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The Rise And Fall Of Kingfisher Airlines

Kingfisher is a major airline based in Mumbai, India. It is the fifth Indias airlines offering major passenger airline where international and domestic flights are provided to the customers with very flexible fares. Kingfisher is one of the major airlines in India and it was established in 2003. It really is owned by the Bengaluru based United Breweries Group. Basically the commercial operations are were only available in 9 may 2005 with the fleet of four new Airbus A320-200s Operating flight from Mumbai to Delhi. Then the next international procedures are started on 3 September 2008 by connecting from Bengaluru to London.

The Kingfisher airline has been facing financial issues for many years. Kingfisher airlines have the next major share in the flights market till December 2011. However due to the

astringent financial crisis faced by the Kingfishers airline, it has the fifth major market share currently in support of above Go Air Airlines.

Kingfisher Airlines is one of the one seven airlines that are 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 including domestic and international services. Kingfisher Airlines carry more than 1 million passengers that assist the Kingfishers Airlines to help make the highest market share among all other airlines in India in-may 2009. Kingfisher also holds the Skytrax award for just one of the India's best airline of the entire year 2011.

Background: Main issue of the downfall of the Kingfisher Airline.

All things are going in a very good manner and kingfisher reaches its peak however in 2005 the airline faced many problems in the operations, the Airlines then reported just as loss. But the situation become worst when the new airlines called Air Deccan is adopted by the Kingfisher airline in 2007.

Due the collaboration with the new airline the Kingfisher suffered a lack of over Rs. 1, 000 Crore continuously for 3 years. Inside the Starting of 2012, the staff of Kingfisher airline is going on strikes and it also faced an extremely big loss of over Rs. 7, 000 Crore with 50 % of the amount of money is bankrupted. Within this tough situation the faces mainly faced financial problem and also to overcome the problem the airline went for loans, in order to cover it. But the heavy interest and debt, in November 2010, the company adopted a way to reduce the burden the airline adopted debt restructuring on those total 18 leading lenders, those have landed total Rs. 8, 000 crores, they agree to slice the interest the rates and convert part of loan into equity. According to the contract the lenders have to convert the debt into shares which is changed into equity. Because of this company in a position to cut down the common interest to 11% and save Rs. 500 Crore each year in the interest cost.

The use of the strategy Debt restructuring also didn't help the airline a lot; no doubt employing this it reduced the interest charges by Rs. 500 crores every year, but because of the high increase in cost and a great many other factors the business started faced problems of liquidity. Because of no funds available the company also faced these types of problems like delayed salary there are over 6, 000 workers which are working in the business and following the financial meltdown company have delayed salaries of the staff that will affect the workers a lot because they're working like the same and we can say they are working more than normal but these kind of problems reduce the personnel morale and dissatisfaction factor also arises. Because of the non-availability of the funds also, they are many things that will effect like due fuel, Service tax, Air craft lease rental due and so many more.

Current Situation: Problem still continues

Kingfisher airlines began to cast down into fresh crisis. Many flights are cancelled and many aircrafts are grounded. The company shut down many important international procedures and closed the booking of the tickets. Kingfishers have many aircraft in support of few were operating and presently very less airplanes are operating which dropped highly in market share. Main leading State bank of India also not giving more loans to the business unless they pay the previous amount. Now a day it is very hard situation for kingfisher airlines lately.

The service of airline provided by Vijay Mallya is not glamorous as it was previous times because many flights are cancelled when customers are waiting to departure and this will underestimate a lot to customer. The management is main issue within the Kingfisher airlines they need some expert CEO's that help check the activities every day but Vijay Mallya is the only the one that control the complete company this can be the biggest reason behind downfall of the kingfisher airlines. In big organizations lots of discussion and ideas are needed that help to make any decision easily.

This causes which disturbs the relation between the employees and Vijay Mallya because there should be some time directed at every single employee so that they feel motivated and feel their suggestions or any need of help receive by the business, this help them to stay satisfied plus they use their full effort. Vijay Mallya always kept saying that the real reason for downfall of company is that the rising fuel pricing and other factors contributed the downfall of the company. But there are other factors also.

Some other reasons that also donate to the downfall of the kingfisher airline:


Now a days traveling by plane is not a large issue because there are lot of airlines from which we can select any one according to our financial status. Every flight has its own way of treating passengers because nowadays going one spot to another is not a large deal all matters how was our journey what are the experience and how comfortable are you in the whole journey.

As being truly a 5 star airline they offer good service to the passengers but the prices are also very high only the high profile or above the financial level people adopt Kingfisher airline. Due to the luxurious level of treatment they are prepared to pay more than other airlines charge. But they need to be economical so every monetary person can likewise have the experience this type of luxurious treatment this also help them to gather increasingly more customers.


In today's world technology plays a great role in any type of the business. Kingfisher airlines don't provide a TV screen on the back of the seat, so that each passenger has its own personal TV. Now people use technology they would like to do the whole work with the help of internet and do all the task while sitting in their home. This also attracts customers to do all the booking while relaxing in their home and they won't need to stand in the long queues on the ticket counters.


Now a days economical issues is a major concern because people are actually check not only the luxurious treatment in addition they check whether it is worth going or not. There a lot of bank credit options that exist regarding travelling this are also the reason why that influences the sales of the aviation industries.

In India there are lot of factors that affect the organisation like the inflation, rates of interest and recession. You can find government policies that effect the organisation a lot. You will find lot things which have to consider while planning the financial factors because that depend a lot on the success of the organisation.


Nature also effect the aviation industry a lot because the climate impacts a lot on the aviation industry weather should be stable in enough time of the flights because if the climate is not good they are simply delayed and this disturb the clients a lot.

Passengers who pay so many amounts to get good service and comfortable journey among if something happen this disturbs a lot. If something happen like delay in the flights airline have to provide facility and accommodation for the clients this costs too much to the airlines but they want to do for the passengers to calm them down which help them to understand the problem and they don't take a chance to lose the customers because if the customer have any bad experience they might not go next time with the same flight because they're many others options available to them. In India weather is stable for the majority of the time and passengers are not use to these type of situation so aviation industry must be prepared if any thing happens.


In India atlanta divorce attorneys 5 years government changes and and yes it is a democratic country. Kingfishers have great benefit for this because the owner of kingfisher Vijay Mallya have good political network which helps to their airline. Without doubt, the political network is excellent but this not always help because all have to check out the federal government policies and rules.


Rising Fuel pricing is also the main issue in India. The aviation industries have to pay massive amount money for fuel. To overcome this issue aviation industry increase of reduce the degree of services to the passengers that assist those to cover it up.


Indians are very ethical people they always think before buying anything they check which thing is wonderful for them and also gives some benefits to them. Like in India there a lot stationary products that happen to be collaborated with some non-profit institute or any other institute gives some amount when someone buy it, majority of people willing to buy that product because they help the needy people. In past Kingfisher gives value for the money that is why people are willing to give additional money in the end kingfisher airline is the 5 star rated airlines.


No doubt kingfisher airlines are one of the successful airlines in India. But there are lot benefits and drawbacks there which cause them to downfall of the successful airline.


Kingfisher is one of the luxurious flights in India.

Kingfisher is a well-known brand and the financial status of the business is very good.

The connections between the political and the owner of the Kingfisher airlines are very strong.

Kingfisher has a solid relationship with parent United Breweries Group which supports them a lot.

The customer support is very healthy. Kingfisher provide very luxurious journey to the passengers.

The staff is highly trained and very professional with customers.


The management practices are very poor and the organization structure is not formed properly.

Kingfisher airline is not producing the expected returns from they can be spending.

Sales are getting lower and lower due to cancellation and delayed flights which customers don't like it.

Due to the 5 star brand of the business it is spending more than normally which is very hard to recover the money.

Things need some changes:

There are lots of things which can be would have to be change which help the kingfisher airlines to recover. Aviation industry is currently days are extremely popular and competition gets tough and tough. To successfully run the aviation industry there are many things which have to keep in the mind while successfully run the business enterprise. In Kingfisher only the owner Vijay Mallya is having the direct control on the business and due this you can find problems occur.

In kingfisher there is huge network and there are many employee works there and to meet the needs of the employee only 1 person cannot keep it. There has to be some professionally and fully trained CEO must be hired to regulate whatever is the problem. Vijay Mallya also taken wrong step while cutting the salary of the employees and even the salaries are delayed for many months and based on the Herzberg's Motivator-Hygiene Model the clients are Dissatisfied because they're not getting the salary on time.

In the recession period of Kingfisher airlines they also misbehaved with some customers due to the frustration which will lose their customers. In this period the Kingfisher airlines introduced a new airline called Kingfisher red to pay some expenses since it is comparatively low cost.

Once there is an incident occurs passengers booked the ticket for Kingfisher Airlines so when they come to the flight the recognize that this isn't Kingfisher fisher this is Kingfisher red and when the passenger asked for that they asked that there is technical issue in the website it was not distinguishing the two airlines differently but this is not a valid reason because as I said earlier that the technology plays a great role in today's world people are actually days very techno used plus they know which flight they may be booking. The main question is the fact that why the kingfisher is owning a cheap airline in the end Kingfisher is one of the very best brand 5 star airline this reduces the trustworthiness of the airline and also misbehaving with customers also give wrong impact on them so to handle this Kingfisher airlines must be have some arrangement to take care of this kind of stuff. To take action experience staff is required if any conflicts occur then handle them with care so that no passenger get upset and feel biased everyone should be treated same.

Competition also have a significant issue because while competing with other Aviation airlines they have to consider so many expects that will affect the Kingfisher airlines because other airlines provide more facility and there low cost of the fare attracts the customers, But Kingfisher Airlines have to do some strategies so that they can keep their customers. Competition is not only with Aviation industry in India majority of folks is going for the reduced cost carriers in India. Railways are also competitors because now Indian Railways are safe mode to travel plus they cost very less as compared to airline. To plan according to the budget of the airlines and equally economical to the people, trained CEO's are required to get the job done done well.

Owner of Kingfisher airlines Vijay Mallya also done one more thing that they only targeted the passengers that are willing to pay more than normal. They only need luxurious treatment, this is a good but in the period of time of 2005 to 2008 is quickly earned money period for Kingfisher and Vijay Mallya also make a great deal profit then he invested money on others places like Cricket, Alcohol and so many more. Due to the easy money Mallya expanded a lot their empire that is very difficult to handle and this is one of the reason why which makes the Kingfisher into trouble.

Kingfisher Airlines have to take following step to make things good:

With lot of increase in loss of Kingfisher airlines and overdue of tax, fuel suppliers and airports in support of several flights are working. If indeed they want to again successfully run the business then promoters need to get some cash first then the Kingfisher airlines firstly clear the due of fuel and overdue of the tax with this money and then they should step up the ladder of success.

The morale of the employees is highly recommended first because they're the very important to the Kingfisher airline especially the staff and pilots they shouldn't be dissatisfied. So Kingfisher airlines should must clear all the due of the salary of the employees because due to unpaid they need to suffer and their own families also suffer with them. They can not afford to reduce quality pilots of course, if this will continue it could be happen that the plant should turn off in future.

Aircrafts found in the Kingfishers used now could be very less and due to the mismanagement of the staff and between your owner leads those to failure because as I discussed earlier Mallya always have the direct control of the business enterprise and may be some factors that are left that are not considered by Mallya that impacts a lot to the business. The perception of the Owner may be somehow wrong that is why the business structure should be clear and really should be produced by various talented minds that help success of the airlines.


Kingfisher is one of the leading and successful airlines in India. The real reason for the downfall of the airline is mentioned above and there are a great many other factors which also the real reason for the downfall of the Kingfisher airline. The organizational structure is principally the major concern in the Kingfisher airlines. In starting the kingfisher is at its peak in those days period is the best time to expand the business enterprise but because of the huge benefits the staff and pilots and the expenses is also are more and more also to successfully manage it many talented person will be required, without doubt they have observed staff and luxurious treatment they provide to the passengers but to organize the whole staff and the airline only Vijay Mallya is getting the direct control onto it which occurs misunderstanding.

When the business enterprise is having great profit then we must have to more alert since when this happen the other rivals always make an effort to get trouble so we can not make profits. Like the other opponents of kingfisher is giving more facility and the expense of other airlines are also less than it is difficult to control for Kingfisher airlines because they're the luxurious and the price tag on the flights are also high because because of the brand name they have to treat the passengers like these are treated previously which is very difficult to take care of but this can be handled by professionals so the passengers not feel and change but this plan gives benefits to the airline and various strategies must do it. Some of them are mentioned above but the organization behavior plays a great role to manage the individuals in the business. This helps the staff and employee and higher status individuals and owner to successfully run the business and maintain a healthy relation between them.

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