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.

Now I am against government interference in businesses but when businesses take government help and save themselves a lot of money then they should also reciprocate with a positive attitude. What I am against is that both Jet and Kingfisher have made a fool of the government at the expense of taxpayer’s money. I believe Vijay Mallya has saved nearly Rs. 90 crores of interest. Since the times are good with low oil prices, Vijay Mallya should return the interest saved by him.

Avinash

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Hi guys!

I am back with Vijay Mallya. You might be thinking I am obsessed with Vijay Mallya. But I am not. What I am pissed about is how he is manipulating the government with the help of his minister freind Shri Praful Patel to get his way. I feel that he should be treated equal with all of us. How many of us can go to the government and ask for delayed payment schedule of our taxes. None of us. But Mallya can.

You know I can’t even get a response from government department to my letters. From one government department, I received a response after 18 months. Here we have Vijay Mallya not only receiving response but getting what he wanted within weeks. I must say he certainly has freinds in the government.

But did he need money? Maybe NO. He has announced commencement of flights to 9 International destinations which all requires money. He is rumoured to be buying an island for Rs. 800 crores.

Or, Maybe YES. He seems to have pledged his shares in United Spirits valued at Rs. 2500 crores for loans. Maybe he couldn’t take more loans and the government bailed him out.

Now I also believe that the government is again helping him out with the FDI issue. He is the guy who again raised the issue because he was supposedly in financial trouble and was trying to raise money by selling stake to foreign airlines. And now it seems that the government may help him out by allowing FDI in airlines.

I think this is a joke. We might as well make him the Minister and shift the ministry to Bangalore.

By the way, I am not against FDI in airlines. What I am against is government policy being changed for the benefit of a single rich industrialist.

Avinash Narula

Reply

The title is appropriate, he is a man who will do his best to renege on a financial commitment. The reason? Simple he has always been a big spender and although he claims it is his own money, that is not true. It is Other Peoples Money. His personal expenses were 35 crores a year more than 15 years ago. Its now about 400 crores. The growing Indian market for alcohol helped his booze business grow and the strength of his old inherited brands kept him going. Did you know that UB was bigger than reliance more than 20 years ago? Instead of making it bigger and more profitable for his share holders he just spent it all on wasteful acquisitions including personal homes, planes, cars, yatchs and other toys. The man travelled on his used boeing 727 36 times in a year between Bangalore and SFO. Thats $ 150,000 for a single tank of gas on that old gas guzzling plane! Now King Fisher airlines foots his personal fuel bills and a new Airbus 319 business Jet ! No chance the airline will ever make profit in the foreseeable future.

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