End in Sight for Kingfisher Airlines

[sob]

Noose tightens: HDFC to vet KFA non-core assets | Firstpost

The noose is tightening on flamboyant Vijay Mallya as banks get cracking with their plans to redeem whatever they can from troubled Kingfisher Airlines.

The consortium of 17 banks has mandated home loan major HDFC to value non-core assets of Kingfisher and also find a buyer for the properties in Mumbai and Goa, a report in Business Line newspaper said today.

The airline has a debt of Rs 7,500 crore and the sale of these properties will only be a minuscule relief for the lenders.

Earlier, a report had said that Mallya is shifting his one and only private jet to a safe haven (his UB group) to prevent frustrated lenders from attaching it for recovering dues.

There were earlier reports that SBI lead bankers wanted to attach Mallaya's Villa in Goa to help in recovery of loans.

 

[sob]

Troubles continue for the King of Good times as yesterday i.e 11th of July 12 flights were cancelled as pilots stayed on strike protesting against salaries not being paid.

12 Kingfisher Airlines flights cancelled as pilots' strike continues - The Economic Times

Earlier till last month Lessors had tsken back 34 aircraft from KFA.

 

[Ray]

Not as yet.

The DGCA has been shifted and so Kingfisher can have their second wind!

Behind DG's quick exit, Ajit-govt standoff
http://timesofindia.indiatimes.com/...t-Ajit-govt-standoff/articleshow/14834348.cms

 

[sob]

The Govt. will even have to shift the MD of SBI as his bank is leading the efforts to attach Mallya's villa at Goa and his Yacht to recover their dues.

 

[Daredevil]

Mysteriously this govt. is giving a very long rope to Mr. Mallya and even as far as sacking DGCA. If tomorrow something unfortunate happens, it will be on UPA govt., not mallya and not the DGCA.

 

[aeroblogger]

E K Bharat Bhushan was one of the finest DGCAs India has ever had. He cracked down on corruption, various scams, and cleaned up the DGCA very nicely. However, he went one step too far in threatening to withdraw Kingfisher's AOC.

The fact that Ajit Singh and Zaidi are willing to go as far as to sack EKBB to keep Kingfisher in operation means that they actually think that Kingfisher can keep flying for more time, until a point where VJM and his cronies have gotten as much out of the airline as they possibly could.

Regardless, now that EKBB has been replaced, I would not trust the safety of Kingfisher Airlines. The DGCA maintenance surveillance that EKBB had ordered will be scrapped soon, and Kingfisher will undoubtedly start to cut corners.

 

[sob]

Behind the sacking of Mr.Bhushan lies not just the case of KFA but also, the refusal by the gentleman to allow import of old aircraft, older than 15 years into India. At the behest of some Industrialists the Civil Aviation Minister had mooted the change in the rules, but looking at the safety aspect Mr.Bhushan had refused to pass the file. This had not gone down well with the Minister.

You can read the complete article here
Turbulence over old planesÂ’ import led to DGCA exit - Indian Express

Serious differences between outgoing DGCA chief E K Bharat Bhushan and the civil aviation ministry over allowing the import of old aircraft and renewing the permits of non-scheduled operators, as well as some terse official observations by Bhushan on these issues, led to his sudden removal from the post, sources said today.

Bhushan, an additional secretary in the ministry who was holding charge as DGCA chief and had been given an extension in the post until the end of this year, was abruptly removed on Tuesday by the ministry without any reasons being assigned.

The move prompted the Prime Minister's Office to ask the civil aviation ministry why Bhushan was removed a week after the cabinet's appointments committee had approved his extension.

The civil aviation ministry, sources told The Indian Express, wanted to ease rules that govern the import of aircraft, and allow older planes to be brought into the country, saying the current restrictions were too stringent.

 

[sob]

Self Delete- Double post

 

[sob]

aeroblogger, could you shed some light on the case of the Non Scheduled operators that also seems to be cause of friction between EKBB and Ajit Singh.

 

[Iamanidiot]

@Sob Iam hearing the house of khodays are having the last laugh in Bangalore

 

[sob]

I am sure that there is along line of people who would be enjoying the situation of Malaya.

 

[Iamanidiot]

the khodays and mallaya fought in the Karnataka liquor lobby for nearly 60 years.Now thanx to mallayas idiocy the khodays will rise again.They have assets over 1 lakh crore in Bangalore itself

 

[sayareakd]

how they can attached his property, if it is not kept as security? Under Securitisation Act they need to give 60 days notice after taking approval from 2/3 consortium members. He should come to my office, just pay lots of $$$$ and we will save him.

 

[aeroblogger]

aeroblogger, could you shed some light on the case of the Non Scheduled operators that also seems to be cause of friction between EKBB and Ajit Singh.

Sure, that's also an issue, although I'm inclined to think that it is secondary to Kingfisher.

Quite simply, MoCA( read: Ajit Singh and possibly Zaidi) wanted for DGCA to loosen up safety regulations in a variety of ways - import restrictions most notably, but also some maintenance procedures, operating procedures, etc. NSOs would be particularly affected by these changes...

DGCA (read: EKBB) thought that current regulations were loose enough, and refused. As you can imagine, this wasn't going over well with MoCA.

I'd like to think that this is a result of the conflicting mandates of the 2 organizations - MoCA is meant to encourage development of aviation, while DGCA is responsible for keeping that aviation safe. But it is more likely that corruption played a significant part in this...

 

[sob]

how they can attached his property, if it is not kept as security? Under Securitisation Act they need to give 60 days notice after taking approval from 2/3 consortium members. He should come to my office, just pay lots of $$$$ and we will save him.

Saya, this was in papers a couple of day's back

Lenders may sell Vijay Mallya's Goa villa: top 10 developments | NDTV.com

 

[sob]

Sure, that's also an issue, although I'm inclined to think that it is secondary to Kingfisher.

Quite simply, MoCA( read: Ajit Singh and possibly Zaidi) wanted for DGCA to loosen up safety regulations in a variety of ways - import restrictions most notably, but also some maintenance procedures, operating procedures, etc. NSOs would be particularly affected by these changes...

DGCA (read: EKBB) thought that current regulations were loose enough, and refused. As you can imagine, this wasn't going over well with MoCA.

I'd like to think that this is a result of the conflicting mandates of the 2 organizations - MoCA is meant to encourage development of aviation, while DGCA is responsible for keeping that aviation safe. But it is more likely that corruption played a significant part in this...

Just saw this in the Indian Express article

While aircraft used by NSOs attract a lower duty, some private firms are known to import planes using NSOPs but use them for personal travel.

Such violations by some NSOs had led to their permits being cancelled and the DGCA had even told the ministry that it would not renew such NSOPs. Sources said that earlier this year, the ministry received a representation from a Mumbai-based business house for renewal of the NSOP licence of its jet and the ministry overruled the DGCA by granting a three-month extension to allow a flight to Brussels.

 

[aeroblogger]

Just saw this in the Indian Express article

Sure. Importing through an NSO and bribing the MoCA is cheaper than importing legally.

The blame lies with the tax code.

 

[aeroblogger]

IPL news: RCB players in the lurch over payments | India Cricket News | ESPN Cricinfo

 

[sayareakd]

Saya, this was in papers a couple of day's back

Lenders may sell Vijay Mallya's Goa villa: top 10 developments | NDTV.com

Sob, there are three ways they can do that.

1. Airline and the creator of security interest (asset given as security) both or either of them come forward and pay the amount to secure their asset or give possession of asset.
2. Banks can take action under securitisation and reconstruction of financial assets act 2002, it has short and simple procedure banks in this case 2/3 members agree for action and they will issue notice under 13(2) after account is declare as NPA, they will give 60 days notice and take over the property. NPA is non payment of interest or installment or account is over limit for 90 days. so 90 days + 60 days, bank can take over its secured assets, with police protection.
3. If the amount is more then 10 lacs then recovery case can be filed in Debts Recovery Tribunal (DRT).

these are the only ways in which banks can proceed for its recovery. I practice in Debts Recovery Tribunal, In second case it is the DRT which has jurisdiction to stay action under securitisation and reconstruction of financial assets act.

 

[Blackwater]

londiya baazi or ayeashi bado bado ko le dubti ha