What I see is he is more a political victim. The story of Kingfisher and Mr. Mallya is very well captured by others so I wont be repeating it.
What we must pay attention to is, Kingfisher started connecting Tier 2, Towns like Solapur with Metros like Mumbai. This is a very bold move as all the other airlines only fly the profitable routes. This move also needs huge cash as Airports in these town are not maintained for Civil Aviation but only for VIP movements.
This was a very welcome step by KFA as small towns were also getting connected with metros with better service but KFA had to procure all the facility like Luggage scanner, setting up ticketing and Security operations which sucks lots of cost.
Such type of vision and action should be supported by strong investments and good credit provision. But here comes politics.
KFA was doing all the right things to be the best & broadest Airlines in India, any one would have invested readily but none of the Indian players/Banks did it.
Only bet for Mr. Mallya was getting Foreign Investor. The rules at that time didnt allowed FDI in civil aviation. Mallya tried to convince the UAP government to amend the rules and allow FDI in Civil Aviation. But Politics wanted to see KFA dying.
Till that time Mr. Mallya was striking deals with Virgin group and Air Asia group to invest into his airlines. It was public knowledge that they were keen to invest in KFA but waiting for UPA Govt to allow FDI in Civil Aviation.
FDI was not allowed, KFA started bleeding. debt piled up, people started resigning and quitting. No flights were taking off. If you dont fly a single flight for 18 months your Aviation license is seized. KFA was down for ever.
Immediately one month after that rules were amended, FDI till 49% (if Im not wrong) was allowed immediately. That saw Tata Airlines starting Vistara with Singapore Airlines and Aira Asia India with the help of Air Asia.
Who suffered the Losses?
- Customers lost a very good airlines in India
- Small town people lost
- Banks & Lenders who could have seen good returns from KFA if they persisted with them for 2/3 years more. As crude oil prices crashed, KFA was not flying to take advantage of it. This was the period which made all of the Indian carriers profitable first time ever.
- Million Dollar brand was burned to ashes. Many people, ground stafff, Crew members lost job.
- No hope for Banks to recover the investments.
Losses, Profits, Bankruptcy all are part of Business. Banks who took KFA Brand as a guarantee against the huge loans they gave to KFA to recover losses, but that didnt helped. Ideally Mr. Mallya can be held accountable as he surrender all the collateral he had signed for the loans he took, but politics wanted to see him behind the bars. The govt changed, but once a culprit is always a culprit.
Mr. Mallya is a Business man. With his new ventures Force, Formula 1 race and entertainment business we hope he will raise enough funds to pay his debt. Provided he should be allowed to do it. Else our bank will never recover the bad debts and also the future potential revenues and employment that he can create.
(Admit : Im a fan of Vijay Mallya and I have access to some deep political circles. I might be trolled for my answer but I would request you to see the entrepreneur spirit and industrious nature of this guy who made Force India and IPL reality.
I have similar opinions for Sahara Shree Subrato Roy :)). But I love to see the other side of the things which is not obvious to common people )