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.

Vijay Mallya recently said that “he doesn’t do cheap deals” while refering to selling stake in UB Spirits. I think he lies because he is certainly doing cheap deals with oil companies. He doesn’t mind doing cheap deals when its in his favour.

Also, for a guy who is linked with rumors of buying an island for Rs. 800 crores, doesn’t do justice to his image when he can’t pay just Rs. 158 crores inspite of the fact that his cash flows have improved tremendously because of low fuel cost.

If you ask me, government should go back on its committment of credit extension to airlines, especially Kingfisher.

Avinash Narula

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