Indian airline industry Facts of Indian aviation Kingfisher airlines Journey of KFA Crisis Comparison with rivals Steps

Steps taken to overcome crisis

 Indian aviation sector is fastest growing sector and has experienced 8% growth per year.

9th largest growing market in the world.

Liberalization has resulted in remarkable growth. Aviation sector handles 2.5 billion passengers across the world in a year. Moves 45 million tonnes of cargo through 920 airlines, using 4,200 airports and deploys 27,000 aircraft. Today, 87 foreign airlines fly to and from India and five Indian carriers fly to and from 40 countries.

Industry: Transportation House Name: UB Group Founded: 2003 Operation started: 9th May 2005 Headquarters: Mumbai, Maharashtra Registered Office: Bengaluru Key People: Dr. Vijay Mallya (CMD) Sanjay Agarwal (CEO) Services: Airline catering & foodservices, Aircraft ground handling & passenger transport.

Kingfisher Airlines has received three global awards at the SKYTRAX World Airline Awards NDTV Profit Business Leadership Award for Aviation India's only 5 Star airline", rated by Skytrax Brand Leadership Award Economic Times Avaya Award 2006 for Excellence in "Customer Responsiveness Indias No. 1 Airline in customer satisfaction

2005

Began its operations on 9th May Income for year ending on 30th June 2006 was INR 13.5 billion.

2006

KFA became synonym with 5 star air travel. Serious talk with Air Deccan. Carried 17.5 million passengers, fleet of 41 aircrafts. 19th December 2007 acquired 46% of Deccan aviation in air Deccan Income INR 15.4 billion. Was Carrying 10.9 million passengers annually, fleet of 77 aircrafts. Started international operations.

2007

2008

2009

Healthy market share of 22.9%. Won numerous tributes from agencies around the globe. Market share came down to19.8%. Emergence of Indigo Cash flow problems. Dozens of pilot left for rival airlines. Debt started increasing. SBI declared Kingfisher as non-performing asset. Kingfisher airlines became headlines.

2010

2011

2012

More Operational Cost. Acquisition of Air Deccan. Business on credit basis. No planning and forecasting. No proper management. Covered destinations where passengers were less.

 Total debt of Rs.7000 cr. even after about Rs. 1400 cr. was kind of written off last year. Total losses of Rs. 8000 cr. Operational loss of Rs 1027 crores. It owes a sum total of approximately Rs 890 cr. to all its fuel suppliers. BPCL and several Kingfisher lenders have even filed a court case for recovery on unpaid dues of over 250 cr.

Contd.
It has absolutely no assets that it can sell or mortgage. Aircrafts recalled due to non-payment.

Bangalore and Hyderabad airport have decided to ask

Kingfisher airlines to pay landing charges before they land. Feb 2012-Several flights cancelled and many grounded. Market Share dropped to 11.3% Stocks dropped to 13.5%.

 Delayed Salaries

Fuel Dues
Aircraft Lease Rental Issue AAI reports Service Tax & Income Tax Bank Arrears IATA Suspension

Kingfisher Airlines' unpaid staff shaken by suicide on Oct 10, 2012

No flying for Kingfisher without bank guarantee: AAI Kingfisher owes over Rs 200 cr to AAI Kingfisher Airlines to extend lockout; management, workers to meet again soon

 Brand Building. Brand Communications. Operating in both international & domestic market. Focusing on ROI. Strong Management team. Focusing mainly on customer satisfaction. Knowledge and ability to forecast the opportunities and threats in coming future, and adapting according to it.

PROFITABILITY
FINANCIAL Fewer planes & more customer

CUSTOMER

Fight on time & lowest time

INTERNAL

Lower turnaround time Fast ground clearance

Grow crew skills

LEARNING

 Find a strategic partner with significant hunk of cash. Corporate debt restructuring.

Payment of salaries to employees.

 In talks with two foreign carriers, International Airlines

Group (IAG)- the owner of British Airways and Iberia, for a potential rescue package. Etihad, the UAE-based airline, is also keen to have discussed a tie-up. Employees are on strike. At present Kingfisher is under lockout. License has been suspended by DGCA. Share price dropped by 4.8% after suspension of license. DGCA has asked to submit revival plan.

 www.flykingfisher.com en.wikipedia.org/wiki/Kingfisher_Airlines timesofindia.indiatimes.com

articles.economictimes.indiatimes.com
www.moneycontrol.com