FAILURE OF KINGFISHER AIRLINES

Swapnil Darji (11MBA012) Hardik Patel(11MBA108) Nikendra Sisodiya (11MBA100) Dinju Gamit (11MBA016)

Founded in-1857 ChairmanDr. Vijay Mallya Headquartered Richmond Road, Bangalore Products-

Brewery,AlcoholBeverage,Aviation,Chemicals &Fertilizers,MangaloreChemicalsandFertilizer sLtd,UBGlobal( trading company)

VISION The Kingfisher Airlines family will consistently deliver a safe, value based and enjoyable travel experience to all our guests. Kingfisher Commenced its operations on May 9,2005.

Sanjay Agarwal is the current CEO of the company

KingfisherAirlines is also the sponsor of F1 racing outfit, Force India

Top Management

Financ e

HR

Marketin g

Operation s

 31destinations in India Focused & Profit making routes Low price compared to King fisher red Focus on Low Cost Airlines Innovative and radical method so fair line back end operations like financing , leasing. Less Turnaround time as compared to Kingfisher red

63 domestic destinations in India Many Unprofitable routes like Nasik , Hubli etc. Strict rules by DGCA on implementation of Time Table Operations shifted to New Terminals in Delhi & Mumbai. Focus diverted from high service to low cost More Turnaround time as compared to Indigo

Standardized Aircraft Less Inventory of Spares Less Training Cost Less Maintenance Cost Less Operational cost Effective Terminal Use Easy Scheduling Diversified Aircrafts with different capacities High Inventory of Spares High Training Cost High Maintenance Cost High Operational Cost Scheduling difficult More Human Resources required

WHAT WENT WRONG?

Frankly, it was a hassle-free decision for Vijay Mallya to completely suspend services on his budget carrier Kingfisher Red, says one of his close confidantes. Formerly known as Air Deccan, Mallya had bought 26% stake in this airline from his friend-cum-neighbour Captain Gopinath in 2007 at Rs 550 crore and later picked up additional 20% stake at around Rs 155 a share. The intention of acquiring Deccan was only aimed at giving Kingfisher Airlines (KFA) an access to international routes quickly.
Government rules gave overseas flight rights only to airlines with a minimum of five years experience, and KFA was behind in the queue after Deccan. Mallya never believed in low fare business model even when he bought the airline, says an official with the airline.

 The dismal performance of Red all these years made Mallya realise that the high profile classy image of his very own KFA is taking a hit due to him simultaneously running a low cost service.

Meanwhile, discontinuing Kingfisher Red may have come as a surprise to a few at a time when low fare carriers like Jet Lite, Indigo and Spice Jet are doing better then their full service peers in terms of load factors--- but the news has not sprung any surprise to analysts and Kingfisher Airlines (KFA) officials who had guessed something of this sort was on its way.

RECOMENDATIONS MARKETING STRATEGY

Holiday packages-at unprofitable routes like Nasik, Aurangabad Pricing-Should beat par with Spice jet and Indigo Tie-ups with Corporate Frequent flyer programmes Better deals and offers for flyers in air

GENERAL RECCOMMENDATIONS back 1.Route rationalisation: Cutting

unprofitable sectors and services to several cities 2.Debt recast: Asking banks to reduce rates or take a cut on loans or find a 'local investor 3.Raising capital: It has plans to raise $200 million through GDR 4.FDI: If the FDI limit is raised and foreign airlines are allowed to buy a stake, Mallya could recapitalise Kingfisher