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  • Kingfisher Airlines-Fly The Good Times ..: Richa Sharma

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    Kingfisher Airlines was established in 2003 and owned by United Breweries Group. It started domestic operations in 2005 and international flights in 2008. However, the airline is now facing a major crisis with debts of $1.1 billion, losses of $66 million in the last quarter, and cash flow issues. This has led to non-payment of dues, salaries, and account freezing. The number of aircraft has dropped from 69 to 28 and flights have been halved. The airline's market share has fallen from 20% to less than 12%. The massive expansion plans and high fuel costs have significantly impacted the airline's finances.

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    Kingfisher Airlines was established in 2003 and owned by United Breweries Group. It started domestic operations in 2005 and international flights in 2008. However, the airline is now facing a major crisis with debts of $1.1 billion, losses of $66 million in the last quarter, and cash flow issues. This has led to non-payment of dues, salaries, and account freezing. The number of aircraft has dropped from 69 to 28 and flights have been halved. The airline's market share has fallen from 20% to less than 12%. The massive expansion plans and high fuel costs have significantly impacted the airline's finances.

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    9 views12 pages

    Kingfisher Airlines-Fly The Good Times ..: Richa Sharma

    Uploaded by

    tricha5605
    Kingfisher Airlines was established in 2003 and owned by United Breweries Group. It started domestic operations in 2005 and international flights in 2008. However, the airline is now facing a major crisis with debts of $1.1 billion, losses of $66 million in the last quarter, and cash flow issues. This has led to non-payment of dues, salaries, and account freezing. The number of aircraft has dropped from 69 to 28 and flights have been halved. The airline's market share has fallen from 20% to less than 12%. The massive expansion plans and high fuel costs have significantly impacted the airline's finances.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    of 12

    Kingfisher Airlines-Fly the good times..

    Richa Sharma(035)

    ABOUT KINGFISHER

    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. It started its international operations on 3 September 2008 by connecting Bengaluru with London.

    Can a beer baron assure the safety of an airline?

    Vijay Mallya the owner of Kingfisher airlines is a liquor baron, who also owns one of the worlds costliest yachts, a cricket team and a formula 1 team.

    The kingfisher crisis:


    A debt of 7500 cr.
    A loss of 444.26 cr in the 3rd quarter of 2012. A cash crunch (short term liabilities of 1200 cr).

    Non payment of dues and salaries.


    Freezing of accounts. Resignation of pilots.

    Impact of the crisis on the airline.


    Before the crisis After the crisis

    Total aircrafts were 69. Total aircrafts left 28.

    250 daily flights with regional and long-haul international services.

    Half of the operations are shut down.

    Impact of the crisis on the airline.


    Before the crisis
    Enjoyed number one spot with more 20% market share.

    After the crisis


    Currently at 5th position with less then 12% market share.

    What led to the crisisSince inception, the company has undertaken a massive fleet expansion plan, which, coupled with high crude prices, have impacted the financials. At the net profit level, it has been in loss and its operating cash flows are negative.
    Kingfisher

    has fewer planes because aircraft leasing companies have been confiscating planes due to non-payment of dues.

    Possible solutions
    The government should takeover the kingfishers assets set in motion a restructuring plan, pay off debts and salaries and give the airline to experts to run or sell it as it had done with IT company Satyam Computer services.

    The Aviation industry dont want to write off Kingfisher for two reasonsSix airlines are too few for a country of India's size.

    Passenger traffic is humming i.e. annual growth in airline passenger in India is around 20%.

    Conclusion

    Kingfisher airline is too big to fail


    Vijay mallya is kingfisher. The two are intertwined so tight, hurt one , you hurt the other. His liquor business is minting money but the airline which was a big ego booster is going into losses, affecting the whole BRAND KINGFISHER AND VIJAY MALLYA .

    THANK YOU

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