Kingfisher Airlines is in trouble

Kingfisher Airlines has No Sympathisers

Kingfisher in troubled waters

Vijay Mallya’s Kingfisher Airlines is in deep troubles. The airline has lost the confidence of its bankers, customers, passengers, vendors, airport authorities, oil companies and the public. Oil companies are refusing to supply fuel to the airlines. Airport authorities are refusing permission to the airlines. Bankers are refusing to extend any credit to the beleaguered airlines. Vijay Mallya is helpless. He is a popular businessman in India. He had endeared himself with the general public by associating himself with various sports and social activities. He owns the Royal Challengers Bangalore cricket team in the IPL twenty-twenty cricket league. Recently he was associated with Formula 1 racing in Noida, New Delhi in India.

Several crores of rupees spent in advertisement

Mallya also owns the United Spirits, the distillery company which manufactures various alcoholic drinks like Whiskey, Brandy, Rum, Whine, Gin and Beer. Mallya had spent a lot to groom Kingfisher Airlines. During the World Cup Cricket tournament in February – March this year, Mallya’s advertisement expenses would have been several crores of rupees. When the third umpire decision was awaited by the fans eagerly, the screen flashed Kingfisher Airlines’ image. Mallya was boastful about the airline. Everybody looked at Mallya with awe.

Begging with bowl for money

Now everything is gone for Mallya. He and his Kingfisher Airlines are seen as beggars. Mallya is listing out his entire assets one after other to pledge or mortgage, in order to retrieve his lost prestige. Even if Mallya sells all his assets including the Rolex wrist watch on his wrists, how long he can prop up the lame duck airlines? Mallya should have the courage to admit the truth and wind up the airlines. He should concentrate purely on his distillery business.

Beg, borrow or steal

But can Mallya do that? It is impossible to even imagine that he will do so. Mallya is a person who lives on his (false) prestige. He wants everybody to praise him. He wants everybody to speak highly about the companies he runs including Kingfisher Airlines. He will simply do anything to lift the sagging image of himself and his airlines company. Therefore he will not hesitate to beg, borrow or steel to lift his company once again.

Kingfisher is dead

But this time all indications are against him. General public is fed up of him. Passengers curse him for his unscheduled cancellation of flights. Banks are against lending to his company. Even the bank trade unions are against bailing his airlines out. Government is also not showing any inclination to assist him. All his popularity seems to be of no use to him in this hour of crisis. All available indications point out that his Kingfisher Airlines is bound to sink and cannot sail smooth.

Indian Bank’s Gopalakrishnan showed the way

This is a lesson to corporate leaders. If you are boastful and spend beyond your means, you will have to fall by your own weight. The former Indian Bank CMD Gopalakrishnan had demonstrated this theory two decades back. He attended four functions every day without doing bank work. He was carried away by the popularity wave because of his images in the TV channels. When he lost his CMD post and had to go to jail, the world laughed at him and did not pity him. Whether Mallya will meet the same fate or the climax is a little different this time remains to be seen.