Kingfisher airlines

1. Critical situation in an organization and managerial solution
Name : Vigneshwari T
Reg.no : 94
MBA B
T h i s t e m p l a t e c a n b e u s e d f r e e i n a n y c i r c u m s t a n c e

2. CONTENT
01Introduction
02Nokia crisis
03Solution

3. Introduction
•
Kingfisher Airlines Limited was an airline group based in India.
Through its parent company United Breweries Group, it had a
50% stake in low-cost carrier Kingfisher Red.
• Until December 2011, Kingfisher Airlines had the second largest
share in India's domestic air travel market. However, the airline
ran into continuous losses since its inception, ran high debts and
finally closed its operations in 2012.
• Its chairman Vijay Mallya subsequently fled to London to hide
from creditors.

4. KINGFISHER AIRLINES
Crisis

5. What went wrong
• Economic Slowdown
• Another external factor for the Kingfisher downfall is economic
slowdown in 2008, Kingfisher first started it’s international route from
Bangalore to London in 2008, same year recession affected the whole
world, which is indirectly affected the air travel occupancy in
international routes, because of the recession, airplane fuel prices
raised, airport charges for landing are very costly in international
airports around the world, all these external factors caused the
Kingfisher airlines to downfall.

6. Lack of Management
• There was no single CEO continued for one year in Kingfisher airlines,
there was a frequent change in the top level management, Mr. Vijay
Mallya never taken any serious interference in day-to-day operations,
Kingfisher was a gift to Siddarth Mallya(son of Vijay Mallya) by his
father on his birthday, Siddarth Mallya doesn’t have the maturity age
to run the airlines business because he is so busy in making Kingfisher
Calendar.
• The company not even thought of making Mr. Gopinath (Ex founder
of Air Deccan) as CEO of the Kingfisher airlines to bring the company
into a profitable business, lack of proper expertise and experience in
the airline industry, lack of management caused the downfall of
kingfisher airlines.

7. High Operational Cost
• Operational costs of the airline industry are very high compared to
any industry, companies have to buy the licenses for the routes,
companies should invest in the aircraft maintenance, salaries for the
employees are very high.
• Airports charges fees for landing and parking, aircraft fuel frequently
changes as per the international crude oil rates, the government
collects huge taxes from the airline companies, there is a lot of
competition between airline companies, all these high operational
costs without good profit margin caused the Kingfisher to downfall.

8. Some of the reasons responsible for the failure of
Nokia
• The mighty firm Nokia sold itself to the Microsoft. This raised many
questions like – was the firm incapable of managing the business or
was it the Nokia management failure.
• Nokia was very slow to cope up with the prevailing trends like that of
the touch screen, sending of the emails and the importance of software
with that of the hardware could be some of the reasons of Nokia
downfall.
• The emergence of Android which was accepted by the brands like
Samsung, Sony, HTC has gripped the roots of the market tight leading
to the reason why Nokia lost market share

9. Solution

10. • CHANGE THE MANAGEMENT
• CHANGE THE ENTIRE BOArd of directors
• Management should b given to different or new system
• Decentralization in authority
• Make.belive
• Cancelling all orders of airplanes
• FDI in aviation must be permitted
• Cut costs by not flying to expensive section and airports resulting in
huge parking costs of the same

11. Thank You!
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