Welcome to NC Airways

Hotels and Flight Bookings Made Easy

Book all your Domestic Flights Here

We provide the best travel services at reasonable rates.
We book flight tickets, hotels and holiday packages at the cheapest rates.
You can book domestic & international flights at cheapest price. Offering a memorable travel experience at the lowest price is our purpose..

-Book All Major Airlines with Cash Back Offers
-Lowest Price Guarantee
-Flight Booking Available at Lowest Price
-Buy before 31st December 2020 and get Rs 151 cashback which gets credited into your account

Aviation – India and the World: News and Views

Kingfisher's Vijay Mallaya Declared Willful Defaulter by SBI, Assets to be e-auctioned

While its contemporaries survived and made profits, Kingfisher just could not do its business. Its workforce could not even get its full salaries.

After a long legal battle, State Bank of India has declared industrialist Vijay Mallya, Kingfisher Airlines and its holding company United Breweries Holdings as willful defaulters for defaults on nearly Rs 7,000 crore loans to the long-grounded Kingfisher Airlines. 

Analysts believe that the Kingfisher episode in the history of Indian Aviation has discouraged many FIIs to invest in India despite FDI norms being liberalized. So, other operators are anticipating its logical conclusion soon to happen, if the aviation sector in India has to move forward.

May 2005 

Kingfisher Airlines, started by the flamboyant liquor baron Mallya with much fanfare. It went on to become the second largest airline even though it never made a single rupee in profit.

Early 2010.

The airline, Mallya had taken Rs 6,900 crore from a consortium of 17-lenders led by SBI after a second debt restructuring for the airline.

October 2012

As cash flow issues mounted on the airline, it was grounded. 

December 2012

The airline lost its flying licence.

February 2013

The bankers, recalled the loan.

September 2014

United Bank became the first lender to declare Kingfisher Airlines, Mallya and three other directors as willful defaulters.

December 2014 

A three-judge bench of the Calcutta High Court set aside this single-bench decision on technical grounds.

February 2015

SBI took over the possession of the airline's prime property Kingfisher House, near the city airport, after a fiercely fought court battle. The 17,000 sq. ft. property at Vile Parle near the domestic terminal valued at around Rs 100 crore was then auctioned. 

August 2015. 

Bombay High Court allowed Mallya to be represented by his legal counsels.
SBI moved the Supreme Court challenging the HC order, saying that HC order violated the RBI rules on grievance redressal committee that allow only the borrower to present his case in person.
The Supreme Court upheld the High Court verdict and asked SBI to consider this only as "a one-off instance" and allow Mallya's lawyers to represent him at the grievance redressal committee meeting which was held recently.
However, the lawyers could not properly present any case of genuine distress of Mallya or his companies in not paying the money they owe to the lenders.

Following all this, SBI declared Mallaya, Kingfisher and United Breweries as willful defaulters. 
Deepika Padukone was one of Mallaya's Calendar Girls

Mallya can still challenge the label in the apex court through review petitions, according to banking experts. Meanwhile, following the development, the 17 lenders to the airline have decided that they would e-auction the remaining assets of the grounded airline, in their latest bid to partly recover their dues of around Rs 7,000 crore and accrued interest on the principal. Banks are now charging 15.5% compounded interest on this principal amount, which have not been serviced since January 2013. This would take is overall dues to over Rs 8,000 crore.

Among the lenders, SBI has an exposure of over Rs 1,600 crore to the airline.

Out of this, the lenders could recover only around Rs 1,100 crore after selling pledged shares of UB Group of companies so far.

Other banks that have exposure to the airline include 
  • Punjab National Bank - Rs 800 crore
  • IDBI Bank - Rs 800 crore 
  • Bank of India - Rs 650 crore, 
  • Bank of Baroda - Rs 550 crore
  • Central Bank of India - Rs 410 crore
  • UCO Bank - Rs 320 crore
  • Corporation Bank - Rs 310 crore
  • State Bank of Mysore - Rs 150 crore
  • Indian Overseas Bank- Rs 140 crore
  • Federal Bank - Rs 90 crore
  • Punjab & Sind Bank - Rs 60 crore and 
  • Axis Bank - Rs 50 crore.
Lenders have now decided to e-auction the assets of the grounded airline in a bid to salvage something out of their dues which have not been serviced since January 2013 by Mallaya and his Cos.

The assets to be e-auctioned on December 7 include the equipment and movable assets of the airline and not the bigger properties like the Kingfisher House and the Kingfisher Villa in Goa now worth around Rs 90 crore. Both have already been taken over by the lenders earlier.
Couldn't quite take-off

In a notice issued, SBICap Trustee, which is a security trustee for the lenders consortium to the airlines, said it would e-auction the cars, towing machines, forklifts, tractors, fire extinguishers, and iron ladders among others of the airline under their possession.

SBICap Trustee, which is an arm of SBI, has set a reserve price of Rs 65 lakh, and said the auction will be conducted on December 7.