Kingfisher Airlines running out of money, pilots and options

“For the first time since its troubles began, the Kingfisher Airlines management has threatened a shutdown at a meeting with its pilots in Mumbai. CEO Sanjay Aggarwal made the statement on Thursday in response to the pilots’ stand that they may refuse to operate flights if they are not paid their salaries,” says The Times of India

“And when pressed on his commitment to keep Kingfisher afloat, Mallya sounds almost fatalistic. “I am absolutely committed to keeping Kingfisher Airlines going - unless some government agency wishes to ground it”,” _Firstpost_ editor Venky Vembu had written in late February.

“Therein may lie a clue to Mallya’s likely endgame strategy for his beleaguered airline. It revolves around flying on a wing and a prayer, and blaming Kingfisher’s troubles entirely on flawed government policy, so that if it comes right down to it and Kingfisher is grounded, he can walk away a martyr,” Venky’s analysis went on to say.

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If Mallya’s first offensive salvo as Kingfisher Airlines’ management bumbled from one crisis to the next was to try and pin the blame onto some unnamed and unknown government agency, Kingfisher Airlines CEO Aggarwal’s bluster and bombast yesterday seems to be the next in the ‘strategy’, shifting the onus onto the pilots.

The very same pilots who have not been paid since December 2011, and are protesting against the delay - and the continued uncertainty. The pilots asked Aggarwal for post-dated cheques, which Aggarwal flatly refused. The post-dated cheques would have been a show of good faith, and at least one crisis - the disgruntlement of the pilots - would have passed, at least temporarily.

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There are too many instances of Kingfisher Airlines failing in its commitments for the pilots (or, indeed, any other creditor) to take the management’s ‘word’ in lieu of hard cash. The income-tax department, the oil companies and the banks, to name just three creditors, have all been promised payments by the airline - promises which have been proven to be dishonoured.

And, despite the dismal track record, the pilots’ request for post-dated cheques is turned down - and the pilots are threatened with a shutdown.

It’s interesting that Aggarwal threatens a shutdown - it makes it sound like an active, managerial decision. It’s more likely that the airline’s problems will cause the shutdown - and Kingfisher Airlines’ management role will be passive. They will have no choice in the matter.