Kingfisher Airlines

Kingfisher Airlines was the Bengaluru-based carrier of Vijay Mallya's United Breweries Group, known for a premium, in-flight-entertainment-led product. Mounting losses, the costly Air Deccan takeover and unpaid staff led to a licence suspension on 20 October 2012. It never flew again.

How it started

Kingfisher Airlines was established in 2003 by the United Breweries Group, best known for Kingfisher beer, and chaired by Vijay Mallya. According to Wikipedia, it began commercial flying on 9 May 2005 with four new Airbus A320-200s, on a Mumbai–Delhi service. The same article says the launch came just after Mallya's son Sidhartha turned 18, and reportedly as a birthday gift.

The heyday

Kingfisher built its name on service. It was the first Indian airline to put in-flight entertainment at every seat, even on domestic flights. Its domestic and international "Kingfisher First" cabins offered extras such as personal screens and, on long-haul flights, full flat beds. By 2007 Simple Flying reports a fleet of 20 A320s serving 26 destinations. International flying began on 3 September 2008 with Bengaluru–London, flown by Airbus A330-200s. In 2011 the airline held the second-largest share of India's domestic market. Simple Flying gives a peak fleet of 69 aircraft, including 28 ATRs and five A330s. The airline also ordered A350-800s and A380s that it never received. It was named a member-elect of the Oneworld alliance in June 2010, according to the airline's history page on Wikipedia.

What went wrong

The causes, broadly in order:

• Early losses. Wikipedia notes the airline was already heavily indebted and loss-making soon after launch, despite plans for a share offer in 2005.
• The Air Deccan deal. Kingfisher took over the loss-making low-cost carrier Air Deccan, which was rebranded Simplifly Deccan and then Kingfisher Red. The combination of two different cost structures, fleets and customers made matters worse. Kingfisher Red was shut down in 2011.
• Debt and frozen accounts. The airline reported heavy losses in November 2011. Its bank accounts were frozen by the Income Tax department in December 2011 and again in 2012. By early 2012 it had accumulated losses of over ₹70 billion, with half of its fleet grounded.
• Unpaid staff and lost trade support. Pilots and engineers struck repeatedly over unpaid salaries. IATA told travel agents to stop selling its tickets, and international flights were suspended on 10 April 2012, leaving 25 domestic destinations.

The last flight

No source consulted documents a final flight. Business Today reported that at the start of October 2012 the airline suspended operations for three days, until 4 October, blaming employee action. The regulator then summoned its management. On 20 October 2012 the Directorate General of Civil Aviation suspended its licence after the airline failed to answer its concerns. Employees had agreed to return to work on 25 October, but the airline did not fly again.

What happened next

On 25 February 2013 the Indian authorities scrapped its international flying rights and domestic slots. No successor airline took over the operation. By July 2014 its unpaid loans of more than ₹40 billion had made it the top non-performing asset of India's state-owned banks. In March 2016 a consortium of 13 banks led by State Bank of India went to the Debt Recovery Tribunal to recover its dues. By then Mallya had left India for the UK, and British courts later ordered his extradition. Wikipedia reports that about ₹300 crore of outstanding employee dues was repaid by India's Enforcement Directorate on 18 December 2025. The Air Deccan name stayed with its founder, G. R. Gopinath, who had kept the trademark.

Sources: Wikipedia: Kingfisher Airlines, Wikipedia: History of Kingfisher Airlines, Simple Flying: What Happened To Indian Carrier Kingfisher Airlines?, Business Today: End of the road for Vijay Mallya's Kingfisher Airlines, Wikipedia: Air Deccan