---

Staff post about: Vijay Mallya Become an Author

Tweet

---

---

"When we launched Kingfisher [Airlines], we had certain very clear-cut parameters, brand-new planes, commonality, fuel bases between fuel efficiency and controlled costs, and then of course we did a huge market research on the name, the brand, the consumer expectations," recalls Mallya. And yet, despite all of his hard work, the company is struggling to turn a profit. So why does he continue to put so much into it? "No airline in India is profitable because you know, in any industry where the floodgates are suddenly open, a lot of players dive in, and there is a period where there's a bloodbath, but then consolidation inevitably takes place, good sense prevails, and then everybody becomes profitable," he says. "And in a country like India where aviation growth is almost 40 percent every year, I mean, it's probably one of the most attractive sectors."

Mallya is a businessman who sees an opportunity and takes it, whether or not it is going to be profitable in the short term. He makes his decisions based on promise and potential, not on timeframes and bottom lines. Where did that lesson come from?

"I remember in 1977 when Morarji Desai was prime minister of India, he advocated prohibition for all of India, and obviously the values of all liquor companies and breweries collapsed," Mallya recalls. "My father actually went out and acquired these companies at pretty cheap values, which propelled UB into being a significant player in the industry. So he bucked the trend and had the guts and the foresight to buck the trend.

"I remember having asked him why he was doing it, and he said government revenue depends too much upon this industry, particularly at the state level, and we are very large contributors. So prohibition has never succeeded anywhere in the world, not even in the United States. It's not going to succeed in India, and so I'm going to decide to grab the opportunity when I can."

Because of his father's example, Mallya is relatively fearless when it comes to following his gut instinct, even when it flies in the face of common sense. For instance, after acquiring Aid Deccan, India's largest low-cost carrier, Kingfisher Airlines became the country's largest airline. But Mallya wanted to expand, and not in the way that everyone else was doing it.

"Going overseas is natural, there's huge growth," he says. "And while everybody else wants to emulate the established carriers of Europe and the Far East and the Middle East, I decided that the future was in non-stop ultra-long-haul travel. We're going to fly from Bangalore to San Francisco non-stop, Bangalore to New York John F. Kennedy non-stop, and of course Bombay-London is a given."

Similarly, he placed orders for the A380 aircraft despite several problems that led many of his competitors to avoid it. "I bought the A380 because I believe in the A380," he says. "I know they've had delivery problems, but that's not uncommon for any new aircraft that's so different and so revolutionary in terms of technology. So while there's a delay on one hand, I have to say the A380 to me still demands an extremely compelling, profitable proposition."

For Mallya, the promise is always in the proposition.

Related Articles

  The Gravity of Failure
  Whats In It For Them
  What value do you bring to your customer's table?
  Who Is Your Proud Family?
  Three Marketing Lessons from Realtors
  Great Ideas for Work at Home Moms
  Lesson #5: “Hard times are an opportunity for growth”
  Frustrated Network Marketer - Needs vs. Wants
  I'm Not Interested
  Entrepreneur – How Not To Have A Bad Employee?
  What Does Your Gut Say?
  Build It and They Willl Come?
  To Infinity and Beyond! - Human Resource Latest Trends
  Lesson #5: Trust Your Gut
  You Coach but Do Your Salespeople Follow Through?
  Why Use Feedburner for Feeds
  Take a Risk Like Tammy Faye- How To Do Business With Color
  Are You A Network Marketing Pit Bull, Lab Or Mix?
  Selling swimming pools is the same as selling what you sell
  Liven up eLearning course to engage learners with funny quiz

Related Forum Posts

Dan Kennedy Marketing Methods
Re: How do you stay motivated as a startup?
Re: Student Business Plan competition huge prizes submit NOW!
Re: Buy An Established Affiliate Marketing Website
Another favorite quote

Share this article. Fund someone's dream.

Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet