kingfisher airlines
TRANSCRIPT
AVIATION INDUSTRYOne of the fastest growing industries in the world.
India has the private airlines as its key players and 75% of the market share is owned by the private sector.
Problems that the Indian aviation industry is facing are:
High rising prices of the ATF. The cost of labour is rising in our country. Shortage of skilled labour. Infrastructure constraints.
Kingfisher Airlines
REGISTERED OFFICE :
UB Tower, Level 12, UB City, 24, Vittal Mallya Road,
Bangalore – 560 001
Kingfisher Airlines BOARD OF DIRECTORS
Dr. Vijay Mallya, Chairman & CEOCapt. G. R. Gopinath, Vice Chairman
Capt. K.J. SamuelMr. A.K. Ravi Nedungadi
Mr. Vijay AmritrajMr. Anil Kumar Ganguly
Mr. Piyush G. Mankad Dr. Naresh TrehanDiwan Arun Nanda
Mr. Ghyanendra Nath Bajpai
Kingfisher Airlines
Kingfisher Airline is a private airline based in Bangalore, India.
The airline is owned by Vijay Mallya of United Beverages Group.
Kingfisher Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts.
The airline currently operates on domestic routes. The destinations covered by Kingfisher Airlines are Bangalore, Mumbai, Delhi, Chennai, Hyderabad, Ahmedabad, etc
In a short span of time Kingfisher Airline has carved a niche for itself.
The airline offers several unique services to its customers.
These include: personal valet at the airport to assist in baggage handling and boarding, accompanied with refreshments and music at the airport, audio and video on-demand, with extra-wide personalized screens in the aircraft and three-course gourmet cuisine.
Kingfisher Airlines
Kingfisher Airlines
Kingfisher Airlines starting operating with a brand new fleet of 8 Airbus A320 aircraft, 3 Airbus A319-100 aircraft and 4 ATR-72 aircraft.
It was the first airline in India to operate with all new aircrafts. Kingfisher Airlines is also the first Indian airline to order the Airbus A380.
UB holdings Ltd, has acquired 46% stake in the budget airline Air Deccan
MARKET SHARECurrent ScenarioCurrent Scenario
Kingfisher Airlines -> 20.8%Kingfisher Airlines -> 20.8%
Jet Airways -> 19 %Jet Airways -> 19 %
Indian + Air India -> 18.3%Indian + Air India -> 18.3%
Indigo -> 15.4 %Indigo -> 15.4 %
Spice Jet -> 12.9%Spice Jet -> 12.9%
Others -> 13.6%Others -> 13.6%
Kingfisher Airlines KFA at a Glance
Total connections to 70 cities including 7 international destinations flying over 350 flights a day.
Over 45 million guests flown since inception
Current Fleet size of 67 aircraft (39 Airbus and 28 ATRs’). Market Share of 20.8%
Recognized as one of India’s Most Respected Companies in 2006 and 2007 –Business World
India’s only 5 star airline –by independent agency Skytrax
Kingfisher Airlines
Domestic operations have achieved an EBITDA profit of Rs 15 Cr in the 9 months ended Dec 09 vs a loss of Rs 1058 cr in the same period last year
Domestic revenue up 17%
Guests flown increased by 5% despite 3% reduction in capacity
Capacity deployed decreased by 1.06 lac seats.Guests flown increased by 1.14 lacs
Highest ever seat factor of 80.2% achieved during December 2009
KFA at a Glance
Kingfisher Airlines
Kingfisher Airlines, India’s only Five Star Airline rated by Skytrax, has been granted traffic rights to operate on seven new international routes.The new international routes for which traffic rights have been granted are:1New Delhi – London – New Delhi2New Delhi – Hong Kong – New Delhi3New Delhi – Bangkok – New Delhi4New Delhi – Dubai – New Delhi5Mumbai – Colombo- Mumbai6Mumbai – Bangkok- Mumbai7Mumbai – Dubai – Mumbai
Expansion Plans :
Kingfisher Airlines
Kingfisher Airlines will soon be commencing flights from New Delhi to London Heathrow along with six other new international routes. The launch of these new flights will further enhance the international route network of Kingfisher Airlines. The addition of these new services will mean that we will now be able to further leverage the unparalleled domestic route network of Kingfisher Airlines to maximize yields. With their unique domain expertise in aviation in general and in network planning in particular, Seabury, Kingfisher Airlines’ globally renowned advisors will ensure excellent connectivity for all these new services
Expansion Plans :
Kingfisher Airlines
Passengers(Kingfisher First/Kingfisher Class)
ATR 42-500 3 – – 48 (0/48) Both aircraft dry leased.17 66 (0/66)8 72 (0/72)
Airbus A319-100 3 – – 144 (0/144) All 3 dry leased.10 134 (20/114)3 67 174 (0/174)10 – 180 (0/180) 6 151 (32/119)2 – – 199 (0/199)
Airbus A330-200 5 15 – 217 (30/187) Deliveries through 2010-2012.Airbus A350-800 – 5 – TBD Deliveries starting 2014.Airbus A380-800 – 5 5 TBD Deliveries starting 2014.
Total 67 130 25
Kingfisher Airlines Fleet
Orders Options NotesIn Service Aircraft
2 dry leased.Airbus A321-200
ATR 72-500 38 20 15 new aircraft to be dry leased
Airbus A320-200 9 dry leased
Deliveries through 2010-2012.
Expansion Plans :
Kingfisher AirlinesFinancial Highlights
Total Operating Revenues of Rs 3776 Cr (-9% over YTD FY 09) (Domestic Revenues of Rs. 3412 Cr vs. Rs. 4132 Cr in YTD FY 09)
EBITDAR profit of Rs 485 Crvs. loss of Rs 442 Cr for YTD FY 09(Domestic EBITDAR of Rs. 679 Cr vs. loss of Rs.246 Cr in FY 09) -improvement of Rs 925 Cr
EBITDA loss of Rs. 355Crvs. loss of Rs. 1342 Cr in YTD FY09(Domestic EBITDA profit of Rs.15 Cr vs. loss of Rs 1058 Cr in FY 09) -improvement of Rs 1073 Cr
Revenue passengers carried 8.22 Mn vs. 8.11 Mn (up 1.4% over YTD FY09)
Kingfisher AirlinesCompany P&L
Apr 09 -Dec 09 Apr 08 -Dec 08 Variance %(Rs. Cr) (Rs. Cr)
3,776 4,168 -9%43 16 169%
3,819 4,184 -9%
Employee Remuneration & Benefits 531 620 -14%1,319 2,267 -42%1,484 1,739 -15%
485 -442
840 900 -7%4,175 5,526 -25%
-355 -1,342
156 125 25%818 529 55%
5,149 6,180 -17%
1329 1996 -33%300 -459
-554 -482
PROFIT / (LOSS) AFTER TAXATION -1,075 -1,055 2%
Particulars
Total Expenditure
Interest
Exceptional ItemLoss before exceptional items and Tax
Provision for taxation
Other Operating Expenses
EXPENDITURE
Aircraft Lease RentalsTotal Operating Expenditure
Depreciation
EBITDA
EBITDAR
INCOMEOperating RevenueNon Operating Revenues
Aircraft Fuel Expenses
Total Revenues
Kingfisher AirlinesProjected P& L for next 5 years
Apr 10 -Dec 10 Apr 11 -Dec 11 Apr 12 -Dec 12 Apr 13 -Dec 13 Apr 14 -Dec 14(Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs. Cr)
5098 6372 7965 10753 1462458 73 91 113 136
5156 6187 8056 10866 14760
Employee Remuneration & Benefits 637 701 785 942 11301583 1899 2944 4563 73011781 2137 2564 2949 3539
1155 1450 1762 2412 2789
1260 1410 1685 2060 2410
-105 40 77 352 379
234 276 414 621 9321068 1218 1068 1043 1018
-1407 -1455 -1405 -1312 -1570
200 240 250 260 275-550 -660 -625 -550 -850
PROFIT / (LOSS) AFTER TAXATION -1057 -1035 -1030 -1022 -995
Particulars
Interest
Exceptional Item
Loss before exceptional items and Tax
Provision for taxation
Other Operating Expenses
INCOMEOperating RevenueNon Operating Revenues
Aircraft Fuel Expenses
Total Revenues
EXPENDITURE
EBITDAR
Aircraft Lease Rentals
Depreciation
EBITDA
Kingfisher AirlinesKFA: Debt Profile
As of Dec-09
Working Capital 907
Short Term Loans 2,099
Long Term Loans 2,720
PDP Loans 363
Aircraft lease finance 802
Other Debt including Group 523
Total Debt 7414
Debt Profile INR Crores
Kingfisher AirlinesKey Initiatives planned to further enhance performance
Further Initiatives to generate higher revenues & improve consumer connect
New frequent flyer program launched with unique features like non-air rewards, family club etc.
New Internet booking engine driving greater consumer traffic towards online bookings
Incremental passenger connections generated through launch of ‘One Stop Connect’campaign
Kingfisher AirlinesKey Initiatives planned to further enhance performance
Stringent actions planned and undertaken to keep costs under control
Reduced lease costs by >25% (over Q3 FY09) through redelivery of non-operational aircrafts
Reduced personnel costs by >20% (over Q3 FY09) through replacing high cost expects
Planned to reduce Engineering costs by 10-15% by induction of new key vendor
Successfully implemented ‘Fuel Monitoring System’ for targeted reduction in fuel consumption
Exercised stringent controls across over heads to reduce costs e.g. Optimize office & warehouse spaces across all locations, planned reduction of communication costs etc.
Kingfisher Airlines
S.W.O.T. ANALYSISS.W.O.T. ANALYSIS
STRENGTHSSTRENGTHS
Strong brand value and reputation in the minds of customers.Strong brand value and reputation in the minds of customers. Quality of the service.Quality of the service. Route rationalization.Route rationalization. First airline to have a new fleet of airbuses.First airline to have a new fleet of airbuses. Quality and continuous innovation.Quality and continuous innovation.
WEAKNESSESWEAKNESSES
Still a not in profit organization.Still a not in profit organization. High ticket pricing.High ticket pricing. Facing a tough competition from competitors.Facing a tough competition from competitors.
Kingfisher Airlines
S.W.O.T. ANALYSISS.W.O.T. ANALYSIS
OPPORTUNITIESOPPORTUNITIES
The expanding tourism industry.The expanding tourism industry. The non penetrated domestic market.The non penetrated domestic market. International market.International market. Untapped air cargo market.Untapped air cargo market.
THREATSTHREATS
CompetitorsCompetitors Infrastructure issues.Infrastructure issues. Fuel price hike.Fuel price hike. Economic slowdown.Economic slowdown.