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 Kingfisher Airlines (KFA) operating in India since May 2005 founded by Vijay Mallya.  KFA never had had a profitable quarter & was grounded in Oct  Loss on Mar-2013 is Rs16,000 crore 2

3 Fuel Cost Interest Cost Inventory Cost Maintenance Cost Operational Cost Over Spending Training Cost Deregulation Act High Airport Tax Strict Rules by DGCA Competition Recession Risky Projects Internal Conflict No Long Term CEO Oversizing Multiple Hopping Wrong Terminal Selection More Turn Around Time Poor Service Quality Wrong Acquisition of Deccan Airlines Indecisiveness Ineffective Business Model Many Unprofitable Routes Cost Focused, rather than Service Muddle Headed Decisions Whimsical

4 A) Financial External Fuel Cost Interest Cost Internal Inventory Cost Maintenance Cost Operational Cost Over Spending Training Cost B) Regulation Governent Deregulation Act High Airport Tax Strict Rules by DGCA Industry Competition Recession

5 C) Management Human Resources Internal Conflict No Long Term CEO Oversizing Operational Multiple Hopping Wrong Terminal Selction Quality of Service More Turn Around Time Poor Service Quality

6 D) Strategy Managers Wrong Acquisition of Deccan Airlines Indecisiveness Ineffective Business Model Many Unprofitable Routes Owners Cost Focused, rather than Service Muddle Headed Decisions Risky Projects Whimsical

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9 PPT downloaded from