Kishu m.e

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Kishu m.e

  1. 1. Chitkara business schoolProject of managerial economics Cost cut strategies of kingfisher and Indian airlines
  2. 2. Kingfisher airlines Kingfisher Airlines was established in 2003. Mr. Vijay Mallya is the chairman and CEO of kingfisher airlines.. It is one of the seven airlines awarded 5 star rating by Skytrax.. It operates more than 375 daily flights to 71 destinations with regional and long hour international services..
  3. 3. CONTD…. It is the largest passenger carrier having approx. 904000 flyers per month.. It has the highest market share among airlines of 27.6%.. It is also known as the “King of good times”..
  4. 4. Cost cut initiatives taken KINGFISHER AIRLINES 
  5. 5. kingfisher has reporteda saving of 530 croreby CuTTiNg iTs COsT…
  6. 6. sTRATEgiEs……….. Reduction in expatriate pilots from 180 to 83.. Hiring more Indian pilots.. Reduction in salaries of 50 trainee co-pilots to a stipend of 20k.. Slashes pilot salaries by 80,000.. Working with a consortium of banks to reduce interest costs and raise working capital.. Coalition between Kingfisher and Jet Airways
  7. 7. Contd….. Reduction in aircrafts to 64.. Aircraft utilization has increased by 11%.. Reduction in lease costs.. Kingfisher cut its debt through restructuring by issuing shares to 14 banks.. Preliminary negotiations with Air France-KLM to selling out 20-25% stake..
  8. 8. CREATivE sTRATEgiEs… Advertising Fuel management Network rationalizing Reconfiguration of aircraft

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