Kingfisher Airlines digging it’s own grave…. Mr Mallya, when you are in a Hole stop digging!

Mallya deserves the nasty tweets that are doing the rounds

  • Naresh Goyal of Jet and Mallya of Kingfisher Airlines should merge… their new Airline would be called GOL-MALL AIRLINES !….. GOyaL combines with MALLya
  • What’s the Difference between Vijay Mallya and Richard Branson ?… Branson’s Airline is Virgin while Mallya’s is F____d !
  • Mallya was to fly to New Delhi to explain to the Prime Minister about KFA woes but his flight got cancelled !

Kingfisher Airlines Bank Accounts have been frozen and All across India KFA Flights have been cancelled leaving passengers furiously stranded

Have been watching the heated arguments on this on  Arnab Goswami’s Times Now Debate on Why should the Government bail out Kingfisher…. and was getting increasingly furious at ad man and man around town, Suhel Seth and head of a leading Travel Agency, Ashwini Kacker aggressive monologues defending Mallya… these filibustering ‘I know it all’ egotists, who think only their View is the Only View, kept arguing, actually yelling aggressively…. Kacker used the term ‘bloody’ more than once when he argued that Mallya had pledged his ‘bloody’assets and even his ‘bloody’ life !…. I seriously doubt he has pledged all he has… Remember my tagline for this Blog… Companies may go sick but Promoters rarely do !… and if I recall correctly, a Fixed Deposit Ad by his United Group Company showed him as  Director with a USA Address… Suhel Seth said that the Bank will have to be patient as thousands of crs are involved and if the Airline closes down, they stand to lose all they have lend… it is different if they have lent just Rs 100… they will chase the borrower for life for this !… he sounded and makes it out as if it was the banks fault that they lend in the first place  to KFA !… you cannot blame Mallya for this ! says Seth

Arnab, get me on Times Now against condescending Suhel Seth on this issue…when he is championing conscience and morality causes I’m on his wavelength but when he defends the indefensible like this,he is just being turgid !

… And Kacker…Even if Mallya has pledged all, So what !… KFA is a private business and like any business that does not make money, he would be wise to exit, even at a loss rather than bleed all stakeholders to death… simply because I hold the view that he does not have the ability to turn around KFA… I have blogged several times on KFA woes and the dangerous precedent of State Bank of India lending heavily on the Brand Name… I have no personal axe to grind … am a King Club Member too…. and would love for KFA to revive… but for this miracle to happen,Mallya needs to stop digging first and even have the humilty to apologise for the state of affairs… instead his stooges, like Suhel Seth and Ashwini Kacker, simply pass the buck to the Aviation Industry Woes that have engulfed most Airlines…. Wanna bet ! even if he gets funding,Mallya will yet run his Airline to Ground yet again !… he needs to leave his ego aside and exit the sector

Mallya himself spoke to Arnab on the telephone earlier today on Times Now and said he had no idea where to go as KFA Bank Accounts have been suddenly frozen overnight !… that is why he cannot pay salaries! Hogwash! ‘Bloody’ False….Employees have not been paid for three months now, Taxes have not been paid,Aviation Turbine Fuel has not been paid for as also Lease Rentals on the Aircraft… the fact is that Mallya simply has failed to run KFA properly…he had infact no idea of how to run an airline in the first place… blaming an appreciating dollar and higher Oil Prices or the government for high taxes, delaying FDI in Aviation, making it mandatory to run unprofitable routes etc are simply excuses… DGCA and the Lending Banks has been soft on him for too long

Mallya has got it all wrong… floating more in the air than being rooted to ground realities,when actually his Planes should be doing this !…. he acquired Air Deccan from Captain Gopinath… was a big mistake… he ignored the Low Cost Carrier Model and refurbished his planes luxuriously… for the past few years Kingfisher Planes were often lying at Airports all over India instead of flying as the Airline had no money for  spare parts and Pilot Salaries… Lease Rentals, being high, were therefore not being covered by Revenues…. all this was revealed by Capt Ranganathan

KFA needs to simply cease operations till it gets it’s own house in order…. you can’t have a situation where you want Government to subsidize your Losses while all gains would be Private !…. The Private Airlines Business Model needs to be tweeked to cover the pulls and pressures in the Industry… KFA simply was too complacent to do this !… It’s paying the Price and so are all it’s stakeholders!… Mallya and KFA have been unable to get Funds in the past year…. A US $ 300 m GDR Plan never took off… Private Equity Players are not flying KFA… Banks are reluctant to lend any further…in fact they want KFA to reverse guarantee commission of over Rs 50 crs paid to United Group and Mr Mallya personally… it’s your own business and you cannot make monies like this on your own business and look on this as a private income stream !.. is the Banks Cry

Mallya would be more successful and better off in deciding whether Dravid should open the Royal Challengers IPL Innings! rather than run the Airline he started !

Only Aggressive Risk Takers would hazard a long in KFA at Rs 27…. Interestingly there seem to be quite a few of these as Daily Volumes cross a Million Shares on BSE….. 52 Week High and Low has been Rs 49 and Rs 18

I wonder if Mallya’s friends Suhel Seth and Ashwin Kacker are long or short in KFA on the bourses!

3 thoughts on “Kingfisher Airlines digging it’s own grave…. Mr Mallya, when you are in a Hole stop digging!

  1. Why should banks pay for luxuries of the owner?
    Has any independent body checked the financials of Kingfisher. How the money is being spent and where it is routed? Where and all the owner is spending the money from kingfisher? Is there any proprietary in the spending of the owner from this company? Spending here not only means cash spending, but spending in other forms…. Are all airlines run with commercial interest or if the airlines are run for “ Other Buiness and political reasons” without earning any revenue in turn turning this company into a loss making unit.

    Currently, it appears that he is firing standing behind the shoulder of poor employees by not paying them salaries and creating a situation to arm twist the Banks and the Government?

    Government banks have already converted their debt to equity at Rs. 64 per share ( current market prices is less than Rs. 30) last year. How much more money should the country pour into this bottomless pit. A proprietary audit should be ordered by the Government before committing any further tax payers money

    Indigo , spicejet, Jet airways are managing their business. Indian Airlines is a typical public sector story- it is being used by ministers and faimly like their own car to fly wherever they want , the contracts they entered with some service providers, non-profitable routes they are compelled to fly because of national carrier.. Reasons are many.

    If your keep feeding this KF parasite now, tomorrow other airlines who are managing the show till now will play the same drama for bailout and the country will end up funding this sector from our taxes.

    The fundamental issue is, somebody needs to urgently look into the financials of this company to see where is the money seeping ?

    After all, you cannot beg saying I don’t have money to fed my family ( employees) , on the other hand you spend your holiday on some island, buy a cricket team, and what not.

Leave a Reply

Your email address will not be published. Required fields are marked *