Vijay Mallya needs to learn from SpiceJet and Paramount?
Lets consider the actions two small airlines Paramount and SpiceJet to see if there are any moral, ethical and management lessons that Vijay Mallya can learn from them.
Paramount, a business class airline has established its positioning and slowly but steadily building its business. It did not go about announcing flamboyant business plans or acquiring airlines. It is surviving. What did Vijay Mallya do? Announced plans to buy a large number of airplanes at the Paris Show even though he was a newcomer to the airline business. He bought a low cost airline which he had no business to buy. First, I don’t think he could afford it. Second, it did not fit with the positioning of Kingfisher. This is obvious from the various branding exercises that he went through Air Deccan. No wonder he is trouble.
SpiceJet needed funds because of the difficult maket situation. It sold its equity to an investor and raised funds, even though the valuations were low. Now Vijay Mallya wants to have hhis cake and eat it too. He does not want to sell his equitybecause the valuations are low. Now if SpiceJet could do it, so can Vijay Mallya. But why does he not want to sell his equity? Simple. He is greedy or he has bitten more than he can chew or shall we say that he has more beer than what he can hold.
Avinash Narula
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Vijay Mallya’s private jet an Airbus A319 which is paid for by Kingfisher Airlines. Despite the fact that he already has a Boeing 727 and a Gulf Stream GIIB ( an aircraft for which a certain late Mr. Menon paid for). This man has too many excesses and there is no way that Kingfisher Airlines will ever make any money. With all the special priveleges he gets through Praful Patel, the tax payer is in reality paying for Vijay Mallya’s excesses.
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