NYT - Mr. Vijay Mallya, listed by Forbes on its
billionaire lineup, is way short of cash to pay his debts. His Kingfisher
Airlines, owned by his UB Group, ordered 50 new Airbus planes at the 2007 Paris
Air Show, has never made a profit, is late paying bank loans on time ($1.3
billion late) and it's claimed he hasn't paid most workers for months. The
airline is called his "crown jewel". A report states his executives "seemed
willing to practically gamble away the health of the group's other businesses,
which were used as collateral for bank loans to the airline". These "other
businesses" included expensive cars, a car racing team and fancy parties at his
home in Mumbai with Bollywood stars and prominent politicians. The airline
featured red-suited flight attendants, very generous frequent-flyer programs
and quality food at the start. The airline faced drastic competition from
state-owned Air India. Its fleet is down to 12 airplanes from more than 70, and
schedules have been pared to only curtailed domestic flights. You might say he's being grounded.
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