Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 12 pages
Data source: Published sources
Topics:
Kingfisher Airlines; Indian Aviation Industry; Dr Vijay Mallya; Market share; Revival strategy; Ministry of Civil Aviation; Government of India; Air Deccan; Banks and other financial institutions; Potential investors; Outstanding dues; Reasons for decline; Challenges; Merger and acquisition; Operating costs
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Abstract
Kingfisher Airlines, one of the leading airlines in the Indian aviation industry was going through a rough phase. The airline which was known for its flamboyant image was caught up in a financial turmoil due to non-payment of dues, rise in fuel prices, increase in duties and surcharges and mounting challenges from the competitors. This had affected its brand image as well as its market share in the Indian aviation industry. Kingfisher which was at the 2nd spot in terms of market share till September 2011 had fallen to 5th spot in January 2012 with a market share of just 11.3%. Apart from that, the company faced severe financial crisis due to losses made by the company since FY 06 and lack of fresh investment from the investors owing to non-payment of existing dues. To overcome this financial turmoil, Kingfisher adopted various strategies including restructuring its airline business and talking to potential investors for fresh investment. Though Kingfisher had adopted various strategies, there had been no major progress achieved on the revival front. With the freezing of its various bank accounts by tax authorities due to non-payment of dues, removal of its name from the International Air Transport Association global airline-to-airline account glade structure and no help coming from the potential investors, Kingfisher was finding it difficult to come out of the turmoil. This turmoil posed a great challenge for the company as it was in the verge of bankruptcy unless it overcame the crisis. Apart from that, it needed to sustain and improve the market position in ever increasing competitive aviation market. In the backdrop of the above scenario, it remained to be seen whether Kingfisher can bounce back strongly from its current financial situation? Will its new strategy work for a revival of fortunes?
Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 7 pages
Data source: Published sources
About
Abstract
Kingfisher Airlines, one of the leading airlines in the Indian aviation industry was going through a rough phase. The airline which was known for its flamboyant image was caught up in a financial turmoil due to non-payment of dues, rise in fuel prices, increase in duties and surcharges and mounting challenges from the competitors. This had affected its brand image as well as its market share in the Indian aviation industry. Kingfisher which was at the 2nd spot in terms of market share till September 2011 had fallen to 5th spot in January 2012 with a market share of just 11.3%. Apart from that, the company faced severe financial crisis due to losses made by the company since FY 06 and lack of fresh investment from the investors owing to non-payment of existing dues. To overcome this financial turmoil, Kingfisher adopted various strategies including restructuring its airline business and talking to potential investors for fresh investment. Though Kingfisher had adopted various strategies, there had been no major progress achieved on the revival front. With the freezing of its various bank accounts by tax authorities due to non-payment of dues, removal of its name from the International Air Transport Association global airline-to-airline account glade structure and no help coming from the potential investors, Kingfisher was finding it difficult to come out of the turmoil. This turmoil posed a great challenge for the company as it was in the verge of bankruptcy unless it overcame the crisis. Apart from that, it needed to sustain and improve the market position in ever increasing competitive aviation market. In the backdrop of the above scenario, it remained to be seen whether Kingfisher can bounce back strongly from its current financial situation? Will its new strategy work for a revival of fortunes?
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Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 7 pages
Data source: Published sources