Kingfisher crisis continues with no accord on salary payment

Ashwini Phadnis Updated - March 12, 2018 at 02:14 PM.

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Kingfisher Airlines’ troubles continued as the difference over the payment of back salaries persisted. A meeting among the Airline’s officials, its staff and the UB Group on Monday failed to break the impasse.

At the meeting in Mumbai, the majority of the employees apparently rejected the management’s offer to pay one month’s salary in the next 24 hours, another month’s salary in seven days and a third month’s pay before Diwali.

Now, the management is to send out a communication to employees, seeking their views on whether they should be paid salaries for the past three or four months. The airline’s employees have not been paid for the last seven months.

“It is a fair offer. It should be acceptable to most,” the airline’s Chief Executive Officer, Sanjay Aggarwal, told the media.

While Subhash Gupte, Vice-Chairman, and Sammy Lalla, Joint President, Spirit Division, represented the UB Group, Sanjay and four senior airline officials attended the talks.

According to sources, it will take at least a month for the airline to take to the skies again as the management will have to speak to the aircraft leasing companies and also get clearance from the Directorate-General of Civil Aviation (DGCA).

The temporary grounding of Kingfisher has come as a bonanza for the other players. The international routes on which Kingfisher Airlines operated are to be distributed among other airlines by the end of this week. This will allow Jet Airways, Air India, SpiceJet and IndiGo to fly more international flights.

Kingfisher was operating to London, Singapore, Dubai, Hong Kong and Bangkok till the end of March when it stopped all international operations.

Officials claim that such a move will allow the other airlines to start flying on these routes in the next two-three months as they will still need to seek permission from the countries to which they plan to operate, a procedure that takes some time.

“The decision on Kingfisher’s domestic routes will be taken by the DGCA. The Ministry will decide on international flights,” a senior Government official said.

>ashwini.phadnis@thehindu.co.in

Published on October 22, 2012 10:41