will revive kingfisher airlines within 90 days

8/13/2019 Will Revive Kingfisher Airlines Within 90 Days

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Will revive Kingfisher Airlines within 90 days:

Vijay Mallya

1.0Summary

Kingfisher Airlines Ltd. was a major airline group based in India. The registered office of the

airlines is in the hub of United Breweries i.e. UB City, Bengaluru. The main office from

where all the operations are planned and executed is in Andheri, Mumbai. At start, the

company has only 4 brand new aircrafts of Airbus A320-200. The first flight was from

Mumbai to Delhi in May 2005. Kingfisher Airlines was ranked as 5thBest among the aviation

sector in India. It was facing lot of issues and technical glitches for 2 years and finally on 20 th

October 2012, DGCA suspended its flying license causing all the aircrafts remain in hanger

and putting the future of more than 5000 staff associated with the airlines in danger. The

airlines had the second largest shares after Jet Airways in the Indian Domestic Aviation

sector. On 25thOctober 2012, the employees agreed to return to work when Dr,Vijay Mallya

declared to pay the dues of the staff. But only the top management got their long due salary

and hence there were massive strikes by the staff including pilots, cabin crew, engineering

staff and ground staff at Mumbai and Delhi airports repeatedly. Finally in February 2013,

Indian Government put stay order on Kingfisher Airlines and declared both of its

International and Domestic operations are withdrawn.( Mallya,V.2013)

2.0 Stakeholders

The company pays tax to the Indian Government and DGCA. In return it gets flying license

in domestic as well as international sector.Stakeholders Percentage

United Breweries Ltd 24.4%

Kingfisher Finvest India Ltd 7.8%

Dr.Vijay Mallya 1.8%

UB Overseas Ltd 1.6%

Other(Banks, Insurance companies,

Individuals)

64%


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3.0 Theories

Competition is definitely extreme with 5 airlines competing with one another neck-to-neck in

the Indian aviation without compromising on service, quality and security. The next tough

competitor for Airlines in India is Indian Railway. Majority of Indians prefer Railways for

shorter routes than Airlines as the fare will be quite less. But still the quality of treatment

getting in Airlines cannot be compared with that of Railways as the former gives too high

standards. The main reason why Kingfisher Airlines was a favourite among travellers is

because of five-star treatment by friendly crew chosen from the best among all along with on

time departures and arrivals. Thus, if they have chosen to be being a business centric airlines

even with increase in fare by say ten-per cent, business travellers would have still opted to

travel by Kingfisher Airlines.( Gupta,R.2013)

4.0 Conclusion

Kingfisher Airlines is bankrupt now and all its associated accounts are frozen. Government

even seized the Mumbai office of the company. To make a comeback into the Aviation

market, Kingfisher Airlines has to pay the dues first to oil companies, IATA and other

regulatory bodies and also to the staff of around 5000 people. Kingfisher Airlines need to

raise the fresh capital in order to hit the industry again. The airlines must have completed five

years of operations domestically

Maxis set to invest Rs 5k cr in Aircel

1.0 Summary

Maxis is, a part of Maxis communicatios, a telecom company in Malaysia growing bigger n

better and having more than 14.7 million, as of July 2013. Maxis continue to develop and

enhance the network and the communication of people by innovating new products and

services. Maxis expansion into Indian cellular market and also in Indonesia is a great

achievement to be a regional communications operator in three countries.

In Malaysia, Maxis mobile service in prepaid mode is termed under Maxis brand and in

postpaid mode under Hotlink brand. The main use of using two distinct brands for


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communications, underpinned by synergistic values, has enabled Maxis to maintain the

postpaid business at successful rate and developing prepaid business with a grand success.

Maxis3G is the first 3G service launched in Malaysia by Maxis communications in July

2005.

In September 2006, Maxis launched broadband services and was the first in the world to use

HSDPA to provide wireless broadband services.

It was the first operator to bring the Blackberry and Apple iPhone (smart phones) to

Malaysia.(Maran,T.2013)

2.0 Techniques

The three innovation techniques Maxis used are:

1) Process Innovation:Maxis introduced the mode of E-billing. Customers can pay various bills like

electricity, gas, telephone, broadband etc with just single click. No more queues to

pay the bills. Also Maxis introduced online banking mode for customers. They

can see the balance, transfer the money and also switch from one account to the

other under just a click.

2) Product Innovation:Maxis launched three satellites and the fourth one was damaged during the

transfer to the launch site and still under construction. The company always

modernize and upgrade the network for better coverage of the signal. Most of the

innovations in the smartphones are offered by Maxis and also make smartphones

adoption quite affordable with exciting plans, internet and many more.

3) Strategy Innovation:Maxis developed an application for all platforms of smartphones called my

Healthy Heart which acts as a personal companion to motivate and help a person

healthier lifestyle and spread health awareness. It also started Maxis insurance and

travel insurance at moderate rates for the benefits of the customers.

3.0 Theories

The majority of the stakes are owned by the owner of Maxis and Malaysias second richest

person Dato Ananda Krishnan. He owned 70% of the stakes. However the sale, which

reduced Krishnans stakes from 70% to 65%, was made due to the stake was sold to mostly


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local funds via several off-market deals. Employees Provident Fund held 5.30% while Skim

Amanah Saham Bumiputera 5.21% of the companys shares as at 27 July 2012.

Saudi Telecom Company(STC) bought 25% of the stakes.

Maxis have acquisition of:

51% stake in PT Natrindo Telepon Seluler (NTS), Indonesia and

74% equity interest in Aircel, India

Maxis tops the chart of leading communication services in Malaysia and also finds a place in

the Forbes list of top 2000 biggest, powerful companies. As it keeps on dominating the

cellular network not only in Malaysia but also in Indonesia and India, it gives great profit to

the stakeholders which keep on increasing every year by 5%.

4.0 Ethical Issues

Virtue:

Rate plans and Marketing strategies play a great role in the cellular industry. Thus to keep the

flow of consumers towards the company is very important. This can be done by providing

good customer service. This will help the people to increase the trust on the network.

Focus:

The time keeps on changing. Many new companies are trying to establish in the market by

offering the same services as that of Maxis. To make additional revenue in future and to

sustain in the market with number one rank, it is important to increase its investments by

including subsidies and other firms to support its broadband and cellular business.

6.0 Conclusion

After almost 8 years after launching the first 3G network, Maxis Communication reached the

peak by becoming Malaysia's leading cellular company. Not only this, it also become one the

top Fortunes 2000 best company with bright future. However, despite its relative youth, the

company has grown rapidly and stood at the top of the country's largest subscriber base of

more than 14.7 million users.

Maxis holds major stakes in Indian Cellular company Aircel and also in Indonesias service

provider PT Natrindo Telepon Seluler (NTS) which makes the company grow in other

countries as well. Slowly it is also growing in its broadband business. It has set the target to

capitalise on its huge customer base to push more content and offer broadband services

through advertisements and banners. In order to maintain a strong image of them, Maxis


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focus on the three innovations which are process innovation, product innovation and strategy

innovation.

They also are focusing on specific target groups of people in order to attract new customers to

use their service.(Krishnan,A.2013)

will revive kingfisher airlines within 90 days

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