a price at whichthe GDRs are sold to investors. Besides the 1,400 crore INR debt which was converted into preference shares,another 800 crore INR debt was converted into redeemable shares for 12 years.

As a part of debt recast, Promoters and Bank debt which were converted to Compulsory Convertible PreferenceShares, were further on 31st March 2011 converted into equity at INR 64.48 which was higher than the thenmarket price of INR 39.90.

After the Recast Airline's average interest rate came down to 11%, helping the airline save 500 crore INR everyyear on interest cost. Consortium of banks, who were lenders to Kingfisher and a part of debt recast, wasrepresented by SBI Capital Markets.

The salient features of the DRP thus include:

Conversion of debt of up to 1,355 crore INR from lenders into share capital. Conversion of debt of up to 648 crore INR from promoters into share capital. Reschedulement of repayment of the balance debt to lenders over 9 years with a moratorium of 2 years. Reduction in interest rates. Sanction of additional fund and non-fund based facilities by the lenders.The recast plan involved the issuing of the following types of preference shares:Share type Dividend Maturity Quantity Price RecipientRedeemable CumulativePreference Shares

8% 12 years 575,000,00010(US$0.2)

Consortium of lenders

Compulsorily ConvertiblePreference Shares

7.50% 12 years 780,000,00010(US$0.2)

Consortium of lenders

Compulsorily ConvertiblePreference Shares

7.50% 12 years 648,000,00010(US$0.2)

United Breweries (Holdings) Ltd,Kingfisher Finvest India Ltd

Optionally ConvertibleDebentures

8% 12 years 20,000,000100(US$2)

Star Investments Ltd.

Optionally ConvertibleDebentures

8% 12 years 30,000,000100(US$2)

Margosa Consultancy Pvt. Ltd.

Optionally Convertible

Debentures8% 12 years 30,000,000

100

(US$2)Redect Consultancy Pvt. Ltd.

Table 1


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In addition to these issues, 9,700,000 units of 6% Redeemable Preference Shares of INR 100 each issued toUnited Breweries (Holdings) Ltd. (Promoter Company) were converted to 97,000,000 units of 6% CompulsorilyConvertible Preference Shares of INR 10 each.

The loans given by the banks to KAIR were impaired and therefore under the pretext of a debt recast, the bankshave converted some of these unpaid principal and interest amounts into cumulative convertible preferred sharesand cumulatively redeemable preferred shares. The banking consortium was now both an owner and a creditorto the airline.

Kingfisher Airlines, in Nov 2011 tried for a second debt recast, but was ruled out by Government of India.

6.1 Recast PledgeKingfisher Airlines has pledged its brand as collateral with its lender consortium for 4,100 crore INR. The brandvaluation being done by Grant Thorton in 2010. The Brand was valued and loan raised worth triple the carriersmarket value.

On July 6, 2011, pursuant to requirements prescribed under the Debt Recast Package Kingfisher Airlines'founder companies, United Breweries (Holdings) Ltd and Kingfisher Finvest Ltd, have pledged their entirestake in the airline with certain of its lenders. United Breweries Holdings Ltd held 199,598,555 shares(representing 40.1% of total outstanding shares) in the airline and pledged all the shares to lenders. At the same

time, Kingfisher Finvest Ltd held 63,478,570 shares (representing 12.75% of total outstanding shares) pledgedits entire holding to the lenders.

The following table concludes the Debt Recast Structure:

Particulars (In Rs.Crore)

Debt beforerecast

Conversion of debt Additional loanDebt postrecastTo CCPS

ToCRPS

ToOCDS

ToWCTL

FITL RTL

Working capital 590.5 (297.40) 293.10Term loan 4,263.49 (750.10) (553.10) 297.40 248.42 768.30 4,274.40PDP loan 166.44 166.44

Promoter loan 656.30 (648.00) 8.30Inter corporatedeposit (ICD)

1,137.32 (709.32) 428.00

Sub Total 6,814.0 (1,398.10) (553.10) (709.32) - 248.42 768.30 5,170.2

Other shortterm loan

75.20 75.20

Hire Purchase 86.15 86.15Finance lease 675.73 675.73Grand total 7,651.12 (1,398.10) (553.10) (709.32) - 248.42 768.30 6,007.30

Table 2

CCPS: Commulative Convertible Preference SharesCRPS: Commulative Redeemable Preference SharesOCDS: Optionally Convertible DebenturesWCTL: Working Capital Term LoanFITL: Funded Interest Term LoanRTL: Rupee Term Loan

Bhavdeep S Kochar,Assistant Professor,

Lovely Professional University

References Ahmed, S., & Mahfooz, Y. (n.d.). Consolidation in the sky- a case study on the quest for supremacy between jetlite and kingfisher

airlines. Retrieved from http://www.iitk.ac.in/infocell/announce/convention/papers/Industrial Economics Environment,

CSR-04-Salma Ahmed, Yasser Mahfooz.pdf Baker, J., & Streeter, M. JP Morgan, North America Corporate Research. (2006). U.S. airlines Berman, K., Knight, J., & Case, J. (2008). The magic of managing the balance sheet. Harvard Business Press Celestine, A. (2011, November 13). Kingfisher airlines bailout: Why options before government & banks are limited. The EconomicTimes. Retrieved fromhttp://articles.economictimes.indiatimes.com/2011-11-13/news/30391494_1_cdr-kingfisher-airlines-loans Fly kingfisher, media center. (n.d.). Retrieved fromhttp://www.flykingfisher.com/media-center/press-releases.aspx
http://articles.economictimes.indiatimes.com/2011-11-13/news/30391494_1_cdr-kingfisher-airlines-loanshttp://articles.economictimes.indiatimes.com/2011-11-13/news/30391494_1_cdr-kingfisher-airlines-loanshttp://articles.economictimes.indiatimes.com/2011-11-13/news/30391494_1_cdr-kingfisher-airlines-loanshttp://www.flykingfisher.com/media-center/press-releases.aspxhttp://www.flykingfisher.com/media-center/press-releases.aspxhttp://www.flykingfisher.com/media-center/press-releases.aspxhttp://www.flykingfisher.com/media-center/press-releases.aspxhttp://articles.economictimes.indiatimes.com/2011-11-13/news/30391494_1_cdr-kingfisher-airlines-loans


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Government may cancel kingfisher airlines license: Ajit singh . (2012, March 20). Retrieved fromhttp://www.ndtv.com/article/profit/government-may-cancel-kingfisher-airlines-license-ajit-singh-300114

Icici bank deplanes, sells Rs 450 crore kingfisher airlines loans to srei fund. (2012, July 03). The Economic Times. Retrieved fromhttp://articles.economictimes.indiatimes.com/2012-07-03/news/32523653_1_loans-second-largest-lender-kingfisher-airlines

Kingfisher Airlines, (2011). Kingfisher airlines. Retrieved from website: http://www.flykingfisher.com/pdf/investor-presentation-june-2011.pdf

Kingfisher airlines - the 'funliner' experience. (2006). Retrieved fromhttp://www.icmrindia.org/casestudies/catalogue/Marketing/Kingfisher Airlines Funliner Experience 4.htm

Kingfisher: Banking imprudence, crony capitalism, failed regulation & poor corporate governance . (2012, February 22). Retrievedfromhttp://www.moneylife.in/article/kingfisher-banking-imprudence-crony-capitalism-failed-regulation-poor-corporate-governance/23835.html

Kingfisher slams veritas report. (2011, September 16). The Times of India. Retrieved fromhttp://timesofindia.indiatimes.com/city/mumbai/Kingfisher-slams-Veritas-report/articleshow/10000414.cms

Kingfisher airlines. (n.d.). Retrieved fromhttp://www.moneycontrol.com/financials/kingfisherairlines/profit-loss/KA02 Kingfisher airlines. (2012, June 25). Retrieved fromhttp://en.wikipedia.org/wiki/Kingfisher_Airlines Monga, N. Veritas Investment Research Corporation, (2011).A pie in the sky Now, IATA suspends Kingfisher from billing plan. (2012, March 09). Retrieved fromhttp://ibnlive.in.com/news/now-iata-suspends-

kingfisher-from-billing-plan/237449-7.html

Pigeaux, I., & Leleux, B. (2008). Air Deccan(b):kingfisher and the king of good times. doi: 617.783.7860 Trivedi, G. (2008, January 25). Case study: Kingfisher takes flight with roving agents . Retrieved from

http://howto.techworld.com/networking/3945/case-study-kingfisher-takes-flight-with-roving-agents/

Table 3: Top three banks in the consortium, which accounted for 62% of the CCPS(All Figures in Million Rupees & bracketed figure in million US$)

Bank Value of CCPS shares acquiredState Bank of India 1822 (40)

ICICI Bank 1700 (37)

IDBI Bank 1125 (25)

Table 4: Financials of Kingfisher AirlinesMar '11 Mar '10 Mar '09 Mar '08 Jun '07

12 months 12 months 12 months 9 months 12 months

Sources Of FundsTotal Share Capital 1,050.88 362.91 362.91 135.80 135.47

Equity Share Capital 497.78 265.91 265.91 135.80 135.47

Share Application Money 2.95 7.48 8.11 10.09 0.00

Preference Share Capital 553.10 97.00 97.00 0.00 0.00

Reserves -4,005.02 -4,268.84 -2,496.36 52.99 249.23

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth -2,951.19 -3,898.45 -2,125.34 198.88 384.70Secured Loans 5,184.53 4,842.43 2,622.52 592.38 716.71

Unsecured Loans 1,872.55 3,080.17 3,043.04 342.00 200.00

Total Debt 7,057.08 7,922.60 5,665.56 934.38 916.71

Total Liabilities 4,105.89 4,024.15 3,540.22 1,133.26 1,301.41

Mar '11 Mar '10 Mar '09 Mar '08 Jun '0712 months 12 months 12 months 9 months 12 months

Application Of Funds

Gross Block 2,254.26 2,048.14 1,891.80 322.33 340.77

Less: Accum. Depreciation 682.37 493.62 316.29 43.55 33.74

Net Block 1,571.89 1,554.52 1,575.51 278.78 307.03Capital Work in Progress 673.35 980.61 1,630.95 346.25 357.62

Investments 0.05 0.05 0.05 0.00 0.41

Inventories 187.65 164.88 147.25 48.64 61.62

Sundry Debtors 440.53 322.49 229.84 27.16 35.24

Cash and Bank Balance 88.18 50.91 49.41 5.84 422.05Total Current Assets 716.36 538.28 426.50 81.64 518.91

Loans and Advances 5,380.19 4,604.31 3,640.42 832.49 149.77

Fixed Deposits 164.18 155.56 122.45 274.29 395.00

Total CA, Loans & Advances 6,260.73 5,298.15 4,189.37 1,188.42 1,063.68

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 4,463.86 3,908.03 3,814.63 687.31 449.15

Provisions 62.11 46.77 45.55 9.52 6.94

Total CL & Provisions 4,525.97 3,954.80 3,860.18 696.83 456.09

Net Current Assets 1,734.76 1,343.35 329.19 491.59 607.59

Miscellaneous Expenses 125.84 145.64 4.51 16.64 28.75

Total Assets 4,105.89 4,024.17 3,540.21 1,133.26 1,301.40

Contingent Liabilities 22,920.23 23,135.77 27,468.70 6,797.11 7,485.33

Book Value (Rs) -70.46 -150.54 -83.88 13.90 28.40
http://www.ndtv.com/article/profit/government-may-cancel-kingfisher-airlines-license-ajit-singh-300114http://www.ndtv.com/article/profit/government-may-cancel-kingfisher-airlines-license-ajit-singh-300114http://articles.economictimes.indiatimes.com/2012-07-03/news/32523653_1_loans-second-largest-lender-kingfisher-airlineshttp://articles.economictimes.indiatimes.com/2012-07-03/news/32523653_1_loans-second-largest-lender-kingfisher-airlineshttp://www.icmrindia.org/casestudies/catalogue/Marketing/Kingfisher%20Airlines%20Funliner%20Experience%204.htmhttp://www.icmrindia.org/casestudies/catalogue/Marketing/Kingfisher%20Airlines%20Funliner%20Experience%204.htmhttp://www.moneylife.in/article/kingfisher-banking-imprudence-crony-capitalism-failed-regulation-poor-corporate-governance/23835.htmlhttp://www.moneylife.in/article/kingfisher-banking-imprudence-crony-capitalism-failed-regulation-poor-corporate-governance/23835.htmlhttp://www.moneylife.in/article/kingfisher-banking-imprudence-crony-capitalism-failed-regulation-poor-corporate-governance/23835.htmlhttp://www.moneylife.in/article/kingfisher-banking-imprudence-crony-capitalism-failed-regulation-poor-corporate-governance/23835.htmlhttp://timesofindia.indiatimes.com/city/mumbai/Kingfisher-slams-Veritas-report/articleshow/10000414.cmshttp://timesofindia.indiatimes.com/city/mumbai/Kingfisher-slams-Veritas-report/articleshow/10000414.cmshttp://www.moneycontrol.com/financials/kingfisherairlines/profit-loss/KA02http://www.moneycontrol.com/financials/kingfisherairlines/profit-loss/KA02http://www.moneycontrol.com/financials/kingfisherairlines/profit-loss/KA02http://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://ibnlive.in.com/news/now-iata-suspends-kingfisher-from-billing-plan/237449-7.htmlhttp://ibnlive.in.com/news/now-iata-suspends-kingfisher-from-billing-plan/237449-7.htmlhttp://ibnlive.in.com/news/now-iata-suspends-kingfisher-from-billing-plan/237449-7.htmlhttp://ibnlive.in.com/news/now-iata-suspends-kingfisher-from-billing-plan/237449-7.htmlhttp://howto.techworld.com/networking/3945/case-study-kingfisher-takes-flight-with-roving-agents/http://howto.techworld.com/networking/3945/case-study-kingfisher-takes-flight-with-roving-agents/http://howto.techworld.com/networking/3945/case-study-kingfisher-takes-flight-with-roving-agents/http://ibnlive.in.com/news/now-iata-suspends-kingfisher-from-billing-plan/237449-7.htmlhttp://ibnlive.in.com/news/now-iata-suspends-kingfisher-from-billing-plan/237449-7.htmlhttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://www.moneycontrol.com/financials/kingfisherairlines/profit-loss/KA02http://timesofindia.indiatimes.com/city/mumbai/Kingfisher-slams-Veritas-report/articleshow/10000414.cmshttp://www.moneylife.in/article/kingfisher-banking-imprudence-crony-capitalism-failed-regulation-poor-corporate-governance/23835.htmlhttp://www.moneylife.in/article/kingfisher-banking-imprudence-crony-capitalism-failed-regulation-poor-corporate-governance/23835.htmlhttp://www.icmrindia.org/casestudies/catalogue/Marketing/Kingfisher%20Airlines%20Funliner%20Experience%204.htmhttp://articles.economictimes.indiatimes.com/2012-07-03/news/32523653_1_loans-second-largest-lender-kingfisher-airlineshttp://www.ndtv.com/article/profit/government-may-cancel-kingfisher-airlines-license-ajit-singh-300114


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Table 5: Year by year f inancial results of Kingfisher Airlines,(All values are depicted in Indian rupee (INR) crore except EPS, which is in plain INR)

Sr. No. From To Months Total Income Cost Net Profit EPS01 Apr-05 Jun-06 15 1,352 1,689 -337 -68

02 Jul-06 Jun-07 12 2,142 2,562 -420 -42

03 Jul-07 Mar-08 09 1,546 1,734 -188 -11

04 Apr-08 Mar-09 12 5,577 7,186 -1,609 -55

05 Apr-09 Mar-10 12 5,271 6,918 -1,647 -54

06 Apr-10 Mar-11 12 6,496 7,523 -1,027 -16

07 Apr-11 Sep-11 06 3,410 4,142 -732 n/aTotal 78 25,793 31,754 -5,960

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Case Study Kingfisher