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KINGFISHER AIRLINES: MANAGING MULTIPLE STAKEHOLDERS
The entire airline industry in India came under close scrutiny after Kingfisher Airlines, already known to be in deep trouble with a variety of stakeholders, cancelled about 35 flights, one day in November 2011. Many passengers had harrowing experiences of being stranded at odd locations, making alternate arrangements to travel, and rescheduling important engagements owing to the travel disruptions. Most of them, many very loyal customers of Kingfisher, were distressed with the cancellations, and were even more distraught when other airlines raised fares. Many of them contemplated switching their future travel programs to other airlines. Several others not directly affected by the sudden events wondered whether they would ever book flights with Kingfisher Airlines in the future. Owing to the furor these cancellations created, the Directorate General of Civil Aviation (DGCA) sought explanations from the Kingfisher management. To prevent the crisis from affecting the whole airline industry, the Minister of Civil Aviation had to step in to assure everyone that it was a crisis that would blow over, and even the Prime Minister was forced to make a statement that the government would look for ways to help the airline deal with its existing challenges.
On November 15, 2011, Vijay Mallya, Chairman and Sanjay Aggarwal, Chief Executive Office of Kingfisher Airlines addressed a press conference at Mumbai’s Hyatt Regency to explain the sudden cancellation decisions of the airline. They attempted to clarify that the cancellations were the result of a well-planned initiative and part of a long-term restructuring process, although it might have come as a surprise to outsiders. The CEO suggested that they had initially planned to cancel flights for a short period of time so they did not feel the need to notify the DGCA, but when

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