How Kingfisher Can Come Out of Current Adverse Situation?

Topics: Malaysia Airlines, Oneworld, Vijay Mallya Pages: 8 (2187 words) Published: March 26, 2013
“How kingfisher can manage yield to come out of current adverse situation?”

Synopsis submitted to College of Management and Economic Studies for the partial fulfillment of the degree of

Guided by:
College of Management and Economic Studies
University of Petroleum and Energy Studies

Submitted By:

College of Management and Economic Studies
University of Petroleum and Energy Studies ,Dehradun, Uttarakhand, India

Nothing can be accomplished alone. I am very much fortunate to get the sincere guidance and supervision from a number of people.

First, I want to pay my gratitude to the almighty God for the preparation of the synopsis successfully. I gratefully acknowledge the regular support from my guide Dr. Ashish Manohar Urkude who continuously took feeds from me regarding the project, motivated me thoroughly and helped me a great deal by providing me an overall concept on the process of preparing the synopsis. I would also like to thank our Course Co-ordinator Dr. I. Krishnamurthy for his support and guidance which he gave me throughout the synopsis report. I would also like to convey my special regards to our HOD Dr. T. Bangaraju who helped in all possible ways in the making of the dissertation. In preparing the dissertation synopsis, I received active-co-operations from my friends. I sincerely express my heart-felt gratitude for their co-operation, which helped me to conduct and complete this dissertation synopsis. I would also like to thank the entire departmental heads and faculty members of my college (COMES) who were very co-operative and helpful to me from top to bottom level. They helped me by supplying various data, guidelines and required information and direction. Once again my special thanks to my college faculty mentor Dr. Ashish Manohar Urkude who guided me by providing the ideas, documents and possible guidelines for completing this report in full fledge. So it is worthwhile to express my gratitude and close hearted feelings to him for his unconditional guidance. Last but not the least, I convey my special thanks to University of Petroleum and Energy Studies for giving me this golden opportunity to pursue my dissertation.

Vishakha Soni

The “King of Good Times” is facing some grim times at the moment. Airline group chief and billionaire business tycoon, Dr.Vijay Mallya is struggling to keep India’s Kingfisher Airlines afloat due the surging fuel costs and fuel taxes. In the past week, the Bangalore-based carrier has cancelled 200 flights in hopes to reduce its debt from rs. 6,500 crore(INR 1 crore=10 million) (about $1.4 billion) to rs. 3,000 crore ($600 million). Kingfisher has suffered a loss of Rs.1027 crores ($200 million) in the past fiscal year, adding to its mounting debt.

Now the airline is seeking a government bailout while members on the Kingfisher board are meeting to explore ways out of their financial turmoil, including a proposal to sell more than half its property.  Opposition parties in India, including the Bharatiya Janata Party (BJP), strongly oppose a government bailout package to help the cash-strapped airline. Even the chief of Bajaj Auto, Rahul Bajaj, has spoken out against the bailout for Kingfisher, saying “If Bajaj Auto gets into a mess, would you bail me out? “If it’s a free market economy, those who die, must die,” Bajaj told reporters at an economic forum in Mumbai. With the exception of IndiGo, India airline carriers on the whole seems to be taking a hit. Jet Airways reported a loss of $158 million for the quarter ending September. The airline attributed the loss to high fuel and currency devaluation. SpiceJet also reported rs 240 crore (approx $48 million) net loss. The Centre for Asia Pacific Aviation (CAPA) forecasts that the...
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