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Downfall of Kingfisher Airways

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Introduction:
Almost everyone knows the ongoing financial crisis in Kingfisher airlines, the airlines which is touted to be the second biggest private carrier in India. Successive days of flights cancellation, debt of Rs 7,500 crore and rising, a July-September quarter loss of Rs 469 crore, delayed salaries, pilots quitting, and reports of Chairman Vijay Mallya in negotiations with domestic investors. What do you think, is this because of the mere failure of proper management in Kingfisher airlines? Then you should reconsider your conclusion. Kingfisher airlines is not the first to suffer the bankruptcy in aviation sector but others have just managed to fly despite the problems they are facing. And some buckled under pressure laid their airlines to rest inside sheds forever. But what is the problem to make money in airlines business? Let's have an understanding on the most common problems for which aviation industries succumb to closure across the world. Recently an online news portal, Statesman.com, discussed the problems faced by airlines that eventually lead to their down fall. As we have understood, the core problem of the aviation sector could be traced to a single cause that is when Indian government deregulated the airlines industry, taking cue from the US government. Paul Stephen Dempsey, an expert in aviation and the law at Canada's McGill University, has analyzed that barely a decade after the Airline Deregulation Act of 1978 was implemented; the US airline industry lost all the money it made since the Wright Brothers' inaugural fight in 1903.

There was the time when airlines industry flew as the government dictated who could fly where and how much they could be charged, which let the airlines to generate a good profit but tickets were expensive. But hard times started after the implementing deregulation act, which wide opened the gates for competition. This led for the sharp fall in ticket prices and profit followed the same suit. The old airlines which failed to cope with business model set for the new era by the new competitors, crash landed their airlines once and for all.
Deregulation has not only led to fall of ticket prices but also increased the monopoly and concentration to tenfold. For instance, just four airlines are controlling the two-third of the US market, country that gave birth to the deregulation.

Expensive labor contracts, skyrocketing fuel prices and passengers used to cheap cross-country fares to be blamed for the current crisis. Other times, costly planes, fears of terrorism and even outbreaks of disease adds to the woes of ailing aviation.

Recession - when people endure the unemployment difficulties by default, airlines lose passengers. There are many lessons which Indian aviation have failed to learn or still being defiant to those reasons led to the sorry state of few airlines. Some anti-competitive, greedy airlines in order to control huge aviation market cause unhealthy competition, that eventually raise economical pressure.

Number of Pages of Project Report: 99
Package Includes: Project Report + Synopsis/Project Proposal
Project Format: Document (.doc)

Table of Contents of Project Report:
EXECUTIVE SUMMARY
CHAPTER-1 INTRODUCTION
1.1 INTRODUCTION TO THE TOPIC
1.2 OBJECTIVES OF THE STUDY
1.3 RATIONALE OF THE STUDY
1.4 REPORT STRUCTURE

CHAPTER-2 LITERATURE REVIEW
2.1 AIRLINE SERVICE QUALITY
2.2 FINANCIAL ACCOUNTABILITY
2.3 CUSTOMER EQUITY
2.4 QUALITY, COMPETITION AND AIRLINES
2.5 MEAN DIFFERENCE RESULTS
2.6 PRE-FLIGHT SERVICE QUALITY
2.7 IN-FLIGHT SERVICES
2.8 POST FLIGHT SERVICES

CHAPTER-3 AIRLINES INDUSTRY IN INDIA
3.1 GENESIS OF THE INDIAN AIRLINE INDUSTRY
3.2 HISTORY
3.3 INCIDENTS AND ACCIDENTS
3.4 PROBLEMS PLAGUING AIRLINES IN INDIA

CHAPTER-4 RESEARCH METHODOLOGY
4.1 RESEARCH PROBLEM
4.2 SAMPLE
4.3 QUESTIONNAIRE DESIGN AND PRE-TESTING
4.4 EXPECTED CONTRIBUTION FROM THE STUDY

CHAPTER-5 DATA ANALYSIS
CHAPTER-6 FINDINGS
CHAPTER-7 RECOMMENDATIONS
CHAPTER-8 LIMITATIONS
FUTURE RESEARCH OF THE STUDY

CHAPTER-9 CONCLUSIONS
CHAPTER-10 ANNEXURE
10.1 REFERENCES
10.2 QUESTIONNAIRE


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