Airline industry

King of Good Times has become King of Sorrowful Times

Well, it seems that Vijay Mallaya is losing his title of King of Good Times fast. I read in Mint newspaper that his airline Kingfisher owes a lot of money to the hotels his crew members etc used to stay in. I believe he owes nearly Rs. 8 crores to them. It was hinted in the article that the airline was putting pressure on the hotels to give them more discounts. Isn’t this what people call as blackmailing?

Why do airlines need government intervention to tell the truth

I have been unable to understand why airlines do not like telling its prospective customers the total price inclusive of all charges as well as the break-up. Why don’t they disclose the total amount the customer has to pay? What will they gain by hiding the correct amount or the break-up details that the customer has to pay?

King of Good Times becomes King of Hard Times

I was happy that finally Vijay Mallaya was out of the news and that we could concentrate on more important issues rather than discuss about the “King of Hard Times.”

Look who’s crying again?

In my recent post I had stated that the joint action of the airlines in India to increase their fares together was prima facie illegal and unfair practice under MRTP. I was happy to read that MRTP is taking immediate action to investigate the matter. Of course, Aviation Minister Praful Patel also issued a warning but we all know what value that has considering his soft corner for his freind Vijay Mallya. I am also happy to hear that Jet has decided to wear the proverbial “pants” and reversed its decision to increase prices and disaasociate itself from the illegal act.

Eliminating travel agent’s commission a bad idea

I have earlier commented on this issue. Now most of the airlines in India have compromised on this issue with the travel agents. Singapore Airlines is under tremendous pressure to also give in. Travel agents in India have threatened to stop issuing Singapore Airlines ticket and supporting them. It seems that the boycott of travel agents is having a serious effect on the business of the airline. TAAI has stated that Singapore Airlines has reduced fares by 60%, its load factor is down to 20% and it has lost 80% of its monthly business.

It seems all the airlines are learining Mallyanomics

First there was collusion between Jet and Kingfisher. They wanted to join together and take the travellers for a ride. Now it seems that all the airlines have joined together to raise prices together. The surprising part is that the budget airlines are also joining hands with full service airlines. The price increase comes just a few days after they had cut prices.

No fuel for Kingfisher till payment made

For the first time, I think oil companies have realised what I have been saying for a long time, that is, Vijay Mallya of Kingfisher is taking everyone for a ride. Oil companies have threatened to stop fuel supply to Kingfisher Airlines from coming Wednesday if the airline does not clear its outstanding of Rs 158 crore which is overdue. While Jet has cleared its dues Kingfisher has not. I don’t think that Kingfisher should be allowed even one day grace. Oil companies should also charge Kingfisher interest for the number of days the payment is delayed. Even one day interest on Rs. 158 crores works our to nearly Rs. 8 lakhs at 18% interest.

Think before you leap to invest in Vijay Mallya companies

It seems Vijay Mallya (VM) has taken on huge debt to fulfill his expansion plans. His Rs. 6900 crore debt story is as follows:

Vijay Mallya should learn something from Amitabh Bachan

A journalist from a reputed business paper sent me an email asking how I arrived at Rs. 90 crores, the amount that Vijay Mallya saved in interest and the government lost in interest when it allowed Vijay Mallya to delay payments by six months.

Vijay Mallya cannot be trusted

In all my posts on the airlines industry, I have stated that the government should not help Vijay Mallya or listen to him because he cannot be trusted. After getting the benefit of delayed payments (savings of crores of rupees on interest) to the oil companies and oil prices coming down, he is refusing to bring down the prices. He is using delaying tactics so that he can recover huge amount of money in the meantime. I think the government should withdraw the benefits given to Kingfisher and Jet Airlines. They should be made to pay their oil bills and Airport Authority charges immediately.