Collapse of Kingfisher Airlines Essay

Kingfisher , Sony and Kodak relieve unitaryself one matter in common . i.e. They are purpose it difficult to reinvent themselves. They are nerve-racking hard to be a capital of Arizona but will they truly burn up from the ashes or simply fade outside(a) is the real question.Let us mesh the issue of Kingfisher here. One of Indias well-nigh noble profile respiratory tracts few old age back , now in shambles. It is really interesting to ponder that in uniform market scenario, one of the competitors of Kingfisher is flying high and high. Yes, Indigo gentle windlines is the most deriveable air hoses in India. The question is the difference between coach or grandeur. What makes one partnership succeed, patch another, in the same operating environment, bumble? One of the reason is Mr. ( or Dr. in which degree?) Vijay Mallya flamboyant nature.Kingfisher was launched as an all-economy, single-class compliance aircraft with food and entertainment systems. After virtually a year of operations, the airline abruptly shifted its focus to luxury. When an airline keeps changing its modelling and takes to random expansion, there is no judgment of conviction for the airline to stabilize. After Kingfishers clop into luxury came its next follya merger with Air Deccan, an airline create by Captain G R Gopinath in 2003. I believe the decline in quality of Kingfisher airlines started the very day when they bought Air Deccan. Capt. Gopinath , the proprietor of Air Deccan can be termed as shrewd but smart investor who knew when to furcate with his investment , just at the powerful time. The all-economy configuration of Air Deccan was rebranded and called Kingfisher Red, which continued to lock away as its low-cost wing boulder clay tardily.Kingfisher ended up spending Rs 550 crore on an airline that had losses of over Rs 550 crore. It is astray believed that Kingfisher merged itself with Air Deccan so that it could secernate as an airline with five d ays of domestic flying in 2008, thus fulfilling requirements to fly international routes. The fact that gush had meanwhile swallowed Air Sahara didnt help, fuelling a competitive race to be the biggest airline around. Essentially, jet fuel prices began to sky-rocket and soon fey $150. Then came the 2008 recession that made basics in the airline industry worse, which is when the airline launched its international operations.Some companies just crack to learneither from the examples that its peers may have set for the industry, or from its own historic mistakes. Now, Kingfisher has decided to change its model still againdiscontinuing its Kingfisher Red brand and all told converting its fleet to a dual class, full-service configuration.Kingfisher was enable to Mr . Sidhartha Mallya by his father on his natal day i.e. a Near Zero work through in running a partnership and the later CEOs appointed by Mr . Mallya couldnt bring any significant issuing too . His over lunacy in pe tty things comparable parties and Kingfisher Calendar excessively lead to inadequacies in his finances. .IPL is also one of the reason for Kingfisher downfall because it is known that numerous of the money was diverted to IPL from Kingfisher airlines, resulting which they defaulted in Loans and recently became a NPA (non performing asset) to its leading bankers like SBI .The lack of trust was shown recently when Mr Mallya asked the judicature of India to bond paper him out. The new minister Mr. Ajit Singh intelligibly told that the Government will not bail out private airline because Air India is itself in need to bail out. I personally feel that Mr Ajit singh made a good decision because When Kingfisher doesnt fall out public anything in return of its profit , then why is it asking for familiar hard earned money ( income measure money) to bail him out.The lack of management and trespass of it the soaring petrol prices, the airport charges added to Kingfishers humiliation. sponsor cancellation of flights , nonpayment to employees, rude staff fit(p) the ground for Kingfishers grave. Kingfisher reputation took a slaughter when it was known that employees tax were not submitted to politics on time since the last tercet old age Government of India also freezed 40 Kingfishers bank account. Latest give-and-take is that Kingfisher employees have been not paid tether months remuneration. We all know how we feel when our net is delayed by a day, reckon what happens to them when they are not getting salary for last three months. How do you birth the employees to keep a smiling bet to its customers when they themselves are crying . A company which forgots its employees, is also soon forgotten. A determinate example is Kingfisher airlines. Mr Mallya had to sell 49% of his self-will of Force India( F1 car) to Mr Subrato Roy to get kingfisher going ( possessor of ailing airline Air Sahara , years back) , but it too failed to save the airlines from tatters.I still have hope from Mr Mallya that he will refrain from over indulgence and concentrate on his fragile business. Its time he and his son sound responsible and start this company from sugar instead of late night parties and IPL and took transport from Indigo airlines who proudly claimed themselves as commencement cost airline and exceeding the customers witch in every way they can.