Question

Read / research the Kingfisher Airlines case and identify and list any FIVE ethical and corporate governance issues involved, which led to its failure, along with your comments . Please elaborate in 1000 words.

Answer 1

In my opinion

1 - MISMANAGEMENT TURNED INTO SCAM.

in kingfisher there is no full time Managing Director or Chief executive officer , who operate airline efficiently

There is no Business model , only femal model.

There is no fixed strategy, it change strategy frequently , economy to premium , premium to mixed etc .

There is execution failure , it chose non profitable route.

2 - MISTAKE OF ACQUISITION AND EXPANSION.

it buy a Deccan Airline which is already bearing a loss. Kingfisher is already in the loss it have a loss of atleast 1 billion dollar.

when it expand it business in international routes then there is a conflict between the kingfisher red and kingfisher airline, kingfisher red is the changing name of Deccan airline , so consumer confused to choose which airline so they go to choose another airline. It doest not establish a well known brand name. In india kingfisher cant defeat the air india and jet airway as a competitior.

3 - FAST CASH , NO PROFIT

In kingfisher airline there is wrong calculation of past and wrong assumption to the future.

In india airline business climate is not good for all airline , but business model is Good if u make.

But kingfisher airline both business climate and business model are in bad position .

But vijay mailya ignore everything and focus on acquistion it buys many company without having money in his pocket he borrow money from bank.

Kimgfisher airlines fell because of

Increase in fuel.prices

Slow ticket sale

Dollar value increase

It cant repay the price of Hindustan petroleum for fuel .

4 - Taking Huge amount of loan from banks Like from icici bank and Hdfc bank .

5 - He have a debt amout approx 9000 crore and ran way from.india to britain ,