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    Indian airline industry

    Facts of Indian aviation

    Kingfisher airlines

    Journey of KFA

    Crisis

    Comparison with rivals

    Steps taken to overcome crisis

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    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 theworld 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.

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    Industry: Transportation House Name: UB Group

    Founded: 2003

    Operation started: 9thMay 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.

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    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

    IndiasNo. 1 Airline in customer satisfaction

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    2005

    Began its operations on 9thMay

    Income for year ending on 30thJune 2006 was INR 13.5 billion.

    2006

    KFA became synonym with 5 star air travel.

    Serious talk with Air Deccan.

    2007

    Carried 17.5 million passengers, fleet of 41 aircrafts.

    19thDecember 2007 acquired 46% of Deccan aviation in air Deccan

    Income INR 15.4 billion.

    2008

    Was Carrying 10.9 million passengers annually, fleet of 77 aircrafts.

    Started international operations.

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    2009

    Healthy market share of 22.9%.

    Won numerous tributes from agencies around the globe.

    2010

    Market share came down to19.8%.

    Emergence of Indigo

    2011

    Cash flow problems.

    Dozens of pilot left for rival airlines.

    Debt started increasing.

    2012 SBI declared Kingfisher as non-performing asset. Kingfisher airlines became headlines.

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    More Operational Cost.

    Acquisition of Air Deccan.

    Business on credit basis.

    No planning and forecasting.

    No proper management.

    Covered destinations where passengers were less.

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    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.

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    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%.

    Contd.

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    Delayed Salaries

    Fuel Dues

    Aircraft Lease Rental Issue

    AAI reports

    Service Tax & Income Tax

    Bank Arrears

    IATA Suspension

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    Kingfisher Airlines' unpaid staff shaken by suicide

    on Oct 10, 2012

    http://economictimes.indiatimes.com/photo/16749629.cms
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    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

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    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.

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    PROFITABILITY

    FINANCIAL Fewer planes & more customer

    CUSTOMER Fight on time & lowest time

    INTERNAL Lower turnaround time

    Fast ground clearance

    LEARNING Grow crew skills

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    Find a strategic partner with

    significant hunk of cash.

    Corporate debt restructuring.

    Payment of salaries to employees.

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    In talks with two foreign carriers, International Airlines

    Group (IAG)- the owner of British Airways and Iberia, for apotential 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.

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    www.flykingfisher.com

    en.wikipedia.org/wiki/Kingfisher_Airlines

    timesofindia.indiatimes.com

    articles.economictimes.indiatimes.com

    www.moneycontrol.com

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