Kingfisher Airlines Pvt Ltd
Owner Mr. Vijay Mallya - The very Flamboyant Chairman
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| An Airline with so much prominence and falmbouyance could not last beyound the seven years Kingfisher Airline as an Airline gave many a competetor sleepless night while it was in Operations. But the sad part of the airline was that it did not pay the salaries of its staff for a period of 02yrs. There were many a suicide and death reported. It also rendered jobless to many. |
The Rise and Fall of Kingfisher Airlines
May 9, 2005: Kingfisher Airlines’ maiden flight takes off. Alex Wilcox, CEO of Kingfisher, said the airline would not adopt the low-cost, no-frills model but chart the middle course.
June 30, 2005: Becomes the first and only Indian carrier to order the Airbus A380. Orders five A380s (cancelled subsequently), five A350-800s and five A330-200s for over $3 billion.
May 8, 2007: Vijay Mallya eyes stake in Air Deccan.
June 2, 2007: Vijay Mallya buys over the crisis-ridden no-frills Air Deccan owned by Capt Gopinath in 2007. The merged group plans to save up to Rs. 300 crore on costs with a combined fleet strength of 71 aircraft. Through a reverse merger, Kingfisher Airlines became Air Deccan and once the entire acquisition was completes with necessary approvals from the regulator SEBI in place, Mr. Mallya quickly changed the airline's name back to Kingfisher Airlines in 2008.
August 31, 2009: Kingfisher’s board approves a resolution to raise $100 million (nearly Rs 487.8 crore) by various instruments including Global Depository Receipts (GDRs). This was in addition to in addition to the decision for induction of capital for an amount not exceeding Rs 500 crore by a rights issue of equity shares taken on July 28.
November 4, 2009: Kingfisher reports a net loss of Rs 418.77 crore during the second quarter of the fiscal. Its income from operations also declines by 13.6 per cent during the quarter compared to the same period last year.
In view of the huge losses and capacity reduction, Kingfisher decides to lay off nearly 100 pilots. The air-carrier later hiked fuel surcharges.
March 15, 2010: Despite operating losses, Kingfisher announces flight to Europe.
September 30, 2010: Kingfisher Airlines appoints Sanjay Aggarwal as CEO. Mr. Aggarwal is the former CEO of SpiceJet. Mr. Mallya also announced that staff would be pruned.
November 25, 2010: Kingfisher Airlines Board approves debt recast package. The airline’s debt stood at over Rs 6,000 crore.
September 15, 2011: The company’s auditors submit an annual report for 2010-11 which pointed out that the loss-making air carrier’s accumulated losses at the end of the financial year were more than 50 per cent of its net worth.
September 28, 2011: Vijay Mallya decides to exit low-cost business.
November 13, 2011: The airline, with a debt of around Rs 6,500 crore, looks at cutting costs and taking several steps to face the challenging times.
November 15, 2011: Kingfisher Airlines loss doubles to Rs.469 crore for the September 2011 quarter.
November 20, 2011: Vayalar Ravi says that the Centre has no plan for any package to salvage the airlines.
December 1, 2011: Mumbai International Airport Pvt. Ltd. sends a notice to the cash-strapped airlines to pay the Rs.90-crore outstanding dues.
December 9, 2011: The Service Tax Department freezes 11 accounts of Kingfisher Airlines for non-payment of Rs.70 crore.
December 14, 2011: Govt de-freezes bank accounts after part-payment of the service tax dues.
February 16, 2012: Kingfisher Airlines, reports a loss of Rs.444.26 crore at the third quarter results for 2011-12.
February 20, 2012: Kingfisher Airlines cancels several of its flights after reports of the Income-Tax Department freezing some of its accounts.
February 23, 2012: The carrier operates a truncated schedule and faced the prospect of losing a number of prime flying slots.
March 8, 2012: Another blow to Kingfisher with International Air Transport Association asking travel agents to immediately stop booking tickets on the private airline's behalf for failure in settling dues since February.
March 12, 2012: Furthertrouble, as employees protest delays in salary payment.
March 14, 2012: Vijay Amritraj resigns from Kingfisher board.
March 15, 2012: Kingfisher announces curtailing of its international operations.
March 17, 2012: Revenue dept. threatens to take Kingfisher Airlines to court over alleged service tax evasion, saying the company has not deposited taxes it collected from travellers.
March 19, 2012: Anil Kumar Ganguly, the only independent director on the board of Kingfisher Airlines, quits the company, leaving it with only three board members.
March 20, 2012: Mr. Mallya explains the airline's position to the Directorate-General of Civil Aviation (DGCA) following summons and says that it is suspending all its international operations.
March 27, 2012: Burdened by a debt of over Rs.7,000 crore, the airline suspends operations from Kolkata, Hyderabad, Patna, Lucknow, Thiruvananthapuram and Bhubaneshwar. The airline operated about 120 daily flights by this date, down from more than 400 earlier.
March 28, 2012: The airlines inducts three independent directors in its board to comply with the listing norms.
April 2, 2012: The company’s staff threaten to go on strike, demanding payment of salary dues.
April 3, 2012: The standoff ends with the protestors accepting the assurance given by Mallya.
April 9, 2012: Employees, including pilots and engineers, receive salaries after a delay of nearly four months.
May 11, 2012: Kingfisher flights cancelled after the pilots report sick to protest non-payment of salaries.
June 27, 2012: Kingfisher shares tumble over 13% following reports that 34 aircraft have been possessed due to non-payment of lease rentals.
July 5, 2012: A 15-day time was given by the company’s lenders to come up with a plan to improve its operations. The airlines had a total outstanding debt of around Rs.7,500 crore to a consortium of 17 banks led by State Bank of India (SBI).
July 14, 2012: Pilots go on strike against the non-payment of wages for almost five months.
July 18, 2012: Minister for Civil Aviation Ajit Singh rules out bailout of Kingfisher Airlines.
August 8, 2012: A section of its employees strike and 15 flights were cancelled.
August 18, 2012: A section of pilots of the near-bankrupt airlines go on strike, second time in a month, demanding immediate payment of March salaries, leading to cancellation of seven flights from Mumbai.
September 4, 2012: Chairman Vijay Mallya gives guarantees worth Rs. 5,904 crore for the carrier’s loans and other liabilities in 2011-12, but did not get any commission for the same because of lenders’ opposition.
September 6, 2012: A section of the company’s engineers go on strike demanding payment of salaries. The airlines’ lenders ask Mallya to spell out the airline’s revival plan by the end of the month.
September 9, 2012: Pilots from both Delhi and Mumbai threaten to strike work as part of mass agitation for immediate disbursal of salaries.
September 26, 2012: Mr. Mallya announces that the carrier was in talks with overseas airlines for investment.
September 28, 2012: Turning down a request for Rs.200-crore working loan by Kingfisher, the State Bank of India-led lenders consortium, asks SBI Capitals to chalk out a fresh revival plan for the cash-strapped airline in the next 2-3 weeks.
October 1, 2012: Unpaid staff protest in Delhi, Mumbai and other airports and almost all of Kingfisher’s flights from all stations were cancelled as engineers did not certify the planes to fly.
October 2, 2012: The carrier declared partial lock-out following a strike by a section of its employees.
October 4, 2012: Uncertainty continues over Kingfisher resuming operations.
October 5, 2012: Banks give lifeline to the carrier, agreeing to release Rs.60 crore locked in an escrow account to pay employees’ salaries.
October 6, 2012: DGCA issues show-cause notice to Kingfisher asking why its flying permit should not be suspended or cancelled.
October 9, 2012: DGCA asks Kingfisher to stop ticket bookings, following reports that the airline planned to resume normal operations from October 13.
October 12, 2012: Commercial banks which had lent over Rs.7,000 crore to the airlines, closely monitor the situation and tighten the noose around its promoter to protect their interest.
The airlines further extends its partial lock-out until October 20 as it could not persuade the striking employees to join back duty without getting any salary.
A non-bailable arrest warrant issued against Vijay Mallya, and four other directors for non-appearance in cases relating to bouncing of cheques issued in favour of GMR Hyderabad International Airport Limited (GHIAL) towards user charges.
October 20, 2012: The airline’s permit got suspended and experts said Vijay Mallya’s United Breweries group needs to pump in over Rs. 3,000 crore to get Kingfisher airborne again as no foreign operator would come forward to invest in the airline in its present state.
October 24, 2012: Employees reject the management’s fresh offer and demand payment of four months’ backlog in lumpsum before October 26.
October 25, 2012: Engineers, technicians and pilots call off their 26-day strike and agreed to join work immediately by accepting the management’s offer of disbursal of three months salary.
October 30, 2012: Vijay Mallya meets Civil Aviation Secretary K.N. Srivastava on the airlines’ revival plan and its intention to resume operations as soon as possible.
Source - The Hindu
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