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Untitled Document 79
Untitled Document 79
2.
There was even a point when Kingfisher Airlines is among India's best-rated airline
companies, with customer satisfaction, but it was unable to maintain that status for a
long period of time. Kingfisher Airlines, which really is cash-strapped, has become
entangled in a network of debt, owing for airport fees, fuel, and staff wages, as well as
loan repayments to several banks as well as service tax. The firm lost approximately
Rs. 7,000 crores in 2012, with approximately half of its planes stranded and many of its
employees on strike. The airlines came to a standstill when all of its operations were
terminated. In light of his difficulties, Vijay Mallya requested a lifeline from the govt but
was denied. On December 20, 2012, the DGCA canceled the airline's flying certificate,
forcing it to halt production.
3.
The Factors for the Decline KFA was regarded as one of India's top five airliners until
Dec 2011, when it sustained large losses, incurred heavy liabilities, and eventually
closed in 2012. According to the data gathered, there are now more strategic reasons
for KFA's failure than there are marketing reasons. The merger of KFA & Air Deccan, as
well as the launch of Kingfisher Red, were the key marketing reasons for the drop.
● In 2012, KFA's service, guidance, or arrival costs were for around 10.86 percent
of the overall revenue, which was 3% far more Jet Airways'.
● KFA's staff costs were also greater than those of any other airline.
● KFA's expense of Value-added Services (VAS) was really quite high, and
therefore paid little attention to sanitation, internet, timeliness, and reasonable
rates, which are the essential needs of Indian clients.