Kingfisher Airlines was founded in 2005 and was headed by Dr. Vijay Mallya. It began operations with domestic routes in India but struggled with high costs due to operating inefficiently with diversified aircraft and many unprofitable routes. By 2012, the airline was unable to pay salaries or fuel costs and had accumulated massive debt. It was forced to ground all flights and eventually had its license revoked in 2013 due to its financial troubles.

1. FAILURE OF
KINGFISHER
AIRLINES
Swapnil Darji (11MBA012)
Hardik Patel(11MBA108)
Nikendra Sisodiya (11MBA100)
Dinju Gamit (11MBA016)

2. •Founded in-1857
•Chairman–Dr. Vijay Mallya
•Headquartered –Richmond Road, Bangalore
•Products-
Brewery,AlcoholBeverage,Aviation,Chemicals
&Fertilizers,MangaloreChemicalsandFertilizer
sLtd,UBGlobal( trading company)

3. VISION “The Kingfisher Airlines family will consistently
deliver a safe, value based and enjoyable travel
experience to all our guests.”
Kingfisher Commenced its operations on May
9,2005.
Sanjay Agarwal is the current CEO of the
company
KingfisherAirlines is also the sponsor of F1 racing
outfit, Force India

6. Top Management
Financ Marketin Operation
e HR g s

9.  31destinations in India  63 domestic destinations in
 Focused & Profit making India
routes  Many Unprofitable routes like
 Low price compared to King Nasik , Hubli etc.
fisher red  Strict rules by DGCA on
 Focus on Low Cost Airlines implementation of Time Table
 Innovative and radical  Operations shifted to New
Terminals in Delhi & Mumbai.
method so fair line back
 Focus diverted from high
 end operations like service to low cost
financing , leasing.  More Turnaround time as
 Less Turnaround time as compared to Indigo
compared to Kingfisher red

10. Standardized Aircraft
 Less Inventory of Spares
 Less Training Cost
 Less Maintenance Cost
 Less Operational cost
 Effective Terminal Use
 Easy Scheduling
Diversified Aircrafts with different
capacities
 High Inventory of Spares
 High Training Cost
 High Maintenance Cost
 High Operational Cost
 Scheduling difficult
 More Human Resources
required

11. WHAT WENT WRONG?
• Frankly, it was a hassle-free decision for Vijay Mallya to completely
suspend services on his budget carrier Kingfisher Red, says one of
his close confidantes.
• Formerly known as Air Deccan, Mallya had bought 26% stake in
this airline from his friend-cum-neighbour Captain Gopinath in 2007 at
Rs 550 crore and later picked up additional 20% stake at around Rs
155 a share.
• The intention of acquiring Deccan was only aimed at giving
Kingfisher Airlines (KFA) an access to international routes quickly.
• Government rules gave overseas flight rights only to airlines
with a minimum of five years experience, and KFA was behind in
the queue after Deccan.
•“Mallya never believed in low fare business model even when he
bought the airline,” says an official with the airline.

12. • The dismal performance of Red all these years made
Mallya realise that the high profile „classy image‟ of his very
own KFA is taking a hit due to him simultaneously running
a low cost service.
• Meanwhile, discontinuing Kingfisher Red may have come
as a surprise to a few at a time when low fare carriers like
Jet Lite, Indigo and Spice Jet are doing better then their full
service peers in terms of load factors--- but the news has
not sprung any surprise to analysts and Kingfisher Airlines
(KFA) officials who had guessed something of this sort was
on its way.

13. RECOMENDATIONS –
MARKETING STRATEGY
Holiday packages-at unprofitable routes
 •
like Nasik, Aurangabad
 •Pricing-Should beat par with Spice jet
and Indigo
 •Tie-ups with Corporate
 •Frequent flyer programmes
 •Better deals and offers for flyers in air

14. GENERAL
RECCOMMENDATIONS back
1.Route rationalisation: Cutting
unprofitable sectors and services to
several cities
2.Debt recast: Asking banks to reduce rates
or take a cut on loans or find a 'local
investor„
3.Raising capital: It has plans to raise $200
million through GDR
4.FDI: If the FDI limit is raised and foreign
airlines are allowed to buy a stake, Mallya
could recapitalise Kingfisher