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.
Ryanair was the first European airline to set up special low fares and subsequently caused both British Airways and Aer Lingus to slash their prices Over the next five years the company grew rapidly, expanding the number and size of their aircrafts, and their routes . By 1990 they were carrying over 600,000
• Pay a high interest on the bank loan for the purchase of aircraft • And also paying extreme-overdue salaries only for the selected management department. Although Malaysia Airlines MAS does not show the best performance, but they still paid a high salaries to them regardless of the problems that MAS has faced. Under the various initiatives, launched together with the business turnaround plan, Malaysia Airlines switched from losses to profitability between financial year 2006 and financial year 2007. When the business turnaround plan came to an end, the airline posted a record profit of RM853 million in 2007, ending a series of losses since 2005. Two years after Idris Jala resignation, MAS is having the most historic losses in the airline industry, which is a shocking loss of RM2.5 billion in 2011.
14 crore to oil companies for jet fuel. Though, SpiceJet has paid Rs.13 crore to oil companies to revive back its operations. Airline has been operating on cash-for-carry basis. Airline has liabilities worth of Rs.1700 crore to lenders and suppliers. It has been reporting losses from past 5 quarters.
Powers customer service oriented airline among low-cost carriers. With the debacle that happened JetBlue must take airline customer service to even a higher precedent as issues such as passenger rights, getting planes off the ground on time, and employee empathy are addressed  David G. Neeleman the founder and CEO of JetBlue airlines said he was humiliated and mortified by the huge breakdown in the airline’s operation. He also admitted that the current crises which led to about 1,000 cancelled flights in five days, was the result of a shoestring communications system that left pilots and flight attendants in the dark, and undersized reservation systems. Later he changed his position but still remained in the company.  Jet Blue was in real need to take back the lost reputation they tried to asked their internal OD consultant to go for all the details .After synthesizing the data, the OD consultant met with SOC (service operation center)leadership to interpret the data during a one-day working session.
Unemployment Rate The employment rate has a strong impact on the recruitment process. Higher unemployment rate increases the applicants against the job opening. The firms can hire their perfect candidate on their own terms. So it makes the recruitment process simple. Lower rate will give the firms tough time to attract desired candidate with benefits.
Its stock was nearly doubled in last five years. Due to terrorist attacks in September 2001, more than 70,000 workers laid off. In the case study, we studied how major US air carriers like American, United, Northwest, Continental and Delta etc grounded a total of 240 aircrafts. In comparison, Southwest had not downsized a single employee and instead added more routes
Lufthansa and the employed pilots have spent weeks negotiating the compensation scheme and also the time the flight captains leave and their official retirement age. The strikes have reduced profit by about 100 million euros so far this year, Lufthansa has announced . ADAPTING THE BUSINESS CONCEPT TO REGULATORY TRENDS The ownership structure of Lufthansa before liberalization was 82% ownership of the Federal Government in 1985. Today Lufthansa is 100 % privatized and the ownership structure is only one of the examples in which Lufthansa has adapted the business concept to the regulatory trends in the European legal landscape. ADAPTING ORGANIZATION CONCEPT TO ACHIEVE THE BUSINESS
Furthermore, in the last decade, an increasing number of major shareholders attempt to influence corporate behaviour by using their equity stakes in organisation to pressure the management for improved performance and increase the value of their investments. However, shareholder activism is believed to be very controversial. Some proponents of shareholder activism believe that the involvement of shareholders in the management of the company ensures that the invested capital is spend properly and that the directors do grant themselves excessive remuneration packages and focus mainly on maximisation of shareholder value. Opponents, on the other hand, often criticise a high degree of shareholder activism as they considered that active investors are mainly focused on their own short-term benefits and profits and not on the long term aims and goals of organisations (Corkery,
It is started when, In 1994, a businessman Tan Sri Tajuddin Ramli via Naluri Bhd taking a loan from a group of syndicated lenders including Government-Linked Company (GLC) and Danaharta Nasional Bhd. He executed a facility agreement on July 13, 1994 to borrow RM1.79 billion to buy controlling shares in Malaysian Airlines Berhad in a price which is much higher than the market price, RM8 per share. For seven years he led the MAS, this is a period of various alleged fraud occurred. The company has cash reserves of RM600 million when Tajuddin took over, at that time, Tajuddin as the Chief Executive Officer (CEO) of MAS had fell due to the Asian financial crisis in 1997. Since then, MAS is having a loss of RM256 million in the financial year ended as at 1998, and a loss of RM255.7 million in the fiscal year ended in 2000 due to the losses on the income tax.