Skip to main content

Lessons learnt from Kingfisher Airlines Mishap

No one but Kingfisher Airlines  alone is to be blamed for its downfall. Yet, it teaches interesting lessons that its peers can avoid.

Pruning Costs: In a bid to provide a range of facilities right from beverages to meals, the company’s costs increased sharply. Its peers such as SpiceJet, Indigo Airlines and Jet Airways India, concentrated either on regional connectivity or price war. Kingfisher Airlines also had international operations, which ballooned its costs. Also, it was not prompt like its peers in exiting from loss-making routes. Instead, it added routes. It was only after the company realised it was bleeding beyond description that it announced its decision to cut down on the loss-making routes. This blew the company’s balance sheet and impacted its profitability. According to the June ’12 quarter, the company’s total expenditure as a percentage of its net sales is 304%, while for Jet and SpiceJet, it is 96% and 98%, respectively. Gradually, the company lost cash. And as they say in the markets - sales are vanity, profits are sanity and cash is reality. The company did not pay much heed to this reality.

Unplanned Expansion: Another imprudent strategy that worked against the company was its strategy of expanding aggressively even as it struggled to maintain its operations up and running. Today, the company has over 60 aircraft from over 35 when it started flying and there are more aircraft that are pending delivery. Such aggressive expansion plans even when its operations have been in doldrums have taken a toll on the company. There have been incidents when the company has had to ground its aircraft due to engine problems. Also, it has cancelled flights due to poor servicing of its aircraft. These factors hurt the credibility of its brand to a large extent. Besides, the company also did not emerge as a strong player in the price war game, which most airlines gain in times of low capacity situation in the airline industry.

Lessons learnt from Kingfisher Airlines mishap
Lessons learnt from Kingfisher Airlines mishap. No one but Kingfisher Airlines alone is to be blamed for its downfall. Yet, it teaches interesting lessons that its peers can avoid. Source: Share · Tweet · Share on Tumblr. Like this ...
See all stories on this topic »
Virgin wins Heathrow slots, targets Scotland
Indian Express
Rivalry between Virgin Atlantic, which is part-owned by Singapore Airlines, and BA dates back more than 20 years to the so-called dirty tricks affair, when Virgin accused BA of conducting a smear campaign. That ended with BA being forced to make a ...
See all stories on this topic »
Novel method to streamline airlines boarding
Business Standard
Researchers from Curtin and Beihang University, in Australia and China, respectively, claim there is a "third way" to streamline airplane boarding. Tieâˆ'Qiao Tang from Beihang said that while modelling had previously been done on factors such as ...
See all stories on this topic »
Southwest Airlines Relocates Hurricane Sandy Animals
CBS 11
The dogs and cats, from Save A Pet on Long Island and Delco SPCA in Delaware County, were flown across the country on a Southwest Airlines chartered flight to Helen Woodward Animal Center in Rancho Santa Fe, California. The animal relocation is ...
See all stories on this topic »
Emirates Airlines Soars With New Windows 8 Business Application and HP ...
Sacramento Bee
19, 2012 -- /PRNewswire/ -- Emirates, one of the fastest-growing airlines in the world, announced today at the Windows 8 launch event in Dubai the development of a line-of-business application for Windows 8 called Knowledge Driven Inflight Service (KIS).
See all stories on this topic »
Lufthansa in talks with Turkish Airlines
Financial Times
Lufthansa is holding talks with fast-growing Turkish Airlines about the two companies deepening their co-operation, in a move that underlines how the German airline is unwilling to strike up a partnership with one of the Gulf carriers.
See all stories on this topic »
Ethiopian Airlines and ASKY Airlines First to Take Delivery of Dual-class ...
Nov 19, 2012 (Menafn - M2 PRESSWIRE via COMTEX) --Aerospace - Bombardier announced today that Addis Ababa-based Ethiopian Airlines is the first airline to take delivery of Q400 NextGen turboprop airliners outfitted with a dual-class configuration on ...
See all stories on this topic »
Southwest Airlines jet that lost cabin pressure Saturday back in service after ...
Dallas Morning News (blog)
The Associated Press reports this morning that a Southwest Airlines jet that lost cabin pressure in flight Saturday night has returned to service after undergoing maintenance. A passenger who was on the flight provided WFAA-TV with cellphone video ...
See all stories on this topic »


Popular posts from this blog

Guest Post Available on these sites

Guest Post Available on these sites. At just 100$ [For all Sites] Contact  +91 9977513452

ship parts, ship parts names, ship parts diagram, cruise ship parts, pirate ship parts names, sailing ship parts,, model ship parts,

 ship parts ship parts names ship parts diagram cruise ship parts pirate ship parts names sailing ship parts model ship parts ship parts kotor ship parts swtor ship parts kotor, ship parts swtor,

Online Blogger Training Program

Online Blogger  Training Program 5 Days Basic  Online Blogger  Training Program [Classes Mon To Fri  ]    2021 To    2021  Timing : 5PM to 5:45 PM  Present Online Blogging  Training Program [5 days a week for 1 Week Only ]  Age : 10Years to 35 Years Only Fees : USD $100 or  INR 899  Work From Home [WFH]   Free Blog  for All  Topics  What is a Blog and Blogging Find a Blog Niche.  Write about What You Love  How to Start a Blog  [Step By Step]  10 Places to Promote Your Blog Posts  To apply for this Position Contact Send us Your following Info on WhatsApp  +91 8851365156  +91 9977513452 Dept :   Online Blogger  Training Program 1. Full Name----------------- 2. Date of Birth---------------- 3. City ------------------- 4. Gender --------------    5. Age -------------- 6. Univ / Ins  -------------------- 7. Education : 8. WhatsApp : 9. Fees Rs 799 by GooglePay  9329737330  PayTm 9826037330 Plz Contact  our Corp Team Manbir Kaur   [Aero Engineer]  Director [Business Dev