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Kingfisher

A BRIEF INTRO
Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based United Breweries Group. 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.

It started its international operations on 3 September 2008 by connecting Bengaluru with London. Kingfisher's head office is located in The Qube in Andheri (East), Mumbai and its registered office is located in UB City, Bangalore.
VISION The Kingfisher Airlines family will consistently deliver a safe, value based and enjoyable travel experience to all our guests.

A FEW STATS
Hubs Secondary hubs Bengaluru International Airport (Bangalore) Chhatrapati Shivaji International Airport (Mumbai) Indira Gandhi International Airport (Delhi) Chennai International Airport Pune International Airport King Club Kingfisher Lounge Kingfisher Xpress Focus cities Frequent-flyer program Airport lounge Subsidiaries

Fleet size
Destinations Company slogan Parent company Headquarters

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25 Fly The Good Times United Breweries Group The Qube, Mumbai, Maharashtra Vijay Mallya (CMD) Sanjay Aggarwal (CEO) Hitesh Patel (EVP) 58.15 billion (US$1.06 billion) (2012) -23.28 billion (US$-0.42 billion) (2012) 5,696 (2012)

Key people

Revenue Net income Employees

MARKET SHARE

CURRENT POSITION

FLAWS IN THE BUSINESS MODEL

WHAT WENT WRONG?


Frankly, it was a hassle-free decision for Vijay Mallya to completely suspend services on his budget carrier Kingfisher Red, says one of his close confidantes. Formerly known as Air Deccan, Mallya had bought 26% stake in this airline from his friend-cum-neighbour Captain Gopinath in 2007 at Rs 550 crore and later picked up additional 20% stake at around Rs 155 a share.
The intention of acquiring Deccan was only aimed at giving Kingfisher Airlines (KFA) an access to international routes quickly. Government rules gave overseas flight rights only to airlines with a minimum of five years experience, and KFA was behind in the queue after Deccan. Mallya never believed in low fare business model even when he bought the airline, says an official with the airline.

The dismal performance of Red all these years made Mallya realise that the high profile classy
image of his very own KFA is taking a hit due to him simultaneously running a low cost service. Meanwhile, discontinuing Kingfisher Red may have come as a surprise to a few at a time when low fare carriers like Jet Lite, Indigo and Spice Jet are doing better then their full service peers in terms of load factors--- but the news has not sprung any surprise to analysts and Kingfisher Airlines (KFA) officials who had guessed something of this sort was on its way. KFA was an airline for people with a taste for luxury. While its astronomical fares pushed it out of the bounds of the country's biggest consumer section - the middle class - the airline's in-flight service standards were set too high to maintain for a long time . Fliers were treated to expensive wine, quality food and best entertainment facilities even on domestic, short distance flights. The airline staff, till the time they got their salaries, were among the best paid in the country.

Air India Vs Kingfisher


Air India has a strong brand name though Kingfisher is not lagging behind with Mallya promoting F1 racing and also owning RCB in IPL. Air India has the backing of the government and makes use of existing infrastructure whereas Kingfisher has developed its own infrastructure Air India has a long history of poor services whereas kingfisher is known for its excellent services. Air India has poor record in terms of on time flights whereas Kingfisher has one of the best records in terms of on time flights.

Opinions
The Times of India said the government shouldnt bail out Kingfisher, not only because it is a private airline, but also because bailouts are intrinsically damaging to business morality. The Indian Express in its editorial No bailout said theres no reason why the government should bail out private airlines. The question, in fact, should not even have been raised, it said. The paper noted that market discipline, and the imposition of normal business rules, was the need of the hour.

The Hindustan Times agreed that the government should let Mr. Mallya deal with the airline crisis on his own. The government would be well advised to let Vijay Mallya leverage the enormous clout of his liquor business to ride out the storm his airline seems to have flown into, it said. India has other bigger concerns that could use the governments money. Lets say infrastructure and hospitals out of the other thousand things the money could be used for.