Kingfisher Airlines' Financial Crisis: A Detailed Case Study Report

This research paper presents a comprehensive case study on the Kingfisher Airlines crisis, examining the factors that led to its financial collapse. The paper begins with an abstract outlining the company's ambitious goals and subsequent financial troubles, including the failure to repay loans to various banks. It then delves into the introduction, highlighting the significance of business crisis management. The methodology employed is secondary analysis, using existing articles and data to dissect the airline's challenges. The case study provides background information, detailing Kingfisher's initial success and market position, followed by an analysis of the current situation, including the economic downturn and operational shutdowns. The paper explores strategic issues, such as management failures, luxury-focused decision-making, and a lack of consumer understanding. It also covers the consequences, including job losses and a damaged reputation. The paper concludes with recommendations for preventing similar crises, emphasizing the need for strategic planning and experienced management. The report references multiple sources to support its findings and provide a thorough understanding of the Kingfisher Airlines crisis.

Research paper

Contents
Abstract............................................................................................................................................3
Introduction......................................................................................................................................3
Method.............................................................................................................................................3
Case study........................................................................................................................................3
background..................................................................................................................................3
Current situation..........................................................................................................................4
Future...........................................................................................................................................5
Consequences..............................................................................................................................5
Conclusion.......................................................................................................................................6
Recommendation.............................................................................................................................6
References........................................................................................................................................6

Abstract
Kingfisher have been the company of biggest liquor tycoon of India with an ambitious to the
becoming the industry leader, Vijay Malay. In the year 2011 kingfisher have suffer the huge
level of financial crisis as there firm CMD have failed to repay the loans to many private and
public sector banks in India (Kolte, Capasso and Rossi, 2018). As they were almost 366 flights at
domestic levels and the 20 international flights which were run by the business in which the firm
have the 67 aircrafts. The firm have failed to manages there the management practices and the
structure of organization have not been uniformly planned. The problem situation have been
continues as the firm have the shutdown stoppage in the immortalised the international
operations
Introduction
The business crisis has been the event with clear level of potentiality to threatens the success
and health of the companies. This will have the inclusion of the threatening reputations.
damaging the business operations along with negatively impacting the business finances or the
harming of employees. In such situation, there have been the important for development and
management of business crisis as this can be caused by an external and internal factor or may be
the result of long-term factor. In this report here will be clear discussion on the kingfisher
airlines with current situation ad future consequences.
Method
For this report, there have been selected the approach of the secondary analysis in which there is
the maximum level of usage of the secondary data in the research in analysing the different
aspect o the kingfisher airlines (Panigrahi and et.al., 2019). This method has the analysing of
different article teased to the company. This is the research met so which is helpful in saving
both time and money. This is helpful invoicing the uneasy level of duplications f the reach
efforts. Secondary analysis is usually contrasted with primary analysis, which is the analysis of
primary data independently collected by a researcher
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Case study
background
The kingfisher airline was owned by the biggest liquor tycoon of India with an ambitious to the
becoming the industry leader. There firm have the growing share in the aviation market,
covering wide destinations and numerous awards which is depicted as there very attractive and
innovative picture for the company. There firm have achieved more level of success in gaining
the customer satisfaction by offering the great and comparable level of flying experiences to it
passenger. Hence, the firm have their short but lasting impression of the aviation industry. But in
the year 2011 kingfisher have suffer the huge level of financial crisis as there firm CMD have
failed to repay the loans to many private and public sector banks in India.
Current situation
The company is being identified as there having more than 4000 jobs in the airlines taking the
large amount f the public money and the career to the Marwick tycoon. As the economic growth
of India have been slowing down along with confidence to be flattering (Kolte, Capasso and
Rossi, 2017). The problem situation have been continues as the firm have the shutdown stoppage
in the immortalised the international operations. In the large organizations have the tons of
treatments with suggestion is needed to be there aid of the determination ways.
There sore some of the different reason which are contributing to the don fall of the kingfisher
airlines such as the sociological, technological, economical, ecological, legal , ethical , apolitical
manner. the strategic level of issues faced by the kingfisher company is –
The major level of mistake done by Malays as to have failure in tasking appropriate declines
along with failure in understanding the requirement of the consumers. The has made all decision
on basis of luxury sales but in India only the selected call is only readies to have there extra for
the luxury.
Malays have failed to understand the bias level of difference between being the liquor tycoon
and development of aviation industry. As the people were ready to pay for the alcohol but not
for transports as this is type of necessity.
In the year 2008 the Deccan airlines have been marked as kingfisher red where the business
have been operated as both business and economy class surliness, but the owner have the
different pane for different businesses as this have lead to the lack of attentions.
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As per the report, it has been stated as there were almost 366 flights at domestic levels and the
20 international flights which were run by the business in which the firm have the 67 aircrafts.
As per the year, 2011 have the lease rental cross around the 984 crores as there 66 flights have
been grounded.
Hence in the year 2011 the company have first time failed to pay the salaries to employees which
was due form 5 months. Hence the employee has the denied to sign tech log which have stated
that’s the aircraft is fit and resay to fly. hence this have been noticed but the desecrate generate
of civil aviation and recent way have the cancellation
Future
In the recent term , there kingfisher have the management which have failed to come with their
convincing plans to order to have the bringing the necessary funds for the voluble revivals. To
be sure, that’s the kingfisher license an be renewed but it is important to have the wondering
that’s the DGCA have the taken hi time the management as the serious impact (Ghosh, 2018.).
There firm have the debt of almost 8000 crore along with holding the loss similar notes as this
have been considered as the large amount of liability.
In addition to that’s there kingfisher have the taken all loans from the banks to airports to oil
companies . This will allow o have the fly without masking there paid off first. So unless
Kingfisher comes up with a detailed payment plan, trying to bring in a little money just to allow
some planes to fly will not be acceptable to anyone.
As the third major reasons the with every passing day, the airline liabilities’ have only rise in the
erm of insert costs as the loan have been keepings. Hence the company is turning out to
undesirables as there will be no taxpays were willing to have the losses of the funds definitely.
Consequences
No doubt the firm have been identified as there one of the successful airlines in India action
their large amount of the pros and cons which have celery lead to thereto he downfall of the
success line. The kingfisher has been one of the luxurious flights with the known as well brad
and financial statuses. But on the other hand, the firm have failed to manages there the
management practices and the structure of organization have not been uniformly planned. In
addition to that’s the company have the incessive failure in granting the return as compare to the
investments. He firm has the stronger level of connection with their political pastises and with
parents United Breweries Group which supports them a lot. But the sales are getting lower day
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by day due to increase level of cancellation of flight and delayering as the customer were not
satisfied with services.
As the part of the consequences the company have failed to take the respective decisions to meet
the need and wants of the customer and employee both (Debnath and et.al., 2020). As per the
benefit of the company, Vijay Malays should have their hiring of the professional and to fully
trained CEO which take he implementation of the strategic planning’s in order to control the
situation in effect manner.
Conclusion
From the above file , it can be conclude as business crisis has been the event with clear level of
potentiality to threatens the success and health of the companies. The firm have their short but
lasting impression of the aviation industry. The problem situation have been continues as the
firm have the shutdown stoppage in the immortalised the international operations. As per the
report, it has been stated as there were almost 366 flights at domestic levels and the 20
international flights which were run by the business in which the firm have the 67 aircrafts. The
kingfisher has been one of the luxurious flights with the known as well brad and financial
statuses. But the sales are getting lower day by day due to increase level of cancellation of flight
and delayering as the customer were not satisfied with services.
Recommendation
The company have the increase perspective of loss due to there overdue tax, fuel and suppliers
as only some of the flights are actually working. The firm should make the proper strategy or the
formation the ladder of success as some investments to have clearing all dues of fuels and
overdue tax.
The firm should boost here employee morals which is significant important for he staff and pilots
so that they could never be dissatisfied.
As the Malaya have the direct control over the managing of the business terne to make him miss
creasing factors which have affect the organization at the larger level (Pandey. and Pandey,
2016). So the firm should have development of clear organization structures with the help of
various talented minds adding in success of airlines.
The firm have need for hiring the experience staff so that’s no passenger have there feeling of
getting upset and handle theme in perfect manner.
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But Kingfisher Airlines have to do some strategies so that they can keep their customers.
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References
Books and Journals
Online
Kolte, A., Capasso, A. and Rossi, M., 2018. Critical analysis of failure of Kingfisher Airlines.
International Journal of Managerial and Financial Accounting, 10(4). pp.391-409.
Panigrahi, C.M.A and et.al., 2019. A case study on the downfall of kingfisher airlines. Journal of
Management Research and Analysis, 6(2), pp.81-84.
Kolte, A., Capasso, A. and Rossi, M., 2017, September. Predicting financial distress of firms. A
study on bankruptcy of Kingfisher Airlines. In 10th Annual Conference of the EuroMed
Academy of Business (pp. 735-749).
Ghosh, S., 2018. Crisis of Kingfisher Airlines:-Strategic Turmoil. Invertis Journal of
Management, 10(1and2), pp.1-8.
Debnath, P, and et.al., 2020. A Study on the Causes of Financial Crisis in the Indian Aviation
Industry with Special Reference to–Kingfisher Airlines. Journal of Management (JOM), 7(1).
Pandey, A. and Pandey, P., 2016. Kingfisher airlines–“flying the bad times”: A human resource
perspective. NeilsonJournals Publishing.
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