Kingfisher Airlines News

Closed Indian airlines: India’s aviation industry has witnessed the rise and fall of several airlines over the years. Many of these carriers once played an important role in connecting big cities as well as remote towns, offering both budget-friendly and premium travel options to passengers. They introduced new services, expanded routes, and created job opportunities across the sector. However, running an airline is expensive and highly competitive. Rising fuel prices, mounting debts, operational costs, legal disputes, and tough market competition made survival difficult for many of these airlines. Some were taken over or merged with other companies, while others completely shut down operations. Here is a list of seven airlines that disappeared forever: 

According to the Finance Ministry, Mallya -- former promoter of Kingfisher Airlines -- is among 15 individuals declared Fugitive Economic Offenders as of October 31, 2025, allegedly causing losses of thousands of crores of rupees to Indian banks.

The funds stem from an order dated December 12, 2025, by the Recovery Officer of Debts Recovery Tribunal-I (DRT), Chennai, directing the release of proceeds from sold attached shares - previously restituted to State Bank of India (SBI) by the ED. 

Vijay Mallya's tweet led to a barrage of comments on social media, with several users posting memes and other sarcastic comments on the formers fugitive status.  

As per the chargesheet, former IDBI Bank general manager Buddhadev Dasgupta abused his position, conspired with colleagues and Mallya in the matter of sanction and disbursement of short term loan (STL) of Rs 150 crore to Kingfisher Airlines in October 2009.

Mallya, living in the United Kingdom since March 2016, is currently out on bail on an extradition warrant executed by Scotland Yard in 2017. He is accused in a bank loan default matter of over Rs 9,000 crore involving his defunct Kingfisher Airlines.

The UK court order comes as a massive boost for the consortium of banks led by the State Bank of India (SBI) to initiate freezing of assets owned by Mallya`s Kingfisher Airlines, both in India and abroad, to repay its debt.

Consortium of banks led by the SBI told SC. Total dues of UBHL are around Rs 7,000 crore. UBHL had told SC that it offered Rs 14,000 crore to various banks.

It may be noted that May 14, the High Court of Justice, London, UK rejected the application of Indian fugitive and former liquor baron Vijay Mallya against his extradition to face trial in India.

Mallya, congratulating the government for announcing over the Rs 20 lakh crore Atmanirbhar Bharat package, said that his repeated offers to repay his dues have been ignored.

IDBI Bank NPA Management Group in Mumbai issued a public notice about wilful defaulter with the now defunct Kingfisher Airlines as the borrower and Vijay Mallya as the director and guarantor.

In January this year, Mallya, had become the first businessman to be declared an FEO under the provisions of the new Fugitive Economic Offenders Act which came into existence in August 2018.

A consortium of banks led by the State Bank of India had in 2016 filed a petition in the Supreme Court against Mallya for his failure to repay the loan amount of more than Rs 8000 crore to various banks.

Vijay Mallya is wanted in India on alleged fraud and money laundering charges amounting to an estimated Rs 9,000 crores.

Vijay Mallya has made the application in the Administrative Court division of the High Court.

The pressure is well and truly on but Vijay Mallya's return to India may still be several months away.

The UK Home Office said Tuesday it has received the Westminster Magistrates' Court verdict for Mallya's extradition to India.

Despite the most-recent order for his extradition, bringing Vijay Mallya back to India may be some time away.

Finance minister Arun Jaitley on Monday hailed a UK court's order for the extradition of absconding liquor baron Vijay Mallya to India.

If extradited, Vijay Mallya will be lodged in one of the high-security barracks located in a two-storey building inside the prison complex

Mallya has contested his extradition on the grounds that the case against him is "politically motivated" and the loans he has been accused of defrauding on were sought to keep his now-defunct airline afloat.