13th Nov 2011
Kingfisher airlines is the only airline group from India which was awarded 5 star rating by Skytrax. It is the India`s best airliner for this year. It has won many appreciations from worldwide....wonderful achievement by UB group of-course the key person behind this is the one and only "Vijay Mallya"but the present scenario is complete contrast...the airlines has ceased almost 60% of services...normally they used to operate 375 daily flights to 71 destinations but the situation dramatically changed in a week and almost 210 flights were cancelled and all booking counters in major airports remained Closed.
From the day of launching to till today Kingfisher haven`s seen any profits. All losses accumulated to an amount of 8,200 crore and there are no more bucks to pay for the fuel, salaries to the personnel and airport fees. Liquor Baron himself accepted that it is impossible to continue services on loss making routes. Mr.Mallya had taken huge amount of loans from the banks and some of the lenders have converted loans to equity and now they hold over 23% of the stake in airlines. Every major downfall has its own trend and there will be certain Mistakes which boosts the downfall....so even in this case there are the Three Mistakes Of Kingfisher airlines..lets have a look...
First Mistake: The basic strategy of Vijay Mallya in business is to take over his counterparts when they are in losses and this 'Take Over King' has applied same strategy in case of "Air Deccan". Actually Reliance showed lot of interest in buying the Air Deccan almost the deal was about to be successful but Mallya entered from nowhere and grabbed the deal by putting the highest bid and eventually acquisition was done. Earlier it seemed to be a great deal since he got some planes and International license since Air Deccan was 5-year old and after certain procedures he finally launched International services officially. Basically KF used to maintain certain standards which made it very popular but Air Deccan never had them....this made Mallya to rename Deccan and launched it as Kingfisher Red, which is a low price service...there started the real downfall.
Second Mistake: Generally these airline groups appoints CEO for different groups and all those CEO`s report to chairman of the group but Mallya never employed a CEO since he is successful in the Liquor group with out them but the staff in Liquor group are well experienced and they can handle any of the situations but the staff in Kingfisher failed to do so and they lacked a perfect leadership since Mr.Mallya is busy in various activities like RCB(IPL) & Force India(F.One).
Third Mistake: By launching Kingfisher Red a cheaper service he launched his own downfall..when two services are from same brand people always opt the cheaper one and the same thing happened in case of Kingfisher. Red finally flagged a green flag for his collapse in airline sector and he totally ended up in losses. There were predictions that Vijay Mallya is about to request a Bail Out package from the Govt OF India.
Even today his liquor and beer business play a vital role in the market and the Mallya had never experienced drastic downfall as KF earlier in any business hope this Liquor Baron pulls of this adversity soon...
Power Capsule: "If you want to Succeed Double your Failure rate"
Updated "MyPics" page.. have alook
Kingfisher airlines is the only airline group from India which was awarded 5 star rating by Skytrax. It is the India`s best airliner for this year. It has won many appreciations from worldwide....wonderful achievement by UB group of-course the key person behind this is the one and only "Vijay Mallya"but the present scenario is complete contrast...the airlines has ceased almost 60% of services...normally they used to operate 375 daily flights to 71 destinations but the situation dramatically changed in a week and almost 210 flights were cancelled and all booking counters in major airports remained Closed. From the day of launching to till today Kingfisher haven`s seen any profits. All losses accumulated to an amount of 8,200 crore and there are no more bucks to pay for the fuel, salaries to the personnel and airport fees. Liquor Baron himself accepted that it is impossible to continue services on loss making routes. Mr.Mallya had taken huge amount of loans from the banks and some of the lenders have converted loans to equity and now they hold over 23% of the stake in airlines. Every major downfall has its own trend and there will be certain Mistakes which boosts the downfall....so even in this case there are the Three Mistakes Of Kingfisher airlines..lets have a look...
First Mistake: The basic strategy of Vijay Mallya in business is to take over his counterparts when they are in losses and this 'Take Over King' has applied same strategy in case of "Air Deccan". Actually Reliance showed lot of interest in buying the Air Deccan almost the deal was about to be successful but Mallya entered from nowhere and grabbed the deal by putting the highest bid and eventually acquisition was done. Earlier it seemed to be a great deal since he got some planes and International license since Air Deccan was 5-year old and after certain procedures he finally launched International services officially. Basically KF used to maintain certain standards which made it very popular but Air Deccan never had them....this made Mallya to rename Deccan and launched it as Kingfisher Red, which is a low price service...there started the real downfall.
Second Mistake: Generally these airline groups appoints CEO for different groups and all those CEO`s report to chairman of the group but Mallya never employed a CEO since he is successful in the Liquor group with out them but the staff in Liquor group are well experienced and they can handle any of the situations but the staff in Kingfisher failed to do so and they lacked a perfect leadership since Mr.Mallya is busy in various activities like RCB(IPL) & Force India(F.One).
Third Mistake: By launching Kingfisher Red a cheaper service he launched his own downfall..when two services are from same brand people always opt the cheaper one and the same thing happened in case of Kingfisher. Red finally flagged a green flag for his collapse in airline sector and he totally ended up in losses. There were predictions that Vijay Mallya is about to request a Bail Out package from the Govt OF India.Even today his liquor and beer business play a vital role in the market and the Mallya had never experienced drastic downfall as KF earlier in any business hope this Liquor Baron pulls of this adversity soon...
Power Capsule: "If you want to Succeed Double your Failure rate"
Updated "MyPics" page.. have alook
No comments:
Post a Comment