About kingfisher airlines

2. 1. Introduction to KINGFISHER AIRLINES.
2. Introduction to VIJAY MALLYA.
3. Strategies Mallya made to reach the TOP of
aviation market of India.
4. Where did he FAIL?
5. What could have saved KFA + conclusion.

3.  Aviation industry established in
2003. Began it’s commercial
operations on 9th May, 2005.
 Subsidiary company of
UNIVERSAL BREVERIES (UB)
GROUPS, which was previously
headed by it’s ex chairman,
India's biggest liquor tycoon
VIJAY MALLYA.

4.  The company aimed to provide
world class facilities and lead the
competition in service offerings,
with brand new planes and
excellent facilities like: hot meals,
comfortable seats, personalized
entertainment and treating
passengers as “guests” with LOW
COSTS.
 By the year 2006, the Airlines
achieved a five-star status, in 2009
it went on to become the largest
airline of India, with 26.7% share in
aviation market by carrying 10 lakh
passengers.

5.  Born on 18th December 1955 (66
years) to Vittal Mallya and Lalitha
Ramaiah. Vittal Mallya was the
Chairman of United Breweries Group.
 After the death of Vittal Mallya in
1983, Vijay Mallya inherited “UNITED
BREWERIES GROUP” at the age of 28.
 He is an Indian
businessman, former politician,
known as “king of good times” for
his extravagant lifestyle.

6.  Since the inheritance of UBL, he went
on to acquire 60+ beverages,
pharmacy, food and many other
kinds of companies.
 Kingfisher Airlines, established in 2005,
was a major business venture
launched by Mallya.
 Being involved in financial scandals,
Mallya left India on 2 March
2016, group of 17 Indian banks are
trying to collect approximately ₹90
billion (US$1.1 billion) in loans from
him

7.  He took co branding initiatives with American
Express Corporate Card, Airtel, Goa tourism and
Malaysia tourism.
 Launched lots of advertising campaigns to
destroy competitors marketing strategies.
 Marketed KFA hugely by becoming channel
partner of NDTV good times, which is India’s first
lifestyle channel.

8.  He signed up bollywood
sensation Deepika padukone as
the brand ambassador of KFA.
 Three classes of travel were
offered by Kingfisher airlines to its
travelers:
1. Kingfisher First
2. Kingfisher Class
3. Kingfisher Red

9.  There was slowdown in economy in 2008 and the fuel price
was increased, because of this KFA was short of cash. There
was no other way to pay the airport fee, fuel and salary of
employees. So it took huge loans.
 KFA bought AirDeccan during loss, because air deccan was
active for more than 5 years, this would help KFA to get an
INTERNATIONAL LICENCE which would help in uplifting it’s
falling economy.
 After merging with Air Deccan there was introduction of
Kingfisher Red in 2008. But this business strategy caused
confusion in consumer’s mind because the KFA passengers
were used to the luxury provided like cuisine and lounge
access etc. The merging degraded the brand status of KFA
and the company lost its premium value.

10.  According to a report generated by “The Indian Express” in
November 2015, Mr. Mallya suffered a total loss of Rs
9,091.40 crore. He took loan from 17 banks.
 He couldn’t repay debt or pay salaries and taxes after
facing continuous loses, their license was cancelled on 20
October 2012, KFA had no other path but to SHUT DOWN.

12.  Financial stability should have been achieved before
acquiring AirDeccan.
 KFA should have focused more price and convenience rather
than just luxury.
SURVEY ON WHAT PEOPLE EXPECT FROM KFA

13.  Started with the intention of being the top in the Indian, KFA
achieved the feat real soon. But failed to have emergency
funds during the economic crisis. At this time, they acquired
AirDeccan (renamed as KFA red) to gain profit and
international license, but failed.
 They COULD’NT:
i. Provide salaries to employees, >24 pilots resigned.
ii. Pay airport and govt. taxes.
iii. failed to provide safety and punctuality of flights.
iv. Couldn’t survive in share market
AS A RESULT, KFA WAS SHUT DOWN.

14. -THANK YOU MS. KAVYASHREE MA’AM AND
I BBA ‘B’ !!!!!
• Yashaswini M H
• Suchithra H S
• Shobha V
• Sushmitha B
• Shobitha M