Kingfisher Airlines Financial Problems : Vijay Mallya's Comments

Vijay Mallya's Comments about various topics related to the Financial Problems of                              

                                                          Kingfisher Airlines.

VIJAY MALLYA

VIJAY MALLYA'S COMMENT  - FDI IN AVIATION

"I am an avid supporter of FDI (foreign direct investment)," "I don't see any reason why FDI from strategic partners like an airline should be banned or not permitted. Who would understand an airline better than 

another airline? I hope government will consider it seriously."

"A general investor who has the opportunity in investing in other sectorsmay not care to look at an airline. We need equity to improve the position of balance sheets, not just Kingfisher but the entire industry,". 

VIJAY MALLYA'S COMMENT - GOVT BAIL OUT

"We have not asked for any bailout from government," said Mallya.

"We have not asked the government to dip into the taxpayers' money. We have never done it, we will never do it."

“It is highly taxed and restrictive for investments and this is affecting viability of the industry. The industry is in serious trouble and we are not worse off than anyone else and are better off than several others but the government should address these systemic issues.” 

VIJAY MALLYA'S COMMENT -   FUNDS

"We require Rs 700-800 crore, which includes both fund and non-fund based. We have pursued every opportunity to raise capital,"

"We have not asked for a concession (from banks)," Mallya said. 

"We have not asked for a haircut. Our demands with the banks are mainly two-folds.One is to meet short-term capital needs which have gone up and concession on interest."

VIJAY MALLYA'S COMMENT - IMPORTING OF FLIGHT FUEL

"This is something that needs serious attention of our state governments and our central government.The industry needs this issue to be addressed immediately," 

Vijay Mallaya said his company has "applied officially to the ministry of commerce for direct import of fuel"

"If we import fuel directly for our own use we become an actual user, and therefore, we don't pay sales tax,"

VIJAY MALLYA'S COMMENT - INTERNATIONAL EXPANSION PLANS

“There is no need for international expansion as we plan to join the One-World Alliance next quarter where members including Cathay Pacific, American Airlines and British Airways use partners' routes to shore up networks. However, we are going to improve utilisation on our A-320 and A-321 by flying to neighbouring countries and within India.”