I think it was Capt. Gopinath's mistake. He created a brand, created reach and gave the poor people hope of flying. But what he forgot was that every company needs profits to be in shape. Vijay Mallya took over bcoz Air Deccan was in bad financial shape - almost on th everge of bankruptcy, as the article says. In this artice, Mallya is being projected as a villian, but actually Mallya has protected the interests of thousands of Deccan employees, and also brought huge financial support and economic sense for Deccan. As for Gopinath, he has made a lot of money, which this article does not tell.
RE:Bad financial mangement
by arvind kamath on Jan 01, 2008 12:33 PM Permalink
Dear Argentina, I do agree to all your points, one exception being that mallya has protected the interests of the employees, if not for gopinath, mallya would have squeezed all the employees out and would have put them in a limb0 by not paying their legal dues, dont take mallya to be a saint, thousands of his employees in his operations in africa and india can vouch for it. I do have personal experience with one of his loss making ventures, mallya is a moron who is behind the good things of life thats why he is king of good times, he is only successful in those business where the profit margins are above 100%like liquor all his other expansions or new ventures have been great flops like UB air, UB engg, UB Pharma, UB fertilizers the list is endless.
RE:Bad financial mangement
by Sathish N on Jan 01, 2008 12:30 AM Permalink
True that Mallya has protected the interests of thousands of Deccan employees. But, don't attribute it to any altruistic streak. Mallya increased his share of the market pie. No doubt, a good business strategy, but don't give it a hero's spin.
