a case study on kingfisher

7/29/2019 A Case Study on Kingfisher

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BY,

SANANDA SIKDAR


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Industry: TransportationFounded: 2003Operation started: 9 May 2005Headquarters: Mumbai, MaharashtraKey People: Dr. Vijay Mallya, CMD

Sanjay Aggarwal, CFOA. Raghunathan, CFO (Finance)Hitesh Patel, EVP (Operations &

Engineering)Rajesh Verma, EVP (In-Flight,Customer Service & Cargo)


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Area Served: Asia, Europe

Services: Airline catering & foodservices,

aircraft ground handling & passenger

transport

Revenue: Rs. 6, 496 Crore ( US$ 1.45 billion)

(2010-11)

Subsidiaries: Kingfisher AirlinesWebsites: www.flykingfisher.com


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The Kingfisher Airlines family will consistently deliver a

safe, value-based and enjoyable travel experience to all

our guests.

VALUES

Safety

ServicesHappinessTeamworkAccountability


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Strengths

First airline with full new fleet of aircraft

Quality hospitality provided to customers

Route rationalization Already have training academy

Weaknesses

Service delivery to metros and other big cities

Yet not in profit High ticket pricing

High attrition in top brass


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Opportunities Under penetrated domestic market International market Untapped air cargo market Expanding tourism industry Threats Existing Operators Infrastructure issue Fuel price hike Economic slowdown


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1. No Network Planning- A me too approach kingfisher tried to copythe network of arch rivals Jet Airways. Shifting its internationaloperations base from Bangalore where it was the sole Indiancarrier offering wide body services to Mumbai the home base ofboth Jet Airways and Air India.

2. Economic downturn

3. Sky rocketing of Aircraft Fuel Price.

4. Inability to hike fare due to competition

5. He had diversified his business in various field but he has notcoined any CEO.

6. He was unable to read the mind of Indian customer(KFA was notfor common man).


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It started in the month of November, Kingfisher airlines couldnot pay- pilots, stewardesses, janitors, fuel prices

It has a total debt of Rs. 7000 cr. even after about Rs. 1400 cr.was kind of written off last year.

The airline made an operational loss of Rs 1027 crore lossesover the last year operation.

BPCL (Bangalore Petro Chemical Ltd) has even filed a courtcase for recovery on unpaid dues of over 250 cr.

Their cheque of Rs. 151 crores to clear the dues recentlybounced further worsening the situation.


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Bangalore and the Hyderabad airports have decided to askKingfisher for landing charges before they allow the KF planesto land.

It has absolutely no assets that it can sell or mortgage.

The bankers converted, approximately Rs 750 cr. to equity. Inlieu of the waive off, the banks got a 23% stake in the airline.

Hence the banks lost about 300 cr. in this transaction.

At the time of restructuring, Kingfishers total debt was Rs8,414 cr.


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Kingfisher Airlines, is in talks with two foreign

carriers, including International Airlines Group(IAG)- the owner of British Airways and Iberia,for a potential rescue package.

There is huge possibility that the governmentwould bail out the airlines as kingfisher

airlines constitute around 16% of the totalIndian fleet and holds 18% domesticpassenger shares.


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THANK YOU..

a case study on kingfisher

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