Mallya bullish on aviation industry growth prospects

UB Group Chairman Vijay Mallya said on Tuesday that he was bullish about the growth prospects of the Indian aviation industry.

Speaking at the launch of the non-stop flight service from Bangalore to London, he pointed out that several airlines, including Singapore Airlines, Emirates and Lufthansa, have been seeking permission to increase frequency of flights to the country.

He noted that Indian Airlines represented just 30 per cent of all internationalflights, and there was ample opportunity to grow.

Mallya also gave a thumbsup to the much-maligned Bangalore International Airport.

‘’The roads to the airport are quite impressive. It takes me only 45 minutes from the heart of the city to the airport,’’ he added.

However, he noted that the airport could have been slightly larger.

The UB Chairman also urged the State government to lower its sales tax on Aviation Turbine Fuel (ATF). He said: ‘’Th e lowering of sales tax will stimulate air traffic growth to BIAL. The government will make up the lost revenue through increased sales.’’ On User Development Fee(UDF),Mallya said that he was opposed to any move whereby airlines will charge customers UDF on behalf of the airport. Mallya announced that Kingfisher Airlines will launch its non-stop flight from Bangalore to London from Wednesday. The first flight has already been booked to nearly 70 per cent capacity, he said.

The UB Chairman also announced that future plans include the launch of Bangalore- San Francisco, Bombay- Singapore and Bombay-Dubai flights.

Mallya plans single brand, to shelve Air Deccan

What will be the fate of India's first low-cost carrier Deccan (erstwhile Air Deccan)? UB's think tanks are now strongly considering operating under one brand, Kingfisher Airlines and doing away with the low-cost Deccan model altogether.

This idea was mooted by one of the agencies that have been hired to look at the integration of the two brands. "There is a strong attempt to bring Deccan under the Kingfisher brand name. That way, international operations — which has been Vijay Mallya's focus from the word go — will be smooth-sailing," said company sources. Mallya's UB took over Deccan last year from its original promoter Capt G R Gopinath. An airline can fly international routes only after completing five years of operation, and Deccan becomes eligible for that this year. But Mallya would like to use the Kingfisher brand for these routes, which regulators may find easier to agree on if the Deccan name is changed to Kingfisher.

Previously, there was a move to rebrand Deccan, but retain the low-cost model. In the past two months there have been numerous probables of what would be the new name to replace Deccan — King Lite, King Easy, Deccan King and Kingfisher Express. The model then would have been to use the low cost carrier on short haul routes and the premium service on the other routes.

"The decision to kill the Deccan brand altogether, which is extremely strong in smaller cities, is a tough call, as people in these cities relate flying to Air Deccan," said an aviation analyst.

But low cost as model itself seems to increasingly be an unviable option with the increase in fuel prices. In the US, several low-cost airlines like ATA, Aloha and Skybus have shut operations in recent months.

Katrina flown in to cheer Vijay Mallaya's IPL team

Busy shooting schedules and tight agenda has made Katrina Kaif the busiest actress in town. So much so that in a bid to keep pace with her hectic schedule the actress missed her flight to Bangalore. Katrina had to be there to cheer for business tycoon Vijay Mallya's IPL team. But alas she could not make it on time to the airport.

But that did not prove to be stumbling block for Katrina. Remember she is brand ambassador of none other than Vijay Mallaya's IPL team. And on learning about Katrina's plight, the ace businessman quickly made arrangements and flew her down to Bangalore in his private jet. "That's the advantage of being a brand ambassador for Vijay Mallaya's Royal Challenge IPL team. Otherwise I don't think I would have made it on time. You know they will make sure that you reach despite the maddening schedules," Katrina laughed.

Katrina had such a packed schedule that she had to make her presence felt in three different cities in a span of twelve hours. She adds, "I was shooting in Goa which I finished and had to rush to catch a flight to Bangalore and had to rush to another city from there." Few know that Katrina has been a great fan of the cricket game since her childhood. "I love watching one day and T20 matches. People in England are crazy about them. People in India are crazy about the game too. But besides watching the game, I am enjoying cheering for the team too."

Katrina, who shot a music video with Sanjay Gupta for Vijay Mallya's Royal Challengers, said that she enjoyed that experience too. "I have started enjoying the experience of dancing especially after the success of RACE. Earlier it was not so! But today whether it is to dance to cheer for the IPL team or do it for the movies, I have begun to enjoy it. It helps me unwind on screen and on stage. Yes, I have recently started enjoying dancing on stage too. I realized that when I performed for the Zee Awards. Earlier I did not have the songs or the confidence to perform on stage. Now I have a bit of both," she says smiling.

Trusting Dravid, Charu was a mistake: Mallya

LIQUOR BARON Vijay Mallya has a penchant for making news. Victory or defeat, the owner of the Bangalore Royal Challengers manages to stay in the thick of limelight and controversy.

Mallya rocked the Indian Premier League (IPL) yet again on Monday (May 12), when he almost attributed the loss of his team to skipper Rahul Dravid and former chief executive Charu Sharma.
He claimed that it was a mistake to trust the duo for team selection, while he kept himself away from picking the squad.
The cheerful owner of the the Bangalore team told media persons that his non-involvement in the selection of the team had proved counterproductive.
“My biggest mistake was to abstain from the selection of the team. Though I watch a lot cricket whenever possible, I am no cricket expert at the end of the day,” Mallya said.
The flamboyant businessman said that he had his own list of players, whom he wanted to include in the team but refrained from doing so as Dravid and Sharma had prepared their own list.
He said that he backed the former Indian skipper as he was an iconic player, despite the fact that the team looked like a test team.
Referring to the second auction, where Dravid was absent, the tycoon said that he had his own set of players but Sharma did not support his list. “It was I who brought Misbah-ul-Haq in the team,” he revealed adding that he wanted his team to do its best under the circumstances.

Bangalore Royal Challengers CEO Charu Sharma sacked

The poor run of the Bangalore Royal Challengers has started to take its toll. Sources have told CNN-IBN that five losses in seven games has meant that owner Vijay Mallaya is now taking some tough decisions.

The first man to face the sack is CEO Charu Sharma who has been asked to leave his position. He will be replaced by Brijesh Patel, secretary of the Karnataka State Cricket Association and former India batsman.

Also on the chopping block is coach Venkatesh Prasad who is likely to be sent packing. Prasad is the bowling coach of the Indian team, the final straw for Mallaya was said to be Tuesday's game against the Kings XI when they were bowled out for a mere 126 at home.

Kingfisher Airlines unveils IPL umpire uniforms; announces ‘Fair Play Award'

Kingfisher Airlines (Kingfisher) today unveiled umpire uniforms for the ensuing season of the Indian Premiere League (IPL) in Bangalore today.

The uniform comprises a ‘smart’ red shirt with the message ‘Fly Kingfisher’ on the front and the back, black trousers and a white hat with a red hat band also carrying the “Fly Kingfisher’ message. The line also includes training shorts set in black with a red t-shirt and a cap. The uniform has been designed by the UB group’s dress designer Manovraj Khosla.

Kingfisher Airlines Chairman and CEO Vijaya Mallaya also announced a ‘Fly Kingfisher Fair Play Award’ during the matches which begin on 18 April in Bangalore. Under the Fly Kingfisher Fair Play Award, umpires will award teams' points for fair play, respect for the laws of the game and respect to their opponents. The ‘Fly Kingfisher Fair Play Award’ will involve a League table running over the course of the season. The winner of the award will be the team that, in the eyes of the umpires, has played fairest across the 56 matches comprising the regular League season. Each member of the winning team will be presented with a glittering precious trophy.

“We wanted to do something different from the conventional Man of the match, hence the innovation in which the umpires will be involved,” explained Mallaya during the press conference. After each match, the two officiating umpires and the third umpire will reward award points to the competing teams based on the following criteria: Up to 4 points - awarded per team that in the opinion of the umpires according to how the team upheld the spirit of the game during the match; 2 / 1 / 0 points * - awarded to one or both team/s - if in the opinion of the umpires the team/s showed respect to the opposition; 2 / 1 / 0 points * – awarded to one or both team/s - if in the opinion of the umpires the team/s showed respect to the laws of the game; 2 / 1 / 0 points * – awarded to one or both team/s - if in the opinion of the umpires the team/s showed respect to the umpires. A team can receive a maximum of ten points per match. *Key to Award Points: 2 points – Exemplary, 1 point – Good, 0 points – Average.

Daggers drawn!

Though he managed to bag Tipu Sultan’s sword, this time the tycoon failed to bring home Shah Jahan’s khanjar.

The dagger of Emperor Shah Jahan, (who built the Taj Mahal) was sold at the Bonhams auction on April 10 in London for £1,700,000 (approx Rs13.4 cr).

Reports suggest that a representative of liquor baron Vijay Mallaya was one among the few in the auction room bidding fiercely for the dagger or the khanjar always carried by Shah Jahan.

A source revealed, “Mallya’s agent stopped his bidding at £1,300,000 (approx Rs 10.25 cr). However, an anonymous bidder over the phone outbid him to take the dagger home.”

Mallya had earlier acquired Tipu Sultan’s sword in 2004. Two years ago he had also bought a silver-mounted flintlock sporting gun from the personal armoury of the Tiger of Mysore for £120,000 pounds from a Sotheby sale.

Mallya has plans to construct a museum in Mysore where he can stock the historic treasures speaking of India’s glorious past. But unfortunately, he was beaten this time.

Julian Roup, a representative from Bonhams said, “Six to seven people in the room and about three people over the phone were bidding for this dagger till it reached the million mark.”

He added, “Usually, when an auction reaches the million mark, the bidding room turns silent. But this time it was different. A bidder in the room and two on the phone continued bidding for the dagger.

Lastly, it was a bidder on the phone and one in the room who were left fighting for the relic. Ultimately, the bidder on the phone managed to take the sword away.”

Vijaya Bank to scout for talent on campuses

Vijaya Bank, a public sector undertaking, has decided to continue scouting for talent on college campuses across the country.

The bank recruited 893 candidates, a majority of them at the entry level, as management trainees during 2007-08 and intends to take around 750 to 1,000 candidates during 2008-09.

Addressing presspersons after inaugurating the bank’s 1,047th branch at Bajpe near here on Saturday, chairman and managing director of the bank Prakash P Mallya said that campus selection was aimed at infusing young blood into thebanking system. “We are focusing on tier-two business schools and professional colleges in India,” he said.

The remuneration of Rs 3 lakh a year to recruits at entry level being offered by the bank was commensurate with the industry standards, he said.

Udupi Staff Correspondent reports: Prakash P Mallya, chairman and managing director of Vijaya Bank, inaugurated the bank’s 1048th branch at Manipal on Saturday. He said the net and gross non-performing assets of the bank had come down significantly.

The bank was providing online banking facility. All the branches of the bank would be brought under Core Banking Solution (CBS) by 2009, he added.

Chairman of Manipal Media Network Ltd T Satish U Pai, former chairman of Syndicate Bank K K Pai, chairman and managing director of Kurl-on T Sudhakar Pai and the deputy general manager of Udupi Region of Vijaya Bank M Shridhar Shetty were present.

Mallya plans India-China flight

While Naresh Goyal-owned Jet Airways is likely to launch the daily Mumbai-Shanghai-San Francisco flights in first week of May, Vijay Mallya's Kingfisher is exploring the option of having similar flights next year.

Kingfisher executive V-P Hitesh Patel said: "We are getting 10 long-haul planes this year, which will be used for non-stop Bangalore-New York and San Francisco routes and flights to Europe. Next year we will have additional capacity as more planes join the fleet. We are exploring sectors for them and flights in and out of China are being studied."

Kingfisher is getting five Airbus A-330 and an equal number of A-340s this year.

Currently, Air India is the only Indian carrier flying to China while three Chinese carriers - China Eastern, China Southern and China Air - ply on this route. Ethiopian Airlines also has a Delhi-Beijing flight. With its launch in May, Jet will become the first airline to offer a direct non-stop daily China-India flight.

As Goyal and Mallya set up their China plans, the state-owned Air India has also reacted.

For the past four years, it was offering a one-stop flight to China, which is now being changed to a direct one. "We have four times a week Mumbai-Delhi-Bangkok-Shanghai flight from which Bangkok is being omitted from next week. While frequency will not change as of now, we will offer direct flights between India and China. AI will look at connecting more cities like Beijing once the Boeing 787 Dreamliner starts joining the fleet," said Jitendra Bhargava, ED at AI.

Meanwhile, Goyal is learnt to be eying more flights out of China to Canada and US, apart from connecting Indian cities to Beijing. It has approached the Directorate General of Civil Aviation for relaxing pilots' flying time restrictions. Sources said, the airline is studying ultra long-haul flights from China to distant US cities like Vancouver and Toronto.

Last week, India and China had ended months of stalemate when aviation authorities of both the countries allowed airlines of both sides to a maximum of two beyond points in three regions each.

Mallya applies for inflight mobile

Vijay Mallaya-owned Kingfisher Airline has sought clearance from government for providing inflight mobile service on its international flights. According to airline's executive vice president Hitesh Patel, the ministry of communication's nod has been sought as the company wants to provide this service from day one of its international services that start in August.

"Our wide-bodied aircraft are coming installed with the required infrastructure for inflight mobile service. Airbus is doing this job and we are seeking regulatory approvals from agencies like the department of telecommunication," he said.

Of the two carriers that currently fly abroad, Jet Airways is yet to decide on providing this service. Air India is studying technological options and plans to install this facility. Leading airlines across the world are in the process of offering inflight mobiles but weigh it against the option of discomfort to other passengers and regulatory issues. People have to pay premium international roaming charges for using this facility.

According to sources, India is not averse to its carriers providing such service, subject to safety compliance. Kingfisher has made a presentation to the Directorate General of Civil Aviation (DGCA) which wants a complete report on the technology that will be used and its effect on aircraft navigation systems.

"The request for clearance is with the department of telecom. One issue is that Indian carriers should use the BSNL server for this facility so that the country's security agencies are able to monitor the calls if need be. From BSNL, the calls will be routed to other networks. The airline's service provider is looking at the cost implications of this routing," said sources.

The DGCA wants to see what steps have been taken to ensure that wattage emissions from mobiles on board aircraft are kept low enough to not interfere with navigation systems. Modern technology allows this emission to be limited to one watt so that even if 20 to 30 phones are being used for calls or SMS texts, there is no interference with the aircraft.

On Thursday, Emirates claimed to become the first airline to commercially launch an inflight mobile telephone service. "The first authorised mobile phone call from a commercial flight was made on Thursday at 30,000 feet enroute from Dubai to Casablanca an Emirates Airbus A 340-300 aircraft," it said. "The service will only be activated when aircraft is at cruising altitude and the cabin crew will have full control over the system, including the ability to prevent voice calls at certain times such as during night flights."

Home Garden Awards announced

The Botanical Society of Goa organised its annual All Goa Home Garden Competition recently wherein a panel of judges led by the immediate past president, Dr Heman Yeshwant Karapurkar and with Dr K G Hiremath, Ms Rena Menezes e Fernandes, Mr Anand Jadhav and the current president of BSG visited the houses from Sanquelim to Chandor and judged the gardens for aesthetics, health of plants, composting of garden and kitchen waste, recycling of water and maintenance of roadside trees near the residence.

In the competition, the first place went to Dr Jyoti Mallaya, Ponda, the second place was shared by Ms Amita Audhut Nayak Salatry, Porvorim and Mr Cedric D’ Souza, Altinho, Mapusa, and the third place went to Ms Lira Rodrigues from Davorlim, Margao.

Also, the annual general meeting and the elections to the new executive committee of the BSG will be held on March 30 at 10 a.m in the WWF office, Nehru Science Centre campus, Miramar. The prizes and certificates of the All Goa Home Garden Competition 2008 will be awarded at 11 a.m at the AGM.

Mallaya throws a party for IPL team

With Vijay Mallya set to announce his high-profile IPL team at a grand show, the event was bound to be something memorable. And memorable it was. Though the host flew in three hours late, when he arrived, the grand show, complete with lasers, a burst of orange-and-red confetti and the grand lineup more than made up for it. (though some guests missed the presence of some of the foreign players like Chanderpaul, Kallis and Bracken).

For the early birds, there was lots of chilled bubbly and premium whisky on offer. Dav Whatmore, very low-profile these days, was spotted chatting with friends before leaving early to catch up with some shut-eye. Brijesh Patel, Syed Kirmani and other former cricketers were also seen enjoying the evening. Saad bin Jung, with wife Sangeeta (glam in all-black), brought along British journalist guests Keith and Riva Elliot.

Martand and Rina Mahindra, Ashok and Madhuri Genomal, Shahid Mehmood, Ramesh Ramanathan, Pritham Basappa, Anuja Sharma (husband Charu was busy officiating behind the scenes) were among those seen that evening. Among the glam brigade were Meeru Pai (also stunning in a black gaara saree) and Leena Singh (also in black).

Seen making a grand entrance was Srikantadatta Wadiyar. Kiran Mazumdar Shaw and John Shaw, Nilima Rovshen, Vinita Bali, Venkat Vardhan and Ritu Mallya added their presence to the gathering.

Then, to the sounds of Eye of the Tiger, appeared Vijay Mallya, dressed in designer black along with his super-glam team led by Rahul Dravid. Introductions were made, witticisms exchanged and as the crowds of guests and photographers gathered around the stars of the evening, other guests drifted off to eat dinner and to check out what Clement had lined up for them, musically speaking.

Sanjay Gupta to direct Vijay Mallya's IPL film

In a landmark move ace industrialist Vijay Mallya, Rediff, & popular producer and director Sanjay Gupta have joined hands to create the grand Royal Challengers AD film.

It may be known that Vijay Mallaya's is one of the seven Franchisees of the Indian Premier League besides Shah Rukh Khan, Ness Wadia and Preity Zinta, Reliance Industries Limited, PK Iyer, Managing Director of Deccan Chronicle, Fraser Catellino, CEO, Emerging Media, Lachlan Murdoch. The auction regarding the same was held a few weeks ago in Kolkatta.

Lalit Kumar Modi, Chairman and Commissioner of IPL described as an historic event for Indian and world cricket.

The Franchisees made a bid for ace cricketers from all over the world to be a part of their team. The bidding earned the cricketers an astronomical amount making it a milestone event in Indian history.

The aim of the ad to bring about an awareness of Mallay's Indian Premier League Team.

The close door meeting between Mallya and Gupta that was initially expected to be of 30 minutes lasted for over six hours where the two honchos had meticulous discussions for the ad film.

While Sanjay Gupta will direct, Allan Amin, who shot to fame with DHOOM has been officially appointed as the action director for the ad.

Known for his expensive tastes Vijay Mallya is leaving no stone unturned to make the ad as unique as possible. The businessman has allotted a whopping amount as a budget for the ad. Sanjay Gupta is known to be the most technically accomplished director in Bollywood.

The ad features Rahul Dravid, Zahir Khan and blue eyed boy, Virat Kohli and has some of the most eye-popping visuals.

Virat Kohli, who shot for an ad for the first time said, "It's been exciting to do this shoot (with Sanjay Gupta) for royal challengers & hope it comes out really well.''

Rahul Dravid said, 'It's been hectic... I really enjoyed the pace at which you guys work... Had fun shooting."

Zahir Khan said, "Nice to get to know the players... Friendly vibe with the production team."

IPL's Bangalore Royal Challengers unveils logo

BANGALORE: Vijay Mallaya's UB group which won the Indian Premier League (IPL) franchise for Bangalore unveiled its team logo late last night. The team has been named Royal Challengers (RC).

As has been reported earlier, the team has Charu Sharma as the CEO and Rahul Dravid as the team captain. Martin Crowe, whose role is to focus on the strategic aspects, is the Chief Cricket Officer. Venkatesh Prasad is the team coach and Evans Speachley of South Africa is the physiotherapist with Muthu Kumar of Bangalore as assistant.

The RC team has tied up with Reebok for the sporting uniforms and Louis Phillippe for formals. Monoviraj Khosla has designed the special uniforms for the cheer leaders.

During the second round of the IPL player auction, RC netted Pakistan batsman Misbah-ul-Haq and India under-19 captain Virat Kohli. New Zealand batsman Ross Taylor, Bangladesh left-arm spinner Abdur Razzaq and India U-19 wicket-keeper batsman Shreevats Goswami were the others who came to Bangalore.

The team has a blend of batsmen, bowlers and all rounders. The batsmen are: Rahul Dravid; Shivnarine Chanderpaul; Misbah-ul-Haq; Ross Taylor, Wasim Jaffer; Virat Kohli; Jadessh Arunkumar; Bharat Chipli. The bowlers are: Dale Steyn (reportedly the fastest bowler in world cricket at present); Zaheer Khan; Nathan Bracken; Balachandra Akhil; Anil Kumble; Sunil Joshi; Abdur Razzak; KP Appanna; Praveen Kumar. The all rounders are: Jacques Kallis; Cameron White; Vinay Kumar. The wicketkeepers are Mark Boucher; Shreevats Goswami; Devraj Patil.

An official statement indicates that the UB group is in talks with several partners in the online space to tap young fans, create virtual clubs, explore mobile space and leverage new media potential for marketing the team. Sale of merchandise and on ground activations will be used to reach out to the Royal Challengers fan flowing.

Spyker recovers from F1 adventure

(PHOTO:Spyker F1 Team and Colin Kolles, Dr Vijay Mallya, Kingfisher, Michiel Mol, Spyker.) Five months after selling Spyker F1 to Vijay Mallya and former company managing director Michiel Mol, the Dutch boutique sporscar manufacturer is getting back to its feet.

The adventure at the top level of auto racing nearly drove Spyker into bankruptcy, dropping the company's cash reserves dangerously low when the team's sponsors did not come through with the payments they had committed to.

"Formula One turned out to be a massive bleeder, losing 2 million Euros a month because some sponsors did not pay," Spyker CEO Victor Muller said in an interview Automotive News Europe. "This drained our production capital."

At the end of its Formula One saga, Spyker's operating capital had been drained badly enough that it could not pay its suppliers, dropping its production to just two cars in December. Subsequent to the sale of the company to Orange India Holdings, a venture founded by Mallaya and Mol, Spyker also refinanced the company, receiving some 35 million Euros in additional operating capital.

Spyker sold the team to Orange India for $124 million, somewhat higher than the $106 million purchase price from Midland F1. However, with the operating losses the team incurred as Spyker F1, the venture could not be considered a profitable one for the company -- and the cost of financing an F1 team was unjustifiable for a boutique manufacturer such as Spyker.

But the company survived the "F1 scare," and is more or less back to business as usual. February production will be back to near normal levels, and Muller is visiting Spyker dealers to rebuild trust in the company's ability to deliver cars.

Meanwhile, Mol, who got Spyker involved in F1, has reportedly sold his remaining 11.9% stake in the firm. Gemini Investments Fund of Latvia took an option in Mol's stake in late January, and reportedly Mol and Gemini have completed the transaction, closing the books on the Mol era.

India to announce drivers for 2008 season in two weeks

Formula One team Force India, co-owned by liquor baron Vijay Mallaya, is likely to announce its drivers for the 2008 season in the next two weeks.

Mallya denied he was disappointed when former Toyota driver Ralf Schumacher reportedly said he would not like to join the team, and said the driver had gone to the testing session in Jereze in southern Spain as a friend.

"Ralf came to test and not to compete for a seat in the team. He said what he had to and it's fine by me," Mallaya, who was in the city to launch the Kingfisher Calender, said.

"We will announce the drivers for the team in the next two weeks," he said.

Former Renault driver Giancarlo Fischella, who was present at the testing, has reportedly expressed interest in joining the Force India team and 24-year old German driver Adrian Sutil is also reported to be in contention for a driver's seat in the team.

Drivers Vitantonio Liuzzi, Frank Montagny, Christian Klien, Roldan Rodriguez and Giedo van der Garde had also participated in testing.

Speaking about the testing session in Spain, Mallaya said he was happy with his team which clocked timings which were the seventh and ninth fastest.

"We did well and were just one second behind the Ferrari team in timings," he said.

Mallaya, who had taken over the Spyker F1 team earlier this year after which it was renamed, said he would also be aiming to bring Formula One cars of the team to India for people to see them.

Vancouver could see a new, non-stop plane service to Delhi

A young, splashy airline from India wants to launch non-stop flights from Delhi to Vancouver that would cut travel time on this popular route by as much as 10 hours.

Indo-Canadian business leaders welcomed early news of this interest by Mumbai-based Kingfisher Airlines. In May, many of them pilloried Air Canada for ending all its flights to India so that it could boost them to China.

However, even as Premier Gordon Campbell's office said that this "building of better transportation links between B.C. and India will build on already-close social, cultural and business relationships that exist between our two jurisdictions," the timeline on when Kingfisher could launch such a service is still very fuzzy.

Kingfisher is owned by United Breweries Group, a family-run beer and liquor empire headed by Vijay Mallya, who is often described as India's Richard Branson. Forbes magazine estimates his current net worth at $1.5 billion and he made headlines this year in Europe after buying Scotch whisky maker Whyte & Mackay and becoming a joint owner of the Dutch Spyker Formula One racing team.

Mallya has always stood out in conservative corporate India, but as the country's middle class rises, his trademark love of the good life - boozy yacht parties, a collection of 250 classic cars like Rolls-Royces, some 40 residences around the world - actually meshes with the aspirations of this younger and more free-spending demographic.

Kingfisher currently serves over 30 cities in India, but it does not yet fly internationally. In filings for regulatory approval, it has expressed interest in serving a U.S. West Coast destination and has publicly named New York for a August 2008 launch.

There is, however, a possible hitch to these expansion plans. The Ministry of Civil Aviation, which governs India's airline industry, does not allow domestic airlines that are less than five years old fly internationally. Kingfisher, founded in 2005, could get around this rule by buying a rival Indian airline, Air Deccan, which is more established. Alternatively, Kingfisher might push the government to review the law. Mallya is also a member of India's parliament.

The Vancouver Sun sent an e-mail to Mallaya's direct account at UB Group as well as a media relations officer, but both were unanswered by deadline on Monday. Premier Campbell, who met with Mallya on Monday as part of his trade mission in India, was also unavailable.

Vancouver's appeal as a market is clear considering that, in 2006, it was the seventh largest source of North American passengers to India. More specifically, it was the fourth-largest source of North American passengers to Delhi, outpacing Los Angeles, Chicago and Washington.

At the moment, going from Vancouver to India involves flying first to cities in Asia (Hong Kong, Singapore, Tokyo) or Europe (Frankfurt, Brussels, Amsterdam) before connecting on to India.

"Whichever way you go, it can take between 22 to 25 hours to get there," said John Korenic, marketing director at YVR. "I have done it. It is quite an arduous trip."

Kingfisher's non-stop flight would mean just a 15-hour journey. "Once you start non-stop operations, you very much stimulate the market" in terms of both tourism and trade, said Korenic. "It's so much easier flying on a non-stop. There is enormous opportunity."

Other observers agree. "We found that the type of volumes that Kingfisher [or any other airline] could see would give them significant first mover advantage because of the high share of the Visiting Family and Relatives (VFR) willing to pay a non-stop premium to fly from Vancouver to Delhi," said Nizar Assanie, a vice-president at Vancouver-based IE Market Research Corp. who also sits on the board of the Canada-India Business Council's B.C. chapter.

"Anecdotally, I have talked to my network [who go to India quite often] and in all instances, they were willing to pay the extra premium to save the time it takes to fly to India."

He added: "There is a significant 'catchment area' behind Delhi and behind Vancouver. Key to the success of the route will be the ability to get connections to places like Amritsar, Bangalore, Mumbai, Chennai, and other Canadian and U.S. destinations, such as Toronto."

Jet vs Kingfisher: The battle for No.1 slot

On October 28, at a ceremony to unveil Air Deccan's new-look aircraft in Mumbai, chairman of United Breweries [Get Quote] group and Kingfisher Airlines, Vijay Mallya, said with characteristic flourish: "We have given the full service carriers a run for their money. Now, we will give the low cost carriers a run for theirs."

Though he did not refer to any one airline, it was clear his statement was directed at Jet Airways [Get Quote] and Jetlite (formerly Air Sahara). Ever since Mallya launched Kingfisher in May 2005, making it number one in India has been a foregone conclusion; it's the world's biggest carriers he wants to take on.

Kingfisher's meteoric rise has taken rival and unquestioned number one domestic carrier in the country, Jet Airways, quite by surprise. Used to competing with only Sahara (never a worthy opponent anyway), Jet enjoyed several years of unfettered success after it had trounced Indian Airlines's monopoly and market, becoming India's premier airline since 1993.

This supremacy has now been challenged by a nimble and aggressive Kingfisher which, in just two years and following Mallya's buyout of Air Deccan, is commanding the same market share as Jet Airways and Jetlite.

He may not publicly admit it but Goyal's troubles began soon after Kingfisher took to the skies. "If Naresh Goyal had a magic wand, he'd probably wish away the last two years. Few things have gone right for his airline since the second half of 2005," says a close associate who was on his board but has since resigned.

In Mallya, Goyal appears to have found his first worthy opponent. If Goyal is well connected and knows how to keep the politicians beaming, Mallya is "not exactly an orphan".

If Goyal has managed to hire professionals and build a brand, Mallya is a past-master at building brands. And if Jet has never had a problem raising money before, Mallya has group United Breweries (with a market capitalisation of $5 billion) backing him.

In its initial avatar Kingfisher was aiming to be a low-fare carrier, but soon after its launch Mallya converted it to premium service, taking Jet head-on. Mallya is spending money like water (the airline lost Rs 400 crore in the first year) and has left no stone unturned to grab Jet's market, launching direct advertising campaigns asking Jet fliers to convert to Kingfisher, luring them with miles, better food and a slicker, cooler yet equally efficient option.

Mallya is proving to be "maniacal" about being on time; every delay is examined threadbare in a much dreaded early morning conference which he conducts over the telephone with his senior executives, no matter which part of the world he's in.

When Kingfisher started, many in the industry had questioned its survival. "Not only has it survived," says Kamal Choubey, officer on special duty to civil aviation minister Praful Patel, "one simply cannot deny that Kingfisher's product is the best in the industry."

There are few who appreciate Jet's subtle, quiet efficiency when it's up against Kingfisher's flamboyance. Gopal Sarma, CEO of Feedback Ventures, who accumulated 400,000 miles on Jet Airways' frequent flier service, says he now often chooses Kingfisher simply because its service on the ground is so superior.

He received a Kingfisher Gold card in the mail and has already accumulated 80,000 miles on it. "If I call Kingfisher and ask to be put on a flight in two hours, they give me incredible service. With the amount I travel, I appreciate things like this," he says.

Other than the corporate flyer, Kingfisher is trying to attract the young, upwardly mobile Indian who aspires to fly Kingfisher simply because he identifies with Mallya and his style statement of living life kingsize. Mallya's passion for his airline (some call it obsession) is very clear.

In 2006, Jet's initial troubles were compounded by its messy buyout of Air Sahara which many feel was simply a move to thwart Kingfisher from acquiring it. Against the advice of his senior colleagues, Goyal offered Rs 2,300 crore (Rs 23 billion) for it, a pretty high price for the airline.

"It was like a bee in his bonnet. Once he set his mind to it, he refused to back down, even though everyone warned him it wasn't a great buy," says a senior official who has since left Jet.

As was widely predicted, Jet's share price reacted adversely and has never recovered to what it listed at. The company's total market capitalisation following the announcement of the Sahara deal fell from over Rs 10,000 crore (Rs 100 billion) to Rs 4,558 crore (Rs 45.58 billion).

The moment the deal was called up, the share price recovered somewhat - a clear indication of what the market thought of the Sahara buy, but even today it is trading below the price at which it listed.

At roughly the same time the civil aviation ministry threw open international routes to private carriers. Jet saw this as a natural extension to its business (and one where it enjoys first-mover advantage) and ordered new aircraft.

With competition rising and losses deepening (in the first half of 2006-07, it totted up losses over Rs 100 crore), it needed to raise money and the intention was to do that through foreign currency convertible bonds (FCCB) of $400 million.

But with the share price languishing in the Rs 600-800 range, Goyal would have been forced to dilute a larger portion of his equity than he was willing. So, the issue was postponed.

Around the same time as Jet announced its buyout of Sahara, Air Deccan listed. By then Goyal had seen Air Sahara at close quarters and even he realised it was not worth the money he'd committed - but withdrawing proved harder than he'd expected.

"As the court battle with Sahara proceeded, it was far from evident what the final judgment would be. I think he (Goyal) chose to go in for a known position rather than an uncertain one, which could be worse," says a Jet official, who was privy to the goings-on.

These events coincided with a bloodbath in fares in the domestic market as Air Deccan cut prices to take on new competition, and the new competition cut prices to take on Air Deccan.

"All the players - full service or low-fare - were sucked into it, so obviously everyone started making losses," says Kapil Kaul, CEO of Centre of Asia Pacific Aviation. With losses on domestic operations rising and the launch of international operations - which will pay off only later - most investment firms and brokerages are maintaining a "reduce" position on Jet stock.

Says Gautam Roy, aviation analyst with Mumbai-based financial services firm Edelweiss: "We are not very optimistic on Jet's immediate prospects. It is more a long term story." It has now been two years since Jet has been trying to raise $400 million through some form or the other (earlier through an FCCB, now a rights issue) and it's proved more elusive than Goyal could have imagined.

Although Jet officials say that by end January, they should be able to raise the funds, industry sources say they'll only believe it when they see it.

Kingfisher's chief financial officer, A Raghunathan, argues that this is one of Kingfisher's big strengths vis-�-vis Jet. "Obviously, our own balance sheet is not strong enough. The group's backing is a pillar for us." He says that the airline has got Rs 500 crore (Rs 5 billion) in equity, loans and guarantees from the group to raise finances.

Jet loyalists are quick to point out that using group funds to get into a sector where you bleed is not good business sense, and that Jet has raised over $2 billion in the past from international loans on its own strength, passing the intense scrutiny of lenders.

Then, during the middle of this year, Mallya made a calculated move, buying out Air Deccan for what many feel is a "song", to deftly match Jet and Jetlite's marketshare.

So, while Jet's management has been struggling to make sense of what it inherited in the Sahara deal, Mallya is capitalising on Deccan's advantages and has entered a segment that's sure to give returns in India.

What has compounded problems for Jet is its chairman, Goyal's centralised style of functioning (according to sources he only trusts board member and confidant Vic Dungca, based in London), leading to an exodus at the middle and senior management levels over the last two years.

Often, major decisions exclude top officials, so the joke in Jet is that "whenever anything of significance happens, senior officials are the last to know"! "To be an able general, you have to carry your troops with you. That Goyal hasn't been able to do," says a former board member of Jet.

With Kingfisher and several other career options coming up, what started off as a steady trickle has become a virtual flood. Goyal's problems on this front intensified when four senior executives of the airline resigned together in April 2007, including highly trusted vice president for corporate and public affairs, Nandini Verma, who'd spent 20 years with Jet.

The latest who's planning to abandon the Jet stable and jump onto the Kingfisher bandwagon is Charles Soon, head of airport services, who after being publicly castigated by Goyal for a flight delay has been in a huff and is looking to quit.

Eight former employees that Business Standard spoke to said that the chairman's style of functioning "left a lot to be desired". (Executive director Saroj K Datta and chief executive officer (CEO) Wolfgang Prock-Schauer refused to comment on this, arguing that disgruntled employees will have grouses.) In contrast, barring erratic timings and odd schedules, United Breweries group and Kingfisher airline executives don't have many complaints against their chairman. Several Kingfisher senior officials are old UB hands who have spent 25-30 years with the group.

However, as Saroj Datta puts it, people come and people go. He says that Jet's attrition rate has been constant and that in any industry with competition and new opportunities, things like this will happen.

"We have 10,000 employees. Even if 100 people leave, it's not very significant. We had seen it and have been well prepared for it," says he. "Yes, people are leaving, but are loads falling?" asks a Jet source. Like rival Kingfisher, Jet Airways is a one-man show (without Naresh Goyal or Vijay Mallya, both companies would be rudderless), making it a shared weakness.

But unlike Kingfisher, which is yet to build a strong foundation, Jet already has one. It has a phenomenal network and will expand by 20 aircraft from April 2007 to March 2008 (it now has 70 aircraft).

According to Wolfgang Prock Schauer, the last two years have been tough for the entire aviation industry in India, not just for his airline, and he doesn't think that the rise of one airline - with India and its gigantic market - has to necessarily coincide with the fall of another.

"While things may look rosy for Kingfisher right now, Jet has been through and survived worse," says a former Jet Airways board member, his point being that Mallya should not underestimate Goyal's strengths. "I have never known a man so persistent once he's made up his mind. If Naresh Goyal wants to talk to you, no matter which corner of the world you are in, he will get you," says the former Jet board member, adding that after he's got what he wants out of you, it may be a long while before you hear from him again.

Goyal has a phenomenal network across the world, knows his business like Mallya knows liquor, and never forgets a face, name or number. A hard taskmaster, he expects a lot from his staff. The Sahara acquisition in retrospect looked better than one would imagine: the airline had ordered 10 B737-800s, which in today's market would fetch a premium, it has gained two hangars in the process (which Jet was finding difficult to get) and has entered the lower-end market segment where growth is concentrated today. Twenty-one of its 24 aircraft are up and running and a turnaround looks within reach, Jet officials believe.

The other factor in Jet's favour is a recognition of Kingfisher's strengths, especially in terms of quality. CEO Prock-Scaheur says: "We have to take the product and the quality of its service very seriously." but he maintains that none of this is reflecting on Jet's loads - "Our business class loads have not gone down and our Jet Privilege membership is expanding rapidly. Yes, instead of people saying 'I fly only one airline', they now choose. But that hasn't made any material difference to us," he says, arguing that his airline's strong brand and obsession with quality and consistency will stand the test of time.

The airline business the world over is cyclical, primarily about keeping costs in check to ensure survival. And here is where Jet Airways officials feel it has a distinct edge over rival Kingfisher. In the end, they feel, this one factor alone will separate the wheat from the chaff.

What Works, What Doesn't

Jet's Strengths

• A phenomenal and well-developed network both of the airline and the chairman
• Goyal's knowledge of the sector
• A massive pool of loyal customers
• Excellent lobbying skills and ability to leverage connections within government
• Ability to survive downturns earlier
• Financing raised on strength of own balance sheet
• Has built a professional organisation

Jet's Weaknesses

• A perceived drop in service standards when pitted against Kingfisher
• Struggling with the carcass of Air Sahara
• Poor people management skills of chairman
• Inability to raise money for the last two years

Kingfisher's Strengths

• Superior product on ground; in the air Jet business class is being equated with Kingfisher's economy
• UB group backing for raising financing
• Well capitalised airline, prepared to take losses
• Better handling of employees and staff; less centralised style of functioning
• Chairman Mallya's grand vision where it is looking to be among the best in the world
• The Deccan deal - which gives it market share, a new market segment and was cheap

Kingfisher's Weaknesses

• Kingfisher is yet to build itself into an organisation; structures yet to fall in place
• Not as professionally run as Jet; yet to build a professionally competent team
• Mallya's knowledge of the sector does not parallel Goyal's
• Chairman's people skills are better but employees have to work very erratic hours
• Unable to leverage connections to the same extent while lobbying
• Kingfisher's loads are lower than Jet's, which could be a reflection of its marketing and sales ability

Dr. Vijay Mallya on CNBC Devil's Advocate

Part 1



Part 2

Formula One cars will zoom in India in 2010 - Mallaya

Formula One is all set to come to India in 2010.

The announcement from Suresh Kalmadi, chief of Indian Olympic Association, about the near certainity of hosting Formula One Grand Prix in the outskirts of New Delhi in 2010 came close on the heals of Vijay Mallaya's offer to purchsae the F1 team of Spyker NV for $109 million.

Chief Architect of Formula One tracks, Hermann Tilke, was in India earlier this month to inspect sites for the proposed race.

Kalmadi said that Bernie Ecclestone, chief of International Automobile Federation (FIA), had handed over 2 draft contract when they met in London.

The draft contracts signed between Kalmadi and Bernie were for race promotion of the Grand Prix of India in F1 World Championship and the circuit rights agreement.

FIA organized a series of Formula One races in several countries all round the year. The world championships are decided on the basis of the points gathered by the different teams and their drivers in these races.