Kingfisher to suspend all international flights, says Vijay Mallya

New Delhi:  Kingfisher Airlines, owned by liquor baron Vijay Mallya, has decided to end its international flights. The airline, which has a debt of 7000 crores, has committed today to running 125 domestic flights everyday using 20 aircraft. Its fleet number was 64 till a few months ago. Mr Mallya has promised, that unlike in the last few months, these flights will not be cancelled at the last minute because of the airline's expansive financial problems.
Mr Mallya had been summoned to meet the Directorate General of Civil Aviation (DGCA) today to explain recovery plans. Earlier, Civil Aviation Minister Ajit Singh warned that Kingfisher could lose its license if it was not able to furnish a believable turnaround strategy, or if the DGCA found safety being compromised. DGCA chief Bharat Bhushan told NDTV today that a special team conducts safety checks on Kingfisher flights every day to ensure passengers are not at risk.
"The problem is, last two-three months, he has given several plans and he has not adhered to any of them," Mr Singh said. "If passenger safety is compromised, we'll not let any airline fly. Safety norms also involve financial viability," he added. After the meeting with Mr Mallya, the DGCA chief said he had no plans for now to revoke Kingfisher's license.
Mr Mallya said that operating international flights does not make sense given that it has been suspended by IATA which helps airlines by serving as the middlemen between them and various service providers like caterers and ground handlers for passengers and baggage at different airports. Without IATA, Kingfisher would have to handle these payments directly in different currencies - a logistical nightmare. Mr Mallya said that he is not setting an ambitious target for the summer, and said he is hopeful of foreign investment. The government is considering a proposal to allow foreign airlines to own upto 49% of Indian carriers.
Kingfisher employees including pilots have not been paid for several months. Recently, the airline has blamed this on the income tax department which has frozen several of its accounts. Today, Mr Mallya said he hopes to clear all outstanding bills soon for employees.

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Kingfisher to have full recovery plan in 2-3 days: Vijay Mallya

Cash-strapped Kingfisher Airlines will have a full recovery plan in place in 2-3 days, chairman Vijay Mallya said on Thursday.

One foreign airline and two non-airline foreign investors are interested in buying stake in the carrier, Mallya told reporters after a meeting with the debt-laden airline's pilots, who have been protesting against delayed salaries.

Mallya today met with striking pilots to end a row over unpaid wages that has led to cancellation of scores of flights.

Mallya did not disclose details of the meeting, but said it was a "productive" one.

"The pilots are extremely supportive to the company," Mallya said while addressing the media after his meeting.

Mallya said his top priority now would be to pay the pilots their salary. He also assured the press that KFA's flights would be on time.

The pilots' strike has forced the cash-strapped carrier to cancel more flights on top of those it scrapped last month to reduce expenses.

Kingfisher, which earlier this week announced it was curtailing its overseas flights in order to lower costs, had initially announced it was cutting its daily flight schedule to 175 from around 250.

The pilots' strike has further reduced the number of flights to around 100 a day.

At least 60 pilots have already left the airline to fly with rivals according to PTI.

The carrier has never turned a profit since its launch in 2005 and owes millions of dollars to suppliers, lenders and staff.

Its bank accounts have been frozen by authorities due to the non-payment of taxes and it has been dropped from a vital global payments and booking system run by the International Air Transport Association (IATA).

The airline's net loss widened sharply to Rs 4.44 billion ($88 million) in the three months to December from a loss of Rs 2.54 billion a year earlier, while its debt totals at least $1.3 billion.

India's airline industry - once a symbol of the country's economic progress - is now plagued by high fuel prices, fierce competition, price wars and inadequate airport infrastructure, with Kingfisher one of the worst-hit firms.

The airline has said "positive and immediate action is being taken on all fronts to cut costs".

Kingfisher's market share has slid to fifth position at 11.3 per cent, from second earlier, according to data on the civil aviation regulator's website.

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Vijay Mallya pumps in $ 32 million into Force India

London: Sahara Force India team principal Vijay Mallya has pumped in $32 million into his Formula One team ahead of the season opener in Melbourne on Sunday.

Watson, the personal investment company used by the liquor baron, has loaned Force India nearly $10 million while Mallya's Kinghfisher Airlines and his beer and spirit arm has generated the remaining $22 million through sponsorship, The Scotsman reported Monday.

The Silverstone-based team is eying to better its last year's sixth place finish in the 2012 Constructors' Championship.

Force India found a co-owner Subrata Roy led Sahara Group last year when the Indian company bought a 42.5 percent stake in the F1 team. Sahara said that it would invest a further $100 million into the mid-field outfit.

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Vijay Bahaguna sworn in as new Uttarakhand Chief Minister after Harish Rawat rebels

Dehradun/New Delhi:  Vijay Bahuguna has been sworn in as the new Chief Minister of Uttarakhand. It was a short ceremony on Tuesday evening, with only Mr Bahuguna taking oath. Getting his government together is likely to be less simple - in resolutely appointing Mr Bahuguna the Congress has ignored the loud rebellion of veteran leader Harish Rawat, who says he should be CM and claims he has the support of many Congress MLAs. Less than half of the Congress' 32 MLAs attended the ceremony in Dehradun.
Many of them were reportedly in Delhi with the sulking Mr Rawat, who has been looked over before by the party leadership, and has written to Congress president Sonia Gandhi. He is said to have threatened to quit the party. Mr Rawat scoffs at his party saying that not too many MLAs support him. "The Congress General Secretary said Harish Rawat has the support of just six MLAs...so if that were true how come only eight Congress MLAs attended the swearing-in ceremony? Where were the rest? My point has been proved," he said to NDTV on Tuesday evening.
Mr Bahuguna, whose problems seem to have only just begun, said before being sworn in, "This is a family matter and will be solved within the family...We will convince everyone...This party is like the Himalayas, it can't be broken."
The BJP clearly thinks differently. It got one seat less than the Congress' 32 in the state and still smells a chance; BJP leaders in the state say they will still form the government in Uttarakhand. Towards that objective, the party is happy to fuel the Congress fire. Sources say Harish Rawat has already met BJP chief Nitin Gadkari; if Mr Rawat quits the Congress, the BJP is said to not be averse to supporting a government led by him.
Both the BJP and Mr Rawat's camp have officially denied any meeting, but BJP leader Dharmendra Pradhan said before Mr Bahugana was sworn in, "Bahuguna does not enjoy majority support among Congress MLAs. The Congress is breaching constitutional norms. If the Governor administers oath to Bahuguna, it will allow the Congress to indulge in horse trading to whip up support."
Here are the top 10 facts of this moment in this fast-developing story:
1) Harish Rawat, a veteran Congress leader from the hill state, has written a letter to Congress president Sonia Gandhi protesting against the "injustice meted out" to him. Mr Rawat contends that he should be the Chief Minister and says he has the support of a majority of the Congress's 32 MLAs. Mr Rawat is a Union Minister and he has reportedly asked Mrs Gandhi to relieve him of his ministerial duties if the party does not believe in him. There are reports that the sulking Mr Rawat might leave the Congress to form his own party along with the MLAs who support him.
2) Though Mr Rawat was a front-runner for the CM's post, the Congress picked Vijay Bahuguna for CM. Vijay Bahuguna is the brother of Rita Bahuguna Joshi, the Congress' president in neighbouring UP. Sources say though  Mr Rawat enjoys the support of many MLAs, the party leadership did not pick him for CM as he had put up many rebel candidates in these elections, which the Congress had expected to win comfortably, but did not.
3) Mr Rawat is in his home in Delhi right now. He says he has the firm support of at least 11 MLAs. With him at his house are 17 Uttarakhand MLAs. Rawat supporters have been raising slogans today demanding that the party leadership do a rethink on who should be CM.   
4) The Congress leadership has held an emergency meeting but has been firm that it will not change its mind. The message from Delhi is that Vijaya Bahuguna will be the Chief Minister of Uttarakhand. For the Congress, it is not as easy as making problems vanish by picking Mr Rawat instead of Mr Bahuguna. Both of these local leaders and another one, Harak Singh Rawat, enjoy pockets of influence and the party will face problems whoever it picks.     
5) Harish Rawat did not attend the swearing-in ceremony in Dehradun. 24 MLAs stayed away too.
6) It is a numbers game in Uttarakhand. In the 70-seat House, neither of the two main parties got the 35 seats needed for simple majority. The Congress got 32 and has managed to stake claim with the support of seven others including three BSP MLAs and four Independents, who have made it clear that only Vijay Bahuguna is acceptable to them as CM.
7) The BJP is breathing down the Congress' neck with 31 seats. And still thinks it is in with a chance at forming the government in the state. "We have said from day one that BJP will form the government in Uttarakhand," said BJP leader Bhagat Singh Koshiyari today, from the sidelines of the Congress high drama.
8) The Congress announced that Mr Bahuguna would be CM after three days of deliberation, on Monday. The factional feud then came out in the open with Mr Rawat's supporters protesting against the announcement. Raising slogans, angry supporters of Mr Rawat gathered at his house here last night, wanted to know why he was ignored for the top slot and egged him to split the party.
9) This is the second time that Mr Rawat's claim has been ignored. About ten years ago, ND Tiwari was made the Chief Minister almost at the 11th hour by the party leadership.
10) In a bid to placate a sulking Mr Rawat, Mr Bahuguna, his sister and UPCC chief Rita Bahuguna Joshi met the union minister at his residence. Asked what transpired at the meeting with the brother-sister duo, Mr Rawat said, "They had come to console a loser".

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Vijay Bahuguna to be sworn in as Uttarakhand Chief Minister today; Harish Rawat quits

Dehradun:  Taking a firm stance, the Congress decided to go-ahead with the swearing-in ceremony of Vijay Bahuguna as the Uttarakhand Chief Minister today. Congress leader and union minister Harish Rawat has reportedly threatened to quit the party unless he is made the Chief Minister of the state. Anguished at Vijay Bahuguna being chosen as the Chief Minister, Mr Rawat has reportedly threatened to leave the Congress and take MLAs with him. He has reportedly claimed support of 11 MLAs. Sources say Mr Rawat, who is the Union Minister of State for Agriculture and Parliamentary Affairs, could form his own party in the state.

The swearing-in ceremony of Mr Bahuguna as the new Chief Minister is scheduled to be held at 5 pm today.  

According to sources, Mr Rawat has written a letter to Congress President Sonia Gandhi, saying, "he cannot execute his duties" as a Congress leader anymore unless he is made the Chief Minister of Uttarakhand.

This was the second time that Mr Rawat's claim has been ignored as some ten years back ND Tiwari was made the Chief Minister almost at the 11th hour by the party leadership.

The Congress, however, attempted to play down the reported revolt by Mr Rawat and his MLAs in Uttarakhand.

"The decision was taken after taking the opinion of the majority. There may be some disappointment with the decision, but I am sure with time, all leaders and their supporters would back the decision," said union minister and Congress leader Ambika Soni.

The Bharatiya Janata Party (BJP), which had to settle with one seat less than the Congress' tally in the Uttarakhand elections, now is sniffing an opportunity and it seems it hasn't given up its hopes on forming the government in the state.

"We have said from day one that BJP will form the government in Uttarakhand," said BJP leader Bhagat Singh Koshiyari today.

Mr Bahuguna's name as Uttarakhand's new Chief Minister was announced by Union Health Minister Ghulam Nabi Azad in Delhi on Monday. The announcement of the Chief Minister came after a considerable delay with Congress leaders and MLAs caught in discussions for around three days after staking claim to form the government.

Mr Rawat and Mr Bahuguna had held a two-hour meeting with Mr Azad and Birender Singh ahead of the decision.The two central leaders had then submitted their report on the views of the party's 32 MLAs on legislative party leadership to Sonia Gandhi on Sunday.

"It was decided by the MLAs and all the party leaders that Vijay Bahuguna will be the chief minister," Mr Azad announced on Monday evening. He also recalled that the party MLAs had, in their meeting after the results were out, authorised Congress president Sonia Gandhi to name the chief minister.

Congress, with 32 seats in a house of 70, had staked its claim to form a government in the Himalayan state late last week after the results on March 6 threw up a hung assembly.

Yesterday, the factional feud came out in the open in Congress' Uttarakhand unit with legislators supporting Mr Rawat protesting the announcement of Mr Bahaguna as the Chief Minister. Raising slogans, angry supporters of Mr Rawat, who gathered at his house here last night, wanted to know why he was ignored for the top slot and egged him to split the party.

In a bid to placate a sulking Mr Rawat, Mr Bahuguna, his sister and UPCC chief Rita Bahuguna Joshi met the union minister at his residence. Asked what transpired at the meeting with the brother-sister duo, Rawat said, "They had come to console a loser".

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Vijay Bahuguna to be new Uttarakhand Chief Minister

New Delhi/ Dehradun:  After nearly a week of deadlock, Uttarakhand will get a chief minister with the Congress naming its Tehri-Garhwal MP Vijay Bahuguna as the leader of its legislative party.

Bahuguna's name was announced by party leader and Union Health Minister Ghulam Nabi Azad in New Delhi."It was decided by the MLAs and all the party leaders that Vijay Bahuguna will be the chief minister," Mr Azad announced.He also recalled that the party MLAs had, in their meeting after the results were out, authorised Congress president Sonia Gandhi to name the chief minister.

Congress, with 32 seats in a house of 70, had staked its claim to form a government in the Himalayan state late last week after the results on March 6 threw up a hung assembly.

The Bharatiya Janata Party has 31 seats in the Uttarakhand assembly. The Congress has won the support of three Bahujan Samaj Party MLAs, apart from three independents and the lone MLA from the Uttarakhand Kranti Dal.

"A decision has been taken that Vijay Bahuguna will be the leader of the legislature party in Uttarkhand and the new chief minister," Mr Azad said in the presence of Bahuguna and Congress general secretary Chaudhary Birender Singh, who is in charge of party affairs in Uttarakhand.

Soon after his name was declared for chief ministership, Mr Bahuguna, 65, thanked Sonia Gandhi and her son Rahul Gandhi and said, "I will take all sections of the party along and there will be no break up,"

Mr Bahuguna is the son of former Uttar Pradesh chief minister Hemwati Nandan Bahuguna and brother of present Uttar Pradesh Congress Committee president Rita Bahuguna-Joshi. He is a vice president in the Uttarakhand Congress unit. An advocate by profession, He has served as a judge of the Allahabad and Bombay High Courts. He also served as the vice chairman of the Uttarakhand Planning Commission.

The decision comes a day after Union Minister from the state Harish Rawat and Bahuguna held a two-hour meeting with Azad and Birender Singh.The two central leaders had submitted their report on the views of the party's 32 MLAs on legislative party leadership to Sonia Gandhi Sunday.

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