Analysis of Kingfisher Airlines' Financial Crisis: A Case Study

This case study analyzes the downfall of Kingfisher Airlines, a prominent Indian airline owned by Vijay Mallya. It explores the company's ambitious goals, financial crisis, and ultimate failure to repay loans. The study employs a secondary analysis approach, examining the airline's background, current situation, and future prospects. Key issues include poor management practices, strategic errors, and the impact of political connections. The study highlights the consequences of these factors, including flight cancellations, delays, and customer dissatisfaction. The conclusion summarizes the issues and recommends strategies such as improving financial planning, boosting employee morale, developing clear organizational structures, and hiring experienced staff. The study references several scholarly articles that provide insights into the financial distress of firms and the downfall of Kingfisher Airlines, providing valuable insights into business failures and crisis management.

RESEARCH PAPER

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).

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.

METHOD
■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
■Secondary analysis is usually contrasted with primary analysis, which is
the analysis of primary data independently collected by a researcher

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.
■ Current situation
■The problem situation have been continues as the firm have the shutdown stoppage in the
immortalised the international operations.
■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
■ 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

Future
■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.
■This will allow o have the fly without masking there paid off first

Consequences
■The firm have failed to manages there the
management practices and the structure of
organization have not been uniformly planned
■ 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 by day due to increase level of
cancellation of flight and delayering as the
customer were not satisfied with services.

CONCLUSION
■The problem situation have been continues as the firm have the shutdown stoppage in
the immortalised the international operations
■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 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
■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

References
■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).