Oct 8, 2012

5 Star Mess [283/365]

Nothing is so strong as gentleness, and nothing is so gentle as real strength.
— Ralph W. Sockman 


So the past year has been really bad for Mr Mallya.
India's flamboyant billionaire risks loosing his equally flamboyant airline after piling up billions of dollars in losses.
While his airline has been grounded for the past 10 days after a partial lockout, his woes have increased.
The DGCA has asked him why they should not cancel the airline's license after critical ground support staff have struck work after not been paid salaries for the past seven months.

Following resignations of several high profile employees in the upper management, on Friday one of the staffer's wife committed suicide after not being able to put up money for her son's studies abroad. WOW! Farmer suicides are passe. Who cares about them anyway? But when you are unable to send your child to study abroad, sure. That is a new low for our nation. Poonam Pandhey, take note.

If you ask me, I know Mallya is going to come out of this mess that he walked into.
The clues lie in the lessons he's learned. Inheriting his father's business at the tender age of 29, he has made Kingfisher what it is today. From spirits to real estate, Formula 1 to a T20 Cricket team, he has done it all. He has sprawling penthouses in all four continents and every motoring luxury known to mankind.
He will definitely need to pull a rabbit out of the hat to save his airline and keep his liquor business. With the airline loosing all of its value, its lenders can neither seize the leased aircrafts nor allow the airline to die. The fact that the government has allowed his airline to fly all these years speak of the incredible clout that Mallya yields in the upper echelons of Delhi.

While it looks apparent that Mallya is not going to save the airline from his pocket, the next couple of days will reveal if he is ready to loose his airline to keep his title of liquor baron intact. The lenders are thin on patience and the time is running out for Mallya to act.


Interestingly, for a company that is known for its calenders Kingfisher sure hasn't kept any of the dates it promised to pay salaries on.
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