Vijay Mallya’s Kingfisher Airlines is seemingly stuck in a quagmire of not-so-good times. First there was the issue of losing over 1,000 crore in 2010-11 and the revelation that they owed debts to the tune of over 7,050 crore. To try and reduce that debt they shut down counters all over the country, cut down on some flights and gave a lot of people the pink slip (forget about the fact that quite a few of them just resigned en masse). And it didn’t really help, considering they still registered a loss of 444 crore in the third quarter of this fiscal.
Now the IT department has frozen all of Kingfisher’s bank accounts over non-payment of tax dues, prompting talk of shutting down the airline and putting the whole venture out of its misery. Mallya has vehemently denied that a shut-down is even being considered. “Closing down is not an option. It will not happen. The government does not want it to happen. It is not in national interest”, he said in a response to queries about the latest source of sorrow for the airline.
It would seem that seeking a bailout would be next on the list of activities to consider if your airline lies in financial hell, but Mallya has refused that option as well, claiming that all talk of bailouts was fueled by the media. On his twitter account he remarked “Sensational headlines more speculative than fact based.Self styled expert commentators who are unqualified. Where is media taking us ???“.
There’s a quote commonly attributed to Mallya that seems appropriate here: “Alcohol is not the answer to all questions. But if you don’t get the answer it helps you forget the questions”.