Evaluating Financial Management in Kingfisher Airlines

INTRODUCTION

Kingfisher airline is one of the seven airlines to be ranked as a five-star airline by the independent research consultancy firm. They operate more than three s daily flights to seventy one destinations, with regional and long-haul international services. In May 2009, they also carried more than a million passengers, giving it the highest market share among airlines in India. They also the sponsor of F1 racing outfit, which Vijay Malaya also owns.

They also serve sixty three domestic destinations in eight countries across Asia and Europe. Their short haul routes are mostly domestic apart from some cities in south Asia, Southeast Asia and western Asia. All short haul routes are operated on the airbus A320 family aircraft ATR 42S and ATR 72S are used mainly on domestic regional routes. They have its medium, long haul destination in East Asia, South Asia and Europe. Its first long haul destination was London, United Kingdom. This was launched in September 2008. It has plans to launch new long haul flights to cities in Africa, Asia, Europe, North America and Oceania with deliveries of new aircraft. All long haul routes are operated on the airbus 330-200.

This term financing referring to any investment, financial plan, or anything else lasting for one year or less. In this term investments and financial plans usually involve less uncertainly than long term investments and financial plan because generally speaking, markets trends are easily predictable for one year than for any longer period likewise, There plans are more easily amendable, as a result of the little time frame this term plans usually involve investing in short term securities, such as T-Bills or Commercial Paper.

This term is describing a table, tactic, precautions or anything else with a term of longer than one year; the exact number of year varies according to the usage. For example a long term financial plan outline investment and other financial goal for any time more than one fiscal year, while a long term bond has a maturity of 10 or more years. Anything long term involves more uncertainly than anything short-term because generally speaking, market trends are more easily predictable in the short-term. Thus, while planning for the long-term is necessary, one's plan must be flexible to account for its inherent uncertainly.

Equity financing is a term used for company's issuance of shares of common or preferred stock to raise money. It is also commonly done when it's per share prices are high the most money that can be raised for the smallest number of shares. Equity financing also known as "capital structure"

IMPORTANCE OF CREDIT CONTROL WITHIN A FINANCE DEPARTMENT:

A strategy employed by manufacturers and retailers to promote good credit among the creditworthy and deny it to delinquent borrowers. This will both increases sales and decrease debts, thus improving a company's cash flow credits control is an important component in the overall profitability of many firms also known as credit management.

Financial control is a critically important activity to help the business ensure that the business is meeting its objectives, financial control addresses question such as

Are assets being used efficiently?

Are the businesses assets secure?

Does management act in the best interest of shareholders and in accordance with business rules?

THE METHOD BEFORE INVESTING SPECIFIC AMOUNT OF MONEY IN FINANCIAL MANAGEMENT:

There are three keys elements to the process of financial management:-

1. Financial planning
2. Financial control and
3. Financial decision making

FINANCIAL PLANNING:

Management need to ensure that enough funding is available at the right time to meet the needs of the business. In the short term funding may be needed to invest in equipment and stocks pay employees and fund sales made on credit.

FINANCIAL CONTROL:

Financial control is a critically important activity to help the business ensure that the business is meeting its objectives financial control addresses question such as:-

Are assets being used efficiently?

Are the businesses assets secure?

Does management act in the best interest of shareholders and in accordance with business rules?

FINANCIAL DECISION MAKING:

The keys aspects of financial decision-making relate to investment, financing and dividends:-

Investments must be financed in some way. However there are always financing alternatives that can be considered. For example it is possible to raise finance from selling new shares, borrowing from banks or taking credit from suppliers.

If dividends are too high, the business may be starved of funding to reinvest in growing revenues and profit further.

CONCLUSION

After doing a study of this project representing on Kingfisher Airlines, I have come to a conclusion that Kingfisher Airlines is one of the largest and most widespread airlines of the country providing its services not only in India as well as outside India also. It has alliance with many other airlines in this sector.

Kingfisher Airlines offers world class services to the customer at a nominal rate. The airline uses the services of one of the advanced plans been operated in the world. To sum up I would like to say that Kingfisher Airlines is serving its customer in an appreciated way and going to be in the list of best services providers in coming years.

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