Threats of kingfisher airlines

Answer 1

Threats would be other airlines such as Indian Airlines and Air India as they are funded by the government. As they are funded by the government a significant loss would not cause the carrier to go bankrupt and cut costs whereas Kingfisher Airlines would have to cut costs as it is privately owned and the motive for the owners is to make a profit. Another threat would be high costs as economic recession as less people want to spend money as now less money is being earned. A decrease in demand for airlines tickets would cause Kingfisher airlines to lose business first as it is considered a more premium airlines thus being the first airlines to lose customers. Finally inflation would be a threat too as high inflation would costs to change often and would be higher then foreign firms that may come in to take over the market