Professor & Head of the Department, Department of Management Studies, Godavari Institute of Engineering Technology, (Affiliated to Jntu Kakinada), Rajahmundry-533296, Andhra Pradesh, India
Online published on 18 June, 2013.
The Kingfisher Airlines Ltd was established in the year 2003 by United Breweries Group and started its domestic commercial operations in the year 2005 and international operations in the year 2008. Currently 63 flights are operating in domestic and international operations. UB Group was acquired 26% state in Deccan Aviation for 130 million dollars. After acquiring Air Deccan the King Fisher Airlines Ltd was suffered a loss of over Rs. 1000 Crore for three consecutive years. By early 2012 the company had a accumulated losses of over Rs. 7,0000 crores. The main causes for sickness are high cost of aviation turbine fuel, the rise of interest costs, employee costs, aircraft lease rentals, other operating costs, liquidity problem, lack of experience in operating airlines, rupee devaluation, cut throat competition from domestic and 31st international players and various policy and regulatory hurdles. As on March, 2012 the company has obtained EPS of Rs. (46.92).
