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Employees of the defunct <a href="http://www.businessinsider.in/searchresult.cms?query=kingfisher+airlines">Kingfisher Airlines</a> are vexed and their agony has a solid reason. Apart from not giving dues to several banks, which are now after him to pay Rs 7, 000 crore, <a href="http://www.businessinsider.in/searchresult.cms?query=VIJAY+MALLYA">Vijay Mallya</a> owes Rs 300 crore in salary to around 3000 employees. 
 Nearly 900 employees who are still employed with the <keyword id="6373962" type="CITY" weightage="20" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword> on paper and 2000 more who left since 2015 haven’t received their salaries. 
 
While many of the employees have changed their jobs, the ground staff, technicians and engineers are still unemployed. 
 
Irate employees had written an open letter to Mallya. “Your heart is impure and you have blood on your hands. We have so much to tell you but you won’t have patience and time to listen all that. Please do have regret and don’t set precedents dangerous to our country and aspiring entrepreneurs,” stated the employees in the open letter. 
 
READ MORE: <a href="http://www.businessinsider.in/Vijay-Mallyas-journey-from-a-businessman-to-a-fraudster/articleshow/51328653.cms">Vijay Mallya’s journey from a businessman to a fraudster</a> 
 
Many people who have changed their jobs are also facing a tough time as they are not able to get income tax refunds for the <a href="http://www.businessinsider.in/searchresult.cms?query=IT+department">I-T department</a> keeps adjusting it against tax dues which wasn't submitted by Kingfisher. 
 
Kingfisher Airlines closed its operations in 2012 due to cash and credit issues. It sank with total dues of more than $2 billion to banks, taxmen, employees, leasing companies, airports and other business associates. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=banks">Banks</a> have been chasing Mallya to get back more than Rs 7,000 crore. 
 
READ MORE: <a href="http://www.businessinsider.in/A-little-too-late-Mallya-flew-out-of-India-before-banks-could-take-a-stay-order-against-him/articleshow/51323634.cms">A little too late! Mallya flew out of India before banks could take a stay order against him</a>

‘You have blood on your hands’, employees of Kingfisher Airlines write to Mallya as he owes Rs 300 crore in salary

Former employees of the defunct carrier <keyword id="6373962" type="CITY" weightage="20" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword> are applying for jobs at soon-to-be launched <keyword id="2467342" type="UNKNOWN" weightage="20" keywordseo="Vistara">Vistara</keyword> airline, a 51:49 joint venture between Tata Goup and Singapore Airlines. 
	 
	“The counsel for Kingfisher Airline has told us that since the airline has not been operating, no revenue has been generated and hence they cannot pay us. It is good news for us that Vistara is coming up because most of us have joined the new airline,” said a former employee of the beleaguered carrier. 
	 Apart from Tata-Singapore Airlines's Vistara, many have also joined <keyword id="6354706" type="CITY" weightage="20" keywordseo="Indigo">Indigo</keyword>. “Both these airlines have Airbus 320 and since KFA had a fleet of Airbus 320, therefore, these suit us,” added the employee. 
	 
	It’s worth noting that Kingfisher airline has not paid its employees since 2012 and made promises of disbursal of salaries on several occasions. A section of the distressed employees have also submitted a plea in the Karnataka High Court for releasing the funds deposited with the court as a security. The employees had requested the Court to allow the management to access Rs 220 crore from the security (Rs 250 crore) deposited with the court, which came from UBHL stake sale to Diageo. 
	 
	Earlier this year, the employees also wrote to the labour Commission for the disbursal of the salary. Vijay Mallya was summoned by the chief labour commissioner to discuss the issue of unpaid salaries of the employees. 
	 
	Tata Group and Singapore Airline’s Vistara was scheduled to launch this month, however, aviation regulator Directorate General of Civil Aviation, has not yet issued the Scheduled Operator Permit to the airline. The airline took the delivery of its first aircraft Airbus-320 last month.

KFA
Employees May Join Vistara, Indigo

India’s biggest banks, who are pressurising on return of <a href="http://www.businessinsider.in/searchresult.cms?query=VIJAY+MALLYA">Vijay Mallya</a> to India, say they cannot be blamed for inaction towards Mallya in the debt case. 
 
In 2010, the <a href="http://www.businessinsider.in/searchresult.cms?query=RBI">RBI</a> (<keyword id="6354335" type="CITY" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword>) had taken a decision to widen the corporate debt restructuring scheme. 
 
As per experts, this was done to resurrect the ailing <a href="http://www.businessinsider.in/searchresult.cms?query=aviation">Indian aviation industry</a>, which also sent out a message to extend more loans to shore up Mallya's ailing <a href="http://www.businessinsider.in/searchresult.cms?query=kingfisher+airlines">Kingfisher Airlines</a>. 
 
As per a report by Economic Times, banks restructured loans after RBI’s nod and an independent agency’s assessment. 
 "Banks restructured loans based on two factors - RBI permitted to do so and second, based on an assessment from an independent agency, <keyword id="13222" type="CITY" weightage="20" keywordseo="SBI">SBI</keyword> Caps, which endorsed that restructuring of <keyword id="6373962" type="CITY" weightage="20" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword> loans would revive the company," Pradeep Ramnath, former chairman of Corporation Bank, told ET. 
 
READ ALSO: <a href="http://www.businessinsider.in/You-have-blood-on-your-hands-employees-of-Kingfisher-Airlines-write-to-Mallya-as-he-owes-Rs-300-crore-in-salary/articleshow/51340295.cms">‘You have blood on your hands’, employees of Kingfisher Airlines write to Mallya as he owes Rs 300 crore in salary</a> 
 
On the contrary, many experts feel the RBI cannot be put under spotlight as the central bank was trying to revive the Indian aviation industry from the slump. 
 
"RBI can't be faulted because loan restructuring was one of the steps taken over a span of couple of years to revive the airline sector," an analyst with a domestic brokerage told ET. 
 
The <a href="http://www.businessinsider.in/searchresult.cms?query=enforcement+directorate">Enforcement Directorate</a> has summoned <keyword id="14678" type="PERSON" weightage="20" keywordseo="Vijay-Mallya">Vijay Mallya</keyword> and he has a week’s time to appear before the agency.

This one step by RBI led Vijay Mallya to lend huge amount

<keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>, who is under immense pressure from Indian state-run banks to repay the loans worth Rs 9000 crores that he had taken for the now defunct Kingfisher Airlines, has stated that he wishes to honour his commitments, and has <a href="http://www.businessinsider.in/Vijay-Mallya-makes-another-attempt-this-time-he-is-offering-Rs-6000-crore-settlement/articleshow/51822342.cms">offered a new settlement</a> to the main lender SBI. In a United Breweries Ltd board meeting that he attended by a video-conference, he also stated that he hopes to make a quick progress on the matter. 
 
Enforcement Directorate of India is looking forward to <a href="http://www.businessinsider.in/UK-refuses-to-deport-debt-laden-Vijay-Mallya-money-lenders-grope-in-dark/articleshow/52217798.cms">extradite Mallya from the United Kingdom</a>, the country that he fled to, but in the meeting, he said that the chairman of UBL has the support of the board and strategic partner Heineken. 
 
Also read: <a href="http://www.businessinsider.in/Parliaments-Ethics-Committee-wants-to-expel-Vijay-Mallya/articleshow/52107381.cms">Expel Vijay Mallya, Parliament’s Ethics Committee says on receiving his resignation</a> 
 
"We expressed concerns over the various issues and Mallya has assured us that he is in serious negotiations with the banks to repay the loans as soon as possible. He has said he is willing to return to India to answer all questions but he has to be assured of his safety and freedom," said Kiran Mazumdar-Shaw, an independent board member. 
 
"Performance of the company has been extremely good and there is no corporate governance issue that has impacted it owing to Mallya," he added. 
 
Executives aware of the matter said that Heineken has chosen to stand by Vijay Mallya in his tough times. 
 
"Mallya told us he has been <a href="http://www.businessinsider.in/Vijay-Mallya-safe-in-UK/articleshow/52041381.cms">wrongly accused</a> and has every intent to repay loans," said Sunil Alagh, also an independent board member. "For now, the board stands by him and sees no corporate governance issues and would monitor progress until the next (board) meeting in August." 
 
Mallya told the board he had been wrongly accused of money laundering and there was no evidence to justify the allegations. He said he was willing to return immediately if he was assured of<a href="http://www.businessinsider.in/SC-says-Vijay-Mallya-will-have-to-declare-all-his-assets-to-the-Banks-including-that-of-his-wifes-and-childrens/articleshow/51994174.cms"> safe passage</a>. "We all unanimously expressed our concerns to Mr Mallya and he told us that he is making serious efforts to repay the banks," said CY Pal, independent board member. 
 
"He also told us he had tried to repay Kingfisher Airlines' employee dues through United Breweries Holdings but was delayed since the Karnataka High Court has frozen accounts and assets." He expressed his keenness to return to India if safe passage was assured, Pal added. 
 
<a href="http://www.newsx.com/sites/default/files/field/image/Vijay-Mallya-Net-Worth.jpg">Image source</a>

Vijay Mallya will return to India but only if his safety and freedom are ensured

After two years of radio silence, liquor baron Vijay <keyword id="6373968" type="PERSON" weightage="20" keywordseo="mallya">Mallya</keyword> finally released a statement to the media via <a href="https://twitter.com/TheVijayMallya?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor">his Twitter account</a> yesterday. In a five page letter, Mallya explained that he had filed a motion in the Karnataka High Court seeking permission to sell ₹139 billion worth of his assets to cover his outstanding dues with creditors. Mallya and his firms - the now defunct <keyword id="6360137" type="COMPANY" weightage="20" keywordseo="kingfisher">Kingfisher</keyword> Airlines and United Breweries - were declared wilful defaulters in late 2015. However, according to him, this designation came despite not one, but two, settlement proposals from his side. Also, he refuses to concede that the firms defaulted on their loans for any reasons other than “business failure”, when in reality, the government is pursuing fraud charges against him for money laundering and fund diversion. He currently owes a consortium of 17 state-owned banks around ₹99 billion, a bulk of which he says is “on account of interest”. Noting his disapproval at being made “the poster boy of bank default and lightning rod of public anger”, Mallya said that the overarching desire of government agencies wasn’t to collect evidence of criminal intent or allow him to cover his dues but rather to get him to India to face criminal charges. His extradition hearing in London is scheduled to end in late July. A pre-emptive plea The move comes a few days after the Enforcement Directorate (ED) initiated proceedings to declare Mallya a “fugitive economic offender” under a special ordinance and confiscate around ₹125 billion of his assets. This likely scared him into submission. Mallya concluded the letter by reiterating his desire to settle his dues with the public sector banks. However, other than asserting his desire to comply with the authorities, his plea is unlikely to change anything. He still has no desire to appear in court in India. Furthermore, his claims that he’s been trying to settle his dues since 2016 bear little credibility. Simply put, if he could pay back his loans in the last few years, he would have. This is the same person who threw a lavish 60th birthday party for himself merely weeks after Kingfisher Airlines defaulted on more than $1 billion worth of loans from the State Bank of India and had failed to pay its employees’ salaries. Offering to sell assets that are already slated for confiscation Most of the assets that Mallya has told the Karnataka High Court that he intends to sell are already on the chopping block, as notified by the ED. These include shares in firms like United Spirits and United Breweries, real estate properties like Kingfisher Villa and deposits with the court. Furthermore, Mallya is overestimating the value of his assets. For example, the Kingfisher Villa has been slated for sale for two years, but hasn’t been sold yet as buyers have steered clear. The reserve price has since fallen from around ₹850 million to ₹730 million. The ED has already moved a special court for permission to sell Mallya and his firms’ assets without a trial. A decision is expected within the next few months. In the meantime, if Mallya really wishes to shake off this “poster boy” image, he should come to India and face the charges in court.

Vijay Mallya wants to sell his assets to pay back loans, but it might be too little too late

The reports of <keyword id="6358032" type="CITY" weightage="20" keywordseo="SpiceJet">Spicejet</keyword>’s anticipated demise are swarming around. Many believe that this low-cost carrier too will be a case of ‘history repeats itself’. While general public, who have bought the airline’s tickets during the periodic flash sales are worried about the future of their flights, many others are busy spotting similarities between Vijay Mallaya’s defunct Kingfisher Airline and <keyword id="144015" type="PERSON" weightage="20" keywordseo="Kalanithi-Maran">Kalanithi Maran</keyword>’s beleaguered carrier Spicejet over cups of coffee. 
	 
	However, the greater concern here is what would be the repercussions on the entire aviation industry in India if the carrier shuts its shops. “The investors’ confidence is already shaky as far as the aviation industry is concerned,” said aviation expert and editor of aviation journal Bangalore Aviation, Devesh Agarwal. 
	 
	Another airline going kaput only spells bad news for the industry. After all, there are several stakeholders involved in this sector. Not just the lenders and the creditors but also trade partners such as the aircraft manufacturer, airport operators, caterers, cabin crew companies among others. 
	 
	“Lenders are the worst hit since they may have to take a significant write-down of the loans that have gone bad. Creditors like oil companies, airport companies, service providers and employees may also have to forego their dues,” said an industry expert on the condition of anonymity. 
	 
	Besides, the airline has over 5,000 employees on its payroll. Imagine what their plight would be if the airline shuts down. The economy definitely cannot afford to see another bunch of unemployed workforce. According to a news report, the 5,300 employees of the airline are now panicking ever since they have heard of the financial crisis that their company is going through. 
	 
	"Over 130 pilots have put in their papers. The airline had 33 Boeing 737s some months back and now it has only 20 of those planes flying. Of these also, at least five may be taken back. The airline's daily flights are down from 332 in summer to less than 230 (on paper, at least) now. So, even if it does survive by a miracle, it will not need as many people," said the report quoted a distressed employee. 
	 
	Apart from pilots and engineers, the junior rung of employees will get badly hit. “Pilots and aircraft maintenance engineers can still land a job in other airlines but it is the junior staff like the ground staff that will be hit hard,” explained Agarwal. 
	 
	Nevertheless, while these may be some of the implications of an anticipated scenario, however, the ultimate and the biggest victim of another collapse, if there would be one, would be the end customers or the passengers. 
	 
	The prices will rise exponentially and the industry that is still pegged to be one of the fastest growing markets across the globe, will soon lose out a large chunk of its potential revenues—thus, causing a ripple effect on the entire industry. 
	 
	Image: Indiatimes.com

Why Spicejet
Crisis Is A Bad News For The Industry?

As told earlier, India’s liquor baron <a href="http://www.businessinsider.in/A-little-too-late-Mallya-flew-out-of-India-before-banks-could-take-a-stay-order-against-him/articleshow/51323634.cms">Vijay Mallya</a> who owes thousands of crores to several <keyword id="488657" type="UNKNOWN" weightage="100" keywordseo="state-run-banks">state-run banks</keyword>, has fled the country. The legal battle in the Supreme Court and Debt Recovery Tribunal against Mallya is being led by SBI. 
 
 
Here is the breakdown of Mallya’s journey from a businessman to a wilful defaulter. 
 
1) Mallya owes nearly Rs 7,000 crore to bankers. Here's how it stacks up 
 
Rs 1,600 crore - SBI 
 
Rs 800 crore - PNB 
 
Rs 800 crore - IDBI 
 
Rs 650 crore - Bank of India 
 
Rs 550 crore - Bank of Baroda 
 
Rs 430 crore - United Bank of India 
 
Rs 410 crore - Central Bank of India 
 
Rs 320 crore - UCO Bank 
 
Rs 310 crore - Corporation Bank 
 
Rs 150 crore - State Bank of Mysore 
 
Rs 140 crore - Indian Overseas Bank 
 
Rs 90 crore - Federal Bank 
 
Rs 60 crore - Punjab &amp; Sind Bank 
 
Rs 50 crore - Axis Bank 
 
He, however, claims that out of these 7000 crores, Rs 1,200 crore have been recovered by these banks. 
 
2. A look at his holdings in his companies 
 
33% in United Breweries, which is worth Rs 7,000 crore. But more than half of the stake is pledged. 
 
22% interest in Mangalore Chemicals &amp; Fertilisers, which is worth Rs 140 crore. One-third of the shares are pledged. 52%of UB Holdings, a shell company, which has some real estate in Bangalore and other places, but the rentals have already been pledged. 
Under 1% stake in Bayer Corp Science, but Mallya remains its chairman. 
 
3. How Mallya became Mallya 
 
1983 | After his father's death, Mallya becomes UB group chairman at 28. 
1999 | Launches Kingfisher Strong, which changes beer consumption nationally, is still the largest selling brand. 
2002 | Nominated to Rajya Sabha. 
 
4. Mallya's shopping list 
 2005 | Launches <keyword id="6373962" type="CITY" weightage="100" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword> (KFA). Buys Shaw Wallace, gaining whisky brands such as Royal Challenge 
2006 | Buys Herbertsons, makers of Bagpiper whisky and Romanov vodka. 
2007 | Buys F1 team Spyker, renames it Force India. Acquires Air Deccan. Buys British whisky maker Whyte and Mackay for £595m. 
2008 | Buys IPL team Royal Challengers Bangalore for $111.6m. UB City comes up in Bangalore. 
 
5. And, how it got ruined 
2012 | KFA staff strike work for nonpayment of salaries, income-tax dept freezes KFA accounts, airline grounds flights. In Oct, govt suspends KFA licence. British alcoholic beverages firm Diageo agrees to buy majority stake in United Spirits 
2013 | Diageo acquires 27% stake in USL for Rs 6,500 crore, but KFA lenders do not get any funds. 
2014 | United Bank identifies United Breweries Holdings as wilful defaulter. 
2015 | Diageo asks Mallya to step down as chairman of the Indian liquor firm but he refuses. 
2016 | Banks move debt recovery tribunal, which restrains Mallya from accessing Rs 515 crore he was to receive from Diageo as settlement after agreeing to quit. 
 
6. The pain of Kingfisher’s employees 
Over 1,500 staffers, still on the firm's payrolls after it stopped operation, not paid? On March 5, employees write an open letter to Mallya, saying his 'heart is impure' and he has blood on his hands. They seek PM Narendra Modi's help to get their dues. 
 
7. Despite whatever he says, Mallya isn’t a broke bloke 
 
Mallya owns homes in Trump Towers, New York City, and in San Francisco. Game resort in South Africa. A beachfront villa in Goa. He also has a fleet of over 200 luxury vintage cars, a 95m "mega yacht" with a helipad, a Gulfstream private jet. 
 
<a href="http://clientimages.teamtalk.com/14/11/800x600/Vijay-Mallya_3228444.jpg">Image source</a>

Vijay Mallya’s journey from a businessman to a fraudster

<ul><li>Indigo has been hit by labour troubles on the ground too as this month, aircraft maintenance technicians went on a mass sick leave for two days in Delhi and Hyderabad.</li><li>All the airlines will face shortage of crew, leading them to poaching.</li><li>Experts also fear that this increase in demand for experienced pilots will push them to hire foreign pilots.</li></ul>India’s largest airline Indigo has been well-known for its on-time performance. Yet, earlier last month over half of its flights were delayed. Reason? A large chunk of its <keyword id="55080" type="General" weightage="20" keywordseo="cabin-crew" source="Orion">cabin crew</keyword> staff took a sick leave. As per s<a href="https://zeenews.india.com/aviation/indigo-staffing-trouble-continues-now-technicians-go-on-mass-sick-leave-for-this-reason-2483851.html">ources</a>, they all went to attend a mass recruitment drive by Tata Air India, a competitor. The airline has been hit by labour troubles on the ground too as this month, aircraft maintenance technicians went on a mass sick leave for two days in Delhi and Hyderabad to protest low wages and salaries. There will be more such incidents in the coming months, experts say, as a new airline Akasa Airlines is all set to launch operations. Jet Airways too is making a comeback and even Tata Air India is getting ready for a revamp. All of them will face shortage of crew, leading them to poaching. There are around 17,000 registered pilots in India out of which over 2,500 are women. The industry needs much more. “India needs 10,000 more flight attendants, 6,000 more qualified pilots. Compared to past slowdown of 2010, 2012 or 2009 in the industry, this time it is going to be very hard for the airlines to sustain. To sustain growth one has to add aircrafts, fleets, need more pilots, flight attendants, engineers,” Mark Martin, founder and CEO of Martin Consulting told Business Insider in an interview. Experts also fear that this increase in demand for experienced pilots will push them to hire foreign pilots. Flying schools had closed during the Covid-19 pandemic for two years and there are a lot of pending licenses to be approved as well. It’s not just the pilots but there will be a shortage of experienced engineers, ground staff and other cabin crew that new airlines would love to have in their fold. It means an aviation talent war is afoot and it will be another ground for old and new airlines alike to battle on — in addition to fliers and flying slots. <cmsannotation type="cmsannotation" annotationid="Salary cuts and bruises" comment="subhead" text="Salary cuts and bruises">Salary cuts and bruises</cmsannotation> While many international airlines went bankrupt and shut shop during the pandemic close downs, top Indian airlines have managed to stay afloat. For which, they had to resort to salary cuts and more such moves. Indigo and SpiceJet both deferred and slashed salaries but also restored them within a year, as airlines started flying in 2021. But very few salaries <a href="https://www.outlookindia.com/business/talent-war-amongst-airlines-aviation-sector-indigo-air-india-akasa-air-air-india-how-indian-airlines-are-gearing-up-to-prepare-for-talent-war-news-207844">are back to pr</a>e-pandemic levels in spite of the fact that Indians have been thronging airports in the recent months. This could be another reason why most of them could be swayed by better salaries and offers from the market. Praveen Paul, a Bengaluru based aviation consultant disagrees. He believes that employees would stick to bigger airlines which are better paymasters and will look for stability in addition to hikes. Indigo, he says, is one of the few airlines that pays its employees on-time, unlike most others. “I don’t see talent running to new airlines in a hurry. Indigo, Tata’s Air India will not lose any talent while SpiceJet, Go Air may lose as employees feel whatever happens they get their salaries on time at Air India and Indigo,” Paul told Business Insider India. Aviation sector jobs, while technical and necessary, have gone through many rounds of stress and strain in the last few years. After the debacle of Kingfisher employees who were never paid when it closed down in 2016, Jet Airways and its bankruptcy was also hard on the sector and its employees. However, now that there’s a turnaround, they would be in a better position to negotiate — that could be bad news for airlines who are already flying on wafer thin margins thanks to a massive increase in aviation turbine fuel prices. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/spicejet-says-its-md-ajay-singh-is-the-victim-to-a-bogus-complaint/articleshow/92818041.cms">SpiceJet says it’s MD Ajay Singh is the victim to a bogus complaint</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/butter-chicken-keema-pav-anda-burji-but-without-anda-or-chicken-and-mutton-how-startups-and-fmcg-players-are-shaping-indias-plant-based-meat-category/articleshow/92810504.cms">Butter chickenless, UnMutton keema — vegan meats hope to become the next ‘paneer’ but health concerns remain</a>

After techies, its aviation crew salaries that will be ‘up in the air’

Embattled liquor baron <keyword id="14678" type="PERSON" weightage="20" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>, on Tuesday asked Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> to consider his repeated "offer to repay 100 per cent" of the amount borrowed by now defunct <keyword id="6373962" type="COMPANY" weightage="20" keywordseo="kingfisher-airlines">Kingfisher Airlines</keyword>, in this time of coronavirus pandemic. Mallya, who is wanted in India on alleged fraud and money laundering charges amounting to an estimated Rs 9,000 crore, also said all his companies have effectively ceased operations and manufacturing following the lockdown in India. "I have made repeated offers to pay 100 per cent of the amount borrowed by KFA to the Banks. Neither are Banks willing to take money and neither is the ED willing to release their attachments which they did at the behest of the Banks. I wish the FM would listen in this time of crisis," Mallya said in a series of tweets. He further said, "Indian <keyword id="26362" type="COMPANY" weightage="20" keywordseo="Government">Government</keyword> has done what was unthinkable in locking down the entire country. We respect that. All my companies have effectively ceased operations. All manufacturing is closed as well." Mallya sought government help and said, "we are not sending employees home and paying the idle cost. Government has to help." Asking people to stay safe and maintain social distancing "which can effectively be achieved by staying home and enjoying home time with family and pets, he said, "I am doing the same. We all have a sense of bravado but it's not worth challenging an unknown enemy which isn't Pulwama or Kargil." Mallya has challenged in the UK <keyword id="6355392" type="COMPANY" weightage="20" keywordseo="High-Court">High Court</keyword> his extradition from the country. RKL DRR

Vijay Mallya appeals to Finance Minister to reconsider his repayment offer during these 'tough' times

India’s civil <keyword id="45911" type="UNKNOWN" weightage="100" keywordseo="Aviation-sector">aviation sector</keyword> has been going through turbulent times lately. During its boom period from 2004 to 2008, the sector was driven by high economic growth rates and rise in income of the salaried class which had come to enjoy huge disposable incomes. 
 
Then the global economic recession hit in the last quarter of the calendar year 2008. Travel numbers dropped significantly and pushed airlines to barely managing operating costs. Yet amidst the gloom and doom scenario where the most glamorous of them all, Kingfisher, has fallen, a new star is aiming to rise. 
 
A new market of small city middle class travellers Malaysian budget carrier <keyword id="6358246" type="COMPANY" weightage="100" keywordseo="AirAsia">AirAsia</keyword>, one of the most profitable low-cost airlines in the world, partnered with <keyword id="46894" type="PERSON" weightage="100" keywordseo="Tata-Sons">Tata Sons</keyword> and launched AirAsia India, which has been touted to bring in ultra low cost air travel to everyone in India who currently still travel by bus and trains. So who is the target traveller of AirAsia India? The vast majority of the Indian middle class which mostly avoids costly air travel. They include people like IT and sales executives travelling short distances between two nearby cities, teachers, doctors, engineers and small retail owners. But how will or can AirAsia tap this potentially huge customer base with existing low margins and high costs in the Indian aviation sector? 
 
Big time cost cutting to go cheap 
AirAsia India’s model is based on squeezing out every bit of time, energy and space from every other possible asset. AirAsia India is targeting fastest turnaround time for Indian aviation at less than 25 minutes. Turnaround time is defined as the time duration counted from the moment the plane lands till the moment the plane takes off from a particular airport. But high congestion in Indian airports, big ones in general, and especially during holiday and festival season makes turnaround times of even less than 30 minutes impossible. So, this will be a challenge that AirAsia will have to face for bigger airports. 
 
Again, intertwined with faster around time is its concept of more flying time for its aircraft per day and higher frequencies. This will serve smaller airports during the day which will be served by more number of flights by AirAsia. However, this would mean flights at odd hours like 5:30 in the morning to 11:30 at night which will be difficult at smaller airports where night flying facility is not up to the mark or not available. And larger airports’ congestion might not allow for such schedules. 
 
Then, on the personnel front, it is also going for cabin crews helping in loading and unloading from the baggage compartment and same crews will assist in removing stubs from boarding passes and prepare load sheets. Thus in this way, AirAsia is targeting an aircraft-to-manpower ratio of less than 1:100. Indigo achieved a ratio of 1:98 many years ago but that was because of economies of scale achieved through owning many planes. 
 
It is also going for point to point service without any tie ups with other airlines and travel companies. AirAsia India has its own website from where it provides all information and booking facility to its customers and travellers. This saves on costs of networking with other airlines and travel companies but takes away the advantage from travellers of being able to compare total flight expenses from different flight options on travel companies’ websites. 
 
Also, it aims to utilise every inch of space in the aircraft by packing as many seats as possible. So basically, there’s not much scope in terms of leg room or stretching your seat back. That is also one of the reasons why the airline has chosen smaller duration routes. 
 
Will consumers have to pay eventually? 
Finally, the real squeeze will be eventually from the consumers themselves but in a tricky way. The key here is targeting that segment of travellers who have to travel light for short distances – single-day or two-day business trips mostly over short distances. That’s why it is not refunding anything to travellers on cancellation of tickets. This is something that ‘no-frills’ airlines have been using across the globe in different ways. 
 
But in an evolving market like India, it will depend on how different segments of travellers take to the concept of going for reservations only in case of absolute certainty in travel plans. Companies paying for their employees’ travel will mostly not go for this option as corporate travel plans often change at the eleventh hour. 
 
They also did away with free check-in luggage of up to 15 kg but the Directorate General of Civil Aviation (DGCA) butted in and asked the airline to take it back. That was some relief for consumers. 
 
Polarised opinion 
Other airlines and industry experts are divided on the future of AirAsia India. On one hand, industry experts and corporate honchos from other airlines feel that since the biggest cost element for Indian airlines remains aviation turbine fuel, making up 50% of operating costs along with airport leasing charges, the tweaking of other elements will not make that much of a difference in the long run. 
 
On the other hand, while the airline has targeted a break-even in less than six months, perhaps a promotional gimmick at best, it doesn’t matter that much because of the Tata tag. The biggest and most respected business group in India will easily make lenders wait for the airline to break-even and anytime expansion is needed, the profitable parent airline AirAsia in Malaysia and Tata Sons in India can put more capital into it. 
 
In essence, AirAsia will have to go for a lot of planning, market research, high operational efficiency and revenue forecasting for different possible routes so as to ascertain the most profitable ones.

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