JOSHI COLLEGE OF ARTS & N.Prof. Topic Names Introduction to research Page No 5 . 63 79 Submitted to: .G. Nhavkar Research project on the topic of: Loss faced by Kingfisher airlines Index Sr.VIDYA PRASARAK MANDAL’S K.No BEDEKAR COLLEGE OF COMMERCE Sr. Names 1 Aishwarya Naresh 2 Preeti Dhotre R.No.

3. Introduction to the company Past scenario Recent scenario Conclusion Bibliography Webliography 6 8 12 20 21 21 Acknowledgement We are very grateful to our institution for encouraging us and making us understand the value of making project on a bank. 7. . 5. 6. We get wide information about the subject and especially about the respective topic that has been selected. 4.2.

interpretation. or develop new theories. Approaches to research depend on epistemologies. which vary considerably both within and between humanities and sciences. to establish novel facts. Scientific research is a widely used criterion for judging the standing of an academic institution. It makes practical applications possible. Scientific research relies on the application of the scientific method. with an open mind. Thus I appreciate the cumulative affords of all mentioned above and also my friends in preparing this project file and contributing their valuable time to make it a successful one. including many companies. but some argue that such is an inaccurate assessment of the institution. such as business schools. discovery. or the research and development of methods and systems for the advancement of human knowledge. a harnessing of curiosity. prove new ideas. . solve new or existing problems. by charitable organizations and by private groups.Our special thanks to PROF. Further we also thanks to our principal & coordinator for supporting us to carry out this activity with great interest. Scientific research is funded by public authorities.Nhavkar for her kind cooperation and proper guidance and valuable contribution. Introduction to research Research can be defined as the search for knowledge. or as any systematic investigation. Scientific research can be subdivided into different classifications according to their academic and application disciplines. The primary purposes of basic research (as opposed to applied research) are documentation. This research provides scientific information and theories for the explanation of the nature and the properties of the world.

Mumbai and Registered Office in UB City. An example of research in the humanities is historical research. more relativist epistemology. giving it the highest market share among airlines in India. Introduction to the company Kingfisher Airlines is an airline group based in India. The airline has been facing financial issues for many years. which Vijay Mallya also owns. History Kingfisher Airlines was established in 2003. also seen as 'practice-based research'. Singapore Airlines. Force India. The airline started commercial operations in 9 May 2005 with a fleet of four new Airbus A320-200s operating a flight from Mumbai to Delhi. About the Airlines . Context is always important. can take form when creative works are considered both the research and the object of research itself. Historians use primary sources and other evidence to systematically investigate a topic. and then to write histories in the form of accounts of the past. political. Qatar Airways. It is owned by the Bangalore based United Breweries Group. it has the fifth largest market share currently. and context can be social. Its head office is The Qube in Andheri (East). Until December 2011. Kingfisher Airlines. Kingfisher Airlines is also the sponsor of F1 racing outfit. only above Go Air. Malaysia Airlines. Bangalore. has a 50% stake in lowcost carrier Kingfisher Red. through its parent company United Breweries Group. Kingfisher Airlines is one of the only seven airlines awarded 5-star rating by Skytrax along with Cathay Pacific. historical. Artistic research. Kingfisher Airlines carried more than 1 million passengers. and a different. cultural or ethnic.[11] It started its international operations on 3 September 2008 by connecting Bangalore with London. Kingfisher also owns the Skytrax award for India's best airline of the year 2011. The phrase my research is also used loosely to describe a person's entire collection of information about a particular subject. Asian Airlines. Kingfisher Airlines had the second largest share in India's domestic air travel market. but instead explore the issues and details that surround it. In May 2009.Research in the humanities involves different methods such as for example hermeneutics and semiotics. and Hainan Airlines Kingfisher operates 250 daily flights with regional and longhaul international services. which is embodied in historical method. It is the debatable body of thought which offers an alternative to purely scientific methods in research in its search for knowledge and truth. However due to the severe financial crisis faced by the airline. Humanities scholars usually do not search for the ultimate correct answer to a question.

Industry Transportation Founded 2003 Headquarters Mumbai.496 crore (US$1. CFO (Finance) Hitesh Patel. Voted as India's Favourite Airline. India's only 5 Star airline. Brand Leadership Award. Asia and Australia region. Rated as Asia Pacific's Top Airline Brand.43 billion) (2010-11)[12] Subsidiaries Kingfisher Xpress Website flykingfisher. CMD Sanjay Aggarwal. King Club has won Top Honours at the 21st Annual Freddie Awards in the Japan. CEO A. Best Cabin Crew – Central Asia. Vijay Mallya. . rated by Skytrax and 6th airline in the world. Raghunathan. EVP (Operations & Engineering) Services Airline catering & foodservice. Economic Times Avaya Award 2006 for Excellence in Customer Responsiveness. ○ Kingfisher RED named Best Low Cost Airline in India / Central Asia. • • • • • • • • NDTV Profit Business Leadership Award for Aviation. Pacific. Europe Key people • • • • Dr. Rated India's Second Buzziest Brand 2008 by The Brand Reporter. ○ King Club has won the Freddie Awards 2008 in the following categories:  Best Bonus Promotion  Best Customer Service  Best Member Communications (First Runner-up)  Best Award Redemption (First Runner-up)  Best Elite Level (Second Runner-up)  Best Website (Second Runner-up)  Program of the Year (Second Runner-up) • Kingfisher Airlines has received three global awards at the Skytrax World Airline Awards 2010 ○ Named Best Airline In India / Central Asia. aircraft ground handling and passenger transport Revenue 6. Maharashtra Area served Asia. Ranked amongst India's Top Service Brands of 2008 by Pitch Awards and achievements • Kingfisher Airlines frequent flyer programme.

Rated amongst India's 25 Innovative Companies by Plan man Media in 2006. Kingfisher Airlines has completed restructuring 8. Best New Domestic Airline for Excellent Services and Cuisine by Pacific Area Travel Writers Association (PATWA). Buzziest Brands of 2005 by agencyfaqs and The Brand Reporter. Service Excellence 2005-2006 for a New Airline by Skytrax.76 billion) debt.000 crore (US$1. helping the airline save 500 crore (US$110 million) crore every year on interest cost. The Best Airline" and "India's Favourite Carrier' in a Survey conducted by IMB for The Times Of India.400 crore (US$308 million) debt which will be converted into preference shares. Ranked Third in the survey on India's Most Successful Brand launch of 2005 under the Brand Derby Survey conducted by Business Standard. Best New Airline of the Year Award for 2005 by Centre for Asia Pacific Aviation (CAPA) Award in the Asia-Pacific and Middle East region. 2010. has approved a Debt Recast Package (DRP) with lending banks. Listed in the top 100 most trusted brand in The Brand Trust Report. 1 Airline in customer satisfaction by Business World. Rated amongst India's most respected companies by Business World.1 million) from lenders into share capital. Conversion of debt of up to 1. Airline's average interest rate is now down to 11%. Past scenario of Kingfisher airlines Debt Recast In Nov 2010. Rated amongst the top ten in the Best Television Commercial Jingles by NDTV.355 crore (US$298. Rated amongst the Top Ten Internet Advertisers by Yahoo.• • • • • • • • • • • • India's No. with all 18 lenders agreeing to cut interest rates and convert part of loans to equity. Besides the 1. Kingfisher Airlines Ltd has informed BSE that the Board of Directors of the Company at its meeting held on November 25. . Shares will be converted into ordinary equity at the price at which the GDRs are sold to investors. following a one-time relaxation in restructuring guidelines sanctioned by the Reserve Bank of India. The salient features of the DRP include: 1. Lenders have converted 650 crore (US$143 million) debt into preference shares which will be converted into equity when the airline lists on the Luxembourg Stock Exchange by selling global depositary receipts (GDR). another 800 crore (US$176 million) debt has been converted into redeemable shares for 12 years. Consortium of banks was represented by SBI Capital Markets.

On July 6.000 and spends 58 crore (US$12. 2011. Kingfisher Finevest Ltd held 63. the airlines participation to one world has been put on hold. At the same time. Payment crisis Delayed salary Kingfisher Airline has staff strength of 6.75% of total outstanding shares) has pledged its entire holding to the lenders. Reportedly the Brand has been valued and loan raised worth triple the carrier’s market value.598.555 shares (representing 40. According to the first quarter financial results.1% of total outstanding shares) in the airline and has pledged all the shares to lenders. Kingfisher Airlines. Conversion of debt of up to 648 crore (US$142. Recast pledge Kingfisher Airlines has pledged its brand as collateral with its lender consortium for 4.2. which has increased from 163. it has 173.21 million) under the employees cost head. . 3.100 crore (US$902 million). Kingfisher Airlines delayed salaries of its employees in August 2011. United Breweries Holdings Ltd held 199.66 crore (US$38. Reduction in interest rates. Reschedulement of repayment of the balance debt to lenders over 9 years with a moratorium of 2 years. 4. and for four months in succession from October 2011 to January 2012.56 million) from promoters into share capital. 2012. 2012. However second debt recast has been ruled out by Government of India. have pledged their entire stake in the airline with certain of its lenders. Kingfisher would have been the first Indian carrier to join one of the big airline alliances.76 million) on salaries a month. Kingfisher confirmed on the 20th December 2011 that it will join the one world airline alliance on February 10.478. 5. Minister of state for Finance made a statement on 09th Dec 2011. Sanction of additional fund and non-fund based facilities by the lenders.40 crore (US$35. in Nov 2011 was attempting for a second debt recast. However on February 03.95 million) during the same quarter last year. owing to bad financial situation and two days after IATA clearing house suspended Kingfisher airlines. pursuant to requirements prescribed under the Debt Recast Package Kingfisher Airlines' founder companies.570 shares (representing 12. The brand valuation was done by Grant Thorton in 2010. One world alliance stalled On 7 June 2010 Kingfisher became a member elect of the One world airline alliance when it signed a formal membership agreement. United Breweries (Holdings) Ltd and Kingfisher Finevest Ltd.

4 million) towards its dues for December 2011 and part of the arrears. Case was filed in a UK court on Jul 16. High court in an order said that the entire amount ( 245 crore (US$53. DVB: In Jul 2010. Kingfisher had stated that it has paid past (salary) dues to 60% of its employees and that by 31st Jan 12. • Aircraft lease rental dues Since 2008. . 2010 after Kingfisher did not pay for three month lease rental for A320 aircraft it leased from DVB. DVB Aviation Finance Asia Ltd (a lessor from Singapore). and sought repossession of the planes. GE Commercial Aviation Services threatened to repossess 04 leased planes in lieu of default. GECAS had filed a complaint with DGCA saying Kingfisher had defaulted on rentals for four A320 aircraft.In a report to DGCA on 09th Jan 12. Hindustan Petroleum Corporation Limited (HPCL) stopped the fuel (ATF) supplies for about two hours to Kingfisher airlines owing to the non-payment of dues. BPCL: Bharat Petroleum Corporation in 2009 had filed a case against Kingfisher airlines for non-payment of dues. Goel. As on 10th Jan 2012. Protesting at the delays in payment. Kingfisher also defaulted on paying the Tax Deducted at Source from the employee income to the tax department. The Ministry of Finance has given a concession to Kingfisher and instructed them to pay the dues by 31st Mar 2012. sued Kingfisher Airlines for lease rental default. Situation was later resolved. The Karnataka High Court rejected petition by Kingfisher Airlines to restrain GECAS from taking any step to deregister and repossess the 04 aircraft in dispute. Central Board of Excise and Customs (CBEC) announced that CBEC is considering legal action against Kingfisher for not paying service tax.2 million). Kingfisher pilots started making in-flight announcements citing "It is their sense of duty towards the guest that is making them fly despite not being paid salaries for the past two months". Kingfisher Airlines initially denied that it missed the payments. Service Tax On 9 December 2011. payment of December 2011 salary for all its employees will be done. Kingfisher had to return the A320 aircraft to GECAS. Fuel Dues • HPCL: In Jul 2011. • Kingfisher Airlines has grounded 15 out of 66 aircraft in its fleet as it was unable to meet the maintenance and overhaul expenses. As a result.9 million)) had to be paid by Nov 2010 and the airline paid it in installments. In Jan 2009. Kingfisher airlines has had trouble paying their fuel bills. In Jan 2012.K. Kingfisher paid 20 crore (US$4. • GECAS: In Nov 2008. In the past several years. chairman. it has been reported that Kingfisher Airlines has been unable to pay the aircraft lease rentals on time. Kingfisher Airlines has service tax arrears of 60 crore (US$13. S.

As response. In the past Lufthansa Technique & Bharat Petroleum Corporation Limited (BPCL) had also filed winding up petition against Kingfisher Airlines February 2012 crisis During late February.71 million). The cash-strapped airline claimed that the disruptions will continue for four days due to unexpected events including bird strikes which rendered aircraft out of service. Till the end of Dec 2011.457.6 million). (Non-performing asset). Kingfisher's marker share . Kingfisher has been declared NPA by following banks. Ravi Nedungadi. only 22 were known to be operational by February 20. With this. Kingfisher Airlines made one month interest amount to the banks. the arrears were estimated to be 260 crore (US$57. State Bank of India (SBI) on 5th Jan 2012 declared Kingfisher Airlines a NPA (Nonperforming asset).4 million) to the service tax department. • • • • • • • SBI Bank of Baroda PNB IDBI Central bank BOI Corporation Bank In December 2011. If arrears were not paid in time (Dec 2011). Vijay Mallya called on the Chairman of Central Board of Excise and Customs and offered to pay up the dues by 13 Dec 11 Kingfisher bank accounts were unfrozen on 14th Dec 11. By Feb 2012. As on Nov 2011. Dr.2 million) to 280 crore (US$61. Kingfisher's bank accounts were frozen by the Mumbai Service Tax department for non-payment of dues. Due non-payment.6 million). Lenders hence had told Kingfisher Airlines to clear its dues before they can release any more money sought by the Airline. Kingfisher Airlines started to sink into a fresh crisis. Several flights were cancelled and aircraft were grounded.Bank arrears Kingfisher Airlines had not paid some bankers (Lenders) as per the Debt Recast Package (DRP) with lending banks. several Kingfisher's vendors had filed winding up petition with the High Court. On the last working day of the third quarter of financial year 2011-2012. for the second time in two months.78 crore (US$320. Kingfisher Airlines owes 70 crore (US$15. SBI is largest creditor and the leader of the consortium of banks in the DRP (Debt Recast Package) and has an exposure of 1. thus saving the account from turning a non-performing asset. winding up petition of seven creditors was pending before the Bangalore High Court. Indian tax body also stated that Kingfisher Airlines is delinquent. 2012. Kingfisher Airlines would automatically have been treated as NPA. chief financial officer of UB Group however said that the arrears were 180 crore (US$39. The airline shut down most international short-haul operations and also temporarily closed bookings. Out of the 64 aircraft.

Mallya is expected to discuss with lenders a new restructuring package after SBI Caps gives its report on the viability of the airline. it said. . cancelled 38 plane orders from KFA because the airline could not pay for the aircraft.1. has been refused additional loans from its top lender.clearly dropped to 11. but it was unable to post it because of "hardware problems" with its accounting system.1. The CEO of the airlines.444 crore in Q3 Troubled carrier Kingfisher Airlines (KFA) plunged into a severe financial crisis with its net losses having almost doubled to Rs. In January.340 crore a year earlier with steep fall of the rupee coupled with consistently high crude oil prices and rising operational costs. Its losses have run up to over Rs. Its revenue in the third quarter fell 15. saw its shares rising two per cent despite the company reporting widening of the net loss for the quarter ending December 2011. Turboprop maker ATR. the airline said in a statement. The carrier has not been able to pay salaries to its staff and either withdrawn or cancelled orders to cut costs.254 crore in the earlier quarter of 2011. which has seen massive drop in its passenger market share in recent months.444 crore in Q3 from Rs.790 crore while interest charges on its huge debt pile rose to Rs.6. Sanjay Aggarwal was summoned by the Directorate General of Civil Aviation to explain the disruptions of the operations. The Bangalore-based company on Thursday released figures for its fiscal third-quarter on Tuesday. which ends in March.The cancellation of the flights was accompanied by a 13. The company has lost Rs. KFA has incurred substantial losses and its net worth has been eroded. KFA.350 crore from Rs.1. 180 crore in the first nine months of the current fiscal year. 000 crore.2 per cent to Rs.. a 35 per cent rise from a year earlier.342 crore from Rs. the State Bank of India (SBI). The Vijay Mallya-owned carrier. a joint venture of EADS and Finmeccanica. which is scrambling for funds.5% drop in the stocks of the company on 20 February 2012.3%. Recent scenario of Kingfisher airlines Kingfisher Airlines net losses plunge to Rs. Its share price rose two per cent on Thursday and has gained 25 per cent over the past three months on hope of a revival plan and permission for foreign airlines to buy into the firm. The airline never posted a net profit ever since it started operating in 2005.

P. Widening of losses is not a cause of concern. there has to be substantial infusion." Tulsian said. Tulsian. • • • • • This (the dismal financial performance) was expected. Piecemeal capital infusion by Mallya will not do. Now. a stock analyst. a group of ministers had agreed to allow direct import of jet fuel by airlines and after it is cleared by the Cabinet. SBI has an exposure of close to Rs. Kingfisher Airlines Pilots threaten Strike if salaries not paid . and in the last quarter.64. After hectic lobbing by Mallya. The government is also considering allowing foreign airlines to pick up to 49 per cent stake in Indian airlines. On Monday.SBI and other public sector banks such as Punjab National Bank (PNB) have declared KFA loans as non-performing asset." said S. and Mallya is waiting to raise funds through this route. they sold shares at Rs. everyone wants to know what steps he (Mallya) is taking to cut the debt and how he is mobilizing funds to revive KFA. SBI chairman Pratip Chaudhuri had said the bad situation for KFA was over adding that things would improve after any foreign airline picks up stake and import of jet fuel is allowed.20 and booked losses. KFA and other airlines would save on their fuel bills. Banks were allotted KFA shares at Rs. 500 crore while PNB had Rs.1.435 crore exposure to the carrier. "Banks will not be comfortable to lend more unless the promoter brings in more money.

a top federal official said Thursday. Mallya met the DGCA on Wednesday to discuss a recovery plan. Kingfisher stands to gain about 5% in revenues by joining the alliance. "If the Chairman's words are not implemented. Goel told reporters earlier in the day. Kingfisher paid 260 million rupees ($5.419 crore. "We may not be available for flying duties in case our dues are not cleared in time. which is already struggling with rising losses and unpaid bills. the aviation regulator Directorate General of Civil Aviation found in a financial audit. has not only been delaying salaries due to a cash crunch. cash-strapped carrier. a deadline that the private carrier's promoter Vijay Mallya committed to earlier. "Employees are not in tune with the festive mood as non-payment of our salaries has hit us hard. we would be apprehensive about getting our December 20011 salary by January 31." the pilots said in one of the many emails shot off to the CEO Sanjay Aggarwal and EVP (operations and engineering) Hitesh Patel over the past few days. Goel. Weekes after the aviation regulator found that Kingfisher Airlines was cutting corners on safety due to paucity of funds.'s bank accounts for a second time if it doesn't clear its unpaid service taxes by March 31. The airline." the email reads.Indian authorities may freeze Kingfisher Airlines Ltd. causing inconvenience to passengers. month. signaling more trouble for the loss-making.a group of several global airlines . However. which ended 2010-11 with a loss of Rs 1.027 crore and outstanding debt of Rs 6. chairman of the Central Board of Excise and Customs. 2012. as it will get to connect with 800 cities across the world. The carrier has about 550 pilots. and reviewed by ET. In November alone. that the dues for November would be cleared within a couple of days. the employees received their salaries a day later. but has also been advertising for routes that it is not flying on. The threatened strike may also jeopardize Kingfisher's plan to join the One World Alliance . We should get our salary before we can join in the celebrations with the expected fervor and zest.3 million) in service taxes in December and January." an email sent by the pilots. the airline cancelled 175 flights.K." said S. A freeze on bank accounts would come as a fresh blow to the Vijay Mallya-owned airline. "The airline has told us the arrears will be cleared by March. These pilots are not enthused at the prospect of joining the global alliance either.NEW DELHI: More than 200 pilots of the cash-strapped Kingfisher Airlines have threatened to strike work if their salaries for December are not paid by the end of this month. Mallya had promised all employees in an email on January 16. Kingfisher did not reply to an email from ET that sought to ascertain when the management planned to respond to the pilots. but it still owes another 700 million rupees. . Kingfisher Bank Accounts May be Frozen Again MUMBAI -.

42 billion rupees. had frozen 10 of Air India's accounts for non-payment of taxes. shrinking the airline's market value to around $270 million. Mr." Kingfisher said in a statement on Thursday. controlled by liquor baron Vijay Mallya. 2010. The service tax department. has seen planes grounded for safety shortcomings and faced immense investor scrutiny on its plans to revive the airline. recently said Kingfisher hasn't deposited 1. Shares in Kingfisher. . Kingfisher lost 4. India's junior finance minister. Earlier Thursday. costs mount MUMBAI (Reuters) . Debt-laden Kingfisher.44 billion rupees in the fiscal third quarter. Kingfisher. Palanimanickam.Kingfisher Airlines reported a 75 percent wider net loss in the quarter to end-December from a year earlier. a weaker rupee and fierce competition. India's tax authorities froze 11 Kingfisher bank accounts for non-payment of service taxes. Revenue fell 15.S.Banks have refused to lend additional money to the airline until it clears its interest payments. as the ailing carrier continued to feel the pinch of high fuel costs.2 percent to 13. They lifted the freeze after the airline paid a part of its arrears. also in December. Kingfisher is the worst-affected in an Indian aviation industry hit by high fuel costs and interest rates. named after India's most famous beer owned by its parent company. He added that the state-run airline is paying 250 million rupees every month and will likely pay the rest once it gets further financial assistance from the federal government. is around a quarterowned by banks and its top lender State Bank of India has refused to lend more without a fresh injection of equity. The Indian government has already put 20 billion rupees into the carrier and has assured that it will give another 12 billion rupees in this financial year through March. which has never made a profit. owes 3 billion rupees to the government. "Steep depreciation of the Indian rupee coupled with consistently high crude oil prices has led to a challenging quarter for the Indian aviation industry. The freeze was lifted a day later after the carrier paid 80 million rupees. have dropped almost 60 percent since the beginning of last year. Kingfisher Airlines Q3 loss widens. and at least two airplane leasing companies have warned they will repossess some aircraft. Goel said national carrier Air India Ltd.54 billion rupees in income tax deducted from its employees' salaries since April 1. In December.8 percent more than a loss of 2. 74. S.54 billion rupees a year previously.

Furthermore. the carrier attempted to tide over some of the problems mentioned above. we here at Bangalore Aviation wanted to take a look at some potential issues that haven’t been brought up regarding Kingfisher’s long term viability. Going back more than three months. Kingfisher has been hit with press reports claiming 12 of its aircraft were grounded. reports emerged claiming that close to half of Kingfisher’s fleet was grounded. it is helpful to consider the fallout from Kingfisher’s actions over the past 10 days. In an email titled “You Matter” sent by Kingfisher to its various frequent flyers. Kingfisher’s troubles are not new Despite all of the negative press given to Kingfisher over the past week or so. their increased deployment of low fares carrier (LFC) brand Kingfisher Red diluted Kingfisher’s once supreme service. while India is expected to soon allow foreign carrier to own up to 49 percent in local airlines. seen easing fuel costs for troubled carriers. From there. and slammed by travelers over their decision to temporarily cancel 31 flights. (rightly) claiming that many of the media reports were overblown: . and Kingfisher clashed with the DCGA over their “re-configurations. In light of reports that Kingfisher is close to a US $370 million equity deal with a large private investor and banking consortium. the overarching problems facing Kingfisher are not recent. which said last month it was in talks with Hong Kong-based distressed debt firm SC Lowy Financial for a possible investment. A government panel this month approved a plan to allow airlines to directly import jet fuel.” On a longer term note. forced (in an eerily Air India-esque scenario) to cancel flights due to nonpayment of fuel bills. the total number of cancellations quickly ballooned to 50. Kingfisher has seen its service reputation slowly slip over the past year as IFE troubles and the aforementioned maintenance issues have brought up questions about Kingfisher’s reliability. as did the usage of economy-class only ATRs. Will Kingfisher Airlines survive in the long run? In the wake of Kingfisher’s unprecedented cancellations last week. this month put on hold plans to join the global one world alliance.The airline.

but rather what impression they give to the general public. to this end Kingfisher Airlines has initiated reconfiguration of its aircraft. and then Dr. these aircraft will be pressed back into service immediately. Once the reconfiguration is complete.As announced earlier. for Kingfisher. In Qantas’ case. So what would their reaction have been when on the 7th of November. As with the Qantas fleet grounding in late October. but the carrier’s business model might have been better served by more spaced out and longer term cancellations. it is not so much whether the press reports are right. the hoped-for gain was improved employee contracts. a point we frequently made was that Kingfisher’s business model was actively shifting towards courting high-yield business travelers. Cancellations may make short term sense. Clearly the report about our flights being cancelled owing to the supposed exodus of pilots appears to be falsified. And after being subjected to the ignominy of being forced to re-book their flights. Again. does not bode well. they were informed that 30 flights were cancelled effective the day after? The outpouring of angry tweets from travelers gives us a hint. Kingfisher might have traded a short term gain for a longer term problem. Ergo and in line with maximizing productivity we have rationalized our network. public perception rules. we have decided to focus on the full-service market. and let's face it. Kingfisher's future What matters for Kingfisher is future public perception. Mallya's criticism of the media while announcing the Q2 results. In absence of engagement the media will feed the snake of speculation. who happily jacked up ticket prices in the . resulting in a temporary discontinuation of approximately 50 flights out of our current operating schedule of approximately 350 departures per day. When we analyzed Kingfisher’s decision to exit the low cost business back in October. but their longer term effects could be detrimental especially in the eyes of the general public. While Mallya’s gamble appears to have paid off with the new equity investment. This exercise will require few of our aircraft to be out of service for the next few weeks. these displaced passengers were then forced to pay exorbitant fares on the other Indian carriers. the Kingfisher brand is very driven by public perception. what will be the future effect of these cancellations on Kingfisher’s actual business? Perhaps the drastic and immediate cancellations were the only way to communicate the dire nature of their finances (which their Q2 results indicated was overblown). For Kingfisher. The airline's lack of engagement with the media. reliability and on-time performance are by far the most important factors in purchase decisions. an equity re-structuring. For these men and women.

Cathay Pacific. Options being discussed include 24%. many of the displaced travelers will not be choosing Kingfisher for future business travel needs. LAN Chile and Qantas within its ranks. 26% 49% or 51%. On first glance. However the unintended result of this recent saga is that it has opened the world’s eyes to Kingfisher’s troubles. but international passengers tend to have an idealized view of Kingfisher. No longer. Indian travelers had known for a while that Kingfisher’s service is not all that it’s cut out to be. Unfortunately. All of this begs the question. The percentage cap has not yet been decided. Finnair. While one world cannot easily abandon Kingfisher due to their need for an Indian partner. Chances are. Recent reports in papers such as The Wall Street Journal.face of overwhelming demand for limited capacity. A one world consortium has been often mentioned as a potential investor in Kingfisher. will they be willing to invest in a business that has managed to erode almost all of its net worth and alienate a significant portion of it clientele? . or further research. the rather sensational and mostly over-blown headlines in the Indian media which has resulted in significant damage to Kingfisher’s reputation on the global stage. The true dichotomy is that these very business travelers were the ones who were supposed to drive Kingfisher’s financial recovery. Kingfisher’s recent actions call into question the viability of their future business model. have called attention to Kingfisher’s woes and their readers then discovered. Kingfisher and the one world alliance? In the first quarter of 2012. American Airlines. what is one world’s opinion of Kingfisher’s actions? The Indian government is given indications that it will approve foreign direct investment by foreign carriers in to Indian one. with such illustrious carriers as British Airways. with its 5-Star rating from Skytrax would appear to fit in just fine. Kingfisher. Kingfisher is scheduled to enter the one world alliance of airlines which prides itself on being the world’s “premium” alliance.

we have come to a conclusion that Kingfisher Airlines is one of the largest and most widespread airlines of the country providing its services not only in India as well as outside India also. . It has alliance with many other airlines in this sector.Conclusion After doing a study of this project representing on Kingfisher Airlines. Kingfisher Airlines offers world class services to the customer a t a n o m i n a l r a t e . To sum up I would like to say that Kingfisher Airlines is serving its customer in an appreciated way and going to be in the lists of best services providers in the coming years. T h e n a t i o n a l c a r r i e r t a k e s i m m e n s e p r i d e i n h a v i n g successfully played a pivotal role in making various facets of India popular with the people of the world and acting as the country’s cultural ambassador. The airline uses the services of one of the advanced plans been operated in the world.

com/article/SB1000142405297020371110457719853082700 5896.Bibliography ✔ Research methods in business Sybms 4th sem: sheth publications sunita pawar ✔ Conclusion: group members Webliography ✔ ✔ ✔ ✔ http://indiatoday.html .

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