• Team Business-360°

Learnings from Kingfisher's failure to succeed as an aviation giant


The King of good times- Vijay Mallya brought Kingfisher to the top of its game as a liquor brand, only to fizzle out and face possibly the saddest goodbye as an airlines venture after its last flight in February 2013.

Even with a 3.3 star rating out of 5 and amazing inflight entertainment, national and international flights as well as reasonable fares, the reasons for their failure isn’t hard to find. Even with the acquisition of Deccan Airlines and their market, its expansion to the international market was too rushed. With lack of experience in the domestic market and high level of competition between international airlines, coupled with the increase in cost of acquiring a new airline forced them to start cutting down on aircrafts. Mallya even started cutting salaries of his employees and from that point on their eventual failure was a given. Another reason was frequent changes in strategies and in the CEOs of the company. They were unable to come up with effective strategies for their expenditure such as fuel prices, maintenance cost, and aviation hangar costs. Their attempt to market themselves in the low-cost segment from a premium class airline failed too.

In the end, Mallya was unable to pay back the money he owed to his investors and is now in exile in another country.

To read more, click these links:

17 views0 comments

Recent Posts

See All