A non-performing loan ( NPL ) is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full. Non-performing loans represent a major challenge for the banking sector, as they reduce profitability. They are often claimed to prevent banks from lending more to businesses and consumers, which in turn slows economic growth , although this theory is disputed.
38-662: Kingfisher Airlines Limited was an airline group based in India. It was established in 2003 and started its commercial operations in 2005. Through its parent company United Breweries Group , it had a 50% stake in low-cost carrier Kingfisher Red . Until December 2011, Kingfisher Airlines had the second largest share in India's domestic air travel market. However, the airline ran into continuous losses since its inception, ran high debts and finally closed its operations on 20 October 2012. Its chairman Vijay Mallya subsequently fled to London to allegedly hide from creditors. Kingfisher Airlines
76-494: A Salvatore Ferragamo toiletry kit, pajamas, five-course meals, and alcoholic beverages. In-seat massagers, chargers, and USB connectors were also available. Every Kingfisher First seat had a 17-inch (430 mm) widescreen personal television with AVOD touchscreen controls. It offered 357 hours of programming content spread over 36 channels, including Hollywood and Bollywood movies along with 16 channels of live TV, so passengers could watch their favorite TV programs live. There
114-454: A few live TV channels powered by DishTV , and Kingfisher Radio. Passengers were served meals on most flights. Before take-off, passengers were served bottled lemonade . Kingfisher offered an international business/first product called Kingfisher First which featured full flat-bed seats with 180-degree recline, a pitch of 78 inches (2,000 mm) and width of 20 to 24.54 inches (508 to 623 mm). Passengers were given Merino wool blankets,
152-795: A number of schemes. Platinum, Gold and Silver members enjoyed access to the Kingfisher Lounge , priority check-in, excess baggage allowance, bonus miles, and Kingfisher First upgrade vouchers. Kingfisher Xpress was a Door-to-Door cargo delivery service launched in February 2010, being the first such service in India promising same-day pick-up in Mumbai, New Delhi, Bengaluru, Hyderabad, Chennai and Kolkata and delivery in up to 18 cities, namely, Bagdogra, Bengaluru, Chennai, Coimbatore, Delhi, Kochi, Goa, Guwahati, Hyderabad, Indore, Kolkata, Mumbai, Raipur, Ranchi, Lucknow, Nagpur, Pune and Srinagar. A money-back guarantee
190-627: A politically sensitive topic, culminating in 2017 with the decision by the European Council to task the European Commission to launch an action plan to tackle NPLs. The action plan supports the fostering of a secondary market for NPLs and the creation of Asset Management Companies (aka bad banks ). In December 2020, this action plan was revised in the wake of the COVID-19 pandemic crisis . Non-performing loans are generally recognised as per
228-540: The Airbus A330-200 . On the day of suspension of all international operations, 10 April 2012, Kingfisher Airlines served 25 domestic destinations within India. At that time, all routes were operated with the Airbus A320 family , ATR 42s , and ATR 72 aircraft. Kingfisher Employees had their dues prior to the carrier suspending its operations. Employee dues outstanding are worth approximately ₹ 300 Crore . Prior to
266-507: The Bombay Stock Exchange (BSE), he explained: "The company has incurred substantial losses and its net worth has been eroded. However, having regard to improvement in the economic sentiment, rationalization measures adopted by the company, fleet recovery and the implementation of the debt recast package with the lenders and promoters including conversion of debt into share capital, these interim financial statements have been prepared on
304-584: The Debt Recovery Tribunal . With this, Heineken's stake in the company increased to 61.5%, taking control of United Breweries. In May 2023, employees, terminated from service at the United Breweries factory located near Ranasthalam, Srikakulam on account of reduced orders, staged protest. The Pegasus , which is the symbol of the United Breweries, first found its place as the Group logo in 1941. Then,
342-615: The Helladic horse – associated with beer and nectar in Greek mythology – carried a beer cask between the wings, ostensibly because beer formed the core operations of the Group. Later, the beer cask was removed to represent the Group's multifaceted operations. Non-performing asset In the European Union , the management of the NPLs resulting from the 2007–2008 financial crisis has become
380-549: The Kingfisher brand , and owns various other brands of alcoholic beverages . United Breweries is India's largest producer of beer. United Breweries now has greater than a 40% share of the Indian brewing market with 79 distilleries and bottling units around the world. In 2005, UB financed a takeover of the spirits business of the rival Shaw-Wallace company, giving it a majority share of India's spirits business. The group no longer owns
418-535: The Mendocino Brewing Company in the United States. The UB Group was founded by a Scotsman , Thomas Leishman, in 1915, when he brought together Castle Brewery and Nilgiris Breweries (1857), Bangalore Brewing Co. (1885), British Brewing Corp. (1903), and BBB Brewery Co. Ltd. (1913). The Group took its initial lessons in manufacturing beer from South India-based British Breweries. At 22, Vittal Mallya
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#1732854798337456-410: The 1950s and 60s by acquiring other breweries. First was the addition of McDowell as one of the Group subsidiaries. This move helped United Breweries to extend its portfolio to the wines and spirits business. As a strategical measure, the Group moved into agro-based industries and medicines. The former is marked by Mallya acquiring Kissan Products. A long-term relationship with Hoechst AG of Germany
494-487: The 2020 has seen an actual decrease of non performing loans, the issue is expected to represent a major challenge for the banking industry in the post-COVID-19 era. The ECB has warned that the amount of NPLs in the Eurozone could reach up to 1.4 trillions euros of bad loans, however academic literature suggest the future rise of NPLs will be primarily driven by the pace of the economic recovery after COVID-19, and in particular
532-534: The IFE system, but later an alliance was formed with Dish TV to provide live TV in-flight. The frequent-flyer program of Kingfisher Airlines was called the King Club in which members earned King Miles every time they flew with Kingfisher or its partner airlines, hotels, car rental, finance and lifestyle businesses. There were four levels in the scheme: Red, Silver, Gold and Platinum levels. Members could redeem points over
570-601: The Indian aviation authorities. In July 2014, Kingfisher Airlines' indebtedness appeared as the country's state-owned banks' top non-performing asset after failing to repay loans of over ₹ 40 billion (US$ 480 million). On 2 March 2016 after nearly four years of the bankruptcy of Kingfisher Airlines, the consortium of 13 Indian Banks led by State Bank of India moved the Debt Recovery Tribunal to recover its dues which included Rs 9,000 crores owed by its promoter Vijay Mallya. By that time Mallya had left India for
608-750: The UK despite court proceedings by Indian banks initiated against him. Two years later the British Courts ordered extradition of Mallya after a prolonged legal battle and Mallya could be brought back to India if his appeal against the court order is not turned down. The airline's first long-haul destination was London , England, which was launched in September 2008. It had plans to launch long-haul flights to cities in Africa, Asia, Europe, North America and Oceania with deliveries of new aircraft. All long-haul routes were operated on
646-485: The basis that the company is a going concern and that no adjustments are required to the carrying value of assets and liabilities." This filing was widely covered by Indian and international print and electronic media and analysts. Kingfisher Airlines Lenders later stated they considered the company viable. On 15 November 2011 the airline released poor financial results, indicating that it was "drowning in high-interest debt and losing money". Mallya indicated that his solution
684-415: The deal. An initial name change to Simplifly Deccan, followed by Kingfisher Red, and promotion as the domestic budget Kingfisher airline failed to stem losses and Kingfisher suffered a loss of over ₹ 10 billion (US$ 120 million) for three consecutive years. Its low cost carrier Kingfisher Red shut on 2011 and 2012 employees were not getting salaries so they went on strike. In a disclosure statement to
722-535: The development of an "Amazon-style" platform to allow banks and investors to trade NPLs on a secondary market. Meanwhile the European Commission has revised its action plan in December 2020 by focusing on speeding up the fostering of a secondary market for NPLs and to offer support for national Asset Management Companies. The proposal was met with criticism by civil society groups. Non-performing property loans are found to lead to banking crises. The need to identify
760-508: The following criteria: In general, the management of NPLs is made difficult due to a variety of reasons: There are two main approaches for dealing with NPLs: In practice, both approaches can be used simultaneously, as illustrated by the European Commission's action plan on NPLs, while some authors have argued that systemic crisis generally require a more centralized approach. Proactive measures to tackle NPLs include: Although
798-462: The following, already heavily downsized fleet: At the time the airline ceased operations, it had Airbus A320, Airbus A350 and Airbus A380 aircraft on order. The domestic Kingfisher First, offered on some Airbus A320 family aircraft only, provided seats with a 48-inch (1,200 mm) and 126-degree recline. There were laptop and mobile phone chargers on every seat. There was also a steam ironing service onboard Kingfisher First cabins. Every seat
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#1732854798337836-571: The freezing of the bank accounts of the airline by the Indian Income Tax Department, the airline was in financial disarray. On 20 October 2012, Kingfisher Airlines suspended its operations after its licence was suspended by the Directorate General of Civil Aviation after it failed to address the Indian regulator's concerns about its operations. On 25 February 2013, its international flying rights and domestic slots were scrapped by
874-590: The level of unemployment. In the context of the COVID-19 crisis, the deactivation of debt payment moratoria and tax deferral are also likely to cause an increase of NPLs. To prepare for the likely new wave of NPLs, the ECB Supervisory Board 's chair Andrea Enria has proposed the creation of a European Bad Bank and has imposed a ban on dividend distribution by banks, in a move to pressure banks to proactively tackle NPLs. The ECB has also indicated to work on
912-444: The relationships between macroeconomic factors and NPLs had been crucial for governments and financial institutions to monitor the economy and undertake necessary policies or decisions to control and reduce the number of NPPLs in the financial system. The economic crisis caused by a rise of NPPLs in any particular country had been known to spread to other economies, as seen in the United States of America’s subprime mortgage crisis. During
950-494: The seat into a fully flat bed and a Flight Attendant making the bed when the passenger is ready to sleep. The international Kingfisher Class seats offered a pitch of 34 inches (860 mm), a width of 18 inches (460 mm) and recline of 25 degrees (6 in [150 mm]). Passengers received full-length modacrylic blankets and full-size pillows. Each Kingfisher Class seat had a 10.6-inch (270 mm) widescreen personal television with AVOD touchscreen controls. The IFE
988-530: The sub-prime mortgage crisis, the ASEAN Economic Community (AEC) has gone through difficult periods of volatile NPPLs and the issue of NPPLs remains a major challenge amongst ASEAN member countries. Early research of NPLs was dominated by internal procedures and specific attributes of the lending banks in approving, controlling and monitoring the loans to ensure they remain active and not impaired. In recent years, research showed that property loans made up
1026-451: The suspension from IATA, Kingfisher had codeshare agreements with: Kingfisher Airlines' fleet mainly consisted of ATR 42 , ATR 72 and Airbus A320 family aircraft for domestic and short-haul services; and, Airbus A330-200s for international long-haul services. The ATRs and a few aircraft from the A320 family were used for Kingfisher Red services. By October 2012, Kingfisher Airlines had
1064-477: The tax department at the time. By early 2012, the airline accumulated losses of over ₹ 70 billion (US$ 840 million) with half of its fleet grounded and several members of its staff going on strike. Kingfisher's position in top Indian airlines on the basis of market share had slipped from second to last due to the crisis. Mallya was looking for buyers for the Vile Parle Kingfisher House. With
1102-531: Was also a collection of interactive games, a jukebox with customizable playlists, and Kingfisher Radio. Passengers are given BOSE noise-cancellation headphones. The service on board the Kingfisher First cabins included a social area comprising a full-fledged bar staffed with a bartender, a break-out seating area just nearby fitted with two couches and bar stools, a full-fledged chef on board the aircraft, and any-time dining. A turn-down service included converting
1140-687: Was also established, resulting in the creation of an Indian pharmaceutical company, Aventis Pharma . (Currently the Indian subsidiary of the global pharmaceuticals major Sanofi-Aventis ). UB Group had a relationship with United Spirits Limited , now majority-owned (54.8%) by Diageo . The conglomerate was headed by Vijay Mallya , who left India on 2 March 2016, allegedly to escape legal action by Indian banks to whom he owed an estimated ₹9,000 crore (US$ 1.1 billion) in loans. In June 2021, Heineken N.V. bought out Mallya's 15% stake in United Breweries Limited for ₹5,825 crores (US$ 730 million) from
1178-473: Was being eyed at that time). It later transpired that the airlines was already heavily in debt and going each year in heavy losses. In November 2011, it started to report losses. The acquisition of loss-making Bengaluru-based Air Deccan in 2007 made matters worse. It was believed that Vijay Mallya and his team failed to follow due diligence with the airline and that it was this deal that brought down his empire; courtesy of N M Rothschild consultants who brokered
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1216-475: Was elected as the company's first Indian director in 1947. After a year, he replaced R. G. N. Price as the company's chairman. United Breweries made its initial impact by manufacturing bulk beer for the British troops before independence which was transported in huge barrels or "Hogsheads". Kingfisher, the Group's most visible and profitable brand, made a modest entry in the sixties. The company expanded greatly during
1254-547: Was equipped with a personalised IFE system with AVOD which offered a wide range of Hollywood and Bollywood movies, English and Hindi TV programmes, 16 live TV channels and 10 channels of Kingfisher Radio. The domestic Kingfisher Class had 32 to 34 inches (810 to 860 mm) seat pitch. Every seat was equipped with personal IFE systems with AVOD on board the Airbus A320 family aircraft. As in Kingfisher First, passengers could access movies, English and Hindi TV programmes,
1292-494: Was established in 2003. It was owned by the Bengaluru based United Breweries Group . The airline started commercial operations on 9 May 2005, right after Mallya's son Sidhartha's 18th birthday, reportedly as a birthday gift, with a fleet of four new Airbus A320-200s operating a flight from Mumbai to Delhi . It started its international operations on 3 September 2008 by connecting Bengaluru with London . Kingfisher's head office
1330-462: Was for the government to reduce fuel and other taxes. The government was engaged in assessing whether to bail out the company and other airlines or let market forces determine which survived. In December 2011, for the second time in two months, Kingfisher's bank accounts were frozen by the Mumbai Income Tax department for non-payment of dues. The firm owed ₹ 700 million (US$ 8.4 million) to
1368-690: Was located in the Kingfisher House in Vile Parle (East) , Mumbai, but later moved to The Qube in Andheri (East), Mumbai . Its registered office was located in UB City, Bengaluru . In November 2005, during the World economic forum , the airlines CEO Vijay Mallya announced the airlines intention to launch an IPO to raise 200 million dollars for the airlines expansion and possible takeovers (including that of Air Sahara which
1406-558: Was offered. Kingfisher Lounges were offered to Kingfisher First passengers, along with King Club Silver and King Club Gold members. Lounges were located in: [REDACTED] Media related to Kingfisher Airlines at Wikimedia Commons United Breweries Group United Breweries Holdings Limited ( UBHL ), also called UB Group , is the Indian subsidiary of Heineken N.V. . It is headquartered in UB City , Bangalore , Karnataka . Its core business includes beverages and investments in various sectors. The company markets beer under
1444-860: Was similar to that of the international Kingfisher First class. Kingfisher's IFE system was the Thales TopSeries i3000/i4000 on board the Airbus A320 family aircraft, and Thales TopSeries i5000 on board the Airbus A330 family aircraft provided by the France-based Thales Group . Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems on every seat even on domestic flights. The inflight magazines were special editions of magazines owned by Mallya's media publishing house (VJM Media) viz. Hi! Blitz for domestic flights and Hi! Living for international flights. Initially, passengers were able to watch only recorded TV programming on
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