Strategy Formulation : “Kingfisher Airline”
“Strategies adopted by Kingfisher airlines & causes of its Failure”
Submitted by : Japkirat Singh Oberai
Submitted to : Dr. Supriti Mishra
1) [ ABSTRACT ]
2) [ INTRODUCTION ]
3) [ HISTORY ]
4) [ STARTING OF THE CRISES ]
5) [ DEBT RESTRUCTURING ]
6) [ CRISIS TILL CONTINUE ]
7) [ FUEL DUES ]
a. HPCL: In Jul 2011, Hindustan Petroleum
8) [ AIRCRAFT LEASE RENTAL DUES ]
9) [ AAI REPORTS ]
10) [ THE CRISIS CONTINUE ]
11) [ FROZEN BANK ACCOUNTS ]
12) [ IATA SUSPENSION ]
13) [ SWOT ANALYSIS ]
b. [ KINGFISHER’S STRENGTHS ]
c. [ ...view middle of the document...
This event brought the whole industry under public scrutiny. Using the stakeholder perspective, the case suggests that owing to an excessive focus on one stakeholder group, the customers; and the neglect of the other four stakeholder groups, namely, suppliers, employees, community and society, including government agencies, and also the owners or shareholders; the organization had nearly gone bankrupt. The top management has to chalk out a strategy that reengages with all the stakeholders to get them to support it during Kingfisher's struggle for survival and to put the airline on a track of recovery.
* Indian Aviation Industry is one of the fastest growing markets in the world. But nowadays it is in the news due to different reason. And that is the failure of one of the leading aviation player - Kingfisher Airlines.
* The airline has been facing financial issues for many years. Till December 2011; Kingfisher Airlines had the second largest share in India's domestic air travel market. However due to the severe financial crisis faced by the airline, it has the fifth largest market share currently.
* Even the company have no funds to pay the salaries to the employees and is facing several other issues like fuel dues; aircraft lease rental dues, service tax dues and bank arrears.
* This case outlines the financial turmoil of the Kingfisher in detail.
Kingfisher Airlines is an airline group based in India. Its head office is The Qube in Andheri (East), Mumbai; and Registered Office in UB city, Bangalore. Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based United Breweries Group. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-cost carrier Kingfisher Red. The airline started commercial operations in 9 May 2005 with a fleet of four new Airbus A320-200s operating a flight from Mumbai to Delhi. It started its international operations on 3 September 2008 by connecting Bengaluru with London. The airline has been facing financial issues for many years. Till December 2011; Kingfisher Airlines had the second largest share in India's domestic air travel market. However due to the severe financial crisis faced by the airline, it has the fifth largest market share currently, only above Go Air. Kingfisher Airlines is one of the only seven airlines awarded 5- star rating by Skytrax along with Cathay Pacific, Qatar Airways, Asiana Airlines, Malaysia Airlines, Singapore Airlines, and Hainan Airlines. Kingfisher operates 250 daily flights with regional and long-haul international services. In May 2009, Kingfisher Airlines carried more than 1 million passengers, giving it the highest market share among airlines in India. Kingfisher also owns the Skytrax award for India's best airline of the year 2011.
Kingfisher Airline is a private airline based in Bangalore, India. The airline is owned by Vijay Mallya of United Beverages Group....