Vijay Mallya Blames 2008 Crisis, Lack of Government Support for Kingfisher Collapse; Denies Theft Allegations

London/New Delhi, June 6, 2025 — Fugitive businessman Vijay Mallya has pointed to the 2008 global financial crisis and the absence of governmental backing as key reasons behind the downfall of Kingfisher Airlines. In a recent interview with YouTuber Raj Shamani, Mallya offered a detailed defense of his actions, stating that despite early warnings about economic troubles, his appeals for help were ignored by authorities.

Mallya claimed he approached then Finance Minister Pranab Mukherjee with a plan to downsize the airline by reducing aircraft and laying off staff. He alleges Mukherjee rejected the proposal and assured him of bank support, which ultimately did not come through. “I can’t afford to operate under these depressed economic circumstances,” Mallya recalled saying at the time. “He [Mukherjee] said, ‘No, don’t do that. The banks will support you.’ But the support never came.”

Kingfisher Airlines, launched in 2005, quickly gained attention for its luxury services but ran into financial trouble during the post-2008 economic downturn. Mallya emphasized that the global crisis and a weakened rupee caused severe liquidity issues, making it unsustainable to continue operations without state assistance.

In a rare note of contrition, Mallya apologized to former employees and stakeholders, acknowledging the hardship caused by the airline’s collapse. He also pushed back against public perception surrounding his legal troubles, stating: “Call me a fugitive, not a thief.” Mallya reiterated that he has not stolen any money and criticized the narrative branding him as a “chor” (thief).

The 68-year-old also took aim at India’s regulatory and political climate, arguing that the “ease of doing business” is largely a myth. According to him, business success in India is often dependent on navigating entrenched political and bureaucratic obstacles, irrespective of which party is in power. “You need to keep everyone happy in multiple state governments. Otherwise, you get stuck,” he remarked.

Mallya, who fled India in 2016, currently resides in the UK and is contesting extradition requests by Indian authorities. He faces charges of financial fraud and money laundering linked to the collapse of Kingfisher Airlines and unpaid loans to public-sector banks. While indicating a willingness to return to India, Mallya underscored that he seeks a fair trial and humane treatment concerns previously flagged by UK courts in similar extradition matters.