Corporate Governance Failure of Five-Star Accredited Kingfisher Airlines
Published: 2017
Author(s) Name: J P Sharma and Ruchi Goyal |
Author(s) Affiliation: Prof. of Corporate Governance and Law Director, Institute of Mgt. Studies, Ghaziabad, U.P.
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Abstract
With the spree in the reported cases of mis-governance leading to erosion of stakeholders wealth
and splurge in governance deficit, this paper seeks to highlight the problems that plagued fivestar
accredited Kingfisher Airlines and to critically evaluate its governance strategies leading to
its demise. The paper details the probe by investigating agencies against the airline and desired
policy actions taken so that such situation is not repeated in the country again. Using extensive
literature-based information from various secondary sources, a case study approach has been adopted
in this paper and the same has been critically evaluated using stakeholders’ theory. The study
supports that apart from external threat and lack of governance, laxity on the part of the management
board led to the collapse of the carrier. The outcome of this paper provides connotations for the
academicians, practitioners and companies engaged in aviation sector and might help them avoid
such failures in future thereby creating sustainable business that work in the long-run interests
of all stakeholders of the company.
Keywords: Board of Directors, Governance, Stakeholders, Sustainable
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