What are the ethical and governance problems which led to the failure of Kingfisher Airlines?

What are the ethical and governance problems which led to the failure of Kingfisher Airlines?

Following are some ethical and governance problems which lead to the failure of Kingfisher Airlines. The company was taking fuel from BPCL. But the airlines defaulted in payment due to which, BPCL filed a case in Bombay High court for paying the unpaid bills. of fuel every month.

Why was Kingfisher banned?

The airline had shut down its operations when on 20 October 2012 the DGCA suspended its flying license. This suspension had been due to failure to give an effective response to the show-cause notice issued by DGCA. Kingfisher would have been the first Indian carrier to join one of the big airline alliances.

What went wrong for Kingfisher Airlines?

KFA faced stiff competition, and its dream of making a fast buck lay shattered. KFA’s service deteriorated over time, and its customer shifted loyalties to better airlines. The downfall of KFA from being one of the best airlines in India is due to the lack of effective decision made by the team.

Who controls Kingfisher now?

Heineken Group
Kingfisher is an Indian beer brewed by United Breweries Group, Bangalore. The brand was launched in 1978. With a market share of over 36% in India, it is also available in 52 other countries. The Heineken Group holds 42.4% equity shares in United Breweries Ltd.

What ethically went wrong in Kingfisher case?

A probe by the Serious Fraud Investigation Office (SFIO) in India found that corporate ethics were compromised in the merger between Kingfisher Airlines and Deccan Aviation Limited. Kingfisher Airlines had created three new departments in the airline to avoid paying capital gains tax.

What made Kingfisher Airlines success?

Kingfisher airlines achieved success in gaining customer satisfaction by offering great and comfortable flying experience to its passengers. However, in the Indian aviation sector, Kingfisher Airlines had a short but lasting impression. By the end of 2011, Kingfisher Airlines suffered a huge financial crisis.

Who purchased Kingfisher Airlines?

Kingfisher House, the erstwhile headquarters of the now-defunct Kingfisher Airlines Ltd in Mumbai, which was founded by fugitive businessman Vijay Mallya, has been sold to Hyderabad-based Saturn Realters at Rs 52.25 crore — about one-third of its reserve price of Rs 135 crore.

Can Kingfisher Airlines Bounce Back?

Dubey said Kingfisher Airline’s ability to bounce back from this situation appears challenging. ”It means deep distress for its employees, creditors and lenders. Lenders are the worst hit since they may have to take a significant write-down of the loans that have gone bad.

Is Kingfisher beer still operating?

Mumbai: Kingfisher, one of the most popular beer brands in India, has been bought over by Heineken. The Dutch brewer bought the entire 3.21 per cent shares owned by United Spirits in United Breweries, which is the maker of the beer.

How can Kingfisher Airlines be saved?

2.] Reduce the skirt length of Kingfisher Airline Air Hostesses by 2 inches on loss making routes. The media would then describe this as a case of Kingfisher ‘Skirting the Issue’. Also offer complimentary Kingfisher Swimsuit Calendars to all flyers above the age of eighteen.

Who is the owner of Kingfisher Airlines Limited?

Kingfisher Airlines Limited was an airline group based in India founded and owned by Vijay Mallya, son of Vittal Mallya. Vijay Mallya continued to procure the list of 100 richest persons from the year 2003 to 2009. He founded the kingfisher airlines in the year 2003 and commenced its operations from 9 may 2005.

What was the non compete fee paid to Kingfisher Airlines?

Kingfisher Airlines had created three new departments in the airline to avoid paying capital gains tax. In addition, a non-compete fee of Rs.30 Crores (US$4 million ) was paid to the owner of Deccan Aviation, Captain Gopinath, which was not disclosed to shareholders.

What is the frequent flyer program for Kingfisher Airlines?

The frequent-flyer program of Kingfisher Airlines was called the King Club in which members earned King Miles every time they flew with Kingfisher or its partner airlines, hotels, car rental, finance and lifestyle businesses. There were four levels in the scheme: Red, Silver, Gold and Platinum levels.

What kind of loyalty program does kingfisher have?

Loyalty programme The frequent-flyer program of Kingfisher Airlines was called the King Club in which members earned King Miles every time they flew with Kingfisher or its partner airlines, hotels, car rental, finance and lifestyle businesses. There were four levels in the scheme: Red, Silver, Gold and Platinum levels.