Post on 04-Jun-2018
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Indian airline industry
Facts of Indian aviation
Kingfisher airlines
Journey of KFA
Crisis
Comparison with rivals
Steps taken to overcome crisis
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Indian aviation sector is fastest growing sector and has
experienced 8% growth per year.
9th largest growing market in the world.
Liberalization has resulted in remarkable growth.
Aviation sector handles 2.5 billion passengers across theworld in a year.
Moves 45 million tonnes of cargo through 920 airlines,
using 4,200 airports and deploys 27,000 aircraft.
Today, 87 foreign airlines fly to and from India and five
Indian carriers fly to and from 40 countries.
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Industry: Transportation House Name: UB Group
Founded: 2003
Operation started: 9thMay 2005
Headquarters: Mumbai, Maharashtra
Registered Office: Bengaluru
Key People: Dr. Vijay Mallya (CMD)Sanjay Agarwal (CEO)
Services: Airline catering & foodservices,
Aircraft ground handling & passenger transport.
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Kingfisher Airlines has received three global awards at the
SKYTRAX World Airline Awards NDTV Profit Business Leadership Award for Aviation
India's only 5 Star airline", rated by Skytrax
Brand Leadership Award
Economic Times Avaya Award 2006 for Excellence in "Customer
Responsiveness
IndiasNo. 1 Airline in customer satisfaction
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2005
Began its operations on 9thMay
Income for year ending on 30thJune 2006 was INR 13.5 billion.
2006
KFA became synonym with 5 star air travel.
Serious talk with Air Deccan.
2007
Carried 17.5 million passengers, fleet of 41 aircrafts.
19thDecember 2007 acquired 46% of Deccan aviation in air Deccan
Income INR 15.4 billion.
2008
Was Carrying 10.9 million passengers annually, fleet of 77 aircrafts.
Started international operations.
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2009
Healthy market share of 22.9%.
Won numerous tributes from agencies around the globe.
2010
Market share came down to19.8%.
Emergence of Indigo
2011
Cash flow problems.
Dozens of pilot left for rival airlines.
Debt started increasing.
2012 SBI declared Kingfisher as non-performing asset. Kingfisher airlines became headlines.
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More Operational Cost.
Acquisition of Air Deccan.
Business on credit basis.
No planning and forecasting.
No proper management.
Covered destinations where passengers were less.
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Total debt of Rs.7000 cr. even after about Rs. 1400 cr. was kind of
written off last year.
Total losses of Rs. 8000 cr.
Operational loss of Rs 1027 crores.
It owes a sum total of approximately Rs 890 cr. to all its fuel
suppliers.
BPCL and several Kingfisher lenders have even filed a court case
for recovery on unpaid dues of over 250 cr.
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It has absolutely no assets that it can sell or mortgage.
Aircrafts recalled due to non-payment.
Bangalore and Hyderabad airport have decided to ask
Kingfisher airlines to pay landing charges before they land.
Feb 2012-Several flights cancelled and many grounded.
Market Share dropped to 11.3%
Stocks dropped to 13.5%.
Contd.
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Delayed Salaries
Fuel Dues
Aircraft Lease Rental Issue
AAI reports
Service Tax & Income Tax
Bank Arrears
IATA Suspension
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Kingfisher Airlines' unpaid staff shaken by suicide
on Oct 10, 2012
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No flying for Kingfisher without bank guarantee: AAI
Kingfisher owes over Rs 200 cr to AAI
Kingfisher Airlines to extend lockout; management, workers
to meet again soon
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Brand Building.
Brand Communications.
Operating in both international & domestic market.
Focusing on ROI.
Strong Management team.
Focusing mainly on customer satisfaction.
Knowledge and ability to forecast the opportunities and
threats in coming future, and adapting according to it.
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PROFITABILITY
FINANCIAL Fewer planes & more customer
CUSTOMER Fight on time & lowest time
INTERNAL Lower turnaround time
Fast ground clearance
LEARNING Grow crew skills
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Find a strategic partner with
significant hunk of cash.
Corporate debt restructuring.
Payment of salaries to employees.
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In talks with two foreign carriers, International Airlines
Group (IAG)- the owner of British Airways and Iberia, for apotential rescue package.
Etihad, the UAE-based airline, is also keen to have
discussed a tie-up.
Employees are on strike.At present Kingfisher is under lockout.
License has been suspended by DGCA.
Share price dropped by 4.8% after suspension of license.
DGCA has asked to submit revival plan.
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www.flykingfisher.com
en.wikipedia.org/wiki/Kingfisher_Airlines
timesofindia.indiatimes.com
articles.economictimes.indiatimes.com
www.moneycontrol.com
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