General Management

1. PROJECT TITLE: REASON BEHIND FAILURE OF KINGFISHER AIRLINES

2. RESEARCH QUESTION: Until December 2011, Kingfisher Airlines had the second largest share in India's domestic
air travel market. Ever since the airline commenced operations in 2005, it reported losses. In July 2014, Kingfisher
Airlines' indebtedness appeared as the country's state-owned banks' top non-performing asset after failing to
repay loans of over ₹40 billion. So, what are the main reason behind the failure of this huge brand? Where the
company went wrong? What could have done to prevent this failure?

3. NEED FOR RESEARCH: Kingfisher airline failure has been in the news for so many years. There are few reasons
behind the failure but are those sufficient enough for the failure or any other reasons are there for failure? So,
the need for research is to find out the actual reasons behind the Kingfisher airlines. And if the reasons are rectified
then how other company can prevent themselves from the future failure is the concern.

4. LITERATURE REVIEW: Srivastava, J., & Ali, A. (2013), conducted the study to examine the reasons behind the
failure of the Kingfisher Airlines in the year 2012, by using secondary data. They concluded that Kingfisher plans
to increase revenues through more efficient operations, while at the same time controlling costs by flaking some
realty assets incoming sale and leasebacks for some Airbus aircraft, and switching some high-cost rupee loans into
low-cost foreign currency loans and Kingfisher Airlines is also working “aggressively” with an association of banks,
which hold a 23% stake in the company, to further reduce interest costs and raise working capital. Bansal, S. C.,
Khan, M. N., & Dutt, V. R. (2008), conducted a study to examine the current status of the Indian civil aviation
industry and challenges and opportunities emerging due to liberalization in India. They concluded that airlines
have regularly increased the base fare due to increasing ratio of fuel by oil companies due to this passenger load
has fallen.

5. RESEARCH METHODOLOGY: This chapter contains the research methodology which is planned for this particular
study. Secondary research will be used to study the reason behind Kingfisher Airlines failure.

6. VARIABLES: The dependent variables in this research are: Cannibalization by Kingfisher Red, Flawed Strategies
after Merger, Low Customer Base for Premium Class, Flawed Financial Model, High Fuel Prices, Policy Issues, Price
Wars, Over ambition. And the independent variable is the actual failure of Kingfisher Airlines.

7. OPERATIONALIZATION: This can be done by analyzing the working of other airlines which are doing great in the
airline industry. Again, by studying that if any other company has adopted any variable and still it is doing great.
And by analyzing the past and present performance of the airline companies to identify the scale of measurement
of the variable.

8. SIGNIFICANCES OF RESEARCH OR MANAGERIAL IMPLICATIONS: Until December 2011, Kingfisher Airlines had the
second largest share in India's domestic air travel market. It was doing great till 2011 but after that, the whole
scenario changed. This study will help to understand the main reasons behind the failure and this will help other
companies to not to repeat the same mistakes which can affect the whole business of the company.

9. PROJECT TIME-TABLE. –
• Anticipated start date: January 20th, 2018, Anticipated completion date: March 15th, 2018
• The period of desk research and literature reviewing: 2 weeks
• Any pilot work or feasibility study: 2 weeks
• The sequencing of interventions, baseline, outcome, and evaluation measures: 4 weeks
• The period set aside for data analysis and production of reports: 4 weeks
• Any anticipated obstacles to completing on schedule: 2 weeks
Kunal S Sakhare – M 36