Kingfisher Airlines' license suspended by DGCA

[IndianMascot]

Time to switch to Hayward 5000

 

[Technoglitch]

Kingfisher crisis: Inflated egos lead to business disasters

The airline industry is a leveraged game where assets are leased and shareholders and lenders understand the risk of the business. If an airline goes bankrupt, shareholders write off equity and lenders write off assets. The earlier the bankruptcy the better, as losses are contained. Everyone involved goes home with losses but with a good learning as well.

. Vijay Mallya, the flamboyant promoter of the airlines, felt that none of his ventures could fail. He pledged his own assets and gave personal guarantees to the lenders to prolong the inevitable. The end result is that he has been forced to consider selling off the cash cow of the group United Spirits to pay back part of the Rs 8,000 crore debt of Kingfisher Airlines.

The government felt that a prominent airline couldn’t file for bankruptcy as it will dent the image (what image?) of the country. It let things go out of control, which culminated in the airline losing its licence.

The Kingfisher Airline and Air India fiasco are just examples of egos affecting sound business sense. India is rife with ego at work. Promoters cannot accept analysts who place a sell report on their stocks. Rating agencies that are giving poor ratings are sued in courts. Shares are pledged, financial statements doctored and politicians and bureaucrats bribed for the feeling that my company cannot go wrong.
The market does not have an ego. It embraces companies that have potential to deliver the returns and it kills the same companies when they do not deliver. Promoters who are placed on pedestals see their status falling with a thud leading to a huge deflation of egos. Promoters cannot accept this deflation and hence prolong their misery by trying to keep up to their inflated egos.
Message to investors is clear. Avoid investments in companies where managements let ego affect performance and this includes government-owned companies as well.

 

[Technoglitch]

Mallya, who has been away from public glare following the suspension of his Kingfisher airlines, will attend the Oct 26-28 event at BIC.

"I remember how proud I felt last year to see our cars racing in India in the colours of the Indian flag. It was a moment I had dreamed about and a great sporting achievement for our country," Mallya said in a statement Tuesday.

this guy is speaking abt the F1 as if KFA doesn't exists.
Is there any way KFA employees can slap case against mallaya?

 

[IndianMascot]

As Civil & Aviation Minister has already announced not to interfere in KFA, I hardly believe that anything legally can be done. If it would be possible , employees would have certainly did it.

They are demanding 4 months Salary asap but KFA is promising to give 3 months Salary during Diwali.

 

[Technoglitch]

against Mallya itself and not KFA

 

[IndianMascot]

But Mallya can't be held responsible. All staff were employee of an organization which is KFA. Anyways what happened to below case ??

http://timesofindia.indiatimes.com/...llya/articleshow/16781715.cms?intenttarget=no

 

[Technoglitch]

Kingfisher Airlines may lose airport slots
State-run Airports Authority of India (AAI) has warnedKingfisher Airlines Ltd, grounded since October, that it will start taking away space allotted to the troubled airline at airports across the country if it fails to submit a “functional” plan by mid-January.
The develop

ment comes as lenders are scheduled to meet representatives of Kingfisher Airlines’ management on Friday in Bangalore and rival Jet Airways (India) Ltd said it was in talks withEtihad Airways for a possible investment. If a deal takes place, it would close the door on the prospects of the United Arab Emirates (UAE) airline picking up a stake in Kingfisher. An overseas investment would help bail Kingfisher Airlines out of its current predicament.