Vijay Mallya On Kingfisher Airlines Downfall: "I Went to Shri Pranab Mukherjee"
Fugitive businessman Vijay Mallya, facing fraud and money laundering allegations, has revealed new details about Kingfisher Airlines' downfall. He said he approached then Finance Minister Pranab Mukherjee with a plan to downsize the airline to save it. According to Mr Mallya, his request was met with opposition.
In a conversation with YouTuber Raj Shamani, Mr Mallya revisited the collapse of Kingfisher Airlines, attributing much of the airline's troubles to the 2008 global financial crisis. He said that Kingfisher Airlines operated smoothly until 2008, but the situation changed drastically with the onset of the global financial crisis. The economic downturn had a significant impact on India, affecting nearly every sector of the economy, he said.
'The money stopped. It got dry. The value of the Indian rupee also took a hit,' Mr Mallya said.
Kingfisher Airlines was launched in 2005, and it earned praise for its premium service. However, financial difficulties escalated as the global economy faltered. Mr Mallya said that recognising the worsening economic climate, he reached out to Pranab Mukherjee to seek permission to shrink Kingfisher's operations.
'I went to Shri Pranab Mukherjee...and said I have a problem. Kingfisher Airlines needs to downsize, cut the number of aircraft, and lay off employees, as I can't afford to operate under these depressed economic circumstances,' Mr Mallya said.
Mr Mallya claims his appeal was rejected. 'I was told not to downsize. You continue, banks will support you. That is how it all started.'
Mr Mallya added that despite these assurances, Kingfisher Airlines was ultimately compelled to halt all flights amid mounting financial troubles.
During the podcast, the liquor baron also addressed allegations around his financial dealings, claiming he made four settlement offers to banks that were rejected despite his clear intent to repay. He criticised the lack of transparency from banks, stating he never received a formal statement of account despite 15 reminders, and that the total debt of Rs 14,131.6 crore was only revealed through a finance minister's statement in Parliament.
Citing a Debt Recovery Tribunal certificate, Mr Mallya disputed media reports of Rs 9,000 crore debt, insisting the documented figure is Rs 6,203 crore. He also questioned being labelled a 'chor' despite having repaid more than what was owed and said he is prepared to stand trial — not for wrongdoing, but for alleged bad intentions.
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