Kingfisher
Just like Vijay Mallya, I also want to serve the country.
When Vir Sanghvi on his show the Tycoon had asked Vijay Mallya as to why he joined politics, Vijay Mallya responded by saying he wanted to serve his country. It seems that Vijay Mallya’s Kingfisher Airlines owes oil PSU HPCL Rs. 602 crores towards supply of ATF fuel. The government has asked HPCL to convene a special board meeting to invoke Kingfisher’s Rs. 250 crore guarantee. I am not sure why Vijay Mallya is enjoying so much credit. The article in Economic Times dated 26/3/2010 also does not mention anything about payment of interest. You guys are aware that to put things in perspective, I always calculate the daily interest that Vijay Mallya is saving. In this case it works out to Rs. 19.8 lakhs a day at 12% interest.
This is how Vijay Mallaya wants to serve the country
I was watching Vijay Mallya being interviewed by Vir Sanghvi on his show, the Tycoon. Vir Sanghvi asked Vijay Mallya as to why did he join politics. Pat came the reply, “I want to serve my country.”
Who asked you to fly Vijay Mallaya?
Vijay Mallya has stated, “Sometimes it costs more to fly than not to fly.” Well, I think we never asked him to fly. He entered the airline business of his own free will and he can get out of it at his own free will. If he finds it more economical NOT to fly, he can stop flying and make as much as he wants. However, he can’t form a cartel and blackmail the people of the country. He has been given a licence by the government to run an airline and the same can or should be taken away if Vijay Mallya takes illegal action. He has done this before when he signed an agreement with Jet. Mallya has taken too many liberties just because he knows people in the government.
Now Airlines want to be in travel business
It has been reported in Economic Times that Kingfisher, SpiceJet and Indigo want to launch a travel portal in order to save on commission. Somehow, it is difficult for me to understand the obsession of airlines to save on travel agent’s commission as if that is the primary reason for the troubles of airlines. It seems that all the airlines think that they will be all become profitable just by eliminating the travel agent’s and travel portal’s commission.
Vijay Mallaya should learn from Paramount
I had earlier written that Vijay Mallaya should learn from Paramount how to run an airline. Today, when Kingfisher is in trouble and Vijay Mallaya owes huge amounts to oil and hotel companies, Paramount Airlines is hiring 80 foreign pilots and 200 local pilots in the current year. Paramount needs pilots because it is adding 10 aircrafts to its existing fleet of six planes and increasing the number of flights from 1800 to 2500 per month by October 2009. It is also expanding slowly and steadily. Last month it launched flights in the eastern region.
Why is the government financing Kingfisher Airline?
Indian Oil Corporation (IOC) has invoked Rs. 50 crore guarantee of Kingfisher after a cheque issued by Kingfisher bounced. It was further reported that Kingfisher owes nearly Rs. 785 crores to the oil companies. I simply do not understand why Vijay Mallaya is getting such heavy credit from the government. The daily interest on Rs. 785 crores at just 12% works out to be Rs. 25 lakhs. Vijay Mallaya is saving this amount. He needs to sell his shares in the company ot sell any of his assets and pay the oil companies. When he owes so much of money, why did he go buy Gandhiji’s articles for Rs. 9 crores?
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?
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.
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.
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