King of Good Lesson - Kingfisher Airlines

Good Lessons learned from King of Good Times

The King of Good Times that made traveling in red coloured aircraft fashionable is now causing the employees and investors see red! The key lessons that the glam-boy of Indian industry has provided is a classic text book case study for any student of management. Let us look into the lessons learnt from the Kingfisher saga.

KINGFISHER AIRLINES FINANCIAL PROBLEMS

• Cash is King - In capital intensive industries like airline it is important to have more focus on fundamentals and balance sheet than the glamour associated with the King of Good Times. Clearly, the management of the Kingfisher Airlines missed a trick or two and let the huge debt pile on its books. What is even more amazing is that even the lenders were largely caught unawares of the mess the company had entered into!
• Bite what you can chew - It is obvious that the operations of the company had moved beyond its control and consequently it was left with no option than to shut down many flight plans. The company could not manage its unwieldy position.
• Cut the flab and stay slim-trim - It is ironical that the brand that is associated with size-zero models adorning its signature calendars could allow over Rs. 8000 crores pile-up on its balance sheet. This obesity-styled debt-heavy situation finally caused the planes to come down.
• Drinking and driving don't mix - Clearly Vijay Mallya group mixed both for some heady ride for the travellers, employees and its investors. While the Kingfisher brand has been doing well under the United Breweries, it failed to play by its strengths and allowed itself to be embroiled in an industry where it had to settle as also ran. It is a classic case where young managers provided lessons not to diversify in areas where one does not have strategic advantages and stick to those business where one is a market leader.

The case of the King of Good Times is a work in progress, stay tuned for more lessons that are coming your way.