March 31, 2012
Even as a signature campaign by Kingfisher’s unfortunate employees demanding a hearing on April 2 with no other than founder Vijay Mallya reaches a crescendo, Aersopace Diary has learnt of a tug of war happening between the government and the airline on who should close the company.
Mallya is clear, we learn, the airline will be not be shut down by him even if it comes down to the minimum five needed to run a domestic carrier in India, but he isn’t averse to the government shutting it down. Infact, during a recent interview on an electronic channel he went as far to say if the government wanted to shut the airline, why didn't it. The reasons for this, we hear, are not being disclosed.
Meanwhile as debtors knock on the now fragile doors of the carrier, with almost empty flights being clubbed between destinations, the 120 promised flights a day to the DGCA are not taking place. We were unable to confirm how the DGCA is viewing this default Also with money tight, what happens to spares and maintenance issues? Think the customers flying on this carrier have a right to know.
The noose is tightening further. Starting April 7, KF will have to pay Rs 9 crores every week to the IT for its default of income tax dues. Please note, we’re not even mentioning service tax, etc etc and ofcourse the staff, which it seems, has no place at all in its long list of priorities.
As all this takes place, the sales team are now under pressure for not performing! First you create a crisis and then blame the people. All the poor guys have to say is: “Show me the money!” With KF out of IATAs BSP and having sucked its clients dry, all they are left with is negative revenue- and doesn’t help much.