Background Kingfisher airlines started out as a UB group subsidy, a USD 2 billion diversified conglomerate, which holds more than 60 companies under it which are associated with major industries. The United Breweries group owned the kingfisher airlines. Kingfisher airlines had then commenced its commercial operations in the year 2005 on the 9th of May. Operating with a fleet of four new Airbus A320-200’s, kingfisher airlines had its first travel from Mumbai to Delhi. Subsequently the airliner had even commenced its international maneuvers on the 3rd of September 2008, by interlinking Bangalore and London. However it faced a worsening economic scenario since 2008. The mighty airlines in the present day scenario is facing many bankruptcy problems, pushing the airline to ground many of its destinations and aircrafts. Introduction: It was the year 2006, when kingfisher airlines got listed in the stock exchange after it had been setup in the year 2003. The present day situation for KFA is that it has a staggering Rs.8200 Crore debt and the money to pay for fuel, salaries and airport fees etc. is running out. Due to this KFA has lost all its hopes and has pleaded the government to give them a total bailout but according to market analysts, the actual flaws in KFA’s business plans and the functioning are due to the endless woes of it , which is the major root problem of the airline. So my research question for the current commentary would be “Will kingfisher airlines be able to recover from the present debt crisis using the current financial strategies?” SWOT analysis Current Ratio Analysis GPM and NPM ratios - Analysis of the Balance Sheet Findings When Deccan Aviation’s Captain G.R Gopinath was looking forward to selling off his airline, then is when Vijay Mallya who kept denying that he couldn’t even think of buying an airline whose business model is so different than that of his had suddenly put in his bid and apparently clinched the deal. It was an interesting deal because KFA had got the license to fly immediately and got immediate listing as soon as it purchased Deccan Aviation but it was not all good, along with the goodies they had even acquired the losses incurred by the airline. The promoter group of the airline that is the UB Group had an experienced set of officials to run its business which majorly includes Vijay Mallya himself. The Airliner’s second problem was that its chairman was acting like an absentee landlord and was concentrating on his other business. The third mistake that Kingfisher Airlines had made was that they could have first consolidated its domestic operations and then got into international flying as then the competition increases a lot and only those with enormous money resources survive. SWOT Analysis Strengths Weaknesses Strong brand image Financial support from the promoter that is the UB group. First Indian carrier that started out with a whole new fleet of planes. Quality service and innovation Financial issues due to heavy debt borrowing The laying off of employees has caused a bad image. The maintenance costs were very high at ground and airline level. The company still has not met its breakeven. The ticket pricing was very high, not in the affordable range of the commoners unlike its competitors which are priced economically. Opportunities Threats Poor service of air India and problems of strikes in jet airways Growth in air travel, the number of passengers has increased Route Rationalization: cutting down business in unprofitable sectors and services to cities Debt Recast: Kingfisher Airlines must ask the banks to reduce the interest rates of the loans and possibly find a local investor to invest some money in their business Low cost carriers obtaining the larger market share Fuel costs also have increased subsequently Economic slowdown Infrastructure constraints