So today, Kingfisher airlines which captivated us with the slogan flying at good times, is no more. The DGCA has cancelled their flying registration due to its inability to provide safe and sustainable service.
Kingfisher was given an approval to start commercial airline service in 2003, but has now accumulated a loss of over Rs 8000 Crores and debt of Rs 7500 crores. Withdrawal of its 66 aircrafts will create a supply constraint in the aviation industry which will further skew the skyrocketing air travel cost.
The airlines pathetic situation is a result of the profligacy shown by Mr Vijay Mallya . He emulating his international counterpart, Mr Richard Branson of Virgin Atlantic in proclaiming style and luxury and expecting continuous cash flows he started accumulating aircrafts. The burgeoning air fuel prices and ground costs ate into its pockets creating a situation where there was no scope for even paying its employees. Sad to note that the wife of an employee recently committed suicide. The Bankers twisted them to give commitments on loan replenishments and the government did not yield for a stimulus package. In the end the service goes in history.
Who is at loss here? It is the financiers and the general public, but not the entrepreneur. As like any Indian entrepreneur Vijay Mallya took loans and started the service and finally has defaulted. It may be noted that he already runs a successful commercial enterprise through his brewing business which could have been used for the revival of the service.
This case gives the right message to the industry as a whole that entrepreneurship which only relay on external finance but without a dedication and passion for excellence will always fall flat .
So the fair skinned airhostesses with miniskirt brushing aside you in cabin, the red colour pouch with chocolates and earphones are now a thing of the past.
Indeed Kingfisher is grounded at bad times