Improve Cash flow by being economical in spending and bringing back the travelling public
King Fisher can come back to business provided it regains the confidence of the travelling public particularly middle class. The KFA has to be very very economical in all its dealings to start with. By offering round trip tickets and group booknig for family and other groups with very good discounts, it has to ensure that the flights are filled up without having any vacant seat.2)It has to start with flights where the potential to fillup all seats are Optimum. It has to allow excess baggage at some concessions. If possible it can canvass business for one or two years from very regular travellers for a lumsum initial payment for 10 or 15 trips and improve its cash flows.3) Make some arrangements through Mr Mallyas contacts and influence to clear the wage arrears of its employees and earn their goodwill and support to run the business. They themselves can canvass passengers through their special efforts and small incentives. 4) Give some special incentives to travel agents to canvass booking and see that the flights are full.5) Convince bankers to defer insistence on immediate reapyment of loans and see that as and when cash flow improves their dues are cleared in easy instalments.6) Negotiate with tax department and suppliers of fuels to receive payments on easy terms and instalments depending on the improved cash flow.7) Avoid heavy payments beyond the capacity to Executives till such time the company reaches break even point.8) Raise interest free loans from well wishers of the Company against issue of tickets towards repayment of loans.The KFA enjoys very good patronage from many bigwigs of the society and it should not be difficult to raise a few crores.8) Let Mr Mallya resist to exhibit his flamboyancy using the Company's funds at any cost.He has to project the image of a business professional and show his business acumen.He can easily target corporate clients for their travelling needs through King Fisher.9) The company can take a lot of small steps to make a come back.If other airlines can run profitably why not KFA?
( This comment appeared in Business Standard dt13/10/12 in response to an Article on KFA and Mr Mallya)
King Fisher can come back to business provided it regains the confidence of the travelling public particularly middle class. The KFA has to be very very economical in all its dealings to start with. By offering round trip tickets and group booknig for family and other groups with very good discounts, it has to ensure that the flights are filled up without having any vacant seat.2)It has to start with flights where the potential to fillup all seats are Optimum. It has to allow excess baggage at some concessions. If possible it can canvass business for one or two years from very regular travellers for a lumsum initial payment for 10 or 15 trips and improve its cash flows.3) Make some arrangements through Mr Mallyas contacts and influence to clear the wage arrears of its employees and earn their goodwill and support to run the business. They themselves can canvass passengers through their special efforts and small incentives. 4) Give some special incentives to travel agents to canvass booking and see that the flights are full.5) Convince bankers to defer insistence on immediate reapyment of loans and see that as and when cash flow improves their dues are cleared in easy instalments.6) Negotiate with tax department and suppliers of fuels to receive payments on easy terms and instalments depending on the improved cash flow.7) Avoid heavy payments beyond the capacity to Executives till such time the company reaches break even point.8) Raise interest free loans from well wishers of the Company against issue of tickets towards repayment of loans.The KFA enjoys very good patronage from many bigwigs of the society and it should not be difficult to raise a few crores.8) Let Mr Mallya resist to exhibit his flamboyancy using the Company's funds at any cost.He has to project the image of a business professional and show his business acumen.He can easily target corporate clients for their travelling needs through King Fisher.9) The company can take a lot of small steps to make a come back.If other airlines can run profitably why not KFA?
( This comment appeared in Business Standard dt13/10/12 in response to an Article on KFA and Mr Mallya)
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