FIND A SOLUTION AT Academic Writers Bay
The airline is currently going through some bankruptcy problems, forcing the airline to ground many destinations and aircraft. As of 10 April 2012, Kingfisher Airlines serves 25 domestic destintions within India. It suspended all international operations from 10 April 2012 with the final flight between London Heathrow and Delhi. All routes are now operated with the Airbus A320 family, ATR 42s and ATR 72 aircrafts. Its first long haul destination was London, United Kingdom which was launched in September 2008. It has plans to launch new long haul flights to cities in Africa, Asia, Europe, North America and Oceania with deliveries of new aircraft.
All long haul routes used to be operated on the Airbus A330-200. Code share agreement Prior to the suspension from IATA, Kingfisher had code share agreements with: •American Airlines (One world) Kingfisher Airlines began its operations on 9th May 2005 with its inaugural flight being from Mumbai to Delhi. Who at that point of time would predict that 7 years down the line, this shinning A? 320 would be the only flight operative out of over 200 other routes? Indian Airlines was nowhere close to be quoted as a class a part carrier so only Jet Airways and Sahara were dominant players in the Indian aviation industry.
Kingfisher’s income for year ending on 30th June 2006 was INR 13. 5 Billion but this amount couldn’t over shadow losses amounting to INR 3. 4 Billion in 2006: Kingfisher Airlines was soon becoming an airline synonym with five star air travel and was becoming famous among business travelers. In December 2006 Kingfisher announced that it would provide live in-flight entertainment which was first in its class by partnering with DTH pioneer Dish TV India Limited . Also the airlines went in some serious talks with Air Deccan which was supposedly working on a totally different and virtually an opposite site business model providing extremely low fare based services.
The income for period ending 30th June 2007 increased INR 4. 1 Billion. But losses also acumalated to INR 4. 19 billion 2006:- 2007: Things were pretty much on right track and were almost going as per plans. Kingfisher had carried 17. 5 Million passengers with a fleet of 41 aircrafts and a schedule of 255 flights. Ironically the situation today is such that Kingfisher is fighting to even fly mere 10% of those flights. Finally by the year end on December 19th 2007 Kingfisher Airlines acquired entire 46% of Deccan Aviation in Air Deccan The period ending 31st March 2008 generated gross income of INR 15. 4 Billion and losses dramatically were reduced to INR 1. Billion but this does not include the aftermath of merger of Deccan Since it was a streamlined and well planned year by Kingfisher, this year proved to be the best year right from inception till today . 2008:- Kingfisher Airlines finally became the larger passenger airliner of world’s second most populous nation. Now Kingfisher was carrying 10. 9 Million passengers annually with a fleet of 77 aircrafts operating 412 domestic flights daily. Also this year was quite historic was Kingfisher Airlines as it finally got permit to operate on international routes and on September 2008 Kingfisher flew for the first time overseas from Bangalore to London.
Kingfisher was no offering 3 classes of travel to passengers: Kingfisher First: Premium Business Class which was truly best in class, Kingfisher Class: Premium Economy or the basic economy of flagship carrier Kingfisher and Kingfisher Red: Low fare basic class or in other words the new name of Air Deccan. Financial statements for year ending March 31st 2009 were actually supposed to be consolidated statements of both Kingfisher Airlines and Air Deccan hence now the income increased many folds to INR 55 Billion but so did the losses which increased to INR 16 Billion. 2009:-: Kingfisher Airlines continued its run of the being the nation’s largest passenger carrier and was having a healthy market share of 22. 9% with 11 Million passengers flying with Kingfisher in last fiscal year.
Despite of the increase in flights, Kingfisher failed to capture market unlike its competitors and this should have been considered as a red flag by the company which unfortunately went unnoticed by the company. The airline reported an increased gross income of INR 64. 9 Billion and reduced losses of INR 10. 2 Billion for the year ending 31st March 2011 . 2011:- Kingfisher Airlines for the very first time declared in year 2011 that it is having some serious cash flow problems. It simply blamed the same to rising fuel costs. Now the thing that needs to be noticed is that when Kingfisher was not paying its dues to oil companies then how the fuel costs would hit its cash flows so deeply?
Assignment status: Already Solved By Our Experts
(USA, AUS, UK & CA PhD. Writers)