David Byers and Rhys Blakely, Bombay
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The billionaire businessman known as "Branson of Bangalore" is defying soaring worldwide fuel costs to go head-to-head with British Airways and launch his first international airline service.
Vijay Mallya, owner of a beer, whisky, motorsports and aviation empire, told The Times that he is confident of filling his daily Kingfisher flights between London Heathrow and Bangalore, the Silicon Valley of the sub-continent, despite the crippling crisis afflicting the aviation sector.
The tycoon will draw on an estimated personal fortune of $1.2billion — amassed mainly from his ownership of United Breweries alcohol group, the world's number two spirits company — to make the project work. Among the multitude of business ventures he owns are India's only Formula One racing team, a star-studded cricket team and Whyte & Mackay, the Scottish distillery.
In a typically flamboyant gesture on the eve of the London route's launch, made during a flying visit to attend a conference by the UK-India Business Council (UKIBC), he presented the 300 guests at a black-tie dinner with free tickets on the new route.
Speaking before the dinner at Mansion House, Mallya responded to queries about the project's viability, claiming that Bangalore's growing links to Britain would mean that the route would become profitable, despite the crisis afflicting the aviation sector.
"With respect, that is a view of those who are based in England and Europe, who are listening and watching the problems of airlines over here," he said.
"The truth is that there is a huge amount of potential in flying between Bangalore and London. The links between the two cities are greater than ever, but the only operator (between the cities) is BA — nobody else flies that route.
"Our first flight is almost 80 per cent full with revenue-paying guests, and so is the flight going back on the same day. And this has been achieved in just about nine days of selling."
Despite his optimism, the Indian aviation sector's growing woes were highlighted in July when it was revealed that Air India, the state-run carrier. which also flies to the UK, was seeking a £270 million rescue finance package from the Indian Government to ride out widening losses.
The plea underscored the dramatic turnaround in sentiment surrounding the airline sector in South Asia. Just months ago in India, where passenger volumes surged 30 per cent last year, the talk was of airlines that could not recruit enough pilots to meet demand.
Kingfisher Airlines has not been immune to the slump. Last week it was forced to defer the delivery of 32 of 48 Airbus A320s, medium-sized jets mainly used for domestic flights, that had been due for delivery in 2008-2009
Mallya is expected to launch a second Heathrow service, from Bombay, next month. There are also plans for Kingfisher to fly between Bangalore, his home town, and San Francisco.
By spreading his wings internationally he is pitting his airline against rivals including Sir Richard Branson's Virgin, Emirates, Lufthansa and Singapore Airlines.
However, despite lining himself up in competition against the man with whom he is so often compared, Mallya says he is close friends with Branson and models much of the way he runs his businesses on the British tycoon.
"There is a similarity between my business and the way Richard does things for his Virgin brand," he said. "He is the greatest ambassador for his brand. His brand is not just an airline, but it is much more than just an airline.
"It is the same for Kingfisher — I have been the biggest brand ambassador for my brand, I am passionate about it. And Kingfisher is much more than a beer or an airline, so the similarities that are often described between Richard and myself are because we are both passionate about our brands, and we are both ambassadors of our own brands."
Mallya's new route has won the backing of the UKIBC, a government-sponsored body setting up trade and links between India and the UK.
"The London-Bangalore route is particularly important as it will not only help the large British expat community in Bangalore but will also will help the UK businesses that have a large base in the Indian city", Sharon Bamford, chief executive of the UKIBC, said.
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