Management Accounting 1 Kingfisher Airline Revival Plan
Group 8

CONTENTS 1) Introduction | 3-4 | 2) Decision Analysis * Buy or lease decision * Aircraft configuration decision * Pricing decision | 4-7 | 3) Cost AnalysisVariable cost * Commission expense * Fuel cost * Employee costFixed cost * Aircraft leasing cost and depreciation * Landing and navigation cost * Interest expense | 7-9 | 4) Other Recommendation * Transform into low fixed cost structure * Lowering the currency related cost * Practice divisional profitability analysis * Join alliance * Practice grid routing system | 9-12 | 5) Reference | 13-15 | 6) Appendix * Estimation used by the relevant cost analysis * Estimation used by the sales mix analysis * Forecast Operation | 16-17 |

1. Introduction
We are going to investigate Kingfisher Airlines (KFA) for in-depth analysis, which would integrate management accounting topics with cost behavior, sales mix, buy or lease decision and pricing decision making.
Kingfisher Airlines was an Indian full-service airline established in 2003{1}. It started commercial operations, involving domestic and international flights, on 9 May 2005. On one hand, it was nominated by Skytrax as a world 5-Star Airline for the 2010 ranking period because of its excellent product and service quality{2}. On the other hand, Kingfisher Airlines had not made profit since starting operations in 2005, so it tried to reduce cost{3}. For example, from 10 April 2012, Kingfisher Airlines had suspended all international journeys. A partial lock-out happened on 1 October in the same year because of the delay payment of salaries, which eventually led to labour strike. On 20 October 2012, Directorate General of Civil Aviation (DGCA) prohibited Kingfisher Airlines from flying on the grounds of potential