Kingfisher Airlines

.The king of good times

AVIATION INDUSTRY
One of the fastest growing industries in the world. India has the private airlines as its key players and 75% of the market share is owned by the private sector.

Problems that the Indian aviation industry is facing are:

High rising prices of the ATF. The cost of labour is rising in our country. Shortage of skilled labour. Infrastructure constraints.

Kingfisher Airlines
REGISTERED OFFICE :

UB Tower, Level 12, UB City, 24, Vittal Mallya Road, Bangalore 560 001

Kingfisher Airlines
BOARD OF DIRECTORS

Dr. Vijay Mallya, Chairman & CEO Capt. G. R. Gopinath, Vice Chairman Capt. K.J. Samuel Mr. A.K. Ravi Nedungadi Mr. Vijay Amritraj Mr. Anil Kumar Ganguly Mr. Piyush G. Mankad Dr. Naresh Trehan Diwan Arun Nanda Mr. Ghyanendra Nath Bajpai

Kingfisher Airlines

COMPANY SECRETARY Mr. N. Srivatsa

CHIEF FINANCIAL OFFICER Mr. A. Raghunathan

Kingfisher Airlines
Kingfisher Airline is a private airline based in Bangalore, India. The airline is owned by Vijay Mallya of United Beverages Group. Kingfisher Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts. The airline currently operates on domestic routes. The destinations covered by Kingfisher Airlines are Bangalore, Mumbai, Delhi, Chennai, Hyderabad, Ahmedabad, etc

Kingfisher Airlines
In a short span of time Kingfisher Airline has carved a niche for itself. The airline offers several unique services to its customers. These include: personal valet at the airport to assist in baggage handling and boarding, accompanied with refreshments and music at the airport, audio and video on-demand, with extrawide personalized screens in the aircraft and three-course gourmet cuisine.

Kingfisher Airlines
Kingfisher Airlines starting operating with a brand new fleet of 8 Airbus A320 aircraft, 3 Airbus A319-100 aircraft and 4 ATR-72 aircraft.

It was the first airline in India to operate with all new aircrafts. Kingfisher Airlines is also the first Indian airline to order the Airbus A380.
UB holdings Ltd, has acquired 46% stake in the budget airline Air Deccan

MARKET SHARE
Current Scenario
Kingfisher Airlines -> 20.8% Jet Airways -> 19 % Indian + Air India -> 18.3% Indigo -> 15.4 % Spice Jet -> 12.9% Others -> 13.6%

Kingfisher Airlines
KFA at a Glance
Total connections to 70 cities including 7 international destinations flying over 350 flights a day. Over 45 million guests flown since inception Current Fleet size of 67 aircraft (39 Airbus and 28 ATRs). Market Share of 20.8% Recognized as one of Indias Most Respected Companies in 2006 and 2007 Business World

Indias only 5 star airline by independent agency Skytrax

Kingfisher Airlines
KFA at a Glance
Domestic operations have achieved an EBITDA profit of Rs 15 Cr in the 9 months ended Dec 09 vs a loss of Rs 1058 cr in the same period last year Domestic revenue up 17% Guests flown increased by 5% despite 3% reduction in capacity

Capacity deployed decreased by 1.06 lac seats.Guests flown increased by 1.14 lacs

Highest ever seat factor of 80.2% achieved during December 2009

Kingfisher Airlines

Kingfisher Airlines

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Kingfisher Airlines
Expansion Plans : Kingfisher Airlines, Indias only Five Star Airline rated by Skytrax, has been granted traffic rights to operate on seven new international routes. The new international routes for which traffic rights have been granted are:
1New Delhi London New Delhi 2New Delhi Hong Kong New Delhi 3New Delhi Bangkok New Delhi 4New Delhi Dubai New Delhi 5Mumbai Colombo- Mumbai 6Mumbai Bangkok- Mumbai 7Mumbai Dubai Mumbai

Kingfisher Airlines
Expansion Plans :

Kingfisher Airlines will soon be commencing flights from New Delhi to London Heathrow along with six other new international routes. The launch of these new flights will further enhance the international route network of Kingfisher Airlines. The addition of these new services will mean that we will now be able to further leverage the unparalleled domestic route network of Kingfisher Airlines to maximize yields. With their unique domain expertise in aviation in general and in network planning in particular, Seabury, Kingfisher Airlines globally renowned advisors will ensure excellent connectivity for all these new services

Kingfisher Airlines
Expansion Plans :
Aircraft ATR 42-500 ATR 72-500 Airbus A319-100 Airbus A320-200 Kingfisher Airlines Fleet Passengers In Service Orders Options Notes (Kingfisher First/Kingfisher Class) 3 48 (0/48) Both aircraft dry leased. 17 66 (0/66) 38 20 15 new aircraft to be dry leased 8 72 (0/72) 3 144 (0/144) All 3 dry leased. 10 134 (20/114) 9 dry leased 3 67 174 (0/174) Deliveries through 2010-2012. 10 180 (0/180) 6 151 (32/119) 2 dry leased. 2 199 (0/199) 5 15 217 (30/187) Deliveries through 2010-2012. 5 TBD Deliveries starting 2014. 5 5 TBD Deliveries starting 2014. 67 130 25

Airbus A321-200 Airbus A330-200 Airbus A350-800 Airbus A380-800 Total

Kingfisher Airlines
Financial Highlights
Total Operating Revenues of Rs 3776 Cr (-9% over YTD FY 09) (Domestic Revenues of Rs. 3412 Cr vs. Rs. 4132 Cr in YTD FY 09) EBITDAR profit of Rs 485 Crvs. loss of Rs 442 Cr for YTD FY 09 (Domestic EBITDAR of Rs. 679 Cr vs. loss of Rs.246 Cr in FY 09) improvement of Rs 925 Cr EBITDA loss of Rs. 355Crvs. loss of Rs. 1342 Cr in YTD FY09 (Domestic EBITDA profit of Rs.15 Cr vs. loss of Rs 1058 Cr in FY 09) improvement of Rs 1073 Cr Revenue passengers carried 8.22 Mn vs. 8.11 Mn (up 1.4% over YTD FY09)

Kingfisher Airlines
Company P&L
Particulars
INCOME Operating Revenue Non Operating Revenues Total Revenues EXPENDITURE Employee Remuneration & Benefits Aircraft Fuel Expenses Other Operating Expenses EBITDAR Aircraft Lease Rentals Total Operating Expenditure EBITDA Depreciation Interest Total Expe nditure Loss before exceptional items and Tax Exceptional Item Provision for taxation PROFIT / (LOSS) AFTER TAXATION Apr 09 -Dec 09 (Rs. Cr) 3,776 43 3,819 Apr 08 -Dec 08 Variance % (Rs. Cr) 4,168 16 4,184 -9% 169% -9%

531 1,319 1,484 485 840 4,175 -355 156 818 5,149 1329 300 -554 -1,075

620 2,267 1,739 -442 900 5,526 -1,342 125 529 6,180 1996 -459 -482 -1,055

-14% -42% -15%

-7% -25%

25% 55% -17% -33%

2%

Kingfisher Airlines
Projected P& L for next 5 years
Particulars
INCOME Operating Revenue Non Operating Revenues Total Revenues EXPENDITURE Employee Remuneration & Benefits Aircraft Fuel Expenses Other Operating Expenses EBITDAR Aircraft Lease Rentals EBITDA Depreciation Interest Loss before exceptional items and Tax Exceptional Item Provision for taxation PROFIT / (LOSS) AFTER TAXATION Apr 10 -Dec 10 Apr 11 -Dec 11 Apr 12 -Dec 12 Apr 13 -Dec 13 Apr 14 -Dec 14 (Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs. Cr) 5098 58 5156 6372 73 6187 7965 91 8056 10753 113 10866 14624 136 14760

637 1583 1781 1155 1260 -105 234 1068 -1407 200 -550 -1057

701 1899 2137 1450 1410 40 276 1218 -1455 240 -660 -1035

785 2944 2564 1762 1685 77 414 1068 -1405 250 -625 -1030

942 4563 2949 2412 2060 352 621 1043 -1312 260 -550 -1022

1130 7301 3539 2789 2410 379 932 1018 -1570 275 -850 -995

Kingfisher Airlines
KFA: Debt Profile
Debt Profile INR Crores As of Dec-09 W orking Capital Short Term Loans Long Term Loans PDP Loans Aircraft lease finance Other Debt including Group T otal Debt 907 2,099 2,720 363 802 523 7414

Kingfisher Airlines
Key Initiatives planned to further enhance performance
Further Initiatives to generate higher revenues & improve consumer connect New frequent flyer program launched with unique features like non-air rewards, family club etc. New Internet booking engine driving greater consumer traffic towards online bookings Incremental passenger connections generated through launch of One Stop Connectcampaign

Kingfisher Airlines
Key Initiatives planned to further enhance performance
Stringent actions planned and undertaken to keep costs under control Reduced lease costs by >25% (over Q3 FY09) through redelivery of non-operational aircrafts Reduced personnel costs by >20% (over Q3 FY09) through replacing high cost expects Planned to reduce Engineering costs by 10-15% by induction of new key vendor Successfully implemented Fuel Monitoring System for targeted reduction in fuel consumption Exercised stringent controls across over heads to reduce costs e.g. Optimize office & warehouse spaces across all locations, planned reduction of communication costs etc.

Kingfisher Airlines
S.W.O.T. ANALYSIS
STRENGTHS
Strong brand value and reputation in the minds of customers. Quality of the service. Route rationalization. First airline to have a new fleet of airbuses. Quality and continuous innovation.

WEAKNESSES
Still a not in profit organization. High ticket pricing. Facing a tough competition from competitors.

Kingfisher Airlines
S.W.O.T. ANALYSIS
OPPORTUNITIES
The expanding tourism industry. The non penetrated domestic market. International market. Untapped air cargo market.

THREATS
Competitors Infrastructure issues. Fuel price hike. Economic slowdown.

Thank You

Any Questions??

By

-Palak Thareja