Mallya writes to staff, says KFA on 'safe ground'

Kingfisher Chairman Vijay Mallya outlined the company's revival plan in the letter, a day after employees threatened to move court seeking to close the airline

Kingfisher Chairman Vijay Mallya wrote to the airline’s employees today outlining the company's revival plan, a day after they threatened to move court seeking to close the airline.

Mallya's letter is clearly aimed at pacifying the employees who have not been paid since June. Some remained unconvinced as the airline management, in the past, had not stuck to its assurances.

Mallya wrote the airline was on "safe ground'' and making all efforts to secure renewal of the operating permit which lapsed last month. “We have submitted a detailed restart plan to the DGCA which is in two parts. The first part deals with a limited re-start utilising seven aircraft, ramping up to 21 aircraft in four months.

The second part is a full-scale rehabilitation of our airline, growing to 57 aircraft within 12 months of recapitalisation,” Mallya informed his employees in the letter.

"The banks have been very co-operative and patient. There has been no discussion at all on recall of loans, enforcement of securities, etc.as reported in the media. On the contrary, the banks have expressed their keen desire to see Kingfisher fly ,'' he wrote in the letter.

"Mallya's letter brings nothing new to the table. In the past, too, the airline has given assurances about restarting the airline and paying salaries but that has not happened. We were supposed to receive June salary before Christmas. Two days back, employees met Executive Vice-President Hitesh Patil and he said the airline may pay salary before month end,'' a Kingfisher employee said.

Kingfisher management had promised the employees that their dues till June would be paid by December last year. However, it failed to meet the deadline. The commitment to the employees had come following a two-month strike by its engineers and pilots over non-payment of dues.

Earlier, Kingfisher had said that while the March salary would be paid within 24 hours, the April salary would be paid by October 31, May dues before Diwali in mid-November and June salary by December end. The salary dues from July to September would be paid by March next year after recapitalisation of the airline.

Kingfisher, whose flying licence (Scheduled Operator’s Permit) expired on December 31, had submitted a revival plan to the regulator DGCA on December 2012. The DGCA, however, did not accept it and asked to furnish additional details.

Kingfisher is burdened with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,524 crore, a large part of that has not been serviced since January.

http://www.business-standard.com/india/news/mallya-writes-to-staff-says-kfasafe-ground/498511/

Unfortunate that I am being held solely responsible for Kingfisher Airlines' difficulties: Vijay Mallya

It's hard to argue that 2012 has been anything but a bad year for Vijay Mallya. The self-styled King of Good Times has seen his airline lose its operating licence, and has sold a controlling interest in his flagship liquor company to Diageo. 

So, being ranked at No. 2 on a list of most admired business personalities (In a Brand Equity survey of youth in metro cities) is, "very surprising", he admits "given the way I have been slammed by the media right through 2012". In an interview with ET NOW, the chairman of Kingfisher defended himself with what has come to be a trademark belligerence, pointing out that as brand ambassador to a set of flamboyant brands, his lifestyle was as much a marketing gimmick as a personal choice. 

In the interview, Mallya said he was spending his own money and attributed the negative publicity to media. 

"There is nothing wrong in loving life and living life. I spend my own money not other people's money. I live a life what I consider to be normal. In India, there is this huge jealousy factor unfortunately and that interferes in people's judgements. So, if I were to do something that I consider perfectly normal, some hypocrite out there is probably going to say that I am too flashy and too flamboyant." 

The travails of Kingfisher Air, in any case, are not solely his fault: "It is rather unfortunate that I am being held singularly responsible for Kingfisher Airlines' difficulties, for its financial problems. It defies the very logic of a limited company," Mallya said in the interview. Any business group, he pointed out, has successes as well as failures. 

"I wish they looked at the total picture rather than just the Kingfisher AirlinesBSE -1.15 % picture," he said, pointing out that in the last three decades, he has taken United Breweries from an 18% market share to more than 50% of the market, while creating stakeholder wealth - and incidentally, the world's largest spirits company - in the process." 

Instead of getting credit, "I was sort of hung and pronounced guilty before I even had a chance to clarify or to justify the position that Kingfisher Airlines find itself in. I was branded as person solely responsible for Kingfisher Airlines' debts for its unpaid employees sadly and for everything that went wrong." 

In a letter to employees released on Thursday, banks received a pat on the back from the UB Group chairman for being "patient" though he admitted that they had inquired after the money owned by Kingfisher. 

"They (banks) have requested our urgent attention to certain overdues which we are addressing with them. The banks have been very co-operative and patient. There has been no discussion at all on recall of loans, enforcement of securities, etc as reported in the media. On the contrary, the banks have expressed their keen desire to see Kingfisher fly again," Mallya said. 

Mallya claimed that he is negotiating with prospective investors and reiterated details of a plan submitted to DGCA for a limited relaunch of the grounded airline. 

The Kingfisher scrip rose 10%, closing at 14.79. Employees who have not been paid since May last year have threatened to file a winding-up petition. 

Mallya also lashed out at media claiming that "management time" of the top brass of the grounded airline was being wasted in clarifying media reports. 

"As you know, the media has continued their negative reporting on Kingfisher. I would urge each one of you to be particularly careful in any interaction you may have with them," Mallya cautioned his employees, who have threatened to file a winding-up petition.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/unfortunate-that-i-am-being-held-solely-responsible-for-kingfisher-airlines-difficulties-vijay-mallya/articleshow/17975028.cms

Govt to hold 10% stake in Aranmula airport project

THIRUVANANTHAPURAM: The state government has decided to take up 10% stake in the Aranmula airport project. The cabinet, which met here on Wednesday, gave its nod for the project and to have a government nominee on the director board.

The move, viewed as a boost for the project which had already lagged behind owing to controversies, may open up another round of debate and legal battle between promoters of the project and environmentalists. The greens in the state led by Sugathakumari have opposed the concept of Aranmula airport and were putting pressure on the government not to involve itself in the project. However, senior leaders in the UDF, including those representing the Central Travancore, had lobbied for the project and the government finally decided to be part of it.

Announcing the decision, chief minister Oommen Chandy said the government would go ahead with the de-notification of excess land notified by the previous government for the project. The land required has been determined and the government will take over the remaining land.

He said the government would be providing its land for the project at market price, but it would not make any investment in it. The cost of the land would be treated as equivalent to the government's share.

A proposal to start two maritime institutes in the state also got the cabinet nod. Neendakara and Kodungallur have been selected as locations for setting up the institutes at a cost of Rs 36.63 crore and Rs 9.64 crore, respectively.

The cabinet also approved a proposal to start Kerala Minority Development Finance Corporation. A fund of Rs 50 lakh has been set apart as the initial capital for the corporation.

The cabinet would recommend the governor to amend the Kerala Dairy Farmers Welfare Board Act. An ordinance for the same would be introduced, chief minister said.

The cabinet also decided to forward its recommendations for the amendment of the Prevention of Torture Bill, 2010, introduced by the Union government.

http://timesofindia.indiatimes.com/city/thiruvananthapuram/Govt-to-hold-10-stake-in-Aranmula-airport-project/articleshow/17976924.cms

Kingfisher Airlines will fly again by summer, says Mallya

NEW DELHI: It took a threat from employees to seek legal help in selling grounded Kingfisher's assets and get their salary dues for promoter Vijay Mallya to finally break his silence . Early on Thursday morning, barely hours after the angry employees met in Delhi, Mallya told them in a mail that he is trying to restart operations this summer with a fund infusion of Rs 650 crore from the parent UB Group. However, the letter made it clear that the airline's seemingly endless wait for an investor is still on and also remained silent on when the dues of employees and other agencies will be cleared. The disclosed details of the "two-part restart" plan submitted to the Directorate General of Civil Aviation (DGCA) late last year. "The first part deals with a limited re-start utilising seven aircraft , ramping up to 21 aircraft in four months. The second part is a full-scale rehabilitation of our airline growing to 57 aircraft within 12 months of recapitalization," he says for Kingfisher that has an unenviable debt-cum-loss figure of almost Rs 16,000 crore. 

However, the aviation ministry — whose soft handling of the Kingfisher crisis till the airline itself decided to stop flying on October 1, 2012, has drawn severe flak — now says that Mallya needs to find a steady flow of funds for the airline as a repeat of the previous erratic adherence to schedule and flying in fits and starts can't be allowed again. And this, DGCA and ministry sources who have seen and trashed the restart plan, say will not happen without recapitalizing the airline either through internal group funding or an investor .Importantly, DGCA chief Arun Mishra made it clear to the airline management that it must clear all salary dues before hoping to fly again. 

The regulator, like Kingfisher employees , now seems to have no faith in the hollow timelines given by the management repeatedly in the past for clearing salary dues. 

But Mallya's letter did not speak of any progress in getting an investor. "We have been in discussion with prospective strategic as well as financial investors for over a year... The aviation industry in India is a seriously complex one, including high costs resulting from excessivetaxation and monopolies . Investors need to be convinced about the long-term prospects of their proposed investment in Kingfisher and this takes time. Please rest assured that we are in discussion with multiple investors and remain confident that we will secure a deal," he says. 

Mallya sounded more confident about banks that have an exposure of about Rs 7,500 crore in the grounded airline. "They (banks) have requested our urgent attention to certain overdues which we are addressing with them... There has been no discussion at all on recall of loans, enforcement of securities... On the contrary, banks have expressed their keen desire to see Kingfisher fly again." 

But Kingfisher's unpaid employees and numerous other agencies like airport operators that cite huge dues from the airline are feeling anything but safe and are now running out of patience.

http://timesofindia.indiatimes.com/business/india-business/Kingfisher-Airlines-will-fly-again-by-summer-says-Mallya/articleshow/17976966.cms

Kingfisher will take off again in March, promises Mallya

New Delhi, Jan. 10:  

Kingfissher Airlines plans to start limited operations by the beginning of the 2013 summer schedule with seven aircraft. It also plans to ramp up to 21 aircraft in four months, airline promoter, Vijay Mallya, told agitating employees. Globally, the summer schedule of airlines starts from March and extends till October.

In a communication to employees, Mallya said that starting with seven aircraft was the first of a two-part re-start plan submitted to the Directorate General of Civil Aviation.

“The second part is a full scale rehabilitation of our airline growing to 57 aircraft within 12 months of recapitalisation. Both plans contain detailed information on key assumptions and funding requirements, including payment of outstanding salaries to employees,” Mallya said.

The letter adds that the limited re-start plan requires Rs 650 crore “which is committed to be provided by the UB Group and associates.”

The letter comes less than 24 hours after Kingfisher employees, who have not been paid salaries for eight months, sought a detailed plan for re-starting the airline.

The airline suspended operations on October 1 last year, and its operating licence expired on December 31, 2012.

Mallya added that the airline was meeting the consortium of banks that had lent it funds and keeping them fully informed. “They have requested our urgent attention to certain overdues, which we are addressing with them.

“The banks have been very co-operative and patient. There has been no discussion at all on recall of loans, enforcement of securities. On the contrary, the banks have expressed their keen desire to see Kingfisher fly again,” the letter stated.

Mallya added that the airline had been in discussions with prospective strategic as well as financial investors for over a year. “Investors need to be convinced about the long-term prospects of their proposed investment in Kingfisher and this takes time.

“Please be rest assured that we are in discussion with multiple investors and remain confident that we will secure a deal,” he added.

http://www.thehindubusinessline.com/todays-paper/tp-oncampus/kingfisher-will-take-off-again-in-march-promises-mallya/article4295569.ece

Cargo piles up at Chennai airport as workers go on indefinite strike

Chennai, Jan. 10:  

Valuable cargoes such as parts for the telecom and automobile industries are lying uncleared at the Chennai airport due to an indefinite strike by the temporary cargo handling workers belonging to a private company.

If the strike continues, the problem could precipitate as the ICEGATE (Indian Customs EDI Gateway) will be shut down from January 11, 1800 hrs to January 13, 0900 hrs.

The shut down of the ICEGATE system, a portal through which documents for import and export cargo clearance is filed, will be followed by the Pongal holidays next week.

“We are heading for major trouble next week, if the strike continues,” said an official of a large logistics company.

“With most of the companies working on just-in-time inventory, such a disruption badly affects their production schedule,” he said. Workers of Bhadra International India Ltd , which is the ground handling agency in Chennai airport, went on an indefinite strike from Wednesday. Their demand included wage increase, and providing basic medical and canteen facilities.

In a desperate attempt to clear the cargo, the Airport Authority of India had, in fact, requested the Custom House Agents to supply various companies’ loaders to handle export cargo at the examination area.

This will be allowed on a ‘special permission’ basis to work inside the palletised area (export).

The arrangement was for a smooth functioning of export shipment. However, some members of the air cargo industry felt that it was a serious issue as it could give access to people in a ‘highly sensitive and secured zone.’

They cannot allow such an arrangement, which can create security and safety-related problem, said an official of a leading logistics company who did not want to be identified.

The Airports Authority of India has deputed employees from other agencies with CHA staff members to partially clear the import consignment, said sources.

The workers were hired in 2010 and there were several hundred workers in six broad categories – handyman (loaders), fork lift driver, supervisor, shift in-charge, shed in-charge and house-keeping staff.

Sources said that every day, nearly 250 tonnes cargo (both import and export) are handled at the Chennai airport.

As of today evening, nearly 250 tonnes of export cargo are lying in the ramp uncleared.

This includes both belly cargo that is carried in passenger aircrafts and the regular freighters.

Officials of Chennai airport could not be reached for comments.

According to A.V. Vijayakumar, President, Chennai Custom House Agents Association, as of this evening there have been no negotiations between the striking work force and the management. There appears to be no solution.

“We are concerned with this development considering the fact that if strike is not resolved immediately and by tomorrow, during Pongal holidays, the trade and industry may be badly affected,” he said.

Efforts by Airports Authority of India to handle imports and exports are not very encouraging. There is no contingency plan and if the situation is not handled immediately, it may go out of control and there is every possibility of congestion at the Air Cargo Complex Terminal and paralyse the operations.

“We appeal to AAI to sort out this issue immediately for the benefit of trade and industry and ensure that the authority do not impose penal charges for delays in handling of cargo,” he said.

http://www.thehindubusinessline.com/todays-paper/tp-logistics/cargo-piles-up-at-chennai-airport-as-workers-go-on-indefinite-strike/article4295670.ece

Air India launches ‘Dreamliner’ flights to Paris

Mumbai, Jan. 10:  

Air India introduced its Boeing 787 Dreamliner aircraft operations to Paris from Thursday.

The daily flight on the Delhi-Paris-Delhi route will operate with the Dreamliner as per the existing schedule, the airline said. The flight will leave Delhi at 1.10 p.m. and arrive at Paris, Charles de Gaulle Airport (also known as Roissy Airport) at 6.05 p.m. (local time).

The return flight, AI-142, will depart from Charles de Gaulle airport at 9.30 p.m. (local time) and arrive at Delhi at 10.10 a.m. next day.

Air India is gradually expanding operations of its B-787 aircraft to more international destinations. Currently, the Dreamliners fly from Delhi to Dubai and Frankfurt, in addition to some domestic sectors.

Air India has received six B-787 aircraft so far, with the last aircraft having arrived in Delhi on January 4.

http://www.thehindubusinessline.com/todays-paper/tp-economy/air-india-launches-dreamliner-flights-to-paris/article4295640.ece

Kingfisher will take off again in March, says Mallya

To fly with 7 aircraft initially; UB Group may provide Rs 650 cr

New Delhi, Jan 10:  

Kingfisher Airlines plans to restart operations by the beginning of the 2013 summer schedule in a limited way with seven aircraft. It plans to ramp up to 21 aircraft in four months, airline promoter Vijay Mallya told agitating employees. Globally, the summer schedule of airlines starts from March and extends till October.

In a communication to employees, Mallya said that starting with seven aircraft was the first of a two-part restart plan submitted to the Directorate-General of Civil Aviation.

“The second part is a full scale rehabilitation of our airline, growing to 57 aircraft within 12 months of recapitalisation. Both plans contain detailed information on key assumptions and funding requirements, including payment of outstanding salaries to employees,” Mallya said.

The letter adds that the limited restart plan requires Rs 650 crore “which is committed to be provided by the UB Group and associates.”

The letter comes less than 24 hours after Kingfisher employees, who have not been paid salaries for eight months, sought a detailed plan for restarting the airline. The airline suspended operations on October 1 last year, and its operating licence expired on December 31, 2012.

Banks co-operating

Mallya added that the airline was meeting the consortium of banks that had lent it money and keeping them fully informed. “They have requested our urgent attention to certain over-dues, which we are addressing with them. The banks have been very co-operative and patient. There has been no discussion at all on recall of loans, enforcement of securities. On the contrary, the banks have expressed their keen desire to see Kingfisher fly again,” the letter stated.

Prospective investors

Mallya added that the airline had been in discussions with prospective strategic as well as financial investors for over a year.

“Investors need to be convinced about the long-term prospects of their proposed investment in Kingfisher and this takes time. Please rest assured that we are in discussion with multiple investors and remain confident that we will secure a deal,” he added.

Warming up DGCA will have to clear revival plan before the airline takes off A consortium of 17 banks has an exposure of Rs 7,500 crore to Kingfisher Debtors, including leasing companies and Airports Authority of India, want debts cleared before the revival

http://www.thehindubusinessline.com/todays-paper/kingfisher-will-take-off-again-in-march-says-mallya/article4295655.ece

Airport Metro to undergo safety test on January 15, 16

Moving further towards resumption of services, the Airport Metro Express Corridor will undergo a two-day mandatory safety inspection by the Commissioner of Metro Rail Safety (CMRS) next week.

The 23-km corridor connecting Connaught Place with Terminal 3 of Indira Gandhi International Airport was shut down temporarily this past July after cracks were found in the civil structure. The high-speed corridor underwent extensive repairs for the past six months.

“I have decided the dates for inspection. I will inspect the corridor on January 15 and 16,” CMRS R.K. Kardam told PTI on Thursday.

The inspection has been pending for a few weeks now as the Delhi Metro sent in a request asking the CMRS to inspect the line in November.

Sources said the CMRS had asked for some papers and more tests to be conducted before his inspection of the line. Once the line is cleared by Mr. Kardam, the operator, Reliance Infrastructure, will start services on the line within a couple of days.

The high-speed corridor, the first Public-Private Partnership project in the country, underwent extensive repairs on the girders and other civil structures after the operator complained of defects. Ever since, the Delhi Metro and Reliance Infra have been at loggerheads with the private operator even expressing its desire to quit the line.

However, Urban Development Ministry stepped in and referred it for arbitration.

Once the line is open, commuters will be able to reach the airport from the city in 20 minutes.

http://www.thehindu.com/todays-paper/tp-national/tp-newdelhi/airport-metro-to-undergo-safety-test-on-january-15-16/article4296995.ece

Dreamliner surprise for air passengers

Chicago-bound passengers from the city were in for a pleasant surprise on Thursday night when there was a change in the aircraft from Boeing 777 to the state-of-the-art Boeing 787 Dreamliner on the Hyderabad-Delhi sector.

According to an Air India spokesperson, Boeing 777 which regularly operates on the Hyderabad-Delhi-Chicago sector could not arrive here from Delhi due to technical reasons. The B-787 Dreamliner was then pressed into service and the aircraft with full load of 256 passengers was operated for the first time from the Rajiv Gandhi International Airport here. However, the passengers would fly by a Boeing 777 from Delhi. Air India has so far received six B-787 Dreamliner aircraft which is configured to accommodate 256 seats.

http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/dreamliner-surprise-for-air-passengers/article4297130.ece

Minister calls on AAI Chairman

Welfare Minister P. Rajavelu, who also holds the Tourism portfolio, along with officials from the Tourism Department, paid a courtesy call on Airports Authority of India Chairman V. P. Agrawal on Wednesday.

Officials discussed the possibility of expansion and future plans of the airport, Secretary for Tourism W.V.R Murthy said.

The AAI was at present exploring the possible dates for inauguration of the airport. They were also deciding about invitees for the function.

The meeting with the AAI was following a review meeting conducted on January 5 confirming details of the first flight to Puducherry, he said.

http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/minister-calls-on-aai-chairman/article4297367.ece