Kingfisher Airlines of India has been in tremendous financial crisis for the last several months. For some weeks in November and December, it cancelled its flight schedule arbitrarily resulting in inconvenience to hundreds of travelers.
On the contrary, the airline's flamboyant promoter enjoyed F1 racing with his team - Force India - in Abu Dhabi.
The inflation was at a peak in November December 2011. The cost of day to day vegetables was peaking, and the price of petrol was soaring through the roof. The common man was feeling the pinch.
It was then when our honorable Prime Minister Dr. Manmohan Singh commented that he and his government would explore ways of getting Kingfisher out of trouble. When has our PM commented so positively in getting the common man out of trouble?
And it was just yesterday that the State Bank of India (SBI) Chairman Pratip Chaudhari indicated that Kingfisher Airlines is in default and a non-performing asset. Kingfisher Airlines owes Rs. 1457 crores to SBI and a total of Rs. 6000 crores to a host of other lenders.
The balance sheets and profits of these lenders are expected to take a hit. The investors in these banks and Kingfisher Airlines are bound to suffer losses in their investment.
On the other hand, Kingfisher has published the 2012 calender showcasing attractive models. This would have necessitated substantial investment of money. And this is a lavish show when Kingfisher Airlines is struggling.
Kingfisher Calender 2012
It's quite a contradiction that they don't have the money to service the debt. Yet, they continue to invest in F1, in their alcohol business and their extravagant calender.
Yes, the times are difficult. And we should be careful and austere, rather than extravagant.
I wonder why we are so inconsistent in our behavior. Is it because we live our life in Compartments?
Why Are We Inconsistent?
Reviewed by Vyankatesh
Friday, January 06, 2012
Obstacles are frightful things you see when you take your eyes off the goal. – Henry Ford
Every man has his faults. It all depends on whether he has enough good qualities to counterbalance them. – Ferec Santa
Turn your face to the sun and the shadows fall behind you. – Jan Goldstein
Dreams come true; without that possibility, nature would not incite us to have them. – John Updike
Ambition is the path to success. Persistence is the vehicle you arrive in. – Bill Eardley
No one can really guarantee the future. The best thing we can do is calculate the risks involved, size up our chances, estimate our ability to deal with them, and then make our plans with confidence. – Henry Ford
The ability, to use the present in the anticipation of the future, will make the difference.