it sounds like it’s one step short of a Ponzi scheme
if you look at many big transactions they have more often than not been pretty close to that in the past decade or so, what @nik describes is really quite normal in bussiness. That is the reason why the financial crisis takes many things this far off course, as a lot goes “suddenly” rotten when the already sold increse in revenues fails to come.
Whats interesting/fascinating for me in that article is this part
Subodh Agrawal, the London-based merchant banker who finances Indian takeovers, said while the ‘King of Good Times’ may be flagging right now, he believes Kingfisher’s cancellations are part of a cunning strategy to reconfigure his airliners and complete his withdrawal from the loss-making low-cost flight sector.
“India is going to suffer, but it isn’t a story which has gone bad. In the long run the growth potential is huge. It is a smart move by Mallya to get out of low cost airlines,” he said.
Shows you how it really pays off to have BIG problems so your creditors or a government can’t really afford to write off what they lent.