Disclaimer: this blog was written for educational purpose, the resource of the data in this blog was online journals.
Kingfisher Airlines was India's one of the most highly profiled Airlines which was owned by biggest liquor tycoon of India. It was established in the year 2003; which is based in Bangalore. The parent company of kingfisher airlines was united breweries group. the air line started its commercial operations in 2005. the owner of kingfisher airlines (KFA) was Vijay Mallya and Sanjay Aggrawall was the CEO.
It was the first Indian airline to have (IFE) Inflight entertainment system on every seat even on domestic flights. The kingfisher airlines have a 360 degree promotion strategies in place. they reach out to its customers through all media of communication such as T.V, radio, newspaper, magazines etc...
kingfisher airlines achieved success by gaining customer satisfaction through offering grate, luxurious, and comfortable flying experience. according to the data shown in Wikipedia kingfisher airlines have a revenue of 25,982.78 crore in 2012 and a net income of 8,765.9 crore in 2012. until December 2011, KFA was holding 2nd largest share in India's domestic air travel market. after this time period it started to face extremal financial crisis. according to the annual report of KFA 2011-12 ; it shows reasonable doubts over the companies existence. it shows a loss around 690 crore were accumulated by the company. in order to keep the loss making business functioning, Vijay Mallya resorted to continuously borrowing money from banks. by 2012 KFA was declared as a NPA by SBI. At this point it even had failed to pay its employees which led to its pilots leaving it for better opportunities.
one of the important cause of the failure was the improper management; including poor financial planning, lack of focus on core operations. Vijay Mallya focused on luxuriousness rather than economic class. at that time KFA merged with air decan and started Kingfisher red. it was a business strategic plan but it caused confusion in customers mind and it degraded the brand status and company lost it premium value. another scandal on the company kingfisher airlines was it held the service tax of passengers, PF, income tax of employees, but did not submitted to the PF or IT authorities.
after happening of all this events the company was bankrupted and (DGCA) Directorate General of Civil Aviation suspended the flying license of kingfisher airlines and ceased its operations on 20 th October 2012.
Despite the failure of king fisher of KFA , mallya remained as wealthy man. in 2016 a consortium of Indian banks declared mallya as a willful defaulter, alleging that he had diverted funds from kingfisher airlines to other companies in the UK.
August 04, 2023
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company
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Failures
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governance
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