This document discusses the crisis of Kingfisher Airlines, an Indian airline established in 2003. It provides a history of the airline, describes its services and facilities. It then performs a SWOT analysis, identifying strengths like its brand value but also weaknesses such as high maintenance costs. Several reasons for the airline's crisis are explored, like operational costs, employee strikes, and an inability to pay aircraft lease rentals. Potential solutions are proposed, such as reducing costs on meals and focusing on smaller aircraft for short routes. However, the airline ultimately shut down in 2012 due to management and financial issues.

1. Crisis
By
Vijayakumar.S
Venkateswarlu.A

2. Content flow
 History
 Fleet
 Services
 Onboard service & facilities
 SWOT analysis
 Reasons for crisis
 Market share and share price
 Possible solutions
 Conclusion
2

3. History
 Established in 2003 and commercial operations
started in 2005
 International operations started in 2008
 Head office in Mumbai
 Vijay Mallya was the Chairman & CMD
 400 daily flights
 Five star rating from Skytrax
3

4. Fleet
4

5. Fleet
5

6. Services
 Domestic
– Kingfisher First
– Kingfisher Class
– Kingfisher Red
 International
– Kingfisher First
– Kingfisher Class
 King club
 Kingfisher Express
 Kingfisher lounge
6

7. Onboard services & facilities
 In-flight entertainment
 TV in flight
 Full course meals
 Kingfisher radio
 Personal television
 Headphones
 Alcoholic beverages
 Seat massagers
7

8. SWOT analysis
 Strengths
Brand value
Reputation in the minds of customers
UB is a parent company
Quality service
More than 80 destinations
8

9. SWOT analysis(cont’d)
 Weakness
High maintenance cost
High ticket price
Heavy debt
Unable to generate expected return on investment
No own aircraft
Over spending of funds
9

10. SWOT analysis(cont’d)
 Opportunities
One of the fastest growing aviation
0.05%people are flying out of 1.2 billian
Middle class families are choosing travel by air
Higher disposable income of customer
Expanding tourism
Large number of domestic untapped routes
10

11. SWOT analysis(cont’d)
 Threats
Compititors
Operational costs of aircraft
Government policies
Threats from other modes of trasportation
11

12. What do you feel
12

13. Reasons for crisis
 Operational costs
 Lower ticket prices
 The domestic airlines are projected to report a
combined loss of $2.5bn by the end of
fiscal(2011-12)
 Employee strike
 Cancelations of flights
 Losses since starting of the business
 Acquiring of Air Deccan
13

14. Reasons for crisis(cont’d)
 Bank accounts frozen by Income Tax depot
 Bharat petroleum corporation filed a case for non
payment of dues(250 cr)
 Unable to pay the aircraft lease rentals
 It was declared as national big NPA by bank
consortium
 Indians are cost conscious rather than brand
 More turn around time
 2000 Job cuts
14

15. Reasons for crisis(cont’d)
 Failed to study business models of low cost
carrier
 Charging low fare and operating in prime routes
 Travel agents advising travelers to consider
options other than KFA
 Bank consortium rejected airline plea for
additional funding
15

16. Market share & share price
16

17. Possible solutions
 Remove the flights from low frequency routes
 Avoid full course meals , give snacks
 Try to focus on smaller air crafts and fuel
efficient planes for short distances
 Meet the aspiration of employees
 Meet the expectations of its customers
 Avoid aggressive expansion of fleet
 KFA should have avoided flying even a single
aircraft to metro and should have taken
advantages of hundreds of uncommon routes
17

18. Possible solutions
 KFA was a 5 star airline then there was no
reason to operate on two different business
models at same time.
 It could have restructured it’s strategy
18

19. Conclusion
KFA was one of the largest and most wide
spread airline of the country provided it’s
services not only in India as well as outside of
India also. Due to lack of management and
financial crisis Kingfisher Airline was
permanently closed it’s counter on 15 Feb 2012
19

20. Any QuestionsThank You
20