Monday 25 March 2013

Kingfisher Airlines employees likely to get 8 months salary dues soon




 Kingfisher Airlines promoter Vijay Mallya has assured his employees that they would be paid their salary dues of eight months soon but did not give a time-line, airline staffers said today.



The assurance came a day after a section of employees threatened to disrupt the matches of Royal Challenger Bangalore ( RCB), owned by Mallya, in the upcoming Indian Premier League ( IPL).





Kingfisher Airlines flying slots withdrawn: Govt
Financial Express
Govt spelled out more trouble for the beleaguered former aviation czar Vijay Mallya today. Government announced today the withdrawal of all domestic and international flying slots of the grounded Kingfisher Airlines with immediate effect -what is more ...
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Kingfisher Airlines loses foreign rights, domestic airport slots
Times of India
NEW DELHI: In a blow to grounded Kingfisher Airlines's desire to fly again, the government on Monday withdrew its international flying rights along with slots at Indian airports with immediate effect. Aviation minister Ajit Singh has ordered that KFA's ...
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Kingfisher Airlines to Lose All Flight Slots
Wall Street Journal (India)
MUMBAI--India's government has decided to withdraw all local and overseas flight slots allotted toKingfisher Airlines Ltd. as the carrier, grounded since Oct. 1, hasn't been using them, the aviation ministry said Monday. Kingfisher's permits to ...
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Government withdraws all international flying rights and domestic slots from ...
Economic Times
NEW DELHI: Kingfisher Airlines seems to have reached the end of the road with the government withdrawing all international flying rights and domestic slots from the carrier, terminating all hopes for the loss-laden airline to make a possible comeback.
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Economic Times
Kingfisher loses local slots, global flying rights
Livemint
Mumbai: India has scrapped international flying rights and domestic slots of groundedKingfisher Airlines Ltd, the aviation ministry said on Monday, which could make its planned, phased restart even more difficult. “The Airports Authority of India has ...
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Livemint
Kingfisher Airlines' flying slots withdrawn, to go to other airlines
Business Today
Kingfisher's flying licence was suspended October 20 last year, following a strike by employees that crippled the carrier's operations. The licence officially expired December 31, 2012, while a revival plan the airline submitted to the Directorate ...
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Business Today
SBI warns of stringent action against Kingfisher Airlines
Business Standard
State Bank of India indicated on Monday that it was taking all steps to recover the debts from Kingfisher Airline in which its loan size was Rs 1,600 crore while the total exposure of all the banks to the airline was Rs 6,000 crore. “We have already ...
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Business Standard
Flying slots to Kingfisher withdrawn
The Hindu
Under the said rights, Kingfisher Airlines was allowed to fly the sky of eight countries, namely, Bangladesh (14 services a week), Hong Kong (14 services a week), Nepal (7 services a week), Singapore (7 services a week), Sri Lanka (14 services a week ...
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The Hindu
Kingfisher RIP: Airport slots to go to rivals
Firstpost
New Delhi: Had the Government been sensitive to the needs of other Indian airlines, it would have taken away international slots of Kingfisher Airlines almost an year back when Kingfisher stopped international operations. This would have freed up as ...
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Firstpost
Indian Govt withdraws domestic, international traffic rights from Kingfisher ...
National Turk English
He said under the international bilateral traffic rights, Kingfisher Airlines were allowed to operate flights to eight countries namely Bangladesh (14 services per week), Hong Kong (14 services per week), Nepal (7 services per week), Singapore (7 ...
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Friday 22 March 2013

Kingfisher Airlines’ chairman Dr Vijay Mallya to give Kingfisher Airline's revival plan next week




Kingfisher Airlines’ chairman Dr Vijay Mallya has committed to pay pending salaries to employees soon. In a meeting held last night, he told engineers and pilots that he has already informed the finance ministry about it, say exclusive sources.

Kingfisher Airlines ' chairman Vijay Mallya has committed to pay pending salaries to employees soon. In a meeting held last night, he told engineers and pilots that he has already informed the finance ministry about it, say exclusive sources.

Mallya re-assured that he will personally submit the long pending revival plan to the airport regulator by next week. This statement comes after civil aviation minister Ajit Singh informed media that he is yet to receive any survival plan from the airline.

It is also learnt that Mallya will pay employee dues from Diageo deal proceeds. In November 2012, United Spirits, a subsidiary of the UB Group sold 53.4 percent stake to UK-based Diageo for Rs 11,1665 crore in a multi-structured deal.

However, that time Mallya had clearly said that the sell out was not aimed to save the carrier and no funds from this deal will be used for reviving the airline.

Shares of the company are up around 2 percent to Rs 8.95.

Mallya to give Kingfisher Airline's revival plan next week
Moneycontrol.com
Kingfisher Airlines' chairman Vijay Mallya has committed to pay pending salaries to employees soon. In a meeting held last night, he told engineers and pilots that he has already informed the finance ministry about it, say exclusive sources. Source ...
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Moneycontrol.com
Kingfisher Airlines yet to submit revival plan: Ajit Singh
Moneycontrol.com
Kingfisher Airlines has not yet submitted revival plan to resume operations, Civil Aviation Minister Ajit Singh told reporters today. The airline has been asked by the Directorate General of Civil Aviation to submit a comprehensive report suggesting ...
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Moneycontrol.com
Kingfisher Airlines has not submitted revival plan so far: Aviation Minister
NDTV
New Delhi: The government today said Kingfisher Airlines has not yet given a revival plan to restart operations, even as employees are aggrieved over non-payment of salaries. "All they have to do is satisfy DGCA that they can do safe operation and ...
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Thursday 21 March 2013

Flights are Closed Not Kingfisher Airlines Ltd Employees threaten to disrupt IPL matches




If Mr Gopal Goyal Kanda
Is In Jain jst for 2  Murder
Why  
Mr Sahara n Dr Mallaya are roaming
Free ? 



Frustrated over not getting salary for last 10 months, Kingfisher Airlines Ltd employees today asked the government to prosecute promoter Dr Vijay Mallya and threatened to disrupt IPL matches.



"If Gopal Kanda, promoter of MDLR airlines, can be prosecuted for suicide of an employee why can't the government prosecute Vijay Mallya for suicide of the family member of his employees," said Santosh Gautam, president of Kingfisher Airlines Maintenance Association.



They also threatened to disrupt IPL matches of the Royal Challenger Bangalore (RCB), the team owned by Mr Mallya.

"Last time, when Formula 1 race was being organised here, afraid of our protests, Kingfisher management paid our salary of one month and assured to pay the dues in instalments but they have failed to keep their promises. This time, we will protest outside the venue wherever RCB team plays their matches," said S C Mishra, another employee.

The protesting employees have urged RCB players to boycott Dr Mallya's team. They have also asked the Board of Control for Cricket in India (BCCI) not to allow RCB to participate in the upcoming Indian Premier League (IPL).

The employees asked the government to amend labour laws making non-payment of salaries a criminal offence and said "the Supreme Court should take suo motu cognizance of our matter in specific and in general for overall reforms required for the benefit of working class."

Seeking an early intervention on the issue, the employees have written letters to the President, the Prime Minister, the Chief Justice of India, UPA chairperson Sonia Gandhi, Civil Aviation Minister Ajit Singh and the Directorate General of Civil Aviation Arun Mishra.



Questioning Dr Mallya's intention to run the Airlines, the employees said, "Enough is enough. We want a clear reply from him whether he wants to run the Airlines or wants to close it down. If you want to close it, then please pay our dues."

"Our patience now has run out and we would go to any extent to get justice," said a Kingfisher employee, who did not want to be named.

The Dr Vijay Mallya-owned cash-strapped airline is grounded since October last year following unrest by employees over non-payment of salaries and subsequent disruption in its flight schedules.

The Air Operator's Permit, or the flying licence, of the airline expired on December 31, 2012 and the civil aviation regulator DGCA had refused to renew it, saying they would have to first clear the dues of their employees and other stakeholders.

Kingfisher Airlines owes a loan of over Rs. 70,000 crore to the consortium of 17 banks, led by the State Bank of India, which had on Monday said that it was taking all steps to recover the loan provided to the grounded carrier.

"We are blazing all guns and taking all steps to recover (of Kingfisher loans)," SBI chairman Pratip Chaudhuri had said.

Also, Finance Minister P Chidambaram had asked the banks to take firm steps to recover loans saying that the country cannot afford to have "affluent promoters and sick companies". 



Vijay Mallya, Kingfisher, Kingfisher Airlines, DGCA, Kingfisher employees




Kingfisher may need approval from 17 banks to fly again

Jet Airways seeks Kingfisher Airlines overseas routes
Economic Times
A source said Goyal has put in a written request to the government seeking more foreign routes for Jet Airways. Some of the routes are now available after the ministry cancelled Kingfisher's flying licence. The move to seek more routes is significant ...
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Economic Times
Kingfisher Airlines employees threaten to disrupt IPL matches
NDTV
New Delhi: Frustrated over not getting salary for last 10 months, Kingfisher Airlines employees today asked the government to prosecute promoter Vijay Mallya and threatened to disrupt IPL matches. "If Gopal Kanda, promoter of MDLR airlines, can be ...
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Kingfisher may need approval from 17 banks to fly again
Livemint
New Delhi: Kingfisher Airlines Ltd won't get its flying licence back until it settles repayment issues with all creditors, including banks, the government told Parliament on Wednesday. In effect, Vijay Mallya's airline may have to get no-objection ...
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Vijay Mallya Criticises SBI Chief's Talks on Kingfisher Airlines Loan Recovery
IBTimes India
Kingfisher Airlines Chairman Vijay Mallya took a dig at State Bank of India (SBI) Chief Pratip Chaudhuri for his constant interaction with the media over the bank's loan recovery from the grounded airline. Vijay Mallya. The liquor baron burst out at ...
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Livemint
Kingfisher CEO to meet DGCA to submit revival plan soon: Vijay Mallya
NDTV
Microsoft probed over foreign bribery: Report. Beleaguered Kingfisher Airlines is likely to meet aviation regulator Director General of Civil Aviation (DGCA) soon to submit its plan to restart operations, promoter Vijay Mallya told NDTV today. "The ...
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Saturday 2 March 2013

Dr Vijay Mallya's United Breweries auditors fear Kingfisher Airlines exposure





Dr Vijay Mallya-led UB Group company United Breweries Holdings Ltd is in the eye of a storm.
Auditors of United Breweries Holdings Ltd, the holding company of Vijay Mallya-led UB Group, have raised concerns over its significant financial exposure of Rs 13,500 crore to the grounded carrier Kingfisher Airlines.
UBHL has made "no provision in the accounts for the probable loss that may arise on account of financial exposures (to Kingfisher)," auditors have said.
In their 'limited review report' for the October-December quarter financial results of UBHL, the auditors have said the entity has financial exposures to the tune of Rs 13,538.12 crore to Kingfisher, which is "under severe financial constraints and its operating licence stands suspended".
The auditors, Vishnu Ram & Co, said that certain aircraft lessors and bankers have invoked corporate guarantees given by the company on behalf of KFA. The total amount invoked and outstanding as on December 31, 2012, is Rs 964.79 crore.
UBHL's financial exposure on account of Kingfisher Airlines as on December 31, 2012, include investment in equity of Rs 2,109.31 crore, guarantees given to banks Rs 6,631.35 crore, guarantees to aircraft lessors Rs 2,135.6 crore, advances given Rs 2,271.64 crore, and interest, commission, logo fees receivable Rs 390.22 crore.
United Breweries Holdings Ltd) is the holding firm for Vijay Mallya-led UB group, whose companies include United Breweries Ltd (UBL), United Spirits Ltd, McDowell Holdings, Mangalore Chemicals and Fertilisers, UB Engineering and Kingfisher Airlines (KFA).
For the third quarter ended December 31, 2012, Kingfisher yesterday reported a loss of Rs 755.17 crore against a loss of Rs 444.26 crore in the year-ago quarter.



Sahara Airlines

India Capital Market Regulator SEBI Cautions Investors from Dealing with Subrata Roy Sahara, Issues Public Notice
India Capital Market Regulator SEBI Cautions Investors from Dealing with Subrata Roy Sahara, Issues Public Notice Taking head-on, the might and influence of Subrata Roy the 

When irresistible force collides with an immovable object, something has to give. In the coming weeks, we will know whether the political heft of Subrata Roy of the Sahara Group can save him from the combined might of two of India’s most powerful regulators – the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi).

The short message from the two regulators to Sahara is simple: return the money to investors and depositors and get out. Your money-raising business is risky for investors.

Regulators being regulators, that’s not the actual language used, but it’s a plain-English translation of their stance.

The Sahara Group – which is into various kinds of barely-legal fund-raising schemes that have shocked the regulators – was asked three years ago by the RBI to wind down the deposit-taking operations of Sahara India Financial Corporation (SIFC), a residuary non-banking finance company. It was forced to stop accepting deposits maturing after June 30, 2011, and has been asked to return all remaining deposits by June 30, 2015. But it did not do so – as we shall see later.

Now, Sebi, in an order dated June 23, has ordered two other Sahara companies – Sahara  Commodity Services Corporation and Sahara Housing Investment Corporation (SHIC) – to return the money collected through the issue of optionally fully convertible debentures (OFCDs) from investors with 15% interest. SHIC was formerly called Sahara India Real Estate Corporation (SIREC).

The two companies, which had minuscule net worth of a few lakh rupees when they started passing the hat around to investors in 2008 and 2009, had the gumption to target a collection of a humongous Rs 40,000 crore – yes, Rs 40,000 crore – for vague purposes before Sebi stepped in. And, curiously for an OFCD issue involving 6.6 million investors, the issues were to be kept permanently open. Something unheard of in the capital market. OFCDs are debentures which investors can convert into shares at their option.

According to a calculation by Business Standard, the amount to be disgorged following the Sebi order would be in excess of Rs 4,383 core. The order is subject to confirmation by the Supreme Court.

The Sebi order also bars Subrata Roy and his aides from accessing the capital market till the money is returned.

Among other things, Sebi has found that the two companies did not have proper lists of investors, were raising money from the public by pretending it was a private placement of shares when it was actually a public offer, had filed red herring prospectuses with the Registrar of Companies with the deliberate idea of excluding Sebi’s jurisdiction, and were planning to operate bank accounts of different companies as though they were one. In short, it has accused Sahara of a potential failure of fiduciary responsibility.

Sebastian D'SOUZA/AFP
If we connect the dots, the fact that the RBI had asked SIFC to wind down and return the deposits ties in well with the fact that two other Sahara companies were trying to raise ultra-large amounts of money on various pretexts. It is not difficult to imagine that the money could flow from these two companies to the one under pressure from the RBI.

The Sebi order, written by wholetime member KM Abraham, hints at the possibility of the Sahara Group running a Ponzi scheme. A Ponzi scheme is one where the operator relies on new investors to pay off older investors. Bernie Madoff got 150 years in prison for running a Ponzi scheme in the US.

Was (or is) Sahara running one? Sebi doesn’t say so. The reference to Ponzi comes in this context. When Sahara’s legal eagles were given a chance to air their views on why the two companies should not be asked to return the money collected to investors, they pointed out to Sebi that there were no complaints from investors at all.

To which Abraham says: “Most major ‘Ponzi’ schemes in the financial markets, which have finally blown up in the face of millions of unsuspecting investors, have historically never been accompanied by a gradual build up of investor complaints. But when financial catastrophes have indeed finally erupted, they do so with little warning and lead to major collapses in the financial markets with disastrous consequences to investors.”

Ponzi or not, both the RBI and Sebi are clearly worried about the systemic risks of allowing Subrata Roy to run his financial schemes.

Two things are clear: for whatever reason, Roy seems to need a lot of money pronto; and there are enough gullible investors out there who don’t check to see whether companies raising money are even allowed to do so. Which is why the regulators have taken pre-emptive steps.

But from here on the battle lines get blurred. Once the Supreme Court confirms the Sebi order, the man who counts many top Uttar Pradesh politicians (Mulayam Singh, among them), showbiz celebrities (Amitabh Bachchan and many Bollywood stars) and the cricketing fraternity (he is the official sponsor of the Indian cricket team and owner of the Pune IPL franchise) as his friends will need all the support they can give.

But political clout has not worked so far. In the growing climate of public anger against corruption and official wrongdoing, the courts and regulators have found the courage to plod on against people tilting against the law. Subrata Roy’s companies are up against it precisely because of this climate where an A Raja or Kanimozhi cannot get bail easily.

Pushed to the wall by the RBI, Roy’s companies have been raising money through various means. But the RBI struck back in January, when it released notices in newspapers saying they were not supposed to raise money. The notice said that of the three Sahara companies registered with it, one (SIFC) had been asked to wind up its deposit taking business, and the other two – Sahara India Corp Investment and Sahara India Infrastructure Development – had no business raising deposits.

But thanks to the wide enough public recognition the Sahara Group enjoys through its para-banking arm and association with two Indian passions – cricket and films – money was being raised anyway in the name of the Sahara Parivar.

This forced the RBI to warn that “it does not guarantee the repayment of deposits accepted by SIFC or any other company in that group.” Strong words from a regulator.

But the war is far from over. While Abraham has delivered his order, by a curious coincidence, he has complained to Prime Minister Manmohan Singh that tax officials are harassing him at the instigation of some officials in the finance ministry. In his letter, he has also alleged that similar treatment was being meted out to a colleague, MS Saboo. Both Saboo and Abraham apparently bought apartments in Mumbai in 2009.

Equally curiously, neither Abraham nor Saboo has been given an extension by the finance ministry though both were eligible. Abraham retires as Sebi member on July 30 this year. Sebi’s previous Chairman, CB Bhave, who too was not given an extension after being widely presumed to have the finance ministry’s nod, is also being probed by some agencies.

But his parting kick to the Sahara Group is reminder enough of the diligence he has brought to investigating the affairs of a controversial group with friends in high places.


Kingfisher Airlines Loses Rights To Fly To Dubai
The carrier has lost its traffic rights allowing it to fly 21 times a week into the UAE.

India’s Kingfisher Airlines has ceased serving the UAE after the Indian Ministry of Civil Aviation withdrew the carrier’s international flying rights and domestic slots on Tuesday.

The airline had been allocated traffic rights by India’s aviation governing body around five years ago to fly 21 times a week into Dubai.

A statement issued by the ministry said that Shri Ajit Singh, minister of civil aviation, “has decided to withdraw all International Bilateral Traffic Rights allocated to Kingfisher Airlines with immediate effect”.

As well as Dubai, the carrier will no longer service Bangladesh, Hong Kong, Nepal, Singapore, Sri Lanka, Thailand and the UK. The traffic rights will be handed over to other Indian carriers.

“These international traffic rights have been withdrawn from Kingfisher Airlines on account of non-utilisation by the airlines,” the statement read.

“This would give additional availability of approximately 25,000 seats per week for use by other Indian carriers to these eight countries, some of which are much in demand by these carriers.”

The revoking of its international flying rights is the latest blow to the carrier after it lost its license at the end of last year.

The airline has been grounded since October 1 following staff protests and refusal of banks to grant fresh loans.

The carrier has been in discussion with various investors, including Gulf carriers, for equity investments but so far nothing has materialised.

Kingfisher, which launched in 2005, had been due to join the Oneworld alliance, but its membership was put on hold.
















Vijay Mallya's United Breweries auditors fear Kingfisher Airlines exposure
Indian Express
Auditors of United Breweries Holdings Ltd, the holding company of Vijay Mallya-led UB Group, have raised concerns over its significant financial exposure of Rs 13,500 crore to the grounded carrierKingfisher Airlines. UBHL has made "no provision in the ...
See all stories on this topic »
Kingfisher Airlines reports Dec quarter loss of Rs.755 crore
Livemint
Kingfisher Airlines has held creditors and employees who have not been paid salaries for several months at bay by holding out the promise of a revival, infusion of funds by promoters, and the entry of a foreign investor. Unfortunately, none of these ...
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Livemint
Grounded Kingfisher Airlines posts Rs 755 crore loss in Q3
Times of India
NEW DELHI: Grounded Kingfisher Airlines (KFA) on Tuesday reported a loss of Rs 755 crore in the October-December, 2012, period - the first quarter when it did not fly. The airline's auditors, however, said in their report that the Q3 loss would have ...
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Kingfisher Airlines: caveat emptor
Financial Times (blog)
So Vijay Mallya, the flamboyant billionaire tycoon behind India's Kingfisher Airlines, must have hoped investors would assume he was taking one manfully on the chin when the company announced an after-tax loss of Rs7.55bn ($140m) for the quarter ending...
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Financial Times (blog)
Kingfisher Q3 net loss at Rs 755 crore
India Today
Vijay Mallya controlled Kingfisher Airlines on Tuesday reported a net loss of Rs 755.17 crore for the third quarter ended December 31, 2012, with zero revenue as its entire fleet is grounded. However, auditors of the airline said that the actual net ...
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India Today
India's Kingfisher Airlines further bleeds financially
The National
Debt-ridden and with no customers, Kingfisher Airlines posted a 7.55 billion rupees loss in the three months to December 31 as its planes sat idle, creditors circled and regulators rebuffed the Indian airline's revival plans. Kingfisher, which has been ...
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Kingfisher Airlines auditors hint at hidden losses in Vijay Mallya's co
Financial Express
Mumbai: Auditors of debt-ridden Kingfisher Airlines today said that the carrier's third-quarter (Q3) net loss would have been much higher at Rs 1,090 crore, had it followed "generally accepted accounting standards" in realisation of aircraft-related ...
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Power supply snapped at Kingfisher's office for non-payment
The Hindu
The power supply to the Mumbai head office of Kingfisher Airlines was snapped this morning for non-payment of bills, sources said. The Qube, in suburban Andheri near the international airport is a commercial complex from where Kingfisher Airlines...
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