KFA was an airline for people with a taste for luxury.
While its astronomical fares pushed it out of the bounds
of the country's biggest consumer section - the middle class - the airline's in-flight service standards were set too high to maintain for a long time . Fliers were treated to expensive wine, quality food and best entertainment facilities even on domestic, short distance flights. The airline staff, till the time they got their salaries, were among the best paid in the country.
Reasons for down fall...
1.No network planning- "A me too approach" kingfisher tried to copy the network of arch rivals " jet airways".Shifting its international operations base from Bangalore where it was the sole indian carrier offering wide body services to mumbai..the home base of both Jet airways and Air India..
2. Air craft fuel price
3. Economic down turn
4. Unable to read the mind of Indian customer.coz he s not for common man..
5. He is diversified in various fields like cricket, F1 and others..but didnt coined any individual CEO's for every individual field..
6. Inability to hike fare..due to competition..
1. Started in the month of Nov..KA could nt pay pilots, stewardesses, fuel prices.
2. Got total debt of 7K crore..
3. It had operational loss of 1027 crores for last year operation. 4, Bangalore and Hyderabad airports ask KF for landing charges before \ they allow KF planes to land
5. Even filed a court case for recovery on unpaid dues of over 250 crore But cheque of 151 crores to clear dues recently bounded which further worsens the situation..
6. It has no assets that it can selll..
Then strike and others..by those workers for not payin their salary.. They refused to certify the planes, demanding payment of at least four months' salary and that too before Diwali..
The airfares have been on a constant rise with 40-50 per cent hike compared...
Please join StudyMode to read the full document