Thursday, February 07, 2019

UK Courts Approve Extradition of Kingfisher CEO

n the ever exciting world of Indian aviation and the people it involves there has been no greater person who has been surrounded by drama than Vijay Mallya.
He is a well-known business tycoon in India that is ex-chairman of United Spirits, the largest spirits company in India, and is currently still the chairman for United Breweries Group, a conglomerate with businesses in alcohol, aviation, real estate, and more.
Mallya used his success at United Breweries Group to create an airline in 2003 under the name of one of it’s most popular beers, Kingfisher. The airline officially began commercial operations in 2005 with a fleet of Airbus A320s and eventually started international operations in 2008 with flights connecting Banglore and London.

The airline, however, never made any money. It was a consistent money pit and poor business decisions such as acquiring the failing Air Deccan in 2007 only made matters worse with accusations that the acquisitions team failed in their due diligence.

Over the years the airline was consistently in the news for losing but still being somehow viable. Kingfisher’s bank accounts were frozen twice in 2011 by the government due to nonpayment of taxes. By 2012, the airline had accumulated losses of nearly $1 billion.

The airline later lost its operating certificate in the fourth quarter of 2012 with debts still outstanding to Indian banks, leaving many Kingfisher employees without pay for months. United Breweries is still paying off debts from the carrier as the entire fiasco of the airline’s collapse hasn’t been settled.
06/02/19 Hemal Gosai/AirlineGeeks

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