Chitkara business schoolProject of managerial economics Cost cut strategies of kingfisher and Indian airlines
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..
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”..
Cost cut initiatives taken KINGFISHER AIRLINES
kingfisher has reporteda saving of 530 croreby CuTTiNg iTs COsT…
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
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..