JOURNEY OF KINGFISHER AIRLINES

PRESENTED BY GROUP NO:1BHAVANA

ANIKETVANDANA

DEBASHREEJUILEE

PIYUSHBHAKTI

DIVYA

INTRODUCTION

Kingfisher Airlines was established in 2003, but started commercial operations in 9 May 2005. 

It is owned by the Bengaluru based United  Breweries Group.

Kingfisher Airlines is a major airline based in  Mumbai, India. 

It is India’s fifth largest passenger airline. It was started by flamboyant beer baron VIJAY

MALLYA in May 2005. 

Vijay Mallya is the chairman of the UB Group. UB Group is one of the largest conglomerates

with diverse interests in:1. Brewing2. Distilling3. Aviation4. Pharmaceuticals5. Real Estate6. Engineering7. Fertilizers8. Biotechnology 9. I.T.

HEALTHY ORGANIZATION

A “Value carrier” to a Full service airline

A “five star air travel” with premium facilities

Unique services like (IFE) In-fight entertainment system, etc.

The ambitious leadership

Year 2008 - the best from its inception

HEALTHY ORGANIZATION (CNTD..)

Strong Brand image

Highly trained staff

Quality & continuous innovation

HEALTHY ORGANIZATION (CNTD..)

A healthy market share in 2009

Quality

Safety and security

Courage and persistence in the face of

difficulty.

2005Year ending 30th June 2006

Income- INR 13.5 Billion

Loss- INR 3.4 Billion

Began its operation on 9th may

2005

Dominant players- Jet Airways &

Sahara

2006Year ending 30th June 2007

Income- Increased by INR 4.1 Billion

Loss- INR 4.19 Billion

Synonym with Five Star air

travels

December2006- announced Live

In Flight entertainment

2007Year ending 31st March 2008

Income- INR 15.4 Billion

Loss- INR 1.8 Billion

19th December

2007- acquired

entire 46% of

Deccan Aviation

2008Year ending- 31st March 2009

Income- INR 55 Billion

Loss- INR 16 Billion

2nd Largest passenger airline

Got permit to operate on

International routes

(Bangalore to London)

2009Year ending- 31st March 2010

Income- INR 52.7 Billion

Loss- INR 16.4 Billion

Healthy market share of 22.9%o

Domestic flights reduce to 366

International flights increased to 12

flights daily

No dividend to shareholders

2010Year ending- 31st March 2011

Income- INR 64.9 Billion

Loss- INR 10.2 Billion

Jet Airway’s market share- 25.5%

Kingfisher Airline’s market share- 19.3%

International flights increased to 28 daily

2011Year ending- 31st December 2011

Income- INR 13.4 Billion

Loss- INR 4.4 Billion

First time declared- Serious Cash

flow problem

Blamed to rising fuel cost

Dozens of pilots left kingfisher

2012

5th January 2012- SBI declared Kingfisher

as non-performing asset.

Kingfisher declared 200 job cuts also

long working hours.

First time Mr. Mallya declared Kingfisher

needs of funds in order to maintain

operation.

WHAT WENT WRONG?? Failed low cost model

Misjudgment in introduction of low cost carriers

Aircrafts

Heavy dependence on import of Aircrafts on

lease

Strategy

WHY UNHEALTHY

Control

Little or unhelpful feedback

People feel locked in jobs

SUGGESTIONS

Clear the dues of its staff and pilots or

assure them of enough funds.

Cut down on its fleet.

Cancel the orders for new aircrafts.

Focus on operating in secondary cities

with smaller airports.

Take support from the Government

and the RBI.