Birth of Kingfisher

The Confident Vijay Mallya led him into the airlines industry unarmed and unaware of the risks and mitigation plans. Coming from a liquor business that had a turnover profit of 20-30% he expected overnight profits in a business where 3% profit was an accomplishment. This underestimation will be a hard learnt lesson.

Kingfisher’s bad spree continued into the years following the merger with Deccan Airlines. Analysts called the merger to be the first mistake of Mallya. The liabilities increased and so did the losses. The

idea of launching Kingfisher Red was a complete flop. The their patience in Kingfisher, they had not receive a dime of shareholders of Kingfisher had started losing dividends from the company.

It was in 2011, that Kingfisher first admitted they were having financial issues, soon it was realized that the company had not been able to pay its dues to the oil companies. Kingfisher maintained that it was because of the rise in the general prices of fuel and the company would stabilize once the oil prices stabilized at a range.

The Jan of 2011 brought the bad news from SBI, the consortium leader had declared that Kingfisher had become an NPA. Kingfisher owed SBI an amount of INR 14.5 Billion. What followed was a series of job cuts and hunger strikes by its employees.

Authorities at different banks and investors said that Mallya and his managers would always have an air of poised arrogance in them. They would look confident and confidently accept that they had no money

and we’re looking for investors. The big bosses had confidence in the passing of the FDI act and that they would be able to rope in a few names from abroad.