Crisis

ByVijayakumar.SVenkateswarlu.A

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

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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

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Fleet

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Fleet

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Services Domestic– Kingfisher First– Kingfisher Class– Kingfisher Red

International– Kingfisher First– Kingfisher Class

King club Kingfisher Express Kingfisher lounge

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

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SWOT analysis Strengths

Brand valueReputation in the minds of customersUB is a parent companyQuality service More than 80 destinations

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SWOT analysis(cont’d) Weakness

High maintenance cost High ticket priceHeavy debtUnable to generate expected return on investmentNo own aircraftOver spending of funds

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SWOT analysis(cont’d) Opportunities

One of the fastest growing aviation0.05%people are flying out of 1.2 billianMiddle class families are choosing travel by airHigher disposable income of customerExpanding tourismLarge number of domestic untapped routes

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SWOT analysis(cont’d) Threats

CompititorsOperational costs of aircraftGovernment policiesThreats from other modes of trasportation

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What do you feel

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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

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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

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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

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Market share & share price

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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

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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

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ConclusionKFA 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

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Any QuestionsThank You

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