Kingfisher Airlines Limitedwas anairlinegroup based inIndia. Its head office is inAndheri(East),Mumbaiand Registered Office inUB City,Bangalore. Kingfisher Airlines, through its parent companyUnited Breweries Group, has a 50% stake inlow-cost carrierKingfisher Red. The airline had been facing financial issues for many years.[4]Until December 2011, Kingfisher Airlines had the second largest share in India's domestic air travel market. However due to a severe financial crisis faced by the airline at the beginning of 2012, it has the lowest market share since April 2012.[5][6]The airline had shut down its operations when on 20 October 2012 the DGCA suspended its flying license. The suspension had been due to failure to give an effective response to the show-cause notice issued by DGCA. However, the airline had locked out its employees for several days before this suspension. On 25 October 2012, the employees agreed to return to work.[7]In February 2013 the Indian government announced the withdrawal of both domestic and international flight entitlements allocated to the airline.[8]

Kingfisher Airlines was established in 2003. It is owned by theBengalurubasedUnited Breweries Group. The airline started commercial operations in 9 May 2005 with a fleet of four newAirbus A320-200soperating a flight fromMumbaitoDelhi.[9]It started its international operations on 3 September 2008 by connectingBengaluruwithLondon. Kingfisher's head office is located in The Qube inAndheri(East),Mumbaiand its registered office is located inUB City,Bangalore.[10][11]Its head office was previously in the Kingfisher House inVile Parle (East), Mumbai.[12]In 2012Vijay Mallyawas trying to sell the Vile Parle Kingfisher House.[13]With the freezing of the bank accounts of the airline by the Indian Income Tax Department, the airline entered a period of financial unrest.[14]Following are the year by year financial results of Kingfisher Airlines, all values are depicted inIndian rupee(INR) crore except EPS, which is in plain INR.[15]In September 2011, the chairman and managing director of Kingfisher Airlines made following disclosure to theBombay Stock Exchange(BSE); "The Company has incurred substantial losses and its net worth has been eroded. However, having regard to improvement in the economic sentiment, rationalization measures adopted by the Company, fleet recovery and the implementation of the debt recast package with the lenders and promoters including conversion of debt into share capital, these interim financial statements have been prepared on the basis that the Company is agoing concernand that no adjustments are required to the carrying value of assets and liabilities"[16]This filing was widely covered by Indian and international print and electronic media and analysts. It was stated by analysts and media that the company needed capital infusion to remain viable and this has pushed shares to near historic lows.[17]Kingfisher Airlines Lenders later stated that they consider that company is viable.[18]On 15 November 2011 the airline released poor financial results, indicating that it was "drowning in high-interest debt and losing money". Mallya indicated that his solution was for the government to reduce fuel and other taxes. The government was engaged in assessing whether to bail out the company and other airlines or let market forces determine which ones survive.[19]

Ever since the airline commenced operations in 2005, it reported losses. After acquiringAir Deccan, Kingfisher suffered a loss of over10 billion(US$160million) for three consecutive years. By early 2012, the airline accumulated losses of over70 billion(US$1.1billion) with half of its fleet grounded and several members of its staff going on strike. Kingfisher's position intop Indian airlineson the basis of market share had slipped to last from 2 because of the crisis. In December 2011, for the second time in two months, Kingfisher's bank accounts were frozen by the Mumbai Income Tax department for non-payment of dues. Kingfisher Airlines owes70crore(US$11million) to the service tax department.[20]Indian tax body also stated that Kingfisher Airlines is delinquent[21]On 20 October 2012, Kingfisher's licence was suspended by the Directorate General of Civil Aviation after it failed to address the Indian regulator's concerns about its operations.[22]On 25 February 2013, its international flying rights and domestic slots were scrapped by the Indian aviation authorities.[23]