Tag Archives: Vijay Mallya

Vijay Mallya – Dasara 2012′s Ravan of bad times

24 Oct

Vijay Mallya - Dasara 2012's Ravan of bad times “Stressed, wife of Kingfisher Airlines employee allegedly commits suicide”

“My husband works with Kingfisher and they have not paid him salary for the last six months. We are in acute financial crisis and I am committing suicide,” the note said.

This happened on october 4, 2012 and till date Dr Vijay Mallya hasn’t spoken over the crisis and the tough times his employees are going through. Is Mallya group out of money, how is this possible here are some of his eye catching assets:

Bought Bangalore IPL team: Rs 464 crores

Bought Formula team for Rs 610 crores

Owns 312-foot yacht Indian Empress worth Rs. 450 crore

Owns a fleet of vintage cars and a stud farm with more than 200 horses.

When companies like Toyota, Honda, BMW have opted out of F1 race due to high cost, Mr Mallya is still running the show with all pride, on an average the yearly expense of running the F1 comes to around $100 million/year.

sounds like Mallya has a lot to spend on his luxury and hobbies but noting for the employees of Kingfisher airlines in India. Now when the KF airlines is in trouble Mallya is asking Indian Government to provide a bailout. Why should tax payer’s money be used to revive his airlines?

The Kingfisher airlines have employees in different parts of the world, but the overseas employees have been treated differently, they have been paid their full dues on time. So why this discrimination with Indian employees? Off course because the Indian companies think they can buy the law in India and that’s what is happening in the case of Kingfisher, here are reasons how the corrupt Indian system has supported Vijay Mally’s airlines so long:

- On November12, 2011 Prime ministe of India Manmohan singh reacted to the Kingfisher crisis saying “we have to find ways to get Kingfisher out of trouble”. Why Mr Prime Minister wants to bail out a private airline?

- In July 2012 the Director-General of Civil Aviation (DGCA) Bharat Bhushan lost his job within hours after he gave his statement on Kingfisher not submitted its recovery plan “This is completely unacceptable. We are very concerned and in a day or two we will come to a decision on Kingfisher”

- The government in December 2011 defended state-run lenders’ exposure to debt-ridden Kingfisher Airlines and said that loans worth Rs 6,419 crore to the debt-ridden air carrier were not over-valued.The PSU(Public Sector Undertaking) Banks as per the “Master Debt Recast Arrangement (MRDA), a portion of the debt was carved out and issued as cumulative redeemable preference shares(CRPS), which was subsequently converted into equity shares of Kingfisher Airlines at a price of Rs 64.48 per share on March 31, 2011, as against the prevailing market price of Rs 39.90 per share. Currently the market price of KF is around Rs 10.4 per share. What a great loss to Banks? How can the PSU Banks be do dumb?

- Civil Aviation Minister, Ajit Singh said “You can’t close down a company just because they are making losses or banks are not giving them money”

- Corporate Affairs Minister, M. Veerappa Moily, had said that the airline has to be saved and that the government would go up to the last point.

Now, finally, the DGCA – like cops in a Hindi movie, who come to the scene only after the hero has bashed up the villains – came into its own.

On Saturday, October 20, 2012 the DGCA suspended the Kingfisher flying licence.

Sounds like  it is all over for Kingfisher?

The CEO of Kingfisher, Sanjay Aggarwal, has gone on record to claim that “this is not a cancellation, but a temporary suspension.”