THE KING OF GOOD TIMES

BAD

Diageo

United Spirits Ltd

United Breweries

Brewery Fertilizers Engeneering IT Airline (Kingfisher) Formula 1 IPL

THE STRUCTURE

INCEPTION OF KINGFISHER AIRLINE

Incorporated in 2003 by Vijay Malya

Started its operations in 2005

The name was changed to Kingfisher Airlines in the year 2008

The only one to offer premium first class service on domestic routes.

Kingfisher Airlines owned 67 aircraft on lease

THE FAULTY BUSINESS MODEL

Low cost model

Airplanes on lease

Wrong forecasting about DGCA

THE MANAGEMENT , WHO FAILED TO MANAGE

Name DesignationA K Ravi Nedungadi CFO & PresidentA Raghunathan Chief Financial OfficerBhanumohan Kaila Vice PresidentBharath Raghavan SecretaryHitesh Patel Executive Vice PresidentInderpreet Singh ManagerMagunta Srinivasulu Reddy Addnl.Non Exe.Independent DirectorMurali Ramachandran Senior Vice PresidentNaveen Chawla Vice PresidentRajesh Verma Executive Vice PresidentRonald Nagar Senior Vice PresidentSamarjeet Singh Cheema Deputy General ManagerSourav Sinha Senior Vice PresidentSundaresan Nagarajan Head

Vijay Mallya CEO, Chairman & Managing Director

The Rise of a fall

2007-2009

Kingfisher Airlines’ mai

den 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.

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.

Vijay Mallya eyes stake in Air

Deccan.

KINGFISHER AND AIR DECCAN MERGER

2010-11

Kingfisher announces flight to Europe.

Appoints SANJAY Aggrawal as CEO

Mr. Mallaya announced that staff would be pruned.

The Board approves

debt recast package. The airlines debt stood over Rs. 6000

crore.

Losses are more than 50% than it net worth.

Mallya decided to

exit low cost business

Losses double to

Rs. 469 crore for

september 2011

quarter.

Got notice from

MIAL Accounts freezed

2012

Mumbai airport send a notice to

the cash strapped airlines to pay the Rs 90

crore outstanding dues.

Service tax department freezes 11

accounts of KF airlines for non payment of Rs.

70 crore.

Govt. de-freezes account after part payment.

Reports a loss of Rs 444.26 crore for 3rd quarter

2011-12

Cancels flights after report of

income-tax department.

Carrier operates a truncated schedule and faced the prospect of losing number of prime

slots.

Biggest blow to KF airlines as international air transport association asking travel agents to immediately stop booking .

Employees protest

Vijay Amritraj and Anil Kumar Ganguly resign from board.

Announces curtailing of its international operations.

The new kings (director) of kingfisher Manmohan Singh Kapur, Lalit Bhasin and Shrikant Ruparel.

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).

Pilots went on strike against the non-payment of wages for almost five months.

Minister for Civil Aviation Ajit Singh ruled out bailout of Kingfisher

Airlines.

A section of pilots of the near-bankrupt airlines went on strike, second

time in a month, demanding immediate

payment of March salaries

Chairman Vijay Mallya gives guarantees worth Rs. 5,904 crore for the

carrier’s loans and other liabilities in 2011-12

A section of the company’s engineers alo

went on strike demanding payment of salaries

Pilots from both Delhi and Mumbai threaten to strike

work as part of mass agitation for immediate

disbursal of salaries

Mr. Mallya announced that the carrier was in talks with

overseas airlines for investment

SBI turned down Rs. 200-crore working loan by kingfisher and asked

kingfisher to chalk out a revival plan

Kingfisher’s flights from all stations were cancelled as

engineers did not certify the planes to fly

The carrier declared partial lockout due to continued

strikes

After lot of negotiations

banks gave lifeline to the carrier,

agreeing to release Rs.60 crore locked

in an escrow account to pay

employees’ salaries

DGCA issued show-cause notice to

Kingfisher asking why its flying permit

should not be suspended or

cancelled and also asked airlines to

stop booking tickets

A non-bailable arrest

warrant issued against Vijay Mallya,

and four other directors for non-

appearance in cases relating to bouncing

of cheques

The airline’s permit got suspended and no foreign operator

came forward to invest in the airline in its present state

The company’s Q2 loss widened to Rs. 754

crore, as compared to a net loss of Rs.469 crore

in the corresponding period in the previous

year.

Mr. Mallya loses Royal Challenge when

international liquor major Diageo

announced its decision to acquire 53.4 per cent

stake in Vijay Mallya-owned United Spirits

Ltd. (USL) for Rs.11,166.50 crore.

The Airlines submits an interim revival plan to

the DGCA, seeking approval to take to the skies once again after

being grounded for almost three months

The carrier loss its flying licencse as the DGCA

refused to renew its Air Operator Permit (AOP).

2013

KINGFISHER FLIES INTO MORE TROUBLE

Employee’s legal action for recovery of salary

dues

Threatening from vendors, service providers

and lenders for dues

Three senior Kingfisher executives quit

Civil Aviation Minister ordered to allot domestics slots of Kingfisher to other flights.

LICENSE RENEWAL FROM DGCA

To clear all dues before seeking license renewal Mallya says he can’t pay due salaries

SUMMONS TO MALLYA ON I-T COMPLAINT

The Special Court for Economic Offences, Bangalore, issued

summons to the Vijay Mallya on a criminal case filed by the

Income-Tax Department for not remitting to the government tax

deducted at source.

2014

Kingfisher employees

intensify demands(Jan 7th )

Kingfisher reports loss of Rs. 822.42 crore (Feb 14th)

CEO quits( Feb 17th)

Mallya appears before

court(July 31st)

CBI issues inquiry against

Kingfisher and IDBI

bank(August 9th)

PNB issues wilful

defaulter(Aug 21st)

United Bank of India issues wilful defaulter Supreme Court Challenge

The United Bank of India first decalred Mallya a wilful defaulter

in May 2014 but in December 2014 Mallya convinced calcutta High Court that the process of declaring him so, was faulty.

Diageo, initiated an enquiry into the loans given by United Spirits to UB Group companies to clean-up of the company's finances, which showed a net loss of Rs 4,488 crore in FY14

Earlier this year Heinken was looking for larger stake in UB Group

Kingfisher informed Mr Lallit Bhasin, Director of the company , resigned

USL asked Mallya to step down as Chairmen of the group due to “various improprieties and legal violations”

SUMMARY