Kingfisher Airlins crisis and solutions


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Kingfisher Airlins crisis and solutions

  1. 1. !ntroduction  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 lowcost carrier Kingfisher Red.  The airline started commercial operations in 9 May 2005 with a fleet of four new Airbus A320200s 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
  2. 2. 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
  3. 3. SWOT Analysis 1. 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
  4. 4. 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
  5. 5. Solution  Change the management  Change the entire board of directors  Management should be given to different or new system  Decentralization in authority  Make.belive
  6. 6. Solution • 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