Mohima Chakravorty

Roll No. 25
 HISTORY
• Kingfisher Airlines was first established in 2003 but it
started in 2005.
• Kingfisher Head Office was located in Ville Parle, Mumbai
but its registered office was in UB City, Bangalore.
• Kingfisher was certified as one of the six Airlines in the
world to have rated 5 stars from Skytrax.
• Since the year of its commencement till 2012, the airline
losses amounted over Rs. 7,000 crores due to strike and
other problems.
• Domestic Destination – 63(2011)
• International Destination – 8(2011)
 PROBLEMS
• Managing the transition : Keeping all stakeholders engaged.
• Cut-throat fares, high fuel prices, and high taxes.
• Air India was responsible for the cut-throat fares that started
the price competition which forced all the airlines to lower
prices.
• The domestic airlines faced severe losses day by day of
Rs.1,250 crores.
• Strike Problem.
• Cancellation of Flights.
• Lack of Management.
• Dissatisfaction of Loyal Customers.
 SOME ETHICAL ISSUES
• The lack of delegation is the prime and primary reason. The Kingfisher Airline has been crash
landing as of a trouble with the random changes made in the direction and strategy as well as
the absenteeism of Managing Director or CEO for a long time.
• The in-flight interruption is another main ethical issue. Most of the passengers in domestic
flights are not looking for in-flight entertainment. The in-flight entertainment can become
usable only for the passengers on international flights.
• Unfair fares of flights is also a major ethical issue. KFA offered truly a luxury and premium
service it has been pride in calling itself a budget airline. Their fares were thus higher than the
Low-cost-carriers (LCCs).
• Vijay Mallya out of this all, he forgot that he was doing a business where the taxes are
discretionary and costs of fuel is variable. Also this included advertising costs tie-ups.
Incorporating the contract with Deepika Padukone, that also resulted in highly expensive
lounges, expensive frills,tele-booking centres, government cuisines and airports.
• Kingfisher Airlines had never paid tax from the starting of its business. The unwanted throwing
of parties and spending too much on Kingfisher Calander. Also, the funds of Kingfisher
Airlines were diverted to IPL(ROYAL CHALLENGERS BANGLORE). These expenses and
diverting of the funds, result in not paying off the bank loans, taxes and employees were not
given salary for nearly 15 months.
• Mallya had sold 49% of SHARES ( F1 car) to Subrato Roya in order to keep Kingfisher going.
But it failed to save Kingfisher Airlines.
 CONCLUSION
• Vijay Mallya never took things personally. Probably this is a reason why
Kingfisher Airlines was a major disaster.
• At present, KFA is officially out of funds and unofficially bankrupt.
• The only wrong thing done by this airlines was that they allowed
themselves to entertain several unethical issues. Being a major and popular
company, the passengers did not deserve this kind of disloyalty.
• Facing such losses, on the verge of seizing the company’s license, Vijay
Mallya stated his solution saying government should reduce the prices of
fuel and other taxes.
•  Due to the huge amount of LOAN particularly 9000 crore(tax included),
Vijay Mallya on 2nd March 2016, flew away from DELHI TO LONDON on
Jet Airways. Indian govt. made him a wilful defaulter(the person who
intentionally do run away without clearing his debts).
“ WITH GREAT POWER COMES GREAT
RESPONSIBILTY.”