INTRODUCTION

TO KINGFISHER
ACQUISTION OF
DECCAN AIRLINES

BY – MUKUL SHARMA
Background of Kingfisher Airlines

Fleet Luxury Service

Financial
Expansion The airline
Struggles
Kingfisher offered top-
Despite its initial
Airlines was notch service
success, the airline
known for its and a luxurious
faced financial
luxurious and flying
challenges that led
modern fleet, experience to its
to its downfall.
which passengers.
contributed to
its popularity.
 Background of Deccan Airlines

Budget Airline Expansion Strategy Challenges Faced

Deccan Airlines The airline was Deccan also
was a prominent focused on rapid encountered
budget airline expansion and operational and
capturing niche financial
known for markets in the difficulties during
affordable and aviation sector. its operational
accessible air years.
travel.
Reasons for
acquisition
of DECCAN • Market Dominance
Kingfisher aimed to strengthen its position in the
market through the acquisition of Deccan.

• Route Network Expansion

The acquisition allowed Kingfisher to expand its
route network and capture new customer
segments.

• Strategic Advantage
Acquiring Deccan Airlines provided strategic
benefits and competitive advantages to
Kingfisher.
 Benefits of the acquisition for Kingfisher
Business Growth Operational Efficiency Enhanced Success
The acquisition led to It contributed to the
Kingfisher gained enhanced success and
significant business operational efficiencies
expansion and market and improved its sustainable growth of
overall performance Kingfisher Airlines.
growth for post-acquisition.
Kingfisher.
Impact of the acquisition on the Indian aviation industry

3 35
Market Share Growth New Routes Added

Kingfisher's acquisition Over 35 new routes were

contributed to a 3% growth added to the combined
in the overall market share network, enhancing
of the Indian aviation connectivity across the
industry. country.
Challenges faced during the acquisition
Integration Complexity
Integrating operations, systems, and teams posed significant challenges during
the acquisition process.
Employee Morale
Managing and aligning employee morale and culture integration was a key
obstacle for Kingfisher.
Regulatory Hurdles
Adapting to varied regulatory frameworks and policies added complexities to the
acquisition.
 WHY IT COLLAPSED?
After Kingfisher Airlines bought Air Deccan, they had some big problems:

1. Money Troubles: Kingfisher already owed a lot of money. Buying Air Deccan made it worse
because it cost a lot.

2. Hard to Work Together: Kingfisher and Air Deccan had different ways of doing things. It was
tough to make them work together smoothly.

3. Rules and Approvals: It took a long time to get permission from the government for the deal.
This caused delays and made things harder.

4. Lots of Competition: Other airlines were also fighting for customers. Kingfisher had a tough
time keeping up.

5. Too Much Debt: With all the money they owed, Kingfisher couldn't pay bills and struggled to
keep going.

6. Problems with Flights: Combining the two airlines caused confusion and made flights late or
canceled. People were unhappy with the service.
Conclusion and future prospects
Consolidated Operations Competitive Edge Industry Influence

The acquisition led to It positioned Kingfisher The merger influenced

consolidated operations with a competitive edge future consolidation and
in the dynamic aviation
and streamlined business market of India. expansion trends in the
processes for the airlines. Indian aviation industry.
Thank you