ANNUAL kLCk1 kINGIISnLk AIkLINLS

Subm|tted by
Am|t Anand
400907031



1he U8 groupn|story
u8 group ls a mulLlfaceLed conglomeraLe wlLh buslness lnLeresLs ln
8everages Alcohols harmaceuLlcals Medla 8esearch
uevelopmenL lnLernaLlonal 1radlng AvlaLlon lL was founded by
ScoLLlsh genLleman 1homas Lolshman ln 1913 lL sLarLed wlLh beer
manufacLurlng aL LhaL Llme ln AugusL 1947 vlLLal Mallya became Lhe
company's flrsL lndlan dlrecLor a year laLer he became Lhe
chalrman of Lhe group
ln 2003 under Lhe chalrmanshlp of ur vl[ay Mallya Lhe u8 group
made lLs presence felL ln Lhe AvlaLlon lndusLry under Lhe name of
klngflsher Alrllnes
lL sLarLed lLs operaLlons wlLh 4 dally fllghLs beLween Mumbal and
new uelhl wlLh lLs hub sLaLlon esLabllshed aL 8angalore lnLernaLlonal
AlrporL and secondary hubs aL new uelhl Mumbal
Lver slnce lLs launch ln May 2003 klngflsher Alrllnes has
blazed a Lrall of lnnovaLlons and lnLroduced a range of
markeLflrsLs LhaL have compleLely redeflned Lhe whole
experlence of flylng 8y elevaLlng lLs cusLomers Lo a level of
belng 'guesLs' and noL [usL passengers klngflsher Alrllnes has
endeared lLself Lo consumers klngflsher Alrllnes was Lhe flrsL
lndlan alrllne Lo lnLroduce lnfllghL enLerLalnmenL (llL)
sysLem on domesLlc fllghLs assengers onboard are
provlded compllmenLary 'welcome klL' LhaL conLalns a pen
faclal Llssue and headphone Lo use wlLh Lhe llL sysLem
klngflsher Alrllnes has made alllance wlLh ulsh 1v Lo provlde
llve 1v enLerLalnmenL Lo passengers
klngflsher Alrllnes ls one of Lhe only seven alrllnes awarded
3sLar raLlng by SkyLrax along wlLh CaLhay aclflc CaLar
Alrways Aslana Alrllnes Malaysla Alrllnes Slngapore Alrllnes
and Palnan Alrllnes klngflsher operaLes more Lhan 373 dally
fllghLs Lo 71 desLlnaLlons wlLh reglonal and longhaul
lnLernaLlonal servlces ln May 2009 klngflsher Alrllnes
carrled more Lhan 1 mllllon passengers glvlng lL Lhe hlghesL
markeL share among alrllnes ln lndlaklngflsher also owns
Lhe skyLrax award for lndlas besL alrllner of Lhe year 2011
est|nat|ons
klngflsher Alrllnes serves 63 domesLlc desLlnaLlons and 8
lnLernaLlonal desLlnaLlons ln 8 counLrles across Asla and
Lurope klngflshers shorL haul rouLes are mosLly domesLlc
aparL from some clLles ln SouLh Asla SouLheasL
Asla and WesLern Asla All shorL haul rouLes are operaLed on
Lhe Alrbus A320 famllyalrcrafL A18 42s and A18 72s are used
malnly on domesLlc reglonal rouLes klngflsher has lLs
medlum longhaul desLlnaLlons ln LasL Asla SouLheasL Asla
and Lurope lLs flrsL long haul desLlnaLlon was London unlLed
klngdom whlch was launched ln SepLember 2008 lL has plans
Lo launch new long haul fllghLs Lo clLles ln Afrlca Asla
Lurope norLh Amerlca and Cceanla wlLh dellverles of new
alrcrafL All long haul rouLes are operaLed on Lhe Alrbus
A330200

8oard of Members




Mergers Acqu|s|t|ons








k|ngf|sher Market
lL has nearly 1400 sLores ln 17 counLrles wlLh a LoLal Lurnover
of 12 bllllon lL employs around 100000 people
Segmentat|on
klngflsher alrllnes LargeLed passengers from all caLegorles
and reglons lL came up wlLh dlfferenL caLegorles of servlces
for Lhe varled classes of passengers Lravelllng
uomesLlc
kinqfisher lirst
1he domesLlc klngflsher llrsL seaLs have a 48 lnch seaL plLch
and a 126 degree seaL recllne 1here are lapLop and moblle
phone chargers on every seaL assengers can avall of Lhe
laLesL lnLernaLlonal newspapers and magazlnes 1here ls also
a sLeam lronlng servlce on board klngflsher llrsL cablns Lvery
seaL ls equlpped wlLh a personallsed llL sysLem wlLh AvCu
whlch offers a wlde range of Pollywood and 8ollywood
movles Lngllsh and Plndl 1v programmes 16 llve 1v
channels and 10 channels of klngflsher 8adlo assengers
also geL 8CSL nolse cancellaLlon headphones
uomesLlc klngflsher llrsL ls only avallable on selecLed Alrbus
A320 famlly alrcrafL
kinqfisher c/oss
1he domesLlc klngflsher Class has 3234 lnch seaL plLch
Lvery seaL ls equlpped wlLh personal llL sysLems wlLh AvCu
onboard Lhe Alrbus A320 famlly alrcrafL As ln klngflsher
llrsL passengers can access Lhe movles Lngllsh and Plndl 1v
programmes a few llve 1v channels powered by ulsh1v and
klngflsher 8adlo 1he screen ls conLrolled by a conLroller
console on Lhe seaL armresL Larcup headphones are
provlded free of cosL Lo all passengers 1he defaulL channel
shows alLernaLlng every few seconds 1he aeroplanes
ground speed ouLslde LemperaLure alLlLude dlsLance and
Llme Lo desLlnaLlon Lhe poslLlon of Lhe alrcrafL on a graphlcal
map and one or more adverLlsemenLs
assengers are served meals on mosL fllghLs 8efore Lakeoff
passengers are served boLLled Lemonade
kinqfisher ked
AfLer klngflsher Alrllnes acqulred Alr ueccan lLs name was
changed Lo Slmpllfly ueccan and subsequenLly Lo klngflsher
8ed klngflsher 8ed ls klngflsher Alrllnes lowcosL class on
domesLlc rouLes A speclal edlLlon of Clne 8llLz magazlne ls
Lhe only readlng maLerlal provlded
klngflsher Alrllnes ls Lhe flrsL alrllne ln lndla Lo exLend lLs klng
Club frequenL flyer program Lo lLs lowcosL carrler as well
assengers can earn klng Mlles even when Lhey fly klngflsher
8ed whlch Lhey can redeem for free LlckeLs Lo Lravel on
klngflsher Alrllnes or parLner alrllnes









Serv|ce r|ce |fferent|at|on


SWC1 Ana|ys|s
1 S18LnC1PS
O SLrong brand value and repuLaLlon ln Lhe mlnds of Lhe
consumer
O u8 group as Lhe parenL company
O llrsL lndlan alrllne Lo have a new fleeL of planes
O CuallLy servlce and lnnovaLlon
O More Lhan 80 desLlnaLlons
O Less Lhan 100 people (employees) per alrcrafL
2 WLAknLSSLS
O SLlll ln 8Lu (sLlll Lo 8reak Lven)
(An ouLsLandlng of 930crs only Lo oll markeLlng cos Llll
may end )
O Plgh LlckeL prlclng (kl llrsL Class)
O 1ough compeLlLlon from lndlan as well as lnLernaLlonal
players
3 CC81unl1lLS
O lf able Lo survlve for a couple of years Lhen can have a
blg markeL share
O unLapped lnLernaLlonal MarkeLs
O unLapped cargo markeL
O Lxpandlng Lourlsm buslness
4 1P8LA1S
O lalllng demand
O Cver capaclLy ln Lhe skles
O A1l prlces
O Lconomlc slowdown
O lnfrasLrucLure lssues

Awards Ach|evements
klngflsher Alrllnes frequenL flyer programme klng Club has
won 1op Ponours aL Lhe 21sL Annual lreddle Awards ln Lhe
!apan aclflc Asla and AusLralla reglon
klng Club has won Lhe lreddle Awards 2008 ln Lhe
followlng caLegorles
8esL 8onus romoLlon
8esL CusLomer Servlce
8esL Member CommunlcaLlons (llrsL 8unnerup)
8esL Award 8edempLlon (llrsL 8unnerup)
8esL LllLe Level (Second 8unnerup)
8esL WebslLe (Second 8unnerup)
rogram of Lhe ?ear (Second 8unnerup)
klngflsher Alrllnes has recelved Lhree global awards aL Lhe
SkyLrax World Alrllne Awards 2010
named 8esL Alrllne ln lndla / CenLral Asla 8esL Cabln Crew
CenLral Asla
klngflsher 8Lu named 8esL Low CosL Alrllne ln lndla /
CenLral Asla
nu1v roflL 8uslness Leadershlp Award for AvlaLlon
lndlas only 3 SLar alrllne raLed by SkyLrax and 6Lh alrllne
ln Lhe world
8aLed lndlas Second 8uzzlesL 8rand 2008 by 1he 8rand
8eporLer
8anked amongsL lndlas 1op Servlce 8rands of 2008 by
lLch Magazlne
voLed as lndlas lavourlLe Alrllne
8aLed as Asla aclflcs 1op Alrllne 8rand
8rand Leadershlp Award
Lconomlc 1lmes Avaya Award 2006 for Lxcellence ln
CusLomer 8esponslveness
lndlas no 1 Alrllne ln cusLomer saLlsfacLlon by 8uslness
World
8aLed amongsL lndlas mosL respecLed companles by
8uslness World
8aLed amongsL lndlas 23 lnnovaLlve Companles by
lanman Medla ln 2006
1he 8esL Alrllne and lndlas lavourlLe Carrler ln a Survey
conducLed by lM8 for 1he 1lmes Cf lndla
8esL new uomesLlc Alrllne for LxcellenL Servlces and
Culslne by aclflc Area 1ravel WrlLers AssoclaLlon
(A1WA)
Servlce Lxcellence 20032006 for a new Alrllne by SkyLrax
8anked 1hlrd ln Lhe survey on lndlas MosL Successful
8rand launch of 2003 under Lhe 8rand uerby Survey
conducLed by 8uslness SLandard
8uzzlesL 8rands of 2003 by agencyfaqs and 1he 8rand
8eporLer
8aLed amongsL Lhe 1op 1en lnLerneL AdverLlsers by ?ahoo
8aLed amongsL Lhe Lop Len ln Lhe 8esL 1elevlslon
Commerclal !lngles by nu1v
8esL new Alrllne of Lhe ?ear Award for 2003 by CenLre for
Asla aclflc AvlaLlon (CAA) Award ln Lhe Aslaaclflc and
Mlddle LasL reglon
LlsLed ln Lhe Lop 100 mosL LrusLed brand ln 1he 8rand
1rusL 8eporL
I|nanc|a| 1urmo||
Slnce lncepLlon klngflsher Alrllnes ls yeL Lo posL proflL on
annual LoLal cosL basls
Debt Recast
ln nov 2010 klngflsher Alrllnes has compleLed resLrucLurlng
8000 crore (uS$162 bllllon) debL wlLh all 18 lenders
agreelng Lo cuL lnLeresL raLes and converL parL of loans Lo
equlLy32
Lenders have converLed 630 crore (uS$13182 mllllon) debL
lnLo preference shares whlch wlll be converLed lnLo equlLy
when Lhe alrllne llsLs on Lhe Luxembourg SLock Lxchange by
selllng global deposlLary recelpLs (Cu8) Shares wlll be
converLed lnLo ordlnary equlLy aL Lhe prlce aL whlch Lhe Cu8s
are sold Lo lnvesLors 8esldes Lhe 1400 crore (uS$28392
mllllon) debL whlch wlll be converLed lnLo preference shares
anoLher 800 crore (uS$16224 mllllon) debL has been
converLed lnLo redeemable shares for 12 years32
Alrllnes average lnLeresL raLe ls now down Lo 11 helplng
Lhe alrllne save 300 crore (uS$1014 mllllon) crore every year
on lnLeresL cosL ConsorLlum of banks was represenLed by S8l
CaplLal MarkeLs
klngflsher Alrllnes LLd has lnformed 8SL LhaL Lhe 8oard of
ulrecLors of Lhe Company aL lLs meeLlng held on november
23 2010 has approved a uebL 8ecasL ackage (u8) wlLh
lendlng banks followlng a oneLlme relaxaLlon ln
resLrucLurlng guldellnes sancLloned by Lhe 8eserve 8ank of
lndla 1he sallenL feaLures of Lhe u8 lnclude
Converslon of debL of up Lo 1333 crore (uS$27479 mllllon)
from lenders lnLo share caplLal32
Converslon of debL of up Lo 648 crore (uS$13141 mllllon)
from promoLers lnLo share caplLal
8eschedulemenL of repaymenL of Lhe balance debL Lo lenders
over 9 years wlLh a moraLorlum of 2 years
8educLlon ln lnLeresL raLes
SancLlon of addlLlonal fund and nonfund based faclllLles by
Lhe lenders
Whlle 8oard sancLlon has been recelved from several
lenders Lhe same ls shorLly expecLed from Lhe oLhers 1he
u8 ls sub[ecL Lo execuLlon of necessary documenLaLlon
ln order Lo glve effecL Lo Lhe u8 menLloned above Lhe
8oard of ulrecLors aL lLs MeeLlng held on november 23
2010 has resolved as follows sub[ecL Lo Lhe above approvals
and sub[ecL Lo Lhe approval of Lhe shareholders and such
oLher regulaLory and oLher approvals as may be requlred32
1o lssue and alloL up Lo 373000000 (llfLy Seven Crores llfLy
Lakhs only) 8 8edeemable CumulaLlve reference Shares of
10 (uS$02) each redeemable aL par aL Lhe end of 12 years Lo
Lhe members of Lhe consorLlum of lenders ln conslderaLlon of
Lhe exLlngulshmenL of Lhe amounL due Lo Lhe members of
Lhe consorLlum of lenders under varlous loan faclllLles avalled
by Lhe Company
1o lssue and alloL up Lo 780000000/ (SevenLy LlghL Crores
only) 73 Compulsorlly ConverLlble reference Shares of 10
(uS$02) each Lo Lhe members of Lhe consorLlum of lenders
ln conslderaLlon of Lhe exLlngulshmenL of Lhe amounL due Lo
Lhe members of Lhe consorLlum of lenders under varlous loan
faclllLles avalled by Lhe Company
1o amend Lhe Lerms and condlLlons of 9700000 (nlneLy
Seven Lakhs only) 6 8edeemable reference Shares of 100
(uS$203) each lssued Lo unlLed 8rewerles (Poldlngs) LLd
(romoLer Company) lnLer alla Lo converL Lhese shares Lo
97000000 (nlne Crores SevenLy Lakhs only) 6
Compulsorlly ConverLlble reference Shares of 10 (uS$02)
each
1o lssue and alloL up Lo an aggregaLe of 648000000/ (SlxLy
lour Crores LlghLy Lakhs only) 73 Compulsorlly ConverLlble
reference Shares of 10 (uS$02) each Lo unlLed 8rewerles
(Poldlngs) LLd and Lo klngflsher llnvesL lndla LLd (romoLer
Companles) ln conslderaLlon of Lhe exLlngulshmenL of Lhe
amounL due Lo unlLed 8rewerles (Poldlngs) LLd and
klngflsher llnvesL lndla LLd from Lhe Company
1o lssue and alloL up Lo 20000000/ (1wo Crores only) 8
CpLlonally ConverLlble uebenLures of 100 (uS$203) each Lo
SLar lnvesLmenLs LLd ln conslderaLlon of Lhe exLlngulshmenL
of Lhe amounL due Lo SLar lnvesLmenLs LLd from Lhe
Company
1o lssue and alloL up Lo 30000000/ (1hree crores only) 8
CpLlonally ConverLlble uebenLures of 100 (uS$203) each Lo
Margosa ConsulLancy vL LLd ln conslderaLlon of Lhe
exLlngulshmenL of Lhe amounL due Lo Margosa ConsulLancy
vL LLd from Lhe Company
1o lssue and alloL up Lo 30000000/ (1hree Crores only) 8
CpLlonally ConverLlble uebenLures of 100 (uS$203) each Lo
8edecL ConsulLancy vL LLd ln conslderaLlon of Lhe
exLlngulshmenL of Lhe amounL due Lo 8edecL ConsulLancy
vL LLd from Lhe Company32
8a|ance sheet






rof|t and |oss accounts