This document analyzes the reasons for the failure of Kingfisher Airlines in 2012. It finds that high costs, especially fuel costs, interest expenses, and operating losses were the main factors. Kingfisher had a much higher debt-to-equity ratio than competitors like Jet Airways and SpiceJet. It also had weak revenue growth, falling passenger numbers, and losses even during periods that were profitable for competitors. The key reasons identified for the aviation industry's struggles are high fuel prices, economic recession, and a price war caused by excessive fleet expansion on major routes.