Where is Kingfisher Airline headed?

Its been sometime that I have blogged because of some personal reasons. Now I am back.

If you guys remember, I had predicted bad times for Kingfisher Airlines and Vijay Mallaya but what Vijay is doing has really amazed me. One cannot figure out his strategy. Neither is he bringing in the desired funds nor selling. Everyday the situation is going from bad to worse. It seems as if he is deliberately taking Kingfisher towards bankruptcy.

I am also surprised at the actions of the banks. By this time, the promoter of any other company would have been forced out by the lenders but I think the banks are waiting for a miracle to happen. Huge amount of public funds are involved.

Even the government is not taking any serious action. There are serious safety issues.

I am surprised that Kingfisher is even raising any revenues. If I had to fly, I would not go anywhere near Kingfisher.

I think its time Vijay Mallaya gets out of Kingfisher before the value of the company become zero or his business empire gets into serious trouble because of Kingfisher’s losses. I hope better sense prevails on Vijay Mallaya.

There are too many lessons to be learnt from Kingfisher but the most important is being global or the largest or the biggest is not important. What is important is a sustainable profitable business.

Avinash Narula

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