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Kingfisher Airlines

In: Business and Management

Submitted By ankitgupta6
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KINGFISHER AIRLINES (BSE: KFA.BO) EQUITY RESEARCH

Investment Analysis Project (BEAM048)
Module Coordinator: Mr. Jamie Stephenson
Project Supervisor: Mr. Stanley Gyoshev
Candidate Number: 005293
Student ID No. 600050722
Word count: 5806*
*excludes tables, figures, appendices

TABLE OF CONTENTS

Executive Summary 5 1. Company Overview 6 A. Branding and Strategy 6 B. Recent Developments 7 2. Industry Review 8 A. Global Sector Overview 8 B. Aviation in India 9 a. Political Factors 9 Opportunities: 9 1. Foreign Direct Investment: 9 2. Infrastructure: 9 3. Debt Restructuring: 9 Threats: 10 1. Freedoms of Air agreements: 10 2. Ground handling Policy: 10 3. Spot Price Controls 10 4. World Politics: 10 b. Economic Factors 11 Opportunities: 11 1. GDP Growth: 11 2. Domestic Consumption and Per Capita Income: 12 Threats: 12 1. Global Recession: 12 2. Oil Prices: 13 3. Inflation: 13 c. Social Factors 14 Opportunities: 14 1. Per Capita Penetration 14 2. Demographics: Growing Middle Class and Urbanization 14 Threats: 15 1. Price Sensitivity: 15 d. Technological Factors 15 1. GAGAN – GPS Aided Geo Augmented Navigation 15 2. Google ITA Deal 15 3. Social Networking Sites 15 e. Legal Factors 16 1. Pilot Licenses 16 f. Environmental Factors 16 1. Geography 16 2. Carbon Foot Print 16 g. Security 16 3. Company Analysis 17 A. Revenues 17 B. Costs 18 C. Fleet Strategy: 18 D. Operational Efficiency 20 1. Load factors 20 2. RASK vs CASK 21 E. RISK MANAGEMENT 22 a. Enterprise Risk 22 b. Accounting Risk 22 c. Operational Risks 22 F. Competition 23 1. Market Share 23 2. Operational Parameters 24 3. Costs 25 4. Competition Outlook 25 4. Financial Forecasts 27 A. Debt 27 B. Revenues 28 C. Oil Prices 29 D....

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