BY, SANANDA SIKDAR

Industry: Transportation Founded: 2003 Operation started: 9 May 2005 Headquarters: Mumbai, Maharashtra Key People: Dr. Vijay Mallya, CMD

Sanjay Aggarwal, CFO A. Raghunathan, CFO (Finance) Hitesh Patel, EVP (Operations & Engineering) Rajesh Verma, EVP (In-Flight, Customer Service & Cargo)

 Area

Served: Asia, Europe Services: Airline catering & foodservices, aircraft ground handling & passenger transport Revenue: Rs. 6, 496 Crore ( US$ 1.45 billion) (2010-11) Subsidiaries: Kingfisher Airlines Websites: www.flykingfisher.com

The Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel experience to all our guests.

VALUES
Safety Services Happiness Teamwork Accountability

Strengths First airline with full new fleet of aircraft Quality hospitality provided to customers Route rationalization Already have training academy Weaknesses Service delivery to metros and other big cities Yet not in profit High ticket pricing High attrition in top brass

Opportunities Under penetrated domestic market International market Untapped air cargo market Expanding tourism industry

Threats

Existing Operators Infrastructure issue Fuel price hike Economic slowdown

1.

No Network Planning- A me too approach kingfisher tried to copy the network of arch rivals Jet Airways. Shifting its international operations base from Bangalore where it was the sole Indian carrier offering wide body services to Mumbai the home base of both Jet Airways and Air India. Economic downturn Sky rocketing of Aircraft Fuel Price. Inability to hike fare due to competition He had diversified his business in various field but he has not coined any CEO. He was unable to read the mind of Indian customer(KFA was not for common man).

2. 3. 4. 5.

6.

It started in the month of November, Kingfisher airlines could not pay- pilots, stewardesses, janitors, fuel prices It has a total debt of Rs. 7000 cr. even after about Rs. 1400 cr. was kind of written off last year.

The airline made an operational loss of Rs 1027 crore losses over the last year operation.
BPCL (Bangalore Petro Chemical Ltd) has even filed a court case for recovery on unpaid dues of over 250 cr.

Their cheque of Rs. 151 crores to clear the dues recently bounced further worsening the situation.

Bangalore and the Hyderabad airports have decided to ask Kingfisher for landing charges before they allow the KF planes to land. It has absolutely no assets that it can sell or mortgage.

The bankers converted, approximately Rs 750 cr. to equity. In lieu of the waive off, the banks got a 23% stake in the airline.
Hence the banks lost about 300 cr. in this transaction. At the time of restructuring, Kingfishers total debt was Rs 8,414 cr.

 Kingfisher Airlines,

is in talks with two foreign carriers, including International Airlines Group (IAG)- the owner of British Airways and Iberia, for a potential rescue package.
is huge possibility that the government would bail out the airlines as kingfisher airlines constitute around 16% of the total Indian fleet and holds 18% domestic passenger shares.

There

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