November 12, 2011

Should Govt. Rescue Kingfisher Airlines ?

In the present day regime of free enterprise businesses and companies like Kingfisher should be left to market forces . However , aviation fuel etc. should be provided to all airlines at International rates and Govt should reduce its heavy taxes on them.

 ( Vijay Mallya seems to be having adequate resources to rescue Kingfisher .

( Once   during the Great recession of 1920 s Sir Dorabji Tata pledged family jewelery to pay on time salaries etc ) of Tata Steel ( then known as Tata Iron And Steel Company Limited ).

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Please read this from Tata's Official Site :-

Sir Dorab's commitment to his father's vision and values was so strong that he staked his personal fortune to save the steel venture when, in 1924, it slipped into trouble. His business sense and audacity had seen the company undertaking a five-fold expansion programme in the post-World War I period. Spiralling costs combined with transport and labour difficulties in the West upset Sir Dorab’s calculations. At about this time, the company’s largest pig iron customer, Japan, was struck by an earthquake and steel prices tumbled.
It got to a point when there was not enough money to pay his workers’ wages. Sir Dorab pledged his entire personal fortune worth, about Rs1 crore and including his wife’s personal jewellery, to obtain a loan. Tata Iron and Steel secured support from unexpected quarters — among those backing the company were Jawaharlal Nehru and Mohammed Ali Jinnah, the future leaders of independent India and Pakistan — and it survived the crisis.

( Credit : http://www.tata.com/aboutus/articles/inside.aspx?artid=+vi+KywJPS4=

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Blog Writer's Comments :-

Kingfisher Airlines `s plight makes one very sad. Vijay Malllya was very passionate about Kingerfisher Airlines. If there was a delay in flight take off , a SMS had to sent to Vijay Mallya and an explanation . Vijay Mallya had created tremendous share holder value ( a quantum increase in share valuation in United Breweries by bold reorganisation and bringing in as partners internationally reputed brewers . In his initial years Vijay Mallya`s entry into petrochemicals ( UB Petro - earlier Kamar Petro ) and simultaneous disinvestment of Kissan ( to Hindustan Unilever ) had , however , backfired. 

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