Life journey of Vijay Mallya from bang to bust along with all details like business owned by him,financial data,his interest and most important business strategy also.

1. VIJAYMALLYA
“THEKINGOF GOODTIMES”

15. FROMBANGTOBUST
KINGFISHER”SSTORY

16. FINANCIALCRISIS
O Kingfisher Airlines financial crisis refers to the
series of events that led to severe disruptions
within Kingfisher airlines.
O Ever since the airlines commenced operations in
2005,it has been reporting losses.
O After acquiring Air Deccan , Kingfisher suffered a
loss of over 1,000 crore for three consecutive
years.
O By early 2012,the airlines accumulated losses of
over 7,000 crore.

17. CONSEQUENCEOFCRISIS
O Its half of its fleet grounded.
O Salaries delayed
O Several members of its staff going on
strike
O Kingfisher’s position in top Indian airlines
on the basis of market share had slipped
to last from 2 because of crisis.

18. STARTOF THECRISIS
O The start of the crisis was the freezing of the
bank accounts of the Airline by the Income Tax
Department.
O As on 10 Jan 2012 Kingfisher Airlines has a
service tax arrears of 60 crore.
O KFA has not been depositing service tax
collected from passenger with the department
since Nov. 2011 on regular basis & instead has
been diverting it for other purpose on regular
basis.

19. ACCUMULATEDDEBT
 In 2008 KFA and Air Deccan (kingfisher red)
had reported a loss of 1,602 crores.
 The domestic airlines are projected to report a
combined loss of 1,250 crore by the end of
2012.
 KFA has a debt of Rs.9,091 crore from 17
banks.

20. PAYMENTPROBLEMS
O Kingfisher Airlines has staff strength of 6,000 &
spends 50 crore on salaries a month.
O Airlines delayed salaries of its employees in August
2011, for four months in succession from October
2011 to January 2012.
O Kingfisher also defaulted on paying the tax
deducted on source from the employee income to
the tax department.

21. CONT…
O Kingfisher received a notice from the Airports Authority of
India on Feb. 2012 regarding accumulated dues of 255.06
crore.
O Kingfisher Airlines had not paid some bankers (lenders) as
per the debt recast package (DRP) with lending banks
O By Feb. 2012 Kingfisher has been declared NPA(Non
Performing Assets) by following banks:-
 SBI
 IDBI
 PNB
 BOI
 BANK OF BARODA
 CENTRAL BANK
 CORPORATION BANK

22. CONCLUSIONS
O Financial crisis of KFA was due to following
reasons:-
 High fuel prices.
 Overspending /expenses.
 Highly competitive industry.
 Business model was not effective.
 Deregulation act.
 Recession lose passenger(High operation cost
due to low demand).
 Huge interest outgo due to heavy investment in
purchase of aircrafts.
 “Acquisitionof AirDeccanmarkedtheendof KingfisherAirlines”.