CASE OF KINGFISHER AIRLINES

The case of kingfisher airlines…

·      Vijay Vital Mallya  was born in a very big businessman’s family of Mr. Vital Mallya in 1955. He came into his father’s business at the age of 28 years and the name of the company was UB Group with very big dreams. He always looked for the bigger opportunities to expand his father’s business, but now he has been setteled in united kingdom (UK) because he has done very big fraud and Indian government is trying to extract him.

·      In 2005, vijay mallya started his kingfisher airlines ,before coming to market the flight’s fares were so expensive but he lower down the fares for the Indian consumers and in 2007 he acquires an company called Air deccan.

In the initial stages the kingfisher airlines was doing a great job for Indian consumers but after some time there was a  increase in price of oil which increases the flight’s fares and then people avoids travelling through airways and then he started taking money from banks. Many banks try to help him in  the starting phase of his business

·       In 2014   International   Air Transport Association asks travel agents to immediately stop booking tickets  on Kingfisher’s behalf for failure to   settle dues since February.  Further trouble, as employees protest delays in salary payment.  Kingfisher announces reduction of its international operations. 

·      Revenue department of India threatens to take Kingfisher Airlines to court over alleged tax evasion, claiming the company has not deposited taxes it collected from travelers. Lenders give two weeks to come up with a plan to improve operations. The airline had a total outstanding debt of around Rs.7,500 crore (US$1 billion)to a consortium of 17 banks led by SBI (State bank of india)

                        

·         But after that he incurred so many losses in the year 2014 the reports shows that there was a loss of Rs. 822.42 crore and the United bank of India declares vijay  mallya and three directors of kingfisher airlines as defaulters because they fail to repay the loan and then in march 2016 vijay mallya leaves india.

·      The Indian government is trying to find vijay mallya and now the case has been filed against vijay mallya in uk supereme court and very soon he will be punished and he will be behind the bars .

 Refrences 

www.economictimes.com