Fugitive businessman Vijay Mallya, who is facing fraud and money laundering charges amounting to ₹9,000 crore, has opened up about the downfall of Kingfisher Airlines in a podcast interview with Raj Shamani.
Reflecting on the demise of Kingfisher Airlines, Mallya pointed squarely to the 2008 global financial meltdown. “So agreed then it worked in your favour till 2008. What happened then? Simple. You ever heard of Lehman Brothers? You ever heard of the global financial crisis, right? Did it not impact India? Of course, it did,” he said.
He continued, highlighting the broader economic fallout: “Every sector was hit. The money stopped. It got dry. The value of the Indian rupee also took a hit.”
Kingfisher Airlines’ rise and fall
Kingfisher Airlines, launched with much fanfare in 2005, quickly gained a reputation for luxury service but struggled financially as economic conditions worsened. Mallya claimed that he had approached then finance minister Pranab Mukherjee with a plan to downsize 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,” he said.
According to Mallya, his plea was met with resistance. “I was told not to downsize. You continue, banks will support you. That is how it all started. Kingfisher Airlines has been forced to suspend all of its flights. Kingfisher Airlines has been struggling. At the time when you asked loan, the company was not doing that great,” he said.
Mallya left India in 2016 and has since been residing in the United Kingdom. He is currently fighting extradition to India.
Also read: Vijay Mallya asked if he would return to India on podcast. His ‘fair trial’ reply
Full Vijay Mallay interview with Raj Shamani
Mallya on being called a ‘chor’
On the podcast, Mallya also addressed the label of “fugitive” and challenged the public perception of him as a thief. “Call me a fugitive for not going to India post-March (2016). I didn’t run away, I flew out of India on a prescheduled visit. Fair enough, I did not return for reasons that I consider are valid, so if you want to call me a fugitive, go ahead, but where is the ‘chor’ coming from… where is the ‘chori’?” he asked.
Earlier this year, Mallya told the Karnataka High Court that the ₹6,200 crore he owes to Indian banks has been “recovered multiple times over.” He requested a full accounting of the amounts recovered from him, United Breweries Holdings Limited (UBHL, now under liquidation), and other associated parties.