Collapse of Kingfisher Airlines

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  • Topic: Kingfisher Airlines, Southwest Airlines, Malaysia Airlines
  • Pages : 3 (876 words )
  • Download(s) : 97
  • Published : May 14, 2013
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Collapse of Kingfisher Airlines

Kingfisher , Sony and Kodak have one thing in common . i.e. They are finding it difficult to reinvent themselves. They are trying hard to be a phoenix but will they truly rise from the ashes or simply fade away is the real question.

Let us take the issue of Kingfisher here. One of India's most high profile airlines few years back , now in shambles. It is really interesting to ponder that in same market scenario, one of the competitors of Kingfisher is flying high and high. Yes, Indigo Airlines is the most profitable airlines in India. The question is the difference between discipline or grandeur. What makes one company succeed, while another, in the same operating environment, falter? One of the reason is Mr. ( or Dr. in which degree?) Vijay Mallya flamboyant nature.

Kingfisher was launched as an all-economy, single-class configuration aircraft with food and entertainment systems. After about a year of operations, the airline suddenly shifted its focus to luxury. When an airline keeps changing its model and takes to random expansion, there is no time for the airline to stabilize. After Kingfisher’s plunge into luxury came its next folly—a merger with Air Deccan, an airline formed by Captain G R Gopinath in 2003. I believe the fall of Kingfisher airlines started the very day when they bought Air Deccan. Capt. Gopinath , the owner of Air Deccan can be termed as shrewd but smart investor who knew when to part with his investment , just at the right time. The all-economy configuration of Air Deccan was rebranded and called Kingfisher Red, which continued to operate as its low-cost wing till recently.

Kingfisher ended up spending Rs 550 crore on an airline that had losses of over Rs 550 crore. It is widely believed that Kingfisher merged itself with Air Deccan so that it could classify as an airline with five years of domestic flying in 2008, thus fulfilling requirements to fly international routes. The fact that Jet had...
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