Jet Airways Showing Similarities Like Last Days Of Kingfisher

Jet Airways is learnt to be showing many similarities like that of the last days of Kingfisher. A senior aviation official had said in August-September 2012, for the Kingfisher airlines that, “The airline is operating seven aircraft and we will give its unutilised slots to other Indian carriers.” 

However, Jet Airways is hoping to start again soon. 

Both the airlines stopped international operations and went all-domestic before suspending operations, though in Jet’s case that happened for less than a week, while Kingfisher flew within the country for some months.

“It has been decided that flight operations will be suspended for the next three days until October 4, 2012,” a Kingfisher statement of October 1 said, declaring the temporary suspension. It’s another matter that the airline never flew again. Jet’s employees hope that their airline’s suspension is actually temporary and it will fly again.

Kingfisher promoter Vijay Mallya had left India for London on a Jet Airways’ flight from Delhi in March 2016. Now fighting India’s attempts to extradite him, Mallya on Wednesday tweeted from London: “Even though Jet was a major competitor to Kingfisher at the time I feel sorry to see such a large private airline on the brink of failure when government used (Rs) 35K crore of public funds to bail out Air India. Just being a PSU is no excuse for discrimination…. Even though we were fierce competitors, my sympathies go out to Naresh and Neeta Goyal who built Jet Airways that India should be extremely proud of. Fine Airline providing vital connectivity and class service. Sad that so many airlines have bitten the dust in India. Why?”

Airlines have long called for making India less cost-hostile for them. Air India chairman Ashwani Lohani said in a Facebook post on Wednesday: “The closure of Jet, even if temporarily, is definitely a setback to Indian aviation. It is indeed a sad day for all those in the business of flying in the country to witness a fine airline closing shop. While sustained mismanagement definitely contributed, the fact remains that in the entire aviation eco-system, it is the airline that invariably remains at the receiving end, while all other stakeholders make money. We have in the past witnessed many airlines shutting shop and it is time to appreciate that airlines are forced to operate with razor-thin margins in a competitive environment, which result in a scenario that encourages un-sustainability. The issue has no easy solutions, yet a solution would need to be found.” 

KC Chakrabarty Under Suspicion in Kingfisher and Airworth’s fraud case; CBI Issued LOC Against Him

Former Deputy Governor of Reserve Bank of India is in a tight spot as Central Bureau of Investigation accused him of being involved in Kingfisher Airlines and Airworth Travels & Tours Pvt Limited debt case.

The apex investigation authority has issued Lookout Circular against him by virtue of which he was restrained in May from going to London. His for the withdrawal of LOC in special CBI court in Delhi was rejected by the special judge Savita Rao, believing that his departure from India can become a weapon to escape justice.

However, Chakrabarty, however, denied all allegations of wrongdoing in a May 15 letter to the CBI director. Chakrabarty, who served as deputy governor of the central bank between 2009 and 2014, is now an NRI and lives in London.  He also served as the chairman and managing director of Indian Bank from 2005 to 2007. Chakrabarty was also the chairman and managing director of Punjab National Bank from 2007 to 2009.

Central Bureau of Investigation (CBI) held him ‘suspect’ in two cases, including one related to the debt default by fugitive tycoon Vijay Mallya-founded Kingfisher Airlines and other in the Airworth Travels & Tours Pvt Limited, forgery case filed by Indian Overseas Bank against the agency. The latter, according to Chakrabarty, has been doing his personal bookings after he left office in 2014.

“I have become A Poster boy of Bank default”, Vijay Mallya writes to PM.

Fugitive tycoon Vijay Mallya today released a two-year-old letter (scroll down to read) to Prime Minister Narendra Modi and said in a statement he was “making every effort” to settle his dues to banks but he had been made the “Poster Boy” of bank default and a lightning rod for public anger.

“I wrote letters to both the Prime Minister and the Finance Minister on 15th April 2016 and am making these letters public to put things in the right perspective. No response was received from either of them,” Mr Mallya said, justifying his first statement after a “long period of silence”.

“I have been accused by politicians and the media alike of having stolen and run away with Rs. 9,000 crores that was loaned to Kingfisher Airlines. Some of the lending Banks have also labelled me a wilful defaulter”.

He said he was “tired of this relentless pursuit” by the government and its criminal agencies.

The liquor baron flew to the UK in 2016 and has been fighting against moves to extradite him to India to face trial.

The 62-year-old is wanted in India for defaulting on loans worth crores and also in a money-laundering case. He left India just when a group of banks launched efforts to recover unpaid loans from him. Since then, he has been living in a mansion near London and has been spotted in many events. Last year, he was arrested in London on an extradition warrant.

“I respectfully say that I have made and continue to make every effort, in good faith to settle with the Public Sector Banks. If politically motivated extraneous factors interfere, there is nothing that I can do,” he said.

According to him, the CBI and Enforcement Directorate were “determined” to frame criminal charges against him.

“The surprising fact is that the ED has objected in court to my Group’s applications for sale of assets in order to allow me to repay creditors, including Public Sector banks,” he said, commenting that it raised the “fundamental question of whether the Government wants me to repay the Public Sector Banks or not”.