Kingfisher

KINGFISHER
“FLY THE GOOD TIMES” BYADITYA VARSHNEYA ASIF PASHA PROTIP SINHA SHRISHTI AGARWAL SAMEER YOGI AMARNATH KESHRI

INTRODUCTION
• • • • • • Founded - 2003 Commenced operations - 9 May 2005 Alliance- One world (2012) Company slogan - Fly The Good Times Parent company - United Breweries Group Key people - Vijay Mallya (CMD) Sanjay Aggarwal (CEO) Hitesh Patel (EVP)

• Website - flykingfisher.com • Services - Airline catering & foodservice, aircraft ground handling and passenger transport

• Revenue - 6,496 crore (2010-11)

Since inception, Kingfisher Airlines is yet to post profit on annual & total cost basis..
# From To Months Total Income Cost Net Profit

01

Apr-05

Jun-06

15

1,352

1,689

-337

02 03

Jul-06 Jul-07

Jun-07 Mar-08

12 09

2,142 1,546

2,562 1,734

-420 -188

04

Apr-08

Mar-09

12

5,577

7,186

-1,609

05

Apr-09

Mar-10

12

5,271

6,918

-1,647

06
07 Total

Apr-10
Apr-11

Mar-11
Sep-11

12
06 78

6,496
3,410 25,793

7,523
4,142 31,754

-1,027
-732 -5,960

PROBLEMS!!!
• • • • • Delayed salary of employees Fuel (ATF) Dues– aviation turbine fuel Airports Authority of India (AAI) default Aircraft lease rental default Income tax default In a nutshell, Kingfisher in troubled waters “ The airline has lost the confidence of its bankers, customers, passengers, vendors, airport authorities, oil companies and the public. Oil companies are refusing to supply fuel to the airlines. Airport authorities are refusing permission to the airlines. Bankers are refusing to extend any credit to the airline.”

SWOT ANALYSIS
• STRENGHTS Strong brand value and reputation  Quality of service  Continuous innovations

• WEAKNESS Still not in profit organization  High ticket pricing  Tough competition

CONTD…
• OPPORTUNITIES Expanding tourism packages  International market  Non-penetrated domestic market

• THREATS Financial issues  Fuel price hike  Economic slowdown

Solutions
• Reduce personal costs by replacing high costs expect(frails) • Reduce the engineering costs. • Implementing fuel monitoring system. (reduction in fuel consumption)

• Inter-corporate deposits e.g. Subhrata Roy lends 750 cr. To kingfisher
• • Drop some unprofitable flights and in some sectors reduce frequency. Reduce advertisement expenses that cost crore of rupees

• Invest revenues from other profit ventures i.e. liquor, sports etc.