Vijay Mallya, Chairman of Kingfisher Airlines, is famous more for his personality and ever failing airline. Kingfisher Airlines was founded in 2003, and has been unable to pay salaries to itâ€™s employees, now the situation has worsened and the airlines has officially been asked to vacate premises.
An official meeting held on Oct 4th was left unresolved, because the airline still could not commit to paying the salaries of more than 7 months. Economic crisis is understood, but this is homage to unethical activity, and lack of discipline. Kingfisher Airlines had seen its happy days, it was once Indiaâ€™s second largest airline, but no the situation is very different, Kingfisher has never turned a profit since its founding in 2005; itâ€™s now in over $1.4 billion in debt, owed mostly to government banks led by State Bank of India. What can one say about the company with the controller Vijay Mallya is Liquor barren, and is not capable of taking responsibilities?
This is a lesson to be learned, employees donâ€™t respect the company theyâ€™re working for when incentives are not paid on time. The basic earning of anyone at times of economic distress hold even more importance, the employees all have their families to look out for, and obviously unpaid salaries and wages of months is not helping anyone.
After all these disputes amongst the employees, and the meeting with the SBI and other lenders Kingfisher has decided to ground its fleet of aircrafts for another week. Airline spokesman Prakash Mirpuri said “We regret that the illegal strike has still not been withdrawn and normalcy has not been restored in the company, thereby continuing to cripple and paralyze the working of the entire airline,”. The unfortunate turn of events is leading to higher rank staff resigning from their jobs, even the Kingfisher company secretary, Bharath Raghavan has called quits.
The lenders and banks are not stupid anymore and have released firm statements, regarding financial support expected from the airlines. On Tuesday an official with Indiaâ€™s aviation regular announced that the airlines will not be getting any government approval till it resolves its issues and pay the salaries to all its employees and submits a practical recovery plan.
Kingfisher airlines has now decided to pay off salaries with 600 million rupees in bank accounts that were frozen by authorities. The airlines accounts had been frozen earlier this year by tax officials, because the company had not deposited its taxes on time.
Such is the situation of Kingfisher, one would think the company had everything worked out. Business lesson learned: Ethical practices matter. Employees are the backbone of any good business, when the boss is not in tune with the wants and expectations of its staff, the company will dwindle down within no time. Paying wages and salaries of time, providing the staff with incentives, and keeping them motivated is crucial. Business ethics are a huge part of growth and success of an organization. Precisely where Vijay Mallya went wrong!