The Kingfisher Airlines fiasco continues to haunt its owner and employees even after a decade. The Indian airline went from promising 5-star services to passengers to eventually running out of funds to pay its workers. Its owner Vijay Mallya, currently in the UK, is often in the news for his court trials, and whenever a new judgment is announced, it scratches the wounds of several ex-employees still waiting for their dues.

Four-month sentence

Vijay Mallya – the owner of the defunct Indian full-service carrier Kingfisher Airlines – has been living in the UK for the last few years as cases against him pile up for non-payment of dues to various stakeholders.

Now, the Supreme Court of India has sentenced him to 4 months in a contempt case. Mallya refrained from saying much about the judgment but expressed his disappointment to the Press Trust of India, saying,

"I have no comment on the Indian Supreme Court verdict except to say that I am naturally disappointed.”

The 66-year-old businessman is involved in a bank loan default case of more than $1 billion. The court has also ordered him to deposit $40 million along with interest in four weeks to avoid attachment of his properties.

Over the years, as creditors closed in on Mallya, they have managed to recover some funds by seizing some of his assets. But several former Kingfisher employees are still waiting to be compensated for their service to the airline even after a decade of the airline shutting operations.

Waiting for dues

Former staff members of Kingfisher Airlines are waiting for their wages for all those months they worked for the carrier during its difficult times. They have approached the courts and requested Mallya to be brought back to India so that Justice could be served. Many also feel that Mallya’s lifestyle hasn’t changed much after fleeing to the UK, while they continue to suffer from the impacts of Kingfisher’s failure.

The Business Standard quotes Aniruddha Ballal, a former Kingfisher employee, as saying,

“An official liquidator was appointed by the Karnataka High Court and we submitted our claims in 2019. We don’t have any clarity on how employees’ dues will be paid and haven’t received a penny yet.”

Another employee – a pilot – says that sending Mallya to jail is not a solution. Instead, he should be allowed to clear his dues so employees and other stakeholders can finally be compensated.

When an airline goes bust, former employees often find themselves way down on the list of those who need to be paid back. Until that happens, it seems difficult for Kingfisher workers to get a proper closure.

About Kingfisher Airlines

Kingfisher Airlines started operation in 2005, branding itself as a luxury carrier, in line with the glamorous image of its industrialist owner Vijay Mallya. The airline boasted modern airplanes, in-flight entertainment, and a loyalty program.

Follow Simple Flying for all the latest aviation news.

There were even orders placed for large aircraft such as the Airbus A380 and A350, as it looked to expand its international footprint aggressively. But competition from the country’s booming low-cost market and bad business decisions started the airline's downward spiral.

In 2008, Kingfisher merged with the low-cost carrier Air Deccan, which turned out to be a huge mistake. The carrier found it difficult to sustain both a full-service airline and its low-cost subsidiary. As covered by Simple Flying in detail, Kingfisher Airlines ceased operations in 2012 following massive losses.

What are your views on this? Please let us know in the comment section below.

Source: Business Standard