Objectives of Kingfisher Airlines
KINGFISHER AIRLINES
Kingfisher Airlines Limited is an airline group based in India Its head office is in Andheri (East), Mumbai and Registered Office in UB City, Bangalore. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-cost carrier Kingfisher Red. The airline has been facing financial issues for many years. Until December 2011, Kingfisher Airlines had the second largest share in India's domestic air travel market. However due to a severe financial crisis faced by the airline at the beginning of 2012, it has the lowest market share since April 2012.
Vijay Mallya is looking at reports of Q3 of 2008 , thinking that can there beany way to at least break even in this critical time of economic slowdown. Aviation industry is very sensitive industry triggered hard by the recession across the world. Kingfisher reports Rs. 592.96 crore net loss (from exhibit-1) for the quarter ended 31st December 2008. Indian aviation sector is buckling under rising fuel prices & manpower costs and falling air traffic. Sales stood at Rs 1,447 crore versus Rs 1,353 crore, in line with Jet Airways, which also posted a net loss of Rs 214 crore for the quarter under review because of poor load factors.
The company claimed that technically, the financial results for the third quarter cannot be compared with the corresponding quarter because the Vijay Malaya-led Kingfisher was not listed last year and this year’s result include figures of erstwhile Air Deccan, which Kingfisher took over last year.
“High fuel and other operating costs coupled with lower load factors contributed to the losses at Kingfisher,” an industry observer said.
On the operational front, Kingfisher saw corporate traffic being hit during the quarter because of the economic slowdown. Yields and front-end load factor also suffered “The full impact of the price reduction in aviation turbine fuel will lower the airlines’ operating costs,”
HISTORY
Kingfisher Airline is a
Kingfisher Airlines Limited is an airline group based in India Its head office is in Andheri (East), Mumbai and Registered Office in UB City, Bangalore. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-cost carrier Kingfisher Red. The airline has been facing financial issues for many years. Until December 2011, Kingfisher Airlines had the second largest share in India's domestic air travel market. However due to a severe financial crisis faced by the airline at the beginning of 2012, it has the lowest market share since April 2012.
Vijay Mallya is looking at reports of Q3 of 2008 , thinking that can there beany way to at least break even in this critical time of economic slowdown. Aviation industry is very sensitive industry triggered hard by the recession across the world. Kingfisher reports Rs. 592.96 crore net loss (from exhibit-1) for the quarter ended 31st December 2008. Indian aviation sector is buckling under rising fuel prices & manpower costs and falling air traffic. Sales stood at Rs 1,447 crore versus Rs 1,353 crore, in line with Jet Airways, which also posted a net loss of Rs 214 crore for the quarter under review because of poor load factors.
The company claimed that technically, the financial results for the third quarter cannot be compared with the corresponding quarter because the Vijay Malaya-led Kingfisher was not listed last year and this year’s result include figures of erstwhile Air Deccan, which Kingfisher took over last year.
“High fuel and other operating costs coupled with lower load factors contributed to the losses at Kingfisher,” an industry observer said.
On the operational front, Kingfisher saw corporate traffic being hit during the quarter because of the economic slowdown. Yields and front-end load factor also suffered “The full impact of the price reduction in aviation turbine fuel will lower the airlines’ operating costs,”
HISTORY
Kingfisher Airline is a