Kingfisher Debt Crisis

Code : FCF0021

Year :

Industry : Aviation Industry, Airline Industry

Region : India

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: Kingfisher Airlines, which redefined air travel in India, hit financial turbulence in late 2011 due to mounting debt and a shortfall in expected revenue. Despite restructuring the debt with the help of creditors, the airline found it difficult to extricate itself out of its troubles. The case tracks the transformation in the Indian aviation sector as well as the ups and downs of Kingfisher Airlines. It provides information on the complex debt restructuring exercise at Kingfisher Airlines.

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Pedagogical Objectives:

  • Comprehend the concept of capital structure and theories of capital structure
  • Discuss short-term financing and the challenges of managing liquidity
  • Understand the predicament of lenders (banks and financial institutions) in countries like India
  • Understand the debt restructuring process and the challenges of making it successful
  • Analyze the changing regulatory environment, tax structure, and tariff with regard to the airline industry in emerging economies

    Keywords : Air Deccan, Air travel, Aviation Fuel, Aviation Industry, Capital, Cash-trapped, Centre for Asia Pacific Aviation, Compulsorily Convertible Preference Shares, controlling stake, corporate debentures, coupon rate, Cumulative Redeemable Preference Shares, Debt Restructuring , De-merger, Depreciation, Downturn, Equity Shares, Financial Crisis, Financial Health, Foreign Direct Investment, Funded Interest Term Loan, Indian Airlines, International Air Transport Association, Jet lite, King Fisher Airlines, Kingfisher Red, Low Cost Carrier, Merger, Net Loss, Networth, Oil Prices, Optionally Convertible Debentures, paid up share capital, preferential shares, Private public participation, Promoter loans, Redeemable Non-Cumulative Preference Shares, Spicejet, United Breweries Holding Limited, Working Capital, Working Capital Term Loan

    Contents :
    Kingfisher Airlines
    Indian Aviation Industry
    Kingfisher in Financial Trouble

    Case Introduction >>

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