Title: Critical analysis of failure of Kingfisher Airlines

Authors: Ashutosh Kolte; Arturo Capasso; Matteo Rossi

Addresses: Department of Management Sciences (PUMBA), Savitribai Phule Pune University, India ' DEMM, University of Sannio, Italy ' DEMM, University of Sannio, Italy

Abstract: Kingfisher Airlines Ltd. was started by one of the famous businessperson in India with ambitions to become an industry leader. In this paper, we have studied the fall of Kingfisher Airlines and have attempted to study financial health of UB Holdings. Many public and private sector Indian banks kept on giving loans to Kingfisher Airlines, UB Holdings Ltd. and other companies considering the reputation of its CMD as a famous businessman and politician. Private banks recovered all loans, whereas 14 public sector banks could not recover loans from him. Here, we have tried to understand the business of Kingfisher Airlines, reasons for failure and we have studied if it was possible for banks to assess creditworthiness of companies like Kingfisher Airlines, UB Holdings Ltd. We have studied if it was possible to predict bankruptcy in advance. We have also studied role of banks in extending loans and recovery attempts.

Keywords: Altman's Z score; predicting bankruptcy; Piotroski F score; India; airlines; aviation companies.

DOI: 10.1504/IJMFA.2018.095976

International Journal of Managerial and Financial Accounting, 2018 Vol.10 No.4, pp.391 - 409

Available online: 25 Oct 2018 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article