Detailed Report on the Financial Crisis of Kingfisher Airlines

This report examines the financial crisis of Kingfisher Airlines, detailing the company's ambitious goals, the role of Vijay Mallya, and the eventual bankruptcy. It explores the company's operational issues, mounting debts, and the failure to repay loans to various banks. The report uses secondary data analysis to investigate the causes of the crisis, including poor management, high debt levels, and employee morale. It provides a background on the airline's establishment, growth, and eventual collapse, offering a comprehensive analysis of the events leading up to the financial downfall. The report recommends improved management and employee morale to prevent similar crises in the future. The report also includes a list of references, including books, journals, and online sources to support the analysis.

KINGFISHER AIRLINES

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. The main level of issue for the downfall of the kingfisher airline
when in the year 2005, the airline has stated to face various level of problem in operation which
is latterly reported as loss and lastly turned to bankrupt. The company is running under
continuous losses since inception ran high debt and financial closed the operation in 2012.it is
important to have note that So unless Kingfisher comes up with a detailed payment plan of
brining little money, the flight will not be acceptable to anyone. The recommendation for the
company is to trained managements team and CEO who have the better experience working in
aviation industry. In addition, The firm should boost employee morals who are significant such
as staff and pilots to increase the efficiency and effective of company.
Introduction
The business crisis has been the event with clear level of potentiality to threaten 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. Kingfisher Airlines was established in 2003 and ceased operations when its license
was cancelled on 20 October 2012. It is owned by the Bengaluru based United Breweries Group.
The airline started commercial operations on 9 May 2005 with a fleet of four new Airbus A320-
200s operating a flight from Mumbai to Delhi. In this report, there will be discussion on the
financial falling of the of Kingfisher Airlines which is been there second largest share in Indian
aviation industry till 2011. In this report a clear discussion on the kingfisher airlines crisis will
be detailed with current situation and future consequences.
Method
For this report the approach selected for secondary analysis as maximum level of usage of the
secondary data in the research for analysing the different aspect of the Kingfisher airlines
(Panigrahi and et.al., 2019). This method has the analysing of different article related to the
company. This is the research met so which is helpful in saving both time and money. This is
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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
Background
The kingfisher airline was owned by the biggest liquor tycoon of India with an ambitious to the
becoming the industry leader. In India is the person who have great wealth, influence or power
and magnate. Their 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. The firm have achieved more success in gaining the customer
satisfaction with 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. Kingfisher Airlines has a total loss of
around 7000 crore Rupees. In 2010, restructured around 8000 crores with all 18 lenders (of a
consortium of banks led by State bank of India) agreeing to lower interest and convert part of the
loans to equity
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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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Sneha, this report is a good start. It’s an interesting and compelling topic but you need to really
to get into what was happening pre-crisis, acute crisis and post crisis for Kingfisher airlines. I
look forward to seeing more detail.
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