Two flight paths diverged…

They are contrasting personalities to say the least. And this was all the more apparent over the past few weeks. Promoter of Kingfisher Airlines Vijay Mallya has just got temporary relief from embarrassment by securing a stay from the Calcutta High Court on the United Bank of India’s decision to declare the airline and its directors as wilful defaulters for not repaying dues amounting to ₹7,000 crore (the next date of hearing is November 10). Jet Airways owner Naresh Goyal, on the other hand, has been in the news for all the right reasons.

Goyal recently announced that Jet Airways would not only bring its low-cost airline Jet Konnect under the Jet brand, but also restructure to be back in the black by 2017. And James Hogan, President and CEO of Etihad Airways, which has a 24 per cent stake in Jet, is confident that Jet’s India operations will soon pose a formidable threat to other low-cost carriers.

The contrast between the two Indian honchos goes back to the very genesis of their respective airlines. Mallya launched Kingfisher Airlines in 2007 as a birthday gift when his son and UB Group heir Sidhartha turned 20. He saw the move as an extension of his hugely successful run in the liquor business.

In hindsight, many accuse Mallya of needless haste, first in setting up the airline, and again in buying out the loss-making low-cost carrier Air Deccan.

When Goyal set up Jet Airways in May 1993, it was at the end of long years of struggle as a general sales agent for a number of airlines, starting with Lebanese International Airlines way back in 1967. Far from Mallya’s trademark flamboyant style, Goyal preferred to remain in the background, dealing instead with the nuts and bolts of the airline business.

On the other hand, you had Mallya jet-setting on his private plane from one city to another, giving half-hour TV interviews interspersed with sumptuous lunches, as he attempted to propel his baby airline into the big league. He moved around with a security posse drawn from the elite group that protects VVIPs, such as the prime minister.

From the start, the low-key Goyal steered clear of the media and instead focused on rubbing shoulders with the who’s who of the global aviation business. He has, in fact, not missed a single annual meeting of International Air Transport Association (IATA) since the late ’70s. Thanks to years of painstaking networking, he is now on first-name basis with chairmen of most global airlines. He once spent hours with a visiting global airline head, ferreting out information on various aircraft, just ahead of acquiring the smaller 80-seaters to connect Tier II and III cities.

Mallya’s style was to summon global aircraft makers to his home for a meeting before deciding on a purchase. The representative of one manufacturer flew in from across the globe, only to be kept waiting for close to 14 hours before meeting him.

Despite launching in different decades, for some time both the airline owners seemed to be moving in the same direction. Jet came up at a time when the winds of liberalisation were sweeping through India. The government had opened up the skies to private airlines and many wanted to partake of this high profile, and what they also thought was a potentially profitable business.

Kingfisher took off at a time when liberalisation was already here to stay and the domestic airline sector had grown confident of taking on even international routes.

From a single-configuration airline, Kingfisher quickly converted into twin class — Kingfisher First and economy. This set Indian aviation on fire with the offering of live television, takeaway amenity pouches for all flyers and, delectable of all, hot meals on flights.

First Class was pampered with valet service, sleeperette seats that reclined 125 degrees, adjustable headrests and fully extendable footrests. The latest audio and video feeds were available on demand. The brand soon notched up a snob value, with many passengers insisting on a ‘KF’ experience.

Back in the Nineties, Jet Airways had similarly raised expectations to a whole new level. The brand new aircraft, three-course in-flight meals served by smiling and smartly attired young airhostesses and multiple flights to destinations had forever changed domestic travel for the Indian flyer.

People who worked at the airline during these initial years remember Goyal as a stickler for the tiniest details. Many also point to the shrewd businessman in him. When the airline launched operations, Kuwait Airways and Gulf Air had a stake in it. This was a time when few cities landed international flights. So, many of the passengers flying to Mumbai from the Gulf on Kuwait Airways or Gulf Air would automatically board a Jet Airways flight to their final destinations within the country, assuring steady business for the newly launched airline.

More success came Goyal’s way when Jet aircraft were chartered on two instances, first for the visiting Japanese PM and again for the media team accompanying the then US President Bill Clinton to visit the Taj Mahal at Agra. Delhi was agog with rumours that just ahead of Clinton’s India visit, Goyal had organised several luncheon meetings with the US Ambassador at the time.

Goyal often voiced his dream of making Jet as good as Singapore Airlines, and soon he was well on his way to doing just that.

A number of things worked to his advantage. First off, he hired Saroj Datta, an Air India veteran of 24 years with stints in other airlines too. And PK Sinha, another old Air India hand, was roped in to head Jet Airways’ international operations.

Mallya too had professionals, including ace Indian Airlines pilot Captain Ron Nayar and former SpiceJet CEO Sanjay Aggarwal, in his team, but Kingfisher employees point out that all decisions had to be cleared by him, unlike Goyal, who normally allowed his team leaders to take their own decisions and stepped in only if required.

The differences in their working styles proved decisive when the tough times arrived. The looming threat of a conflict in West Asia saw global oil prices shoot up. And with States levying sales tax ranging from 4 per cent to over 30 per cent, operating costs proved backbreaking for the airline business in India.

Even as his airline reported losses, Mallya went ahead and acquired Air Deccan from under a mountain of debt. Many see this as the beginning of the end for Mallya.

Goyal, on the other hand, was biding his time. He worked to get the Indian government to allow foreign airlines to buy stake in Indian carriers. Jet staffers say Goyal was always convinced that this policy change was crucial to the industry’s survival, as Indian banks baulked from lending to the severely loss-making domestic airlines.

And when the government did change the policy in September 2012, after a gap of 16 years, Jet Airways sold a minority stake to the Abu Dhabi-based Etihad for over ₹2,000 crore. The airline has since been going from strength to strength, despite running losses and huge debts (₹9,800 crore at end-June this year). Kingfisher Airlines, on the other hand, has its wings broken and buried under a debt of ₹9,000 crore, which includes ₹6,500 crore owed to a consortium of banks and about ₹1,500 crore of unsecured loans and pending salaries, paying dearly for the ‘good times’.

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