Airlines of India - Lawsuit on KF: Will KF buckle down and fold up

In today's press: http://www.livemint.com/2009/09/09221846/BPCL-files-suit-for-winding-up.html?h=B

I know that legally, this is possible, and an action that has been taken in several cases. Mostly, it is the threat factor that pushes the defendant (KF in this case) to try and borrow from other sources, to pay up the creditor. However, there have been a handful of documented cases where a similar litigation (frivolous, if I may add) has actually closed down corporations. And of course, there's everything in between.

Personally, I don't think this would affect KF in a normal context, but given who the plaintiff is, am not sure they care!

In today's press: http://www.livemint.com/2009/09/09221846/BPCL-files-suit-for-winding-up.html?h=B

...there have been a handful of documented cases where a similar litigation (frivolous, if I may add) has actually closed down corporations.

Darn, and I was considering buying SIN-DEL-SIN tickets with them. Probably not a good idea? And Jet Airways has pilots strike. Fantastic. :)

Darn, and I was considering buying SIN-DEL-SIN tickets with them. Probably not a good idea? And Jet Airways has pilots strike. Fantastic. :)
What an irony !!! The story of the 3 largest Indian carriers:
IC - Going bankrupt;
9W - Pilots strike;
KF - Slapped with winding up lawsuit!

What's left are the LCCs. Can't be a good sign...

Darn, and I was considering buying SIN-DEL-SIN tickets with them. Probably not a good idea? And Jet Airways has pilots strike. Fantastic. :)I thought you already did??

What an irony !!! The story of the 3 largest Indian carriers:
IC - Going bankrupt;
9W - Pilots strike;
KF - Slapped with winding up lawsuit!

What's left are the LCCs. Can't be a good sign...I completely agree - what is going on!!?? :confused: :( :eek:

I completely agree - what is going on!!?? :confused: :( :eek:
Look out for FF schemes, points, redemption, lounge access, et al by the likes of SpiceJet, GoIndigo... hehehe

I thought you already did??

Not quite. I have bought ORD-SIN on AA. Because of that they AA me reserve SIN-BOM and put it on "hold" - and it was (is) a good old-fashioned hold for almost 2 weeks, not the 24 hour kind. So it was all, set but I still have to pay and thus free to do something else. (I was arranging BOM-DEL on my own and those details weren't decided yet.)

This was convenient for me, but the fare was in the same ball park as others, give or take a few dollars. Maybe a little risky because the flights haven't even started yet. :)

So in a way, I am back to square 1 on SIN-DEL, trying to figure out what would be safe and inexpensive. I started a separate thread, please post your advice there.

I dont think Kingfisher will get wound up but it is probably a necessary move by the fuel companies to get Mallya to make a significant payment to them sooner rather than later.

I dont think Kingfisher will get wound up but it is probably a necessary move by the fuel companies to get Mallya to make a significant payment to them sooner rather than later.Precisely.

Not paying up fuel bills sounds like risky business by an airline ? That can go pair-shaped pretty quickly...

Not paying up fuel bills sounds like risky business by an airline ? That can go pair-shaped pretty quickly...Not in India! ;)

(Mallya is an Indian government minister at present also...)

Not paying up fuel bills sounds like risky business by an airline ? That can go pair-shaped pretty quickly...
Not really. Normally, this litigation will drag on for nothing less than 5 years, during which time even more fuel would have been supplied, millionaires made on all sides [both above and under the table ;-)], and the proverbial "...happily, ever after.". But there is a slight element of risk, particularly when one of the parties (esp here, the plaintiff) is a quasi-governmental organisation. Also consider that Mallya's business interests involve/showcase booze and women (remember the hugely popular KF calendars), which may be considered highly IMMORAL ;-) by many in the establishment, thereby giving them more fuel to add to the fire !

Not in India! ;)

(Mallya is an Indian government minister at present also...)

Huh? He most certainly is not ... unless I've been living under a rock.

http://en.wikipedia.org/wiki/Vijay_Mallya#Political_career

Huh? He most certainly is not ... unless I've been living under a rock.

http://en.wikipedia.org/wiki/Vijay_Mallya#Political_careerI thought he was, but don't pay much attention to such things...obviously there was something to it, as it was mentioned in your link... ;)

Oh well, nothing here, move on now folks! :p

Hey, wait a minute - I guess he is a member of the Rajya Sabha - look at the top right-hand corner of the page you mentioned!

"Occupation Member of Parliament of:
Rajya Sabha"

Also:

http://www.politicalfriendster.com/showPerson.php?id=4829&name=Dr-Vijay-Mallya

http://www.vijay.com/Mallya.htm

http://ekikrat.in/Vijay-Mallya

...and others...

(So you *have* been living under a rock - is that what you call SFO? :p Wait - Alcatraz is "The Rock", but surely you do not reside under it?? ;) )

Another couple years more of this, VJM might pull the plug on the airline by severely downsizing it. VJM's big mistake was to assume that a full service airline can survive with so many LCCs. Now most of Kingfisher's flights have become "Red", adding to the losses.

Kingfisher should be like US carriers, have only 8 seats up front, and give upgrades to all elite members or sell it at the airport for domestic flights of 1.5 hours or more.

Another couple years more of this, VJM might pull the plug on the airline by severely downsizing it. VJM's big mistake was to assume that a full service airline can survive with so many LCCs. Now most of Kingfisher's flights have become "Red", adding to the losses.Well, hopefully he still keeps some business configs!

Kingfisher should be like US carriers, have only 8 seats up front, and give upgrades to all elite members or sell it at the airport for domestic flights of 1.5 hours or more.I haven't flown in biz on Kingfisher, but I intend to soon - Jet is reducing all their flights to Jet Konnect ones!

Has anyone actually considered that Kingfisher could be a huge tax avoidence scam by Vijay Mallya.

by showing huge losses on Kingfisher accounts he does not pay tax as no one gets taxed on losses?

it would not surprise me because if i was owning Kingfisher and losing huge amount of money and having winding up orders against me, i would be close to committing suicide not living a jet set lifestyle travelling around the globe with my F1 team!

food for thought?

Has anyone actually considered that Kingfisher could be a huge tax avoidence scam by Vijay Mallya.

by showing huge losses on Kingfisher accounts he does not pay tax as no one gets taxed on losses?

it would not surprise me because if i was owning Kingfisher and losing huge amount of money and having winding up orders against me, i would be close to committing suicide not living a jet set lifestyle travelling around the globe with my F1 team!

food for thought?
Unfortunately, that doesn't work in India. Tax is entity based, so even if KF is heavily loss making, UB Spirits pays taxes - there is no setoff. Ask the accountant ;-)