Kingfisher Airlines Failed
It is difficult to start an airline company, and even harder to keep it running over time. Kingfisher was a major passenger airline. United Breweries Group, a Bengaluru-based company, founded it in 2003. They rose quickly to become India's fifth largest passenger airline. They offer domestic and international flights at affordable prices. Vijaymallya, Kingfisher's founder, had extensive experience working in the brewing sector. He is known as a liquor baron. He was an expert in the field but had no experience running businesses like airlines. This led to the failureof Kingfisher Airlines.
These are some of the main reasons Kingfisher failed-
· Acquisition of Air Deccan
· Expanding in The International Arena
· Stability Absent at the Apex Level of Management
· Moving from Premium Class Airline to Low Budget Segment
Acquisition of Air Deccan
First, Air Deccan was acquired as a low-cost carrier. KFA was able to inherit all Air Deccan's market and aircraft, but the latter also inherited its loss.
Expanding in The International Arena
KFA's efficiency was also affected by the rapid launch of overseas services. KFA was able to enter the international market after it acquired Air Deccan. After consolidating the Indian service, KFA would have had a great entry into the international market. KFA's international venture was a failure. This was always going be the case. How could someone with no experience in domestic airlines succeed in international competition? For example, Etihad and Emirates dominated international airspace and enjoyed a loyal following. The KFA, a new organization, was unable to break the monopoly and failed.
Stability Absent at the Apex Level of Management
KFA's dissolution and downfall can also be caused by a lack of continuity at its top. KFA's owner was, as we have said, a newcomer in the aviation industry. The CEO was responsible for the company's direction. KFA's CEO did not stay with the company for more than one year. KFA might have had a different outcome if it had retained an experienced CEO such as Gopinath from Air Deccan for the full five year term. Malley's commercial interests outside of breweries was not only important but also crucial. His booze company soared because the breweries were managed by competent employees. KFA however, didn't have the same luck. Because of his political connections (Vijay Mallya, a Rajya Saha Member of Parliament),
Moving from Premium Class Airline to Low Budget Segment
KFA was a well-respected premium airline that served the needs of politicians and business executives. It steadily built its brand over a short time. It lost its shine when it entered low-cost markets. It was difficult to navigate the low-cost market. The market was dominated Indigo and SpiceJet. It was hard, especially in the domestic marketplace. KFA's ambitions to make a quick buck fell apart because of the strong competition. KFA's service declined over time and customers switched to other airlines.
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