WELCOME ABOARD KINGFISHERS

“The strength of all our people and partners, your belief and
confidence in us and your continuous patronage are what
enabled to sweep past the several daunting phases that the
year 2010 brought. “

Dear Employees,
Looking back at the phase of the 2009-2010, a phase, which
was the most difficult and challenging phase of the aviation
industry. We have realized that at kingfisher airlines, we
weathered this successfully primarily due to your unstinting
support and understanding. The strength of all our people and
partners, your belief and confidence in us and your continuous
patronage are what enabled to sweep past the several
daunting phases that the year 2010 brought. I take this
opportunity to express my deep and heartfelt gratitude to you
for standing by us along this phase. Here at kingfisher, we as a
team should reaffirm our commitment to deliver high standards
of service and whole array of new destinations for out clientele
and flyers to explore.

In the spirit of this new beginning, I am obliged to announce

that our chairman, Dr. Vijay Mallya has initiated the expansion
of the services at Kingfisher to the international level with the
addition of new frequencies and routes. To cater to the
increasing number of guests flying to Bangladesh, Kingfisher
has introduced direct services on the Mumbai-Dhaka route,
complementing the two existing flights from Delhi and Kolkata.
The schedule of this service is timed to connect travellers
across the world to Dhaka, via Mumbai. This month, we are also
introducing a daily flight to Doha from Delhi, in addition to our
existing services to the capital of Qatar from Mumbai and
Kochi. The constant monitoring of quest preferences in
planning our network has established the India-Saudi Arabian
route to be one of our busiest. The expansion and upgrade
requires your co-ordination and involvement which we have
faith within. You belong to the airline which offers distinctive
services and privileges which our guests enjoy. We hope the
coming years are full of happy discoveries, a good industrial
relation, peace and prosperity.

With Best Wishes,

Editor-in-chief.

CHAIRMAN SPEAK
Dear Employees,

I intend to make Kingfisher

Airlines the best in the world
and pursue this goal seriously;
as I am sure we pursue our
goals equally seriously. I have
always aimed at keeping our
employees happy and giving
them nothing but the best.
It has been our passion to
deliver a world-class
experience. And since work and
play can go hand-in-hand, I am
sure we need some time to relax after several pressing
commitments and stressful work obligations.

I make this happen, by being personally involved and ensure

that every Kingfisher employee meets the global standards that
I have set in terms of safety. I am proud of our brand-new fleet
which incorporates the latest technology available. Aboard
every Kingfisher Airlines flight passengers meet their crew that
I have hand-picked and approved after a rigorous training
programme. I treat you’ll in the same way as if you all were a
big family.
I understand that every time someone chooses Kingfisher
Airlines, they are placing their confidence and trust in us - in
our 'Product', our 'Service' and our 'People’s Expectations from
us are undoubtedly high and that's what keeps us continuously
trying to improve ourselves.
The Guest Commitment Statement' of Kingfisher Airlines is
another step in making our flights a safe, pleasant and
enjoyable experience based on our core values of 'safety',
'service', 'happiness', 'accountability' and 'teamwork'.

It contains specific, voluntary 'Service Commitments' and

addresses all areas of our work experience - starting from
making a reservation to deplaning at the final destination and
beyond. These statements reflect our vision, "The Kingfisher
Family will consistently deliver a safe, value based and
enjoyable work place to all our Employees", and demonstrates
our commitment to making your flight an experience that could
only be summed up by the words: "The Kingfisher Experience ".

So, leave the stress of daily life behind and enjoy a Five Star
experience with Kingfisher Airlines. I try hard to exceed what
you expect, however, if I have missed something or fallen short
of answering any queries, please feel free to mail me directly at
chairman@flykingfisher.com
I invite you to work with Kingfisher Airlines and experience an
unforgettable journey.

Warm personal regards,

Dr. Vijay Mallya
Chairman
Kingfisher Airlines Limited

“I intend
to
integrate
the companies in a phased
manner that protects the
business interests and
ensures transparency”

ACKNOWLEDGEMENTS
LIST OF Board of Directors

♦ Dr. Vijay Mallya, Chairman & CEO

♦ Mr. Subhash Gupte, Vice–Chairman, The UB Group

♦ Mr. Piyush Mankad

♦ Mr. A.K. Ravi Nedungadi

♦ Diwan Arun Nanda

♦ Mr. V.K. Rekhi

♦ Dr. Naresh Trehan

♦ Mr. Rup Pillai

OUR EFFICIENT, PRODUCTIVE & LOYAL Operating Team

• Mr. A. Raghunathan, Executive Vice President, Chief Financial
Officer
• Mr. Hitesh Patel, Executive Vice President
• Mr.Rajesh Verma, Executive Vice President
• Captain D D Gandhi, Vice President – Operations
• Chandrashekhar Nene, Vice President – IT
• Mr. C.S. Tomar, VP- Engineering & Maintenance
• Bharat Raghavan, Assistant Vice President - Legal and Secretarial
• Ms. Rubi Arya, Assistant Vice President HR
• Mr. Ajit Bhagchandani, General Manager - In-Flight-Services
 • Mr. Ashwani Khanna, General Manager - Airport Services
• Mr. Bhupesh Joshi, General Manager – Airports
• Capt Jesudasan, Chief Examiner
• Captain K. Ravindran, General Manager - Flight Safety
• Major Leslie Ojjit Missal, General Manager – Security
• Mr. Ratan Ratnakar, General Manager - Revenue Optimization
• Mr. Sanjay Bahadur, General Manager - Corporate Affairs
• Mr. Shailesh Borkar, General Manager – Finance
• Mr. Umesh Rindani, General Manager - Revenue Accounts
• Mr. S.K. Ghorai, General Manager - Quality Control
• Captain Sanjeev Marwah, GM-Flight Ops (A320)
• Capt PA Bhushan, GM-Flight Operations (ATR)
• Mr. Gaurav Rathore, General Manager - Quality & Guest
Commitment
• Mr. Vijay Nair, General Manager – Cargo
• Mr. V. Seetharaman, General Manager - Engineering

HISTORY OF KINGFISHER
Kingfisher Airlines is an airline group based in India. Its head
office is Kingfisher House in Vile Parle (East), Mumbai.
Kingfisher Airlines, through its parent company United
Breweries Group, has a 50% stake in low-cost carrier Kingfisher
Red.
Kingfisher Airlines is one of the seven airlines to be ranked as a
5-star airline by the independent research consultancy firm.
Kingfisher operates more than 375 daily flights to 71
destinations, with regional and long-haul international
services. In May 2009, Kingfisher Airlines carried more than a
million passengers, giving it the highest market share among
airlines in India.
Kingfisher Airlines is also the sponsor of F1 racing outfit, Force
India, which Vijay Mallya also owns.
The airline started commercial operations in 9 May 2005 with a
fleet of four new Airbus A320-200s operating a flight
from Mumbai to Delhi It started its international operations on 3
September 2008 by connecting Bengaluru with London.
On 7 June 2010 Kingfisher became a member elect of THE ONE
WORLD AIRLINE ALLIANCE when it signed a formal membership
agreement. A firm date to join the alliance will be announced
once the
Kingfisher Airlines Limited

Type Public

Industry Transportation

Founded 2003

Headquart Mumbai, Maharashtra

ers

Area Asia, Europe

served
 Key people  Vijay Mallya, Chairman
 Sanjay Aggarwal, CEO
 A. Raghunathan, CFO(Finance)

Services Airline catering & foodservice, aircraft ground

handling and passenger transport

Revenue 5,271.04 crore (US$1.14 billion)(2009-10)

Subsidiarie Kingfisher Xpress
s
Website flykingfisher.com

KnOW KINGFISHER
MISSION:
"Kingfisher Airlines will have 'Fly the Good
Times' approach and this will reflect in
the experience we will offer to passengers

VISION:
“The Kingfisher Airlines family will consistently maintain their
efficiency and only better their performance by working
towards their goals.

SAFETY VALUES:
This is our overriding value. In our line of business, there is no
compromise.

SERVICE:
 We are all in the hospitality business; we must always seek to
serve our guests and gain their trust, goodwill and loyalty.

HAPPINESS:
We seek to build an organisation with people who choose to be
happy, and will endeavour to influence our guests and co-
workers to be happy too.

TEAMWORK:
We will succeed or fail as a team. Each one of us must respect
our colleagues regardless of their rank, and we must work
together to ensure our mutual success.

ACCOUNTABILITY:
Each one of us will be held accountable for the successful
execution of our duties, commitments and obligations, and we
will strive to lead by example.

PAST AWARDS AND

ACHIEVEMENT

• Best Airline in India and Central Asia’, ‘Best Economy

Class Seats’ and ‘Staff Service Excellence Award for
airlines in India and Central Asia’ in World Airline Awards,2010

• '5-STAR AIRLINE' award by Skytrax for 3rd consecutive year,

2010

• 'India’s Favourite Airline' in HT MARS Consumer Satisfaction

Survey , 2009

• 'Best Airline in India and Central Asia', 'Best Cabin Crew-

Central Asia' for Kingfisher Airlines and 'Best Low-Cost
Airlines in India and Central Asia' for Kingfisher Red
services in SKYTRAX World Airline Awards, 2009
• 'Bonus Promotion' (Japan, Pacific, Asia, Australia) and ‘Best
Customer Service’ (Japan, Pacific, Asia, Australia) in Freddie
Award, 2009

• Kingfisher Airlines frequent flyer programme, King Club has

won Top Honors at the 21st Annual Freddie Awards in the
Japan, Pacific, Asia and Australia region.

• King Club has won the Freddie Awards 2008 in the following
categories:

• Best Customer Service

• Best Bonus Promotion
• Best Member Communications
• Best Elite Level
• Best Website

•
• Kingfisher Airlines has received three global awards at
the SKYTRAX World Airline Awards
- Named Best Airline In India / Central Asia; Best Cabin Crew –
Central Asia
Kingfisher RED named Best Low Cost Airline in India / Central
Asia

• NDTV Profit Business Leadership Award for Aviation"

- awarded to Kingfisher Airlines by NDTV twice in two years

• "India's only 5 Star airline", rated by Skytrax and "6th

airline in the world"
to be certified as 5 star airline by Skytrax
• Rated India's "Second Buzziest Brand 2008"
By The Brand Reporter

• Ranked amongst India's "Top Service Brands of 2008"

in a ranking by Pitch magazine

• Voted as "India's Favourite Airline"

in a survey conducted by an independent research firm with
46% votes compared to 9Ws 23%

• Rated as Asia Pacific's "Top Airline Brand"

in a survey conducted by TNS on 'Asia Pacific's Top 1,000
Brands' for 2008

• "Brand Leadership Award"

in the service and hospitality segment against several
acclaimed hotels, leading banks and other airlines

• Economic Times Avaya Award 2006 for Excellence

in "Customer Responsiveness"
the prestigious award is presented by the highly acclaimed
Business Daily, Economic Times

• "India's No. 1 Airline in customer satisfaction"

- Business World

• "Rated amongst India's most respected companies"

- Business World

• "Rated amongst India's 25 Innovative Companies"

in a survey conducted by Planman Media in 2006

• "The Best Airline" and "India's Favourite Carrier"

in a Survey conducted by IMB for The Times Of India

• "Best New Domestic Airline for Excellent Services and

Cuisine"
Pacific Area Travel Writers Association (PATWA) the biggest
travel writers' organisation, representing members from 70
countries across the globe, that conducts independent annual
 surveys across various industries related with Travel and
Tourism in order to select the best in each category

• "Service Excellence 2005-2006 for a New Airline"

by Skytrax, a UK based specialist global air transport advisor

• "Ranked Third in the survey on India's Most Successful

Brand launch of 2005" under the Brand Derby Survey
conducted by India's leading business daily - Business
Standard

• "Buzziest Brands of 2005"

ranked amongst the Top Ten buzziest brands of 2005 and 2006
across product categories, in the survey conducted by
agencyfaqs and The Brand Reporter

• Rated amongst the Top Ten Internet Advertisers

- Yahoo! India

• Rated amongst "the top ten in the Best Television

Commercial Jingles"
- NDTV

ETHICS AND VALUES

“YOU MUST KNOW & ALWAYS REMEMBER”
KINGFISHER AIRLINES’ (formerly DECCAN AVIATION
LIMITED) ("We", "Our", or the "Company") commitment to
ethical and lawful business conduct is not only critical to the
Company's success, but also a fundamental shared value of its
Board of Directors (the "Board"), senior management
personnel and employees. Our standards for business conduct
provide that, we will uphold ethical and legal standards
vigorously, as we pursue our financial objectives and the
Company, the Board and senior management personnel will not
compromise honesty and integrity.
Consistent with these principles, the Board has adopted this
Code of Business conduct and Ethics (the “Code”) as a guide to
the high ethical and legal standards expected of its Board and
its senior management personnel.
The members of the Board and Senior Management Personnel
of the Company acknowledge and accept:
i. the responsibility to carry out their duties in an honest and
businesslike manner and within the scope of their authority, as
set forth in the general laws of the land where they operate and
in the Memorandum of Association and Articles of Association
of the Company, Corporate Governance Guidelines; and
ii. that they are entrusted with and responsible for the
oversight of the assets and business affairs of the Company in
an honest, fair, diligent and ethical manner, and with the duty
to make and enact informed decisions and policies in the best
interests of the Company and its stakeholders.
Accordingly, the Board has adopted this Code and the Directors
and Senior Management Personnel are expected to adhere to
the standards of loyalty, good faith, and the avoidance of
conflict of interest that
In performing their daily duties, the Directors/senior
management personnel will:
1. Act ethically, diligently, openly, honestly, in good
faith and with integrity;
2. Act in the best interests of, and fulfill their fiduciary
obligations to the Company and its stakeholders;
3. Act in good faith, responsibly, and with due care,
competence and diligence, without allowing their
independent judgment to be subordinated;
4. Dedicate their best efforts to advancing the
Company’s interests and act in a manner that will enhance
and maintain the reputation of the Company;
5. Abide by all applicable laws and regulations,
confidentiality obligations and specially with the
 Company’s Insider Trading Rules;
6. Become and remain familiar with the Company’s
business and the economic and competitive environment
in which it operates and understand its principal business
plans, strategies and objectives; operations results and
financial condition and relative marketplace position;
7. Conduct themselves in a professional, courteous and
respectful manner;
8. Be aware of and comply with all applicable laws,
rules and regulations that govern the conduct of the
business in all jurisdictions where the Company operates;
9. Commit the time necessary to prepare for, attend (in
person or as appropriate) and actively participate in
regular and special meetings of the Board/ senior
management or other meetings on which they
serve/attend;
10. Disclose potential conflicts of interest that they may have
regarding any matters that may come before the Board,
and abstain from discussion and voting on any matter in
which the Director/Senior Manager has or may have a
conflict of interest;
11. Discharge their duties, as members of the Board and of
any Board Committees on which they serve or as senior
management personnel in accordance with their good
faith business judgment and in the best interests of the
company and its stakeholders;
12. Inform the Chairman of the Board of changes in their
employment, other board positions, relationships with
other business, charitable, and governmental entities, and
other events, circumstances or conditions that may
interfere with their ability to perform their duties or impact
the Board's assessment of whether they meet the
independence requirements;
13. Maintain the confidentiality of all material non-public
information about the Company, its business and affairs;
14. Make available to and share with fellow Directors and
senior management personnel information as may be
appropriate to ensure proper conduct and sound operation
of the Company;
15. Not enter into, without the prior approval of the
disinterested members of the Board, any transaction or
relationship with the Company in which they will have a
financial or personal interest (either directly or indirectly,
such as through a family member or other person or
organization with which they are associated), or any
transaction or situation which otherwise involves a conflict
of interest;
16. Not use confidential information acquired in the course of
their service as Directors or senior management personnel
for their personal advantage.
17. Provide leadership in advancing the Company's vision,
values and guiding principles; and
18. Respect the confidentiality of information relating to the
affairs of the Company acquired in the course of their
service as Directors, except when authorized or legally
required to disclose such information.
19. Safeguard and properly use Company assets and
resources, as well as assets of other organizations that
have been entrusted to the Company.
20. Never request gifts, entertainment or any other business
courtesies from people doing business with the Company
(including suppliers, customers, competitors, contractors
and consultants).
Annual Confirmation
All Directors and Senior Management Personnel will annually on
or before June 30 of every year or such other date as may be
determined in this regard sign a confirmation that they have
read and will comply with this Code.

Non – compliance
Suspected violations of this Code must be reported to the
Chairman of the Board or the Chairman of the Audit Committee.
All reported violations will be appropriately investigated.
Directors who violate this Code may be subject to sanctions, up
to and including a request to resign as Director or the Board’s
seeking removal of the Director, where permitted by applicable
law.
 Waivers and amendments
The Company is continuously reviewing and updating all its
policies and procedures and therefore this Code is subject to
modification. The Board must approve any amendment or
waiver of any provision of this Code in writing.

You are most Welcome Upcoming

Events

Kingfisher to refresh the the event and the same has been

Hutch Delhi Half hugely appreciated. Also, in the

Marathon run up to the event scheduled on

Oct 16th, Kingfisher organized

As was the case with the Mumbai
two 'Marathon Bashes' at popular
Marathon, Kingfisher is again,
hangouts in the city where
involved with the Delhi Half
Delhites were able to celebrate
Marathon. Billed as the richest
the spirit of the marathon with a
and most prestigious half-
series of fun games.
marathon in India, the event is

generating a lot of buzz and is

sure to repeat the thrills and

excitement of its Mumbai

counterpart Kingfisher has

Kingfisher 'Rising' to the
developed a signature campaign
occasion
to promote its involvement with
Kingfisher was in the thick of 1-
Day celebrations across the
country, thanks to it's association
with Aamir Khan's magnum opus,
Mangal Pandey-The Rising. The
promo was conducted in
Bangalore, Mumbai and Pune,
where winners had the
opportunity to mingle with the
stars of the film at the premiere in
Mumbai. Rights for the publicity
stills were secured and used in
press ads and collaterals. Besides
the few that got to mingle with
the stars, the other Kingfisher
drinkers won tickets to the first
day show, amongst other prizes in
their respective towns. Needless
to say, the promo was a huge
success with consumers getting a
'rise' out of their favorite brew,
Kingfisher!
Kingfisher Festival
A selection of cuisines, loads of
entertainment and of course, your
favourite beer, all in one place!
The Kingfisher Festival held on
7th May, 2005, at the Palace
Grounds, was an event, that did
just that, and was attended by
about 2000 people. The festival
catered food to suit every taste,
ranging from authentic Karnataka
cuisine to more exotic offerings
like Thai and Chinese cuisine.
Variety was not restricted to the
food alone. The variety in
entertainment had everyone from
toddlers to the senior citizens
having a great time. The event
was kicked off by Manoj Chopra
with his feats of strength. His feat
of ripping a telephone directory in
half with his bare hands was a
rare one. K.S Ramesh, India’s
renowned magician also
entertained the public with his
bag of tricks. A fashion show in
true KF-style, showcased the silks strengths in this state by

designed by the Maharaja of maintaining its high visibility and

Mysore. For those, who simply high impact communication that

wanted to rock, Amit Heri and his is Goa - centric.

band belted out some great

Parades at Panjim, Madgaon and
fusion music, and the grand finale
Vasco were tied up with
was a performance by Sufi
Kingfisher, with Panjim having
maestro, Syed Adil Husseini. The
beer stations selling beer on the
highlight of the Festival was
entire route of the parade. Panjim
Kingfisher beer, ensuring that the
crowd truly had a Good Time, also saw the Kingfisher float
which drew a huge response from
courtesy Kingfisher.
the revelers. Similarly all the

major carnival parties were

Viva Carnival! Viva sponsored by Kingfisher ensuring

Kingfisher! that revelers had enough to cheer

about late into the nights,

The much awaited Goa Carnival
chanting Viva Carnival! Viva
took place in the 1 st
week of
Kingfisher!
February. The ‘Darling of Goa’

Kingfisher, grabbed yet another

opportunity to showcase its

 on a Serious note”FUTURE
PLANS”
Kingfisher: Good times
finally?
The airline’s soaring
debt is a huge worry, but a
successful brand
differentiation strategy can
play a key role in future
Kingfisher Airlines is
just short of five years in
operation. But the
flamboyant Vijay Mallya’s
airline has given all its
competitors a run for their
money as far as mind space
is concerned – be it the
swelling debt, or the
acquisition of Deccan
Airlines.
It was a surprise when
the airline said earlier this
month that it plans to raise
Rs 300 crore of debt in the
near future, which will
increase its current debt
book to around Rs 7,800
crore — a leverage of almost
25 times. The airline posted
a loss of Rs 420 crore in the
third quarter ending
December 2009 and like all
airlines has gone through
turbulent weather (paring
growth, deferring deliveries
of new aircraft etc) in 2009.
“The company is sitting
on a high leverage which
affects its valuation in the
short run. However, the
current valuation of the
airline gets support from its
strong brand image in the
form of intangibles,” Manish
Saigal, partner, KPMG
The king of good times,
as Mallya is known as, is
obviously banking on the
intangibles. Kingfisher is now
the largest single domestic
carrier with a market share
of 23 per cent at the end of
March, 2010 and operates
close to 400 flights a day
covering 70 destinations with
a fleet size of 66 aircraft. It is
all set to expand its presence
in the global highly
competitive network where it
will be taking on mature and
established global carriers.
The company has plans
to double its fleet strength
by adding 67 more aircraft
by 2016, according to an
investor presentation, which
also says that Kingfisher will
increase the total number of
international flights to 14.
The company also plans to
raise funds through issuance
of Rs 440 crore worth of
global depository receipts
(GDRs).
Aviation analysts agree
Kingfisher has been able to
create a brand differentiation
despite the trouble it has
gone through. As Mallya
says, the “‘Fly the Good
Times’ approach reflects in
the experience we offer to
passengers. With costs lower
than economy class travel on
full service airlines and
marginally more than the
‘bus services’ type low cost
competition, Kingfisher offers
a far better value
proposition.”
On its core values of
lifestyle, trendy and youth,
Kingfisher has leveraged the
equity of the mother brand
Kingfisher.
The airline has a clearly
defined target audience- SEC
A, SEC B+ (socio-economic
class) in the age group of 25-
45 years of age. This
segment has travelled
extensively and is aware of
international travel trends.
They are modern, trendy and
upwardly mobile, looking for
a great flying experience.
The team at Kingfisher
Airlines also believes that a
consumer does not select a
brand in isolation. Taking this
insight forward, an extensive
on-ground activation hums
all year round that is aimed
at communicating the Good
Times experience of
Kingfisher Airlines outside
the air travel context as well.
Such is the impact of
this marketing blitz that
despite the poor financial
health of airline, the brand
has intrinsic value attached
to it. However, analysts say
Kingfisher Airlines has not
only benefitted from its
association with UB brand,
but also its seamless
efficiency has a lot more
contribution in building up
this brand image.
“The seamless
efficiency in the form of good
connectivity, wide coverage,
pre-boarding service and
post-flight service help it to
create such positive image,”
Harish Bijoor, chief executive
officer of a brand
consultancy firm, Harish
Bijoor Consults Inc said.
However, the integrated
branding approach followed
by Kingfisher has also certain
risks associated with it.
“Integrated branding has its
risks like if one brand gets a
negative image, it hurts
other brands of the
company,” KPMG’s Saigal
says.
Saigal also says that
Kingfisher Airlines’ image as
a lifestyle brand didn’t go
well for Kingfisher Red- its
low cost wing and the
company should distinctly
advertise for this segment.
However, Kingfisher
officials say that the airline
provides the same quality of
service to all segment of its
consumers and there is no
need for a different branding
strategy. “Our focus on both
Kingfisher and Kingfisher Red
is to offer our consumers the
best value for their money.
So, we provide a ‘five star’
experience even on
Kingfisher Red, albeit at a
lower cost,” an official of
Kingfisher Airlines says.
Kingfisher plans major
international expansion
India's Kingfisher Airline
s has finalised a new fleet
plan that includes
significantly slower
expansion of its Airbus
A320and ATR 72 fleets,
delayed. Airbus
A380 deliveries and
potentially the sale of
twoA340-500s.
Kingfisher has been
working on a new fleet since
unveiling plans in December
to merge with Air Deccan.
The merger formally came
into effect on 7 July.
Chairman Vijay Mallya
says the newly merged
carrier has not cancelled any
orders, but most future
deliveries have been
deferred. Under the new
fleet plan, the carrier will
take only eight new aircraft a
year from 2010.
Kingfisher Airlines plans
to raise up to $175 mn by
Mar 2011
Kingfisher Airlines plans
to raise up to 175 million
dollars (about Rs 840 crore)
before March next year
through rights issue and
global depository receipts
(GDR).
"Yes, we are planning both
rights issue and GDR
placement. The combined
amount will be about 150-
175 million dollars," UB
Group Chief Financial Officer
Ravi Nedugandi said.
He, however, declined to
comment on details saying
pricing and exact size have
not been finalised yet.
"Timing will be before March
2010," he said when asked
about the timeline for raising
the fund.
Kingfisher is in need of funds
and has a total debt of about
Rs 6,000 crore. "This
includes about Rs 1,800
crore being given in advance
to aircraft manufacturers
against future delivery of
planes," Nedugandi
added. The carrier, which
has a fleet of 71 aircraft had
placed orders with Airbus,
including five confirmed
orders for A380s. It had also
placed orders for five A340s,
which were later converted
for five A330 aircraft. The
airline is likely to get the first
delivery of the world's
COFFEE BREAK news bulletin:
Kingfisher Airlines and Dishtv Form an Unprecedented
Alliance in the Indian Skies
Kingfisher Airlines and dishtv
introduce LIVE TV in-flight. Now enjoy
watching your favorite channels
35,000 feet high in the sky History
has been created in the world of
entertainment and Indian aviation,
with the coming together of two
large corporate houses, dishtv and
Kingfisher Airlines, to bring LIVE TV
entertainment for the very first time
in the Indian skies. This association
signifies the commitment to enhance
in-flight entertainment like never
before and a turning point to make
the unprecedented happen, the
launch of LIVE TV, 35000 feet high in
the sky. As a part of the tie-up, the
country’s pioneer DTH player, dishtv,
will demonstrate its services on the
largest aircraft Airbus A380
in 2014, which was
scheduled for delivery in
2012. The airline has faced
problems clearing its fuel
bills. Petroleum Minister
Murli Deora had informed
Parliament in July that
Kingfisher Airlines owes over
Rs 950 crore to state-run oil
companies in unpaid jet fuel
bills.
country’s fastest growing airline,
Kingfisher Airlines.
Now, only on flying with
Kingfisher Airlines, guests will not
miss out on any critical news or
business event, sporting action,
Hollywood and Bollywood
blockbusters, chartbusting music,
and popular sitcoms, thanks to
dishtv’s revolutionary new
technology, making digital content
services available on board! Starting
services two and half years ago,
dishtv marked its presence by
revolutionizing entertainment, right
from the Siachen to Kanyakumari, to
the remotest areas, across the
country. Next, dishtv conquered the
seas, with mobile dish installations
on sailing vessels, within the
footprint of the satellite. With the
Kingfisher Airlines alliance, dishtv
has achieved yet another milestone
by taking digital entertainment to
the skies with the launch of LIVE TV
on board every Kingfisher Airlines
aircraft.
Added Dr. Vijay Mallya,
Chairman and CEO, Kingfisher
Airlines Limited, “In 2005, Kingfisher
Airlines launched and redefined the
way the Indian air traveler perceived
the joy of flying. We introduced in-
flight entertainment on-board all our
flights, so much so that our
competitors were compelled to follow
suit. Today we take our commitment
to take the best of Good Times, one
step further for our guests. Our
association with dish TV has helped
us create yet another path-breaking
innovation which will revolutionize
the way Indians perceive in-flight
entertainment and we are very proud
that dishtv will now enable LIVE TV
onboard every Kingfisher Airlines
THE F1 TEAMS WEARS “FLY KINGFISHER”
flight. With the launch of LIVE TV
onboard, we are not re-defining in-
flight entertainment, but creating
history”.
The first aircraft empowered
by dishtv complete with the LIVE TV
service, will be ready to take-off by
the end of December,
2006.Kingfisher Airlines FUN TV will
now comprise of 16 channels of LIVE
TV showing business news, current
affairs, popular sitcoms, live sporting
action, Hollywood and Bollywood
blockbusters, chartbusting music,
travel and lifestyle, 5 channels of the
very popular broadcasted video
content and 1 moving map channel.
In addition guests can enjoy 10
channels of chartbusting music from
hip-hop to retro to old Hindi melodies
on Kingfisher Radio.
Kingfisher Airlines was the first
Indian carrier to offer In-flight
Entertainment onboard its flights
across the country. So sit back, relax
and enjoy the dishtv enabled
Kingfisher LIVE TV Experience.
A Kingfisher-sponsored
Toyota F1 car: "Fly
Kingfisher"
Kingfisher Airlines is an
official sponsor of the
Panasonic Toyota F1 Team.
Kingfisher Airlines has
entered a 2 year agreement to be a sponsor of Toyota F1

beginning in 2007. The "Fly Kingfisher" logo appears on the

sides of the Toyota F1 Car and on the driver's overalls and
helmet. We pursue to brand ourselves on parallel lines of the
“FLY EMIRATES” brand positioning. We hope your prejudice lies
towards us to initiate a breakthrough campaign and your
enthusiasm, dedication and encouragement helps us conquer
are visionary goals.

Fly For Good Times: KNOW YOUR NEW COMERS

Kingfisher is glad to
announce the contest “Fly
for Good Times” which is to
facilitate the selection of
airhostesses, which will
cater to the needs of our
customers. We hope our
employees give them a warm greeting into our firm, building
better relations and new bonds. The contest will involve the
selection of the airhostesses by Dr. Vijay Mallya and his son,
Siddharth Mallya amongst the panel of judges. Knowing them I
bet you know what their Tastes are. Just Perfect.
 FINANCIAL STATEMENTS

QUARTERLY RESULTS IN BRIEF

Sep ' 10 Jun ' 10 Mar ' 10 Dec ' 09 Sep ' 09

Sales 1,382.72 1,640.58 1,259.78 1,352.46 1,142.15

Operating profit -78.47 82.50 -335.55 -95.67 -350.55

Interest 362.26 321.24 374.67 288.99 262.43

Gross profit -307.79 -194.56 -550.15 -366.67 -598.69

EPS (Rs) -8.68 -7.05 -21.28 -15.79 -15.75

QUARTERLY RESULTS IN DETAILS

Sep ' Jun ' Mar ' Dec ' Sep '
10 10 10 09 09

Other income 132.94 44.18 160.07 17.99 14.30

Stock adjustment - - - - -

Raw material - - - - -

Power and fuel 479.89 585.57 483.86 444.55 460.63

Employee expenses 172.51 163.40 190.05 170.08 172.37

Excise - - - - -

Admin and selling expenses - - - - -

Research and development - - - - -

 Sep ' Jun ' Mar ' Dec ' Sep '
10 10 10 09 09

expenses

Expenses capitalised - - - - -

Other expenses 808.79 809.11 921.42 833.50 859.71

Provisions made - - - - -

Depreciation 52.99 64.89 96.62 53.82 33.73

- - -
Taxation 131.47 -76.52 -238.89 218.13 232.77
 Sep ' Jun ' Mar ' Dec ' Sep '
10 10 10 09 09

Net profit / loss

- - - -
230.82 187.35 -565.77 419.96 418.78
 Sep ' Jun ' Mar ' Dec ' Sep '
10 10 10 09 09

-
Extra ordinary item -1.51 -4.42 -157.89 217.60 -19.13

Prior year adjustments - - - - -

Equity capital 265.91 265.91 265.91 265.91 265.91

Equity dividend rate - - - - -

Agg.of non-prom. shares (Lacs) 896.91 896.91 896.91 896.91 896.91

Agg.of non promotoholding (%) 33.73 33.73 33.73 33.73 33.73

OPM (%) -5.67 5.03 -26.64 -7.07 -30.69

GPM (%) -20.31 -11.55 -38.75 -26.76 -51.77

NPM (%) -15.23 -11.12 -39.85 -30.64 -36.21

BALANCE SHEET

Mar ' Mar ' Mar ' Jun ' Jun '
10 09 08 07 06

Sources of funds
Owner's fund

Equity share capital 265.91 265.91 135.80 135.47 98.18

Share application money 7.48 8.11 10.09 - -

Preference share capital 97.00 97.00 - - -

 Mar ' Mar ' Mar ' Jun ' Jun '
10 09 08 07 06

- -
4,268.8 2,496.3
Reserves & surplus 4 6 52.99 249.23 125.95

Loan funds
4,842.4 2,622.5
Secured loans 3 2 592.38 716.71 448.16

3,080.1 3,043.0
Unsecured loans 7 4 342.00 200.00 3.50

4,024.1 3,540.2 1,133. 1,301.

Total 5 1 26 41 675.80

Uses of funds
Fixed assets
 Mar ' Mar ' Mar ' Jun ' Jun '
10 09 08 07 06

Gross block

2,048.1 1,891.8
4 0 322.33 340.77 247.33
 Mar ' Mar ' Mar ' Jun ' Jun '
10 09 08 07 06

Less : revaluation reserve - - - - -

Less : accumulated depreciation 493.62 316.29 43.55 33.74 16.40

1,554.5 1,575.5
Net block 1 2 278.78 307.03 230.93

1,630.9
Capital work-in-progress 980.61 5 346.25 357.62 286.53

Investments 0.05 0.05 - 0.41 0.41

Net current assets

5,298.1 4,189.3 1,188. 1,063.
Current assets, loans & advances 3 7 41 68 558.83

Less : current liabilities & 3,954.8 3,860.1

provisions 0 8 696.83 456.09 439.98

1,343.3
Total net current assets 4 329.19 491.58 607.59 118.85

Miscellaneous expenses not

written 145.64 4.51 16.64 28.75 39.08

4,024.1 3,540.2 1,133. 1,301.

Total 5 1 26 41 675.80

Notes:
Book value of unquoted
investments 0.05 0.05 - 0.41 0.41

Market value of quoted

investments - - - - -
 Mar ' Mar ' Mar ' Jun ' Jun '
10 09 08 07 06

23,135. 27,468. 6,797. 7,485. 8,935.

Contingent liabilities 77 70 11 33 97

Number of equity 2659.0 1357.9 1354.7

sharesoutstanding (Lacs) 2659.09 9 9 0 981.82

PROFIT LOSS ACCOUNT

Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Income
1,456.2 1,800.2 1,285.4
Operating income 5,067.92 5,269.17 8 1 2

Expenses
Material consumed 40.89 51.19 43.79 45.94 36.73
 Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Manufacturing expenses

1,297.5 1,597.0 1,050.9

2,911.81 3,715.47 1 6 3

Personnel expenses 689.38 825.42 244.96 247.72 163.04

 Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Selling expenses 687.02 683.82 85.00 17.90 13.48

Adminstrative expenses 489.10 546.47 110.20 154.00 134.68

Expenses capitalised - - - - -

1,781.4 2,062.6 1,398.8

Cost of sales 4,818.20 5,822.36 6 1 6

Operating profit 249.72 -553.19 -325.17 -262.40 -113.44

Other recurring income 72.08 594.43 48.64 29.98 8.45

Adjusted PBDIT 321.80 41.24 -276.54 -232.42 -104.98

Financial expenses 2,245.59 2,029.33 434.44 466.05 250.72

Depreciation 162.80 133.20 18.28 17.67 13.34

Other write offs 54.49 38.39 18.31 26.25 18.94

- -
Adjusted PBT 2,141.08 2,159.68 -747.57 -742.39 -387.99

Tax charges -770.69 -546.38 -494.45 3.40 3.75

- -
Adjusted PAT 1,370.39 1,613.30 -253.12 -745.79 -391.73

Non recurring items -405.38 4.47 64.98 312.12 51.19

Other non cash

adjustments 31.28 - -0.97 14.09 -

- -
Reported net profit 1,744.49 1,608.83 -189.10 -419.58 -340.55
 Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Earnigs before - -
appropriation 4,321.08 2,576.59 -967.76 -778.65 -359.08

Equity dividend - - - - -

Preference dividend - - - - -

Dividend tax - - - - -

- -
Retained earnings 4,321.08 2,576.59 -967.76 -778.65 -359.08

CASH FLOW

Mar ' Jun ' Jun '

Mar ' 10 Mar ' 09 08 07 06

- - - -
Profit before tax 2,417.92 2,155.21 -682.59 416.18 336.80

- - -
Net cashflow-operating activity 1,665.09 -645.78 -541.52 552.58 179.81

Net cash used in investing -

activity 235.13 206.63 13.82 119.48 345.72

Netcash used in fin. activity 1,464.55 290.11 -9.23 993.68 699.08

Net inc/dec in cash and

equivlnt 34.60 -149.04 -536.93 560.57 173.55

Cash and equivalnt begin of

year 171.87 320.91 817.05 256.47 82.93

Cash and equivalnt end of year 206.47 171.87 280.12 817.05 256.47
STRIDE INTO BREAKEVEN REVENUE EQUIVAVALENTS AND SOON PR

SHAILESH BHORKAR,
FINANCIAL HEAD,
KINGFISHER AIRLINES

FOR YOU TO FEAST THE GOOD

TIMES:
EMBRACE OUR FLY HIGH KING CLUB:

We welcome all our

employees to our FLY HIGH
CLUB. Introduce yourselves to
this loyalty program which
allows our employees to earn
mileage points each time a
flight is made and through
arrangements with its partner
airlines, car rental agencies,
hotels, and other services. The program is a tiered program
that offers free flights and other benefits at various levels.
Benefits begin at the King Red level which allows junior
employees to earn and redeem miles with Kingfisher airlines
and its partners. The King Silver for mid-level employees
provides priority check-in and lounge access at domestic
airports, 15% tier bonus, and excess baggage allowance. The
Gold level includes the Silver level benefits and also includes a
25% tier bonus, priority boarding, international lounge access,
upgrade vouchers, and guaranteed seat reservation which is
served to the senior level employees. The Kingfisher Airlines
top tier is the Platinum level which has the features of the Gold
level and also offers 35% tier bonus, 5 upgrade vouchers, travel
coordinator, and other amenities which is served to the top
officials of the company..
The miles required to reach the tiers are:

• Gifted to the employee Red – 3,000 miles;

• Silver – 30,000 miles,
• Gold – 60,000 miles, and Platinum – 90,000 miles.

The Kingfisher Airlines program King Club for Employees points

can be redeemed for free flights, upgrades, lounge vouchers,
and to purchase merchandise in the Air Boutique ONLINE.
And best of all, family members of employees can benefit from
this program, and pool all their miles into one account of the
employee, acting as a family account. The program runs on the
lines of the King Frequent Flier Club, with this being catered to
our employees.

Clipboard suggests’

♦ KNOW WHATS AROUND YOU: Boundary Spanning

We encourage our fellow employees to diffuse the gap between
our firm and the world around you. Bring together your social
network and form a connective wheel, which will help you and
the organisation to enjoy a more fruitful relation with legimate
ties. You can always expose yourself and give your suggestions
as the firm runs only because of its UNITY and TRANSPERANCY.
Help us constructing network bingdings. BUILD BETTER TIES,
NEW RELATIONS, BE CLOSER.

♦ WARMNESS: The feeling of Security

The feeling of being sacked, downsized. Your boss crying out,
you are not required. Taking account of the 300 sacked
employees in 2008. Yes, the firm did hit recession, so did it to
you. Secure yourself, invest in the “With Us until Eternity”
campaign. This campaign is the development of funds for the
Just-in-case phases. The firm has encouraged only a temporary
downsizing incase of severe losses. The funds will help in
meeting the requirements of our sacked employees for a
temporary period until the employees are recalled. We have
gone through a very laborious extent of training our crew and
staff perfectly who provide the finest standard of service on the
Indian grounds and skies and we respect them. We have a
selected few and can’t afford to lose them. Therefore, hold
hands together to breach through the unpleasant times and Fly
the Good Times. BE WITH US, BE SECURE.

LETTERS FROM CUSTOMERS

“Together we Make it Happen”
1. My fully flat bed was obviously
prepared for me - and then the
stars came out. Literally, the ceiling
goes a midnight blue colour and
stars appear, so I'm not only in
heaven, I can see it as well.
Waking to breakfast and coffee
served from silver jugs (I'm going
to have to change the coffee
machine at home now..) there was
just enough time to move my chair
into every position possible, (I'm
sorry folks, its the little things), test
out the massage options on it (yes
seriously good), work my way
through a little "Kingfisher Radio"
and then we were in Bangalore.
And of course I love being first off
the plane, and seeing my bag the
second one out.
Kingfisher - you did me proud, it
was an amazing experience, I fear
you've spoiled me for life. Option
Town, I'm sorry I ever doubted you
- for me it was great, your support
staff were fabulous, explained
everything in great detail, your
emails were timely, informative
(and of course the one notifying me
about the upgrade was sooooo
exciting!)
And of course, the last word must
go to Dr Mallya. Sir, you have done
a grand job. (personally, you
knocked spots off Virgin Upper
Class) And should you ever feel the
need to adopt me, then my mother
would understand, so long as, of
course that she gets upgraded.
Ms. Sarah Carter
Hearty Congratulations
2. Dear Dr Mallya,
I would like to share the happiness
with you all at Kingfisher for your
winning the FREDDIE AWARDS in
two categories. We are mighty
happy and we want to share a little
bit of your glory as members of the
King Club.
Warm regards
Prof. Sugata Sanyal
3. I am a very fussy customer, very
hard to please but this airlines truly
pampers me.
I am a regular business traveler to
London and I fly only Kingfisher, the
Silver Thali service is terrific and
the food is to die for.
Last time during my flight to
London I was suffering from
extreme cold, so every half hour
the air hostess would ask me if I
needed anything, gently tell me "sir
please take warm water and
honey", imagine every half hour
she made it a point to do a check
on me !
The lounge is just wow – once I
spent my entire trip in the lounge,
the starry sky and the ambient
lighting is just out of this world.
I am a very fussy customer, very
hard to please but this airlines truly
pampers me.
Regards,
Anonymous
Five Star Service
4.Dear Dr Mallya,
I was fortunate enough to have
recently experienced the five star
service offered by Kingfisher First
on a return flight to Mumbai from
London. In this day and age where
good service has lost its
importance and customer's are just
a number, this was a true rare
occasion where both myself and
my mother were made to feel as if
we were 'guests' and not
customers on your plane.
I had specifically asked my brother
to book XXXX for our flight as I
have enjoyed flights with them in
the past, and I have to say I was
quite unhappy when I first came to
realise we were flying Kingfisher as
I had not flown with your company
before.
Well Dr Mallya I cannot stress how
wrong I was. From the check-in at
the airport to our landing at
Mumbai, I cannot fault your airline
for one single thing. You have
thought of everything. From the
food, seat comfort, friendly air
hostesses, the list is endless. Your
claim is that you offer a five star
flight, well if it was upto me i would
give you a six star rating!!
I look forward to flying with you
again soon. I also hope that one
day you launch your own chain of
hotels as well. If you can make a
person feel like your guest on a
flight then I can only imagine how
comfortable a Kingfisher hotel
would be!!!
Regards,
Sangita
5. Sir,
By taking the right step to get back
one of the "Treasures of India" you
have proved that you are not only
"Pride of India" but a *TRUE
INDIAN*.My salute to you once
again.
Regards,
G. Ajith
6. Dear Sir,
I am proud of your initiative to
purchase back belongings of
MAHATMA back to India. I Wish
your business more success in
future and I will prefer only
kingfisher Airlines for future travel
or to purchase Kingfisher made
products. Thanks and
congratulations.
Regards,
Suryanarayana
7. Dear Mr. Vijay Mallya
Many thanks and warm
appreciation for your good gesture
in collecting back our father of
nation's memorabilia. You have
shown high degree of sincerity,
patriotism and professionalism
among the whole lot of corporate in
our country. Many people only talk,
but you have shown in your good
actions. Your actions are highly
appreciated.
Regards,
Rajasekhar V N Potula
8. Hi Sir,
I am sending this mail to thank you
for getting back Ghandhi ji's
memories to our country. I hope
one day I will also be capable
enough to do something like this.
Thanks again.
Regards,
Ravindra Pratap Singh
9. Dear Mr. Mallya,
Please accept my sincere
congratulations for creating an
airline whose quality of service to
passengers is unheard of and
unsurpassed in the history of Indian
aviation. I have been living out of
India since 1975 and that meant I
have been travelling to India and
within India for such a long period. I
had always dreaded the prospect of
internal travel, for more often than
not, this meant travel by the
available domestic airlines. We
always had a huge story to narrate
on our return about the trials and
tribulations of travelling with such
airlines. For the first time in 32
years, I have returned to my place
of residence and I can walk and talk
with my head held high about a
WORLD CLASS airline operating in
India and can shamelessly do a
marketing talk about your airline at
every single party I am attending
and will attend in the future. Where
do I begin to narrate my wonderful
experiences with Kingfisher? Do I
talk about your timely departures
and arrivals, do I talk about the
most helpful kerb-side assistances
(both on arrival and departure from
airports), your helpful counter
persons or your courteous and ever
smiling hostesses on flights? Sir,
you have created and trained a
band of young and old "soldiers"
who are doing a tremendous job
THE SOON TO BE ANNOUNCED
“HALL OF FAME”
thus creating a huge brand image
for the Indian aviation. And, the
person to thank for all these, apart
from these wonderful people, is
yourself.
Sir, Thank you from the bottom of
my heart !!

The hall of fame will ential the best

performing employees in the current
quarter. Those who have outperformed in
their respective fields, have been highly
efficient and productive will be awarded
and will be appreciated by being listed in
the Hall of Fame. Do you think you will be
one of them?

PATIENCE IS THE KEY MY FRIEND….

Those who will be listed in the Hall of Fame

get free tickets for the upcoming IPL matches,
and will get to meet the cricketers of the
Bangalore Royal Challengers team and win merchandize signed
by the cricketers and meet the Hot Sizzling Sheila, Katrina Kaif.

The listers will also get

an all expense sponsored
trip to Mauritius for 6 Nights/7 Days. Listers will also be
distributed with free Kingfisher Vouchers
 EMPLOYEE FEEDBACK

• Feel free to tell us about your complains and queries.

• You can also email us your problems at
ublinvestor@ubmail.com
• Tear this page after filling in your questions and complains
and mail it to us in the envelope attached on the next page.

Name: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
___________________
Tel No.:_ _ _ _ _ _ _ _ _ _ _ _ _ Mobile No.:_ _ _ _ _ _ _ _ _ _ _ _
E-mail ID:
______________________________________________________
Equity Share No: _ _ _ _ _ _ _ _ _ _ _ _ _ to _ _ _ _ _ _ _ _ _ _ _ _ _
Queries and Questions:
________________________________________________________________
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__________________________
 FOR INTERNAL CIRCULATION ONLY

KEEP FLYING THE GOOD TIMES