Problems behind Failure of Kingfisher Airlines

1. Acquisition of AIR deccan. - Acquisition amount was 550 crores

I. Immediately started international service right after the acquisition
II. Started international service at the time of crisis with air deccan
2. Kingfisher operating cost was high
I. Global operation, fuel charge (55%-22%)
II. Failed to adopt the low cost tactics of Air Deccan when acquisition happened.
III. Professional Airline manaagement was lacking
3. Increased per seat cost of domestic flights
4. Absence of CEOs and CFOs (Financial operations)
5. Spending too much on buying aircrafts at the time of high fuel prices
6. Salary delay
7. Started luxury business without experience
8. No financial planning
9. Problem with pricing and costing
I. Cheap rate for luxury service and prime routes
10. Branding strategic failure
11. White and Macq Acquisition while crisis.
12. Increase in Oil Prices
13. Expansion started before break-even point (hap hazard)
I. And acquired a company that was already in loss as well for expansion
14. Financial cost was high
I. 20% of revenue was paid for interest
15. INcome tax and TDS failed to pay, as well as Landing fee, parking fee, turbine fuel, airport
authority fee.
16. Increased labor cost