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Kingfisher Airlines to meet employees

Posted on Oct 15, 10:07AM | IBNS

In an attempt to solve the ongoing dispute over non-payment of salaries, cash strapped private carrier Kingfisher Airlines will hold a meeting with representatives of its employees in Mumbai on Monday.

Chief Executive Officer (CEO) of Kingfisher Airlines Sanjay Agarwal wrote to employees and called them for the meeting, media reports said.

Kingfisher Airlines on Friday extended its partial lock-out till Oct 20.

"Kingfisher Airlines Ltd. regrets to announce that the partial lockout declared on October 1st, 2012 as a result of employee related issues is being extended until October 20th, 2012," said Prakash Mirpuri, Vice President - Corporate Communications, Kingfisher Airlines Limited in a statement.

"The company is continuing to work with and appeal to the employees striking work to return to work so that the airline can share it's resumption plan with DGCA and gain their concurrence," he said.

"At this time, the airline is hopeful of resuming operations starting October 21st, 2012," said Mirpuri.

Pertinently, aviation watchdog Directorate General of Civil Aviation (DGCA) earlier issued a showcause notice to Kingfisher Airlines, threatening to cancel the licence of the firm if it failed to clean up its act.

The government said the DGCA has issued a show cause notice to the Kingfisher Airlines, to be replied within 15 days, that why its permit should not be cancelled or suspended under the provisions of Section 15(2)(b) of Schedule XI of the Aircraft Rules 1937 as the Airline has failed to establish a safe, efficient and reliable service.

The operations of the private carrier are under suspension since Sept 30 due to strike by its employees.

Amid the escalating crisis, the private carrier last week extended the partial lock-out till Oct 12.

The employees of the Kingfisher Airlines have often been striking time and again over the issue of non-payment of salaries this year.

Kingfisher reported a loss of Rs. 1,151.50 crore in the March quarter.

It has a debt of over Rs. 7,500 crore and accumulated losses which is almost equal.

Kingfisher Airlines controlled by liquor baron Vijay Mallya has neither been able to pay salaries regularly since February nor has it managed to pay its dues to oil companies and airports, media reports said.