The best decision Vijay Mallya has made so far

Vijay Mallya has finally made a wise decision. He has decided to get rid of Kingfisher Red. As I have mentioned earlier, the biggest mistake that Vijay Mallya made was to buy Air Deccan. You cannot have a low cost airline and a premium airline run by the same company. Jet made the same mistake and so did Vijay Mallya. While branding, we have to give up something to get something. We cannot be everything to everybody.

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.

Our obsession – building scale

Businesses all over the world are obsessed with achieving market leadership, building scale to achieve economies of scale and last but not the least, consistently clocking high growth rate. However, the obsession of businesses with the above objectives invariably lands them in trouble. Why? Primarily because they have not only misunderstood the concepts behind these objectives but have also misunderstood how these objectives should be achieved. As such, I feel that there is a strong need to clarify what our obsessions mean so that we can avoid the pitfalls and run our businesses successfully. Today, I will discuss our obsession with building scale.

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.

A lesson for Vijay Mallaya in capitalism

Vijay Mallaya, Chairman of Kingfisher Airline and UB group made a statement in relation to the proposed strike by the airlines on 18/8/2009 made a statement “We want the government to understand what happens when private carriers don’t exist.” I think Vijay Mallaya is losing it or is drunk on the good beer that his companies produce or he seriously doesn’t understand the meaning of capitalism that I have heard him talk about on TV.

Journalists need to ask tough questions

I have repeatedlt stated on my blog that the journalists do not ask tough questions from whoever they are interviewing. It should not matter whether the business tycoon is a big shot or not. In addition, they should also analyze the situation and raise all the relevant issues. This is the only way we can keep everybody in the process honest. For instance, I have stated why no journalist except one asked Satyam bosses the question as to why they were keeping so much of money in the bank. Also, why doesn’t anybody ask Kishore Biyani as to how many formats he has announced so far and how many of those he has implemented? How about asking Kishore Biyani the source of funding for his various formats? What about asking Ratan Tata the reason behind taking such a heavy booking amount as well as the need to sell the forms for exhorbitant Rs. 300 and the levy of processing charges? I thought we were talking of people’s car whereas the the process seems like we are buying an Rolls Royce.

I have realized that I can never become as smart as Vijay Mallya

Hats off to Vijay Mallya! Today, I have finally realized why Vijay Mallya is rich and I am not? Why he is so well known and I am not? Why he is so generous and I am not? Why he is such a loyal Indian and Desh Bakht and I am not? Let me explain?

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.

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.