Project Report

On
Oligopoly Market Structure
In
Indian Aviation Industry: Kingfisher Airlines

Submitted to:
Prof. Tavishi Tewary

Submitted by:
Aditya Singh Yadav (045004)
Ansh Loomba (045009)
Ishaan Khattar (045022)
Lakshit Bhattacharya (045028)
Om Wadhwa (045037)
Introduction
The Indian civil airline industry forms part of the top ten in the world, with a size of $16 billion. Indian
airline industry guarantees enormous development potential because of vast and developing working
class populace, favourable socioeconomics, economic development, higher expendable earnings, rising
yearnings of the working class, and largely low entrance levels.
Aviation industry everywhere throughout the world has been considered as an oligopolistic market i.e.,
dominated by a couple of firms, which, are sufficiently substantial enough to impact the size of the
market, because of their policy restriction, and capital-intensive nature.
The conduct of any one firm in an oligopoly depends, overall, on the conduct of others. Along these
lines, when they collude, oligopolistic firms may strategically avoid that conduct which is unfavourable
to their general interest.
The primary motive behind framing cartels is to coordinate the arrangements of member parties to
expand the profit. Nevertheless, cartels are considered to be anticompetitive practices by competition
laws of most of the nations including the Competition Act of 2002 of India (from this time forward
alluded as 'the Act'). This revolves around the ongoing trend in commercial airline industry and will
elaborate upon their inclination to create cartels everywhere throughout the world including India. For
instance, on 16 October 2005, a group of 11 aircrafts met in Mumbai to create the Federation of Indian
Airlines (FIA) which will give them a platform to discuss issues in the industry and create a lobby to
mallet out solutions with the government. Be that as it may, at the first meeting the issues related to
pricing were discussed, which was judiciously brought to the notice of the CCI, and thus the initial
move towards cartelization had prematurely ended.
As per the Competition Act, 2002, the Competition Commission has been authorized to determine
whether or not a combination would have or is likely to have an Appreciable Adverse Effect on the
competition (AAEC) and in this way, CCI should assume a positive role in to prevention of occurrence
of any anti-competitive agreement in order to ensure and maintain a healthy competition in the market.

Airline Industry: An OLIGOPOLY?

An oligopoly market is a place of limited competition wherein the market is shared by a small number
of producers or sellers. Indian Aviation sector is an oligopoly market sector.
Oligopolistic market or industries have proven to be inefficient since there are high barriers to entry and
forms of collusion, which reduce competition and lead to higher costs for consumers.
When the individual firm owners work together and act in concert with the aim of limiting or eliminating
the competition and increase profits jointly, they work in the model of a monopoly. They collude and
hence the outcome would exactly be as the outcome of a monopoly. They choose the price quantity
combination and stay in control of the output level that maximizes profits for them.
When sellers come together in an oligopoly to collude, they fix price and the oligopoly is diluted to
form a monopoly.
A cartel is an boon to the concept of oligopoly wherein the competitions themselves, in an industry,
collude, and enter into formal agreements and indulge themselves in undertakings such as price fixing
and fixing of production quantity. In principle, a cartel formation may happen in any industry however;
it is most efficient and suitable only in an oligopoly where there are few players. Cartels are more steady
if the industry deals in perfectly substitutable good instead of differentiated product since it is easy to
fix prices and control the supply. In such circumstances, if there were any shift in the market share of
an individual member firm from the cartel, then it would be noticeable that such a dip is conceivably a
direct result of change in prices made by another member firm.
At the point when firms in an oligopoly fix their individual prices and the supply quantity, while
evaluating, they should consider what the other in the market are doing, for the price and quantity is
inversely proportional to each other. In the event that every one of the players produce excessively, at
that point the prices may take a dip and reach below the average total costs (ATC), causing all of them
losses. In order to avoid this the firms can restrict amount to that level in the market, which resembles
a model where the marginal cost id equal to marginal revenue for the whole of oligopoly market, which
would result in profit maximization.
Analysing it from the point of view of Game Theory, cartelization in an oligopoly may have prisoner’s
dilemma. Nonetheless, the firms have one advantage in this prisoner’s dilemma — they as a rule
comprehend what alternate firms did previously, so they can settle on amount and prices hinge on the
hypothesis that they will act in the same manner in future. However, if the firm is mistaken to presume
this, at that point they it is upon them to rectify their production schedules. Hence, the firms in an
oligopoly attempt to eliminate this game of chance by creating a cartel, where they concert to produce
a particular amount of yield, with the ultimate goal that they would all offer their products or services
at maximised profits. Where firms have a background of working in concert, they can decide on a
dominant strategy based on the decisions that other participant firms have made, in other words called
a Nash equilibrium.
In oligopoly, there is misallocation of assets and henceforth decrease in social welfare. Since a dominant
firm has attained the authority to decides the prices and yield policies for the whole industry and other
players in a tacit collusion with a goal to maximize the profits.
Thus, this price dominance is acts like a monopoly acting in concert to fix one price of the product and
services. As stated above, when the participants in oligopolistic market framework concert with each
other in collusion they are all the more like a monopolist and lead to restriction on outputs which leads
to high prices for the consumers. Hence, it can be assumed that the oligopoly has a social cost attached
to it which, the consumers pay when the market players act in collusion as a single unit.
➢ Few Dominant Players: In an oligopoly, there are only a few large firms that dominate the
market. In the Indian aviation industry, there are a limited number of major airlines that control
the majority of the market share. As of my last knowledge update in September 2021, airlines
like IndiGo, SpiceJet, Air India, and GoAir (now known as Go First) were among the key
players.

➢ High Barriers to Entry: Oligopolistic markets often have high barriers to entry, which make
it difficult for new competitors to enter and establish themselves. In the aviation industry, these
barriers include the substantial capital required to purchase aircraft, set up infrastructure, and
comply with regulatory requirements. Additionally, established airlines often have
advantageous relationships with airports and access to established customer bases, further
deterring new entrants.

➢ Interdependence of Firms: Oligopolistic firms are highly interdependent, meaning that they
closely monitor and react to each other's actions. In the Indian aviation industry, airlines
regularly adjust their fares, routes, and services in response to their competitors' moves. Price
wars, fare changes, and route expansions are common strategies used to gain a competitive
edge.

➢ Non-Price Competition: In oligopolies, competition is not limited to price competition alone.

Airlines in India engage in non-price competition by offering differentiating services such as
in-flight entertainment, customer service, frequent flyer programs, and alliances with
international carriers. This non-price competition allows them to compete for passengers'
loyalty and market share.

➢ Collusion Tendencies: Oligopolistic firms may sometimes exhibit collusive behaviour, where
they cooperate to control prices or reduce competition. While formal collusion is illegal in most
countries, informal understandings or signalling can occur in the industry. For example, airlines
might indirectly signal their intentions to increase or decrease capacity to avoid excessive price
competition.

➢ Price Rigidity: In oligopolies, prices tend to be relatively stable over time, as firms are reluctant
to engage in price wars that can lead to lower profits for all. The Indian aviation industry often
experiences price stability in the long run, with airlines carefully adjusting fares to maintain
profitability.

Kingfisher Airlines: Soaring High and Crashing Low

In the annals of aviation history, few names evoke such a mixture of awe and bewilderment as
Kingfisher Airlines. Founded by the flamboyant Indian industrialist, Dr. Vijay Mallya, this airline
embarked on a journey that promised opulence and luxury in the skies. Launched amid great fanfare in
2005, Kingfisher Airlines was envisioned as a game-changer in the Indian aviation industry, setting new
standards of excellence and redefining the way Indians travelled by air.
In its heyday, Kingfisher Airlines was not merely an airline; it was a lifestyle brand that aspired to blend
the glamour of international travel with the allure of fine dining and the thrill of entertainment. With its
distinctive red and white livery, impeccable service, and an impressive fleet of aircraft, Kingfisher
aimed to position itself as the preferred choice of discerning travellers.
This project report delves into the rise and fall of Kingfisher Airlines, tracing its inception, examining
its ascent to prominence, and analysing the myriad factors that contributed to its spectacular downfall.
By understanding the trajectory of Kingfisher Airlines, we can gain valuable insights into the
complexities of the aviation industry and the challenges faced by businesses in a dynamic and
competitive environment.

The Beginning...
Kingfisher Airlines had its origins in the visionary mind of Dr. Vijay Mallya, a prominent Indian
industrialist and the chairman of the UB Group, a conglomerate with interests spanning from alcoholic
beverages to aviation. Dr. Mallya, known for his flamboyant lifestyle and business acumen, saw an
opportunity to revolutionize the Indian aviation industry by introducing a premium airline that would
cater to the needs and desires of India's burgeoning middle and upper-middle class.

➢ Vision and Inspiration:

Dr. Vijay Mallya drew inspiration from international carriers renowned for their luxury and
service excellence. He aspired to bring a similar level of opulence to the Indian aviation
landscape.
The Kingfisher brand, associated with the group's beer division, was chosen to evoke images
of elegance, style, and luxury, aligning with the airline's intended positioning.

➢ Premium Services:
Kingfisher Airlines was conceptualized as a full-service carrier, distinguishing itself from the
existing low-cost airlines in India.
The airline aimed to provide passengers with an experience that went beyond just air travel. It
offered world-class in-flight services, gourmet dining, and a dedicated cabin crew trained to
meet international standards.

➢ Fleet and Aesthetics:

The airline's fleet primarily consisted of Airbus A320 and ATR aircraft, known for their comfort
and reliability.
The distinctive red and white livery of Kingfisher's planes, coupled with the peacock logo,
created a visually striking brand identity.
 ➢ Luxury Lounges:
Kingfisher Airlines set up exclusive lounges at major airports to enhance the pre-flight
experience for its passengers. These lounges provided a glimpse of the luxury that awaited
travellers on board.

➢ Route Expansion:
The airline began its operations in 2005 with a focus on domestic routes. However, it quickly
expanded its network to include international destinations, further cementing its status as a
premium carrier.

➢ Marketing Blitz:
Dr. Mallya, a master of marketing, left no stone unturned in promoting Kingfisher Airlines. The
brand was associated with glamour, fashion, and entertainment through strategic partnerships
and sponsorships.

UB Group
United Breweries Holdings Limited (UBHL), often referred to as the UB Group, is a prominent Indian
conglomerate headquartered in UB City, Bangalore, Karnataka. The company has a diversified portfolio
with a primary focus on the beverage industry, specifically brewing, and substantial investments across
various sectors. Here are some key highlights about United Breweries and its business operations:

➢ Core Beverage Business: United Breweries is renowned for its prominent role in the alcoholic
beverage sector. It holds the distinction of being India's largest beer producer and is most
notably recognized for its flagship brand, "Kingfisher." The Kingfisher brand enjoys
widespread popularity and recognition in India.

➢ Ownership of Beverage Brands: In addition to Kingfisher, United Breweries Holdings

Limited possesses a range of other alcoholic beverage brands, including spirits and wines.
These diverse brands cater to a wide spectrum of preferences within the alcoholic beverage
market.

➢ Dominance in the Indian Market: The company commands a significant presence in the
Indian brewing market, holding a market share exceeding 40%. This positions it as a dominant
force in the Indian beer industry.

➢ Global Reach: United Breweries operates on a global scale, boasting distilleries and bottling
units not only within India but also in various international locations. This extensive global
presence facilitates the production and distribution of its products to a broad array of markets.
 ➢ Diversified Investments: While beverages, particularly beer, constitute the core of the
business, United Breweries Holdings Limited has diversified its investments into multiple
sectors beyond beverages. These investments may encompass real estate, aviation, and other
industries.

➢ Historical Significance: The company's origins can be traced back to its founder, Vittal Mallya,
and it has been associated with the prominent Indian businessman Vijay Mallya, who played a
pivotal role in its expansion. It's important to note that Vijay Mallya's legal issues and financial
challenges led to controversies and changes in the ownership and management of the company.

Historical Background
➢ Foundation: The UB Group was founded in 1857 by Thomas Leishman in Bangalore, India. It
initially started as a brewery known as "Bangalore Brewing Company."

➢ Vittal Mallya Era: The company was later taken over by Vittal Mallya, a visionary
entrepreneur. Under his leadership, the company expanded its brewing operations and became
a significant player in the Indian beer industry.

➢ Kingfisher Brand: In 1947, the company introduced the iconic "Kingfisher" beer brand.
Kingfisher quickly became a household name in India and contributed significantly to the
group's success.

➢ Diversification: Over the years, the UB Group diversified its business interests, venturing into
various sectors such as aviation, distilleries, engineering, and more. It became a conglomerate
with interests beyond just brewing.

➢ Vijay Mallya's Leadership: Vijay Mallya, Vittal Mallya's son, took over the leadership of the
UB Group. Under his stewardship, the group further expanded its reach, including the
acquisition of Shaw Wallace & Company Ltd., a major alcoholic beverage company.

➢ Global Expansion: The UB Group expanded its footprint internationally, setting up distilleries
and bottling units in several countries. Kingfisher beer, in particular, gained recognition in
global markets.

➢ Challenges and Controversies: In the early 21st century, Vijay Mallya faced financial
difficulties and legal issues, including allegations of financial misconduct. These challenges led
to controversies and changes in the ownership and management of the group's companies.

Subsidiaries
➢ United Breweries Limited: The flagship subsidiary of the UB Group, United Breweries
Limited, is primarily engaged in the production and distribution of alcoholic beverages,
including beer (Kingfisher brand) and spirits.

➢ McDowell Holdings Limited: This company is involved in investments and financial services.
It is associated with the group's interests in the alcoholic beverage industry.
 ➢ UB Engineering Limited: A subsidiary specializing in engineering and construction services,
particularly in the fields of infrastructure and industrial projects.

➢ Mangalore Chemicals & Fertilizers Limited (MCFL): MCFL is engaged in the production
and sale of fertilizers and industrial chemicals. The UB Group had a significant stake in this
company.

➢ United Spirits Limited: While not directly a subsidiary of the UB Group, United Spirits
Limited (USL) was a prominent company in the alcoholic beverage sector. It was acquired by
Diageo, a multinational alcoholic beverages company, in a significant deal, and the UB Group
held a stake in USL at that time.

➢ United Breweries (Holdings) Limited: This company, also known as UBHL, served as a
holding and investment company for various group interests, including stakes in other
subsidiaries.

➢ UB Infrastructure Projects Limited: This subsidiary was involved in infrastructure

development and construction projects.

➢ Kingfisher Airlines: While it faced financial challenges and was grounded, Kingfisher Airlines
was an associated company of the UB Group. It was primarily involved in the aviation sector.

Fig. 1: Market share of aviation sector as on April 2011

Onset of Turbulent Times

There was a period when Kingfisher Airlines held the distinction of being one of India's top-rated
airlines, garnering high levels of customer satisfaction. However, its ability to maintain this status
proved short-lived. The year 2008 marked the beginning of challenges for Kingfisher Airlines, with the
onset of an economic slowdown and the relentless rise in fuel prices. Additionally, the airline faced the
obligation of providing services on routes that were financially unviable. This precarious path ahead
led to a series of difficulties for the cash-strapped Kingfisher Airlines. The company found itself
ensnared in a web of financial woes, burdened by substantial debts owed for airport fees, fuel, employee
salaries, repayment of loans to various banks, and service tax obligations. In September 2010, Sanjay
Agarwal, the former CEO of SpiceJet, joined Kingfisher Airlines, while Vijay Mallya assumed the roles
of Managing Director and Chairman of the airline. In September 2011, as a last-ditch effort to address
the cash shortage, Kingfisher Airlines made the decision to discontinue its low-cost segment, Kingfisher
Red. Unfortunately, this survival strategy came too late for the ailing airline. According to Kingfisher
Airlines' annual report for the year 2011, serious concerns were raised about the company's viability. It
was revealed that the airline had failed to deposit government funds deducted as TDS (Tax Deducted at
Source) and provident fund contributions, underscoring the dire financial state of the company. Over
time, the situation deteriorated further, resulting in the suspension of international flights and the
continued cancellation of domestic flights. On April 25, 2012, the airline's languishing shares
plummeted to an all-time low of 13. Throughout 2012, the company incurred losses exceeding Rs. 7,000
crores, with nearly half of its aircraft grounded, and numerous staff members going on strike. As
operations ground to a halt, the airline came to a standstill. In light of these dire circumstances, Vijay
Mallya appealed to the government for a bailout but was met with rejection. The Directorate General
of Civil Aviation (DGCA) suspended the airline's flying license on December 20, 2012, forcing the
airline to cease its operations.

Rule
The ministry set Directorate General of Civil Aviation (DSCA) rule drafted in July 2010,
as bases for the argument that allowed the airline to function if it would possess five aircrafts and
had a capital paid-up for no less than Rs 50 crore. Kingfisher airlines for over a year kept on
cancelling the scores for flights under a debt, of more than Rs 7,000 crore and liabilities over Rs
4,000 crore.
Lessor have confiscated its aircraft, which significantly reduced its fleet. The ministry was proved
unsuccessful to mention the rule which states that an airline’s license is a subject to “mitigation of
potential risk factors” discovered during a financial surveillance, ensuring safety was not
accommodated due to the airline’s financial pressure.

Causes

There was the severe need to identify airline cause for distress considering financial and operational
issues to ensure safety functions don’t get affected. The possible unfavorable trends in the operator’s
financial state could include:
1. Decrease in safe operating standards or evidence of cutting corners.
2. Fall in training standards.
3. Significant turnover of personnel.
4. Delayed meeting payroll.
5. Insufficient aircraft maintenance.
6. Storage for supplies and spare parts.
7. Decrease in frequency of flights.
8. Sales or repossession of aircraft and other major equipment items.

Reasons behind the Downfall

Till December 2011, KFA was considered among top 5 passenger airlines in India but after that it
suffered high losses, heavy debts and finally shutdown in 2012. From the data collected, it depicts
that there are more business reasons as compared to marketing reasons behind the failure of KFA.
The main marketing reason responsible for the decline was the merging of KFA with Air Deccan and
starting of Kingfisher Red.
Operational Reasons

1. The maintenance, navigation, landing cost of KFA in 2012 was about 10.86% of the total revenue
generated and 3% more than that of Jet Airways.
2. The employee cost of KFA was also higher than any other airlines.
3. The cost of Value-added Services (VAS) by KFA was also very high and also they paid less
attention on cleanliness, connectivity, scheduling and low prices that were the basic requirements
of Indian customers.

From the reports generated and studies conducted it shows that the condition of Aviation Industry in
India was in so much pain that it adversely affected the KFA. There were 4 factors responsible for
bad condition of Aviation Industry in India.

Rise in Fuel Prices

Due to rising demand for fuel and competition among various airlines there was continuous increase
in the price ofjet fuel and KFA was not able to pay the bills of fuel consumed.

From the above table it is clear that in 2012 50.58% of their revenue is fuel expenses and out of
which their fuel payment was 31.78% of their revenue. Their fuel expenses were increased by nearly
70% and because of their non- payment of fuel expenses many vendors’ filed a petition with
Bangalore High Court against KFA including BPC(Bharat Petroleum Corporation).
Also the Aviation Turbine Fuel is heavily imposed by Government of India. In India ATF is approx.
51% higher than the international standard.

1. Fall in Rupee
2. High cost of landing fee and airline taxes
3. Price cutting by AIR INDIA

Worst Decision Made

In 2007, KFA merged with Air Deccan that was a low-cost- carrier that charges low fares while
kingfisher was a high cost carrier that was known for its luxury. Kingfisher thought that Air Deccan
was in market before it so it would uplift the financial position of the company and another reason
was that Kingfisher didn’t have 5 years of domestic experience but Air Deccan had and to get
international license in aircraft it must have 5 years of domestic experience that is why it acquired
Air Deccan.
After merging with Air Deccan there was introduction of Kingfisher Red in 2008. But this
business strategy caused confusion in consumer’s mind because the KFA passengers were used to
the luxury provided like cuisine and lounge access etc. The merging degraded the brand status of
KFA and the company lost its premium value.
The company incurred a loss of more than 10 billion for 3 years after merging with Air Deccan. When
Kingfisher gets to know that they did a big mistake by acquiring Air Deccan, it increased the prices
of Kingfisher Red. But Kingfisher Red was also not a good option at that time because it was under
loss and this created confusion among the management to call it a low cost or normal carrier. In
December 2011, Income Tax Department of Mumbai freeze the bank accounts of KFA because of
due of Rs 70 crores. To pay the debt the company took more loans. For debt reconstruction the lenders
who lend loan cut the interest rates and converted the loan to equity. But this was also not helpful to
the company as liquidity problem was faced by the company after that. Kingfisher Red was finally
shutdown in February 2012. Now KFA is under a total debt of Rs 7057.08 crores (USD 1414 million)
and total losses of Rs 6000 crores (USD 1202 million.

Strategic Issues
1. The major mistake committed by Mr. Mallya is that he failed to make proper decisions. He failed
to understand the requirement of consumers and made all decisions on the basis of luxury sells.
For him airlines were considered to be a luxury travels but in India only selected classes were
ready to pay extra for luxury.
2. Mallya being a liquor tycoon was unable to identify the differences between the two industries.
Customer might pay extra for alcohol but not for transport, because transport is type of necessity
than luxury.
3. In 2008 Deccan airlines was rebranded as Kingfisher Red by Mr. Mallya. So Kingfisher Airlines
operated both business and economy class airlines. This looks perfect but wasn’t actually. Mr
Mallya was in different businesses at the same time. For his liquor business officials were
appointed but for airlines all was goingby itself. The business needed the attention of Mr Mallya.
4. According to reports, 366 domestic flights, 20 international flights were flown by KFA. It also
owned 67 aircrafts. This increases aircraft lease rental. In 2011, the lease rental crossed Rs.984
crores and because of this, 66 aircrafts have been grounded.
5. In 2011 there was a time when Kingfisher was not able to pay the salaries to employees. Salaries
were due for 4 to 5 months. After this the employees started refusing to sign the mandatory “Tech
Log” which states that aircraft is fit and ready to fly. This was noticed by Directorate General of
Civil Aviation (DGCA) and they cancelled the license of KFA.

Economic Slowdown
Economic slowdown in 2008 is another external factor for downfall of the Kingfisher. In 2008, first
international route from Bangalore to London was set up. Because of downturn, fuel prices of
airplanes raised landing charges at international airport which highly impacted Kingfisher airlines.

Lack of Proper Management

The frequent change of CEO for more than once in a year and malfunctioning of top level
management, which Mr. Vijay Mallya never took any serious intervention in day-to- day operations.
Later airline was gifted to Siddarth Mallya (son of Vijay Mallya) by his father on birthday. He lacked
the maturity to handle such a big airlines business and so, lack of correct proficiency and experience
in the airlineindustry, kingfisher airlines suffered severe downfall due to lack of proper management.

Bank Dues

According to a report generated by “The Indian Express” in November 2015, Mr. Mallya suffered
a total loss of Rs 9,091.40 crore. He took loan from 17 banks. His highest debt was with State Bank
of India of Rs. 1600 crore. From the above data the airline owes Rs 800 crore each to Punjab
National Bank and IDBI Bank. It also owes Rs 650 crore to Bank of India, Rs 550 crore to Bank of
Baroda, Rs 410 crore to Central Bank, Rs 320 crore to UCO Bank, Rs 310 crore to Corporation
Bank and Rs 430 crore to United Bank of India, among others, data showed.

Conclusion
After understanding the working of Indian Airline Industry and different case studies, it can be said
that there are probable areas of cartels in airline industry like code sharing which is not cartel per
se but can be a mode of anti-competitive practice. Secondly, Air Turbine Fuel (ATF), dividing of
routes, air ticket price manipulation, etc. are some of the areas on which competition law has to
keep a check on cartel formation.
Subsequent to having a superior perspective of various air carrier cartel cases in various locales it
tends to be seen that whether an airline is national carrier or a private carrier that nations have
managed them brutally as well as instilled them with criminal risk in most pessimistic scenarios.
Another purpose of perception is that the wards have not just taken the harm to their economy alone
yet additionally the harm that happened in different nations where the cartel worked.
Under Competition Act, 2002, Commission is enabled to decide if the mix would have or is
probably going to have an Appreciable Adverse Effect on the competition (AAEC) and in this way;
CCI should assume a proactive job in the support of fair competition and keep any anti- competitive
activities from happening. With the progression of time various players would surely endeavour to
enhance their piece of the overall industry and productivity. In the event that cartels are not crushed
at incipiency it will take us back to the period of imposing monopoly delighted in by the State air
bearers and thus there will be deficiency of low cost airlines in India. There’s urgent need to
formulate sector specific competition rules and policy according to the needs of industry in India.

Indian airline business has seen ideal growth and revolution which will go on in coming years.
Many airlines come and go while the others have gained a strong ground in this business. The grand
and ambitious Kingfisher Airline’s project suffered huge downtime due to improper strategic
decisions and mismanagement by the group. Instead of trying to utilize this grand airline project
opportunity, Vijay Mallya focused to achieve a glamorous status. The airline became for the
luxurious design, food and ambience including big goals for settling in international market but
neglected the basic economic class. The strategy practiced by Vijay Mallya could not sustain for
long and proved to be a great threat at a large scale to both, sustainability and stabilization of the
aviation sector. Mallya is now the only board member left holding on to the brand.
References
➢ Air Deccan is now Kingfisher Red - Times of India
➢ Strategic Mistakes That Led To The Failure Of Kingfisher Airlines
➢ Kingfisher default bill: This is how much defunct airline owes to banks; largest
dues to SBI - The Financial Express
➢ “Kingfisher Airlines: Too big to fail, too big to save”, The Economic Times,
21 November 2011. - Google Search
➢ Air Deccan is now Kingfisher Red - Times of India
➢ https://economictimes.indiatimes.com
➢ https://www.peoplematters.in
➢ http://tejas.iimb.ac.in
➢ https://www.theijbm.com
➢ https://economictimes.indiatimes.com/industry/transportation/airlines-/-
aviation/why-vijay-mallyas-kingfisher-airlines-is-still-
notgrounded/articleshow/15238586.cms?from=mdr
➢ https://www.thehindu.com/business/companies/the-rise-and-fall-of-a-castle-in-
the air/article2622215.ece