The Decline Of Kingfisher Airlines

In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.

Qantas’ financial performance has been very successful in recent years with the business recovering strongly from GFC and a large decrease in revenue to ear 377 million in 2010. The effective financial performance has been the result of effective profitability, liquidity, efficiency, return on capital, good solvency and growth including the establishment of a new airline (jet star).

This paper will cover information about Hawaiian airlines. Founded in 1929, now in its 87th year of consecutive service, Hawaiian Airlines is Hawai 'i 's biggest and longest-serving airline, as well as the largest provider of passenger air service from its primary visitor markets on the U.S. mainland. Specifically, research to describe the airline, its aircraft fleet, route structure and number of employees will be provided. Information to determine whether Hawaiian airlines is organized as a corporation with private ownership or is owned by the national government will be given and discussed. Also, a brief description of the governmental agency or authority responsible for regulation of safety, as well as the certification requirements and minimum flight time for the commercial airline flight deck crewmembers. The governmental agency or authority that is empowered to regulate the routes flown, rates charged, and other economic aspects of the airline’s flight operations will be identified and discussed. Information will be given on the extent to which the airline’s fleet consists of owned vs. leased aircraft. All accidents involving an aircraft operated by that airline since 1/01/2000 will be identified to include the probable cause of each. Lastly, labor relationships of the airline’s pilots and maintenance personnel based in the airline’s home nation will be discussed; plus, any

o “In March 1984, … they finally agreed tentatively to lease and remodel Newark Airport’s Terminal C.” (p. 14)

having come a long way from its storied Alaskan bush plane roots. Today, Alaska Airlines is the

While it is difficult, to some extent, to evaluate the success of a merger that is only just now entering its final implementation phases, it is known that the objective of that merger was to use the larger route network to attract more business, and that the combined airline would also extract cost savings as the result of increased operational efficiency. The airline had struggled in 2009, with its sales declining, but it recovered in 2010 and 2011. Sales last year were $33.678 billion, up from $21.068 billion the year before. In the past two years, the company has turned a profit, going from $253 million in net income in FY2010 to $840 million in net income in FY2011. Some of this improvement may stem from the impact of the merger. However, the airline industry is highly cyclical, and the past two years have represented economic improvement. Likewise, the losses the company faced in FY2008 and FY2009 were as much the result of the economic downturn as they were internal business factors.

The situation of the U.S airlines has been affected by a number of factors through time and is not a secret that has been passed by moments difficult, especially in the economic part. One of these factors were the terrorist’s attacks of 911. No other event in history has changed the way of doing business that the fateful events of September 11, 2001. Apart from the significant human loss, the millionaire impact to the economy of New York and in the United States and multi-million dollar expenditure associated with the global war against terrorism, attacks on the World Trade Center (World Trade Center or WTC) in New York and the Pentagon trembled the authority of the United States, at a time when it was going through a recession. All this made

P. Airlines are subject to extensive regulatory and legal requirements issued by The Department of Transportation and The Federal Aviation Administration. The industry has to comply with laws and regulations not only domestically but also internationally which requires significant spending. After 9/11, many new security measures have been put into practice, resulting in expenditures for equipment, training the personnel, federal and airport charges, security taxes and etc.

They have been in the media twice in a matter of two weeks for different scandals. People have taken to social media to create hashtags and posts bashing the airline for their behavior and expressing their thoughts and disbelief for how they treat their customers. This is going to affect the company's image if not for a while, forever. To this day, people are still talking about the Dave Carroll incident, so after these two recent scandals and the way the airline handled them, they will be loosing a good chunk of their

1. There are a few trends in the US airline industry. One is consolidation, wherein existing players merge in an attempt to lower their costs and generate operating synergies. The most recent major merger was the United Continental merger, which is still an ongoing affair, but has created the largest airline in the United States by market share (Martin, 2012). Another trend is towards low-cost carriers. In the US, Southwest has been a long-running success and JetBlue a strong new competitor, but in other countries this business model has proven exceptionally successful. The third major trend is the upward trend in jet fuel prices, and the increasing importance that this puts on hedging fuel prices and capacity management (Hinton, 2011).

According to the flight tracking company, FligthAware, all inbound flights are being held at their origin until 1130 PM due to security.

Given the time and weather, the airline crew would have been under lot of stress and might be very eager to move on to their next task and also we need to consider operational expenses of a foreign airline. There are multiple issues here:

King launched their Survival plan— “tough, unpalatable and immediate measures” to stem the spiraling losses and save the airline from bankruptcy. The radical steps included reducing staff numbers from 52,000 to 43,000, or 20 percent, in just nine months; freezing pay increases for a year; and closing 16 routes, eight on-line stations, and two engineering bases. It also dictated halting cargo-only services and selling the fleet, and inflicting massive cuts upon offices, administrative services, and staff clubs.

The Airline Industry is in an interesting situation. Simply adding a low cost alternative is not enough in the industry. The Internet has made the power of buyers grow with the transparency of ticket prices. This is not something that will change any time soon. Because of this profitability is predominately reserved for low-cost yet distinctive carriers. No consumer wants to ride what they consider a “lesser” airline. Airlines need a way to distinguish themselves from one another while also acknowledging the increased power of buyers.

Airlines use a formula of combining their yield and inventory costs to determine ticket prices. While it is imperative to focus on the idea of being profitable, the focus is to maximize the cost of the flight revenue. One huge factor that encourages an increase in the cost of tickets relates to a customer ordering a ticket close to the departing date, define this as a risk factor because they need to make up for all unsold seats. A high percentage of the revenue is dedicated to overhead costs such as fuel and labor. When a ticket price is higher with one airline than the other, the customer interprets this as being an excessive cost. The demand is greatly affected by the external market