cubastar
Topic Author
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Kingfisher Employees Go Unpaid For 2 Months

Tue Feb 14, 2012 10:13 pm

Kingfisher (IT) has not paid employees since last December and was also unable to make a planned payment last week.
IT employs around 7,000 people.

http://atwonline.com/airline-finance...r-employees-unpaid-two-months-0214
 
jfk777
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RE: Kingfisher Employees Go Unpaid For 2 Months

Tue Feb 14, 2012 11:41 pm

Its very sad Vijay Millaya's airline and most recognizable holding is sinking. Kingfisher is the kind of airline to make modern India proud.
 
roseflyer
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RE: Kingfisher Employees Go Unpaid For 2 Months

Tue Feb 14, 2012 11:46 pm

I find it completely amazing that the airline can still operate without having paid its staff since December. Could you imagine what would happen if a company tried to do that in other parts of the world?

Kingfisher is dying a slow death. Not paying salaries, having airplanes repossessed, having fuel supplies cutoff, are all signs of serious problems.

Personally I think this shows that 5 star service only makes sense where people are willing to pay for it. An airline can strive to have the best product and best service, but if the market does not pay it, it leads to massive losses.

[Edited 2012-02-14 15:56:47]
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tonystan
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RE: Kingfisher Employees Go Unpaid For 2 Months

Wed Feb 15, 2012 3:45 am

Quoting jfk777 (Reply 1):
Its very sad Vijay Millaya's airline and most recognizable holding is sinking. Kingfisher is the kind of airline to make modern India proud.

But dont you see that this is nothing for India to be proud of. You can have brand spanking new planes and top notch but pricey to deliver service but to do this you need to charge a realistic fare and have the backing to do it. It appears to me that Vijay has simply thrown money at this vanity project of his without really having the finances to support it. He is now causing severe hardship to many thousands of people and their families (a very good friend of mine is one of those greatly affected and I can assure you that the concern and ongoing stress has lasted since long before December), dragging a famous brand down and making a mockery of an already laughable Indian aviation sector.

Modern India should not be proud of kingfisher but use it as an example of how not to run a company! Infact it should even be an example of who not to work for....Someone who clearly has more money then common sense!
My views are my own and do not reflect any other person or organisation.
 
aeroblogger
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RE: Kingfisher Employees Go Unpaid For 2 Months

Wed Feb 15, 2012 4:00 am

Firstly, as a side note - 9W hasn't paid their staff recently either.

Quoting tonystan (Reply 3):

Modern India should not be proud of kingfisher but use it as an example of how not to run a company! Infact it should even be an example of who not to work for....Someone who clearly has more money then common sense!

I agree completely.

6E is the airline that makes India proud. Well managed, on time flights, clean aircraft, run by execs who know the industry.
I wish I could say that AI makes us proud as well, but their incompetence never ceases to amaze. They are the best full service carrier in India in terms of product however - the food in particular is fantastic! If only they could actually get their aircraft flying reliably, and if they could get their IT staff to work, AI could be a winner!
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bennett123
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RE: Kingfisher Employees Go Unpaid For 2 Months

Wed Feb 15, 2012 7:15 am

You have to wonder how long Kingfisher will last.

Failure to pay wages is usually not far from the end.
 
FlyASAGuy2005
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RE: Kingfisher Employees Go Unpaid For 2 Months

Wed Feb 15, 2012 9:56 am

Quoting bennett123 (Reply 5):
You have to wonder how long Kingfisher will last.

Failure to pay wages is usually not far from the end.

  

Payroll is usually near the top of the list if not on top for your monthly bills. If you can't handle payroll anymore then you begin to wonder when folks will come to work one morning only to find out that the airline will be shutting down operations before it even starts.
What gets measured gets done.
 
jfk777
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RE: Kingfisher Employees Go Unpaid For 2 Months

Wed Feb 15, 2012 1:52 pm

Quoting tonystan (Reply 3):


But dont you see that this is nothing for India to be proud of. You can have brand spanking new planes and top notch but pricey to deliver service but to do this you need to charge a realistic fare and have the backing to do it. It appears to me that Vijay has simply thrown money at this vanity project of his without really having the finances to support it. He is now causing severe hardship to many thousands of people and their families (a very good friend of mine is one of those greatly affected and I can assure you that the concern and ongoing stress has lasted since long before December), dragging a famous brand down and making a mockery of an already laughable Indian aviation sector.

This sadly is all true but the "old" Indian airline, Air India, is such a mess it should be sold off in parts( not as a whole) to private hands and any emplyees with 30 years service should be offered an incentive to retire.

Jet and Kingfisher should be the airline of a new India.
 
babybus
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RE: Kingfisher Employees Go Unpaid For 2 Months

Wed Feb 15, 2012 2:19 pm

A dying airline in 'an emerging economy' seems like a contradiction in terms.

Just as a traveller I am not sure what would make me fly Kingfisher above other Indian airlines. It's USP isn't clear.

They should pull the plug before it drags down thousands of families with it.
and with that..cabin crew, seats for landing please.
 
nimbus111
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RE: Kingfisher Employees Go Unpaid For 2 Months

Wed Feb 15, 2012 3:08 pm

i think maybe its time to sell off his F1 team and focus on this crisis.
The more turbulence the marrier :-)
 
tonystan
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RE: Kingfisher Employees Go Unpaid For 2 Months

Wed Feb 15, 2012 5:36 pm

Quoting jfk777 (Reply 7):
This sadly is all true but the "old" Indian airline, Air India, is such a mess it should be sold off in parts( not as a whole) to private hands and any emplyees with 30 years service should be offered an incentive to retire.

Jet and Kingfisher should be the airline of a new India.

An airline of the "new India" should be any airline which can compete effectively and efficiently. Sadly your examples, Jet and Kingfisher can do niether and therefore should be brushed to the side. You need to stop looking at the brand spanking new aircraft, young crew, PR campaigns and high level of service onboard and start looking at a viable product that suits the customer base and delivers profits for expansion.

All iv heard from my employer the last few years regarding our own service to India is "But Jet provide Ice Cream, Kingfisher have lounges onboard etc etc etc"! So what? It hasnt done them any favours, they are falling to pieces because they set their standards too high, but my employer is still packing them in on those routes and the passengers keep coming back so we must be doing something right despite still keeping the expense down!

Air India itself is a mess but for some odd reason is still being pumped up by the government. If you ask me, seeing as they have this anti competitive support perhaps this is where the "new india" should concentrate but as long as there is a long term plan to privitise it also. Another thing that needs significant changes is Indias protective aviation sector which needs to be opened up to foriegn investment and indeed foreign airlines. Silly things such as banning the a380 of foreign carriers from landing at its airports are just insane and has no room in a fast emerging market of the 21st century!
My views are my own and do not reflect any other person or organisation.
 
LAXDESI
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RE: Kingfisher Employees Go Unpaid For 2 Months

Wed Feb 15, 2012 6:03 pm

Quoting Babybus (Reply 8):
A dying airline in 'an emerging economy' seems like a contradiction in terms.

Some recent numbers on Indian Aviation:

Demand growth 16%
Capacity growth 19%
Load factor 75%

Normally a load factor of 75% should produce profitable operations. However, going by the reported numbers, only Indigo seems to be profitable.

For yields to rise significantly, average fare along with load factors have to rise. Reduction in capacity with demise of one of the airlines, Kingfisher being the most likely candidate currently, could raise yields in the short run. In the medium and long term, the presence of Govt. subsidised Air India will continue to depress yields.

[Edited 2012-02-15 10:26:30]
 
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HAWK21M
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RE: Kingfisher Employees Go Unpaid For 2 Months

Wed Feb 15, 2012 6:24 pm

Only Indigo & Blue Dart are in to profits,the latter has no competition currently so 16yrs on the trot in profits is an achievement.
Indigo needs to continue the good trend.
The rest are in problems.
AI/KF/9W have not paid their employee salaries.

GOI should reduce taxes in aviation & make the sector easier to run into profits.
I may not win often, but I damn well never lose!!! ;)
 
cricket
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RE: Kingfisher Employees Go Unpaid For 2 Months

Wed Feb 15, 2012 7:10 pm

This has been a slow-motion disaster. Mallya uses flamboyance as a management style, always BIG news like the A380 and the insane take-over of Deccan and its debt (which played a large part in today's problems, much like Sahara is screwing Jet's finances). Sure, the government should have allowed them to fly international sooner and could have prevented the Deccan take-over. There is no doubt that Kingfisher service was world-class, I am Gold on King Club and have flown them close to a 100 times over the past few years. Service on First was fabulous, I remember my amazement when the air-hostesses offered to clean my spectacles.

But today I fly Indigo when not on reward flights. Indigo is on-time, the Buy-on-borad service is affordable and the snacks quite good. I travel with my iPad or laptop, so don't need IFE though the live-TV while it worked (and still does on some aircraft) was quite interesting, especially during breaking news events. I feel sad at a level, but I do believe that Kingfisher should be allowed to die or be taken over, preferably (with my bias) the latter.
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AirframeAS
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RE: Kingfisher Employees Go Unpaid For 2 Months

Wed Feb 15, 2012 7:23 pm

Quoting Roseflyer (Reply 2):
Could you imagine what would happen if a company tried to do that in other parts of the world?

If it was at my airline (for example), and I did not get paid on the next pay period, I would be skeptical about it at first. But on the next payday, still no check, I would be bolting for the nearest exit and would never return. This would be only after two pay periods.
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