ipl-logo

Kingfooder Airlines: Case Study: Kingfisher Airline

1558 Words7 Pages

Starting of the crisis The company reported losses, ever since it commenced operations in 2005, refer to exhibit 1. Acquiring Air Deccan in 2007 made the situation even worse. After acquiring the Air Deccan, the company suffered a loss of over Rs. 1,000 crore for three executive years. By early 2012, the airline accumulated the losses of over Rs. 7,000 crore with half of its fleet grounded and several members of its staff going on strike. In November 2010, in order to cater heavy debts and interest from the loans taken, the company went in for debt restructuring. As a part of it total of 18 leading lenders agreed to reduce interests and convert part of debts to equity. Debt restructuring helped the company to lower down interest to 11% and save ₹500 crore/year as interest cost. But high leverages and increase in cost lead the company to liquidity and created following payment problems. Delayed Salary By 2010, Kingfisher Airline had the staff strength of 6,000 and used to spend ₹ 58 crore on salaries every month. According to the financial results of first quarter of year 2011, it had ₹ 174 crore under the segment of employees cost, which increased from ₹163 crore during the same year. From August 2011 to January 2012, Kingfisher Airlines was unable to pay salaries to its employees which lead to agitation by the employees. Kingfisher likewise defaulted on paying the Tax Deducted at Source (TDS) from the worker salary to the tax department. Fuel Dues Due to lack of funds, KFA

Show More
Related

  • Navistar's Lawsuit Against Deloitte

    607 Words  | 3 Pages

    Warranties are contingent liabilities; therefore, Navistar should have estimated the expenses and use accrual-basis accounting approach to record the warranty expense. The auditors should have looked at their warranty expense and unearned warranty revenue accounts to conclude if the numbers on the financial statements matched the numbers on the

    Read More

  • Nt1330 Unit 2 Assignment

    151 Words  | 1 Pages

    Therefore, we were shot on supplies and it will be us, who will take all the responsibility for the decrease in company revenue. In addition, Southeast

    Read More

  • Earth First Recycling Case Study

    462 Words  | 2 Pages

    Creditors Relief is assisting Earth First Recycling with their financial situation. It has come to the attention of Randy Tigar and Earth First Recycling that Pearl Beta Funding, LLC, represented by MCA Servicing and Steven Berkovitch, Esq., sent a UCC Lien Notice. As a result, Paychex is withholding funds designated of the payment of taxes. First, if Paychex does not release the funds immediately, it will be deemed a breach of the agreement between Paychex and Earth First Recycling.

    Read More

  • Pros And Cons Of The IRS

    218 Words  | 1 Pages

    The IRS (Internal Revenue Service) is the council that manages the assortment of individual taxes and even tax concerns in America. The IRS motivates its people to do their obligation in paying their taxes regularly by enabling them pay through installments. A discontinued payment results in penalty and an interest close to 8-10% on a yearly time frame for taxpayers. IRS installment is a nice choice for locals in [City] who are driven in searching for money for their taxes to be paid out entirely. Implementing this procedure, they can pay adequate funds for the tax while not being pressured to settle their budget on other payments.

    Read More

  • Mexican Tax Case Study

    2242 Words  | 9 Pages

    3. IRC Section 959(c)(3): remaining E&P. Per FY ’15 Form 5471 for St. John Mexico, the company had E&P balance of MXN 42,638,230 that was previously taxed under IRC Section IRC 956. Therefore, the distribution of the net proceeds USD 4.9M (i.e. MXN 102M) come out in the following order: 1.

    Read More

  • Sunflower Nutraceuticals Summary

    1939 Words  | 8 Pages

    This has placed SNC in a position to take on more leverage in the future, especially with its continuously growing interest coverage ratio. At the end of phase 3, SNC has a high interest coverage ratio of 105.88 due to the low level of interest expense, which steadily decreased from phase 1 to phase 3 . The improvement in interest coverage over the three phases shows investors that SNC is a creditable investment and shows SNC that they can take on more debt if needed. SNC is satisfied with its decision to switch to AT as its financier over MDM because of the long run potential benefits. Although SNC did not over draw its credit line or utilize the additional $500,000 on their credit line over the nine years, they have generated a cash surplus and enough value to meet their debt needs, as well as built a more stable and profitable company.

    Read More

  • Tax File Memorandum: Shelly Zumaya And Kiwi Corporation

    1042 Words  | 5 Pages

    February 27, 2017 Tax File Memorandum FROM: Derrek Mason SUBJECT: Shelly Zumaya and Kiwi Corporation Tax Liability FACTS: Shelly Zumaya is the president and sole shareholder of Kiwi Corporation (stock basis of $400,000). Kiwi Corporation, incorporated in 2003, is in the business of purchasing and reselling used farming equipment. In December 2012, Kiwi transferred its entire inventory (basis of $1.2 million) to Shelly Zumaya in a transaction that was recorded as a sale.

    Read More

  • Finance Case Study: The Wilkerson Company

    895 Words  | 4 Pages

    The pumps that the Wilkerson company produces are the “bread and butter” of this company. These products are produced at a high rate with a high price competition. As stated earlier, due to the severe price cutting by the competitors, the pre- tax margin of the company dropped extremely low to 3% percent and gross margin to 19.5%. Another product that the company produces are valves. The valves have remained steady around its planned gross margin of 35% with actual of 34.9%; these products are sold and shipped in huge bulk.

    Read More

  • Goodyear Vs Cooper Tire

    1893 Words  | 8 Pages

    The Tax Cuts and Jobs Act (TCJA) has provided major changes to the federal taxation landscape of US corporations nation-wide. The most notable change, the corporate statutory tax rate decrease from 35% to 21%, could potentially have a dramatic effect on the many tax characteristics of a company. This report will analyze the tax and accounting for income tax attributes for Goodyear Tire and its competitor Cooper Tire. The tax attributes examined include cash effective tax rate, operating countries, and net operating loss carryforwards. The accounting for income tax attributes evaluated include GAAP effective tax rate, unrecognized tax benefits, and deferred taxes.

    Read More

  • Grandma's Best Swot Analysis

    984 Words  | 4 Pages

    Overall, the increased debt is justifiable as they are producing a lot more, but it does hinder their liquidity and ability to take on more debt. In 2015 the company had a gross margin at 30.8% which was higher than the industry. This is a good indication that the

    Read More

  • Netflix And Blockbuster Case Study

    837 Words  | 4 Pages

    ’s growth slowdown due to its inability to compete in the online streaming segment in the film industry which made it harder for them to pay them their debt

    Read More

  • Hong Kong Dragon Airlines Case Study

    2150 Words  | 9 Pages

    (REF). In January 2006, the management of Hong Kong Dragon Airlines

    Read More

  • Jetblue Operations Management Report

    2269 Words  | 10 Pages

    Strategic Quality and Systems Management Report Operations Management Operations management is now the most essential part in maintaining organizational systems. Actually operations management means all the necessary activities of an organization like finance, human resource management, research, marketing etc (Elnathan, 1995). Whether it is planning, leading, organizing or controlling, they all are part of an organization’s operations management. Because of the speedy change of the business environment, internal and external factors like market position, market value, possibility etc. (Stanton, 2001).

    Read More

  • Singapore Airlines Case Study

    3552 Words  | 15 Pages

    1.0 Introduction to Strategic Management Strategic management practices the formation; achievement and reaching the major objectives executed by the management of the company, by considering the capital and a task of the internal and external environments in which the company wishes to compete. 1.1 Introduction to Singapore Airlines Singapore Airlines (SIA) is established in year 1972 with remarkable performance among its competitors in the industry throughout its 35-year-long history till date (Heracleous & Wirtz, 2009). According to Singapore Airlines (2014), SIA is one of the youngest aircraft fleets worldwide to destinations crossing a network of more six continents, with its iconic Singapore Girl providing excellent standard of service to customers. Throughout the years of operations, SIA has an impressive ever-growing list of industry 's leading innovations such as offering free headsets along with a choice of meals and drinks in Economy Class in the 1970s, followed by introducing satellite based in-flight telephones in year 1991, involving an ample panel of renowned chefs, the International Culinary Panel, to provide lush in-flight meals in year 1998, developing audio and video on demand (AVOD) capabilities on KrisWorld in year 2001, and lastly flying the airbus of A380 from Singapore to Sydney on 25 October 2007 (Singapore Airlines, 2014).

    Read More

  • Ryanair: The Transformation Process In The Airline Industry

    855 Words  | 4 Pages

    Moreover, it does not provide training to its staff. In contrary, employees are obliged to pay for their training programs so as to succeed in the workplace (Ryanair.com). It is wide known that Ryanair provides low salaries, which can only be balanced through productivity-based pay motives. For instance, it gives commissions for on-aircraft sales of products for flight attendants

    Read More

More about Kingfooder Airlines: Case Study: Kingfisher Airline

Open Document