1. Chitkara business school
Project of managerial economics
Cost cut strategies of
kingfisher and Indian airlines

2. Kingfisher airlines
 Kingfisher Airlines was established in 2003. Mr. Vijay
Mallya is the chairman and CEO of kingfisher airlines..
 It is one of the seven airlines awarded 5 star rating by
Skytrax..
 It operates more than 375 daily flights to 71
destinations with regional and long hour international
services..

3. CONTD….
 It is the largest passenger carrier having approx.
904000 flyers per month..
 It has the highest market share among airlines of
27.6%..
 It is also known as the “King of good times”..

4. Cost cut initiatives taken
KINGFISHER AIRLINES


5. kingfisher has reported
a saving of 530 crore
by CuTTiNg iTs COsT…

6. sTRATEgiEs………..
 Reduction in expatriate pilots from 180 to 83..
 Hiring more Indian pilots..
 Reduction in salaries of 50 trainee co-pilots to a
stipend of 20k..
 Slashes pilot salaries by 80,000..
 Working with a consortium of banks to reduce interest
costs and raise working capital..
 Coalition between Kingfisher and Jet Airways

7. Contd…..
 Reduction in aircrafts to 64..
 Aircraft utilization has increased by 11%..
 Reduction in lease costs..
 Kingfisher cut its debt through restructuring by
issuing shares to 14 banks..
 Preliminary negotiations with Air France-KLM to
selling out 20-25% stake..

8. CREATivE sTRATEgiEs…
 Advertising
 Fuel management
 Network rationalizing
 Reconfiguration of aircraft