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Kingfisher Airlines NEWS -- Part 6
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747-237
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PostPosted: Mon Oct 01, 2012 12:00 pm    Post subject: Kingfisher Airlines NEWS -- Part 6 Reply with quote

http://in.reuters.com/article/2012/10/01/india-kingfisher-regulator-idINDEE89004E20121001

Aviation regulator says "examining" Kingfisher situation

Oct 1, 2012

(Reuters) - India's civil aviation regulator is "examining" the situation at Kingfisher Airlines after the ailing carrier was forced to cancel several flights on Monday due to employee unrest, an official at the regulator told Reuters.

"We are considering, examining the whole situation," Arun Mishra, the Director General of Civil Aviation, said over the telephone.

No Kingfisher flight is operating at the moment, Mishra added.

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ameya
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PostPosted: Mon Oct 01, 2012 1:42 pm    Post subject: Reply with quote

Time they stop examining the situation and ask them to pay up or shut shop till they can fly properly
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PostPosted: Mon Oct 01, 2012 2:46 pm    Post subject: Reply with quote

7 months is long enough for anyone to wait - I think it's time VJM shut shop as he's not been able to do anything about the situation despite having over a year of warning.
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PostPosted: Mon Oct 01, 2012 2:53 pm    Post subject: Reply with quote

There have been several reports recently which suggest that the only way Uncle can save IT is by selling a vast portion of his liquor empire. Unlike his airline , his liquor business is still very attractive to investors.
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PostPosted: Mon Oct 01, 2012 3:10 pm    Post subject: Reply with quote

ameya wrote:
Time they stop examining the situation and ask them to pay up or shut shop till they can fly properly


Time has come now to take IT off ventilator.
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PostPosted: Mon Oct 01, 2012 3:30 pm    Post subject: Reply with quote

The_Goat wrote:
There have been several reports recently which suggest that the only way Uncle can save IT is by selling a vast portion of his liquor empire. Unlike his airline , his liquor business is still very attractive to investors.


Here are the options open to the fat one:

1. Let IT flounder and go down, let the lenders and employees take the hit for the amounts owed. He continues to be a rich man with a massive liquor business which remains profitable. At most, he may have to give up the "Kingfisher" brand. He blames the employees for bringing the airline down, and thinks he gets away scot-free.

2. Sell massive amounts of his liquor business, recapitalize IT, and let the lenders/employees get their money back. He would end up with nothing in his hand, neither the liquor business, nor the airline.

It's pretty clear what path he'll choose isn't it?
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PostPosted: Mon Oct 01, 2012 3:41 pm    Post subject: Reply with quote

Nimish wrote:
It's pretty clear what path he'll choose isn't it?


Considering his decision making abilities, I won't be surprised if option 2 is selected.
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PostPosted: Mon Oct 01, 2012 5:12 pm    Post subject: Reply with quote

Some Engineering staff assaulted a manager yesterday...The pressure is building up.....
7 months is a long time with no pay.....Hope someone does not tamper with the Aircraft......under stress.
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PostPosted: Mon Oct 01, 2012 5:17 pm    Post subject: Reply with quote

True. I hope the MoCA / DGCA do not wait for some body who just loses his cool and does something which will harm. If at all that happens, then the same authorities will say they tried doing everything and other crap.

Read somewhere, that Sanjay Agarwal is holidaying and VJM is in France. The CFO spoke to pilots and engineers only to tell them that they cannot pay money and only way is to come to work so that there is some money to be made.

That is another set of BS coming from the Management. Inside sources say that selective top management is being paid
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PostPosted: Mon Oct 01, 2012 6:23 pm    Post subject: Reply with quote

FirstPost has gone to town on Mallya's *ss.

Keeping with fair use rules, so that AI.net doesn't run afoul of copyright laws I am quoting only the first para or two of the article. Also, there are a lot of hyperlinks within the stories which add a lot to the article. I request fellow AI.netters to read the story and then comment here.

Quote:
Mallya hears 17 ‘Noes’ when asking for more loans
by FP Editors Oct 1, 2012

http://www.firstpost.com/business/mallya-hears-17-noes-when-asking-for-more-loans-472669.html

You’ve got to hand it to the man. His lenders, already skittish over Kingfisher Airlines’ unimpeded progress from the ICU to the mortuary, are worried sick about how to recover the Rs 6,339 crore they have lent to Vijay Mallya, but the King of Once Good Times tried to hit them for yet another loan: Rs 200 crore this time.


Quote:
Goa, F1, volleyball: Can Mallyas please stop living the good life?

http://www.firstpost.com/business/goa-f1-volleyball-can-mallyas-please-stop-living-the-good-life-474969.html

by Anant Rangaswami Oct 1, 2012

“Kingfisher Airlines‘ troubles took a turn for the worse after some of its Mumbai-based pilots on Monday joined the strike called by the carrier’s engineers yesterday over non-payment of salaries. Taking note of the tremulous situation, the Directorate General of Civil Aviation (DGCA) said it is “examining the situation” in the wake of mass cancellation of its flights,” says NDTV.

“The airline’s staff has written to the management demanding payment of salaries, outstanding for seven months now, by Friday, October 5. Shares in Kingfisher Airlines traded lower for a second straight day, falling nearly 5 percent at Rs. 15.35,” NDTV’s article continues.


Okay, now for a change from the Mantri ji. Or is this a message to VJM to come to him with some "suitcase technology"

Quote:
Live: Kingfisher won’t be allowed to fly if safety norms are violated

by Sindhu Bhattacharya Oct 1, 2012

http://www.firstpost.com/business/no-kingfisher-flights-operating-currently-dgca-474833.html

16:30 pm Taking stock of the Kingfisher crisis, Aviation minister Ajit Singh has said the airline will not be allowed to fly if safety norms are not followed. The minister added that if the DGCA report finds that the airline does not stick to the schedule or violates the safety norms, the ministry would take action against the Vijay Mallya-led airline.

Till engineers certify the airline to fly and till the DGCA certifies safety, there will be no Kingfisher flights, Singh explained. “We can shut down the airline if DGCA says it is not airworthy,” Ajit Singh said.

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PostPosted: Mon Oct 01, 2012 7:17 pm    Post subject: Reply with quote

Devesh wrote:


I don't even know where to begin. VM's arrogance is unbelievable! Such disgusting attitude, when his own employees haven' been paid for months!

People with such arrogance go only one way - down the toilet!
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PostPosted: Mon Oct 01, 2012 9:33 pm    Post subject: Reply with quote

Taking a cue from Union Minister Ajit Singh’s statement that Kingfisher Airlines could approach other carriers for safety certification, the Vijay Mallya-promoted airline has reportedly approached Air India and others for getting its aircraft checked for certification.

“Kingfisher Airlines is in talks with Air India, IndiGo and Jet Airways to get its aircraft certified by their engineers for flying,” an airline source said in Mumbai.


http://www.firstpost.com/business/kingfisher-in-talks-with-other-airlines-for-safety-checks-475888.html
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PostPosted: Mon Oct 01, 2012 9:38 pm    Post subject: Reply with quote

http://origin-www.livemint.com/Companies/tL1BXAirePa8kUuRSDPDAK/Kingfisher-likely-to-cancel-flights-on-employee-unrest.html

Kingfisher Airlines stops selling tickets

Airline’s flights out of Mumbai, New Delhi, Bangalore now need prior approval from aviation regulator

Oct 01 2012

After cancelling all flights on Monday, Kingfisher Airlines Ltd stopped selling tickets for Tuesday as staff unrest disrupted services over the weekend.

For those trying to book a Tuesday ticket online, the carrier returned a “no flights found” message.

It is not clear when the airline will resume services. The company offered no comment.

Most ground engineers and pilots have stopped working since Sunday, leading to a virtual grounding of the airline’s fleet. Employees have not been paid salaries for seven months.

Shares of the Vijay Mallya-owned airline, which has $3 billion in debt, dropped as much as 4.78% in Mumbai trading, erasing the gains it made after India liberalized rules to allow foreign airlines to buy stakes in local carriers. Rivals Jet Airways (India) Ltd and SpiceJet Ltd rose 0.09% and 2.02%, respectively.

“The question is whether we will be able to go back to operations after two days,” a company executive said, requesting anonymity. “I doubt it. Airlines just don’t come back after not operating for two days.”

From being India’s second largest domestic airline by passengers in 2009, Kingfisher is already reduced to being the smallest, with just 3.2% market share, operating just nine aircraft in September.

Mallya, who is in France, posted a tweet on the micro-blogging site in the early hours on Monday, minutes after Kingfisher said in a statement that employees had fought with each other.

“The media are having a great time slamming me. Let them continue their wild and inaccurate speculation. I will prove all of them wrong,” Mallya said on his Twitter account, without elaborating on his plans.

Kingfisher’s flights out of Mumbai, New Delhi and Bangalore will now need prior approval from the aviation regulator.

“We have told our regional offices that every time a Kingfisher flight takes off, they need to ensure it is signed off by a licensed engineer,” Arun Mishra, director-general of civil aviation, said in a phone interview.

Mishra said he had asked Kingfisher chief executive Sanjay Aggarwal to appear before him in Delhi to explain the status of the airline on Tuesday, a national holiday for the birth anniversary of Mahatma Gandhi. Aggarwal, who was on vacation in southern India, returned to Mumbai on Monday.

The deteriorating situation could have an impact on safety, an aviation expert said.

“Safety is most important and that has taken the back-seat as far as Kingfisher is concerned,” said Mohan Ranganathan, an aviation safety consultant and a member of a government-appointed civil aviation safety advisory council.

Mishra said Kingfisher was facing “industrial unrest” and insisted there was nothing “unsafe” at the airline.

“We have just finished an audit of the company,” he said.

Talks between a group of its pilots and chief financial officer (CFO) A. Raghunathan failed on Monday morning.

“About 25-30 of us met the CFO today. He has said ‘do whatever you want to do. We cannot pay. The only way we can pay is if you were flying. But you are not’,” a pilot leading the protest said, requesting anonymity.

Kingfisher earlier in the day said it expects flight cancellations across its network on Monday following clashes between groups of workers.

“A section of employees of Kingfisher Airlines has not been reporting to work over the last fortnight, and over the past two days, they have been threatening and even manhandling the other employees who are reporting to work as usual,” the carrier said in a statement.

Kingfisher passengers were unable to disembark from planes in Delhi and Mumbai after landing on Sunday following clashes among staff over one group having allegedly been paid long-delayed salaries.

Shakti Lumba, a former vice-president with low-fare airline IndiGo, said the highest risk to flight safety is “subtle pilot incapacitation”, similar to “subtle corporate incapacitation”.

“Kingfisher is a classic example of subtle corporate incapacitation with resultant grave air safety implications,” he said.

The aviation ministry and the regulator were not being fair and equitable in the handling of Kingfisher’s airline permit, he said, citing the example of airline firm MDLR, whose license was not renewed by the Directorate General of Civil Aviation (DGCA) under similar conditions.

“We can shut down the airline if DGCA says it is not airworthy,” aviation minister Ajit Singh said on Monday.

Current rules say airlines with less than five aircraft in operation cannot be run as a scheduled airline.

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PostPosted: Mon Oct 01, 2012 10:39 pm    Post subject: Reply with quote

I used to ask why the employees kept coming into work when they haven't been paid for months. I guess if people are that dumb they deserve it.

Now I'd like to know why people even bother booking tickets on KF? Are they that cheap that it's irresistible?
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PostPosted: Mon Oct 01, 2012 11:52 pm    Post subject: Reply with quote

Phew - not selling tickets is a good sign - finally the end is in sight...
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PostPosted: Tue Oct 02, 2012 1:14 am    Post subject: Reply with quote

747-237 wrote:
http://origin-www.livemint.com/Companies/tL1BXAirePa8kUuRSDPDAK/Kingfisher-likely-to-cancel-flights-on-employee-unrest.html
May I request 747-237. Please do not copy paste the whole article. It violates copyright.

Mods, may I suggest we take a page from Airliners.net in terms of rules and take steps to safeguard AI.net.

TIA
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PostPosted: Tue Oct 02, 2012 1:18 am    Post subject: Reply with quote

sammyk wrote:
I used to ask why the employees kept coming into work when they haven't been paid for months. I guess if people are that dumb they deserve it.
What is the alternative you propose?

As "executive" level employees they are not coverned by normal labour laws and cannot approach the labour commissioner. Their contract calls for a 6 month notice period, which DGCA has been enforcing. Their employment contracts calls for arbitration to resolve disputes, and arbitration can easily take at least 2+ years to resolve, and that too may not be in the employees' favour.
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PostPosted: Tue Oct 02, 2012 3:03 am    Post subject: Reply with quote

Kingfisher Airlines declares partial lockout, suspends flights till Thursday

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/kingfisher-airlines-declares-partial-lockout-suspends-flights-till-thursday/articleshow/16633138.cms

I also read in a few articles that Ajit Singh has stated that IT shutdown is not possible as it would create a havoc even with just 3% market share.. I'll try and dig up a link to this.. In my view, DGCA cant act against IT (i.e. shut it down) for non-payment of salaries, frequent strikes by employees etc simply because it would then have to justify not doing the same to its 'pet' AI..
I am keen to see the 'havoc' created if IT is shut down and we may get a preview of it in the next three days of flight suspension.
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PostPosted: Tue Oct 02, 2012 2:54 pm    Post subject: Reply with quote

Thinking from a staff angle.......Besides higher paid staff like Pilots/Engineers/mgrs.......The worst hit are the lower ranked staff.
Not being paid for 6 months is a nightmare with most staff having loans to settle added by the peer pressure & financial situation,the fatigue & stress level must be skyhigh.
Some staff with Airport access loosing it....could mean disaster to aviation out here.

Maybe VJM could gift these staff cash from his personal account to cover their losses.....If regulation does not give him the freedom to pay them from the company due lack of funds.

This can lead to a safety issue if stretched further......by using CAR145 & certifying their fleet by outside agencies does not solve the problem,they end up angering their own staff.

VJM needs to wake up....His mgmt has duped him for all these yrs....but he still sleeps on.
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PostPosted: Tue Oct 02, 2012 5:45 pm    Post subject: Reply with quote

According to Sanjay Agarwal today, IT is currently operating with 7 x A320s and 3 x ATRs, with plans to add one more ATR shortly.
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PostPosted: Tue Oct 02, 2012 6:39 pm    Post subject: Reply with quote

The DGCA, instead of shutting down KF, they are providing more excuses and avenues for it to operate. We will know on Friday, what exactly KF will intend to do, when they supposed to resume service. Hopefully they are gone.
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PostPosted: Tue Oct 02, 2012 8:43 pm    Post subject: Reply with quote

With all the negative publicity, strikes, reports of possible safety violations, etc., who in their right mind would want to fly IT today?

I bet Mallya wouldn't fly his own airline today.
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PostPosted: Tue Oct 02, 2012 10:45 pm    Post subject: Reply with quote

Quote:
I bet Mallya wouldn't fly his own airline today.

Has he ever?
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PostPosted: Wed Oct 03, 2012 12:07 am    Post subject: Reply with quote

Devesh wrote:
747-237 wrote:
http://origin-www.livemint.com/Companies/tL1BXAirePa8kUuRSDPDAK/Kingfisher-likely-to-cancel-flights-on-employee-unrest.html
May I request 747-237. Please do not copy paste the whole article. It violates copyright.

Mods, may I suggest we take a page from Airliners.net in terms of rules and take steps to safeguard AI.net.

TIA


Yes please! Cut & Paste of whole article is allowed only in Editorial section. Here paste only the relevant section, and provide the link

rgds
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PostPosted: Wed Oct 03, 2012 9:02 am    Post subject: Reply with quote

If KF does get their planes certified from AI / 6E / G8 engineers it will further anger the staff of KF.

KF management has ensured that they do not have anybody with them even in good times, if at all good times are back.

On the a/c front, they are operating 6 A32x and 3 ATR, with 1 A320 being used to rotate spares and checks
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PostPosted: Wed Oct 03, 2012 2:08 pm    Post subject: Reply with quote

KF has committed to pay ALL salaries due in this month.....Lets see how things go.....
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PostPosted: Wed Oct 03, 2012 2:49 pm    Post subject: Reply with quote

HAWK21M wrote:
KF has committed to pay ALL salaries due in this month.....Lets see how things go.....


ALL is what last 7 months ? And in return ask the employees to start work from day after ?
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PostPosted: Wed Oct 03, 2012 3:07 pm    Post subject: Reply with quote

ameya wrote:
HAWK21M wrote:
KF has committed to pay ALL salaries due in this month.....Lets see how things go.....


ALL is what last 7 months ? And in return ask the employees to start work from day after ?


And this is the 30th such commitment in the last year? What makes this one different that employees should believe it?
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PostPosted: Wed Oct 03, 2012 4:15 pm    Post subject: Reply with quote

Kingfisher Airlines to gain access to frozen bank accounts to pay staff

3-Oct-2012 12:22 PM

Kingfisher Airlines will reportedly be permitted to access INR6 billion (USD115 million) in frozen bank accounts to pay employee salaries, which were last paid in Mar-2012 (Reuters/CNBC, 02-Oct-2012).
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PostPosted: Wed Oct 03, 2012 5:05 pm    Post subject: Reply with quote

Apparently the CEO has asked for 20 days to pay the March salary.

So the talks are revolving only around the March salary and no other payment. IMO the staff has to do something drastic like this to get what is rightfully theirs - salary for the months they have worked
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PostPosted: Wed Oct 03, 2012 7:24 pm    Post subject: Reply with quote

Apparently KFA is trying to get employees to call off strike by paying one month salary that too after 15~20 days.

http://www.business-standard.com/india/news/kingfisher-crisis-deepens-as-talksstriking-crew-fail/189534/on

I am rolling on the floor laughing my *ss off while typing this much itself. The employees now have KFA on the mat, they should squeeze for their pound of flesh, but also need to ensure they do not draw too much blood else the airline will fail and along with that their hopes of any payment.

Merchant of Venice time folks. Who do you think will blink?
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PostPosted: Wed Oct 03, 2012 8:11 pm    Post subject: Reply with quote

^^ Honestly - the employees should not work until they get money in their banks - preferably at least 3-4 months worth of pay first, then back to work. If he can't get the funds now, he's not going to get them 20 days later. The 20 days is just pure BS.
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PostPosted: Wed Oct 03, 2012 8:19 pm    Post subject: Reply with quote

But the most bizarre condition that DGCA has imposed is that the airline must ensure that “no unscrupulous” employee is positioned near the aircraft.


Besides asking Kingfisher to keep “unscrupulous” employees away from its aircraft, the regulator has imposed six other conditions before operations can restart:

1) Ensure sanctity of approved schedule. This means the airline must stick to the daily schedule which it had filed earlier with the DGCA
2) Ensure no more frequent flight cancellations happen
3) Ensure all employee grievances are met
4) Ensure safety of operations
5) Get their aircraft certified from engineers before takeoff
6) Ensure that regional level DGCA officials at Delhi, Mumbai and Bangalore certify aircraft for full preparedness


http://www.firstpost.com/business/dgca-fears-sabotage-tells-kingfisher-to-keep-unscrupulous-workers-away-478380.html
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PostPosted: Wed Oct 03, 2012 8:51 pm    Post subject: Reply with quote

747-237 wrote:


Besides asking Kingfisher to keep “unscrupulous” employees away from its aircraft, the regulator has imposed six other conditions before operations can restart:


http://www.firstpost.com/business/dgca-fears-sabotage-tells-kingfisher-to-keep-unscrupulous-workers-away-478380.html


How will they know if a person is 'unscrupulous' or not? It is not like people walk about carrying placards with 'Main Unscrupulous Hoon' written on them Rolling Eyes
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PostPosted: Wed Oct 03, 2012 9:22 pm    Post subject: Reply with quote

Quote:
NEW DELHI: Kingfisher Airlines, which has cancelled all flights through Thursday, faces a potentially prolonged shutdown until the cash-strapped carrier clears a salary backlog going back half a year.


http://timesofindia.indiatimes.com/business/india-business/Kingfisher-Airlines-faces-prolonged-shutdown-as-it-scrambles-to-find-investors/articleshow/16656577.cms

Is this the END??
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PostPosted: Wed Oct 03, 2012 9:27 pm    Post subject: Reply with quote

shivendrashukla wrote:
Quote:
NEW DELHI: Kingfisher Airlines, which has cancelled all flights through Thursday, faces a potentially prolonged shutdown until the cash-strapped carrier clears a salary backlog going back half a year.


http://timesofindia.indiatimes.com/business/india-business/Kingfisher-Airlines-faces-prolonged-shutdown-as-it-scrambles-to-find-investors/articleshow/16656577.cms

Is this the END??

Its about time they close down.
I really don't think EK should invest money in IT.
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Devesh
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PostPosted: Wed Oct 03, 2012 11:19 pm    Post subject: Reply with quote

jbalonso777 wrote:
Its about time they close down.
I really don't think EK should invest money in IT.
This is not directed at jbalonso. I hear a lot of AI.netters saying "close Kingfisher" and it appears as an easy solution.

Have we given serious thought to the impact of closure?

It will start with the banks, ripple through the oil companies, hundreds of vendors, AAI, airports, leasing companies (who will then treat India as an extremely high risk market, impacting other airlines), the numbers of employees who will be unemployed, who, once the company is bankrupt, have no hope of getting their pending salaries, and ultimately the impact on us passengers with higher air fares.

No friends, the Kingfisher saga does not have an simple or easy ending.

Do you think we should discuss these impacts in this forum?
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flyjet787
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Joined: 26 Jan 2010
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PostPosted: Wed Oct 03, 2012 11:55 pm    Post subject: Reply with quote

Devesh wrote:
jbalonso777 wrote:
Its about time they close down.
I really don't think EK should invest money in IT.
This is not directed at jbalonso. I hear a lot of AI.netters saying "close Kingfisher" and it appears as an easy solution.

Have we given serious thought to the impact of closure?

It will start with the banks, ripple through the oil companies, hundreds of vendors, AAI, airports, leasing companies (who will then treat India as an extremely high risk market, impacting other airlines), the numbers of employees who will be unemployed, who, once the company is bankrupt, have no hope of getting their pending salaries, and ultimately the impact on us passengers with higher air fares.

No friends, the Kingfisher saga does not have an simple or easy ending.

Do you think we should discuss these impacts in this forum?


All these points apply to Air India as well on a much larger scale. If you think shutting down KFA because of the above reasons is bad then shutting down AI would be a catastrophe.
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Nimish
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PostPosted: Thu Oct 04, 2012 12:21 am    Post subject: Reply with quote

Devesh wrote:
Have we given serious thought to the impact of closure?

It will start with the banks, ripple through the oil companies, hundreds of vendors, AAI, airports, leasing companies (who will then treat India as an extremely high risk market, impacting other airlines), the numbers of employees who will be unemployed


Devesh - IMO - keeping them running will only further worsen each of the problems you've mentioned above. VJM is not going to pour his good money after bad, he's just looking for some "bakra to phasao". And in the mean time, keep screwing each of those listed above - whether banks, oilcos, vendors, AAI and most importantly employees!

Much better to swallow the losses (or go under if needed) right now, than deal with 2 times the magnitude in a few months.
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Aseem
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PostPosted: Thu Oct 04, 2012 5:30 am    Post subject: Reply with quote

Can we take this as an opportunity to create an equivalent of Chapter 11?

rgds
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