Vijay Mallya Podcast: Rise & Downfall Of Kingfisher Airlines, Loans & RCB | FO364 Raj Shamani
Vijay Mallya breaks a nine-year silence on the fall of Kingfisher Airlines, the ₹9,000 crore loan saga and his life in exile. He walks us through childhood lessons, building booze brands, launching an airline, owning RCB and a Formula 1 team, and why he still fights to clear his name.
Key Takeaways
- First public interview in 9 years, challenging media narratives.
- How Kingfisher Airlines launched, grew to 27% market share, then collapsed.
- Debt figures: ₹6,203 crore certified vs ₹14,100 crore recovered by banks.
- Building the Kingfisher beer brand, RCB cricket team and Force India F1.
- Ongoing legal battles: loans, passport revocation, and extradition issues.
Early Beginnings and Family Influence
Born in Kolkata, raised in Bangalore, Vijay Mallya had a strict upbringing under his father, who warned him that only education was guaranteed if India’s policies wiped out family wealth.
• He worked college mornings and UB brewery office afternoons on a ₹400 stipend.
• Time in the US and UK taught him marketing, production and hard work.
• He returned to run United Breweries at 27, replacing his late father.
Building The Alcohol Empire
Mallya saw a dusty Kingfisher beer label from 1857 and pitched a fun, colorful brand around “good times.” Unable to advertise booze on Indian TV, he used surrogates like music cassettes and water marketing.
• Sponsored rock concerts, fashion shows and sports events.
• Gave Kingfisher a distinct personality, becoming its own brand ambassador.
• Expanded spirits business by buying Shaw Wallace in 2005 for $300 million, later creating United Spirits.
The Kingfisher Airlines Dream
In 2005, inspired by low-cost carriers, he launched Kingfisher Airlines with a single-class model plus free meals and in-flight entertainment.
• Grew to India’s largest airline with 27% domestic share by 2008.
• Added business class (Kingfisher First) when demand rose.
• Bought rival Deccan Airways for consolidation, not a back-door to overseas flights.
Rising Storm: Crisis and Collapse
The 2008 global financial crash hit fuel prices and traffic. Mallya pleaded with Finance Minister Pranab Mukherjee to avoid layoffs and shrink the fleet—banks kept lending.
But:
- High oil prices and state taxes doubled fuel costs.
- Delayed passenger refunds and airport fees strained cash flow.
- Four failed settlement offers to banks (2012–15).
Kingfisher shut in October 2012. Mallya infused ₹3,000 crore of his own cash but calls for fuel subsidy, foreign investment (blocked until later for Jet), and regulatory relief went unheard.
Trials, Allegations and Exile
Mallya faced charges of misrepresentation, loan defaults and money laundering:
• 2015: Passport suspended and revoked while he flew to a pre-scheduled FIA meeting.
• CBI claimed ₹423 crore siphoned; ED alleged ₹3,547 crore laundered.
• Banks hold a ₹6,203 crore debt recovery certificate; government says ₹14,100 crore recovered.
• Mallya denies siphoning: loans guaranteed by him and UB Holdings, assets pledged by banks.
• Extradition fight in UK courts over “willful default,” visa revocation and alleged misrepresentation.
Diversification: RCB and Formula 1
Mallya used sports to promote brands, not vanity:
• Bid $112 million for cricket’s Royal Challengers Bangalore in 2008, boosting Royal Challenge whiskey sales.
• Force India F1 team put India on the Grand Prix grid, named to fly the tricolor and advertise Kingfisher and Royal Challenge.
• Launched the Kingfisher calendar as a marketing tool; models like Deepika Padukone first appeared there.
Life In Exile and Ongoing Fight
Living in the UK since the 1980s, Mallya enjoys classic cars, six dogs and running his overseas brewery businesses.
• Passport revocation in April 2016 left him unable to return and defend himself in India.
• He filed a petition in Karnataka High Court demanding bank statements of account.
• Continues to pay legal fees, fight extradition, and assert innocence.
Looking Ahead
Mallya remains optimistic about clearing his name and returning if assured a fair trial. He apologizes for staff unpaid salaries—court orders blocked payouts—but denies misuse of airline funds.
Whether dubbed a showman or chore, he stands by his record: building winning brands, sports franchises and a legacy that extends beyond one failed airline. Only a court of law can decide his fate now.
