Wednesday, February 27, 2013

Mallya Can’t Fly
[The headline of this article has no connect with the main story. The headline should have been "Mallya Will Be Able To Make KFA Ltd Fly"? This is called "Yellow Journalism" and these types of media channels and dailies abound in India; who earns by creating unnecessary sensations. Many a times these acts as "FRONT RUNNERS or DALAL's of some operators/promoters. However, the article admits, my yesterday's take that, the recent government decision has nothing much to do, with the ongoing restructuring plans of Kingfisher Airlines Ltd. There is unnecessary panic selling by the vested groups. Therefore, those who have deep pockets should accumulate the shares of KFA Ltd..........]
Is this the end of the road for Mr Vijay Mallya’s Kingfisher Airlines? The government’s decision to withdraw all international flying rights and domestic slots from the airline may or may not be worse than the fact that it is struggling to raise funds to restart.
No doubt, the decision to cancel slots only means that the road to recovery has just got a little longer. KFA has accumulated losses of over  ` 8,000 crore and is facing a threat from a consortium of 17 banks led by the SBI to recall loans to the tune of  ` 7,500 crore. Top officials of the company kept up a brave face saying that the loss of the slots is not a big blow as they can always reapply for them once funds to run the airline are assured. The airline has been plagued with problems and last December its licence was withdrawn as it was unable to satisfy the regulatory authority on issues concerning safety and preparedness for revival. In a bid to throw KFA a lifeline, the Centre opened the doors for foreign investment in airlines, but this did not help either. Mr Mallya, it seems, is now banking on the deal with Diageo Plc, the world’s largest liquor company which will infuse nearly  ` 5,500 crore into the kitty. Either that or KFA will soon be history.

Courtesy: The Navhind Times